Agency Information Collection Activities: Submission for OMB Review; Joint Comment Request, 2444-2467 [2017-00085]

Download as PDF 2444 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Estimated Total Annual Burden Hours: 81,530. Requests for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for Office of Management and Budget approval. All comments will become a matter of public record and may be published on the Fund Web site at https://www.cdfifund.gov. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services required to provide information. Authority: 26 U.S.C. 45D; 26 CFR 1. 45D– 1. Mary Ann Donovan, Director, Community Development Financial Institutions Fund. [FR Doc. 2017–00141 Filed 1–6–17; 8:45 am] BILLING CODE 4810–70–P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION Agency Information Collection Activities: Submission for OMB Review; Joint Comment Request Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Joint notice and request for comment. AGENCY: In accordance with the requirements of the Paperwork Reduction Act (PRA) of 1995, the OCC, the Board, and the FDIC (the ‘‘agencies’’) may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. On August 15, sradovich on DSK3GMQ082PROD with NOTICES SUMMARY: VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 2016, the agencies, under the auspices of the Federal Financial Institutions Examination Council (FFIEC), requested public comment for 60 days on a proposal for a new Consolidated Reports of Condition and Income for Eligible Small Institutions (FFIEC 051). The proposed FFIEC 051 is a streamlined version of the existing Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only (FFIEC 041), which was created by (1) removing certain existing schedules and data items and replacing them with a limited number of data items in a new supplemental schedule, (2) eliminating certain other existing data items, and (3) reducing the reporting frequency of certain data items. The FFIEC 051 generally would be available to institutions with domestic offices only and assets of less than $1 billion, which currently file the FFIEC 041. Of the nearly 6,000 insured depository institutions, approximately 5,200 would be eligible to file the proposed FFIEC 051. When compared to the existing FFIEC 041, the proposed FFIEC 051 shows a reduction in the number of pages from 85 to 61. This decrease is the result of the removal of approximately 950 or about 40 percent of the nearly 2,400 data items in the FFIEC 041. Of the data items remaining from the FFIEC 041, the agencies have reduced the reporting frequency for approximately 100 data items in the proposed FFIEC 051. In addition, the FFIEC and the agencies requested public comment on proposed revisions to the FFIEC 041 and the Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices (FFIEC 031), which are currently approved collections of information. The Consolidated Reports of Condition and Income are commonly referred to as the Call Report. The comment period for the August 2016 notice ended on October 14, 2016. As described in the SUPPLEMENTARY INFORMATION section, after considering the comments received on the proposals, the FFIEC and the agencies will proceed with the implementation of the proposed FFIEC 051, along with the proposed reporting revisions to the FFIEC 041 and FFIEC 031, with some modifications to the proposals for all three versions of the Call Report. With OMB approval, the proposed FFIEC 051 and the proposed reporting changes to the existing FFIEC 031 and FFIEC 041 would become effective as of March 31, 2017. The agencies also are giving notice that they have sent the collection to OMB for review. PO 00000 Frm 00136 Fmt 4703 Sfmt 4703 Comments must be submitted on or before February 8, 2017. ADDRESSES: Interested parties are invited to submit written comments to any or all of the agencies. All comments, which should refer to the OMB control number(s), will be shared among the agencies. OCC: Because paper mail in the Washington, DC, area and at the OCC is subject to delay, commenters are encouraged to submit comments by email, if possible, to prainfo@ occ.treas.gov. Comments may be sent to: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, Attention: ‘‘1557–0081, FFIEC 031, 041, and 051,’’ 400 7th Street SW., Suite 3E–218, Mail Stop 9W–11, Washington, DC 20219. In addition, comments may be sent by fax to (571) 465–4326. You may personally inspect and photocopy comments at the OCC, 400 7th Street SW., Washington, DC 20219. For security reasons, the OCC requires that visitors make an appointment to inspect comments. You may do so by calling (202) 649–6700 or, for persons who are deaf or hard of hearing, TTY, (202) 649–5597. Upon arrival, visitors will be required to present valid government-issued photo identification and submit to security screening in order to inspect and photocopy comments. All comments received, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not include any information in your comment or supporting materials that you consider confidential or inappropriate for public disclosure. Board: You may submit comments, which should refer to ‘‘FFIEC 031, FFIEC 041, and FFIEC 051,’’ by any of the following methods: • Agency Web site: https:// www.federalreserve.gov. Follow the instructions for submitting comments at: https://www.federalreserve.gov/general info/foia/ProposedRegs.cfm. • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments. • Email: regs.comments@ federalreserve.gov. Include the reporting form numbers in the subject line of the message. • Fax: (202) 452–3819 or (202) 452– 3102. • Mail: Robert DeV. Frierson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue NW., Washington, DC 20551. All public comments are available from the Board’s Web site at DATES: E:\FR\FM\09JAN1.SGM 09JAN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, unless modified for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper in Room MP–500 of the Board’s Martin Building (20th and C Streets NW.) between 9:00 a.m. and 5:00 p.m. on weekdays. FDIC: You may submit comments, which should refer to ‘‘FFIEC 031, FFIEC 041, and FFIEC 051,’’ by any of the following methods: • Agency Web site: https:// www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC’s Web site. • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions for submitting comments. • Email: comments@FDIC.gov. Include ‘‘FFIEC 031, FFIEC 041, and FFIEC 051’’ in the subject line of the message. • Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB–3007, Federal Deposit Insurance Corporation, 550 17th Street NW., Washington, DC 20429. • Hand Delivery: Comments may be hand delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7:00 a.m. and 5:00 p.m. Public Inspection: All comments received will be posted without change to https://www.fdic.gov/regulations/ laws/federal/ including any personal information provided. Paper copies of public comments may be requested from the FDIC Public Information Center by telephone at (877) 275–3342 or (703) 562–2200. Additionally, commenters may send a copy of their comments to the OMB desk officer for the agencies by mail to the Office of Information and Regulatory Affairs, U.S. Office of Management and Budget, New Executive Office Building, Room 10235, 725 17th Street NW., Washington, DC 20503; by fax to (202) 395–6974; or by email to oira_ submission@omb.eop.gov. FOR FURTHER INFORMATION CONTACT: For further information about the proposed revisions to the Call Report described in this notice, please contact any of the agency staff whose names follow. In addition, copies of the FFIEC 031 and FFIEC 041 Call Report forms and the proposed FFIEC 051 report form can be obtained at the FFIEC’s Web site (https://www.ffiec.gov/ffiec_report_ forms.htm). OCC: Kevin Korzeniewski, Counsel, (202) 649–5490 or, for persons who are VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 deaf or hard of hearing, TTY, (202) 649– 5597, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Washington, DC 20219. Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer, (202) 452–3884, Office of the Chief Data Officer, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may call (202) 263–4869. FDIC: Manuel E. Cabeza, Counsel, (202) 898–3767, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street NW., Room MB–3007, Washington, DC 20429. SUPPLEMENTARY INFORMATION: The agencies are proposing to create a new Call Report for eligible small institutions, the foundation for which is a currently approved collection of information for each agency. In addition, the agencies are proposing revisions to data items reported on the FFIEC 041 and FFIEC 031 Call Reports. Report Title: Consolidated Reports of Condition and Income (Call Report). Form Numbers: FFIEC 051 (proposed for eligible small institutions), FFIEC 041 (for banks and savings associations with domestic offices only), and FFIEC 031 (for banks and savings associations with domestic and foreign offices). Frequency of Response: Quarterly. Affected Public: Business or other forprofit. Type of Review: Revision and extension of currently approved collections. OCC OMB Control No.: 1557–0081. Estimated Number of Respondents: 1,383 national banks and federal savings associations. Estimated Average Burden per Response: 50.03 burden hours per quarter to file. Estimated Total Annual Burden: 276,766 burden hours to file. Board OMB Control No.: 7100–0036. Estimated Number of Respondents: 825 state member banks. Estimated Average Burden per Response: 54.00 burden hours per quarter to file. Estimated Total Annual Burden: 178,200 burden hours to file. FDIC OMB Control No.: 3064–0052. Estimated Number of Respondents: 3,824 insured state nonmember banks and state savings associations. PO 00000 Frm 00137 Fmt 4703 Sfmt 4703 2445 Estimated Average Burden per Response: 48.08 burden hours per quarter to file. Estimated Total Annual Burden: 735,432 burden hours to file. The estimated average burden hours collectively reflect the estimates for the FFIEC 031, the FFIEC 041, and the proposed FFIEC 051 reports. When the estimates are calculated by type of report across the agencies, the estimated average burden hours per quarter are 128.05 (FFIEC 031), 74.88 (FFIEC 041) and 44.94 (FFIEC 051). Furthermore, the estimated burden per response for the quarterly filings of the Call Report is an average that varies by agency because of differences in the composition of the institutions under each agency’s supervision (e.g., size distribution of institutions, types of activities in which they are engaged, and existence of foreign offices). The agencies received ten comments on the burden estimates. One commenter recommended including time to review instructions for the applicable form, even if data items in that form are not applicable to the institution. The agencies also received comments from institutions with estimates of the time it takes their institutions to prepare the current FFIEC 041 Call Report. The majority of these estimates ranged from 40–80 hours per quarter, with one response of 268 hours per quarter. Three commenters stated that preparing the Call Report costs approximately $1,000 annually for software. In response to the comments on methodology, the agencies have revised their calculation for their burden estimates. In addition to the estimated time for gathering and maintaining data in the required form and completing those Call Report data items for which an institution has a reportable (nonzero) amount, which have been included in the agencies’ burden estimates, the revised methodology incorporates time for reviewing instructions for all items, even if the institution determines it does not have a reportable amount. The agencies have also added estimated burden hours for verifying the accuracy of amounts reported in the Call Report. As stated earlier, the agencies are also separating the estimated burden by type of report, to highlight the estimated burden reduction between the FFIEC 041 and FFIEC 051 reports. While the agencies’ burden estimates are on the lower end of the ranges provided by commenters, these estimates are based on average times to complete each data item factoring in the varying levels of automation versus manual interventions E:\FR\FM\09JAN1.SGM 09JAN1 2446 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES that exist across institutions for every data item. One commenter estimated that the incremental burden associated with the one-time conversion from the FFIEC 041 to the FFIEC 051 would be approximately 160 hours, primarily for training, and approximately $350 for software. Due to the various factors that could affect the time and cost of switching to the FFIEC 051, including training needs, the type of existing systems and automation at an institution, and any cost from software vendors to enable an institution to file the new form, the agencies have not provided an estimate of this conversion burden. The agencies reiterate that adopting the FFIEC 051 form is optional, and each institution should weigh the estimated time savings from using that form with the one-time burden to switch to the FFIEC 051 from the FFIEC 041. General Description of Reports Institutions submit Call Report data to the agencies each quarter for the agencies’ use in monitoring the condition, performance, and risk profile of individual institutions and the industry as a whole. Call Report data serve a regulatory or public policy purpose by assisting the agencies in fulfilling their missions of ensuring the safety and soundness of financial institutions and the financial system and protecting consumer financial rights. The data also serve public policy purposes associated with agencyspecific missions affecting national and state-chartered institutions, e.g., monetary policy, financial stability, and deposit insurance. Call Reports are the source of the most current statistical data available for identifying areas of focus for on-site and off-site examinations. The agencies use Call Report data in evaluating institutions’ corporate applications, including, in particular, interstate merger and acquisition applications for which, as required by law, the agencies must determine whether the resulting institution would control more than 10 percent of the total amount of deposits of insured depository institutions in the United States. Call Report data also are used to calculate institutions’ deposit insurance and Financing Corporation assessments and national banks’ and federal savings associations’ semiannual assessment fees. These information collections are mandatory: 12 U.S.C. 161 (for national banks), 12 U.S.C. 324 (for state member banks), 12 U.S.C. 1817 (for insured state nonmember commercial and savings banks), and 12 U.S.C. 1464 (for federal VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 and state savings associations). At present, except for selected data items and text, these information collections are not given confidential treatment. Current Actions I. Introduction On August 15, 2016, the agencies requested comment for 60 days on a proposal for a new Consolidated Reports of Condition and Income for Eligible Small Institutions (FFIEC 051) along with various proposed revisions to the existing Call Report requirements (FFIEC 031 and FFIEC 041).1 The FFIEC 051 was created by removing items or reducing the frequency of items reported in the FFIEC 041, as detailed in Appendix B. The FFIEC 051 and the revisions to the FFIEC 031 and FFIEC 041 are the result of a formal initiative launched by the FFIEC in December 2014 to identify potential opportunities to reduce burden associated with Call Report requirements for community institutions. The most significant actions under this initiative are community institution outreach efforts, internal surveys of users of Call Report data at FFIEC member entities, and the proposal for a streamlined Call Report for small institutions. Additional information about the initiative can be found in the August 2016 notice, along with two other notices related to actions taken under that initiative.2 The comment period for the August 2016 notice ended on October 14, 2016. General comments on the notice are summarized in Section II. In Section III, the agencies provide more details on the comments received on the FFIEC 051 and any changes the agencies are making in response to those comments. In Section IV, the agencies address comments on the proposed changes to the FFIEC 031 and FFIEC 041 Call Reports. In Section V, the agencies provide information about additional specific suggestions received from commenters to improve all versions of the Call Report and any changes the agencies are making in response to those comments. With OMB approval, the effective date for the initial implementation of the FFIEC 051 and the revisions to the existing FFIEC 041 and FFIEC 031 would be March 31, 2017. II. General Comments on the Proposal The agencies collectively received comments on the proposal from approximately 1,100 entities, including individuals, banking organizations, 81 FR 54190 (August 15, 2016). 80 FR 56539 (September 18, 2015) and 81 FR 45357 (July 13, 2016). bankers’ associations, and a government entity.3 General comments on the proposed FFIEC 051 and existing FFIEC 031 and FFIEC 041 Call Reports are included in this section. The agencies provide information regarding comments on specific aspects of the proposed FFIEC 051 and the proposed revisions to the existing Call Reports in more detail in Sections III and IV, respectively. Additional specific suggestions provided by commenters on the existing Call Reports and the proposed FFIEC 051 are included in Section V. A. General Comments on the Proposed FFIEC 051 Commenters expressed mixed opinions on the proposed FFIEC 051. Approximately 25 commenters representing banking organizations, bankers’ associations, and a government entity supported the effort put forth by the agencies. One bankers’ association stated that the initial proposal was ‘‘a positive step in an ongoing, iterative process’’ that shows a ‘‘modest but material burden relief to institutions eligible to file the [FFIEC 051] report.’’ One institution stated that the proposed FFIEC 051 would assist small banks by reducing preparation time and minimizing confusion by removing schedules related to activities in which the bank does not engage. Another commenter stated that this proposal was a good start by removing items that have no relationship with the reporting institution. Another commenter agreed with the proposal to shorten the length of the Call Report and the instructions, which would reduce the time spent reviewing updates to determine items that may or may not be applicable to the bank. One commenter stated the reduction and the removal of nonrelevant data items for noncomplex institutions saves both time and money. The government entity stated it uses certain data items in the Call Report in preparing national economic reports, and encouraged the agencies to continue collecting those items. On the other hand, the majority of commenters from banking organizations and bankers’ associations responded that there was no perceived impact by adopting the FFIEC 051. Many of the banking organizations stated that the data items proposed to be removed were not reported currently by their institutions; therefore, the changes would not impact their burden in preparing the Call Report. Three of the bankers’ associations stated that the 1 See 2 See PO 00000 Frm 00138 Fmt 4703 Sfmt 4703 3 The agencies received approximately 100 unique letters and 1,000 form letters. E:\FR\FM\09JAN1.SGM 09JAN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices agencies removed items largely not reported, and related to activities not engaged in, by community banks. Another institution responded that by making the change to the FFIEC 051, it would add burden at the conversion date with little time savings in future filings. One commenter stated that the inclusion of the supplemental schedule (Schedule SU) could actually increase burden, as banks must use the same processes or new processes to verify the data (or inapplicability) of the new supplemental items. The agencies recognize that not all community institutions eligible to file the FFIEC 051 will see an immediate and large reduction in burden by switching to that form. Some of the items that were removed from the FFIEC 041 to create the FFIEC 051 only needed to be reported by institutions with assets of $1 billion or more. Other items not included in the FFIEC 051 applied to institutions of all sizes, but may not have applied to every community institution, due to the nature of each institution’s activities. Approximately 100 data items would be collected at a reduced frequency in the FFIEC 051. For example, in creating the FFIEC 051, the agencies have removed from the FFIEC 041 the data items on Schedule RC–L, Derivatives and Off-Balance Sheet Items, in which the more than 700 eligible institutions that have derivative contracts have been required to report the gross positive and negative fair values of these contracts. The agencies also have reduced from quarterly to semiannually the reporting frequency in the FFIEC 051 of Schedule RC–C, Part II, Loans to Small Businesses and Small Farms, which is applicable to the approximately 5,200 institutions eligible to file the FFIEC 051,4 and Schedule RC–A, Cash and Balances Due from Depository Institutions, which applies to the more than 1,400 eligible institutions that have $300 million or more in total assets. Additionally, as noted earlier, the agencies are shortening the instructions associated with the FFIEC 051, so that community bankers will not need to review as many nonapplicable instructions, or the associated changes to those instructions that may occur in the future. Taken together, the agencies believe these changes are a positive step toward providing meaningful Call Report burden relief to community institutions. A majority of the commenters that did not favor the proposed FFIEC 051 suggested the agencies adopt a ‘‘shortform’’ Call Report to be filed in the first 4 See Section III for further discussion of this change in reporting frequency. VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 and third quarters. The short-form Call Report recommended by commenters would consist only of an institution’s balance sheet, income statement, and statement of changes in equity capital. The institution would file a full Call Report including all supporting schedules in the second and fourth quarters. The agencies recognize that the information requested in the Call Report is often more granular than information presented in standard financial statements, including the notes to the financial statements, and can require refining or subdividing the information contained in accounts reported in an institution’s general ledger system or core processing systems. This process may be burdensome, particularly when account balances have not materially changed from the prior quarter. However, one element that sets banking apart from other industries is the regulatory framework, particularly the provision of Federal deposit insurance and the important role of financial intermediation, which requires safety and soundness supervision and examination. A key component of bank supervision is reviewing granular financial data about an institution’s activities to identify changes in those activities and in the institution’s condition, performance, and risk profile from quarter to quarter that suggest areas for further investigation by the institution’s supervisory agency. For example, granular data on loan categories, past due and nonaccrual loans, and loan charge-offs and recoveries 5 feed into an analysis of credit risk, while data on loan, security, time deposit, and other borrowed money maturities and repricing dates 6 feed into analyses of interest rate risk and liquidity risk. Much of this analysis occurs off-site, so an institution may not be aware of the extent of this process unless it identifies anomalies or other ‘‘red flags’’ at the institution. Even then, some anomalies and other ‘‘red flags’’ may be discussed immediately with the institution, while other concerns are flagged for investigation at the next onsite examination. The earlier that anomalies, upon immediate follow-up, are found to evidence deficiencies in risk management or deterioration in an institution’s condition, the less difficult it will be for the institution to implement appropriate corrective action. In this context, with full-scope on-site examinations occurring no less 5 Reported on Schedules RI–B; RC–C, Part I; and RC–N. 6 Reported on Schedules RC–B; RC–C, Part I; RC–E; and RC–M. PO 00000 Frm 00139 Fmt 4703 Sfmt 4703 2447 than once during each 18-month period for institutions that have total assets of less than $1 billion and meet certain other criteria, quarterly data are necessary for many of the data items in the Call Report in order for an institution’s supervisory agency to have a sufficient number of data points to both identify and distinguish between one-time anomalies and developing trends at the institution. Moreover, the agencies note that extending the examination cycle to 18 months for certain qualifying institutions is discretionary, and the analysis of trends in a particular institution’s Call Report data is a significant factor in deciding whether to exercise that discretion with respect to that institution. In addition to supporting the identification of higher-risk situations, enabling timely corrective action for such cases, and justifying the extended examination cycle, the quarterly reporting of the more granular Call Report items also aids in the identification of low-risk areas prior to on-site examinations, allowing the agencies to improve the allocation of their supervisory resources and increase the efficiency of supervisory assessments, which reduces the scope of examinations in these areas, thereby reducing regulatory burden. While the quarterly monitoring process enabled by the more granular Call Report items historically has focused on raising ‘‘red flags,’’ similar emphasis has also been placed on the identification of low-risk situations. A six-month reporting cycle for the more granular Call Report items would hamper the agencies’ ability to form timely risk assessments and so could stymie efforts to improve the focus of on-site examinations for lowrisk institutions. In this manner, an effort to reduce regulatory burden by lengthening the reporting cycle for the more granular Call Report items could limit the agencies’ opportunities to reduce burden for on-site examinations. In addition to safety and soundness data, other data items are required quarterly due to various statutes or regulations. Leverage ratios based on average quarterly assets and risk-based capital ratios are necessary under the prompt corrective action framework established under 12 U.S.C. 1831o.7 Data on off-balance sheet assets and liabilities are required every quarter for which an institution submits a balance sheet to the agencies pursuant to 12 U.S.C. 1831n.8 Granular data on deposit liabilities and data affecting risk assessments for deposit insurance are 7 Reported 8 Reported E:\FR\FM\09JAN1.SGM on Schedules RC–K and RC–R. on Schedule RC–L. 09JAN1 sradovich on DSK3GMQ082PROD with NOTICES 2448 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices required four times per year under 12 U.S.C. 1817.9 Further, the public availability of most quarterly Call Report information from institutions that are not publicly held is desired by their depositors (particularly those whose deposits are not fully insured), other creditors, investors, and other institutions. An institution’s depositors and other creditors may use quarterly Call Report information to perform their own assessments of the condition of the institution. Existing and potential investors may evaluate Call Report data to assess an institution’s condition and future prospects; the absence of quarterly information could impair the institution’s ability to raise capital or could limit the liquidity of the institution’s shares for existing stockholders. Other institutions that engage in transactions with the reporting institution may utilize Call Report information to assess the condition of their counterparties to these transactions. In addition, some institutions use peer analysis to benchmark against local competitors using data obtained from their Call Reports directly, or by using third-party vendors who often leverage information from the agencies’ repository of Call Report data. For example, as part of their financial control structures, some institutions analyze their allowance for loan and lease losses (ALLL) by comparing their delinquency ratios and their ratios of ALLL to loans and leases to peer group ranges and averages. While the agencies understand the commenters’ desire for a ‘‘short-form’’ Call Report, for the reasons stated above, the agencies did not adopt this suggestion. In addition to the basic financial statements, the most streamlined quarterly report possible must also include quarterly data required by statute or regulation, along with quarterly data necessary for adequate supervision by the agencies. However, as part of the continuing burden reduction efforts, the agencies will continue to review the quarterly data collected in the proposed FFIEC 051 and existing FFIEC 031 and FFIEC 041 reports that go beyond the statutory or regulatory requirements or essential supervisory needs. For example, as described in Section III, the agencies are revising Schedule RC–C, Part II, in the FFIEC 051 to reduce its reporting frequency from quarterly to semiannual for all institutions that file the FFIEC 051. 9 Reported on Schedules RC–E and RC–O. VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 B. General Comments on the Call Report Initiatives The agencies are still engaged in the statutorily mandated review of the existing Call Report data items (Full Review).10 The agencies are conducting the Full Review as a series of nine surveys of internal users of Call Report data within the FFIEC member entities. Proposed changes resulting from the first three surveys were included in the August 2016 proposal, and a summary of the member entities’ uses of the data items retained in the Call Report schedules covered in these three surveys is included as Appendix A. The agencies are analyzing the results of four additional surveys, and still need to collect and review data from the final two surveys to determine any future proposed revisions to the FFIEC 031, FFIEC 041, and FFIEC 051. Burdenreducing reporting changes to these three versions of the Call Report from the remaining six surveys will be proposed in future Federal Register notices with an anticipated implementation date of March 31, 2018. The agencies described this staged approach to proposing changes to the FFIEC 031, FFIEC 041, and FFIEC 051 resulting from the Full Review in their August 2016 proposal, but asked whether it would be less burdensome to delay all the changes to the Call Report until the completion of the Full Review. The agencies received comments about the burden reduction initiative and the Full Review. On the timing of future revisions, one commenter stated that it would not matter, while another commenter wanted the changes implemented as soon as possible. Three commenters recommended adopting all of the changes at once. These commenters stated it is more burdensome to deal with more frequent changes to the Call Report, even if those changes would reduce burden. Six commenters sought a better understanding for the agencies’ use of the Call Report data items submitted by institutions. Two bankers’ associations requested a published report of how the data are used either by individual line item or by schedule. The agencies are cognizant of the burden caused by frequent changes to the Call Report, but also must consider the ongoing burden imposed until the completion of the review by collecting data items the agencies have agreed are no longer necessary. In an attempt to balance those concerns, the agencies 10 Section 604 of the Financial Services Regulatory Relief Act of 2006 (12 U.S.C. 1817(a)(11)) mandates that this review occur every five years. PO 00000 Frm 00140 Fmt 4703 Sfmt 4703 plan to propose changes related to the user surveys in two future notices. The agencies already included the results from the first three user surveys in the August 2016 notice. The next notice would include changes from a second set of user surveys and is expected to be issued in early 2017. The last notice would include any changes from a third and final set of user surveys and is expected to be issued in late 2017. The proposed effective date for changes in both future notices would be March 31, 2018. As described earlier in this section and in response to specific comments in Sections III and V, a significant amount of the data collected in the Call Report is used for safety and soundness purposes, especially for quarterly offsite monitoring and reviews between on-site examinations. Additional data items are required by statute or regulation. A lesser number of data items are used for consumer financial protection purposes or for specific agency missions, such as deposit insurance and monetary policy. To provide additional detail on the uses of Call Report schedules and data elements, the agencies are including, in Appendix A, a summary of the FFIEC member entities’ uses of specific schedules and data items from the first three user surveys conducted in the Full Review. The agencies plan to publish similar summaries when proposing additional changes based on the results of the second two sets of Full Review surveys in future notices. Finally, while it may not directly reduce burden at this time, as described in the August 2016 notice, the agencies will apply a set of guiding principles in evaluating potential future additions and revisions to the Call Report. Those principles are: (1) The data items serve a long-term regulatory or public policy purpose by assisting the FFIEC member entities in fulfilling their missions of ensuring the safety and soundness of financial institutions and the financial system and the protection of consumer financial rights, as well as agencyspecific missions affecting national and state-chartered institutions; (2) the data items to be collected maximize practical utility and minimize, to the extent practicable and appropriate, burden on financial institutions; and (3) equivalent data items are not readily available through other means. The agencies intend to apply these principles with rigor for items proposed to be added to the Call Reports, with the goal of minimizing future burden increases. E:\FR\FM\09JAN1.SGM 09JAN1 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES III. Specific Comments on the Proposed FFIEC 051 A. Eligibility The agencies proposed to make the FFIEC 051 available as an option to eligible small institutions. For purposes of the FFIEC 051 Call Report, the agencies proposed to define ‘‘eligible small institutions’’ as institutions with total assets less than $1 billion and domestic offices only. Total assets for eligibility would be measured as of June 30 each year to determine the institution’s eligibility to file the FFIEC 051 beginning in March of the following year. In addition, for an institution otherwise eligible to file the FFIEC 051, the institution’s primary federal regulatory agency, jointly with the state chartering authority, if applicable, may require the institution to file the FFIEC 041 instead based on supervisory needs. In making this determination, the appropriate agency will consider criteria including, but not limited to, whether the eligible institution is significantly engaged in complex, specialized, or other higher risk activities.11 The agencies anticipate making such determinations only in a limited number of cases. The agencies received numerous comments on eligibility for the FFIEC 051. Eight commenters supported expanding the threshold. One commenter suggested using the FDIC’s definition of a ‘‘community bank’’ (from the FDIC’s Community Banking Study), which is based on deposit and lending activity and certain other criteria rather than solely asset size, while another commenter suggested expanding the FFIEC 051 to all institutions that do not engage in complex activities. Another commenter suggested tying the asset threshold to the definition of ‘‘small bank’’ under the Community Reinvestment Act (currently, $1.216 billion and indexed for inflation). Two commenters recommended using a $10 billion asset threshold, with one of those commenters suggesting that the asset threshold be automatically adjusted for inflation in the future. At this time, the agencies are retaining their proposed $1 billion asset-size threshold to be eligible for the FFIEC 051. This threshold is consistent with one of the eligibility criteria established by Congress for community institutions 11 This proposed reservation of authority is consistent with the reservation of authority applicable to a holding company with consolidated total assets of less than $1 billion that would otherwise file the Board’s FR Y–9SP, Parent Company Only Financial Statements for Small Holding Companies (OMB No. 7100–0128). See page GEN–1 of the instructions for the FR Y–9SP. VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 to be eligible for an 18-month examination cycle rather than the standard 12-month cycle.12 The agencies are considering other size thresholds and other eligibility criteria, such as whether relevant criteria could be developed for determining that an institution should be considered a ‘‘community’’ institution for Call Report purposes; however, an asset-size threshold tied to an existing statutory basis was chosen to keep the initial eligibility criteria simple and transparent, and avoid delaying the proposed March 31, 2017, initial implementation date for those eligible institutions interested in beginning to file the FFIEC 051 as of that date while the agencies evaluate additional potential eligibility criteria. The agencies plan to review additional data in determining whether to propose any changes to the initial eligibility threshold in the future. The agencies are also making one revision to the eligibility criteria to disallow advanced approaches institutions 13 from being eligible to use the FFIEC 051.14 Even though such an institution may be under the $1 billion asset-size threshold, it is part of a consolidated banking organization with assets greater than $250 billion and as such the agencies do not believe such an institution shares the same risks as eligible small institutions. The agencies also asked whether filing the FFIEC 051 by eligible institutions should be mandatory or optional. Six commenters supported allowing the FFIEC 051 to be optional. The agencies agree with the commenters and will continue to offer it as an option to eligible small institutions that would otherwise need to file the FFIEC 041. If an institution is eligible for and chooses to adopt the FFIEC 051, the agencies expect the institution will continue filing that version of the report going forward as long as it remains eligible.15 12 See 12 U.S.C. 1820(d), as amended by Section 83001 of the Fixing America’s Surface Transportation Act, Public Law 114–94, 129 Stat. 1312 (2015). The $1 billion asset-size threshold for the proposed FFIEC 051 also is consistent with the incremental approach taken by Congress when increasing the threshold for the Board’s Small Bank Holding Company and Savings and Loan Holding Company Policy Statement; see Public Law 113– 250 (December 18, 2014). 13 See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) (Board); 12 CFR 324.100(b) (FDIC). 14 As a consequence, the data items in Schedule RC–R that are applicable only to advancedapproaches institutions would be removed from the FFIEC 051. 15 An institution whose assets remain below $1 billion as of June 30 of any year may choose to file the FFIEC 041 instead of the FFIEC 051 beginning with the first quarter of the following calendar year. An institution’s primary federal supervisory agency PO 00000 Frm 00141 Fmt 4703 Sfmt 4703 2449 If an institution’s assets increase to $1 billion or more as of June 30 of any calendar year, the institution must return to filing the FFIEC 041 beginning with the first quarter of the following calendar year. The agencies received three comments on the proposed reservation of authority for filing the FFIEC 051. Two commenters opposed this reservation of authority, stating that the language was too broad and would allow too much discretion to examiners to arbitrarily make institutions change their version of the Call Report. One of these commenters suggested a process where any determination by an examiner that an institution must revert to the FFIEC 041 should be automatically appealable to the agency’s Ombudsman. The other commenter recommended more clearly defining and limiting the scenarios in which the agencies would consider making an institution revert to filing the FFIEC 041. The agencies acknowledge the criteria to use the reservation of authority listed in the notice could be interpreted more broadly than the agencies intended. The agencies would consider using the reservation of authority if an institution has a large amount of activity in one or more complex activities that would be reported on one of the schedules or items proposed to be eliminated in the FFIEC 051. These schedules include Schedules RC–D (trading activity), RC– L (off-balance sheet derivatives), RC–P (mortgage banking), RC–Q (fair value measurements), RC–S (servicing, securitization, and asset sale activities), and RC–V (variable interest entities). The agencies do not intend to use this reservation of authority widely, or to apply it to institutions that engage only in activities that are fully reported on the FFIEC 051. Furthermore, the exercise of the reservation of authority would require a decision by a member of the appropriate agency’s senior management and would not be at the discretion of examination staff. B. Implementation Date The agencies proposed implementing the FFIEC 051 beginning March 31, 2017, for all eligible small institutions. Nine commenters indicated the lead time was sufficient because most of the changes between the FFIEC 041 and FFIEC 051 did not affect their institutions. Three commenters suggested delaying the implementation date. One commenter suggested setting may approve an institution’s request to change to the FFIEC 041 in a later quarter of a calendar year on a case-by-case basis. E:\FR\FM\09JAN1.SGM 09JAN1 2450 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES the date at least six months from the start of the quarter in which the final changes are published. Another commenter stated a minimum of one quarter is needed after the final FFIEC 051 is approved. One institution suggested a June 30, 2017, implementation date. The agencies believe that it is important to offer this new report form as an option as early as feasibly possible, to reduce burden for those eligible institutions that are able to switch to the FFIEC 051 beginning with the March 31, 2017, report date. The conversion to the FFIEC 051 is optional, and initial eligibility would be determined by an institution’s asset size as of June 30, 2016. For an institution that qualifies to use the FFIEC 051 and desires to use that form, but is unable to do so for the March 31, 2017, report date, the institution may begin reporting on the FFIEC 051 as of the June 30, 2017, report date or in a subsequent quarter of 2017. Alternatively, the institution could wait until March 31, 2018, to begin reporting on the FFIEC 051, assuming it continues to meet the eligibility criteria. C. Comments on Schedule RC–R, Regulatory Capital The agencies received approximately 30 comment letters that highlighted the burden required to prepare Schedule RC–R, Regulatory Capital. The agencies received similar comments during their banker outreach efforts, as well as in comment letters submitted under a review of agency regulations required by the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA).16 An institution must calculate its capital ratios quarterly pursuant to the prompt corrective action provisions of statute and the agencies’ regulations. The agencies revised Schedule RC–R in March 2015 to include the data items that would be necessary for an institution to calculate its regulatory capital ratios under the agencies’ revised capital rules. The greater detail of those rules requires a degree of categorization, recordkeeping, and reporting that is greater than under the previously applicable capital rules. While many of the data fields on Schedule RC–R may not be applicable to community institutions not engaged in complex activities, some community institutions do engage in activities that would need to be reported in those fields to perform the correct calculation under the capital rules. The agencies are developing responses to the concerns 16 Public Law 104–208 (1996), codified at 12 U.S.C. 3311. VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 about the burden of the regulatory capital rules raised during the EGRPRA comment process and the associated reporting requirements on Schedule RC–R. If the agencies propose modifications to the regulatory capital rules, the agencies would also propose modifications to the associated reporting requirements on Schedule RC–R. D. Comments on Schedule RC–C, Loans and Lease Financing Receivables Twelve commenters emphasized Schedule RC–C as a significant contributor to the reporting burden for smaller institutions. Five banking organizations specifically highlighted Schedule RC–C, Part II, Loans to Small Businesses and Small Farms, as particularly burdensome and suggested eliminating the schedule or reducing the frequency of the data collected. During the agencies’ banker outreach efforts, community institutions similarly highlighted the burden of Schedule RC– C, and particularly Part II of the schedule. In developing the proposed FFIEC 051, the agencies removed 38 items from Schedule RC–C, Part I, that are currently reported in the FFIEC 041 and were identified as having lesser utility for institutions eligible to file the new report. The remaining loan and lease data in Schedule RC–C, Part I, are critical inputs to assessing the safety and soundness of individual institutions through analysis of the institutions’ credit risk, interest rate risk, and liquidity risk, including the identification and analysis of lending concentrations. The granularity of the loan categories is also essential for peer group analysis and industry analysis. Loan and lease information is also an important component of agency statistical models that assess the risk profile of an institution. In addition, many community institutions use the Call Report loan categories when they measure the estimated credit losses that have been incurred on groups of loans with similar risk characteristics in their calculations of the ALLL each quarter under U.S. generally accepted accounting principles (GAAP). Finally, loan and lease information assists the agencies in fulfilling their specific missions. The Board, as part of its monetary policy mission, relies on the loan data in Schedule RC–C, Part I, to provide information on credit availability and lending conditions not available elsewhere. Loan and lease detail at all sizes of institutions is necessary for monitoring the overall health of the economy. Reducing loan PO 00000 Frm 00142 Fmt 4703 Sfmt 4703 detail or data frequency for smaller institutions would limit the ability to monitor credit availability and lending conditions widely, including in response to any changes in monetary policy. At times, loan availability and lending conditions may be different at smaller institutions than at larger institutions. Furthermore, Schedule RC– C, Part I, data are used to benchmark weekly loan data collected by the Board from a sample of both small and large institutions; the weekly data are used to estimate weekly loan aggregates for the banking sector as a whole to provide more timely input for the purposes of monitoring the macroeconomy. The FDIC’s deposit insurance assessment system for ‘‘established small banks’’ relies on information reported by individual institutions for the Schedule RC–C, Part I, standardized loan categories in the determination of the loan mix index in the financial ratios method, which is used to determine assessment rates for such institutions.17 The data collected in Schedule RC–C, Part II, is based on a statutory requirement to collect data on small business and small farm loans on an annual basis and began in 1993.18 In 2010, the FFIEC changed the reporting frequency for Schedule RC–C, Part II, from annual to quarterly. At that time, the agencies approved the more frequent collection of these data to improve the Board’s ability to monitor credit conditions facing small businesses and small farms and contribute to its ability to develop policies intended to address any problems that arise in credit markets. The U.S. Department of the Treasury also identified a particular need for these data as they worked to develop policies to ensure that more small businesses and small farms would have access to credit. The Board also found the more frequent data valuable for monitoring the macroeconomy and credit availability in particular for the purposes of monetary policymaking. However, after extensive analysis by the Board, the agencies agreed in the August 2016 proposal to reduce the frequency of Schedule RC–C, Part II, to semiannually in June and December for institutions with assets of less than $50 million. The agencies received five comments stating that Schedule RC–C, Part II, was particularly burdensome for their institutions due to the level of manual 17 See 81 FR 32186–32188 and 32208 (May 20, 2016). 18 See Section 122 of the Federal Deposit Insurance Corporation Improvement Act of 1991, Public Law 102–242. E:\FR\FM\09JAN1.SGM 09JAN1 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES intervention required to report the data. This schedule requests the number and amount currently outstanding of existing loans in each of these categories, but categorized by the loans’ original amounts. One banker noted that their bank had to manually stratify loan data into the three loan size categories for each type of loan according to the loans’ original amounts, and then manually adjust for lines of credit and participations purchased and sold to accurately report the amount currently outstanding. One bank questioned how valuable the small business and small farm loan data are for setting monetary policy, particularly since the Board had been setting monetary policy for many years before the FFIEC began requiring quarterly data in 2010 and also because the Call Report data collected in Schedule RC–C, Part II, does not capture significant nonbank funding sources for small businesses such as credit cards and vendor financing. The agencies received similar comments about burden from banker outreach efforts conducted by the FFIEC member entities and through the EGRPRA process. After additional review, the Board has determined that semiannual reporting by all institutions filing the FFIEC 051 would be of sufficient frequency to meet their data needs. Therefore, the agencies will collect this loan information from all institutions filing the FFIEC 051 in the June and December quarterly reports only. E. Coordination With Other Reports Two commenters from multibank holding companies stated that the FFIEC 051 does not provide any relief for their institutions, because many of the items removed from the FFIEC 041 must still be reported on the holding company’s FR Y–9C 19 report and therefore must still be collected at the bank level. One of these commenters noted that unless all banks in a multibank holding company can use the FFIEC 051, likely none of them will, as it may be more difficult to consolidate the information from different Call Report forms when completing the FR Y–9C. The Board notes that for most holding companies with total assets less than $1 billion, the holding company can file the FR Y–9SP, which does not require data being removed from the FFIEC 051. For holding companies with total assets of $1 billion or more, the FR Y–9C does require a significant amount of information that is being removed from the FFIEC 051. The Board believes this information is necessary on the FR Y– 19 Consolidated Financial Statements for Holding Companies (FR Y–9C; OMB No. 7100–0128). VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 9C, even if the activity is spread among multiple subsidiary institutions, some of which may have assets less than $1 billion, for the effective supervision of the consolidated holding company. In those cases, the holding company and its subsidiary institutions can best determine whether there is any burden saved at the institution level by filing the FFIEC 051 rather than the FFIEC 041. Four commenters stated that the agencies should reduce duplication between the Call Report and other regulatory reports collected by the agencies. Commenters noted perceived duplication of one or more data items with the following reports: FR 2900,20 FR 2644,21 the FDIC’s annual Summary of Deposits survey,22 and loan data provided to the institution’s Federal Home Loan Bank for access to advances. The agencies do not believe data collected in these collections are duplicative of Call Report data. The FR 2900 collects select data on cash and deposit liabilities for reserve requirement purposes, from most institutions on a weekly basis, which may not coincide with the reporting date for the Call Report. The FR 2644 collects data on loans, securities, and borrowings from a small sample of banks on a weekly basis, which may not coincide with the reporting date for the Call Report. The FDIC’s Summary of Deposits survey collects data on deposits stratified by branch location from institutions with branch offices annually as of each June 30. Deposit data categorized by branch location is not available elsewhere. The Federal Home Loan Banks are not government agencies, and any data they may collect in connection with various lending programs are not readily available for use by FFIEC member entities. IV. Proposed Call Report Revisions to the FFIEC 041 and the FFIEC 031 The agencies proposed revisions to some of the schedules in the FFIEC 041 and FFIEC 031 Call Reports in response to the findings of the first three user surveys at FFIEC member entities conducted under the Full Review. Specifically, the following schedules in the FFIEC 041 and FFIEC 031 versions of the Call Report would have data items removed or subject to new or higher reporting thresholds as a result of these surveys (see Appendices C and D 20 Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900; OMB No. 7100–0087). 21 Weekly Report of Selected Assets and Liabilities of Domestically Chartered Commercial Banks and U.S. Branches and Agencies of Foreign Banks (FR 2644; OMB No. 7100–0075). 22 Summary of Deposits, OMB No. 3064–0061. PO 00000 Frm 00143 Fmt 4703 Sfmt 4703 2451 for a complete listing of the affected data items based on the September 30, 2016, FFIEC 031 and FFIEC 041 Call Reports, respectively): • Schedule RI—Income Statement • Schedule RI–B—Charge-offs and Recoveries on Loans and Leases and Changes in Allowance for Loan and Lease Losses • Schedule RC–C—Loans and Lease Financing Receivables • Schedule RC–E—Deposit Liabilities • Schedule RC–M—Memoranda • Schedule RC–N—Past Due and Nonaccrual Loans, Leases, and Other Assets The agencies did not receive any comments on the specific changes to the FFIEC 041 and FFIEC 031 in the proposal, and plan to implement those changes as proposed. V. Additional Suggested Revisions Twelve commenters recommended additional specific changes for the agencies to consider on various schedules of the Call Report. Many of these commenters did not direct their comments at a specific version of the Call Report, so the agencies considered these comments to improve both the existing FFIEC 031 and FFIEC 041 Call Reports and proposed FFIEC 051. One commenter suggested the agencies revise Schedule RI–C (Disaggregated Data on the Allowance for Loan and Lease Losses) to align with the loan categories reported on Schedule RC–C, Part I. The agencies did not adopt this suggestion. Aligning the categories would require collecting additional granular data on Schedule RI–C, adding approximately 20 categories and 60 total items. The agencies proposed collecting disaggregated ALLL data for key Schedule RC–C, Part I, loan categories when they proposed to add Schedule RI–C to the Call Report in 2011. However, commenters on that proposal questioned the reporting of ALLL data for these key Call Report loan categories. They recommended reducing the number of loan categories and using broader portfolio segments that would better align with their loan loss allowance methodologies, which the agencies did in the final implementation of Schedule RI–C in 2013. The agencies do not believe that changing the schedule to require additional granularity of data is necessary for the supervision of the institutions to which this schedule is currently applicable. In this regard, the agencies do not collect Schedule RI–C from institutions with assets less than $1 billion and it would not be included in the FFIEC 051. E:\FR\FM\09JAN1.SGM 09JAN1 2452 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES Three commenters suggested revisions to Schedule RI–E (Explanations). One commenter suggested adjusting the criteria to separately disclose individual components of other noninterest income and other noninterest expense. The agencies’ current criteria require separate disclosure if a component within one of those income statement categories is greater than $100,000 and 3 percent of the total balance of that category.23 The commenter suggested adjusting the criteria to the greater of $100,000 and 5 to 7 percent of the total balance. Another commenter suggested reporting Schedule RI–E detail on other noninterest income and other noninterest expense annually on the December 31 Call Report, as the commenter stated the data are primarily useful on an annual rather than quarterly basis. Another commenter suggested providing definitions for each of the components of other noninterest income and other noninterest expense for which preprinted captions are provided in Schedule RI–E. The agencies plan to review the threshold for separately disclosing individual components and the frequency of the data collection as part of the ongoing Full Review. The agencies do not plan to provide specific definitions for the components of other noninterest income and other noninterest expense represented by preprinted captions. The agencies added preprinted captions for these components to assist all institutions, including community institutions, as they were the most frequently disclosed components. Not having preprinted captions for such components would necessitate each institution manually entering its own captions for those components of other noninterest income and other noninterest expense exceeding the reporting threshold. However, the agencies do not want to impose a regulatory definition for these individual components, which could require institutions to adjust their internal definitions to line up with the agencies’ definitions. The agencies use this information primarily for the supervision of individual institutions rather than for peer group comparison, so imposing uniform definitions across 23 Prior to 2001, the agencies required separate disclosure of components greater than 10 percent of all other noninterest income or other noninterest expense. In 2001, the agencies revised the threshold to 1 percent of total interest income plus total noninterest income. In 2008, the agencies changed the threshold to 3 percent of other noninterest income or other noninterest expense with a $25,000 floor. The floor was raised to $100,000 effective September 30, 2016, while retaining the percentage threshold. VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 institutions is not necessary for supervisory review. Detailed lists of components of other noninterest income and other noninterest expense can be found in the instructions for Schedule RI, items 5.1 and 7.d, respectively. The agencies plan to clarify the instructions for these two Schedule RI data items to better indicate the linkage between the components of other noninterest income and other noninterest expense listed in these instructions and the preprinted captions provided in Schedule RI–E. One commenter suggested the agencies review the intangible asset breakout on Schedule RC, item 10, and Schedule RC–M, item 2, and suggested combining goodwill and other intangible assets on Schedule RC. The agencies need additional time to consider this request, and will consider it within the next set of proposed Call Report revisions. Six commenters stated that Schedule RC–E (Deposit Liabilities) and RC–O (Other Data for Deposit Insurance and FICO Assessments) were particularly burdensome and suggested simplifying or consolidating the deposit data on these schedules. Some commenters specifically noted the breakout of deposit information by source, use, and balance as time-consuming, especially for Memorandum items 1 through 4 on Schedule RC–E. Two commenters noted that the FDIC’s deposit insurance assessments currently are calculated based on average total assets and average tangible equity, so the deposit data is not necessary for the vast majority of banks.24 Three commenters also questioned why the agencies maintain a stratification of certain deposits in Schedule RC–E into those with balances less than $100,000, $100,000 through $250,000, and more than $250,000 even though the deposit insurance limit is currently $250,000, and stated this stratification was particularly burdensome as it required a significant amount of manual intervention. Two commenters stated that separating out Individual Retirement Accounts (IRA) data from general deposits on Schedule RC–O was particularly burdensome, with one commenter noting their bank had to further identify and separate out Coverdell Education Savings Accounts (formerly called Education IRAs) from the bank’s other IRA account balances to add back to the non-retirement accounts. Schedule RC–E categorizes deposits based on source (brokered or non- brokered) and type of account (time deposit, demand deposit, savings deposit), and by deposit size within certain of those categories. The reporting of deposit data for some of these categories is required by statute.25 Reporting of time deposits with balances less than $100,000 in Schedule RC–E, including certain Memorandum items to adjust that amount, is tied to the Board’s measurement of the money supply.26 Schedule RC–O, Memorandum item 1, categorizes deposits based on purpose (for retirement or not for retirement) and subdivided by deposit size, as the deposit insurance limit applies separately to retirement and nonretirement accounts. These deposit data also are necessary for the FDIC to calculate the reserve ratio each quarter, which is the ratio of the net worth of the Deposit Insurance Fund (DIF) to the aggregate estimated insured deposits.27 The agencies previously approved revisions to Schedule RC–E (and Schedules RI and RC–K) to replace most segmentations of deposits less than $250,000 that are not needed to calculate the money supply with segmentations based on deposits of more than $250,000 for consistency with the deposit insurance limits currently in effect. These revisions will be implemented beginning March 31, 2017.28 The agencies are not making any revisions to the classification of Coverdell accounts, as the reporting of deposits by purpose is tied to the FDIC’s provision of deposit insurance. One commenter stated that the data on Schedules RC–F (Other Assets) and RC–G (Other Liabilities) did not change significantly for community banks from quarter to quarter and should be reported annually instead. The agencies did propose reducing the frequency by which institutions must report the significant components of all other assets and all other liabilities on these two schedules to semiannual in the FFIEC 051 in the August 2016 notice. The agencies will be considering both the data items and frequency of reporting for these two schedules for all versions of the Call Report in the Full Review, and will consider the commenter’s suggestions in that process. One commenter stated that Schedule RC–K (Quarterly Averages) was particularly burdensome, as the bank’s general ledger provides point-in-time 25 For example, 12 U.S.C. 1817(a)(5) and (9). definition of M2, https://www.federal reserve.gov/faqs/money_12845.htm. 27 See 12 U.S.C. 1813(y)(3). 28 See 81 FR 45357 (July 13, 2016). 26 See 24 Deposit data affects the assessments at certain institutions, such as bankers’ banks and custodial banks. PO 00000 Frm 00144 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM 09JAN1 sradovich on DSK3GMQ082PROD with NOTICES Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices amounts and manual intervention is needed to calculate quarterly averages. The agencies note that average total assets is necessary for various purposes, including prompt corrective action and deposit insurance assessments.29 The agencies will be considering both the data items and frequency of reporting for this schedule in the Full Review, and will consider the commenter’s suggestions in that process. Three commenters stated that Schedule RC–L (Derivatives and OffBalance Sheet Items) was particularly difficult to complete, as some items defined in that schedule do not align with definitions for similar items in Schedule RC–R, particularly for overthe-counter (OTC) derivatives. The commenters also noted certain items included in Schedule RC–L, such as ‘‘commitments to make a commitment,’’ are difficult to define and track. One commenter suggested lining up the loan commitment categories on Schedule RC–L with the loan categories on Schedule RC–C, Part I. The agencies are investigating alternatives to the current definitions in Schedule RC–L, and whether they can be more closely aligned with definitions used in the agencies’ regulatory capital rules, which is the basis for Schedule RC–R, for inclusion in a future notice. The agencies do not plan to align the loan categories between Schedules RC–L and RC–C, Part I. The loan categories on Schedule RC–C, Part I, are much more granular than in Schedule RC–L. Reducing the granularity of categories on Schedule RC–C, Part I, would impair the agencies’ ability to use that data for safety and soundness monitoring, while increasing the granularity on Schedule RC–L would impose additional burden to collect items the agencies do not believe are necessary. One commenter recommended reducing the frequency of certain data items in Schedule RC–M (Memoranda) to annual. Specifically, items 7 through 9, 11, and 12 do not change from quarter to quarter at the commenter’s bank. Item 7 collects data on assets under management in proprietary mutual funds and annuities. Item 8 collects information on an institution’s internet Web site addresses and trade names. Item 9 asks about internet Web site transactional capability. Items 11 and 12 collect information on certain bank powers. The agencies proposed in the August 2016 notice to reduce the frequency for items 7, 9, 11, and 12 from quarterly to annual. The agencies will continue collecting item 8 on a quarterly basis to provide more accurate, timely, 29 See 12 U.S.C. 1831o and 12 CFR 327.5. VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 and complete information to the FDIC, depositors, and the general public on the insured status of entities identifying themselves as FDIC-insured depository institutions than would occur through annual reporting. One commenter requested that the agencies add control totals to Schedule RC–N for past due and nonaccrual loans, leases, and other assets to allow easier validation of the accuracy of the reported data to the institution’s own records. The agencies also noted during their on-site banker outreach efforts that some institutions appended their own control totals on this form. The agencies agree with the suggestion, and plan to revise Schedule RC–N on the FFIEC 031, 041, and 051. For the same reason, the agencies will also revise Schedule RC–C, Part I, and Schedule RC–N to add control totals for troubled debt restructurings in Memorandum item 1 of each schedule. While these changes would add additional data items to these two schedules, the data items would be simple mathematical totals of existing data items and would not require the institution to obtain any additional data. Five commenters requested that the agencies improve the clarity and usefulness of the Call Report instructions and highlight any changes made to the instructions each quarter. One commenter also recommended improving internal consistency within the Call Report. The agencies agree that the current Call Report instructions could be made more useful, and will start by incorporating hyperlinks to cited documents in the instructions for the FFIEC 051.30 In addition, the agencies will post ‘‘redlined’’ documents on the FFIEC Web site 31 that clearly indicate any changes to the instructions made since the previous quarter in both versions of the Call Report instructions. The agencies note that the description in the Call Report forms and instructions for ‘‘loans and leases, net of unearned income’’ and ‘‘loans and leases held for investment’’ are intended to have the same reported amounts. Accordingly, the agencies will replace the former description with the latter description in affected data item captions and related instructions for clarity and internal consistency. The agencies will continue to consider additional changes to improve the clarity and usefulness of the Call Report 30 The agencies have already begun to add such hyperlinks to the existing set of instructions for the FFIEC 031 and FFIEC 041. 31 https://www.ffiec.gov/ffiec_report_forms.htm. PO 00000 Frm 00145 Fmt 4703 Sfmt 4703 2453 instructions and the internal consistency of the report. VI. Request for Comment Public comment is requested on all aspects of this joint notice. Comment is invited on: (a) Whether the proposed revisions to the collections of information that are the subject of this notice are necessary for the proper performance of the agencies’ functions, including whether the information has practical utility; (b) The accuracy of the agencies’ estimates of the burden of the information collections as they are proposed to be revised, including the validity of the methodology and assumptions used; (c) Ways to enhance the quality, utility, and clarity of the information to be collected; (d) Ways to minimize the burden of information collections on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. Comments submitted in response to this joint notice will be shared among the agencies. All comments will become a matter of public record. Appendix A Summary of the FFIEC Member Entities’ Uses of the Data Items in the Call Report Schedules in Full Review Surveys 1 Through 3 Schedule RC (Balance Sheet) Schedule RC collects high-level information on various balance sheet categories, including assets, liabilities, and equity accounts every quarter. These categories are aligned with the categories typically reported on a basic balance sheet prepared under U.S. generally accepted accounting principles (GAAP). Schedule RI (Income Statement) Schedule RI collects information on various income and expense categories every quarter. In general, these categories are aligned with the categories typically reported on a basic income statement and in the notes to the financial statements prepared under U.S. GAAP. The Memorandum items collect an assortment of information on items related to the income statement. Some items provide additional detail for certain categories of income or expense, while other items are not directly tied to earnings measures. Memorandum items on tax-exempt income and nondeductible interest expense are used to convert components of reported earnings to a tax-equivalent basis to improve the comparability of income statement information across institutions for purposes E:\FR\FM\09JAN1.SGM 09JAN1 2454 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES of analyzing institutions’ earnings. An institution’s Subchapter S status for federal income tax purposes assists examiners and other users in understanding the amounts, if any, reported for applicable income taxes. It also serves as a flag for adjusting after-tax earnings when measuring return on assets to improve the comparability of this ratio across institutions with differing tax statuses. The count of full-time equivalent employees is used to calculate efficiency ratios and average personnel expenses per employee to identify institutions with higher expense levels for further review. The existence of other-than-temporary impairment losses on debt securities recognized in earnings provides an indication of heightened credit risk in an institution’s investment securities, which may warrant supervisory follow-up, and assists in the scoping of the review of the securities portfolio during on-site examinations. Data on the composition of trading revenue is used in evaluating the variability and volatility of this revenue source for institutions with significant trading activity in off-site reviews and for pre-examination planning and as part of industry analysis of trading activity. Schedule RC–C, Part I (Loans and Lease Financing Receivables) Schedule RC–C, Part I, requests information on loan and lease financing activities, segmented into detailed loan categories. The memoranda items request additional information, including scheduled maturities and repricing dates for certain loan types and fair value estimates. Schedule RC–C details loan volumes, segmentations, and structures, all of which facilitate the assessment of an institution’s inherent risk, performance risk, and structure risk in its primary earning assets and its primary source of credit risk. Schedule RC– C is often reviewed in conjunction with Schedules RI, RI–B, and RC–N. This granular data enables examiners to analyze and assess the institution’s loan portfolio diversification, credit quality, concentration exposure, and overall risk profile. These schedules are critical to the credit quality analysis performed by examiners to identify early warning signs of deterioration in the financial condition of institutions. Asset quality ratios from the Uniform Bank Performance Report (UBPR) that are calculated using data from Schedule RC–C and related loan schedules are also helpful to examiners in determining how an institution is performing relative to its peers and relative to its own risk profile based on its loan portfolio composition. In addition, these ratios are useful to examiners in assessing the institution’s credit risk management practices relative to its peers. Elevated charge-offs or increases in nonaccrual loans in relation to loan balances provide information to users of the data on potential weak underwriting in prior periods, deterioration of asset quality, or the indication that the institution is recovering from a period of stress. If there are concerns about the allowance for loan and lease losses (ALLL) methodology or the appropriateness of the ALLL level, then there is a focus on the provision expense relative to the charge-offs as well as to the growth and VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 quality of certain portfolios, depending on the institution’s risk characteristics. All of these inputs are essential in the review of the balance sheet, the liquidity of the institution, and the asset-liability management of the institution. The data on Schedule RC–C are needed for on-site and off-site examination purposes and also are used in the systemic analysis of the banking system. Because the loan portfolio is the primary source of credit risk in institutions, the breakdown of the portfolio by loan type is essential in the review of asset quality. An understanding of an institution’s lending activity is needed to ensure the safety and soundness of the financial institution by indicating whether the institution is increasing concentrations or incorporating a change to its lending strategy. The loan segmentation information is essential for planning and staffing examinations by considering each institution’s lending activities. The information also allows the examination teams to determine if the lending volume constitutes a concentration of credit, which could require additional monitoring, measuring, and risk mitigation strategies by bank management. In addition, the loan detail is important for loan scoping and trend analysis of the entire portfolio, which are essential in determining an institution’s risk profile. On a broader perspective, the loan segmentation allows regulatory staff to identify concentration risks across institutions. Along with related data in Schedule RC– N, information about troubled debt restructurings in compliance with their modified terms can assist the assessment of management’s ability to work out different categories of problem loans. Maturity and repricing information on loans and leases, together with the maturity and repricing information collected in other schedules for other types of assets and liabilities, are needed to evaluate the liquidity and interest rate risk of the institution and to aid in evaluating the strategies institutions take to mitigate these risks. Liquidity and interest rate risk indicators that are calculated by agency models from an institution’s Call Report data and exceed specified parameters or change significantly between examinations are red flags that call for timely examiner off-site review. The institution’s risk profile in these areas is considered during pre-examination planning to determine the appropriate scoping and staffing for examinations. In addition, Schedule RC–C and related loan schedules assisted the Consumer Financial Protection Bureau’s (CFPB) efforts to develop required estimates for various Title XIV mortgage reform rulemakings under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111–203) (Dodd-Frank Act). Going forward, data items in these schedules are critical for continuous monitoring of the mortgage market. The CFPB uses these items to understand the intricacies of the mortgage market that are essential to assessing institutional participation in regulated consumer financial services markets and to assess regulatory impact associated with recent and proposed PO 00000 Frm 00146 Fmt 4703 Sfmt 4703 policies, as required by that agency’s statutory mandate. Finally, loan and lease information assists the agencies in fulfilling their specific missions. The Board, as part of its monetary policy mission, relies on institution-specific Call Report data to provide information on credit availability and lending conditions not available elsewhere. Loan and lease detail at all sizes of institutions is necessary for monitoring economic conditions. Reducing loan detail or data frequency for smaller institutions would limit the ability to monitor credit availability and lending conditions widely, including changes in credit and lending related to changes in monetary policy. At times, loan availability and lending conditions may be different at smaller institutions than at larger institutions. Furthermore, Schedule RC–C, Part I, data are used to benchmark weekly loan data collected by the Board from a sample of both small and large institutions; the weekly data are used to estimate weekly loan aggregates for the banking sector as a whole to provide a more timely input for purposes of monitoring the macroeconomy. The FDIC’s deposit insurance assessment system for ‘‘established small banks’’ relies on information reported by individual institutions for the Schedule RC–C, Part I, standardized loan categories in the determination of the loan mix index in the financial ratios method, as recently amended, which is used to determine assessment rates for such institutions. Schedule RC–C, Part II (Loans to Small Businesses and Small Farms) Schedule RC–C, Part II, requests data on loans to small businesses and small farms, including stratification by original loan amount. Call Report small business and small farm lending data are an invaluable resource for understanding credit conditions facing these sectors of the economy. Quarterly collection of these data improves the Board’s ability to monitor credit conditions facing small businesses and small farms and significantly contributes to its ability to develop policies intended to address any problems that arise in credit markets. The institution-level Call Report data provide information that cannot be obtained from other indicators of small business and small farm credit conditions. For example, during a period of credit contraction, the Call Report data can be used to identify which types of institutions are reducing the volume of their loans to small businesses and small farms. This is important information for the Board, as having detailed data on the characteristics of affected institutions is crucial to building a sufficiently informative picture of the strength of economic activity. Moreover, there is evidence that small business lending by small institutions does not correlate with lending by larger institutions. Monetary policymaking benefits importantly from timely information on small business credit conditions and flows. To determine how best to adjust the federal funds rate over time, the Board must continuously assess the prospects for real economic activity and inflation in coming E:\FR\FM\09JAN1.SGM 09JAN1 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices sradovich on DSK3GMQ082PROD with NOTICES quarters. Credit conditions have an important bearing on the evolution of those prospects over time, and so the Board pays close attention to data from Call Reports and other sources. In trying to understand the implications of aggregate credit data for the macroeconomic outlook, it is helpful to be able to distinguish between conditions facing small firms and those affecting other businesses, for several reasons. First, small businesses comprise a substantial portion of the nonfinancial business sector, and so their hiring and investment decisions have an important influence on overall real activity. Second, because small businesses tend to depend more heavily on depository institutions for external financing, they likely experience material swings in their ability to obtain credit relative to larger firms. Third, the relative opacity of small businesses and their consequent need to provide collateral for loans is thought to create a ‘‘credit’’ channel for monetary policy to influence real activity. Specifically, changes in monetary policy may alter the value of assets used as collateral for loans, thereby affecting the ability of small businesses to obtain credit, abstracting from the effects of any changes in loan rates. Finally, the credit conditions facing small businesses and small farms differ substantially from those facing large businesses, making it necessary to collect indicators that are specific to these borrowers. Large businesses may access credit from a number of different sources, including the corporate bond market and the commercial paper market. In contrast, small businesses and small farms rely more heavily on credit provided through depository institutions. The dependence of small businesses and small farms on lending by depository institutions—particularly from smaller institutions—highlights the importance of Call Report data. Schedule RC–N (Past Due and Nonaccrual Loans, Leases, and Other Assets) Schedule RC–N requests data on past due and nonaccrual assets by detailed categories for loans and leases and, on a combined basis, for debt securities and other assets. Data collected on Schedule RC–N is essential to the oversight function of the FFIEC member entities. The loan portfolio is the largest asset type and the primary source of credit risk at most financial institutions. Past due and nonaccrual loan information provides significant insights into the overall credit quality of a financial institution’s loan portfolio and potential areas of credit quality concerns on which to focus for monitoring and assessing the credit risk management and overall safety and soundness of an institution. A high level of past due or nonaccrual loans often precedes adverse changes in an institution’s earnings, liquidity, and capital adequacy. This information can also have an impact on consumer protection law compliance and agency rulemaking. Information collected on Schedule RC–N is integral to both on-site and off-site review processes at the FFIEC member entities. Trends in past due and nonaccrual loans alert examiners to possible weaknesses in bank management’s loan underwriting and VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 credit administration practices. This information is a significant factor in assessing the portfolio’s collectability and in estimating the appropriate level for an institution’s ALLL, as well as the adequacy of its capital levels. The ability to compare results and trends across financial institutions is important to distinguish systemic issues from institution-specific concerns. Past due and nonaccrual loan information can serve as an indicator of areas of increasing credit risk within the loan portfolio. The segmentation of past due and nonaccrual information by loan category is necessary to pinpoint where the credit risk in an institution’s loan portfolio exists. Comparing the past due level in different loan portfolios to other risk characteristics in that portfolio such as concentration, charge-offs, or growth can help to determine the overall level of risk to the safety and soundness of an institution. This data can also provide more insight on credit risks or weak underwriting practices associated with a specific loan category, which helps direct the scope of an exam. Memorandum items in Schedule RC–N also provide important information about credit risk management, including the past due or nonaccrual status of troubled debt restructurings, which can assist the assessment of management’s ability to work out different categories of problem loans. Data regarding delinquent derivative contracts provides important information for assessing a financial institution’s asset quality, capital level, earnings, market risk, and operational risk. Past due and nonaccrual information is also utilized in the assessment of compliance with consumer protection laws and regulations. Items reported on Schedule RC– N are used to inform rule writing and policy efforts, including the CFPB’s Title XIV mortgage reform rulemakings under the Dodd-Frank Act. Past due information can identify potential areas of disparate treatment in relation to the Fair Housing Act (Pub. L. 90–284). Additionally, past due levels can highlight areas of potential unfair practices under the principles in section 1031 of the Dodd-Frank Act, which are similar to those under section 5 of the Federal Trade Commission Act (15 U.S.C. 45). Schedule RI–B, Parts I and II (Charge-offs and Recoveries on Loans and Leases and Changes in Allowance for Loan and Lease Losses) Schedule RI–B, Part I, collects information on charge-offs and recoveries on loans and leases, while Part II collects information on changes in the ALLL during the year-to-date reporting period in a manner consistent with the disclosure of the activity in the allowance required under U.S. GAAP. The data items on Schedule RI–B provide information critical to the missions of the FFIEC member entities. Charge-off amounts, in conjunction with any associated recoveries, for the various loan categories are needed to assess the safety and soundness of the financial institution by indicating the credit quality of the loan portfolio and the potential credit risk of the institution. The data items are also used to assess the strength of the institution’s credit administration PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 2455 practices, along with the institution’s loan underwriting practices. The data items also support the agencies’ rule writing and policy efforts. Schedule RI–B data play an integral role in reviewing the asset quality of an institution. The net charge-offs help in the assessment of the level of credit risk in the loan portfolio, both in aggregate and by loan type. Above average or increasing net charge-offs may be a signal of weak underwriting in prior periods, which in turn may be an indicator of future risks to earnings and capital. In addition, the separate reporting of gross charge-offs and recoveries allows users of the data to evaluate whether high recovery rates are masking underlying loss levels and trends, which may have future earnings implications, and the charge-off and recovery data also aid in the planning of on-site examinations and in the scoping of the loan review to be conducted during these examinations. Schedule RI–B is also important in assessing the strength of an institution’s underwriting and credit administration practices. The data items allow for the agencies to highlight loan categories with a large or sudden change in charge-off rates, which is often a key indicator of weaknesses in these areas, while information on recoveries provides support in evaluating an institution’s ability to collect on prior chargeoffs. The segmentation of the charge-off and recovery data by loan category in Schedule RI–B is essential for many reasons. Consistent segmentation by loan category allows for comparability between institutions, as well as within an institution from quarter to quarter, allowing for the evaluation of changes and trends in chargeoffs and recoveries that may or may not be institution-specific. This evaluation facilitates on-site examination planning. It also allows for better off-site monitoring of the existing types of lending and shifts in types of lending. The granularity and consistency of data items helps in the determination of whether weaknesses are confined to a particular portfolio segment and are unique to the institution or whether they are representative of a more widespread systemic weakness in a particular loan category. The detail by loan category is critical as losses in certain portfolios vary based on several factors and aggregating the data items would impair the ability to analyze data by loan category. The Memorandum items request further detail on charge-offs and recoveries or additional loan categories, which assists in the assessment of credit risk in these areas. Schedule RI–B data items are used in rule writing and policy efforts. In particular, the items are used to assess institutional participation in regulated consumer financial services markets and to assess regulatory impact associated with recent and proposed policies, as required by the CFPB’s mandate. Also, the information reported in Schedule RI–B, Part I, was integral in various Title XIV mortgage reform rulemakings under the Dodd-Frank Act and continues to be critical for the continuous monitoring of the mortgage markets. E:\FR\FM\09JAN1.SGM 09JAN1 2456 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Schedule RC–E, Parts I and II (Deposit Liabilities) Schedule RC–E, Part I, requests data on deposits, segmented between transaction and nontransaction accounts. The Memoranda section of the schedule requests additional detail on retirement account deposits, brokered deposits, deposit size, and time deposit maturity and repricing dates. Schedule RC–E, Part II, requests data on foreign deposits and is included only in the FFIEC 031. Schedule RC–E, Part I, provides detail necessary for supervisory purposes, including for identifying material deposit elements and providing detail needed to analyze cost of funds. Deposit detail as to the type, nature, and maturity of deposits, including deposits from non-core sources, is critical to the agencies’ asset-liability management, interest rate risk, and liquidity analyses. A number of agency analysis tools routinely use quarterly deposit data for trend analysis and timely identification of deposit shifts, including changes in an institution’s use of brokered and listing service deposits. Schedule RC–E, Part I, data are also used to estimate the contribution to the U.S. monetary aggregates for over 1,000 depository institutions that do not file these data directly to the Board. The Schedule RC–E, Part I, Memorandum items provide information needed for off-site monitoring and pre-examination planning, particularly for analyses related to brokered deposits and time deposits, the results of which may signal the existence of higher-risk funding strategies. The resolution process for failed institutions requires sufficient deposit detail to estimate the least costly alternative to liquidation. Brokered deposit data are used as inputs in the calculation of deposit insurance assessment rates and to assure compliance with safety and soundness regulations tied to limits on those types of deposits. Maturity and repricing information on time deposits, together with the maturity and repricing information collected in other schedules for other types of assets and liabilities, are needed to evaluate the liquidity and interest rate risk of the institution and to aid in evaluating the strategies institutions take to mitigate these risks. Liquidity and interest rate risk indicators that are calculated by agency models from an institution’s Call Report data and exceed specified parameters or change significantly between examinations are red flags that call for timely examiner off-site review. The institution’s risk profile in these areas is considered during pre-examination planning to determine the appropriate scoping and staffing for examinations. sradovich on DSK3GMQ082PROD with NOTICES Schedule Schedule RC–E, Part II, data on foreign deposits provides the extent of and exposure to such balances, and is used in similar analyses for institutions with foreign operations. Schedule RC–O (Other Data for Deposit Insurance and FICO Assessments) Schedule RC–O requests data for deposit insurance purposes and serves three primary purposes for the FDIC: Calculating the FDIC’s DIF reserve ratio, calculating the assessment base of FDIC-insured institutions, and calculating the risk-based assessment rate of FDIC-insured institutions. Schedule RC–O data are collected in the Call Report to provide unique information used in the calculation of the FDIC’s reserve ratio to satisfy the statutory requirements related to maintaining the DIF. Information related to deposit liabilities on Schedule RC– O is needed to estimate insured deposits. Schedule RC–O is the only place on the Call Report where information is available to estimate insured and uninsured deposits for individual institutions and equivalent data items are not readily available from other sources. Schedule RC–O data that are not available elsewhere enable the FDIC to calculate the quarterly deposit insurance assessment base for each FDIC-insured institution. Pursuant to the Dodd-Frank Act, the assessment base is defined as average consolidated total assets minus average tangible equity, both of which are reported in Schedule RC–O. Custodial banks and banker’s banks also receive an additional adjustment to the assessment base using Schedule RC–O data. The FDIC must be able to calculate the assessment base in order to meet the statutory requirements for collecting quarterly insurance assessments from all FDIC-insured institutions. Most of the data reported on Schedule RC– O is used to determine the risk-based insurance assessment for individual institutions in accordance with FDIC regulations implementing the statutory requirement for risk-based assessments first enacted in 1991. With the adoption of the risk-based scorecards for large and highly complex institutions, additional reporting is required on Schedule RC–O in data items applicable only to these institutions. In addition, some Schedule RC–O data items are used for determining the assessment rate of all FDIC-insured institutions. Supervisory uses of Schedule RC–O data include incorporating the data on the maturity structure of external borrowings in agency interest rate risk models to determine the impact of interest rate movements on income and economic value of equity. Interest rate risk indicators that exceed specified parameters or change significantly between examinations are triggers for timely off-site review. The indicated level of interest rate risk is considered during preexamination planning to determine the appropriate scoping and staffing for examinations. Data on reciprocal brokered deposits supplements on- and off-site analyses of liquidity ratios, including the net non-core funding dependence and net shortterm non-core funding dependence, both of which include brokered deposits in their calculation, because reciprocal brokered deposits may have characteristics that differ from other brokered deposits. Appendix B Proposed FFIEC 051 for March 31, 2017: Changes Made to the FFIEC 041 (Based on the FFIEC 041 for September 30, 2016) Schedules Replaced by Schedule SU— Supplemental Information Schedule RC–D—Trading Assets and Liabilities Schedule RC–P—1–4 Family Residential Mortgage Banking Activities Schedule RC–Q—Assets and Liabilities Measured at Fair Value on a Recurring Basis Schedule RC–S—Servicing, Securitization, and Asset Sale Activities Schedule RC–V—Variable Interest Entities Schedules with a Change in Frequency of Collection 1. Schedule RC–C, Part II—Loans to Small Businesses and Small Farms—For all institutions that file the FFIEC 051, the frequency of collection will move from quarterly to semiannual (June and December). 2. Schedule RC–A—Cash and Balances Due from Depository Institutions—Institutions with less than $300 million in total assets are already exempt from completing this schedule. For all other FFIEC 051 filers, the frequency of collection will move from quarterly to semiannual (June and December). Data Items Removed Note: In the following list of ‘‘Data Items Removed’’ from the proposed FFIEC 051, existing FFIEC 041 data items that institutions with less than $1 billion in total assets are currently exempt from reporting are marked with an asterisk (‘‘ *’’). In addition, the list excludes two Call Report data items that have been approved for removal by OMB effective March 31, 2017, in accordance with the agencies’ July 13, 2016, Federal Register notice (81 FR 45357): Schedule RI, Memorandum items 14.a and 14.b. Item Item name ................................ ................................ ................................ ................................ 1.a.(4) ........................ 1.e ............................. 2.c .............................. 2.d ............................. RI ................................ RI ................................ 5.c .............................. 5.e ............................. Loans to foreign governments and official institutions ............. Interest income from trading assets ......................................... Interest on trading liabilities and other borrowed money ......... Interest on subordinated notes and debentures ....................... Note: Items 2.c and 2.d of Schedule RI will be combined into one data item for ‘‘Other interest expense.’’ Trading revenue ........................................................................ Venture capital revenue ............................................................ RI RI RI RI VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00148 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RIAD4056. RIAD4069. RIAD4185. RIAD4200. RIADA220. RIADB491. 2457 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Item Item name RI ................................ M2 * ........................... RI RI RI RI RI RI ................................ ................................ ................................ ................................ ................................ ................................ M8.a .......................... M8.b .......................... M8.c ........................... M8.d .......................... M8.e .......................... M8.f * ......................... RI ................................ M8.g * ........................ RI ................................ RI ................................ M9.a .......................... M9.b .......................... RI ................................ RI ................................ M10 ........................... M13.a.(1) ................... RI ................................ M13.b.(1) ................... RI ................................ M15.a * ...................... RI ................................ M15.b * ...................... RI ................................ M15.c * ....................... RI ................................ RI–B, Part I ................ M15.d * ...................... 2 ................................ RI–B, Part I ................ 6 ................................ RI–B, Part I ................ M2.a .......................... RI–B, Part I ................ M2.b .......................... RI–B, Part I ................ M2.c ........................... RI–B, Part I ................ M2.d .......................... RI–B, Part II ............... M1 ............................. RI–C ........................... 1.a * ........................... Income from the sale and servicing of mutual funds and annuities (included in Schedule RI, item 8). Interest rate exposures ............................................................. Foreign exchange exposures .................................................... Equity security and index exposures ........................................ Commodity and other exposures .............................................. Credit exposures ....................................................................... Impact on trading revenue of changes in the creditworthiness of the bank’s derivatives counterparties on the bank’s derivative assets (included in Memorandum items 8.a through 8.e). Impact on trading revenue of changes in the creditworthiness of the bank on the bank’s derivative liabilities (included in Memorandum items 8.a through 8.e).. Net gains (losses) on credit derivatives held for trading .......... Net gains (losses) on credit derivatives held for purposes other than trading. Credit losses on derivatives ...................................................... Estimated net gains (losses) on loans attributable to changes in instrument-specific credit risk. Estimated net gains (losses) on liabilities attributable to changes in instrument-specific credit risk. Consumer overdraft-related service charges levied on those transaction account and non-transaction savings account deposit products intended primarily for individuals for personal, household, or family use. Consumer account periodic maintenance charges levied on those transaction account and non-transaction savings account deposit products intended primarily for individuals for personal, household, or family use. Consumer customer automated teller machine (ATM) fees levied on those transaction account and non-transaction savings account deposit products intended primarily for individuals for personal, household, or family use. All other service charges on deposit accounts ......................... Loans to depository institutions and acceptances of other banks (Columns A and B). Loans to foreign governments and official institutions (Columns A and B). Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RI–B, part I, item 1) (Columns A and B). Loans to and acceptances of foreign banks (included in Schedule RI–B, part I, item 2) (Columns A and B). Commercial and industrial loans to non-U.S. addressees (domicile) (included in Schedule RI–B, part I, item 4) (Columns A and B). Leases to individuals for household, family, and other personal expenditures (included in Schedule RI–B, part I, item 8) (Columns A and B). Allocated transfer risk reserve included in Schedule RI–B, part II, item 7. Construction loans (Columns A through F) .............................. RI–C ........................... 1.b * ........................... Commercial real estate loans (Columns A through F) ............. RI–C ........................... 1.c * ............................ Residential real estate loans (Columns A through F) .............. RI–C ........................... 2 * .............................. Commercial loans (Columns A through F) ............................... RI–C ........................... sradovich on DSK3GMQ082PROD with NOTICES Schedule 3 * .............................. Credit cards (Columns A through F) ......................................... RI–C ........................... 4 * .............................. Other consumer loans (Columns A through F) ........................ RI–C ........................... RI–C ........................... 5 * .............................. 6 * .............................. Unallocated, if any .................................................................... Total (for each column, sum of items 1.a through 5) (Columns A through F). VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00149 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RIAD8431. RIAD8757. RIAD8758. RIAD8759. RIAD8760. RIADF186. RIADK090. RIADK094. RIADC889. RIADC890. RIADA251. RIADF552. RIADF554. RIADH032. RIADH033. RIADH034. RIADH035. RIAD4481, RIAD4482. RIAD4643, RIAD4627. RIAD4652, RIAD4662. RIAD4654, RIAD4664. RIAD4646, RIAD4618. RIADF185, RIADF187. RIADC435. RCONM708, RCONM709, RCONM710,RCONM711, RCONM712,RCONM713. RCONM714, RCONM715, RCONM716, RCONM717, RCONM719, RCONM720. RCONM721, RCONM722, RCONM723, RCONM724, RCONM725, RCONM726. RCONM727, RCONM728, RCONM729, RCONM730, RCONM731, RCONM732. RCONM733, RCONM734, RCONM735, RCONM736, RCONM737, RCONM738. RCONM739, RCONM740, RCONM741, RCONM742, RCONM743, RCONM744. RCONM745. RCONM746, RCONM747, RCONM748, RCONM749, RCONM750, RCONM751. 2458 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Item Item name RC–B .......................... M5.a * ........................ Credit card receivables (Columns A through D) ....................... RC–B .......................... M5.b * ........................ Home equity lines (Columns A through D) ............................... RC–B .......................... M5.c * ......................... Automobile loans (Columns A through D) ................................ RC–B .......................... M5.d * ........................ Other consumer loans (Columns A through D) ........................ RC–B .......................... M5.e * ........................ Commercial and industrial loans (Columns A through D) ........ RC–B .......................... M5.f * ......................... Other (Columns A through D) ................................................... RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, ............... ............... ............... ............... ............... ............... ............... ............... 2a.(1) ......................... 2a.(2) ......................... 2.b ............................. 2.c.(1) ........................ 2.c.(2) ........................ 4.a ............................. 4.b ............................. 7 ................................ RC–C, Part I ............... 9.b.(1) ........................ RC–C, Part I ............... RC–C, Part I ............... 9.b.(2) ........................ 10.a ........................... RC–C, RC–C, RC–C, RC–C, ............... ............... ............... ............... 10.b ........................... M1.e.(1) ..................... M1.e.(2) ..................... M5 ............................. RC–C, Part I ............... RC–C, Part I ............... M10.a.(1) ................... M10.a.(2) ................... RC–C, Part I ............... M10.a.(3)(a) ............... RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... M10.a.(3)(b)(1) .......... M10.a.(3)(b)(2) .......... M10.a.(4) ................... M10.a.(5) ................... M10.b ........................ M10.c.(1) ................... M10.c.(2) ................... M10.c.(3) ................... M10.c.(4) ................... M10.d ........................ M11.a.(1) ................... M11.a.(2) ................... RC–C, Part I ............... M11.a.(3)(a) ............... RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, RC–C, ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... ............... M11.a.(3)(b)(1) .......... M11.a.(3)(b)(2) .......... M11.a.(4) ................... M11.a.(5) ................... M11.b ........................ M11.c.(1) ................... M11.c.(2) ................... M11.c.(3) ................... M11.c.(4) ................... M11.d ........................ M12.a ........................ To U.S. branches and agencies of foreign banks .................... To other commercial banks in the U.S. .................................... To other depository institutions in the U.S. .............................. To foreign branches of other U.S. banks ................................. To other banks in foreign countries .......................................... To U.S. addressees (domicile) ................................................. To non-U.S. addressees (domicile) .......................................... Loans to foreign governments and official institutions (including foreign central banks). Loans for purchasing or carrying securities (secured and unsecured). All other loans (exclude consumer loans) ................................ Leases to individuals for household, family, and other personal expenditures (i.e., consumer leases). All other leases ......................................................................... To U.S. addressees (domicile) ................................................. To non-U.S. addressees (domicile) .......................................... Loans secured by real estate to non U.S. addressees (domicile). Construction, land development, and other land loans ............ Secured by farmland (including farm residential and other improvements). Revolving, open-end loans secured by 1–4 family residential properties and extended under lines of credit. Secured by first liens ................................................................ Secured by junior liens ............................................................. Secured by multifamily (5 or more) residential properties ........ Secured by nonfarm nonresidential properties ......................... Commercial and industrial loans ............................................... Credit cards ............................................................................... Other revolving credit plans ...................................................... Automobile loans ....................................................................... Other consumer loans ............................................................... Other loans ................................................................................ Construction, land development, and other land loans ............ Secured by farmland (including farm residential and other improvements). Revolving, open-end loans secured by 1–4 family residential properties and extended under lines of credit. Secured by first liens ................................................................ Secured by junior liens ............................................................. Secured by multifamily (5 or more) residential properties ........ Secured by nonfarm nonresidential properties ......................... Commercial and industrial loans ............................................... Credit cards ............................................................................... Other revolving credit plans ...................................................... Automobile loans ....................................................................... Other consumer loans ............................................................... Other loans ................................................................................ Loans secured by real estate (Columns A through C) ............. RC–C, Part I ............... sradovich on DSK3GMQ082PROD with NOTICES Schedule M12.b ........................ Commercial and industrial loans (Columns A through C) ........ RC–C, Part I ............... M12.c ......................... RC–C, Part I ............... M12.d ........................ RC–E .......................... M6.a * ........................ Loans to individuals for household, family and other personal expenditures (Columns A through C). All other loans and all leases (Columns A through C) ............. Note: Memorandum items 12.a through 12.d of Schedule RC–C, Part I, will be combined into data items for ‘‘Total loans and leases’’ (Columns A through C). Total deposits in those noninterest-bearing transaction account deposit products intended primarily for individuals for personal, household, or family use. Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part Part I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00150 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RCONB838, RCONB839, RCONB840, RCONB841. RCONB842, RCONB843, RCONB844, RCONB845. RCONB846, RCONB847, RCONB848, RCONB849. RCONB850, RCONB851, RCONB852, RCONB853. RCONB854, RCONB855, RCONB856, RCONB857. RCONB858, RCONB859, RCONB860, RCONB861. RCONB532. RCONB533. RCONB534. RCONB536. RCONB537. RCON1763. RCON1764. RCON2081. RCON1545. RCONJ451. RCONF162. RCONF163. RCONK163. RCONK164. RCONB837. RCONF578. RCONF579. RCONF580. RCONF581. RCONF582. RCONF583. RCONF584. RCONF585. RCONF586. RCONF587. RCONK196. RCONK208. RCONF589. RCONF590. RCONF591. RCONF592. RCONF593. RCONF594. RCONF595. RCONF596. RCONF597. RCONF598. RCONF599. RCONK195. RCONK209. RCONF601. RCONG091, RCONG092, RCONG093. RCONG094, RCONG095, RCONG096. RCONG097, RCONG098, RCONG099. RCONG100, RCONG101, RCONG102. RCONP753. 2459 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Item Item name RC–E .......................... M6.b * ........................ RC–E .......................... M6.c * ......................... RC–E .......................... M7.a.(1) * ................... RC–E .......................... M7.a.(2) * ................... RC–E .......................... M7.b.(1) * ................... RC–E .......................... M7.b.(2) * ................... RC–L .......................... 1.a.(1) ........................ RC–L .......................... 1.a.(2) ........................ RC–L .......................... 2.a * ........................... RC–L .......................... 3.a * ........................... RC–L RC–L RC–L RC–L RC–L RC–L RC–L RC–L RC–L RC–L .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... .......................... 7.a.(1) ........................ 7.a.(2) ........................ 7.a.(3) ........................ 7.a.(4) ........................ 7.b.(1) ........................ 7.b.(2) ........................ 7.c.(1)(a) .................... 7.c.(1)(b) .................... 7.c.(2)(a) .................... 7.c.(2)(b) .................... RC–L .......................... 7.c.(2)(c) .................... RC–L .......................... 7.d.(1)(a) .................... Total deposits in those interest-bearing transaction account deposit products intended primarily for individuals for personal, household, or family use. Total deposits in all other transaction accounts of individuals, partnerships, and corporations. Total deposits in those MMDA deposit products intended primarily for individuals for personal, household, or family use. Deposits in all other MMDAs of individuals, partnerships, and corporations. Total deposits in those other savings deposit account deposit products intended primarily for individuals for personal, household, or family use. Deposits in all other savings deposit accounts of individuals, partnerships, and corporations. Unused commitments for Home Equity Conversion Mortgage (HECM) reverse mortgages outstanding that are held for investment (included in item 1.a above). Unused commitments for proprietary reverse mortgages outstanding that are held for investment (included in item 1.a). Amount of financial standby letters of credit conveyed to others. Amount of performance standby letters of credit conveyed to others. Credit default swaps (Columns A and B) ................................. Total return swaps (Columns A and B) .................................... Credit options (Columns A and B) ............................................ Other credit derivatives (Columns A and B) ............................. Gross positive fair value (Columns A and B) ........................... Gross negative fair value (Columns A and B) .......................... Sold protection .......................................................................... Purchased protection ................................................................ Sold protection .......................................................................... Purchased protection that is recognized as a guarantee for regulatory capital purposes. Purchased protection that is not recognized as a guarantee for regulatory capital purposes. Investment grade (Columns A through C) ................................ RC–L .......................... 7.d.(1)(b) .................... Sub-investment grade (Columns A through C) ........................ RC–L .......................... 7.d.(2)(a) .................... Investment grade (Columns A through C) ................................ RC–L .......................... 7.d.(2)(b) .................... Sub-investment grade (Columns A through C) ........................ RC–L RC–L RC–L RC–L .......................... .......................... .......................... .......................... 8 ................................ 9.b ............................. 10.a ........................... 12.a ........................... Spot foreign exchange contracts .............................................. Commitments to purchase when-issued securities .................. Commitments to sell when-issued securities ............................ Futures contracts (Columns A through D) ................................ RC–L .......................... 12.b ........................... Forward contracts (Columns A through D) ............................... RC–L .......................... 12.c.(1) ...................... Written options (Columns A through D) .................................... RC–L .......................... 12.c.(2) ...................... Purchased options (Columns A through D) .............................. RC–L .......................... 12.d.(1) ...................... Written options (Columns A through D) .................................... RC–L .......................... 12.d.(2) ...................... Purchased options (Columns A through D) .............................. RC–L .......................... 12.e ........................... Swaps (Columns A through D) ................................................. RC–L .......................... 13 .............................. RC–L .......................... sradovich on DSK3GMQ082PROD with NOTICES Schedule 14 .............................. RC–L .......................... 14.a ........................... RC–L .......................... 15.a.(1) ...................... Total gross notional amount of derivative contracts held for trading (Columns B through D). Total gross notional amount of derivative contracts held for purposes other than trading (Columns B through D). Interest rate swaps where the bank has agreed to pay a fixed rate. Gross positive fair value (Columns A through D) ..................... RC–L .......................... 15.a.(2) ...................... Gross negative fair value (Columns A through D) ................... RC–L .......................... 15.b.(1) ...................... Gross positive fair value (Columns A through D) ..................... VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00151 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RCONP754. RCONP755. RCONP756. RCONP757. RCONP758. RCONP759. RCONJ477. RCONJ478. RCON3820. RCON3822. RCONC968, RCONC969. RCONC970, RCONC971. RCONC972, RCONC973. RCONC974, RCONC975. RCONC219, RCONC221. RCONC220, RCONC222. RCONG401. RCONG402. RCONG403. RCONG404. RCONG405. RCONG406, RCONG407, RCONG408. RCONG409, RCONG410, RCONG411. RCONG412, RCONG413, RCONG414. RCONG415, RCONG416, RCONG417. RCON8765. RCON3434. RCON3435. RCON8693, RCON8694, RCON8695, RCON8696. RCON8697, RCON8698, RCON8699, RCON8700. RCON8701, RCON8702, RCON8703, RCON8704. RCON8705, RCON8706, RCON8707, RCON8708. RCON8709, RCON8710, RCON8711, RCON8712. RCON8713, RCON8714, RCON8715, RCON8716. RCON3450, RCON3826, RCON8719, RCON8720. RCONA127, RCON8723, RCON8724. RCON8726, RCON8727, RCON8728. RCONA589. RCON8733, RCON8734, RCON8735, RCON8736. RCON8737, RCON8738, RCON8739, RCON8740. RCON8741, RCON8742, RCON8743, RCON8744. 2460 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Item Item name RC–L .......................... 15.b.(2) ...................... Gross negative fair value (Columns A through D) ................... RC–L .......................... 16.a * ......................... Net current credit exposure (Columns A through E) ................ RC–L .......................... 16.b.(1) * .................... Cash—U.S. dollar (Columns A through E) ............................... RC–L .......................... 16.b.(2) * .................... Cash—Other currencies (Columns A through E) ..................... RC–L .......................... 16.b.(3) * .................... U.S. Treasury securities (Columns A through E) ..................... RC–L .......................... 16.b.(4) * .................... U.S. Government agency and U.S. Government-sponsored agency debt securities (Columns A through E). RC–L .......................... 16.b.(5) * .................... Corporate bonds (Columns A through E) ................................. RC–L .......................... 16.b.(6) * .................... Equity securities (Columns A through E) .................................. RC–L .......................... 16.b.(7) * .................... All other collateral (Columns A through E) ............................... RC–L .......................... 16.b.(8) * .................... Total fair value of collateral (sum of items 16.b.(1) through (7)) (Columns A through E). RC–M ......................... RC–M ......................... 13.a.(1)(a)(1) ............. 13.a.(1)(a)(2) ............. RC–M ......................... RC–M ......................... 13.a.(1)(b) .................. 13.a.(1)(c)(1) .............. RC–M RC–M RC–M RC–M ......................... ......................... ......................... ......................... 13.a.(1)(c)(2)(a) ......... 13.a.(1)(c)(2)(b) ......... 13.a.(1)(d) .................. 13.a.(1)(e)(1) ............. RC–M RC–M RC–M RC–M RC–M ......................... ......................... ......................... ......................... ......................... 13.a.(1)(e)(2) ............. 13.a.(3) ...................... 13.a.(4)(a) .................. 13.a.(4)(b) .................. 13.a.(4)(c) .................. RC–M RC–M RC–M RC–M RC–M RC–M RC–M RC–M ......................... ......................... ......................... ......................... ......................... ......................... ......................... ......................... 13.a.(5) ...................... 13.b.(1) ...................... 13.b.(2) ...................... 13.b.(3) ...................... 13.b.(4) ...................... 13.b.(5) ...................... 13.c ............................ 13.d ........................... RC–N .......................... 6 ................................ RC–N .......................... 11.a.(1)(a) .................. RC–N .......................... 11.a.(1)(b) .................. RC–N .......................... 11.a.(2) ...................... 1–4 family residential construction loans .................................. Other construction loans and all land development and other land loans. Secured by farmland ................................................................. Revolving, open-end loans secured by 1–4 family residential properties and extended under lines of credit. Secured by first liens ................................................................ Secured by junior liens ............................................................. Secured by multifamily (5 or more) residential properties ........ Loans secured by owner-occupied nonfarm nonresidential properties. Loans secured by other nonfarm nonresidential properties ..... Commercial and industrial loans ............................................... Credit cards ............................................................................... Automobile loans ....................................................................... Other (includes revolving credit plans other than credit cards and other consumer loans). All other loans and all leases .................................................... Construction, land development, and other land ...................... Farmland ................................................................................... 1–4 family residential properties ............................................... Multifamily (5 or more) residential properties ........................... Nonfarm nonresidential properties ............................................ Debt securities (included in Schedule RC, items 2.a and 2.b) Other assets (exclude FDIC loss-sharing indemnification assets). Loans to foreign governments and official institutions (Columns A through C). 1–4 family residential construction loans (Columns A through C). Other construction loans and all land development and other land loans (Columns A through C). Secured by farmland (Columns A through C) .......................... RC–N .......................... sradovich on DSK3GMQ082PROD with NOTICES Schedule 11.a.(3)(a) .................. RC–N .......................... 11.a.(3)(b)(1) ............. Revolving, open-end loans secured by 1–4 family residential properties and extended under lines of credit (Columns A through C). Secured by first liens (Columns A through C) .......................... RC–N .......................... 11.a.(3)(b)(2) ............. Secured by junior liens (Columns A through C) ....................... RC–N .......................... 11.a.(4) ...................... RC–N .......................... 11.a.(5)(a) .................. Secured by multifamily (5 or more) residential properties (Columns A through C). Loans secured by owner-occupied nonfarm nonresidential properties (Columns A through C). VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00152 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RCON8745, RCON8746, RCON8747, RCON8748. RCONG418, RCONG419, RCONG420, RCONG421, RCONG422. RCONG423, RCONG424, RCONG425, RCONG426, RCONG427. RCONG428, RCONG429, RCONG430, RCONG431, RCONG432. RCONG433, RCONG434, RCONG435, RCONG436, RCONG437. RCONG438, RCONG439, RCONG440, RCONG441, RCONG442. RCONG443, RCONG444, RCONG445, RCONG446, RCONG447. RCONG448, RCONG449, RCONG450, RCONG451, RCONG452. RCONG453, RCONG454, RCONG455, RCONG456, RCONG457. RCONG458, RCONG459, RCONG460, RCONG461, RCONG462. RCONK169. RCONK170. RCONK171. RCONK172. RCONK173. RCONK174. RCONK175. RCONK176. RCONK177. RCONK179. RCONK180. RCONK181. RCONK182. RCONK183. RCONK187. RCONK188. RCONK189. RCONK190. RCONK191. RCONJ461. RCONJ462. RCON5389, RCON5390, RCON5391. RCONK045, RCONK046, RCONK047. RCONK048, RCONK049, RCONK050. RCONK051, RCONK052, RCONK053. RCONK054, RCONK055, RCONK056. RCONK057, RCONK058, RCONK059. RCONK060, RCONK061, RCONK062. RCONK063, RCONK064, RCONK065. RCONK066, RCONK067, RCONK068. 2461 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Schedule Item Item name RC–N .......................... 11.a.(5)(b) .................. RC–N .......................... 11.c ............................ Loans secured by other nonfarm nonresidential properties (Columns A through C). Commercial and industrial loans (Columns A through C) ........ RC–N .......................... 11.d.(1) ...................... Credit cards (Columns A through C) ........................................ RC–N .......................... 11.d.(2) ...................... Automobile loans (Columns A through C) ................................ RC–N .......................... 11.d.(3) ...................... RC–N .......................... 11.e ........................... Other (includes revolving credit plans other than credit cards and other consumer loans) (Columns A through C). All other loans and all leases (Columns A through C) ............. RC–N .......................... M1.e.(1) ..................... To U.S. addressees (domicile) (Columns A through C) ........... RC–N .......................... M1.e.(2) ..................... To non-U.S. addressees (domicile) (Columns A through C) .... RC–N .......................... M3.a .......................... RC–N .......................... M3.b .......................... RC–N .......................... M3.c ........................... RC–N .......................... M3.d .......................... RC–N .......................... M5.b.(1) ..................... RC–N .......................... M5.b.(2) ..................... RC–N .......................... M6 ............................. RC–O ......................... M2 * ........................... RC–O RC–O RC–O RC–O RC–O RC–O ......................... ......................... ......................... ......................... ......................... ......................... M6.a * M6.b * M6.c * M6.d * M7.a * M7.b * ........................ ........................ ......................... ........................ ........................ ........................ RC–O RC–O RC–O RC–O ......................... ......................... ......................... ......................... M8.a * M8.b * M9.a * M9.b * ........................ ........................ ........................ ........................ Loans secured by real estate to non-U.S. addressees (domicile) (included in Schedule RC–N, item 1) (Columns A through C). Loans to and acceptances of foreign banks (included in Schedule RC–N, item 2) (Columns A through C). Commercial and industrial loans to non-U.S. addressees (domicile) (included in Schedule RC–N, item 4) (Columns A through C). Leases to individuals for household, family, and other personal expenditures (included in Schedule RC–N, item 8) (Columns A through C). Loans measured at fair value: Fair value (Columns A through C). Loans measured at fair value: Unpaid principal balance (Columns A through C). Derivative contracts: Fair value of amounts carried as assets (Columns A and B). Estimated amount of uninsured deposits, including related interest accrued and unpaid. Special mention ......................................................................... Substandard .............................................................................. Doubtful ..................................................................................... Loss ........................................................................................... Nontraditional 1–4 family residential mortgage loans ............... Securitizations of nontraditional 1–4 family residential mortgage loans. Higher-risk consumer loans ...................................................... Securitizations of higher-risk consumer loans .......................... Higher-risk commercial and industrial loans and securities ..... Securitizations of higher-risk commercial and industrial loans and securities. Total unfunded commitments .................................................... Portion of unfunded commitments guaranteed or insured by the U.S. government (including the FDIC). Amount of other real estate owned recoverable from the U.S. government under guarantee or insurance provisions (excluding FDIC loss-sharing agreements). Nonbrokered time deposits of more than $250,000 (included in Schedule RC–E, Memorandum item 2.d). Construction, land development, and other land loans secured by real estate. Loans secured by multifamily residential and nonfarm nonresidential properties. Closed-end loans secured by first liens on 1–4 family residential properties. Closed-end loans secured by junior liens on 1–4 family residential properties and revolving, open-end loans secured by 1–4 family residential properties and extended under lines of credit. Commercial and industrial loans ............................................... Credit card loans to individuals for household, family, and other personal expenditures. All other loans to individuals for household, family, and other personal expenditures. Non-agency residential mortgage-backed securities ................ Amount of the institution’s largest counterparty exposure ....... Total amount of the institution’s 20 largest counterparty exposures. M10.a * ...................... M10.b * ...................... RC–O ......................... M11 * ......................... RC–O ......................... M12 * ......................... RC–O ......................... M13.a * ...................... RC–O ......................... M13.b * ...................... RC–O ......................... M13.c * ....................... RC–O ......................... sradovich on DSK3GMQ082PROD with NOTICES RC–O ......................... RC–O ......................... M13.d * ...................... RC–O ......................... RC–O ......................... M13.e * ...................... M13.f * ....................... RC–O ......................... M13.g * ...................... RC–O ......................... RC–O ......................... RC–O ......................... M13.h * ...................... M14 * ......................... M15 * ......................... VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00153 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RCONK069, RCONK070, RCONK071. RCONK075, RCONK076, RCONK077. RCONK078, RCONK079, RCONK080. RCONK081, RCONK082, RCONK083. RCONK084, RCONK085, RCONK086. RCONK087, RCONK088, RCONK089. RCONK120, RCONK121, RCONK122. RCONK123, RCONK124, RCONK125. RCON1248, RCON1249, RCON1250. RCON5380, RCON5381, RCON5382. RCON1254, RCON1255, RCON1256. RCONF166, RCONF167, RCONF168. RCONF664, RCONF665, RCONF666. RCONF667, RCONF668, RCONF669. RCON3529, RCON3530. RCON5597. RCONK663. RCONK664. RCONK665. RCONK666. RCONN025. RCONN026. RCONN027. RCONN028. RCONN029. RCONN030. RCONK676. RCONK677. RCONK669. RCONK678. RCONN177. RCONN178. RCONN179. RCONN180. RCONN181. RCONN182. RCONN183. RCONM963. RCONK673. RCONK674. 2462 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Item Item name RC–O ......................... M16 * ......................... RC–O ......................... M17.a * ...................... RC–O ......................... M17.b * ...................... RC–O ......................... M17.c * ....................... RC–O ......................... M17.d * ...................... RC–O ......................... M18.a * ...................... Portion of loans restructured in troubled debt restructurings that are in compliance with their modified terms and are guaranteed or insured by the U.S. government (including the FDIC) (included in Schedule RC–C, part I, Memorandum item 1). Total deposit liabilities before exclusions (gross) as defined in Section 3(l) of the Federal Deposit Insurance Act and FDIC regulations. Total allowable exclusions, including interest accrued and unpaid on allowable exclusions. Unsecured ‘‘Other borrowings’’ with a remaining maturity of one year or less. Estimated amount of uninsured deposits, including related interest accrued and unpaid. ‘‘Nontraditional 1–4 family residential mortgage loans’’ as defined for assessment purposes only in FDIC regulations (Columns A through O). RC–O ......................... M18.b * ...................... Closed-end loans secured by first liens on 1–4 family residential properties (Columns A through O). RC–O ......................... M18.c * ....................... Closed-end loans secured by junior liens on 1–4 family residential properties (Columns A through O). RC–O ......................... M18.d * ...................... Revolving, open-end loans secured by 1–4 family residential properties and extended under lines of credit (Columns A through O). RC–O ......................... M18.e * ...................... Credit cards (Columns A through O) ........................................ RC–O ......................... M18.f * ....................... Automobile loans (Columns A through O) ................................ RC–O ......................... sradovich on DSK3GMQ082PROD with NOTICES Schedule M18.g * ...................... Student loans (Columns A through O) ..................................... VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00154 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM MDRM No. 09JAN1 RCONL189. RCONL194. RCONL195. RCONL196. RCONL197. RCONM964, RCONM965, RCONM966, RCONM967, RCONM968, RCONM969, RCONM970, RCONM971, RCONM972, RCONM973, RCONM974, RCONM975, RCONM976, RCONM977, RCONM978. RCONM979, RCONM980, RCONM981, RCONM982, RCONM983, RCONM984, RCONM985, RCONM986, RCONM987, RCONM988, RCONM989, RCONM990, RCONM991, RCONM992, RCONM993. RCONM994, RCONM995, RCONM996, RCONM997, RCONM998, RCONM999, RCONN001, RCONN002, RCONN003, RCONN004, RCONN005, RCONN006, RCONN007, RCONN008, RCONN009. RCONN010, RCONN011, RCONN012, RCONN013, RCONN014, RCONN015, RCONN016, RCONN017, RCONN018, RCONN019, RCONN020, RCONN021, RCONN022, RCONN023, RCONN024. RCONN040, RCONN041, RCONN042, RCONN043, RCONN044, RCONN045, RCONN046, RCONN047, RCONN048, RCONN049, RCONN050, RCONN051, RCONN052, RCONN053, RCONN054. RCONN055, RCONN056, RCONN057, RCONN058, RCONN059, RCONN060, RCONN061, RCONN062, RCONN063, RCONN064, RCONN065, RCONN066, RCONN067, RCONN068, RCONN069. RCONN070, RCONN071, RCONN072, RCONN073, RCONN074, RCONN075, RCONN076, RCONN077, RCONN078, RCONN079, RCONN080, RCONN081, RCONN082, RCONN083, RCONN084. 2463 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Schedule Item Item name MDRM No. RC–O ......................... M18.h * ...................... Other consumer loans and revolving credit plans other than credit cards (Columns A through O). RC–O ......................... M18.i * ........................ Consumer leases (Columns A through O) ............................... RC–O ......................... M18.j * ........................ Total (Columns A through N) .................................................... RCONN085, RCONN086, RCONN087, RCONN088, RCONN089, RCONN090, RCONN091, RCONN092, RCONN093, RCONN094, RCONN095, RCONN096, RCONN097, RCONN098, RCONN099. RCONN100, RCONN101, RCONN102, RCONN103, RCONN104, RCONN105, RCONN106, RCONN107, RCONN108, RCONN109, RCONN110, RCONN111, RCONN112, RCONN113, RCONN114. RCONN115, RCONN116, RCONN117, RCONN118, RCONN119, RCONN120, RCONN121, RCONN122, RCONN123, RCONN124, RCONN125, RCONN126, RCONN127, RCONN128. Data Items With a Change in Frequency of Collection SEMIANNUAL REPORTING [June and December] Item Item name RC–B ..................... M6.a through M6.g ............ Structured financial products by underlying collateral or reference assets (Columns A through D). RC–C, Part I .......... M4 ..................................... RC–F ...................... 6.a through 6.i ................... RC–G ..................... 4.a through 4.g .................. RC–L ...................... 9.c through 9.f ................... RC–L ...................... sradovich on DSK3GMQ082PROD with NOTICES Schedule 10.b through 10.e .............. RC–N ..................... M5.a .................................. Adjustable-rate closed-end loans secured by first liens on 1–4 family residential properties (included in Schedule RC–C, Part I, item 1.c.(2)(a), column B). All other assets: Itemized items greater than $100,000 that exceed 25 percent of this item. All other liabilities: Itemized items greater than $100,000 that exceed 25 percent of this item. All other off-balance sheet liabilities (exclude derivatives): Itemized items over 25 percent of Schedule RC, item 27.a. ‘‘Total bank equity capital’’. All other off-balance sheet assets (exclude derivatives): Itemized items over 25 percent of Schedule RC, item 27.a. ‘‘Total bank equity capital’’. Loans and leases held for sale (Columns A through C). VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00155 Fmt 4703 Sfmt 4703 MDRM No. RCONG348, RCONG349, RCONG350, RCONG352, RCONG353, RCONG355, RCONG356, RCONG358, RCONG359, RCONG361, RCONG362, RCONG364, RCONG365, RCONG367, RCONG368, RCONG370, RCONG371, RCONG373, RCONG374, RCONG375 RCON5370 RCONG351, RCONG354, RCONG357, RCONG360, RCONG363, RCONG366, RCONG369, RCONG372, RCON2166, RCON1578, RCONC010, RCONC436, RCONJ448, RCON3549, RCON3550, RCON3551 RCON3066, RCONC011, RCON2932, RCONC012, RCON3552, RCON3553, RCON3554 RCONC978, RCON3555, RCON3556, RCON3557 RCONC5592, RCON5593, RCON5594, RCON5595 RCONC240, RCONC241, RCONC226 E:\FR\FM\09JAN1.SGM 09JAN1 2464 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices ANNUAL REPORTING [December] Schedule Item RI ....................................... M12 RC–C, Part I ...................... M8.b RC–C, Part I ...................... M8.c RC–M ................................. 6 RC–M ................................. 7 RC–M ................................. 9 RC–M ................................. 11 RC–M ................................. 12 RC–M ................................. RC–M ................................. Item name 14.a 14.b MDRM No. Noncash income from negative amortization on closed-end loans secured by 1– 4 family residential properties (included in Schedule RI, item 1.a.(1)(a)). Total maximum remaining amount of negative amortization contractually permitted on closed-end loans secured by 1–4 family residential properties. Total amount of negative amortization on closed-end loans secured by 1–4 family residential properties included in the amount reported in Memorandum item 8.a. Does the reporting bank sell private label or third-party mutual funds and annuities? Assets under the reporting bank’s management in proprietary mutual funds and annuities. Do any of the bank’s Internet websites have transactional capability, i.e., allow the bank’s customers to execute transactions on their accounts through the website? Does the bank act as trustee or custodian for Individual Retirement Accounts, Health Savings Accounts, and other similar accounts? Does the bank provide custody, safekeeping, or other services involving the acceptance of order for the sale or purchase of securities? Total assets of captive insurance subsidiaries ....................................................... Total assets of captive reinsurance subsidiaries ................................................... RIADF228 RCONF231 RCONF232 RCONB569 RCONB570 RCON4088 RCONG463 RCONG464 RCONK193 RCONK194 DATA ITEMS MOVED TO SCHEDULE SU—SUPPLEMENTAL INFORMATION Schedule Item RI ....................................... RI ....................................... RI–B, Part I ........................ M13.a M13.b M4 RI–B, Part II ....................... M2 RI–B, Part II ....................... M3 RC–C, Part I ...................... M6 RC–L .................................. RC–L .................................. 13 14 RC–M ................................. 13.b.(7) RC–N ................................. 11.f RC–S ................................. Item name M4 MDRM No. Net gains (losses) on assets .................................................................................. Net gains (losses) on liabilities ............................................................................... Uncollectible retail credit card fees and finance charges reversed against income (i.e., not included in charge-offs against the allowance for loan and lease losses). Separate valuation allowance for uncollectible retail credit card fees and finance charges. Amount of allowance for loan and lease losses attributable to retail credit card fees and finance charges. Outstanding credit card fees and finance charges included in Schedule RC–C, part I, item 6.a. Total gross notional amount of derivative contracts held for trading (Column A) Total gross notional amount of derivative contracts held for purposes other than trading (Columns A). Portion of covered other real estate owned included in items 13.b.(1) through (5) that is protected by FDIC loss-sharing agreements. Portion of covered loans and leases included in items 11.a through 11.e that is protected by FDIC loss-sharing agreements (Columns A through C). Outstanding fees and credit card charges included in Schedule RC–S, item 1, column C. RIADF551 RIADF553 RIADC388 RIADC389 RIADC390 RCONC391 RCONA126 RCON8725 RCONK192 RCONK102, RCONK103, RCONK104 RCONC407 Appendix C FFIEC 031 for March 31, 2017: Data Items Removed or Change in Reporting Threshold DATA ITEMS REMOVED Schedule Item 2.a RI–B, Part I ........................ sradovich on DSK3GMQ082PROD with NOTICES RI–B, Part I ........................ 2.b RC–C, Part II ..................... 1 RC–C, Part II ..................... 2.a RC–C, Part II ..................... 2.b VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 Item name MDRM No. Loans to and acceptances of U.S. banks and other U.S. depository institutions (Column A and Column B). Loans to and acceptances of foreign banks (Column A and Column B) .............. Yes/No indicator whether all or substantially all of the dollar volume of ‘loans secured by nonfarm nonresidential properties’ and ‘commercial and industrial loans to U.S. addressees’ have original amounts of $100,000 or less. Total number of loans secured by nonfarm nonresidential properties currently outstanding. Total number of commercial and industrial loans to U.S. addressees currently outstanding. PO 00000 Frm 00156 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM 09JAN1 RIAD4653, RIAD4663 RIAD4654, RIAD4664 RCON6999 RCON5562 RCON5563 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices 2465 DATA ITEMS REMOVED—Continued Schedule Item RC–C, Part II ..................... 5 RC–C, Part II ..................... RC–C, Part II ..................... 6.a 6.b RC–E, Part I ...................... M6.c RC–M ................................. 13.a.(2) RC–M ................................. 13.a.(3) RC–M RC–M RC–M RC–N Item name 13.a.(4)(a) 13.a.(4)(b) 13.a.(4)(c) 11.b ................................. ................................. ................................. ................................. MDRM No. Yes/No indicator whether all or substantially all of the dollar volume of ‘Loans secured by farmland’ and ‘Loans to finance agricultural production and other loans to farmers’ have original amounts of $100,000 or less. Total number of loans secured by farmland currently outstanding ........................ Total number of loans to finance agricultural production and other loans to farmers currently outstanding. Total deposits in all other transaction accounts of individuals, partnerships, and corporations. Loans to finance agricultural production and other loans to farmers covered by loss-sharing agreements with the FDIC. Commercial and industrial loans covered by loss-sharing agreements with the FDIC. Credit card loans covered by loss-sharing agreements with the FDIC ................. Automobile loans covered by loss-sharing agreements with the FDIC ................. All other consumer loans covered by loss-sharing agreements with the FDIC ..... Loans to finance agricultural production and other loans to farmers covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.c Commercial and industrial loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.d.(1) Credit card loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.d.(2) Automobile loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.d.(3) All other consumer loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RCON6860 RCON5576 RCON5577 RCONP755 RCFDK178 RCFDK179 RCFDK180 RCFDK181 RCFDK182 RCFDK072, RCFDK073, RCFDK074 RCFDK075, RCFDK076, RCFDK077 RCFDK078, RCFDK079, RCFDK080 RCFDK081, RCFDK082, RCFDK083 RCFDK084, RCFDK085, RCFDK086 CHANGE IN REPORTING THRESHOLD [To be completed by banks with $10 billion or more in total assets] Schedule Item RI ....................................... RI ....................................... RC–E, Part II ..................... M9.a M9.b 1 RC–E, RC–E, RC–E, RC–E, ..................... ..................... ..................... ..................... 2 3 4 5 RC–E, Part II ..................... Item name 6 Part Part Part Part II II II II MDRM No. Net gains (losses) on credit derivatives held for trading ........................................ Net gains (losses) on credit derivatives held for purposes other than trading ...... Deposits of Individuals, partnerships, and corporations (include all certified and official checks). Deposits of U.S. banks and other U.S. depository institutions in foreign offices .. Deposits of foreign banks in foreign offices ........................................................... Deposits of foreign governments and official institutions in foreign offices ........... Deposits of U.S. Government and states and political subdivisions in the U.S. in foreign offices. Total deposits in foreign offices .............................................................................. RIADC889 RIADC890 RCFNB553 RCFNB554 RCFN2625 RCFN2650 RCFNB555 RCFN2200 Note: The preceding list of ‘‘Data Items Removed’’ from the FFIEC 031 excludes two Call Report data items that have been approved for removal by OMB effective March 31, 2017, in accordance with the agencies’ July 13, 2016, Federal Register notice (81 FR 45357): Schedule RI, Memorandum items 14.a and 14.b. CHANGE IN REPORTING THRESHOLD [To be completed by banks with $10 million or more in average trading assets] Schedule sradovich on DSK3GMQ082PROD with NOTICES RI RI RI RI RI ....................................... ....................................... ....................................... ....................................... ....................................... Item Item name M8.a M8.b M8.c M8.d M8.e Trading Trading Trading Trading Trading revenue revenue revenue revenue revenue from from from from from MDRM No. interest rate exposures ....................................................... foreign exchange exposures .............................................. equity security and index exposures .................................. commodity and other exposures ........................................ credit exposures ................................................................. Appendix D FFIEC 041 for March 31, 2017: Data Items Removed or Change in Reporting Threshold VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00157 Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM 09JAN1 RIAD8757 RIAD8758 RIAD8759 RIAD8760 RIADF186 2466 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices DATA ITEMS REMOVED Schedule Item RI ....................................... RI ....................................... RI–B, Part I ........................ 1.a.(4) 1.e 2 RI–B, Part I ........................ 6 RC–C, Part I ...................... RC–C, Part I ...................... 2.a.(1) 2.a.(2) RC–C, Part I ...................... RC–C, Part I ...................... 2.c.(1) 2.c.(2) RC–C, Part I ...................... 7 RC–E ................................. M6.c RC–M ................................. 13.a.(3) RC–M RC–M RC–M RC–N 13.a.(4)(a) 13.a.(4)(b) 13.a.(4)(c) 6 ................................. ................................. ................................. ................................. Item name MDRM No. Interest on loans to foreign governments and official institutions .......................... Interest income from trading assets ....................................................................... Loans to depository institutions and acceptances of other banks (Column A through Column B). Loans to foreign governments and official institutions (Column A through Column B). Loans to U.S. branches and agencies of foreign banks ........................................ Loans to other commercial banks in the U.S. ........................................................ Note: Items 2.a.(1) and 2.a.(2) of Schedule RC–C, Part I, will be combined into one data item for total loans to commercial banks in the U.S. Loans to foreign branches of other U.S. banks ..................................................... Loans to other banks in foreign countries .............................................................. Note: Items 2.c.(1) and 2.c.(2) of Schedule RC–C, Part I, will be combined into one data item for total loans to banks in foreign countries. Loans to foreign governments and official institutions (including foreign central banks). Total deposits in all other transaction accounts of individuals, partnerships, and corporations. Commercial and industrial loans covered by loss-sharing agreements with the FDIC. Credit card loans covered by loss-sharing agreements with the FDIC ................. Automobile loans covered by loss-sharing agreements with the FDIC ................. All other consumer loans covered by loss-sharing agreements with the FDIC ..... Loans to foreign governments and official institutions (Column A through Column C). RC–N ................................. 11.c Commercial and industrial loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.d.(1) Credit card loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.d.(2) Automobile loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. 11.d.(3) All other consumer loans covered by loss-sharing agreements with the FDIC (Column A through Column C). RC–N ................................. M6 Derivative contracts: Fair value of amounts carried as assets (Column A through Column B). RIAD4056 RIAD4069 RIAD4481, RIAD4482 RIAD4643, RIAD4627 RCONB532 RCONB533 RCONB536 RCONB537 RCON2081 RCONP755 RCONK179 RCONK180 RCONK181 RCONK182 RCON5389, RCON5390, RCON5391 RCONK075, RCONK076, RCONK077 RCONK078, RCONK079, RCONK080 RCONK081, RCONK082, RCONK083 RCONK084, RCONK085, RCONK086 RCON3529, RCON3530 Note: The preceding list of ‘‘Data Items Removed’’ from the FFIEC 041 excludes two Call Report data items that have been approved for removal by OMB effective March 31, 2017, in accordance with the agencies’ July 13, 2016, Federal Register notice (81 FR 45357): Schedule RI, Memorandum items 14.a and 14.b. CHANGE IN REPORTING THRESHOLD [To be completed by banks with $10 billion or more in total assets] Schedule RI ....................................... RI ....................................... Item M9.a M9.b MDRM number Item name Net gains (losses) on credit derivatives held for trading ........................................ Net gains (losses) on credit derivatives held for purposes other than trading ...... RIADC889 RIADC890 CHANGE IN REPORTING THRESHOLD [To be completed by banks with $10 million or more in average trading assets] sradovich on DSK3GMQ082PROD with NOTICES Schedule RI RI RI RI RI ....................................... ....................................... ....................................... ....................................... ....................................... VerDate Sep<11>2014 Item M8.a M8.b M8.c M8.d M8.e 22:01 Jan 06, 2017 Jkt 241001 MDRM number Item name Trading Trading Trading Trading Trading PO 00000 revenue revenue revenue revenue revenue Frm 00158 from from from from from interest rate exposures ....................................................... foreign exchange exposures .............................................. equity security and index exposures .................................. commodity and other exposures ........................................ credit exposures ................................................................. Fmt 4703 Sfmt 4703 E:\FR\FM\09JAN1.SGM 09JAN1 RIAD8757 RIAD8758 RIAD8759 RIAD8760 RIADF186 Federal Register / Vol. 82, No. 5 / Monday, January 9, 2017 / Notices Dated: December 30, 2016. Karen Solomon, Deputy Chief Counsel, Office of the Comptroller of the Currency. Board of Governors of the Federal Reserve System, January 3, 2017. Robert deV. Frierson, Secretary of the Board. Dated at Washington, DC, this 3rd day of January, 2017. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 2017–00085 Filed 1–6–17; 8:45 am] sradovich on DSK3GMQ082PROD with NOTICES BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P VerDate Sep<11>2014 21:14 Jan 06, 2017 Jkt 241001 PO 00000 Frm 00159 Fmt 4703 Sfmt 9990 E:\FR\FM\09JAN1.SGM 09JAN1 2467

Agencies

[Federal Register Volume 82, Number 5 (Monday, January 9, 2017)]
[Notices]
[Pages 2444-2467]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00085]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION

Agency Information Collection Activities: Submission for OMB
Review; Joint Comment Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury;
Board of Governors of the Federal Reserve System (Board); and Federal
Deposit Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Paperwork Reduction
Act (PRA) of 1995, the OCC, the Board, and the FDIC (the ``agencies'')
may not conduct or sponsor, and the respondent is not required to
respond to, an information collection unless it displays a currently
valid Office of Management and Budget (OMB) control number. On August
15, 2016, the agencies, under the auspices of the Federal Financial
Institutions Examination Council (FFIEC), requested public comment for
60 days on a proposal for a new Consolidated Reports of Condition and
Income for Eligible Small Institutions (FFIEC 051). The proposed FFIEC
051 is a streamlined version of the existing Consolidated Reports of
Condition and Income for a Bank with Domestic Offices Only (FFIEC 041),
which was created by (1) removing certain existing schedules and data
items and replacing them with a limited number of data items in a new
supplemental schedule, (2) eliminating certain other existing data
items, and (3) reducing the reporting frequency of certain data items.
The FFIEC 051 generally would be available to institutions with
domestic offices only and assets of less than $1 billion, which
currently file the FFIEC 041. Of the nearly 6,000 insured depository
institutions, approximately 5,200 would be eligible to file the
proposed FFIEC 051. When compared to the existing FFIEC 041, the
proposed FFIEC 051 shows a reduction in the number of pages from 85 to
61. This decrease is the result of the removal of approximately 950 or
about 40 percent of the nearly 2,400 data items in the FFIEC 041. Of
the data items remaining from the FFIEC 041, the agencies have reduced
the reporting frequency for approximately 100 data items in the
proposed FFIEC 051. In addition, the FFIEC and the agencies requested
public comment on proposed revisions to the FFIEC 041 and the
Consolidated Reports of Condition and Income for a Bank with Domestic
and Foreign Offices (FFIEC 031), which are currently approved
collections of information. The Consolidated Reports of Condition and
Income are commonly referred to as the Call Report.
The comment period for the August 2016 notice ended on October 14,
2016. As described in the Supplementary Information section, after
considering the comments received on the proposals, the FFIEC and the
agencies will proceed with the implementation of the proposed FFIEC
051, along with the proposed reporting revisions to the FFIEC 041 and
FFIEC 031, with some modifications to the proposals for all three
versions of the Call Report. With OMB approval, the proposed FFIEC 051
and the proposed reporting changes to the existing FFIEC 031 and FFIEC
041 would become effective as of March 31, 2017.
The agencies also are giving notice that they have sent the
collection to OMB for review.

DATES: Comments must be submitted on or before February 8, 2017.

ADDRESSES: Interested parties are invited to submit written comments to
any or all of the agencies. All comments, which should refer to the OMB
control number(s), will be shared among the agencies.
OCC: Because paper mail in the Washington, DC, area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible, to prainfo@occ.treas.gov. Comments may be sent to:
Legislative and Regulatory Activities Division, Office of the
Comptroller of the Currency, Attention: ``1557-0081, FFIEC 031, 041,
and 051,'' 400 7th Street SW., Suite 3E-218, Mail Stop 9W-11,
Washington, DC 20219. In addition, comments may be sent by fax to (571)
465-4326. You may personally inspect and photocopy comments at the OCC,
400 7th Street SW., Washington, DC 20219. For security reasons, the OCC
requires that visitors make an appointment to inspect comments. You may
do so by calling (202) 649-6700 or, for persons who are deaf or hard of
hearing, TTY, (202) 649-5597. Upon arrival, visitors will be required
to present valid government-issued photo identification and submit to
security screening in order to inspect and photocopy comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
Board: You may submit comments, which should refer to ``FFIEC 031,
FFIEC 041, and FFIEC 051,'' by any of the following methods:
Agency Web site: https://www.federalreserve.gov. Follow the
instructions for submitting comments at: https://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: regs.comments@federalreserve.gov. Include the
reporting form numbers in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Robert DeV. Frierson, Secretary, Board of Governors
of the Federal Reserve System, 20th Street and Constitution Avenue NW.,
Washington, DC 20551.
All public comments are available from the Board's Web site at

[[Page 2445]]

www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted,
unless modified for technical reasons. Accordingly, your comments will
not be edited to remove any identifying or contact information. Public
comments may also be viewed electronically or in paper in Room MP-500
of the Board's Martin Building (20th and C Streets NW.) between 9:00
a.m. and 5:00 p.m. on weekdays.
FDIC: You may submit comments, which should refer to ``FFIEC 031,
FFIEC 041, and FFIEC 051,'' by any of the following methods:
Agency Web site: https://www.fdic.gov/regulations/laws/federal/. Follow the instructions for submitting comments on the FDIC's
Web site.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Email: comments@FDIC.gov. Include ``FFIEC 031, FFIEC 041,
and FFIEC 051'' in the subject line of the message.
Mail: Manuel E. Cabeza, Counsel, Attn: Comments, Room MB-
3007, Federal Deposit Insurance Corporation, 550 17th Street NW.,
Washington, DC 20429.
Hand Delivery: Comments may be hand delivered to the guard
station at the rear of the 550 17th Street Building (located on F
Street) on business days between 7:00 a.m. and 5:00 p.m.
Public Inspection: All comments received will be posted without
change to https://www.fdic.gov/regulations/laws/federal/ including any
personal information provided. Paper copies of public comments may be
requested from the FDIC Public Information Center by telephone at (877)
275-3342 or (703) 562-2200.
Additionally, commenters may send a copy of their comments to the
OMB desk officer for the agencies by mail to the Office of Information
and Regulatory Affairs, U.S. Office of Management and Budget, New
Executive Office Building, Room 10235, 725 17th Street NW., Washington,
DC 20503; by fax to (202) 395-6974; or by email to
oira_submission@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT: For further information about the
proposed revisions to the Call Report described in this notice, please
contact any of the agency staff whose names follow. In addition, copies
of the FFIEC 031 and FFIEC 041 Call Report forms and the proposed FFIEC
051 report form can be obtained at the FFIEC's Web site (https://www.ffiec.gov/ffiec_report_forms.htm).
OCC: Kevin Korzeniewski, Counsel, (202) 649-5490 or, for persons
who are deaf or hard of hearing, TTY, (202) 649-5597, Legislative and
Regulatory Activities Division, Office of the Comptroller of the
Currency, 400 7th Street SW., Washington, DC 20219.
Board: Nuha Elmaghrabi, Federal Reserve Board Clearance Officer,
(202) 452-3884, Office of the Chief Data Officer, Board of Governors of
the Federal Reserve System, 20th and C Streets NW., Washington, DC
20551. Telecommunications Device for the Deaf (TDD) users may call
(202) 263-4869.
FDIC: Manuel E. Cabeza, Counsel, (202) 898-3767, Legal Division,
Federal Deposit Insurance Corporation, 550 17th Street NW., Room MB-
3007, Washington, DC 20429.

SUPPLEMENTARY INFORMATION: The agencies are proposing to create a new
Call Report for eligible small institutions, the foundation for which
is a currently approved collection of information for each agency. In
addition, the agencies are proposing revisions to data items reported
on the FFIEC 041 and FFIEC 031 Call Reports.
Report Title: Consolidated Reports of Condition and Income (Call
Report).
Form Numbers: FFIEC 051 (proposed for eligible small institutions),
FFIEC 041 (for banks and savings associations with domestic offices
only), and FFIEC 031 (for banks and savings associations with domestic
and foreign offices).
Frequency of Response: Quarterly.
Affected Public: Business or other for-profit.
Type of Review: Revision and extension of currently approved
collections.
OCC
OMB Control No.: 1557-0081.
Estimated Number of Respondents: 1,383 national banks and federal
savings associations.
Estimated Average Burden per Response: 50.03 burden hours per
quarter to file.
Estimated Total Annual Burden: 276,766 burden hours to file.
Board
OMB Control No.: 7100-0036.
Estimated Number of Respondents: 825 state member banks.
Estimated Average Burden per Response: 54.00 burden hours per
quarter to file.
Estimated Total Annual Burden: 178,200 burden hours to file.
FDIC
OMB Control No.: 3064-0052.
Estimated Number of Respondents: 3,824 insured state nonmember
banks and state savings associations.
Estimated Average Burden per Response: 48.08 burden hours per
quarter to file.
Estimated Total Annual Burden: 735,432 burden hours to file.
The estimated average burden hours collectively reflect the
estimates for the FFIEC 031, the FFIEC 041, and the proposed FFIEC 051
reports. When the estimates are calculated by type of report across the
agencies, the estimated average burden hours per quarter are 128.05
(FFIEC 031), 74.88 (FFIEC 041) and 44.94 (FFIEC 051). Furthermore, the
estimated burden per response for the quarterly filings of the Call
Report is an average that varies by agency because of differences in
the composition of the institutions under each agency's supervision
(e.g., size distribution of institutions, types of activities in which
they are engaged, and existence of foreign offices).
The agencies received ten comments on the burden estimates. One
commenter recommended including time to review instructions for the
applicable form, even if data items in that form are not applicable to
the institution. The agencies also received comments from institutions
with estimates of the time it takes their institutions to prepare the
current FFIEC 041 Call Report. The majority of these estimates ranged
from 40-80 hours per quarter, with one response of 268 hours per
quarter. Three commenters stated that preparing the Call Report costs
approximately $1,000 annually for software. In response to the comments
on methodology, the agencies have revised their calculation for their
burden estimates. In addition to the estimated time for gathering and
maintaining data in the required form and completing those Call Report
data items for which an institution has a reportable (nonzero) amount,
which have been included in the agencies' burden estimates, the revised
methodology incorporates time for reviewing instructions for all items,
even if the institution determines it does not have a reportable
amount. The agencies have also added estimated burden hours for
verifying the accuracy of amounts reported in the Call Report. As
stated earlier, the agencies are also separating the estimated burden
by type of report, to highlight the estimated burden reduction between
the FFIEC 041 and FFIEC 051 reports. While the agencies' burden
estimates are on the lower end of the ranges provided by commenters,
these estimates are based on average times to complete each data item
factoring in the varying levels of automation versus manual
interventions

[[Page 2446]]

that exist across institutions for every data item.
One commenter estimated that the incremental burden associated with
the one-time conversion from the FFIEC 041 to the FFIEC 051 would be
approximately 160 hours, primarily for training, and approximately $350
for software. Due to the various factors that could affect the time and
cost of switching to the FFIEC 051, including training needs, the type
of existing systems and automation at an institution, and any cost from
software vendors to enable an institution to file the new form, the
agencies have not provided an estimate of this conversion burden. The
agencies reiterate that adopting the FFIEC 051 form is optional, and
each institution should weigh the estimated time savings from using
that form with the one-time burden to switch to the FFIEC 051 from the
FFIEC 041.

General Description of Reports

Institutions submit Call Report data to the agencies each quarter
for the agencies' use in monitoring the condition, performance, and
risk profile of individual institutions and the industry as a whole.
Call Report data serve a regulatory or public policy purpose by
assisting the agencies in fulfilling their missions of ensuring the
safety and soundness of financial institutions and the financial system
and protecting consumer financial rights. The data also serve public
policy purposes associated with agency-specific missions affecting
national and state-chartered institutions, e.g., monetary policy,
financial stability, and deposit insurance. Call Reports are the source
of the most current statistical data available for identifying areas of
focus for on-site and off-site examinations. The agencies use Call
Report data in evaluating institutions' corporate applications,
including, in particular, interstate merger and acquisition
applications for which, as required by law, the agencies must determine
whether the resulting institution would control more than 10 percent of
the total amount of deposits of insured depository institutions in the
United States. Call Report data also are used to calculate
institutions' deposit insurance and Financing Corporation assessments
and national banks' and federal savings associations' semiannual
assessment fees.
These information collections are mandatory: 12 U.S.C. 161 (for
national banks), 12 U.S.C. 324 (for state member banks), 12 U.S.C. 1817
(for insured state nonmember commercial and savings banks), and 12
U.S.C. 1464 (for federal and state savings associations). At present,
except for selected data items and text, these information collections
are not given confidential treatment.

Current Actions

I. Introduction

On August 15, 2016, the agencies requested comment for 60 days on a
proposal for a new Consolidated Reports of Condition and Income for
Eligible Small Institutions (FFIEC 051) along with various proposed
revisions to the existing Call Report requirements (FFIEC 031 and FFIEC
041).\1\ The FFIEC 051 was created by removing items or reducing the
frequency of items reported in the FFIEC 041, as detailed in Appendix
B. The FFIEC 051 and the revisions to the FFIEC 031 and FFIEC 041 are
the result of a formal initiative launched by the FFIEC in December
2014 to identify potential opportunities to reduce burden associated
with Call Report requirements for community institutions. The most
significant actions under this initiative are community institution
outreach efforts, internal surveys of users of Call Report data at
FFIEC member entities, and the proposal for a streamlined Call Report
for small institutions. Additional information about the initiative can
be found in the August 2016 notice, along with two other notices
related to actions taken under that initiative.\2\
---------------------------------------------------------------------------

\1\ See 81 FR 54190 (August 15, 2016).
\2\ See 80 FR 56539 (September 18, 2015) and 81 FR 45357 (July
13, 2016).
---------------------------------------------------------------------------

The comment period for the August 2016 notice ended on October 14,
2016. General comments on the notice are summarized in Section II. In
Section III, the agencies provide more details on the comments received
on the FFIEC 051 and any changes the agencies are making in response to
those comments. In Section IV, the agencies address comments on the
proposed changes to the FFIEC 031 and FFIEC 041 Call Reports. In
Section V, the agencies provide information about additional specific
suggestions received from commenters to improve all versions of the
Call Report and any changes the agencies are making in response to
those comments. With OMB approval, the effective date for the initial
implementation of the FFIEC 051 and the revisions to the existing FFIEC
041 and FFIEC 031 would be March 31, 2017.

II. General Comments on the Proposal

The agencies collectively received comments on the proposal from
approximately 1,100 entities, including individuals, banking
organizations, bankers' associations, and a government entity.\3\
General comments on the proposed FFIEC 051 and existing FFIEC 031 and
FFIEC 041 Call Reports are included in this section. The agencies
provide information regarding comments on specific aspects of the
proposed FFIEC 051 and the proposed revisions to the existing Call
Reports in more detail in Sections III and IV, respectively. Additional
specific suggestions provided by commenters on the existing Call
Reports and the proposed FFIEC 051 are included in Section V.
---------------------------------------------------------------------------

\3\ The agencies received approximately 100 unique letters and
1,000 form letters.
---------------------------------------------------------------------------

A. General Comments on the Proposed FFIEC 051

Commenters expressed mixed opinions on the proposed FFIEC 051.
Approximately 25 commenters representing banking organizations,
bankers' associations, and a government entity supported the effort put
forth by the agencies. One bankers' association stated that the initial
proposal was ``a positive step in an ongoing, iterative process'' that
shows a ``modest but material burden relief to institutions eligible to
file the [FFIEC 051] report.'' One institution stated that the proposed
FFIEC 051 would assist small banks by reducing preparation time and
minimizing confusion by removing schedules related to activities in
which the bank does not engage. Another commenter stated that this
proposal was a good start by removing items that have no relationship
with the reporting institution. Another commenter agreed with the
proposal to shorten the length of the Call Report and the instructions,
which would reduce the time spent reviewing updates to determine items
that may or may not be applicable to the bank. One commenter stated the
reduction and the removal of non-relevant data items for noncomplex
institutions saves both time and money. The government entity stated it
uses certain data items in the Call Report in preparing national
economic reports, and encouraged the agencies to continue collecting
those items.
On the other hand, the majority of commenters from banking
organizations and bankers' associations responded that there was no
perceived impact by adopting the FFIEC 051. Many of the banking
organizations stated that the data items proposed to be removed were
not reported currently by their institutions; therefore, the changes
would not impact their burden in preparing the Call Report. Three of
the bankers' associations stated that the

[[Page 2447]]

agencies removed items largely not reported, and related to activities
not engaged in, by community banks. Another institution responded that
by making the change to the FFIEC 051, it would add burden at the
conversion date with little time savings in future filings. One
commenter stated that the inclusion of the supplemental schedule
(Schedule SU) could actually increase burden, as banks must use the
same processes or new processes to verify the data (or inapplicability)
of the new supplemental items.
The agencies recognize that not all community institutions eligible
to file the FFIEC 051 will see an immediate and large reduction in
burden by switching to that form. Some of the items that were removed
from the FFIEC 041 to create the FFIEC 051 only needed to be reported
by institutions with assets of $1 billion or more. Other items not
included in the FFIEC 051 applied to institutions of all sizes, but may
not have applied to every community institution, due to the nature of
each institution's activities. Approximately 100 data items would be
collected at a reduced frequency in the FFIEC 051. For example, in
creating the FFIEC 051, the agencies have removed from the FFIEC 041
the data items on Schedule RC-L, Derivatives and Off-Balance Sheet
Items, in which the more than 700 eligible institutions that have
derivative contracts have been required to report the gross positive
and negative fair values of these contracts. The agencies also have
reduced from quarterly to semiannually the reporting frequency in the
FFIEC 051 of Schedule RC-C, Part II, Loans to Small Businesses and
Small Farms, which is applicable to the approximately 5,200
institutions eligible to file the FFIEC 051,\4\ and Schedule RC-A, Cash
and Balances Due from Depository Institutions, which applies to the
more than 1,400 eligible institutions that have $300 million or more in
total assets. Additionally, as noted earlier, the agencies are
shortening the instructions associated with the FFIEC 051, so that
community bankers will not need to review as many nonapplicable
instructions, or the associated changes to those instructions that may
occur in the future. Taken together, the agencies believe these changes
are a positive step toward providing meaningful Call Report burden
relief to community institutions.
---------------------------------------------------------------------------

\4\ See Section III for further discussion of this change in
reporting frequency.
---------------------------------------------------------------------------

A majority of the commenters that did not favor the proposed FFIEC
051 suggested the agencies adopt a ``short-form'' Call Report to be
filed in the first and third quarters. The short-form Call Report
recommended by commenters would consist only of an institution's
balance sheet, income statement, and statement of changes in equity
capital. The institution would file a full Call Report including all
supporting schedules in the second and fourth quarters.
The agencies recognize that the information requested in the Call
Report is often more granular than information presented in standard
financial statements, including the notes to the financial statements,
and can require refining or subdividing the information contained in
accounts reported in an institution's general ledger system or core
processing systems. This process may be burdensome, particularly when
account balances have not materially changed from the prior quarter.
However, one element that sets banking apart from other industries is
the regulatory framework, particularly the provision of Federal deposit
insurance and the important role of financial intermediation, which
requires safety and soundness supervision and examination. A key
component of bank supervision is reviewing granular financial data
about an institution's activities to identify changes in those
activities and in the institution's condition, performance, and risk
profile from quarter to quarter that suggest areas for further
investigation by the institution's supervisory agency. For example,
granular data on loan categories, past due and nonaccrual loans, and
loan charge-offs and recoveries \5\ feed into an analysis of credit
risk, while data on loan, security, time deposit, and other borrowed
money maturities and repricing dates \6\ feed into analyses of interest
rate risk and liquidity risk. Much of this analysis occurs off-site, so
an institution may not be aware of the extent of this process unless it
identifies anomalies or other ``red flags'' at the institution. Even
then, some anomalies and other ``red flags'' may be discussed
immediately with the institution, while other concerns are flagged for
investigation at the next on-site examination. The earlier that
anomalies, upon immediate follow-up, are found to evidence deficiencies
in risk management or deterioration in an institution's condition, the
less difficult it will be for the institution to implement appropriate
corrective action. In this context, with full-scope on-site
examinations occurring no less than once during each 18-month period
for institutions that have total assets of less than $1 billion and
meet certain other criteria, quarterly data are necessary for many of
the data items in the Call Report in order for an institution's
supervisory agency to have a sufficient number of data points to both
identify and distinguish between one-time anomalies and developing
trends at the institution. Moreover, the agencies note that extending
the examination cycle to 18 months for certain qualifying institutions
is discretionary, and the analysis of trends in a particular
institution's Call Report data is a significant factor in deciding
whether to exercise that discretion with respect to that institution.
---------------------------------------------------------------------------

\5\ Reported on Schedules RI-B; RC-C, Part I; and RC-N.
\6\ Reported on Schedules RC-B; RC-C, Part I; RC-E; and RC-M.
---------------------------------------------------------------------------

In addition to supporting the identification of higher-risk
situations, enabling timely corrective action for such cases, and
justifying the extended examination cycle, the quarterly reporting of
the more granular Call Report items also aids in the identification of
low-risk areas prior to on-site examinations, allowing the agencies to
improve the allocation of their supervisory resources and increase the
efficiency of supervisory assessments, which reduces the scope of
examinations in these areas, thereby reducing regulatory burden. While
the quarterly monitoring process enabled by the more granular Call
Report items historically has focused on raising ``red flags,'' similar
emphasis has also been placed on the identification of low-risk
situations. A six-month reporting cycle for the more granular Call
Report items would hamper the agencies' ability to form timely risk
assessments and so could stymie efforts to improve the focus of on-site
examinations for low-risk institutions. In this manner, an effort to
reduce regulatory burden by lengthening the reporting cycle for the
more granular Call Report items could limit the agencies' opportunities
to reduce burden for on-site examinations.
In addition to safety and soundness data, other data items are
required quarterly due to various statutes or regulations. Leverage
ratios based on average quarterly assets and risk-based capital ratios
are necessary under the prompt corrective action framework established
under 12 U.S.C. 1831o.\7\ Data on off-balance sheet assets and
liabilities are required every quarter for which an institution submits
a balance sheet to the agencies pursuant to 12 U.S.C. 1831n.\8\
Granular data on deposit liabilities and data affecting risk
assessments for deposit insurance are

[[Page 2448]]

required four times per year under 12 U.S.C. 1817.\9\
---------------------------------------------------------------------------

\7\ Reported on Schedules RC-K and RC-R.
\8\ Reported on Schedule RC-L.
\9\ Reported on Schedules RC-E and RC-O.
---------------------------------------------------------------------------

Further, the public availability of most quarterly Call Report
information from institutions that are not publicly held is desired by
their depositors (particularly those whose deposits are not fully
insured), other creditors, investors, and other institutions. An
institution's depositors and other creditors may use quarterly Call
Report information to perform their own assessments of the condition of
the institution. Existing and potential investors may evaluate Call
Report data to assess an institution's condition and future prospects;
the absence of quarterly information could impair the institution's
ability to raise capital or could limit the liquidity of the
institution's shares for existing stockholders. Other institutions that
engage in transactions with the reporting institution may utilize Call
Report information to assess the condition of their counterparties to
these transactions. In addition, some institutions use peer analysis to
benchmark against local competitors using data obtained from their Call
Reports directly, or by using third-party vendors who often leverage
information from the agencies' repository of Call Report data. For
example, as part of their financial control structures, some
institutions analyze their allowance for loan and lease losses (ALLL)
by comparing their delinquency ratios and their ratios of ALLL to loans
and leases to peer group ranges and averages.
While the agencies understand the commenters' desire for a ``short-
form'' Call Report, for the reasons stated above, the agencies did not
adopt this suggestion. In addition to the basic financial statements,
the most streamlined quarterly report possible must also include
quarterly data required by statute or regulation, along with quarterly
data necessary for adequate supervision by the agencies. However, as
part of the continuing burden reduction efforts, the agencies will
continue to review the quarterly data collected in the proposed FFIEC
051 and existing FFIEC 031 and FFIEC 041 reports that go beyond the
statutory or regulatory requirements or essential supervisory needs.
For example, as described in Section III, the agencies are revising
Schedule RC-C, Part II, in the FFIEC 051 to reduce its reporting
frequency from quarterly to semiannual for all institutions that file
the FFIEC 051.

B. General Comments on the Call Report Initiatives

The agencies are still engaged in the statutorily mandated review
of the existing Call Report data items (Full Review).\10\ The agencies
are conducting the Full Review as a series of nine surveys of internal
users of Call Report data within the FFIEC member entities. Proposed
changes resulting from the first three surveys were included in the
August 2016 proposal, and a summary of the member entities' uses of the
data items retained in the Call Report schedules covered in these three
surveys is included as Appendix A. The agencies are analyzing the
results of four additional surveys, and still need to collect and
review data from the final two surveys to determine any future proposed
revisions to the FFIEC 031, FFIEC 041, and FFIEC 051. Burden-reducing
reporting changes to these three versions of the Call Report from the
remaining six surveys will be proposed in future Federal Register
notices with an anticipated implementation date of March 31, 2018. The
agencies described this staged approach to proposing changes to the
FFIEC 031, FFIEC 041, and FFIEC 051 resulting from the Full Review in
their August 2016 proposal, but asked whether it would be less
burdensome to delay all the changes to the Call Report until the
completion of the Full Review.
---------------------------------------------------------------------------

\10\ Section 604 of the Financial Services Regulatory Relief Act
of 2006 (12 U.S.C. 1817(a)(11)) mandates that this review occur
every five years.
---------------------------------------------------------------------------

The agencies received comments about the burden reduction
initiative and the Full Review. On the timing of future revisions, one
commenter stated that it would not matter, while another commenter
wanted the changes implemented as soon as possible. Three commenters
recommended adopting all of the changes at once. These commenters
stated it is more burdensome to deal with more frequent changes to the
Call Report, even if those changes would reduce burden. Six commenters
sought a better understanding for the agencies' use of the Call Report
data items submitted by institutions. Two bankers' associations
requested a published report of how the data are used either by
individual line item or by schedule.
The agencies are cognizant of the burden caused by frequent changes
to the Call Report, but also must consider the ongoing burden imposed
until the completion of the review by collecting data items the
agencies have agreed are no longer necessary. In an attempt to balance
those concerns, the agencies plan to propose changes related to the
user surveys in two future notices. The agencies already included the
results from the first three user surveys in the August 2016 notice.
The next notice would include changes from a second set of user surveys
and is expected to be issued in early 2017. The last notice would
include any changes from a third and final set of user surveys and is
expected to be issued in late 2017. The proposed effective date for
changes in both future notices would be March 31, 2018.
As described earlier in this section and in response to specific
comments in Sections III and V, a significant amount of the data
collected in the Call Report is used for safety and soundness purposes,
especially for quarterly off-site monitoring and reviews between on-
site examinations. Additional data items are required by statute or
regulation. A lesser number of data items are used for consumer
financial protection purposes or for specific agency missions, such as
deposit insurance and monetary policy. To provide additional detail on
the uses of Call Report schedules and data elements, the agencies are
including, in Appendix A, a summary of the FFIEC member entities' uses
of specific schedules and data items from the first three user surveys
conducted in the Full Review. The agencies plan to publish similar
summaries when proposing additional changes based on the results of the
second two sets of Full Review surveys in future notices.
Finally, while it may not directly reduce burden at this time, as
described in the August 2016 notice, the agencies will apply a set of
guiding principles in evaluating potential future additions and
revisions to the Call Report. Those principles are: (1) The data items
serve a long-term regulatory or public policy purpose by assisting the
FFIEC member entities in fulfilling their missions of ensuring the
safety and soundness of financial institutions and the financial system
and the protection of consumer financial rights, as well as agency-
specific missions affecting national and state-chartered institutions;
(2) the data items to be collected maximize practical utility and
minimize, to the extent practicable and appropriate, burden on
financial institutions; and (3) equivalent data items are not readily
available through other means. The agencies intend to apply these
principles with rigor for items proposed to be added to the Call
Reports, with the goal of minimizing future burden increases.

[[Page 2449]]

III. Specific Comments on the Proposed FFIEC 051

A. Eligibility

The agencies proposed to make the FFIEC 051 available as an option
to eligible small institutions. For purposes of the FFIEC 051 Call
Report, the agencies proposed to define ``eligible small institutions''
as institutions with total assets less than $1 billion and domestic
offices only. Total assets for eligibility would be measured as of June
30 each year to determine the institution's eligibility to file the
FFIEC 051 beginning in March of the following year. In addition, for an
institution otherwise eligible to file the FFIEC 051, the institution's
primary federal regulatory agency, jointly with the state chartering
authority, if applicable, may require the institution to file the FFIEC
041 instead based on supervisory needs. In making this determination,
the appropriate agency will consider criteria including, but not
limited to, whether the eligible institution is significantly engaged
in complex, specialized, or other higher risk activities.\11\ The
agencies anticipate making such determinations only in a limited number
of cases.
---------------------------------------------------------------------------

\11\ This proposed reservation of authority is consistent with
the reservation of authority applicable to a holding company with
consolidated total assets of less than $1 billion that would
otherwise file the Board's FR Y-9SP, Parent Company Only Financial
Statements for Small Holding Companies (OMB No. 7100-0128). See page
GEN-1 of the instructions for the FR Y-9SP.
---------------------------------------------------------------------------

The agencies received numerous comments on eligibility for the
FFIEC 051. Eight commenters supported expanding the threshold. One
commenter suggested using the FDIC's definition of a ``community bank''
(from the FDIC's Community Banking Study), which is based on deposit
and lending activity and certain other criteria rather than solely
asset size, while another commenter suggested expanding the FFIEC 051
to all institutions that do not engage in complex activities. Another
commenter suggested tying the asset threshold to the definition of
``small bank'' under the Community Reinvestment Act (currently, $1.216
billion and indexed for inflation). Two commenters recommended using a
$10 billion asset threshold, with one of those commenters suggesting
that the asset threshold be automatically adjusted for inflation in the
future.
At this time, the agencies are retaining their proposed $1 billion
asset-size threshold to be eligible for the FFIEC 051. This threshold
is consistent with one of the eligibility criteria established by
Congress for community institutions to be eligible for an 18-month
examination cycle rather than the standard 12-month cycle.\12\ The
agencies are considering other size thresholds and other eligibility
criteria, such as whether relevant criteria could be developed for
determining that an institution should be considered a ``community''
institution for Call Report purposes; however, an asset-size threshold
tied to an existing statutory basis was chosen to keep the initial
eligibility criteria simple and transparent, and avoid delaying the
proposed March 31, 2017, initial implementation date for those eligible
institutions interested in beginning to file the FFIEC 051 as of that
date while the agencies evaluate additional potential eligibility
criteria. The agencies plan to review additional data in determining
whether to propose any changes to the initial eligibility threshold in
the future. The agencies are also making one revision to the
eligibility criteria to disallow advanced approaches institutions \13\
from being eligible to use the FFIEC 051.\14\ Even though such an
institution may be under the $1 billion asset-size threshold, it is
part of a consolidated banking organization with assets greater than
$250 billion and as such the agencies do not believe such an
institution shares the same risks as eligible small institutions.
---------------------------------------------------------------------------

\12\ See 12 U.S.C. 1820(d), as amended by Section 83001 of the
Fixing America's Surface Transportation Act, Public Law 114-94, 129
Stat. 1312 (2015). The $1 billion asset-size threshold for the
proposed FFIEC 051 also is consistent with the incremental approach
taken by Congress when increasing the threshold for the Board's
Small Bank Holding Company and Savings and Loan Holding Company
Policy Statement; see Public Law 113-250 (December 18, 2014).
\13\ See 12 CFR 3.100(b) (OCC); 12 CFR 217.100(b) (Board); 12
CFR 324.100(b) (FDIC).
\14\ As a consequence, the data items in Schedule RC-R that are
applicable only to advanced-approaches institutions would be removed
from the FFIEC 051.
---------------------------------------------------------------------------

The agencies also asked whether filing the FFIEC 051 by eligible
institutions should be mandatory or optional. Six commenters supported
allowing the FFIEC 051 to be optional. The agencies agree with the
commenters and will continue to offer it as an option to eligible small
institutions that would otherwise need to file the FFIEC 041. If an
institution is eligible for and chooses to adopt the FFIEC 051, the
agencies expect the institution will continue filing that version of
the report going forward as long as it remains eligible.\15\ If an
institution's assets increase to $1 billion or more as of June 30 of
any calendar year, the institution must return to filing the FFIEC 041
beginning with the first quarter of the following calendar year.
---------------------------------------------------------------------------

\15\ An institution whose assets remain below $1 billion as of
June 30 of any year may choose to file the FFIEC 041 instead of the
FFIEC 051 beginning with the first quarter of the following calendar
year. An institution's primary federal supervisory agency may
approve an institution's request to change to the FFIEC 041 in a
later quarter of a calendar year on a case-by-case basis.
---------------------------------------------------------------------------

The agencies received three comments on the proposed reservation of
authority for filing the FFIEC 051. Two commenters opposed this
reservation of authority, stating that the language was too broad and
would allow too much discretion to examiners to arbitrarily make
institutions change their version of the Call Report. One of these
commenters suggested a process where any determination by an examiner
that an institution must revert to the FFIEC 041 should be
automatically appealable to the agency's Ombudsman. The other commenter
recommended more clearly defining and limiting the scenarios in which
the agencies would consider making an institution revert to filing the
FFIEC 041. The agencies acknowledge the criteria to use the reservation
of authority listed in the notice could be interpreted more broadly
than the agencies intended. The agencies would consider using the
reservation of authority if an institution has a large amount of
activity in one or more complex activities that would be reported on
one of the schedules or items proposed to be eliminated in the FFIEC
051. These schedules include Schedules RC-D (trading activity), RC-L
(off-balance sheet derivatives), RC-P (mortgage banking), RC-Q (fair
value measurements), RC-S (servicing, securitization, and asset sale
activities), and RC-V (variable interest entities). The agencies do not
intend to use this reservation of authority widely, or to apply it to
institutions that engage only in activities that are fully reported on
the FFIEC 051. Furthermore, the exercise of the reservation of
authority would require a decision by a member of the appropriate
agency's senior management and would not be at the discretion of
examination staff.

B. Implementation Date

The agencies proposed implementing the FFIEC 051 beginning March
31, 2017, for all eligible small institutions. Nine commenters
indicated the lead time was sufficient because most of the changes
between the FFIEC 041 and FFIEC 051 did not affect their institutions.
Three commenters suggested delaying the implementation date. One
commenter suggested setting

[[Page 2450]]

the date at least six months from the start of the quarter in which the
final changes are published. Another commenter stated a minimum of one
quarter is needed after the final FFIEC 051 is approved. One
institution suggested a June 30, 2017, implementation date.
The agencies believe that it is important to offer this new report
form as an option as early as feasibly possible, to reduce burden for
those eligible institutions that are able to switch to the FFIEC 051
beginning with the March 31, 2017, report date. The conversion to the
FFIEC 051 is optional, and initial eligibility would be determined by
an institution's asset size as of June 30, 2016. For an institution
that qualifies to use the FFIEC 051 and desires to use that form, but
is unable to do so for the March 31, 2017, report date, the institution
may begin reporting on the FFIEC 051 as of the June 30, 2017, report
date or in a subsequent quarter of 2017. Alternatively, the institution
could wait until March 31, 2018, to begin reporting on the FFIEC 051,
assuming it continues to meet the eligibility criteria.

C. Comments on Schedule RC-R, Regulatory Capital

The agencies received approximately 30 comment letters that
highlighted the burden required to prepare Schedule RC-R, Regulatory
Capital. The agencies received similar comments during their banker
outreach efforts, as well as in comment letters submitted under a
review of agency regulations required by the Economic Growth and
Regulatory Paperwork Reduction Act (EGRPRA).\16\
---------------------------------------------------------------------------

\16\ Public Law 104-208 (1996), codified at 12 U.S.C. 3311.
---------------------------------------------------------------------------

An institution must calculate its capital ratios quarterly pursuant
to the prompt corrective action provisions of statute and the agencies'
regulations. The agencies revised Schedule RC-R in March 2015 to
include the data items that would be necessary for an institution to
calculate its regulatory capital ratios under the agencies' revised
capital rules. The greater detail of those rules requires a degree of
categorization, recordkeeping, and reporting that is greater than under
the previously applicable capital rules. While many of the data fields
on Schedule RC-R may not be applicable to community institutions not
engaged in complex activities, some community institutions do engage in
activities that would need to be reported in those fields to perform
the correct calculation under the capital rules. The agencies are
developing responses to the concerns about the burden of the regulatory
capital rules raised during the EGRPRA comment process and the
associated reporting requirements on Schedule RC-R. If the agencies
propose modifications to the regulatory capital rules, the agencies
would also propose modifications to the associated reporting
requirements on Schedule RC-R.

D. Comments on Schedule RC-C, Loans and Lease Financing Receivables

Twelve commenters emphasized Schedule RC-C as a significant
contributor to the reporting burden for smaller institutions. Five
banking organizations specifically highlighted Schedule RC-C, Part II,
Loans to Small Businesses and Small Farms, as particularly burdensome
and suggested eliminating the schedule or reducing the frequency of the
data collected. During the agencies' banker outreach efforts, community
institutions similarly highlighted the burden of Schedule RC-C, and
particularly Part II of the schedule.
In developing the proposed FFIEC 051, the agencies removed 38 items
from Schedule RC-C, Part I, that are currently reported in the FFIEC
041 and were identified as having lesser utility for institutions
eligible to file the new report.
The remaining loan and lease data in Schedule RC-C, Part I, are
critical inputs to assessing the safety and soundness of individual
institutions through analysis of the institutions' credit risk,
interest rate risk, and liquidity risk, including the identification
and analysis of lending concentrations. The granularity of the loan
categories is also essential for peer group analysis and industry
analysis. Loan and lease information is also an important component of
agency statistical models that assess the risk profile of an
institution. In addition, many community institutions use the Call
Report loan categories when they measure the estimated credit losses
that have been incurred on groups of loans with similar risk
characteristics in their calculations of the ALLL each quarter under
U.S. generally accepted accounting principles (GAAP).
Finally, loan and lease information assists the agencies in
fulfilling their specific missions. The Board, as part of its monetary
policy mission, relies on the loan data in Schedule RC-C, Part I, to
provide information on credit availability and lending conditions not
available elsewhere. Loan and lease detail at all sizes of institutions
is necessary for monitoring the overall health of the economy. Reducing
loan detail or data frequency for smaller institutions would limit the
ability to monitor credit availability and lending conditions widely,
including in response to any changes in monetary policy. At times, loan
availability and lending conditions may be different at smaller
institutions than at larger institutions. Furthermore, Schedule RC-C,
Part I, data are used to benchmark weekly loan data collected by the
Board from a sample of both small and large institutions; the weekly
data are used to estimate weekly loan aggregates for the banking sector
as a whole to provide more timely input for the purposes of monitoring
the macroeconomy.
The FDIC's deposit insurance assessment system for ``established
small banks'' relies on information reported by individual institutions
for the Schedule RC-C, Part I, standardized loan categories in the
determination of the loan mix index in the financial ratios method,
which is used to determine assessment rates for such institutions.\17\
---------------------------------------------------------------------------

\17\ See 81 FR 32186-32188 and 32208 (May 20, 2016).
---------------------------------------------------------------------------

The data collected in Schedule RC-C, Part II, is based on a
statutory requirement to collect data on small business and small farm
loans on an annual basis and began in 1993.\18\ In 2010, the FFIEC
changed the reporting frequency for Schedule RC-C, Part II, from annual
to quarterly. At that time, the agencies approved the more frequent
collection of these data to improve the Board's ability to monitor
credit conditions facing small businesses and small farms and
contribute to its ability to develop policies intended to address any
problems that arise in credit markets. The U.S. Department of the
Treasury also identified a particular need for these data as they
worked to develop policies to ensure that more small businesses and
small farms would have access to credit. The Board also found the more
frequent data valuable for monitoring the macroeconomy and credit
availability in particular for the purposes of monetary policymaking.
However, after extensive analysis by the Board, the agencies agreed in
the August 2016 proposal to reduce the frequency of Schedule RC-C, Part
II, to semiannually in June and December for institutions with assets
of less than $50 million.
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\18\ See Section 122 of the Federal Deposit Insurance
Corporation Improvement Act of 1991, Public Law 102-242.
---------------------------------------------------------------------------

The agencies received five comments stating that Schedule RC-C,
Part II, was particularly burdensome for their institutions due to the
level of manual

[[Page 2451]]

intervention required to report the data. This schedule requests the
number and amount currently outstanding of existing loans in each of
these categories, but categorized by the loans' original amounts. One
banker noted that their bank had to manually stratify loan data into
the three loan size categories for each type of loan according to the
loans' original amounts, and then manually adjust for lines of credit
and participations purchased and sold to accurately report the amount
currently outstanding. One bank questioned how valuable the small
business and small farm loan data are for setting monetary policy,
particularly since the Board had been setting monetary policy for many
years before the FFIEC began requiring quarterly data in 2010 and also
because the Call Report data collected in Schedule RC-C, Part II, does
not capture significant nonbank funding sources for small businesses
such as credit cards and vendor financing. The agencies received
similar comments about burden from banker outreach efforts conducted by
the FFIEC member entities and through the EGRPRA process. After
additional review, the Board has determined that semiannual reporting
by all institutions filing the FFIEC 051 would be of sufficient
frequency to meet their data needs. Therefore, the agencies will
collect this loan information from all institutions filing the FFIEC
051 in the June and December quarterly reports only.

E. Coordination With Other Reports

Two commenters from multibank holding companies stated that the
FFIEC 051 does not provide any relief for their institutions, because
many of the items removed from the FFIEC 041 must still be reported on
the holding company's FR Y-9C \19\ report and therefore must still be
collected at the bank level. One of these commenters noted that unless
all banks in a multibank holding company can use the FFIEC 051, likely
none of them will, as it may be more difficult to consolidate the
information from different Call Report forms when completing the FR Y-
9C. The Board notes that for most holding companies with total assets
less than $1 billion, the holding company can file the FR Y-9SP, which
does not require data being removed from the FFIEC 051. For holding
companies with total assets of $1 billion or more, the FR Y-9C does
require a significant amount of information that is being removed from
the FFIEC 051. The Board believes this information is necessary on the
FR Y-9C, even if the activity is spread among multiple subsidiary
institutions, some of which may have assets less than $1 billion, for
the effective supervision of the consolidated holding company. In those
cases, the holding company and its subsidiary institutions can best
determine whether there is any burden saved at the institution level by
filing the FFIEC 051 rather than the FFIEC 041.
---------------------------------------------------------------------------

\19\ Consolidated Financial Statements for Holding Companies (FR
Y-9C; OMB No. 7100-0128).
---------------------------------------------------------------------------

Four commenters stated that the agencies should reduce duplication
between the Call Report and other regulatory reports collected by the
agencies. Commenters noted perceived duplication of one or more data
items with the following reports: FR 2900,\20\ FR 2644,\21\ the FDIC's
annual Summary of Deposits survey,\22\ and loan data provided to the
institution's Federal Home Loan Bank for access to advances. The
agencies do not believe data collected in these collections are
duplicative of Call Report data. The FR 2900 collects select data on
cash and deposit liabilities for reserve requirement purposes, from
most institutions on a weekly basis, which may not coincide with the
reporting date for the Call Report. The FR 2644 collects data on loans,
securities, and borrowings from a small sample of banks on a weekly
basis, which may not coincide with the reporting date for the Call
Report. The FDIC's Summary of Deposits survey collects data on deposits
stratified by branch location from institutions with branch offices
annually as of each June 30. Deposit data categorized by branch
location is not available elsewhere. The Federal Home Loan Banks are
not government agencies, and any data they may collect in connection
with various lending programs are not readily available for use by
FFIEC member entities.
---------------------------------------------------------------------------

\20\ Report of Transaction Accounts, Other Deposits and Vault
Cash (FR 2900; OMB No. 7100-0087).
\21\ Weekly Report of Selected Assets and Liabilities of
Domestically Chartered Commercial Banks and U.S. Branches and
Agencies of Foreign Banks (FR 2644; OMB No. 7100-0075).
\22\ Summary of Deposits, OMB No. 3064-0061.
---------------------------------------------------------------------------

IV. Proposed Call Report Revisions to the FFIEC 041 and the FFIEC 031

The agencies proposed revisions to some of the schedules in the
FFIEC 041 and FFIEC 031 Call Reports in response to the findings of the
first three user surveys at FFIEC member entities conducted under the
Full Review. Specifically, the following schedules in the FFIEC 041 and
FFIEC 031 versions of the Call Report would have data items removed or
subject to new or higher reporting thresholds as a result of these
surveys (see Appendices C and D for a complete listing of the affected
data items based on the September 30, 2016, FFIEC 031 and FFIEC 041
Call Reports, respectively):
Schedule RI--Income Statement
Schedule RI-B--Charge-offs and Recoveries on Loans and Leases
and Changes in Allowance for Loan and Lease Losses
Schedule RC-C--Loans and Lease Financing Receivables
Schedule RC-E--Deposit Liabilities
Schedule RC-M--Memoranda
Schedule RC-N--Past Due and Nonaccrual Loans, Leases, and
Other Assets

The agencies did not receive any comments on the specific changes
to the FFIEC 041 and FFIEC 031 in the proposal, and plan to implement
those changes as proposed.

V. Additional Suggested Revisions

Twelve commenters recommended additional specific changes for the
agencies to consider on various schedules of the Call Report. Many of
these commenters did not direct their comments at a specific version of
the Call Report, so the agencies considered these comments to improve
both the existing FFIEC 031 and FFIEC 041 Call Reports and proposed
FFIEC 051.
One commenter suggested the agencies revise Schedule RI-C
(Disaggregated Data on the Allowance for Loan and Lease Losses) to
align with the loan categories reported on Schedule RC-C, Part I. The
agencies did not adopt this suggestion. Aligning the categories would
require collecting additional granular data on Schedule RI-C, adding
approximately 20 categories and 60 total items. The agencies proposed
collecting disaggregated ALLL data for key Schedule RC-C, Part I, loan
categories when they proposed to add Schedule RI-C to the Call Report
in 2011. However, commenters on that proposal questioned the reporting
of ALLL data for these key Call Report loan categories. They
recommended reducing the number of loan categories and using broader
portfolio segments that would better align with their loan loss
allowance methodologies, which the agencies did in the final
implementation of Schedule RI-C in 2013. The agencies do not believe
that changing the schedule to require additional granularity of data is
necessary for the supervision of the institutions to which this
schedule is currently applicable. In this regard, the agencies do not
collect Schedule RI-C from institutions with assets less than $1
billion and it would not be included in the FFIEC 051.

[[Page 2452]]

Three commenters suggested revisions to Schedule RI-E
(Explanations). One commenter suggested adjusting the criteria to
separately disclose individual components of other noninterest income
and other noninterest expense. The agencies' current criteria require
separate disclosure if a component within one of those income statement
categories is greater than $100,000 and 3 percent of the total balance
of that category.\23\ The commenter suggested adjusting the criteria to
the greater of $100,000 and 5 to 7 percent of the total balance.
Another commenter suggested reporting Schedule RI-E detail on other
noninterest income and other noninterest expense annually on the
December 31 Call Report, as the commenter stated the data are primarily
useful on an annual rather than quarterly basis. Another commenter
suggested providing definitions for each of the components of other
noninterest income and other noninterest expense for which preprinted
captions are provided in Schedule RI-E. The agencies plan to review the
threshold for separately disclosing individual components and the
frequency of the data collection as part of the ongoing Full Review.
The agencies do not plan to provide specific definitions for the
components of other noninterest income and other noninterest expense
represented by preprinted captions. The agencies added preprinted
captions for these components to assist all institutions, including
community institutions, as they were the most frequently disclosed
components. Not having preprinted captions for such components would
necessitate each institution manually entering its own captions for
those components of other noninterest income and other noninterest
expense exceeding the reporting threshold. However, the agencies do not
want to impose a regulatory definition for these individual components,
which could require institutions to adjust their internal definitions
to line up with the agencies' definitions. The agencies use this
information primarily for the supervision of individual institutions
rather than for peer group comparison, so imposing uniform definitions
across institutions is not necessary for supervisory review. Detailed
lists of components of other noninterest income and other noninterest
expense can be found in the instructions for Schedule RI, items 5.1 and
7.d, respectively. The agencies plan to clarify the instructions for
these two Schedule RI data items to better indicate the linkage between
the components of other noninterest income and other noninterest
expense listed in these instructions and the preprinted captions
provided in Schedule RI-E.
---------------------------------------------------------------------------

\23\ Prior to 2001, the agencies required separate disclosure of
components greater than 10 percent of all other noninterest income
or other noninterest expense. In 2001, the agencies revised the
threshold to 1 percent of total interest income plus total
noninterest income. In 2008, the agencies changed the threshold to 3
percent of other noninterest income or other noninterest expense
with a $25,000 floor. The floor was raised to $100,000 effective
September 30, 2016, while retaining the percentage threshold.
---------------------------------------------------------------------------

One commenter suggested the agencies review the intangible asset
breakout on Schedule RC, item 10, and Schedule RC-M, item 2, and
suggested combining goodwill and other intangible assets on Schedule
RC. The agencies need additional time to consider this request, and
will consider it within the next set of proposed Call Report revisions.
Six commenters stated that Schedule RC-E (Deposit Liabilities) and
RC-O (Other Data for Deposit Insurance and FICO Assessments) were
particularly burdensome and suggested simplifying or consolidating the
deposit data on these schedules. Some commenters specifically noted the
breakout of deposit information by source, use, and balance as time-
consuming, especially for Memorandum items 1 through 4 on Schedule RC-
E. Two commenters noted that the FDIC's deposit insurance assessments
currently are calculated based on average total assets and average
tangible equity, so the deposit data is not necessary for the vast
majority of banks.\24\ Three commenters also questioned why the
agencies maintain a stratification of certain deposits in Schedule RC-E
into those with balances less than $100,000, $100,000 through $250,000,
and more than $250,000 even though the deposit insurance limit is
currently $250,000, and stated this stratification was particularly
burdensome as it required a significant amount of manual intervention.
Two commenters stated that separating out Individual Retirement
Accounts (IRA) data from general deposits on Schedule RC-O was
particularly burdensome, with one commenter noting their bank had to
further identify and separate out Coverdell Education Savings Accounts
(formerly called Education IRAs) from the bank's other IRA account
balances to add back to the non-retirement accounts.
---------------------------------------------------------------------------

\24\ Deposit data affects the assessments at certain
institutions, such as bankers' banks and custodial banks.
---------------------------------------------------------------------------

Schedule RC-E categorizes deposits based on source (brokered or
non-brokered) and type of account (time deposit, demand deposit,
savings deposit), and by deposit size within certain of those
categories. The reporting of deposit data for some of these categories
is required by statute.\25\ Reporting of time deposits with balances
less than $100,000 in Schedule RC-E, including certain Memorandum items
to adjust that amount, is tied to the Board's measurement of the money
supply.\26\ Schedule RC-O, Memorandum item 1, categorizes deposits
based on purpose (for retirement or not for retirement) and subdivided
by deposit size, as the deposit insurance limit applies separately to
retirement and non-retirement accounts. These deposit data also are
necessary for the FDIC to calculate the reserve ratio each quarter,
which is the ratio of the net worth of the Deposit Insurance Fund (DIF)
to the aggregate estimated insured deposits.\27\ The agencies
previously approved revisions to Schedule RC-E (and Schedules RI and
RC-K) to replace most segmentations of deposits less than $250,000 that
are not needed to calculate the money supply with segmentations based
on deposits of more than $250,000 for consistency with the deposit
insurance limits currently in effect. These revisions will be
implemented beginning March 31, 2017.\28\ The agencies are not making
any revisions to the classification of Coverdell accounts, as the
reporting of deposits by purpose is tied to the FDIC's provision of
deposit insurance.
---------------------------------------------------------------------------

\25\ For example, 12 U.S.C. 1817(a)(5) and (9).
\26\ See definition of M2, https://www.federalreserve.gov/faqs/money_12845.htm.
\27\ See 12 U.S.C. 1813(y)(3).
\28\ See 81 FR 45357 (July 13, 2016).
---------------------------------------------------------------------------

One commenter stated that the data on Schedules RC-F (Other Assets)
and RC-G (Other Liabilities) did not change significantly for community
banks from quarter to quarter and should be reported annually instead.
The agencies did propose reducing the frequency by which institutions
must report the significant components of all other assets and all
other liabilities on these two schedules to semiannual in the FFIEC 051
in the August 2016 notice. The agencies will be considering both the
data items and frequency of reporting for these two schedules for all
versions of the Call Report in the Full Review, and will consider the
commenter's suggestions in that process.
One commenter stated that Schedule RC-K (Quarterly Averages) was
particularly burdensome, as the bank's general ledger provides point-
in-time

[[Page 2453]]

amounts and manual intervention is needed to calculate quarterly
averages. The agencies note that average total assets is necessary for
various purposes, including prompt corrective action and deposit
insurance assessments.\29\ The agencies will be considering both the
data items and frequency of reporting for this schedule in the Full
Review, and will consider the commenter's suggestions in that process.
---------------------------------------------------------------------------

\29\ See 12 U.S.C. 1831o and 12 CFR 327.5.
---------------------------------------------------------------------------

Three commenters stated that Schedule RC-L (Derivatives and Off-
Balance Sheet Items) was particularly difficult to complete, as some
items defined in that schedule do not align with definitions for
similar items in Schedule RC-R, particularly for over-the-counter (OTC)
derivatives. The commenters also noted certain items included in
Schedule RC-L, such as ``commitments to make a commitment,'' are
difficult to define and track. One commenter suggested lining up the
loan commitment categories on Schedule RC-L with the loan categories on
Schedule RC-C, Part I. The agencies are investigating alternatives to
the current definitions in Schedule RC-L, and whether they can be more
closely aligned with definitions used in the agencies' regulatory
capital rules, which is the basis for Schedule RC-R, for inclusion in a
future notice. The agencies do not plan to align the loan categories
between Schedules RC-L and RC-C, Part I. The loan categories on
Schedule RC-C, Part I, are much more granular than in Schedule RC-L.
Reducing the granularity of categories on Schedule RC-C, Part I, would
impair the agencies' ability to use that data for safety and soundness
monitoring, while increasing the granularity on Schedule RC-L would
impose additional burden to collect items the agencies do not believe
are necessary.
One commenter recommended reducing the frequency of certain data
items in Schedule RC-M (Memoranda) to annual. Specifically, items 7
through 9, 11, and 12 do not change from quarter to quarter at the
commenter's bank. Item 7 collects data on assets under management in
proprietary mutual funds and annuities. Item 8 collects information on
an institution's internet Web site addresses and trade names. Item 9
asks about internet Web site transactional capability. Items 11 and 12
collect information on certain bank powers. The agencies proposed in
the August 2016 notice to reduce the frequency for items 7, 9, 11, and
12 from quarterly to annual. The agencies will continue collecting item
8 on a quarterly basis to provide more accurate, timely, and complete
information to the FDIC, depositors, and the general public on the
insured status of entities identifying themselves as FDIC-insured
depository institutions than would occur through annual reporting.
One commenter requested that the agencies add control totals to
Schedule RC-N for past due and nonaccrual loans, leases, and other
assets to allow easier validation of the accuracy of the reported data
to the institution's own records. The agencies also noted during their
on-site banker outreach efforts that some institutions appended their
own control totals on this form. The agencies agree with the
suggestion, and plan to revise Schedule RC-N on the FFIEC 031, 041, and
051. For the same reason, the agencies will also revise Schedule RC-C,
Part I, and Schedule RC-N to add control totals for troubled debt
restructurings in Memorandum item 1 of each schedule. While these
changes would add additional data items to these two schedules, the
data items would be simple mathematical totals of existing data items
and would not require the institution to obtain any additional data.
Five commenters requested that the agencies improve the clarity and
usefulness of the Call Report instructions and highlight any changes
made to the instructions each quarter. One commenter also recommended
improving internal consistency within the Call Report. The agencies
agree that the current Call Report instructions could be made more
useful, and will start by incorporating hyperlinks to cited documents
in the instructions for the FFIEC 051.\30\ In addition, the agencies
will post ``redlined'' documents on the FFIEC Web site \31\ that
clearly indicate any changes to the instructions made since the
previous quarter in both versions of the Call Report instructions. The
agencies note that the description in the Call Report forms and
instructions for ``loans and leases, net of unearned income'' and
``loans and leases held for investment'' are intended to have the same
reported amounts. Accordingly, the agencies will replace the former
description with the latter description in affected data item captions
and related instructions for clarity and internal consistency. The
agencies will continue to consider additional changes to improve the
clarity and usefulness of the Call Report instructions and the internal
consistency of the report.
---------------------------------------------------------------------------

\30\ The agencies have already begun to add such hyperlinks to
the existing set of instructions for the FFIEC 031 and FFIEC 041.
\31\ https://www.ffiec.gov/ffiec_report_forms.htm.
---------------------------------------------------------------------------

VI. Request for Comment

Public comment is requested on all aspects of this joint notice.
Comment is invited on:
(a) Whether the proposed revisions to the collections of
information that are the subject of this notice are necessary for the
proper performance of the agencies' functions, including whether the
information has practical utility;
(b) The accuracy of the agencies' estimates of the burden of the
information collections as they are proposed to be revised, including
the validity of the methodology and assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information.
Comments submitted in response to this joint notice will be shared
among the agencies. All comments will become a matter of public record.

Appendix A

Summary of the FFIEC Member Entities' Uses of the Data Items in the
Call Report Schedules in Full Review Surveys 1 Through 3

Schedule RC (Balance Sheet)

Schedule RC collects high-level information on various balance
sheet categories, including assets, liabilities, and equity accounts
every quarter. These categories are aligned with the categories
typically reported on a basic balance sheet prepared under U.S.
generally accepted accounting principles (GAAP).

Schedule RI (Income Statement)

Schedule RI collects information on various income and expense
categories every quarter. In general, these categories are aligned
with the categories typically reported on a basic income statement
and in the notes to the financial statements prepared under U.S.
GAAP.
The Memorandum items collect an assortment of information on
items related to the income statement. Some items provide additional
detail for certain categories of income or expense, while other
items are not directly tied to earnings measures. Memorandum items
on tax-exempt income and nondeductible interest expense are used to
convert components of reported earnings to a tax-equivalent basis to
improve the comparability of income statement information across
institutions for purposes

[[Page 2454]]

of analyzing institutions' earnings. An institution's Subchapter S
status for federal income tax purposes assists examiners and other
users in understanding the amounts, if any, reported for applicable
income taxes. It also serves as a flag for adjusting after-tax
earnings when measuring return on assets to improve the
comparability of this ratio across institutions with differing tax
statuses. The count of full-time equivalent employees is used to
calculate efficiency ratios and average personnel expenses per
employee to identify institutions with higher expense levels for
further review. The existence of other-than-temporary impairment
losses on debt securities recognized in earnings provides an
indication of heightened credit risk in an institution's investment
securities, which may warrant supervisory follow-up, and assists in
the scoping of the review of the securities portfolio during on-site
examinations. Data on the composition of trading revenue is used in
evaluating the variability and volatility of this revenue source for
institutions with significant trading activity in off-site reviews
and for pre-examination planning and as part of industry analysis of
trading activity.

Schedule RC-C, Part I (Loans and Lease Financing Receivables)

Schedule RC-C, Part I, requests information on loan and lease
financing activities, segmented into detailed loan categories. The
memoranda items request additional information, including scheduled
maturities and repricing dates for certain loan types and fair value
estimates.
Schedule RC-C details loan volumes, segmentations, and
structures, all of which facilitate the assessment of an
institution's inherent risk, performance risk, and structure risk in
its primary earning assets and its primary source of credit risk.
Schedule RC-C is often reviewed in conjunction with Schedules RI,
RI-B, and RC-N. This granular data enables examiners to analyze and
assess the institution's loan portfolio diversification, credit
quality, concentration exposure, and overall risk profile. These
schedules are critical to the credit quality analysis performed by
examiners to identify early warning signs of deterioration in the
financial condition of institutions. Asset quality ratios from the
Uniform Bank Performance Report (UBPR) that are calculated using
data from Schedule RC-C and related loan schedules are also helpful
to examiners in determining how an institution is performing
relative to its peers and relative to its own risk profile based on
its loan portfolio composition. In addition, these ratios are useful
to examiners in assessing the institution's credit risk management
practices relative to its peers. Elevated charge-offs or increases
in nonaccrual loans in relation to loan balances provide information
to users of the data on potential weak underwriting in prior
periods, deterioration of asset quality, or the indication that the
institution is recovering from a period of stress. If there are
concerns about the allowance for loan and lease losses (ALLL)
methodology or the appropriateness of the ALLL level, then there is
a focus on the provision expense relative to the charge-offs as well
as to the growth and quality of certain portfolios, depending on the
institution's risk characteristics. All of these inputs are
essential in the review of the balance sheet, the liquidity of the
institution, and the asset-liability management of the institution.
The data on Schedule RC-C are needed for on-site and off-site
examination purposes and also are used in the systemic analysis of
the banking system. Because the loan portfolio is the primary source
of credit risk in institutions, the breakdown of the portfolio by
loan type is essential in the review of asset quality. An
understanding of an institution's lending activity is needed to
ensure the safety and soundness of the financial institution by
indicating whether the institution is increasing concentrations or
incorporating a change to its lending strategy. The loan
segmentation information is essential for planning and staffing
examinations by considering each institution's lending activities.
The information also allows the examination teams to determine if
the lending volume constitutes a concentration of credit, which
could require additional monitoring, measuring, and risk mitigation
strategies by bank management. In addition, the loan detail is
important for loan scoping and trend analysis of the entire
portfolio, which are essential in determining an institution's risk
profile. On a broader perspective, the loan segmentation allows
regulatory staff to identify concentration risks across
institutions.
Along with related data in Schedule RC-N, information about
troubled debt restructurings in compliance with their modified terms
can assist the assessment of management's ability to work out
different categories of problem loans.
Maturity and repricing information on loans and leases, together
with the maturity and repricing information collected in other
schedules for other types of assets and liabilities, are needed to
evaluate the liquidity and interest rate risk of the institution and
to aid in evaluating the strategies institutions take to mitigate
these risks. Liquidity and interest rate risk indicators that are
calculated by agency models from an institution's Call Report data
and exceed specified parameters or change significantly between
examinations are red flags that call for timely examiner off-site
review. The institution's risk profile in these areas is considered
during pre-examination planning to determine the appropriate scoping
and staffing for examinations.
In addition, Schedule RC-C and related loan schedules assisted
the Consumer Financial Protection Bureau's (CFPB) efforts to develop
required estimates for various Title XIV mortgage reform rulemakings
under the Dodd-Frank Wall Street Reform and Consumer Protection Act
(Pub. L. 111-203) (Dodd-Frank Act). Going forward, data items in
these schedules are critical for continuous monitoring of the
mortgage market. The CFPB uses these items to understand the
intricacies of the mortgage market that are essential to assessing
institutional participation in regulated consumer financial services
markets and to assess regulatory impact associated with recent and
proposed policies, as required by that agency's statutory mandate.
Finally, loan and lease information assists the agencies in
fulfilling their specific missions. The Board, as part of its
monetary policy mission, relies on institution-specific Call Report
data to provide information on credit availability and lending
conditions not available elsewhere. Loan and lease detail at all
sizes of institutions is necessary for monitoring economic
conditions.
Reducing loan detail or data frequency for smaller institutions
would limit the ability to monitor credit availability and lending
conditions widely, including changes in credit and lending related
to changes in monetary policy. At times, loan availability and
lending conditions may be different at smaller institutions than at
larger institutions. Furthermore, Schedule RC-C, Part I, data are
used to benchmark weekly loan data collected by the Board from a
sample of both small and large institutions; the weekly data are
used to estimate weekly loan aggregates for the banking sector as a
whole to provide a more timely input for purposes of monitoring the
macroeconomy.
The FDIC's deposit insurance assessment system for ``established
small banks'' relies on information reported by individual
institutions for the Schedule RC-C, Part I, standardized loan
categories in the determination of the loan mix index in the
financial ratios method, as recently amended, which is used to
determine assessment rates for such institutions.

Schedule RC-C, Part II (Loans to Small Businesses and Small Farms)

Schedule RC-C, Part II, requests data on loans to small
businesses and small farms, including stratification by original
loan amount.
Call Report small business and small farm lending data are an
invaluable resource for understanding credit conditions facing these
sectors of the economy. Quarterly collection of these data improves
the Board's ability to monitor credit conditions facing small
businesses and small farms and significantly contributes to its
ability to develop policies intended to address any problems that
arise in credit markets. The institution-level Call Report data
provide information that cannot be obtained from other indicators of
small business and small farm credit conditions. For example, during
a period of credit contraction, the Call Report data can be used to
identify which types of institutions are reducing the volume of
their loans to small businesses and small farms. This is important
information for the Board, as having detailed data on the
characteristics of affected institutions is crucial to building a
sufficiently informative picture of the strength of economic
activity. Moreover, there is evidence that small business lending by
small institutions does not correlate with lending by larger
institutions.
Monetary policymaking benefits importantly from timely
information on small business credit conditions and flows. To
determine how best to adjust the federal funds rate over time, the
Board must continuously assess the prospects for real economic
activity and inflation in coming

[[Page 2455]]

quarters. Credit conditions have an important bearing on the
evolution of those prospects over time, and so the Board pays close
attention to data from Call Reports and other sources. In trying to
understand the implications of aggregate credit data for the
macroeconomic outlook, it is helpful to be able to distinguish
between conditions facing small firms and those affecting other
businesses, for several reasons. First, small businesses comprise a
substantial portion of the nonfinancial business sector, and so
their hiring and investment decisions have an important influence on
overall real activity. Second, because small businesses tend to
depend more heavily on depository institutions for external
financing, they likely experience material swings in their ability
to obtain credit relative to larger firms. Third, the relative
opacity of small businesses and their consequent need to provide
collateral for loans is thought to create a ``credit'' channel for
monetary policy to influence real activity. Specifically, changes in
monetary policy may alter the value of assets used as collateral for
loans, thereby affecting the ability of small businesses to obtain
credit, abstracting from the effects of any changes in loan rates.
Finally, the credit conditions facing small businesses and small
farms differ substantially from those facing large businesses,
making it necessary to collect indicators that are specific to these
borrowers. Large businesses may access credit from a number of
different sources, including the corporate bond market and the
commercial paper market. In contrast, small businesses and small
farms rely more heavily on credit provided through depository
institutions. The dependence of small businesses and small farms on
lending by depository institutions--particularly from smaller
institutions--highlights the importance of Call Report data.

Schedule RC-N (Past Due and Nonaccrual Loans, Leases, and Other
Assets)

Schedule RC-N requests data on past due and nonaccrual assets by
detailed categories for loans and leases and, on a combined basis,
for debt securities and other assets.
Data collected on Schedule RC-N is essential to the oversight
function of the FFIEC member entities. The loan portfolio is the
largest asset type and the primary source of credit risk at most
financial institutions. Past due and nonaccrual loan information
provides significant insights into the overall credit quality of a
financial institution's loan portfolio and potential areas of credit
quality concerns on which to focus for monitoring and assessing the
credit risk management and overall safety and soundness of an
institution. A high level of past due or nonaccrual loans often
precedes adverse changes in an institution's earnings, liquidity,
and capital adequacy. This information can also have an impact on
consumer protection law compliance and agency rulemaking.
Information collected on Schedule RC-N is integral to both on-
site and off-site review processes at the FFIEC member entities.
Trends in past due and nonaccrual loans alert examiners to possible
weaknesses in bank management's loan underwriting and credit
administration practices. This information is a significant factor
in assessing the portfolio's collectability and in estimating the
appropriate level for an institution's ALLL, as well as the adequacy
of its capital levels. The ability to compare results and trends
across financial institutions is important to distinguish systemic
issues from institution-specific concerns. Past due and nonaccrual
loan information can serve as an indicator of areas of increasing
credit risk within the loan portfolio. The segmentation of past due
and nonaccrual information by loan category is necessary to pinpoint
where the credit risk in an institution's loan portfolio exists.
Comparing the past due level in different loan portfolios to other
risk characteristics in that portfolio such as concentration,
charge-offs, or growth can help to determine the overall level of
risk to the safety and soundness of an institution. This data can
also provide more insight on credit risks or weak underwriting
practices associated with a specific loan category, which helps
direct the scope of an exam.
Memorandum items in Schedule RC-N also provide important
information about credit risk management, including the past due or
nonaccrual status of troubled debt restructurings, which can assist
the assessment of management's ability to work out different
categories of problem loans. Data regarding delinquent derivative
contracts provides important information for assessing a financial
institution's asset quality, capital level, earnings, market risk,
and operational risk.
Past due and nonaccrual information is also utilized in the
assessment of compliance with consumer protection laws and
regulations. Items reported on Schedule RC-N are used to inform rule
writing and policy efforts, including the CFPB's Title XIV mortgage
reform rulemakings under the Dodd-Frank Act. Past due information
can identify potential areas of disparate treatment in relation to
the Fair Housing Act (Pub. L. 90-284). Additionally, past due levels
can highlight areas of potential unfair practices under the
principles in section 1031 of the Dodd-Frank Act, which are similar
to those under section 5 of the Federal Trade Commission Act (15
U.S.C. 45).

Schedule RI-B, Parts I and II (Charge-offs and Recoveries on Loans
and Leases and Changes in Allowance for Loan and Lease Losses)

Schedule RI-B, Part I, collects information on charge-offs and
recoveries on loans and leases, while Part II collects information
on changes in the ALLL during the year-to-date reporting period in a
manner consistent with the disclosure of the activity in the
allowance required under U.S. GAAP.
The data items on Schedule RI-B provide information critical to
the missions of the FFIEC member entities. Charge-off amounts, in
conjunction with any associated recoveries, for the various loan
categories are needed to assess the safety and soundness of the
financial institution by indicating the credit quality of the loan
portfolio and the potential credit risk of the institution. The data
items are also used to assess the strength of the institution's
credit administration practices, along with the institution's loan
underwriting practices. The data items also support the agencies'
rule writing and policy efforts.
Schedule RI-B data play an integral role in reviewing the asset
quality of an institution. The net charge-offs help in the
assessment of the level of credit risk in the loan portfolio, both
in aggregate and by loan type. Above average or increasing net
charge-offs may be a signal of weak underwriting in prior periods,
which in turn may be an indicator of future risks to earnings and
capital. In addition, the separate reporting of gross charge-offs
and recoveries allows users of the data to evaluate whether high
recovery rates are masking underlying loss levels and trends, which
may have future earnings implications, and the charge-off and
recovery data also aid in the planning of on-site examinations and
in the scoping of the loan review to be conducted during these
examinations.
Schedule RI-B is also important in assessing the strength of an
institution's underwriting and credit administration practices. The
data items allow for the agencies to highlight loan categories with
a large or sudden change in charge-off rates, which is often a key
indicator of weaknesses in these areas, while information on
recoveries provides support in evaluating an institution's ability
to collect on prior charge-offs.
The segmentation of the charge-off and recovery data by loan
category in Schedule RI-B is essential for many reasons. Consistent
segmentation by loan category allows for comparability between
institutions, as well as within an institution from quarter to
quarter, allowing for the evaluation of changes and trends in
charge-offs and recoveries that may or may not be institution-
specific. This evaluation facilitates on-site examination planning.
It also allows for better off-site monitoring of the existing types
of lending and shifts in types of lending. The granularity and
consistency of data items helps in the determination of whether
weaknesses are confined to a particular portfolio segment and are
unique to the institution or whether they are representative of a
more widespread systemic weakness in a particular loan category. The
detail by loan category is critical as losses in certain portfolios
vary based on several factors and aggregating the data items would
impair the ability to analyze data by loan category. The Memorandum
items request further detail on charge-offs and recoveries or
additional loan categories, which assists in the assessment of
credit risk in these areas.
Schedule RI-B data items are used in rule writing and policy
efforts. In particular, the items are used to assess institutional
participation in regulated consumer financial services markets and
to assess regulatory impact associated with recent and proposed
policies, as required by the CFPB's mandate. Also, the information
reported in Schedule RI-B, Part I, was integral in various Title XIV
mortgage reform rulemakings under the Dodd-Frank Act and continues
to be critical for the continuous monitoring of the mortgage
markets.

[[Page 2456]]

Schedule RC-E, Parts I and II (Deposit Liabilities)

Schedule RC-E, Part I, requests data on deposits, segmented
between transaction and nontransaction accounts. The Memoranda
section of the schedule requests additional detail on retirement
account deposits, brokered deposits, deposit size, and time deposit
maturity and repricing dates. Schedule RC-E, Part II, requests data
on foreign deposits and is included only in the FFIEC 031.
Schedule RC-E, Part I, provides detail necessary for supervisory
purposes, including for identifying material deposit elements and
providing detail needed to analyze cost of funds. Deposit detail as
to the type, nature, and maturity of deposits, including deposits
from non-core sources, is critical to the agencies' asset-liability
management, interest rate risk, and liquidity analyses. A number of
agency analysis tools routinely use quarterly deposit data for trend
analysis and timely identification of deposit shifts, including
changes in an institution's use of brokered and listing service
deposits. Schedule RC-E, Part I, data are also used to estimate the
contribution to the U.S. monetary aggregates for over 1,000
depository institutions that do not file these data directly to the
Board.
The Schedule RC-E, Part I, Memorandum items provide information
needed for off-site monitoring and pre-examination planning,
particularly for analyses related to brokered deposits and time
deposits, the results of which may signal the existence of higher-
risk funding strategies. The resolution process for failed
institutions requires sufficient deposit detail to estimate the
least costly alternative to liquidation. Brokered deposit data are
used as inputs in the calculation of deposit insurance assessment
rates and to assure compliance with safety and soundness regulations
tied to limits on those types of deposits.
Maturity and repricing information on time deposits, together
with the maturity and repricing information collected in other
schedules for other types of assets and liabilities, are needed to
evaluate the liquidity and interest rate risk of the institution and
to aid in evaluating the strategies institutions take to mitigate
these risks. Liquidity and interest rate risk indicators that are
calculated by agency models from an institution's Call Report data
and exceed specified parameters or change significantly between
examinations are red flags that call for timely examiner off-site
review. The institution's risk profile in these areas is considered
during pre-examination planning to determine the appropriate scoping
and staffing for examinations.
Schedule RC-E, Part II, data on foreign deposits provides the
extent of and exposure to such balances, and is used in similar
analyses for institutions with foreign operations.

Schedule RC-O (Other Data for Deposit Insurance and FICO
Assessments)

Schedule RC-O requests data for deposit insurance purposes and
serves three primary purposes for the FDIC: Calculating the FDIC's
DIF reserve ratio, calculating the assessment base of FDIC-insured
institutions, and calculating the risk-based assessment rate of
FDIC-insured institutions.
Schedule RC-O data are collected in the Call Report to provide
unique information used in the calculation of the FDIC's reserve
ratio to satisfy the statutory requirements related to maintaining
the DIF. Information related to deposit liabilities on Schedule RC-O
is needed to estimate insured deposits. Schedule RC-O is the only
place on the Call Report where information is available to estimate
insured and uninsured deposits for individual institutions and
equivalent data items are not readily available from other sources.
Schedule RC-O data that are not available elsewhere enable the
FDIC to calculate the quarterly deposit insurance assessment base
for each FDIC-insured institution. Pursuant to the Dodd-Frank Act,
the assessment base is defined as average consolidated total assets
minus average tangible equity, both of which are reported in
Schedule RC-O. Custodial banks and banker's banks also receive an
additional adjustment to the assessment base using Schedule RC-O
data. The FDIC must be able to calculate the assessment base in
order to meet the statutory requirements for collecting quarterly
insurance assessments from all FDIC-insured institutions.
Most of the data reported on Schedule RC-O is used to determine
the risk-based insurance assessment for individual institutions in
accordance with FDIC regulations implementing the statutory
requirement for risk-based assessments first enacted in 1991. With
the adoption of the risk-based scorecards for large and highly
complex institutions, additional reporting is required on Schedule
RC-O in data items applicable only to these institutions. In
addition, some Schedule RC-O data items are used for determining the
assessment rate of all FDIC-insured institutions.
Supervisory uses of Schedule RC-O data include incorporating the
data on the maturity structure of external borrowings in agency
interest rate risk models to determine the impact of interest rate
movements on income and economic value of equity. Interest rate risk
indicators that exceed specified parameters or change significantly
between examinations are triggers for timely off-site review. The
indicated level of interest rate risk is considered during pre-
examination planning to determine the appropriate scoping and
staffing for examinations. Data on reciprocal brokered deposits
supplements on- and off-site analyses of liquidity ratios, including
the net non-core funding dependence and net short-term non-core
funding dependence, both of which include brokered deposits in their
calculation, because reciprocal brokered deposits may have
characteristics that differ from other brokered deposits.

Appendix B

Proposed FFIEC 051 for March 31, 2017: Changes Made to the FFIEC 041
(Based on the FFIEC 041 for September 30, 2016)

Schedules Replaced by Schedule SU--Supplemental Information

Schedule RC-D--Trading Assets and Liabilities
Schedule RC-P--1-4 Family Residential Mortgage Banking Activities
Schedule RC-Q--Assets and Liabilities Measured at Fair Value on a
Recurring Basis
Schedule RC-S--Servicing, Securitization, and Asset Sale Activities
Schedule RC-V--Variable Interest Entities

Schedules with a Change in Frequency of Collection

1. Schedule RC-C, Part II--Loans to Small Businesses and Small
Farms--For all institutions that file the FFIEC 051, the frequency
of collection will move from quarterly to semiannual (June and
December).
2. Schedule RC-A--Cash and Balances Due from Depository
Institutions--Institutions with less than $300 million in total
assets are already exempt from completing this schedule. For all
other FFIEC 051 filers, the frequency of collection will move from
quarterly to semiannual (June and December).

Data Items Removed

Note: In the following list of ``Data Items Removed'' from the
proposed FFIEC 051, existing FFIEC 041 data items that institutions
with less than $1 billion in total assets are currently exempt from
reporting are marked with an asterisk (`` *''). In addition, the
list excludes two Call Report data items that have been approved for
removal by OMB effective March 31, 2017, in accordance with the
agencies' July 13, 2016, Federal Register notice (81 FR 45357):
Schedule RI, Memorandum items 14.a and 14.b.

----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RI............................. 1.a.(4)........................ Loans to foreign RIAD4056.
governments and official
institutions.
RI............................. 1.e............................ Interest income from RIAD4069.
trading assets.
RI............................. 2.c............................ Interest on trading RIAD4185.
liabilities and other
borrowed money.
RI............................. 2.d............................ Interest on subordinated RIAD4200.
notes and debentures.
Note: Items 2.c and 2.d
of Schedule RI will be
combined into one data
item for ``Other
interest expense.''.
RI............................. 5.c............................ Trading revenue.......... RIADA220.
RI............................. 5.e............................ Venture capital revenue.. RIADB491.

[[Page 2457]]

RI............................. M2 *........................... Income from the sale and RIAD8431.
servicing of mutual
funds and annuities
(included in Schedule
RI, item 8).
RI............................. M8.a........................... Interest rate exposures.. RIAD8757.
RI............................. M8.b........................... Foreign exchange RIAD8758.
exposures.
RI............................. M8.c........................... Equity security and index RIAD8759.
exposures.
RI............................. M8.d........................... Commodity and other RIAD8760.
exposures.
RI............................. M8.e........................... Credit exposures......... RIADF186.
RI............................. M8.f *......................... Impact on trading revenue RIADK090.
of changes in the
creditworthiness of the
bank's derivatives
counterparties on the
bank's derivative assets
(included in Memorandum
items 8.a through 8.e).
RI............................. M8.g *......................... Impact on trading revenue RIADK094.
of changes in the
creditworthiness of the
bank on the bank's
derivative liabilities
(included in Memorandum
items 8.a through 8.e)..
RI............................. M9.a........................... Net gains (losses) on RIADC889.
credit derivatives held
for trading.
RI............................. M9.b........................... Net gains (losses) on RIADC890.
credit derivatives held
for purposes other than
trading.
RI............................. M10............................ Credit losses on RIADA251.
derivatives.
RI............................. M13.a.(1)...................... Estimated net gains RIADF552.
(losses) on loans
attributable to changes
in instrument-specific
credit risk.
RI............................. M13.b.(1)...................... Estimated net gains RIADF554.
(losses) on liabilities
attributable to changes
in instrument-specific
credit risk.
RI............................. M15.a *........................ Consumer overdraft- RIADH032.
related service charges
levied on those
transaction account and
non-transaction savings
account deposit products
intended primarily for
individuals for
personal, household, or
family use.
RI............................. M15.b *........................ Consumer account periodic RIADH033.
maintenance charges
levied on those
transaction account and
non-transaction savings
account deposit products
intended primarily for
individuals for
personal, household, or
family use.
RI............................. M15.c *........................ Consumer customer RIADH034.
automated teller machine
(ATM) fees levied on
those transaction
account and non-
transaction savings
account deposit products
intended primarily for
individuals for
personal, household, or
family use.
RI............................. M15.d *........................ All other service charges RIADH035.
on deposit accounts.
RI-B, Part I................... 2.............................. Loans to depository RIAD4481, RIAD4482.
institutions and
acceptances of other
banks (Columns A and B).
RI-B, Part I................... 6.............................. Loans to foreign RIAD4643, RIAD4627.
governments and official
institutions (Columns A
and B).
RI-B, Part I................... M2.a........................... Loans secured by real RIAD4652, RIAD4662.
estate to non-U.S.
addressees (domicile)
(included in Schedule RI-
B, part I, item 1)
(Columns A and B).
RI-B, Part I................... M2.b........................... Loans to and acceptances RIAD4654, RIAD4664.
of foreign banks
(included in Schedule RI-
B, part I, item 2)
(Columns A and B).
RI-B, Part I................... M2.c........................... Commercial and industrial RIAD4646, RIAD4618.
loans to non-U.S.
addressees (domicile)
(included in Schedule RI-
B, part I, item 4)
(Columns A and B).
RI-B, Part I................... M2.d........................... Leases to individuals for RIADF185, RIADF187.
household, family, and
other personal
expenditures (included
in Schedule RI-B, part
I, item 8) (Columns A
and B).
RI-B, Part II.................. M1............................. Allocated transfer risk RIADC435.
reserve included in
Schedule RI-B, part II,
item 7.
RI-C........................... 1.a *.......................... Construction loans RCONM708, RCONM709,
(Columns A through F). RCONM710,RCONM711,
RCONM712,RCONM713.
RI-C........................... 1.b *.......................... Commercial real estate RCONM714, RCONM715,
loans (Columns A through RCONM716,
F). RCONM717,
RCONM719,
RCONM720.
RI-C........................... 1.c *.......................... Residential real estate RCONM721, RCONM722,
loans (Columns A through RCONM723,
F). RCONM724,
RCONM725,
RCONM726.
RI-C........................... 2 *............................ Commercial loans (Columns RCONM727, RCONM728,
A through F). RCONM729,
RCONM730,
RCONM731,
RCONM732.
RI-C........................... 3 *............................ Credit cards (Columns A RCONM733, RCONM734,
through F). RCONM735,
RCONM736,
RCONM737,
RCONM738.
RI-C........................... 4 *............................ Other consumer loans RCONM739, RCONM740,
(Columns A through F). RCONM741,
RCONM742,
RCONM743,
RCONM744.
RI-C........................... 5 *............................ Unallocated, if any...... RCONM745.
RI-C........................... 6 *............................ Total (for each column, RCONM746, RCONM747,
sum of items 1.a through RCONM748,
5) (Columns A through F). RCONM749,
RCONM750,
RCONM751.

[[Page 2458]]

RC-B........................... M5.a *......................... Credit card receivables RCONB838, RCONB839,
(Columns A through D). RCONB840,
RCONB841.
RC-B........................... M5.b *......................... Home equity lines RCONB842, RCONB843,
(Columns A through D). RCONB844,
RCONB845.
RC-B........................... M5.c *......................... Automobile loans (Columns RCONB846, RCONB847,
A through D). RCONB848,
RCONB849.
RC-B........................... M5.d *......................... Other consumer loans RCONB850, RCONB851,
(Columns A through D). RCONB852,
RCONB853.
RC-B........................... M5.e *......................... Commercial and industrial RCONB854, RCONB855,
loans (Columns A through RCONB856,
D). RCONB857.
RC-B........................... M5.f *......................... Other (Columns A through RCONB858, RCONB859,
D). RCONB860,
RCONB861.
RC-C, Part I................... 2a.(1)......................... To U.S. branches and RCONB532.
agencies of foreign
banks.
RC-C, Part I................... 2a.(2)......................... To other commercial banks RCONB533.
in the U.S..
RC-C, Part I................... 2.b............................ To other depository RCONB534.
institutions in the U.S..
RC-C, Part I................... 2.c.(1)........................ To foreign branches of RCONB536.
other U.S. banks.
RC-C, Part I................... 2.c.(2)........................ To other banks in foreign RCONB537.
countries.
RC-C, Part I................... 4.a............................ To U.S. addressees RCON1763.
(domicile).
RC-C, Part I................... 4.b............................ To non-U.S. addressees RCON1764.
(domicile).
RC-C, Part I................... 7.............................. Loans to foreign RCON2081.
governments and official
institutions (including
foreign central banks).
RC-C, Part I................... 9.b.(1)........................ Loans for purchasing or RCON1545.
carrying securities
(secured and unsecured).
RC-C, Part I................... 9.b.(2)........................ All other loans (exclude RCONJ451.
consumer loans).
RC-C, Part I................... 10.a........................... Leases to individuals for RCONF162.
household, family, and
other personal
expenditures (i.e.,
consumer leases).
RC-C, Part I................... 10.b........................... All other leases......... RCONF163.
RC-C, Part I................... M1.e.(1)....................... To U.S. addressees RCONK163.
(domicile).
RC-C, Part I................... M1.e.(2)....................... To non-U.S. addressees RCONK164.
(domicile).
RC-C, Part I................... M5............................. Loans secured by real RCONB837.
estate to non U.S.
addressees (domicile).
RC-C, Part I................... M10.a.(1)...................... Construction, land RCONF578.
development, and other
land loans.
RC-C, Part I................... M10.a.(2)...................... Secured by farmland RCONF579.
(including farm
residential and other
improvements).
RC-C, Part I................... M10.a.(3)(a)................... Revolving, open-end loans RCONF580.
secured by 1-4 family
residential properties
and extended under lines
of credit.
RC-C, Part I................... M10.a.(3)(b)(1)................ Secured by first liens... RCONF581.
RC-C, Part I................... M10.a.(3)(b)(2)................ Secured by junior liens.. RCONF582.
RC-C, Part I................... M10.a.(4)...................... Secured by multifamily (5 RCONF583.
or more) residential
properties.
RC-C, Part I................... M10.a.(5)...................... Secured by nonfarm RCONF584.
nonresidential
properties.
RC-C, Part I................... M10.b.......................... Commercial and industrial RCONF585.
loans.
RC-C, Part I................... M10.c.(1)...................... Credit cards............. RCONF586.
RC-C, Part I................... M10.c.(2)...................... Other revolving credit RCONF587.
plans.
RC-C, Part I................... M10.c.(3)...................... Automobile loans......... RCONK196.
RC-C, Part I................... M10.c.(4)...................... Other consumer loans..... RCONK208.
RC-C, Part I................... M10.d.......................... Other loans.............. RCONF589.
RC-C, Part I................... M11.a.(1)...................... Construction, land RCONF590.
development, and other
land loans.
RC-C, Part I................... M11.a.(2)...................... Secured by farmland RCONF591.
(including farm
residential and other
improvements).
RC-C, Part I................... M11.a.(3)(a)................... Revolving, open-end loans RCONF592.
secured by 1-4 family
residential properties
and extended under lines
of credit.
RC-C, Part I................... M11.a.(3)(b)(1)................ Secured by first liens... RCONF593.
RC-C, Part I................... M11.a.(3)(b)(2)................ Secured by junior liens.. RCONF594.
RC-C, Part I................... M11.a.(4)...................... Secured by multifamily (5 RCONF595.
or more) residential
properties.
RC-C, Part I................... M11.a.(5)...................... Secured by nonfarm RCONF596.
nonresidential
properties.
RC-C, Part I................... M11.b.......................... Commercial and industrial RCONF597.
loans.
RC-C, Part I................... M11.c.(1)...................... Credit cards............. RCONF598.
RC-C, Part I................... M11.c.(2)...................... Other revolving credit RCONF599.
plans.
RC-C, Part I................... M11.c.(3)...................... Automobile loans......... RCONK195.
RC-C, Part I................... M11.c.(4)...................... Other consumer loans..... RCONK209.
RC-C, Part I................... M11.d.......................... Other loans.............. RCONF601.
RC-C, Part I................... M12.a.......................... Loans secured by real RCONG091, RCONG092,
estate (Columns A RCONG093.
through C).
RC-C, Part I................... M12.b.......................... Commercial and industrial RCONG094, RCONG095,
loans (Columns A through RCONG096.
C).
RC-C, Part I................... M12.c.......................... Loans to individuals for RCONG097, RCONG098,
household, family and RCONG099.
other personal
expenditures (Columns A
through C).
RC-C, Part I................... M12.d.......................... All other loans and all RCONG100, RCONG101,
leases (Columns A RCONG102.
through C).
Note: Memorandum items
12.a through 12.d of
Schedule RC-C, Part I,
will be combined into
data items for ``Total
loans and leases''
(Columns A through C)..
RC-E........................... M6.a *......................... Total deposits in those RCONP753.
noninterest-bearing
transaction account
deposit products
intended primarily for
individuals for
personal, household, or
family use.

[[Page 2459]]

RC-E........................... M6.b *......................... Total deposits in those RCONP754.
interest-bearing
transaction account
deposit products
intended primarily for
individuals for
personal, household, or
family use.
RC-E........................... M6.c *......................... Total deposits in all RCONP755.
other transaction
accounts of individuals,
partnerships, and
corporations.
RC-E........................... M7.a.(1) *..................... Total deposits in those RCONP756.
MMDA deposit products
intended primarily for
individuals for
personal, household, or
family use.
RC-E........................... M7.a.(2) *..................... Deposits in all other RCONP757.
MMDAs of individuals,
partnerships, and
corporations.
RC-E........................... M7.b.(1) *..................... Total deposits in those RCONP758.
other savings deposit
account deposit products
intended primarily for
individuals for
personal, household, or
family use.
RC-E........................... M7.b.(2) *..................... Deposits in all other RCONP759.
savings deposit accounts
of individuals,
partnerships, and
corporations.
RC-L........................... 1.a.(1)........................ Unused commitments for RCONJ477.
Home Equity Conversion
Mortgage (HECM) reverse
mortgages outstanding
that are held for
investment (included in
item 1.a above).
RC-L........................... 1.a.(2)........................ Unused commitments for RCONJ478.
proprietary reverse
mortgages outstanding
that are held for
investment (included in
item 1.a).
RC-L........................... 2.a *.......................... Amount of financial RCON3820.
standby letters of
credit conveyed to
others.
RC-L........................... 3.a *.......................... Amount of performance RCON3822.
standby letters of
credit conveyed to
others.
RC-L........................... 7.a.(1)........................ Credit default swaps RCONC968, RCONC969.
(Columns A and B).
RC-L........................... 7.a.(2)........................ Total return swaps RCONC970, RCONC971.
(Columns A and B).
RC-L........................... 7.a.(3)........................ Credit options (Columns A RCONC972, RCONC973.
and B).
RC-L........................... 7.a.(4)........................ Other credit derivatives RCONC974, RCONC975.
(Columns A and B).
RC-L........................... 7.b.(1)........................ Gross positive fair value RCONC219, RCONC221.
(Columns A and B).
RC-L........................... 7.b.(2)........................ Gross negative fair value RCONC220, RCONC222.
(Columns A and B).
RC-L........................... 7.c.(1)(a)..................... Sold protection.......... RCONG401.
RC-L........................... 7.c.(1)(b)..................... Purchased protection..... RCONG402.
RC-L........................... 7.c.(2)(a)..................... Sold protection.......... RCONG403.
RC-L........................... 7.c.(2)(b)..................... Purchased protection that RCONG404.
is recognized as a
guarantee for regulatory
capital purposes.
RC-L........................... 7.c.(2)(c)..................... Purchased protection that RCONG405.
is not recognized as a
guarantee for regulatory
capital purposes.
RC-L........................... 7.d.(1)(a)..................... Investment grade (Columns RCONG406, RCONG407,
A through C). RCONG408.
RC-L........................... 7.d.(1)(b)..................... Sub-investment grade RCONG409, RCONG410,
(Columns A through C). RCONG411.
RC-L........................... 7.d.(2)(a)..................... Investment grade (Columns RCONG412, RCONG413,
A through C). RCONG414.
RC-L........................... 7.d.(2)(b)..................... Sub-investment grade RCONG415, RCONG416,
(Columns A through C). RCONG417.
RC-L........................... 8.............................. Spot foreign exchange RCON8765.
contracts.
RC-L........................... 9.b............................ Commitments to purchase RCON3434.
when-issued securities.
RC-L........................... 10.a........................... Commitments to sell when- RCON3435.
issued securities.
RC-L........................... 12.a........................... Futures contracts RCON8693, RCON8694,
(Columns A through D). RCON8695,
RCON8696.
RC-L........................... 12.b........................... Forward contracts RCON8697, RCON8698,
(Columns A through D). RCON8699,
RCON8700.
RC-L........................... 12.c.(1)....................... Written options (Columns RCON8701, RCON8702,
A through D). RCON8703,
RCON8704.
RC-L........................... 12.c.(2)....................... Purchased options RCON8705, RCON8706,
(Columns A through D). RCON8707,
RCON8708.
RC-L........................... 12.d.(1)....................... Written options (Columns RCON8709, RCON8710,
A through D). RCON8711,
RCON8712.
RC-L........................... 12.d.(2)....................... Purchased options RCON8713, RCON8714,
(Columns A through D). RCON8715,
RCON8716.
RC-L........................... 12.e........................... Swaps (Columns A through RCON3450, RCON3826,
D). RCON8719,
RCON8720.
RC-L........................... 13............................. Total gross notional RCONA127, RCON8723,
amount of derivative RCON8724.
contracts held for
trading (Columns B
through D).
RC-L........................... 14............................. Total gross notional RCON8726, RCON8727,
amount of derivative RCON8728.
contracts held for
purposes other than
trading (Columns B
through D).
RC-L........................... 14.a........................... Interest rate swaps where RCONA589.
the bank has agreed to
pay a fixed rate.
RC-L........................... 15.a.(1)....................... Gross positive fair value RCON8733, RCON8734,
(Columns A through D). RCON8735,
RCON8736.
RC-L........................... 15.a.(2)....................... Gross negative fair value RCON8737, RCON8738,
(Columns A through D). RCON8739,
RCON8740.
RC-L........................... 15.b.(1)....................... Gross positive fair value RCON8741, RCON8742,
(Columns A through D). RCON8743,
RCON8744.

[[Page 2460]]

RC-L........................... 15.b.(2)....................... Gross negative fair value RCON8745, RCON8746,
(Columns A through D). RCON8747,
RCON8748.
RC-L........................... 16.a *......................... Net current credit RCONG418, RCONG419,
exposure (Columns A RCONG420,
through E). RCONG421,
RCONG422.
RC-L........................... 16.b.(1) *..................... Cash--U.S. dollar RCONG423, RCONG424,
(Columns A through E). RCONG425,
RCONG426,
RCONG427.
RC-L........................... 16.b.(2) *..................... Cash--Other currencies RCONG428, RCONG429,
(Columns A through E). RCONG430,
RCONG431,
RCONG432.
RC-L........................... 16.b.(3) *..................... U.S. Treasury securities RCONG433, RCONG434,
(Columns A through E). RCONG435,
RCONG436,
RCONG437.
RC-L........................... 16.b.(4) *..................... U.S. Government agency RCONG438, RCONG439,
and U.S. Government- RCONG440,
sponsored agency debt RCONG441,
securities (Columns A RCONG442.
through E).
RC-L........................... 16.b.(5) *..................... Corporate bonds (Columns RCONG443, RCONG444,
A through E). RCONG445,
RCONG446,
RCONG447.
RC-L........................... 16.b.(6) *..................... Equity securities RCONG448, RCONG449,
(Columns A through E). RCONG450,
RCONG451,
RCONG452.
RC-L........................... 16.b.(7) *..................... All other collateral RCONG453, RCONG454,
(Columns A through E). RCONG455,
RCONG456,
RCONG457.
RC-L........................... 16.b.(8) *..................... Total fair value of RCONG458, RCONG459,
collateral (sum of items RCONG460,
16.b.(1) through (7)) RCONG461,
(Columns A through E). RCONG462.
RC-M........................... 13.a.(1)(a)(1)................. 1-4 family residential RCONK169.
construction loans.
RC-M........................... 13.a.(1)(a)(2)................. Other construction loans RCONK170.
and all land development
and other land loans.
RC-M........................... 13.a.(1)(b).................... Secured by farmland...... RCONK171.
RC-M........................... 13.a.(1)(c)(1)................. Revolving, open-end loans RCONK172.
secured by 1-4 family
residential properties
and extended under lines
of credit.
RC-M........................... 13.a.(1)(c)(2)(a).............. Secured by first liens... RCONK173.
RC-M........................... 13.a.(1)(c)(2)(b).............. Secured by junior liens.. RCONK174.
RC-M........................... 13.a.(1)(d).................... Secured by multifamily (5 RCONK175.
or more) residential
properties.
RC-M........................... 13.a.(1)(e)(1)................. Loans secured by owner- RCONK176.
occupied nonfarm
nonresidential
properties.
RC-M........................... 13.a.(1)(e)(2)................. Loans secured by other RCONK177.
nonfarm nonresidential
properties.
RC-M........................... 13.a.(3)....................... Commercial and industrial RCONK179.
loans.
RC-M........................... 13.a.(4)(a).................... Credit cards............. RCONK180.
RC-M........................... 13.a.(4)(b).................... Automobile loans......... RCONK181.
RC-M........................... 13.a.(4)(c).................... Other (includes revolving RCONK182.
credit plans other than
credit cards and other
consumer loans).
RC-M........................... 13.a.(5)....................... All other loans and all RCONK183.
leases.
RC-M........................... 13.b.(1)....................... Construction, land RCONK187.
development, and other
land.
RC-M........................... 13.b.(2)....................... Farmland................. RCONK188.
RC-M........................... 13.b.(3)....................... 1-4 family residential RCONK189.
properties.
RC-M........................... 13.b.(4)....................... Multifamily (5 or more) RCONK190.
residential properties.
RC-M........................... 13.b.(5)....................... Nonfarm nonresidential RCONK191.
properties.
RC-M........................... 13.c........................... Debt securities (included RCONJ461.
in Schedule RC, items
2.a and 2.b).
RC-M........................... 13.d........................... Other assets (exclude RCONJ462.
FDIC loss-sharing
indemnification assets).
RC-N........................... 6.............................. Loans to foreign RCON5389, RCON5390,
governments and official RCON5391.
institutions (Columns A
through C).
RC-N........................... 11.a.(1)(a).................... 1-4 family residential RCONK045, RCONK046,
construction loans RCONK047.
(Columns A through C).
RC-N........................... 11.a.(1)(b).................... Other construction loans RCONK048, RCONK049,
and all land development RCONK050.
and other land loans
(Columns A through C).
RC-N........................... 11.a.(2)....................... Secured by farmland RCONK051, RCONK052,
(Columns A through C). RCONK053.
RC-N........................... 11.a.(3)(a).................... Revolving, open-end loans RCONK054, RCONK055,
secured by 1-4 family RCONK056.
residential properties
and extended under lines
of credit (Columns A
through C).
RC-N........................... 11.a.(3)(b)(1)................. Secured by first liens RCONK057, RCONK058,
(Columns A through C). RCONK059.
RC-N........................... 11.a.(3)(b)(2)................. Secured by junior liens RCONK060, RCONK061,
(Columns A through C). RCONK062.
RC-N........................... 11.a.(4)....................... Secured by multifamily (5 RCONK063, RCONK064,
or more) residential RCONK065.
properties (Columns A
through C).
RC-N........................... 11.a.(5)(a).................... Loans secured by owner- RCONK066, RCONK067,
occupied nonfarm RCONK068.
nonresidential
properties (Columns A
through C).

[[Page 2461]]

RC-N........................... 11.a.(5)(b).................... Loans secured by other RCONK069, RCONK070,
nonfarm nonresidential RCONK071.
properties (Columns A
through C).
RC-N........................... 11.c........................... Commercial and industrial RCONK075, RCONK076,
loans (Columns A through RCONK077.
C).
RC-N........................... 11.d.(1)....................... Credit cards (Columns A RCONK078, RCONK079,
through C). RCONK080.
RC-N........................... 11.d.(2)....................... Automobile loans (Columns RCONK081, RCONK082,
A through C). RCONK083.
RC-N........................... 11.d.(3)....................... Other (includes revolving RCONK084, RCONK085,
credit plans other than RCONK086.
credit cards and other
consumer loans) (Columns
A through C).
RC-N........................... 11.e........................... All other loans and all RCONK087, RCONK088,
leases (Columns A RCONK089.
through C).
RC-N........................... M1.e.(1)....................... To U.S. addressees RCONK120, RCONK121,
(domicile) (Columns A RCONK122.
through C).
RC-N........................... M1.e.(2)....................... To non-U.S. addressees RCONK123, RCONK124,
(domicile) (Columns A RCONK125.
through C).
RC-N........................... M3.a........................... Loans secured by real RCON1248, RCON1249,
estate to non-U.S. RCON1250.
addressees (domicile)
(included in Schedule RC-
N, item 1) (Columns A
through C).
RC-N........................... M3.b........................... Loans to and acceptances RCON5380, RCON5381,
of foreign banks RCON5382.
(included in Schedule RC-
N, item 2) (Columns A
through C).
RC-N........................... M3.c........................... Commercial and industrial RCON1254, RCON1255,
loans to non-U.S. RCON1256.
addressees (domicile)
(included in Schedule RC-
N, item 4) (Columns A
through C).
RC-N........................... M3.d........................... Leases to individuals for RCONF166, RCONF167,
household, family, and RCONF168.
other personal
expenditures (included
in Schedule RC-N, item
8) (Columns A through C).
RC-N........................... M5.b.(1)....................... Loans measured at fair RCONF664, RCONF665,
value: Fair value RCONF666.
(Columns A through C).
RC-N........................... M5.b.(2)....................... Loans measured at fair RCONF667, RCONF668,
value: Unpaid principal RCONF669.
balance (Columns A
through C).
RC-N........................... M6............................. Derivative contracts: RCON3529, RCON3530.
Fair value of amounts
carried as assets
(Columns A and B).
RC-O........................... M2 *........................... Estimated amount of RCON5597.
uninsured deposits,
including related
interest accrued and
unpaid.
RC-O........................... M6.a *......................... Special mention.......... RCONK663.
RC-O........................... M6.b *......................... Substandard.............. RCONK664.
RC-O........................... M6.c *......................... Doubtful................. RCONK665.
RC-O........................... M6.d *......................... Loss..................... RCONK666.
RC-O........................... M7.a *......................... Nontraditional 1-4 family RCONN025.
residential mortgage
loans.
RC-O........................... M7.b *......................... Securitizations of RCONN026.
nontraditional 1-4
family residential
mortgage loans.
RC-O........................... M8.a *......................... Higher-risk consumer RCONN027.
loans.
RC-O........................... M8.b *......................... Securitizations of higher- RCONN028.
risk consumer loans.
RC-O........................... M9.a *......................... Higher-risk commercial RCONN029.
and industrial loans and
securities.
RC-O........................... M9.b *......................... Securitizations of higher- RCONN030.
risk commercial and
industrial loans and
securities.
RC-O........................... M10.a *........................ Total unfunded RCONK676.
commitments.
RC-O........................... M10.b *........................ Portion of unfunded RCONK677.
commitments guaranteed
or insured by the U.S.
government (including
the FDIC).
RC-O........................... M11 *.......................... Amount of other real RCONK669.
estate owned recoverable
from the U.S. government
under guarantee or
insurance provisions
(excluding FDIC loss-
sharing agreements).
RC-O........................... M12 *.......................... Nonbrokered time deposits RCONK678.
of more than $250,000
(included in Schedule RC-
E, Memorandum item 2.d).
RC-O........................... M13.a *........................ Construction, land RCONN177.
development, and other
land loans secured by
real estate.
RC-O........................... M13.b *........................ Loans secured by RCONN178.
multifamily residential
and nonfarm
nonresidential
properties.
RC-O........................... M13.c *........................ Closed-end loans secured RCONN179.
by first liens on 1-4
family residential
properties.
RC-O........................... M13.d *........................ Closed-end loans secured RCONN180.
by junior liens on 1-4
family residential
properties and
revolving, open-end
loans secured by 1-4
family residential
properties and extended
under lines of credit.
RC-O........................... M13.e *........................ Commercial and industrial RCONN181.
loans.
RC-O........................... M13.f *........................ Credit card loans to RCONN182.
individuals for
household, family, and
other personal
expenditures.
RC-O........................... M13.g *........................ All other loans to RCONN183.
individuals for
household, family, and
other personal
expenditures.
RC-O........................... M13.h *........................ Non-agency residential RCONM963.
mortgage-backed
securities.
RC-O........................... M14 *.......................... Amount of the RCONK673.
institution's largest
counterparty exposure.
RC-O........................... M15 *.......................... Total amount of the RCONK674.
institution's 20 largest
counterparty exposures.

[[Page 2462]]

RC-O........................... M16 *.......................... Portion of loans RCONL189.
restructured in troubled
debt restructurings that
are in compliance with
their modified terms and
are guaranteed or
insured by the U.S.
government (including
the FDIC) (included in
Schedule RC-C, part I,
Memorandum item 1).
RC-O........................... M17.a *........................ Total deposit liabilities RCONL194.
before exclusions
(gross) as defined in
Section 3(l) of the
Federal Deposit
Insurance Act and FDIC
regulations.
RC-O........................... M17.b *........................ Total allowable RCONL195.
exclusions, including
interest accrued and
unpaid on allowable
exclusions.
RC-O........................... M17.c *........................ Unsecured ``Other RCONL196.
borrowings'' with a
remaining maturity of
one year or less.
RC-O........................... M17.d *........................ Estimated amount of RCONL197.
uninsured deposits,
including related
interest accrued and
unpaid.
RC-O........................... M18.a *........................ ``Nontraditional 1-4 RCONM964, RCONM965,
family residential RCONM966,
mortgage loans'' as RCONM967,
defined for assessment RCONM968,
purposes only in FDIC RCONM969,
regulations (Columns A RCONM970,
through O). RCONM971,
RCONM972,
RCONM973,
RCONM974,
RCONM975,
RCONM976,
RCONM977,
RCONM978.
RC-O........................... M18.b *........................ Closed-end loans secured RCONM979, RCONM980,
by first liens on 1-4 RCONM981,
family residential RCONM982,
properties (Columns A RCONM983,
through O). RCONM984,
RCONM985,
RCONM986,
RCONM987,
RCONM988,
RCONM989,
RCONM990,
RCONM991,
RCONM992,
RCONM993.
RC-O........................... M18.c *........................ Closed-end loans secured RCONM994, RCONM995,
by junior liens on 1-4 RCONM996,
family residential RCONM997,
properties (Columns A RCONM998,
through O). RCONM999,
RCONN001,
RCONN002,
RCONN003,
RCONN004,
RCONN005,
RCONN006,
RCONN007,
RCONN008,
RCONN009.
RC-O........................... M18.d *........................ Revolving, open-end loans RCONN010, RCONN011,
secured by 1-4 family RCONN012,
residential properties RCONN013,
and extended under lines RCONN014,
of credit (Columns A RCONN015,
through O). RCONN016,
RCONN017,
RCONN018,
RCONN019,
RCONN020,
RCONN021,
RCONN022,
RCONN023,
RCONN024.
RC-O........................... M18.e *........................ Credit cards (Columns A RCONN040, RCONN041,
through O). RCONN042,
RCONN043,
RCONN044,
RCONN045,
RCONN046,
RCONN047,
RCONN048,
RCONN049,
RCONN050,
RCONN051,
RCONN052,
RCONN053,
RCONN054.
RC-O........................... M18.f *........................ Automobile loans (Columns RCONN055, RCONN056,
A through O). RCONN057,
RCONN058,
RCONN059,
RCONN060,
RCONN061,
RCONN062,
RCONN063,
RCONN064,
RCONN065,
RCONN066,
RCONN067,
RCONN068,
RCONN069.
RC-O........................... M18.g *........................ Student loans (Columns A RCONN070, RCONN071,
through O). RCONN072,
RCONN073,
RCONN074,
RCONN075,
RCONN076,
RCONN077,
RCONN078,
RCONN079,
RCONN080,
RCONN081,
RCONN082,
RCONN083,
RCONN084.

[[Page 2463]]

RC-O........................... M18.h *........................ Other consumer loans and RCONN085, RCONN086,
revolving credit plans RCONN087,
other than credit cards RCONN088,
(Columns A through O). RCONN089,
RCONN090,
RCONN091,
RCONN092,
RCONN093,
RCONN094,
RCONN095,
RCONN096,
RCONN097,
RCONN098,
RCONN099.
RC-O........................... M18.i *........................ Consumer leases (Columns RCONN100, RCONN101,
A through O). RCONN102,
RCONN103,
RCONN104,
RCONN105,
RCONN106,
RCONN107,
RCONN108,
RCONN109,
RCONN110,
RCONN111,
RCONN112,
RCONN113,
RCONN114.
RC-O........................... M18.j *........................ Total (Columns A through RCONN115, RCONN116,
N). RCONN117,
RCONN118,
RCONN119,
RCONN120,
RCONN121,
RCONN122,
RCONN123,
RCONN124,
RCONN125,
RCONN126,
RCONN127,
RCONN128.
----------------------------------------------------------------------------------------------------------------

Data Items With a Change in Frequency of Collection

Semiannual Reporting
[June and December]
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RC-B............................ M6.a through M6.g. Structured financial RCONG348, RCONG349, RCONG350,
products by underlying RCONG351, RCONG352, RCONG353,
collateral or RCONG354, RCONG355, RCONG356,
reference assets RCONG357, RCONG358, RCONG359,
(Columns A through D). RCONG360, RCONG361, RCONG362,
RCONG363, RCONG364, RCONG365,
RCONG366, RCONG367, RCONG368,
RCONG369, RCONG370, RCONG371,
RCONG372, RCONG373, RCONG374,
RCONG375
RC-C, Part I.................... M4................ Adjustable-rate closed- RCON5370
end loans secured by
first liens on 1-4
family residential
properties (included
in Schedule RC-C, Part
I, item 1.c.(2)(a),
column B).
RC-F............................ 6.a through 6.i... All other assets: RCON2166, RCON1578, RCONC010,
Itemized items greater RCONC436, RCONJ448, RCON3549,
than $100,000 that RCON3550, RCON3551
exceed 25 percent of
this item.
RC-G............................ 4.a through 4.g... All other liabilities: RCON3066, RCONC011, RCON2932,
Itemized items greater RCONC012, RCON3552, RCON3553,
than $100,000 that RCON3554
exceed 25 percent of
this item.
RC-L............................ 9.c through 9.f... All other off-balance RCONC978, RCON3555, RCON3556,
sheet liabilities RCON3557
(exclude derivatives):
Itemized items over 25
percent of Schedule
RC, item 27.a. ``Total
bank equity capital''.
RC-L............................ 10.b through 10.e. All other off-balance RCONC5592, RCON5593, RCON5594,
sheet assets (exclude RCON5595
derivatives): Itemized
items over 25 percent
of Schedule RC, item
27.a. ``Total bank
equity capital''.
RC-N............................ M5.a.............. Loans and leases held RCONC240, RCONC241, RCONC226
for sale (Columns A
through C).
----------------------------------------------------------------------------------------------------------------

[[Page 2464]]

Annual Reporting
[December]
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RI............................. M12 Noncash income from negative RIADF228
amortization on closed-end loans
secured by 1-4 family
residential properties (included
in Schedule RI, item 1.a.(1)(a)).
RC-C, Part I................... M8.b Total maximum remaining amount of RCONF231
negative amortization
contractually permitted on
closed-end loans secured by 1-4
family residential properties.
RC-C, Part I................... M8.c Total amount of negative RCONF232
amortization on closed-end loans
secured by 1-4 family
residential properties included
in the amount reported in
Memorandum item 8.a.
RC-M........................... 6 Does the reporting bank sell RCONB569
private label or third-party
mutual funds and annuities?
RC-M........................... 7 Assets under the reporting bank's RCONB570
management in proprietary mutual
funds and annuities.
RC-M........................... 9 Do any of the bank's Internet RCON4088
websites have transactional
capability, i.e., allow the
bank's customers to execute
transactions on their accounts
through the website?
RC-M........................... 11 Does the bank act as trustee or RCONG463
custodian for Individual
Retirement Accounts, Health
Savings Accounts, and other
similar accounts?
RC-M........................... 12 Does the bank provide custody, RCONG464
safekeeping, or other services
involving the acceptance of
order for the sale or purchase
of securities?
RC-M........................... 14.a Total assets of captive insurance RCONK193
subsidiaries.
RC-M........................... 14.b Total assets of captive RCONK194
reinsurance subsidiaries.
----------------------------------------------------------------------------------------------------------------

Data Items Moved to Schedule SU--Supplemental Information
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RI............................. M13.a Net gains (losses) on assets..... RIADF551
RI............................. M13.b Net gains (losses) on liabilities RIADF553
RI-B, Part I................... M4 Uncollectible retail credit card RIADC388
fees and finance charges
reversed against income (i.e.,
not included in charge-offs
against the allowance for loan
and lease losses).
RI-B, Part II.................. M2 Separate valuation allowance for RIADC389
uncollectible retail credit card
fees and finance charges.
RI-B, Part II.................. M3 Amount of allowance for loan and RIADC390
lease losses attributable to
retail credit card fees and
finance charges.
RC-C, Part I................... M6 Outstanding credit card fees and RCONC391
finance charges included in
Schedule RC-C, part I, item 6.a.
RC-L........................... 13 Total gross notional amount of RCONA126
derivative contracts held for
trading (Column A).
RC-L........................... 14 Total gross notional amount of RCON8725
derivative contracts held for
purposes other than trading
(Columns A).
RC-M........................... 13.b.(7) Portion of covered other real RCONK192
estate owned included in items
13.b.(1) through (5) that is
protected by FDIC loss-sharing
agreements.
RC-N........................... 11.f Portion of covered loans and RCONK102, RCONK103,
leases included in items 11.a RCONK104
through 11.e that is protected
by FDIC loss-sharing agreements
(Columns A through C).
RC-S........................... M4 Outstanding fees and credit card RCONC407
charges included in Schedule RC-
S, item 1, column C.
----------------------------------------------------------------------------------------------------------------

Appendix C

FFIEC 031 for March 31, 2017: Data Items Removed or Change in Reporting
Threshold

[[Page 2465]]

RC-C, Part II.................. 5 Yes/No indicator whether all or RCON6860
substantially all of the dollar
volume of `Loans secured by
farmland' and `Loans to finance
agricultural production and
other loans to farmers' have
original amounts of $100,000 or
less.
RC-C, Part II.................. 6.a Total number of loans secured by RCON5576
farmland currently outstanding.
RC-C, Part II.................. 6.b Total number of loans to finance RCON5577
agricultural production and
other loans to farmers currently
outstanding.
RC-E, Part I................... M6.c Total deposits in all other RCONP755
transaction accounts of
individuals, partnerships, and
corporations.
RC-M........................... 13.a.(2) Loans to finance agricultural RCFDK178
production and other loans to
farmers covered by loss-sharing
agreements with the FDIC.
RC-M........................... 13.a.(3) Commercial and industrial loans RCFDK179
covered by loss-sharing
agreements with the FDIC.
RC-M........................... 13.a.(4)(a) Credit card loans covered by loss- RCFDK180
sharing agreements with the FDIC.
RC-M........................... 13.a.(4)(b) Automobile loans covered by loss- RCFDK181
sharing agreements with the FDIC.
RC-M........................... 13.a.(4)(c) All other consumer loans covered RCFDK182
by loss-sharing agreements with
the FDIC.
RC-N........................... 11.b Loans to finance agricultural RCFDK072, RCFDK073,
production and other loans to RCFDK074
farmers covered by loss-sharing
agreements with the FDIC (Column
A through Column C).
RC-N........................... 11.c Commercial and industrial loans RCFDK075, RCFDK076,
covered by loss-sharing RCFDK077
agreements with the FDIC (Column
A through Column C).
RC-N........................... 11.d.(1) Credit card loans covered by loss- RCFDK078, RCFDK079,
sharing agreements with the FDIC RCFDK080
(Column A through Column C).
RC-N........................... 11.d.(2) Automobile loans covered by loss- RCFDK081, RCFDK082,
sharing agreements with the FDIC RCFDK083
(Column A through Column C).
RC-N........................... 11.d.(3) All other consumer loans covered RCFDK084, RCFDK085,
by loss-sharing agreements with RCFDK086
the FDIC (Column A through
Column C).
----------------------------------------------------------------------------------------------------------------

Change in Reporting Threshold
[To be completed by banks with $10 billion or more in total assets]
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RI............................. M9.a Net gains (losses) on credit RIADC889
derivatives held for trading.
RI............................. M9.b Net gains (losses) on credit RIADC890
derivatives held for purposes
other than trading.
RC-E, Part II.................. 1 Deposits of Individuals, RCFNB553
partnerships, and corporations
(include all certified and
official checks).
RC-E, Part II.................. 2 Deposits of U.S. banks and other RCFNB554
U.S. depository institutions in
foreign offices.
RC-E, Part II.................. 3 Deposits of foreign banks in RCFN2625
foreign offices.
RC-E, Part II.................. 4 Deposits of foreign governments RCFN2650
and official institutions in
foreign offices.
RC-E, Part II.................. 5 Deposits of U.S. Government and RCFNB555
states and political
subdivisions in the U.S. in
foreign offices.
RC-E, Part II.................. 6 Total deposits in foreign offices RCFN2200
----------------------------------------------------------------------------------------------------------------
Note: The preceding list of ``Data Items Removed'' from the FFIEC 031 excludes two Call Report data items that
have been approved for removal by OMB effective March 31, 2017, in accordance with the agencies' July 13,
2016, Federal Register notice (81 FR 45357): Schedule RI, Memorandum items 14.a and 14.b.

Change in Reporting Threshold
[To be completed by banks with $10 million or more in average trading assets]
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RI............................. M8.a Trading revenue from interest RIAD8757
rate exposures.
RI............................. M8.b Trading revenue from foreign RIAD8758
exchange exposures.
RI............................. M8.c Trading revenue from equity RIAD8759
security and index exposures.
RI............................. M8.d Trading revenue from commodity RIAD8760
and other exposures.
RI............................. M8.e Trading revenue from credit RIADF186
exposures.
----------------------------------------------------------------------------------------------------------------

Appendix D

FFIEC 041 for March 31, 2017: Data Items Removed or Change in Reporting
Threshold

[[Page 2466]]

Data Items Removed
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM No.
----------------------------------------------------------------------------------------------------------------
RI............................. 1.a.(4) Interest on loans to foreign RIAD4056
governments and official
institutions.
RI............................. 1.e Interest income from trading RIAD4069
assets.
RI-B, Part I................... 2 Loans to depository institutions RIAD4481, RIAD4482
and acceptances of other banks
(Column A through Column B).
RI-B, Part I................... 6 Loans to foreign governments and RIAD4643, RIAD4627
official institutions (Column A
through Column B).
RC-C, Part I................... 2.a.(1) Loans to U.S. branches and RCONB532
agencies of foreign banks.
RC-C, Part I................... 2.a.(2) Loans to other commercial banks RCONB533
in the U.S..
Note: Items 2.a.(1) and 2.a.(2)
of Schedule RC-C, Part I, will
be combined into one data item
for total loans to commercial
banks in the U.S.
RC-C, Part I................... 2.c.(1) Loans to foreign branches of RCONB536
other U.S. banks.
RC-C, Part I................... 2.c.(2) Loans to other banks in foreign RCONB537
countries.
Note: Items 2.c.(1) and 2.c.(2)
of Schedule RC-C, Part I, will
be combined into one data item
for total loans to banks in
foreign countries.
RC-C, Part I................... 7 Loans to foreign governments and RCON2081
official institutions (including
foreign central banks).
RC-E........................... M6.c Total deposits in all other RCONP755
transaction accounts of
individuals, partnerships, and
corporations.
RC-M........................... 13.a.(3) Commercial and industrial loans RCONK179
covered by loss-sharing
agreements with the FDIC.
RC-M........................... 13.a.(4)(a) Credit card loans covered by loss- RCONK180
sharing agreements with the FDIC.
RC-M........................... 13.a.(4)(b) Automobile loans covered by loss- RCONK181
sharing agreements with the FDIC.
RC-M........................... 13.a.(4)(c) All other consumer loans covered RCONK182
by loss-sharing agreements with
the FDIC.
RC-N........................... 6 Loans to foreign governments and RCON5389, RCON5390,
official institutions (Column A RCON5391
through Column C).
RC-N........................... 11.c Commercial and industrial loans RCONK075, RCONK076,
covered by loss-sharing RCONK077
agreements with the FDIC (Column
A through Column C).
RC-N........................... 11.d.(1) Credit card loans covered by loss- RCONK078, RCONK079,
sharing agreements with the FDIC RCONK080
(Column A through Column C).
RC-N........................... 11.d.(2) Automobile loans covered by loss- RCONK081, RCONK082,
sharing agreements with the FDIC RCONK083
(Column A through Column C).
RC-N........................... 11.d.(3) All other consumer loans covered RCONK084, RCONK085,
by loss-sharing agreements with RCONK086
the FDIC (Column A through
Column C).
RC-N........................... M6 Derivative contracts: Fair value RCON3529, RCON3530
of amounts carried as assets
(Column A through Column B).
----------------------------------------------------------------------------------------------------------------
Note: The preceding list of ``Data Items Removed'' from the FFIEC 041 excludes two Call Report data items that
have been approved for removal by OMB effective March 31, 2017, in accordance with the agencies' July 13,
2016, Federal Register notice (81 FR 45357): Schedule RI, Memorandum items 14.a and 14.b.

Change in Reporting Threshold
[To be completed by banks with $10 million or more in average trading assets]
----------------------------------------------------------------------------------------------------------------
Schedule Item Item name MDRM number
----------------------------------------------------------------------------------------------------------------
RI............................. M8.a Trading revenue from interest RIAD8757
rate exposures.
RI............................. M8.b Trading revenue from foreign RIAD8758
exchange exposures.
RI............................. M8.c Trading revenue from equity RIAD8759
security and index exposures.
RI............................. M8.d Trading revenue from commodity RIAD8760
and other exposures.
RI............................. M8.e Trading revenue from credit RIADF186
exposures.
----------------------------------------------------------------------------------------------------------------

[[Page 2467]]

Dated: December 30, 2016.
Karen Solomon,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
Board of Governors of the Federal Reserve System, January 3,
2017.
Robert deV. Frierson,
Secretary of the Board.
Dated at Washington, DC, this 3rd day of January, 2017. Federal
Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2017-00085 Filed 1-6-17; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P

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