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Notice

Proposed Agency Information Collection Activities; Comment Request

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Start Preamble

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. The Federal Financial Institutions Examination Council (FFIEC), of which the agencies are members, has approved the agencies' publication for public comment of a proposal to revise the Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only and Total Assets Less Than $1 Billion (FFIEC 051), the Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only (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 proposed revisions to the FFIEC 051, FFIEC 041, and FFIEC 031 Call Reports would result in an overall reduction in burden. In particular, the proposed revisions would delete or consolidate a number of items and add a new or raise certain existing reporting thresholds. The proposed revisions would take effect as of the June 30, 2018, report date. At the end of the comment period for this notice, the comments and recommendations received will be reviewed to determine whether the FFIEC and the agencies should modify the proposed revisions to the FFIEC 051, FFIEC 041, and FFIEC 031 prior to giving final approval. As required by the PRA, the agencies will then publish a second Federal Register notice for a 30-day comment period and submit the final FFIEC 051, FFIEC 041, and FFIEC 031 to OMB for review and approval.

DATES:

Comments must be submitted on or before January 8, 2018.

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: You may submit comments, which should refer to “FFIEC 031, FFIEC 041, and FFIEC 051,” by any of the following methods:

  • Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
  • Email: regs.comments@occ.treas.gov.
  • Fax: (571) 465-4326.
  • Mail: Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 400 7th Street SW., Suite 3E-218, Washington, DC 20219.

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.

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.

Board: You may submit comments, which should refer to “FFIEC 031, FFIEC 041, and FFIEC 051,” by any of the following methods:

All public comments are available from the Board's Web site at 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 form in Room 3515, 1801 K Street NW. (between 18th and 19th Streets NW.), Washington, DC 20006 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) Start Printed Page 51909395-6974; or by email to oira_submission@omb.eop.gov.

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FOR FURTHER INFORMATION CONTACT:

For further information about the proposed revisions to the Call Report discussed in this notice, please contact any of the agency staff whose names appear below. In addition, copies of the Call Report forms 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.

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., Washington, DC 20429.

End Further Info End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

The agencies propose revisions to data items reported on the FFIEC 051, FFIEC 041, and FFIEC 031 Call Reports.

Report Title: Consolidated Reports of Condition and Income (Call Report).

Form Numbers: FFIEC 051 (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.

OCC

OMB Control No.: 1557-0081.

Estimated Number of Respondents: 1,307 national banks and federal savings associations.

Estimated Average Burden per Response: 46.05 burden hours per quarter to file.

Estimated Total Annual Burden: 240,749 burden hours to file.

Board

OMB Control No.: 7100-0036.

Estimated Number of Respondents: 822 state member banks.

Estimated Average Burden per Response: 50.16 burden hours per quarter to file.

Estimated Total Annual Burden: 164,926 burden hours to file.

FDIC

OMB Control No.: 3064-0052.

Estimated Number of Respondents: 3,710 insured state nonmember banks and state savings associations.

Estimated Average Burden per Response: 44.14 burden hours per quarter to file.

Estimated Total Annual Burden: 655,038 burden hours to file.

The proposed burden-reducing revisions are the result of an ongoing effort by the agencies to reduce the burden associated with the preparation and filing of Call Reports and, as detailed in Appendices B, C, and D, achieve burden reductions by the removal or consolidation of numerous items, and the raising of certain reporting thresholds.

The estimated average burden hours, which reflect an overall reduction, collectively reflect the estimates for the FFIEC 051, the FFIEC 041, and the FFIEC 031 reports for each agency. When the estimates are calculated by type of report across the agencies, the estimated average burden hours per quarter are 38.15 (FFIEC 051), 54.89 (FFIEC 041), and 122.50 (FFIEC 031). 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).

Type of Review: Revision of currently approved collections.

General Description of Reports

These information collections are mandatory pursuant to 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.

Abstract

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 the protection of consumer financial rights, as well as agency-specific missions affecting federally 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.

Current Actions

I. Introduction

As part of an initiative launched by the FFIEC in December 2014 to identify potential opportunities to reduce burden associated with Call Report requirements for community banks, the FFIEC and the agencies have taken several actions, including: (1) The finalization in mid-2016 of a number of burden-reducing changes and other revisions to the Call Report that were implemented in September 2016 and March 2017; (2) outreach to institutions to obtain a better understanding of significant sources of reporting burden in their Call Report preparation processes; (3) the creation of a new streamlined FFIEC 051 Call Report for eligible small institutions [1] that took effect as of the March 31, 2017, report date; and (4) the publication for comment in June 2017 of additional proposed burden-reducing Call Report changes, as well as proposed Call Report revisions that address the definition of “past due” for regulatory reporting purposes and changes in the accounting for equity investments, all of which have a proposed March 31, 2018, effective date.[2]

As another key part of the FFIEC's Call Report burden-reduction initiative for community banks, in 2015 the agencies accelerated the start of the next statutorily mandated review of the existing Call Report data items (Full Start Printed Page 51910Review),[3] which otherwise would not have commenced until 2017. After completing this review, the agencies are required to “reduce or eliminate any requirement to file information or schedules . . . (other than information or schedules that are otherwise required by law)” if the agencies determine that “the continued collection of such information or schedules is no longer necessary or appropriate.” [4] To provide a foundation for the Full Review, users of Call Report data items, who are internal staff at the FFIEC member entities, participated in a series of nine surveys conducted over a 19-month period that began in mid-July 2015 and ended in mid-February 2017. As an integral part of these surveys, users were asked to fully explain the need for each Call Report data item they deem essential, how the data item is used, the frequency with which it is needed, and the population of institutions from which it is needed. Call Report schedules were placed into nine groups and prioritized for review, generally based on the level of burden cited by banking industry representatives. Based on the results of the user surveys and consistent with the statutory requirements governing the Full Review, the agencies have been identifying data items to be considered for removal, less frequent collection, and new or revised reporting thresholds to reduce burden.

Based on the results of the third and final portion of the user surveys and other information, the agencies are proposing various burden-reducing changes in this proposal. The schedules reviewed in the final portion of the user surveys primarily include schedules that collect data on complex or specialized activities. A summary of the FFIEC member entities' uses of the data items retained in the Call Report schedules covered by this portion of the user surveys is included in Appendix A.[5] Several of these schedules were not included in the new FFIEC 051 when it was created. Therefore, revisions proposed in this notice more significantly affect schedules and data items in the FFIEC 041 and FFIEC 031.

In addition, as a framework for the actions it is undertaking, the FFIEC developed a set of guiding principles for use in evaluating potential additions and deletions of Call Report data items and other revisions to the Call Report. In general, data items collected in the Call Report must meet three guiding principles: (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 federally 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.

II. General Discussion of Proposed Call Report Revisions

As discussed above, the Call Report schedules have been reviewed as part of the Full Review, conducted through a series of nine user surveys. The results of the final portion of the surveys were evaluated in the development of this proposal. In addition, the results of certain surveys were re-evaluated and further burden-reducing changes were incorporated into this proposal. In developing this proposal, the agencies were cognizant of the comments and feedback received from the industry, over the course of this FFIEC initiative, requesting that the agencies provide relief from the burden of preparing Call Reports. The proposed revisions to the FFIEC 051, FFIEC 041, and FFIEC 031 are discussed in Sections III.A, III.B, and III.C, respectively.

The schedules reviewed in the portion of the user surveys evaluated in the development of this proposal include:

  • Schedule RI-A—Changes in Bank Equity Capital
  • Schedule RI-C—Disaggregated Data on the Allowance for Loan and Lease Losses [FFIEC 031 and FFIEC 041 only]
  • Schedule RC-A—Cash and Balances Due from Depository Institutions
  • Schedule RC-F—Other Assets
  • Schedule RC-G—Other Liabilities
  • Schedule RC-H—Selected Balance Sheet Items for Domestic Offices [FFIEC 031 only]
  • Schedule RC-I—Assets and Liabilities of IBFs [FFIEC 031 only]
  • Schedule RC-P—1-4 Family Residential Mortgage Banking Activities (in Domestic Offices) [FFIEC 031 and FFIEC 041 only]
  • Schedule RC-Q—Assets and Liabilities Measured at Fair Value on a Recurring Basis [FFIEC 031 and FFIEC 041 only]
  • Schedule RC-S—Servicing, Securitization, and Asset Sale Activities [FFIEC 031 and FFIEC 041 only]
  • Schedule RC-T—Fiduciary and Related Services
  • Schedule RC-V—Variable Interest Entities [FFIEC 031 and FFIEC 041 only]

The schedules re-evaluated in the development of this proposal include:

  • Schedule RC-B—Securities
  • Schedule RC-N—Past Due and Nonaccrual Loans, Leases, and Other Assets
  • Schedule SU—Supplemental Information [FFIEC 051 only]

Table 1 summarizes the changes already finalized and implemented as part of the FFIEC's community bank Call Report burden-reduction initiative.

Table 1—Data Items Revised as of March 31, 2017

Finalized call report revisions051041031
Items Removed, Net *9676068
Change in Item Frequency to Semiannual96
Change in Item Frequency to Annual10
Items with a New or Increased Reporting Threshold713
* “Items Removed, Net” reflects the effects of consolidating existing items, adding control totals, and, for the FFIEC 051, relocating individual items from other schedules to Schedule SU, some of which were consolidated in Schedule SU. In addition, included in this number for the FFIEC 051, approximately 300 items were items that institutions with less than $1 billion in total assets were exempt from reporting due to existing reporting thresholds in the FFIEC 041.
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Table 2 summarizes the proposed burden-reducing revisions to data items included in the June 2017 Call Report proposal that would take effect March 31, 2018.

Table 2—Proposed Data Revisions in June 2017

Proposed call report revisions051041031
Items Proposed to be Removed, Net *5410686
Proposed Change in Item Frequency to Semiannual173131
Proposed Change in Item Frequency to Annual2633
Items with a Proposed New or Increased Reporting Threshold26106178
* “Items Proposed to be Removed, Net” reflects the effects of consolidating existing items and relocating individual items to other schedules.

Table 3 summarizes the additional proposed burden-reducing revisions to data items included in this notice. The proposed revisions are discussed in Section III. Detail for each affected data item is shown in Appendix B (FFIEC 051), Appendix C (FFIEC 041), and Appendix D (FFIEC 031).

Table 3—Proposed Data Revisions in This Notice

Proposed call report revisions051041031
Items Proposed to be Removed, Net *15184134
Items with a Proposed New or Increased Reporting Threshold29181213
* “Items Proposed to be Removed, Net” reflects the effects of consolidating existing items and relocating individual items to other schedules.

The Call Report revisions that are the subject of this proposal would take effect June 30, 2018. Additional information on timing of the proposed revisions is provided in Section IV.

III. Detail of Specific Proposed Call Report Revisions

A. Revisions to the FFIEC 051

Schedule RC-A

The agencies propose to remove Schedule RC-A, Cash and Balances Due from Depository Institutions, in its entirety from the FFIEC 051. This schedule is currently completed by institutions with $300 million or more in total assets. The agencies no longer need the current level of detail provided by the existing items in Schedule RC-A from the smaller institutions eligible to file this version of the Call Report who are required to complete this schedule, as sufficient information on cash and due from balances is provided for these institutions in Schedule RC, items 1.a and 1.b.

Schedule RC-B

With respect to Schedule RC-B of the FFIEC 051, the agencies propose to consolidate the reporting of an institution's holdings of those residential mortgage pass-through securities that are currently reported in items 4.a.(1) for those guaranteed by the Government National Mortgage Association (GNMA) and 4.a.(2) for those issued by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC) into a single item 4.a.(1). Existing item 4.a.(3) for other residential mortgage pass-through securities would be renumbered as item 4.a.(2). The agencies no longer need the current level of detail for these holdings from the smaller institutions eligible to file this version of the Call Report.

Schedule RC-F

With respect to Schedule RC-F of the FFIEC 051, the agencies propose to consolidate the reporting of an institution's interest-only strips receivable, which are currently reported in items 3.a for those on mortgage loans and 3.b for those on other financial assets, into a single item 3. The agencies no longer need the current level of detail for these holdings in the Call Report.

In addition, the agencies propose to remove the preprinted caption for retained interests in accrued interest receivable related to securitized credit cards (item 6.d) as few institutions report having this component of other assets in an amount in excess of the existing reporting threshold for disclosing this component.[6] Items 6.e through 6.k would be renumbered as items 6.d through 6.j.

Schedule RC-T

With respect to Schedule RC-T of the FFIEC 051, the agencies propose to increase the reporting threshold for reporting the components of fiduciary and related services income. For institutions with total fiduciary assets greater than $100 million but less than or equal to $250 million that do not meet the fiduciary income test for quarterly reporting,[7] the agencies propose to no longer require the reporting of items 14 through 26. There would be no change to the reporting requirements applicable to items 14 through 26 for all other institutions. The agencies no longer need the current level of detail on fiduciary and related services income from institutions with less than $250 million in total fiduciary assets that do not meet the fiduciary income test.

In addition, the agencies propose to add a reporting threshold for reporting the number and market value of collective investment funds and common trust funds by type of fund in Memorandum items 3.a through 3.g. For institutions at which these funds have a total market value of less than $1 billion (as of the preceding December 31), the agencies propose to no longer require the reporting of Memorandum items 3.a through 3.g. Such institutions would report only the total number and market value of their collective investment funds and common trust funds in Memorandum item 3.h. Institutions at which the total market value of their Start Printed Page 51912collective investment funds and common trust funds is $1 billion or more would continue to report Memorandum items 3.a through 3.h. The agencies no longer need the current level of detail on collective investment funds and common trust funds in the Call Report from institutions at which the total market value of these funds is less than $1 billion.

Schedule SU

With respect to Schedule SU of the FFIEC 051, the agencies propose to remove item 8.e on the amount of outstanding credit card fees and finance charges included in credit card receivables sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements, which is currently applicable to eligible small institutions that specialize in credit card lending. The agencies no longer need this information from these smaller credit card lending institutions.

B. Revisions to the FFIEC 041

Schedule RC-A

With respect to Schedule RC-A of the FFIEC 041, the agencies propose to consolidate the reporting of an institution's balances due from depository institutions in the United States, which are currently reported in items 2.a for balances due from U.S. branches and agencies of foreign banks and 2.b for balances due from other commercial banks and other depository institutions in the United States, into a single item 2. In addition, the agencies propose to consolidate the reporting of an institution's balances due from banks in foreign countries and foreign central banks, which are currently reported in items 3.a for balances due from foreign branches of other U.S. banks and 3.b for balances due from banks in foreign countries and foreign central banks, into a single item 3. The agencies no longer need the current level of detail for these balances in the Call Report.

Schedule RC-F

With respect to Schedule RC-F of the FFIEC 041, the agencies propose to consolidate the reporting of an institution's interest-only strips receivable, which are currently reported in items 3.a for those on mortgage loans and 3.b for those on other financial assets, into a single item 3. The agencies no longer need the current level of detail for these holdings in the Call Report.

In addition, the agencies propose to remove the preprinted caption for retained interests in accrued interest receivable related to securitized credit cards (item 6.d) as few institutions report having this component of other assets in an amount in excess of the existing reporting threshold for disclosing this component.[8] Items 6.e through 6.k would be renumbered as items 6.d through 6.j.

Schedule RC-N

With respect to Schedule RC-N of the FFIEC 041, the agencies propose to remove the data items for reporting the past due and nonaccrual status of the fair value and unpaid principal balance of held-for-investment loans measured at fair value, which are currently reported in Memorandum items 5.b.(1) and 5.b.(2), columns A through C. The agencies no longer need this current level of detail in the Call Report. The agencies would renumber Memorandum item 5.a, “Loans and leases held for sale,” as Memorandum item 5 for columns A through C.

Schedule RC-P

With respect to Schedule RC-P of the FFIEC 041, the agencies propose to modify the reporting criteria for this schedule by removing the current $1 billion asset-size threshold and applying only the existing activity-based threshold to all institutions, regardless of size. As proposed, Schedule RC-P would be completed by institutions where any of the following residential mortgage banking activities exceeds $10 million for two consecutive quarters:

  • Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loan originations and purchases for resale from all sources during a calendar quarter; or
  • Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loan sales during a calendar quarter; or
  • Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loans held for sale or trading at calendar quarter-end.

The agencies believe an activity-based threshold alone is more appropriate than an asset-size threshold for determining which institutions should file this schedule.

The agencies also propose to consolidate the 1-4 family residential mortgage banking activity detail collected in this schedule for closed-end loans and commitments under open-end loans for retail originations (item 1), wholesale originations and purchases (item 2), mortgage loans sold (item 3), mortgage loans held for sale or trading (item 4), and repurchases and indemnifications of mortgage loans (item 6). Specifically, items 1.a, 1.b, and 1.c.(1) would be combined into new item 1; items 2.a, 2.b, and 2.c.(1) would be combined into new item 2; items 3.a, 3.b, and 3.c.(1) would be combined into new item 3; items 4.a, 4.b, and 4.c.(1) would be combined into new item 4; and items 6.a, 6.b, and 6.c.(1) would be combined into new item 6. The agencies also propose to consolidate noninterest income from the sale, securitization, and servicing of closed-end and open-end 1-4 family residential mortgage loans currently reported in items 5.a and 5.b into a new item 5. In addition, the agencies propose to remove detail on the principal amount funded for open-end loans extended under lines of credit for each of the above listed categories currently reported in items 1.c.(2), 2.c.(2), 3.c.(2), 4.c.(2), and 6.c.(2). The agencies are proposing these changes because they no longer need the current level of detail on 1-4 family residential mortgage banking activities in the Call Report.

Schedule RC-Q

With respect to Schedule RC-Q of the FFIEC 041, the agencies propose to modify the reporting criteria for this schedule by applying only an activity threshold and not an asset-size threshold, which currently is $500 million. As proposed, Schedule RC-Q would be completed only by institutions that (1) have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets and Liabilities. Institutions that do not meet either of these criteria would no longer need to complete this schedule, regardless of asset size. The agencies believe the activity thresholds are more appropriate than the existing simple asset-size threshold for determining which institutions must complete this schedule.

For loans held for investment and held for sale measured at fair value under a fair value option, the agencies also propose to consolidate the detail on the fair value and the unpaid principal balance of such loans currently collected in Memorandum items 3 and 4 of this schedule. For fair value option loans secured by 1-4 family residential properties, detail on revolving, open-end loans secured by 1-4 family Start Printed Page 51913residential properties and extended under lines of credit; closed-end loans secured by first liens on 1-4 family residential properties; and closed-end loans secured by junior liens on 1-4 family residential properties would be consolidated into a single category. For fair value option loans secured by real estate other than 1-4 family residential properties, detail on construction, land development, and other land loans; loans secured by farmland; loans secured by multifamily (5 or more) residential properties; and loans secured by nonfarm nonresidential properties also would be consolidated into a single category. For fair value option consumer loans, detail on credit cards, other revolving credit plans, automobile loans, and other consumer loans would be consolidated into a single category. Specifically, existing Memorandum items 3.a.(3)(a), 3.a.(3)(b)(1), and 3.a.(3)(b)(2) would be consolidated into new Memorandum item 3.a.(1) for the fair value of loans secured by 1-4 family residential properties measured at fair value, while existing Memorandum items 3.a.(1), 3.a.(2), 3.a.(4), and 3.a.(5) would be consolidated into new Memorandum item 3.a.(2) for the fair value of all other loans secured by real estate measured at fair value. Existing Memorandum items 3.c.(1) through 3.c.(4) would be consolidated into new Memorandum item 3.c for the fair value of all consumer loans measured at fair value. Similarly, existing Memorandum items 4.a.(3)(a), 4.a.(3)(b)(1), and 4.a.(3)(b)(2) would be consolidated into new Memorandum item 4.a.(1) for the unpaid principal balance of loans secured by 1-4 family residential properties measured at fair value, while existing Memorandum items 4.a.(1), 4.a.(2), 4.a.(4), and 4.a.(5) would be consolidated into new Memorandum item 4.a.(2) for the unpaid principal balance of all other loans secured by real estate measured at fair value. Existing Memorandum items 4.c.(1) through 4.c.(4) would be consolidated into new Memorandum item 4.c for the unpaid principal balance of all consumer loans measured at fair value.[9]

In addition, the agencies propose to remove the separate reporting of fair value detail on federal funds sold and securities purchased under agreements to resell in item 2, which would instead be included as part of all other assets in item 6. The agencies also propose to remove the separate reporting of fair value detail for federal funds purchased and securities sold under agreements to repurchase in item 9, other borrowed money in item 11, and subordinated notes and debentures in item 12, with these categories of liabilities instead being reported within all other liabilities in item 13. The agencies are proposing these changes because they no longer need the current level of detail on loans measured at fair value under a fair value option and on certain other fair values in the Call Report from institutions that file the FFIEC 041.

Schedule RC-S

With respect to Schedule RC-S of the FFIEC 041, the agencies propose the following revisions to Schedule RC-S as they no longer need the current level of detail on securitization and asset sale activities in the Call Report from institutions that file the FFIEC 041:

(a) Consolidate columns B through F of items 1 through 5 and items 9 through 12, which collect information on certain securitization and asset sale activities, into existing column G. The activities covered in columns B through F pertain to home equity lines, credit card receivables, auto loans, other consumer loans, and commercial and industrial loans, respectively. The amounts previously reported in columns B through F would be included in column G, “All other loans, all leases, and all other assets.”

(b) Consolidate the maximum amount of credit exposures arising from recourse or other seller-provided credit enhancements in the form of retained interest-only strips, subordinated securities and other residual interests, and standby letters of credit and other enhancements, which are reported in items 2.a, 2.b, and 2.c, respectively, into a single new item 2.

(c) Remove item 3 for unused commitments to provide liquidity to structures reported in item 1 involving assets sold and securitized by the reporting bank with servicing retained or with recourse or other seller-provided credit enhancements.

(d) Consolidate ownership (or seller's) interests carried as securities and loans, which are reported in items 6.a and 6.b, respectively, into a single new item 6, and consolidate columns B, C, and F, which pertain to home equity lines, credit card receivables, and commercial and industrial loans, respectively, into column G. The amounts previously reported in columns B, C, and F would be included in the new item 6 in column G, “All other loans, all leases, and all other assets.” The agencies also propose to create a reporting threshold of $10 billion or more in total assets for reporting this new combined item 6.

(e) Remove items 7.a and 7.b, which contain loan amounts included in ownership (or seller's) interests carried as securities that are 30-89 days past due and 90 days or more past due, respectively.

(f) Remove items 8.a and 8.b, which contain charge-offs and recoveries, respectively, on loan amounts included in the ownership (or seller's) interests carried as securities that are currently reported in item 6.a.

(g) Create a reporting threshold of $10 billion or more in total assets for reporting item 10 on unused commitments to provide liquidity to other institutions' securitization structures.

(h) Remove Memorandum items 1.a. and 1.b, which contain the outstanding principal balance and the amount of retained recourse, respectively, on small business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994. The amounts previously reported in Memorandum items 1.a and 1.b would be included in items 1 and 2 or items 11 and 12 of column G depending on whether the obligations that had been sold were securitized or not securitized, respectively.

(i) Create a reporting threshold of $10 billion or more in total assets for reporting detail on asset-backed commercial paper (ABCP) conduits in Memorandum items 3.a.(1) through 3.b.(2), and the amount of outstanding credit card fees and finance charges included in credit card receivables sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements in Memorandum item 4. To complete Memorandum item 4, an institution with $10 billion or more in total assets would also need to meet one of the existing criteria for reporting this information, i.e., the institution, together with affiliated institutions, has outstanding credit card receivables that exceed $500 million as of the report date, or the institution is a credit card specialty bank as defined for Uniform Bank Performance Report (UBPR) purposes.

Schedule RC-T

With respect to Schedule RC-T of the FFIEC 041, the agencies propose to increase the reporting threshold for reporting the components of fiduciary and related services income. For institutions with total fiduciary assets greater than $100 million but less than or equal to $250 million that do not meet the fiduciary income test for quarterly reporting,[10] the agencies propose to no longer require the reporting of items 14 through 26. There would be no change to the reporting requirements applicable to items 14 through 26 for all other institutions. The agencies no longer need the current level of detail on fiduciary and related services income from institutions with less than $250 million in total fiduciary assets that do not meet the fiduciary income test.

In addition, the agencies propose to add a reporting threshold for reporting the number and market value of Start Printed Page 51914collective investment funds and common trust funds by type of fund in Memorandum items 3.a through 3.g. For institutions at which these funds have a total market value of less than $1 billion (as of the preceding December 31), the agencies propose to no longer require the reporting of Memorandum items 3.a through 3.g. Such institutions would report only the total number and market value of their collective investment funds and common trust funds in Memorandum item 3.h. Institutions at which the total market value of their collective investment funds and common trust funds is $1 billion or more would continue to report Memorandum items 3.a through 3.h. The agencies no longer need the current level of detail on collective investment funds and common trust funds in the Call Report from institutions at which the total market value of these funds is less than $1 billion.

Schedule RC-V

With respect to Schedule RC-V of the FFIEC 041, the agencies propose to consolidate information collected on consolidated variable interest entities (VIEs) used as ABCP conduits (column B) and other VIEs (column C) for all items into a single column B covering all VIEs other than those used as securitization vehicles (which will continue to be reported in column A). In lieu of the detailed breakdown of assets and liabilities of ABCP conduit VIEs currently reported in column B, the agencies propose to collect data only on the total assets and total liabilities of such VIEs in new items 5 and 6, respectively. For these ABCP conduit VIEs, the total assets item would include the assets that can be used only to settle these VIEs' obligations, which are currently reported in items 1.a through 1.k, column B, and all other assets of these VIEs, which are currently reported in item 3, column B; the total liabilities items would include these VIEs' liabilities for which creditors do not have recourse to the general credit of the reporting bank, which are currently reported in items 2.a through 2.e, column B, and all other liabilities of these VIEs, which are currently reported in item 4, column B.

In the two columns of Schedule RC-V that would remain, the agencies also propose to consolidate the VIE information on held-to-maturity and available-for-sale securities in items 1.b and 1.c, respectively, into a single new item 1.b; loans and leases held for sale, loans and leases held for investment, and the allowance for loan and leases losses in items 1.e through 1.g into a single new item 1.c; and commercial paper and other borrowed money in items 2.c and 2.d, respectively, into a single new item 2.a. In addition, the agencies propose to remove the VIE detail on securities purchased under agreements to resell in item 1.d, trading assets (other than derivatives) in item 1.h, and derivative trading assets in item 1.i. The data currently reported in these items would be included in existing item 1.k for other assets, which would be renumbered as item 1.e. The agencies also propose to remove the VIE detail on securities sold under agreements to repurchase in item 2.a and derivative trading liabilities in item 2.b; these items would be included in existing item 2.e for other liabilities, which would be renumbered as item 2.b. The agencies propose to consolidate and remove these items because they no longer need the current level of detail on consolidated VIEs in the Call Report.

C. Revisions to the FFIEC 031

Schedule RC-A

With respect to Schedule RC-A of the FFIEC 031, the agencies propose to consolidate the reporting of an institution's balances due from depository institutions in the United States, which are currently reported for the consolidated bank in items 2.a for balances due from U.S. branches and agencies of foreign banks and 2.b for balances due from other commercial banks and other depository institutions in the United States, into a single item 2 in column A. In addition, the agencies propose to consolidate the reporting of an institution's balances due from banks in foreign countries and foreign central banks, which are currently reported for the consolidated bank in items 3.a for balances due from foreign branches of other U.S. banks and 3.b for balances due from banks in foreign countries and foreign central banks, into a single item 3 in column A. The agencies no longer need the current level of detail for these balances in the Call Report.

Schedule RC-F

With respect to Schedule RC-F of the FFIEC 031, the agencies propose to consolidate the reporting of an institution's interest-only strips receivable, which are currently reported in items 3.a for those on mortgage loans and 3.b for those on other financial assets, into a single item 3. The agencies no longer need the current level of detail for these holdings in the Call Report.

In addition, the agencies propose to remove the preprinted caption for retained interests in accrued interest receivable related to securitized credit cards (item 6.d) as few institutions report having this component of other assets in an amount in excess of the existing reporting threshold for disclosing this component.[11] Items 6.e through 6.k would be renumbered as items 6.d through 6.j.

Schedule RC-H

With respect to Schedule RC-H of the FFIEC 031, in connection with removing the separate detail for loans held for investment and held for sale in domestic offices measured at fair value under a fair value option from Schedule RC-Q, the agencies propose to aggregate all loans held for investment and held for sale in domestic offices measured at fair value under a fair value option that are currently reported on Schedule RC-Q, column B, Memorandum items 3.a.(1) through 3.d (including all subitems), into a single new item, Schedule RC-H, item 22. This item would be completed by institutions that (1) have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets and Liabilities. The agencies believe relocating this data from Schedule RC-Q to Schedule RC-H will improve efficiency by consolidating additional domestic office information on Schedule RC-H.

Schedule RC-N

With respect to Schedule RC-N of the FFIEC 031, the agencies propose to remove the data items for reporting the past due and nonaccrual status of the fair value and unpaid principal balance of held-for-investment loans measured at fair value, which are currently reported in Memorandum items 5.b.(1) and 5.b.(2), columns A through C. The agencies no longer need this current level of detail in the Call Report. The agencies would renumber Memorandum item 5.a, “Loans and leases held for sale,” as Memorandum item 5 for columns A through C.

Schedule RC-P

With respect to Schedule RC-P of the FFIEC 031, the agencies propose to modify the reporting criteria for this schedule by removing the current $1 billion asset-size threshold and applying only the existing activity-based Start Printed Page 51915threshold to all institutions, regardless of size. As proposed, Schedule RC-P would be completed by institutions where any of the following residential mortgage banking activities (in domestic offices) exceeds $10 million for two consecutive quarters:

  • Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loan originations and purchases for resale from all sources during a calendar quarter; or
  • Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loan sales during a calendar quarter; or
  • Closed-end and open-end first lien and junior lien 1-4 family residential mortgage loans held for sale or trading at calendar quarter-end.

The agencies believe an activity-based threshold alone is more appropriate than an asset-size threshold for determining which institutions should file this schedule.

The agencies also propose to consolidate the 1-4 family residential mortgage banking activity detail collected in this schedule for closed-end loans and commitments under open-end loans for retail originations (item 1), wholesale originations and purchases (item 2), mortgage loans sold (item 3), mortgage loans held for sale or trading (item 4), and repurchases and indemnifications of mortgage loans (item 6). Specifically, items 1.a, 1.b, and 1.c.(1) would be combined into new item 1; items 2.a, 2.b, and 2.c.(1) would be combined into new item 2; items 3.a, 3.b, and 3.c.(1) would be combined into new item 3; items 4.a, 4.b, and 4.c.(1) would be combined into new item 4; and, items 6.a, 6.b, and 6.c.(1) would be combined into new item 6. The agencies also propose to consolidate noninterest income from the sale, securitization, and servicing of closed-end and open-end 1-4 family residential mortgage loans currently reported in items 5.a and 5.b into a new item 5. In addition, the agencies propose to remove detail on the principal amount funded for open-end loans extended under lines of credit for each of the above listed categories currently reported in items 1.c.(2), 2.c.(2), 3.c.(2), 4.c.(2), and 6.c.(2). The agencies are proposing these changes because they no longer need the current level of detail on 1-4 family residential mortgage banking activities in the Call Report.

Schedule RC-Q

With respect to Schedule RC-Q of the FFIEC 031, the agencies propose to modify the reporting criteria for this schedule by applying only an activity threshold and not an asset-size threshold, which currently is $500 million. As proposed, Schedule RC-Q would be completed only by institutions that (1) have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets and Liabilities. Institutions that do not meet either of these criteria would no longer need to complete this schedule, regardless of asset size. The agencies believe the activity thresholds are more appropriate than the existing simple asset-size threshold for determining which institutions must complete this schedule.

For loans held for investment and held for sale measured at fair value under a fair value option, the agencies also propose to remove column B (domestic offices) for the fair value and the unpaid principal balance of such loans currently collected in Memorandum items 3 and 4 of this schedule, respectively, and replace the detailed data on fair value option loans in domestic offices with a single new item for the total amount of fair value option loans that would be added to Schedule RC-H, Selected Balance Sheet Items for Domestic Offices.[12] In addition, the agencies would consolidate certain existing loan categories in Memorandum items 3 and 4. For fair value option loans secured by 1-4 family residential properties, detail on revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit; closed-end loans secured by first liens on 1-4 family residential properties; and closed-end loans secured by junior liens on 1-4 family residential properties that is currently reported for domestic offices in column B would be consolidated into a single category and collected for the consolidated bank. For fair value option loans secured by real estate other than 1-4 family residential properties, detail on construction, land development, and other land loans; loans secured by farmland; loans secured by multifamily (5 or more) residential properties; and loans secured by nonfarm nonresidential properties that is currently reported for domestic offices in column B would be consolidated into a single category and collected for the consolidated bank. These proposed revisions would replace the existing items for total fair value option loans secured by real estate for the consolidated bank. For fair value option consumer loans, detail for the consolidated bank on credit cards, other revolving credit plans, automobile loans, and other consumer loans would be consolidated into a single category. Specifically, existing Memorandum items 3.a and 4.a in column A for the fair value and the unpaid principal balance of the consolidated bank's total loans secured by real estate would be removed. Existing Memorandum items 3.a.(3)(a), 3.a.(3)(b)(1), and 3.a.(3)(b)(2) in column B would be consolidated into new Memorandum item 3.a.(1) for the fair value of the consolidated bank's loans secured by 1-4 family residential properties measured at fair value, while existing Memorandum items 3.a.(1), 3.a.(2), 3.a.(4), and 3.a.(5) in column B would be consolidated into new Memorandum item 3.a.(2) for the fair value of all other loans secured by real estate measured at fair value for the consolidated bank. Existing Memorandum items 3.c.(1) through 3.c.(4) for the consolidated bank would be consolidated into new Memorandum item 3.c for the fair value of all consumer loans measured at fair value. Similarly, existing Memorandum items 4.a.(3)(a), 4.a.(3)(b)(1), and 4.a.(3)(b)(2) in column B would be consolidated into new Memorandum item 4.a.(1) for the unpaid principal balance of the consolidated bank's loans secured by 1-4 family residential properties measured at fair value, while existing Memorandum items 4.a.(1), 4.a.(2), 4.a.(4), and 4.a.(5) in column B would be consolidated into new Memorandum item 4.a.(2) for unpaid principal balance of all other loans secured by real estate measured at fair value for the consolidated bank. Existing Memorandum items 4.c.(1) through 4.c.(4) for the consolidated bank would be consolidated into new Memorandum item 4.c for unpaid principal balance of all consumer loans measured at fair value.[13] The agencies are proposing these changes because they no longer need the current level of detail on loans measured at fair value under a fair value option in the Call Report from institutions that file the FFIEC 031.

Schedule RC-S

With respect to Schedule RC-S of the FFIEC 031, the agencies propose the following revisions to Schedule RC-S, as they no longer need the current level of detail on securitization and asset sale Start Printed Page 51916activities in the Call Report from institutions that file the FFIEC 031:

(a) Consolidate the maximum amount of credit exposures arising from recourse or other seller-provided credit enhancements in the form of retained interest-only strips, subordinated securities and other residual interests, and standby letters of credit and other enhancements, which are reported in items 2.a, 2.b, and 2.c, respectively, into a single new item 2.

(b) Create a reporting threshold of $100 billion or more in total assets for item 3, which is used for reporting unused commitments to provide liquidity to structures reported in item 1 involving assets sold and securitized by the reporting bank with servicing retained or with recourse or other seller-provided credit enhancements.

(c) Consolidate ownership (or seller's) interests carried as securities and loans, which are reported in items 6.a and 6.b, respectively, into a single new item 6. The agencies also propose to create a reporting threshold of $10 billion or more in total assets for reporting this new combined item 6.

(d) Remove items 7.a and 7.b, which contain loan amounts included in ownership (or seller's) interests carried as securities that are 30-89 days past due and 90 days or more past due, respectively.

(e) Remove items 8.a and 8.b, which contain charge-offs and recoveries, respectively, on loan amounts included in the ownership (or seller's) interests carried as securities that are currently reported in item 6.a.

(f) Consolidate columns B and C of item 9, which contain the maximum amount of credit exposure arising from credit enhancements in the form of standby letters of credit, purchased subordinated securities, and other enhancements provided by the reporting institution to other institutions' securitization structures, into existing column G. The activities covered in columns B and C pertain to home equity lines and credit card receivables, respectively. The amounts previously reported in columns B and C would be included in column G, “All other loans, all leases, and all other assets.”

(g) Create a reporting threshold of $10 billion or more in total assets for reporting unused commitments to provide liquidity to other institutions' securitization structures in item 10. The agencies also propose to consolidate columns B and C of item 10 into existing column G. The activities covered in columns B and C pertain to home equity lines and credit card receivables, respectively. The amounts previously reported in columns B and C by institutions with $10 billion or more in total assets would be included in column G, “All other loans, all leases, and all other assets.”

(h) Consolidate columns B through F of item 11, which contain assets sold with recourse or other seller-provided credit enhancements and not securitized, into existing column G. The activities covered in columns B through F pertain to home equity lines, credit card receivables, auto loans, other consumer loans, and commercial and industrial loans, respectively. The amounts previously reported in columns B through F would be included in column G, “All other loans, all leases, and all other assets.”

(i) Consolidate columns B through F of item 12, which contain the maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements on assets sold with recourse or other seller-provided credit enhancements and not securitized, into existing column G. The activities covered in columns B through F pertain to home equity lines, credit card receivables, auto loans, other consumer loans, and commercial and industrial loans, respectively. The amounts previously reported in columns B through F would be included in column G, “All other loans, all leases, and all other assets.”

(j) Remove Memorandum items 1.a. and 1.b which contain the outstanding principal balance and the amount of retained recourse, respectively, on small business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994. The amounts previously reported in these two memorandum items would be included in items 1 and 2 (column F) or items 11 and 12 (column G) depending on whether the obligations that had been sold were securitized or not securitized, respectively.

(k) Create a reporting threshold of $10 billion or more in total assets for reporting detail on ABCP conduits in Memorandum items 3.a.(1) through 3.b.(2), and the amount of outstanding credit card fees and finance charges included in credit card receivables sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements in Memorandum item 4. To complete Memorandum item 4, an institution with $10 billion or more in total assets would also need to meet one of the existing criteria for reporting this information, i.e., the institution, together with affiliated institutions, has outstanding credit card receivables that exceed $500 million as of the report date, or the institution is a credit card specialty bank as defined for UBPR purposes.

Schedule RC-T

With respect to Schedule RC-T of the FFIEC 031, the agencies propose to increase the reporting threshold for reporting the components of fiduciary and related services income. For institutions with total fiduciary assets greater than $100 million but less than or equal to $250 million that do not meet the fiduciary income test for quarterly reporting,[14] the agencies propose to no longer require the reporting of items 14 through 26. There would be no change to the reporting requirements applicable to items 14 through 26 for all other institutions. The agencies no longer need the current level of detail on fiduciary and related services income from institutions with less than $250 million in total fiduciary assets that do not meet the fiduciary income test.

In addition, the agencies propose to add a reporting threshold for reporting the number and market value of collective investment funds and common trust funds by type of fund in Memorandum items 3.a through 3.g. For institutions at which these funds have a total market value of less than $1 billion (as of the preceding December 31), the agencies propose to no longer require the reporting of Memorandum items 3.a through 3.g. Such institutions would report only the total number and market value of their collective investment funds and common trust funds in Memorandum item 3.h. Institutions at which the total market value of their collective investment funds and common trust funds is $1 billion or more would continue to report Memorandum items 3.a through 3.h. The agencies no longer need the current level of detail on collective investment funds and common trust funds in the Call Report from institutions at which the total market value of these funds is less than $1 billion.

Schedule RC-V

With respect to Schedule RC-V of the FFIEC 031, the agencies propose to consolidate information collected on consolidated VIEs used as ABCP conduits (column B) and other VIEs (column C) for all items into a single column B covering all VIEs other than those used as securitization vehicles (which will continue to be reported in column A). In lieu of the detailed breakdown of assets and liabilities of ABCP conduit VIEs currently reported in column B, the agencies propose to collect data on the total assets and total liabilities of such VIEs in new items 5 and 6, respectively. For these ABCP conduit VIEs, the total assets item would include the assets that can be used only to settle these VIEs' obligations, which are currently reported in items 1.a through 1.k, column B, and all other assets of these VIEs, which are currently reported in item 3, column B; the total liabilities items would include these VIEs' liabilities for which creditors do not have recourse to the general credit of the reporting bank, which are currently reported in items 2.a through 2.e, column B, and all other liabilities of these VIEs, which are currently reported in item 4, column B.

In the two columns of Schedule RC-V that would remain, the agencies also propose to consolidate the VIE information on held-to-maturity and available-for-sale securities in items 1.b Start Printed Page 51917and 1.c into a single new item 1.b; loans and leases held for sale, loans and leases held for investment, and the allowance for loan and leases losses in items 1.e through 1.g into a single new item 1.c; and commercial paper and other borrowed money in items 2.c and 2.d into a single new item 2.a. In addition, the agencies propose to remove the VIE detail on securities purchased under agreements to resell in item 1.d, trading assets (other than derivatives) in item 1.h, and derivative trading assets in item 1.i. The data currently reported in these items would be included in existing item 1.k for other assets, which would be renumbered as item 1.e. The agencies also propose to remove the VIE detail on securities sold under agreements to repurchase in item 2.a and derivative trading liabilities in item 2.b; these items would be included in existing item 2.e for other liabilities, which would be renumbered as item 2.b. The agencies propose to consolidate and remove these items because they no longer need the current level of detail on consolidated VIEs in the Call Report.

IV. Timing

The agencies propose to make the changes in this notice effective beginning with the June 30, 2018, Call Report. The agencies invite comment on any difficulties that institutions would expect to encounter in implementing the systems and process changes necessary to accommodate the proposed revisions to the FFIEC 051, FFIEC 041, and FFIEC 031 as of this proposed effective date.

The specific wording of the captions for the new or revised Call Report data items discussed in this proposal and the numbering of these data items should be regarded as preliminary.

V. Request for Comment

Public comment is requested on all aspects of this joint notice. Comment is specifically 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 the Portion of the User Surveys Evaluated in the Development of This Proposal

Schedule RI-A (Changes in Bank Equity Capital)

Schedule RI-A collects detailed information about specified categories of changes in an institution's equity capital during the calendar year to date. In general, these categories are aligned with categories typically reported on a basic statement of changes in equity in a set of financial statements prepared under U.S. generally accepted accounting principles (GAAP).

The FFIEC member entities' examiners use the Schedule RI-A information in their off-site reviews to identify and understand the sources of any significant changes in an institution's capital accounts. Information on dividends declared as a percentage of net income reveals the extent to which capital is being augmented through earnings retention, which is the principal source of capital for most institutions. The banking agencies may be aware of some capital transactions reported in Schedule RI-A due to licensing requirements. However, for many other transactions directly affecting capital such as dividends declared and transactions with a parent holding company, Schedule RI-A may be the only source of information on changes in capital aside from an on-site examination. Even for capital transactions that require prior agency approval, the information reported in Schedule RI-A serves as confirmation that the institution successfully completed the transaction (such as issuing new stock or redeeming existing preferred stock). The agencies also use the information on this schedule as a starting point for reviewing compliance with statutory or regulatory restrictions on dividends or holding company transactions.

The FDIC uses data items from Schedule RI-A in its estimates of losses from failures of insured depository institutions, which affects the FDIC's loss reserve and the resulting level of the balance in the Deposit Insurance Fund.

Schedule RI-C (Disaggregated Data on the Allowance for Loan and Lease Losses) [FFIEC 031 and FFIEC 041 only]

Schedule RI-C provides information on the components of the allowance for loan and lease losses (ALLL) by loan category disaggregated on the basis of a reporting institution's impairment measurement method and the related recorded investment in loans (and, as applicable, leases) held for investment for institutions with $1 billion or more in total assets. The information required to be reported in Schedule RI-C is consistent with disclosures required under existing U.S. GAAP in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) paragraphs 310-10-50-11B(g) and (h).

By providing this level of detail on an individual institution's overall ALLL, which supports the identification of changes in its components over time, examiners can better perform off-site monitoring of activity within the ALLL in periods between examinations and when planning for examinations. Thus, the Schedule RI-C information enables examiners and agency analysts to determine whether the institution is releasing loan loss allowances in some loan categories and building allowances in others. Furthermore, changes from period to period in the volume of individually evaluated loans that have been determined to be impaired in each loan category, and the allowance allocations to these impaired loans, provide examiners and analysts with an indicator of trends in the institution's credit quality. This understanding is critical to the agencies since the ALLL, and the direction of changes in its composition, is one of the key factors in determining an institution's financial condition.

The detailed ALLL information collected in Schedule RI-C allows the agencies to more finely focus efforts related to the analysis of the ALLL and credit risk management. By reviewing the data collected in Schedule RI-C on allowance allocations by loan category in conjunction with the past due and nonaccrual data reported by loan category (in Schedule RC-N) that are used in a general assessment of an institution's credit risk exposures, the agencies can better evaluate whether the overall level of its ALLL, and its allocations by loan category, appear appropriate or whether supervisory follow-up is warranted. Together, the ALLL information and past due and nonaccrual data factor into the assessment of the Asset Quality component of the CAMELS rating.[15] As an example, by using the detailed information on the ALLL allocated to commercial real estate (CRE) loans, examiners and analysts can better understand how institutions with CRE concentrations are building or releasing allowances, the extent of ALLL coverage in relation to their CRE portfolios, and how this might differ among institutions.

Schedule RI-C also assists the agencies in understanding industry trends related to the build-up or release of allowances for specific loan categories. The information supports comparisons of ALLL levels by loan category, including the identification of differences in ALLL allocations by institution size. Understanding how institutions' ALLL practices and allocations differ over time for Start Printed Page 51918particular loan categories as economic conditions change provides insight that can be used to more finely tune supervisory procedures and policies.

Schedule RC-A (Cash and Balances Due from Depository Institutions) [FFIEC 031 and FFIEC 041 only]

Schedule RC-A provides data on currency and coin, cash items, balances due from U.S. and foreign depository institutions, and balances due from Federal Reserve Banks. This information, particularly from larger institutions, is utilized for monetary policy purposes and liquidity analysis purposes.

For monetary policy purposes, information from Schedule RC-A is needed for analysis of the relationship between institutions' cash assets and the federal funds market, and in the construction of the monetary aggregates and weekly estimates of cash assets. The Board, in conducting monetary policy, monitors shifts between cash accounts and federal funds as a measure of the effectiveness of policy initiatives. For example, differences in interest rates paid on balances due from Federal Reserve Banks compared to those available in the federal funds market cause shifts in the relative volumes of funds institutions hold in their Federal Reserve Bank accounts and federal funds sold. This can be seen in the significant shrinkage in the federal funds market over the past ten years that has been offset by increases in cash assets held. As monetary policy normalizes and rates in the federal funds market increase, data in Schedule RC-A will allow the Board to analyze how cash assets would change as the federal funds market responds to the movement in rates.

Schedule RC-A data also serve as inputs into the construction of the monetary aggregates and in deriving estimates of cash assets on a weekly frequency. Cash items reported in item 1 are utilized as netting components in constructing the monetary aggregates. Items for cash and balances due from depository institutions are utilized to benchmark comparable weekly data collected by the Board from a sample of both small and large depository institutions. These weekly estimates provide timely input for more effective monitoring of institutions' cash asset positions.

Schedule RC-A provides information about the most liquid balance sheet accounts available to satisfy unexpected cash outflows. Thus, information reported on balances due from depository institutions, including those representing correspondent banking balances, are a key element in the agencies' analysis of an institution's management of liquidity risk. Such balances serve to pay the institution's daily cash letters and must be maintained at sufficient levels to cover these obligations in the normal course of business. At the same time, information from Schedule RC-A is particularly important for the agencies' evaluations of an institution's ability to effectively respond to liquidity stress. Although other balance sheet assets, such as debt securities, are secondary sources of liquidity under normal operating conditions, examiners consider the availability of on-balance sheet cash and due from balances under a highly stressed operating environment. Given the volatility of liability funding sources, agency supervisory staff assess the demands of a potential liquidity crisis in comparison to the availability of funds from due from balances. Because the amount of liquid assets that an institution should maintain is a function of the stability of its funding structure and the risk characteristics of its balance sheet and off-balance sheet activities, examiners monitor the level of cash and due from balances, and changes therein from period to period, by using data from Schedule RC-A as part of their off-site analyses of liquidity risk. The results of these analyses may influence the supervisory strategy for an institution and is an input into examination planning activities necessary for scoping and staffing the evaluation of liquidity and funds management during examinations.

The separate breakout of balances due from banks in foreign countries and foreign central banks in Schedule RC-A also aids the agencies in assessing liquidity risk arising from additional or distinct banking laws and regulations in foreign countries and in evaluating the currency risk and country risk associated with these balances.

Schedule RC-F (Other Assets)

Schedule RC-F collects a breakdown of assets not reported in other balance sheet asset categories, such as deferred tax assets, equity securities without readily determinable fair values, and life insurance assets. This information is used in off-site monitoring and for pre-examination planning. A trend of rapid growth in or a significant change in the reported amount of an individual category of other assets that is identified through off-site monitoring may represent an area of potential concern or heightened risk and require further review and assessment, either upon identification or at the next examination.

For example, a significant increase in the level of accrued interest receivable may be indicative of deterioration in the repayment capacity of an institution's borrowers or a relaxation of management's loan collection policies and practices, which would signal an increase in overall credit risk. Growth in the amount of net deferred tax assets, particularly at an institution with cumulative losses in recent years, raises questions about the realizability of these assets and whether the need for a valuation allowance has been properly assessed. The importance of ensuring the appropriateness of the reported amount of these assets is also tied to the deductions and limits that apply to deferred tax assets under the agencies' regulatory capital rules. Examiners use information on the volume of interest-only strips receivable in their pre-examination scoping of an institution's interest rate risk to determine the extent of this risk in preparation for an on-site assessment. Because bank-owned life insurance exposes an institution to liquidity, operational, credit, interest rate, and other risks, examiners need to identify significant holdings of life insurance assets and growth in such holdings. In these circumstances, examiners evaluate management's adherence to prudent concentration limits for life insurance assets and management's performance of comprehensive assessments of the risks of these assets, either on an off-site basis or during examinations.

Information on those individual components of all other assets that exceed the Schedule RC-F disclosure threshold helps examiners evaluate the significance of these items to the overall composition of the balance sheet and identify risk exposures associated with these assets. For example, when examiners find the reported amount of repossessed assets at an institution to be increasing, these data, taken together with data on the volume of past due and nonaccrual loans reported in Schedule RC-N, may signal credit deterioration and the need for examiner follow-up with management. Data on repossessed assets also are used for the scoping of targeted consumer compliance examinations, particularly with respect to auto loan origination and servicing.

Data on accrued interest receivable also are used in the FDIC's model that estimates losses arising from the failure of problem institutions, which affects the measurement of the balance of the Deposit Insurance Fund.

Schedule RC-G (Other Liabilities)

Schedule RC-G collects a breakdown of liabilities not reported in other balance sheet liability categories, such as interest accrued and unpaid on deposits, net deferred tax liabilities, and the allowance for credit losses on off-balance sheet exposures. As with the other assets data collected in Schedule RC-F, information reported in Schedule RC-G is used in off-site monitoring and for pre-examination planning. A trend of rapid growth in or a significant change in the reported amount of an individual category of other liabilities that is identified through off-site monitoring may represent an area of potential concern or heightened risk and require further review and assessment, either upon identification or at the next examination.

For example, a significant increase or decrease in the interest accrued and unpaid on deposits would warrant examiner follow-up to determine the cause for this change from previous levels because it could indicate a change in an institution's funding strategy with a consequential effect on its future earnings and its interest rate risk exposure. Examiner assessments of material increases in the allowance for off-balance sheet credit exposures are performed to determine whether this reflects credit quality deterioration on the part of existing customers to whom credit has been extended, a loosening of underwriting practices for granting or renewing lines of credit, or other factors, especially at banks with significant credit card operations or other unfunded commitments.

Information on those individual components of all other liabilities that exceed the Schedule RC-G disclosure threshold helps examiners evaluate the significance of these items to the overall composition of the balance sheet and identify risk exposures associated with these liabilities. For example, an increase in the amount of derivatives with negative fair values, considering changes in Start Printed Page 51919the notional amounts of derivatives reported in Schedule RC-L (on the FFIEC 031 or FFIEC 041) or Schedule SU (on the FFIEC 051), would lead to examiner review of an institution's hedging activities and their effectiveness in offsetting identified hedged risks or its strategy for entering into derivatives transactions for purposes other than hedging because of the resulting negative impact on earnings. Because deferred compensation liabilities create funding obligations, growth in the amount of these liabilities that triggers disclosure in Schedule RC-G warrants examiner review to ensure that management is properly planning for the funding mechanisms to be used to satisfy these compensation arrangements.

Data on interest accrued and unpaid on deposits also are used in the FDIC's model that estimates losses arising from the failure of problem institutions, which affects the measurement of the Deposit Insurance Fund.

Schedule RC-H (Selected Balance Sheet Items for Domestic Offices) [FFIEC 031 Only]

Schedule RC-H provides data on selected balance sheet items held in domestic offices only, and complements domestic office information collected in Schedule RC-C, Part I (Loans and Leases), Column B, and in Schedule RC-A (Cash and Balances Due from Depository Institutions), Column B. This domestic office level information is utilized for monetary policy and supervisory risk assessment purposes.

In general, Board policymakers set U.S. monetary policy to influence economic activity and financial market conditions in the United States. The domestic office components of the balance sheet items in Schedule RC-H and elsewhere in the Call Report are used in this context to assess credit availability, banks' funding patterns, liquidity, and investment strategies in the United States. For example, if the level of an institution's consolidated holdings of U.S. Treasury securities were increasing, but upon further review a significant portion of the growth reflected a rise in the amount of the institution's securities that are held in its foreign offices, such growth would not constitute direct support of either increased liquidity or a change in investment strategy at the institution's domestic offices. Moreover, in that case, such growth would not constitute an increase in the Board's U.S. bank credit aggregate, which is based on domestic-office-only holdings of institutions' securities and loans. Without the domestic-offices-only component of U.S. Treasury securities, the interpretation of increases in such securities holdings would be unnecessarily complicated; it would otherwise be unclear to policymakers, analysts, and others whether such growth had in fact reflected stimulation of the U.S. economy in the form of U.S. bank credit.

For institutions with foreign and domestic operations, the division of assets and funding between foreign and domestic components is a key element of an institution's risk profile. For example, the levels of funding and assets at such an institution that are subject to potentially more restrictive foreign laws and regulations and to currency risk and other transactional risks define a major portion of the institution's risk profile. In addition, data on the volume of assets and liabilities by balance sheet category in domestic versus foreign offices is essential for planning and staffing examinations of institutions with foreign offices.

Schedule RC-I (Assets and Liabilities of IBFs) [FFIEC 031 Only]

Schedule RC-I requires the reporting, on a fully consolidated basis, of the total assets and liabilities of all International Banking Facilities (IBFs) established by the reporting institution, i.e., including any IBFs established by the institution itself or by its Edge or Agreement subsidiaries. An IBF is a set of asset and liability accounts, segregated on the books and records of the establishing entity, which reflect permitted international transactions. IBF activities are essentially limited to accepting deposits from and extending credit to foreign residents (including banks), other IBFs, and the institutions establishing the IBF. The general purpose of the collection of these two Schedule RC-I data items is to aid in the planning of examinations on the risks and activities associated with international lending, financing instruments, and international banking conducted through an IBF. These two data items also serve as high level indicators of institutions' engagement in such activities between examinations. There is no other source of information on the total assets and liabilities of U.S. banking institutions' IBFs.

Schedule RC-P (1-4 Family Residential Mortgage Banking Activities in Domestic Offices) [FFIEC 031 and FFIEC 041 only]

For institutions that meet an activity-based reporting threshold associated with their mortgage banking activities in domestic offices, Schedule RC-P provides data on their originations, purchases, and sales of closed-end and open-end 1-4 family residential mortgages during the quarter. Institutions providing data in Schedule RC-P also report the amount of closed-end and open-end 1-4 family residential mortgage loans held for sale or trading at quarter-end as well as the noninterest income for the quarter from the sale, securitization, and servicing of these mortgage loans. For open-end mortgage loans, institutions report the total commitment under the line of credit. These data are collected to enhance the agencies' ability to monitor the nature and extent of institutions' involvement with 1-4 family residential mortgage loans as originators, sellers, and servicers of such loans.

Since mortgage banking accounts for a large source of income at many institutions, concentrations of activities in this area pose several types of risks. These risks include operational, credit, interest rate, and liquidity risks, evaluations of which are critical in assigning appropriate CAMELS ratings for an institution. Therefore, the agencies monitor and analyze the Schedule RC-P data on institutions' mortgage banking activities to support their assessments of various risk components of CAMELS ratings. For example, 1-4 family residential mortgage banking activities may include an institution's obligation to repurchase mortgage loans that it has sold or otherwise indemnify the loan purchaser against loss due to borrower defaults, loan defects, other breaches of representations and warranties, or other reasons, thereby exposing the institution to additional risk. To monitor this exposure, Schedule RC-P collects data on 1-4 family residential mortgage loan repurchases and indemnifications during the quarter as well as representation and warranty reserves for such loans that have been sold. If off-site analysis of the reported data on repurchases and indemnifications reveals substantial increases in recent periods, this would be a red flag for supervisory questions about the credit and operational risks arising from the institution's mortgage loan originations and purchases as well as its ability to fund a higher level of loan repurchases going forward than it may be accustomed to repurchase. Examiner review of the appropriateness of the level of representation and warranty reserves and the institution's methodology for estimating the amount of these reserves also would be warranted.

In addition, the data reported in Schedule RC-P are used in the ongoing monitoring of the current volume, growth, and profitability of institutions' 1-4 family residential mortgage banking activities. In this regard, significant growth in these activities over a short period of time, particularly in relation to the size of an institution, raises supervisory concerns as to whether the institution has implemented appropriate risk management processes, controls, and governance over its mortgage banking business. The extent of the increased level of activity will determine the nature and timing of the supervisory follow-up. More generally, for examiners, the off-site monitoring of the Schedule RC-S data and related metrics and trends provides key information for examination scoping and helps determine the allocation of mortgage-banking specialists' time during on-site examinations.

A substantial volume of loans and other assets held for sale in a market where the assets may not be able to be readily sold can cause significant liquidity strain because of the institution's need for funding to carry these assets for a greater length of time than had been anticipated. Thus, the agencies use data from Schedule RC-P when assessing an institution's liquidity position by monitoring and analyzing the extent of mortgages held for sale or trading. If there is significant growth in the amount of such mortgage holdings, particularly when the Schedule RC-P data reveal larger amounts of originations and purchases compared to sales, this would be an indicator that the acquired loans are not selling and a basis for supervisory follow-up.

From a consumer compliance perspective, the agencies use Schedule RC-P data to monitor mortgage-related metrics for assessing potential risks to consumers, and for the scheduling and scoping of examinations. Additionally, the agencies rely on Schedule RC-P data for assessing an institution's product lines for compliance with the Community Reinvestment Act and other fair lending regulations, particularly if the institution engages in wholesale originations of mortgage loans.Start Printed Page 51920

Schedule RC-Q—Assets and Liabilities Measured at Fair Value on a Recurring Basis [FFIEC 031 and FFIEC 041 only]

FASB ASC Topic 820, Fair Value Measurement, provides guidance on how to measure fair value and establishes a three-level hierarchy for measuring fair value. This hierarchy prioritizes inputs used to measure fair value based on observability, giving the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

Under ASC Subtopic 825-10, Financial Instruments—Overall, ASC Subtopic 815-15, Derivatives and Hedging—Embedded Derivatives, and ASC Subtopic 860-50, Transfers and Servicing—Servicing Assets and Liabilities, an institution may elect to report certain assets and liabilities at fair value with changes in fair value recognized in earnings. This election is generally referred to as the fair value option. Under U.S. GAAP, certain other assets and liabilities are required to be measured at fair value on a recurring basis.

Institutions that have elected to apply the fair value option or have reported $10 million or more in total trading assets in any of the four preceding calendar quarters must report in Schedule RC-Q the amount of assets and liabilities, by major categories, that are measured at fair value on a recurring basis in the financial statements, along with separate disclosure of the amount of such assets and liabilities whose fair values were estimated under each of the three levels of the FASB's fair value hierarchy.

Agency staff use the information on assets reported at fair value in Schedule RC-Q to calibrate and estimate the impact of regulatory capital policy, as well as evaluate contemplated capital policy changes. The agencies also use the Schedule RC-Q data (particularly the volume of fair value option assets and liabilities in relation to total assets and total capital, whether the volume has significantly increased, and whether the option has begun to be applied to new categories of assets or liabilities) to assist with planning the proper scoping and staffing of risk management safety and soundness examinations given the critical importance of robust risk management and control processes around fair value measurement. For available-for-sale securities and fair value option loans, agency staff can also compare the fair values reported in Schedule RC-Q with the amortized cost and unpaid principal balance, respectively, reported for these assets in the Call Report to understand the extent and direction of these measurement differences and their potential effect on regulatory capital should a substantial portion of these assets need to be sold. The agencies also use this information to evaluate the extent of Level 3 fair value measurements of certain assets and liabilities because of the extensive use of unobservable inputs to estimate these fair values, as well as to monitor trading asset valuations and shifts in the fair value hierarchy valuation levels among trading assets over time and across capital markets.

Information in Schedule RC-Q is also used by agency examination staff to analyze capital, asset quality, earnings, and liquidity components of CAMELS. The agencies also use data reported in Schedule RC-Q in credit risk management tools. Obtaining these data on a quarterly basis allows for closer monitoring of credit risk changes affecting assets measured at fair value. The data are also used to monitor bank performance, emerging trends, and certain mortgage servicing assets.

Schedule RC-S (Servicing, Securitization, and Asset Sale Activities) [FFIEC 031 and FFIEC 041]

Schedule RC-S collects data on servicing, securitization, and asset sale activities. The majority of these data represents off-balance sheet activities. The agencies use the data provided in this schedule primarily for risk identification and examination scoping purposes.

Exposures reported in Schedule RC-S can affect an institution's liquidity outlook. For example, if an institution has a commitment to provide liquidity to its own or other institutions' securitization structures or has provided credit enhancements in the form of recourse or standby letters of credit for assets it has sold or securitized, the agencies need to consider such funding commitments to properly monitor and assess the full scope of an institution's liquidity position. This schedule also captures past due amounts for loans the reporting institution has sold and securitized on which it has retained servicing or has provided recourse or other credit enhancements. This past due information, and trends in the past due amounts, are critical to the agencies' ability to evaluate the credit quality of the underlying assets in securitization structures on an off-site basis and timely identify any credit quality deterioration for supervisory follow-up, including, if applicable, the effect of increased servicing costs on current and forecasted earnings. Defaulting assets underlying securitization structures played a major role during the recent financial crisis, so it is imperative the agencies have the information necessary to continuously monitor the performance of these assets.

The agencies also use Schedule RC-S data to analyze whether an institution has adequate capital to cover losses arising from liquidity commitments or recourse obligations if the underlying assets in securitizations begin to default, especially in the event of an economic downturn. In addition, on an industry-wide basis, changes in the level of activity reported in the various items of this schedule enables the agencies to identify emerging trends within the securitization sector, which supports the development, as needed, of supervisory policies and related guidance for institutions and examiners.

Schedule RC-S is also used by the agencies to prepare for on-site examinations. Specifically, the level of activity reported in Schedule RC-S helps the agencies make examination resource decisions, such as whether capital markets or consumer compliance specialists are needed on-site. (Consumer compliance regulations apply to loans an institution continues to service after sale or securitization.) For example, in the event there are increasing amounts of past due loans that an institution has sold and securitized, additional resources can be allocated to examining the institution's lending policies and practices and internal controls.

Schedule RC-T (Fiduciary and Related Services)

Schedule RC-T collects data on fiduciary assets and accounts, income generated from those accounts and other fiduciary services, and related fiduciary activities. The amount of data reported in Schedule RC-T and the frequency of reporting varies depending on an institution's total fiduciary assets and its fiduciary income. The most detail, including income information, is provided quarterly by institutions that have more than $250 million in fiduciary assets or meet a fiduciary income test; other trust institutions report less information in Schedule RC-T annually as of December 31.

Trust services are an integral part of the banking business for more than 20 percent of all institutions. The granularity of the data in Schedule RC-T, especially for the types of managed assets held in fiduciary accounts, aids the agencies in determining the complexity of an institution's fiduciary services risk profile. Furthermore, the agencies use Schedule RC-T data to monitor changes in the volume and character of discretionary trust activity and the volume of nondiscretionary trust activity at a trust institution, which facilitates their assessment of the nature and risks of the institution's fiduciary activities. The institution's risk profile in these areas is considered during pre-examination planning to determine the appropriate scoping and staffing for trust examinations.

The Schedule RC-T data also are used when examiners consider the ratings to be assigned to trust institutions under the Uniform Interagency Trust Rating System (UITRS). The UITRS considers certain managerial, operational, financial, and compliance factors that are common to all institutions with fiduciary activities. Under this system, the supervisory agencies endeavor to ensure that all institutions with fiduciary activities are evaluated in a comprehensive and uniform manner, and that supervisory attention is appropriately focused on those institutions exhibiting weaknesses in their fiduciary operations.

Schedule RC-T provides a breakdown of the amount and number of managed and non-managed accounts by the types of different trust accounts. Personal trusts, employee benefit trusts, and corporate trusts are reported separately because of their substantive differences in nature and risk. Having a detailed breakdown between managed and non-managed accounts is critical because managed accounts have greater levels of investment, legal, reputational, and compliance risks compared to non-managed accounts, and require more supervisory oversight. This account information supports examination scoping and staffing because the evaluation of different types of trust accounts requires differences in expertise.

Data reported by larger trust institutions on fiduciary and related services income and on Start Printed Page 51921fiduciary settlements, surcharges, and other losses provide information on the overall profitability of the institution's fiduciary activities and supports the assessment of the Earnings component of the UITRS rating. These assessments consider such factors as the profitability of fiduciary activities in relation to the size and scope of the institution's trust product lines and its overall trust business. In addition, fiduciary settlements, surcharges, and other losses signal mishandling, operational failure, or fraud, which pose higher than normal risk exposure to the institution and raise questions for supervisory follow-up about the effectiveness of the institution's controls over its fiduciary activities. These data also are monitored off-site and used to make interim rating changes in the UITRS Earnings rating between scheduled examinations.

Data in the Schedule RC-T Memorandum items include the market values of managed assets held in fiduciary accounts by type of account and asset class and the number of collective investment funds and common trust funds and the market value of fund assets by type of fund. The exercise of investment discretion adds a significant element of risk to the administration of managed fiduciary accounts. The breakdowns by asset class and type of fund enable the agencies to monitor trends, both on a trust industry-wide basis and an individual trust institution basis, in how institutions with investment discretion are investing the assets of managed accounts and investment funds. The market value breakdowns of managed assets by asset class provide an indicator of complexity by separating more complex and hard-to-value assets that carry higher levels of risk from those assets that pose less risk. These data also contribute to effective examination scoping and staffing so that trust examiners can be assigned, and their time allocated, to examining those more complex and higher risk activities in which they have expertise. For example, the separately reported managed asset classes of real estate mortgages and real estate are distinctly different asset classes with different risk and return profiles, cash flows, and liquidity characteristics. Thus, concentrations in either of these asset classes may inform the supervisory strategy for managed fiduciary accounts, including the level of specialized expertise that may be required when there are concentrations in these asset classes.

Trust institutions also report the number of corporate and municipal debt issues for which the institution serves as trustee that are in substantive default and the outstanding principal amount of these debt issues. A substantive default occurs when the issuer fails to make a required payment of interest or principal, defaults on a required payment into a sinking fund, or is declared bankrupt or insolvent. The occurrence of a substantive default significantly raises the risk profile for the institution serving as an indenture trustee of a defaulted issue and can result in the incurrence of significant expenses and the distraction of managerial time and attention from other areas of trust administration. Thus, by monitoring the corporate trust data reported in Schedule RC-T between examinations, the agencies are able to identify changes in the risk profile of institutions acting as indenture trustees for timely supervisory follow-up and appropriate examination scoping and staffing.

The existence of fiduciary activities reported in Schedule RC-T may result in scoping certain areas of review into a consumer compliance examination, such as privacy and incentive-based cross-selling. The schedule also contains essential information for statistical and analytical purposes, including calculating the OCC assessments for independent trust banks.

Schedule RC-V (Variable Interest Entities) [FFIEC 031 and FFIEC 041 only]

Schedule RC-V collects information on an institution's consolidated variable interest entities (VIEs) as defined by FASB ASC Topic 810, Consolidation. The data are used in determining the extent to which an institution's VIEs have been created as securitization vehicles to pool and repackage mortgages, other assets, or other credit exposures into securities that have been or can be transferred to investors or for other purposes. Examiners and reviewers can quantify the level of cash and noninterest-bearing balances, securities, loans, and other assets as well as liabilities tied to VIEs that are reflected in the amounts reported in the corresponding asset and liability categories on the parent institution's consolidated balance sheet. While securitization activities present many risks, the data on VIEs are particularly useful for monitoring and examining credit risk or the risk to earnings performance from the VIEs' activities. Depending on the volume of an institution's VIEs, VIE assets that can be used only to settle obligations of the consolidated VIEs can also impact off-site assessments of the parent institution's liquidity position given the restrictions on the use of the VIEs' assets for borrowing purposes. Thus, the analysis of amounts reported in Schedule RC-V assists with planning the proper scoping and staffing of examinations of institutions with activities conducted through VIEs.

Appendix B

FFIEC 051: To Be Completed by Banks With Domestic Offices Only and Total Assets Less Than $1 Billion

Data Items Removed, Other Impacts to Data Items, or New or Increased Reporting Threshold

Data Items Removed

Schedule RC-A, Cash and Balances Due From Depository Institutions, Removed

ScheduleItemItem nameMDRM No.
RC-B4.a.(1)Residential mortgage pass-through securities: Guaranteed by GNMA (Columns A through D)RCONG300, RCONG301, RCONG302, RCONG303.
RC-B4.a.(2)Residential mortgage pass-through securities: Issued by FNMA and FHLMC (Columns A through D)RCONG304, RCONG305, RCONG306, RCONG307.
Note: Items 4.a.(1) and 4.a.(2) of Schedule RC-B will be combined into one data item (new item 4.a)
RC-F3.aInterest-only strips receivable (not in the form of a security) on mortgage loansRCONA519.
RC-F3.bInterest-only strips receivable (not in the form of a security) on other financial assetsRCONA520.
Note: Items 3.a and 3.b of Schedule RC-F will be combined into one data item (new item 3)
RC-F6.dRetained interests in accrued interest receivable related to securitized credit cardsRCONC436.
SU8.eOutstanding credit card fees and finance charges included in retail credit card receivables sold and securitized with servicing retained or with recourse or other seller-provided credit enhancementsRCONC407.

Other Impacts to Data ItemsStart Printed Page 51922

ScheduleItemItem nameMDRM No.
RC-B4.a.(1) (New)Residential mortgage pass-through securities: Issued or guaranteed by FNMA, FHLMC, or GNMA (Columns A through D)To be determined (TBD)—4 MDRM Numbers.
Note: Items 4.a.(1) and 4.a.(2) of Schedule RC-B will be combined into this data item
RC-F3 (New)Interest-only strips receivable (not in the form of a security)TBD.
Note: Items 3.a and 3.b of Schedule RC-F removed above will be combined into this data item

Data Items With a New or Increased Reporting Threshold

Schedule RC-T: Increase the threshold for the exemption from reporting Schedule RC-T items 14 through 26 institutions with fiduciary assets of $100 million or less to institutions with fiduciary assets of $250 million or less (that do not meet the fiduciary income test for quarterly reporting).

ScheduleItemItem nameMDRM No.
RC-T14Income from personal trust and agency accountsRIADB904.
RC-T15.aIncome from employee benefit and retirement-related trust and agency accounts: Employee benefit—defined contributionRIADB905.
RC-T15.bIncome from employee benefit and retirement-related trust and agency accounts: Employee benefit—defined benefitRIADB906.
RC-T15.cIncome from employee benefit and retirement-related trust and agency accounts: Other employee benefit and retirement-related accountsRIADB907.
RC-T16Income from corporate trust and agency accountsRIADA479.
RC-T17Income from investment management and investment advisory agency accountsRIADJ315.
RC-T18Income from foundation and endowment trust and agency accountsRIADJ316.
RC-T19Income from other fiduciary accountsRIADA480.
RC-T20Income from custody and safekeeping accountsRIADB909.
RC-T21Other fiduciary and related services incomeRIADB910.
RC-T22Total gross fiduciary and related services incomeRIAD4070.
RC-T23Less: ExpensesRIADC058.
RC-T24Less: Net losses from fiduciary and related servicesRIADA488.
RC-T25Plus: Intracompany income credits for fiduciary and related servicesRIADB911.
RC-T26Net fiduciary and related services incomeRIADA491.

To be completed by banks with collective investment funds and common trust funds with a total market value of $1 billion or more as of the preceding December 31.

ScheduleItemItem nameMDRM No.
RC-TM3.aCollective investment funds and common trust funds: Domestic equity (Columns A and B)RCONB931, RCONB932.
RC-TM3.bCollective investment funds and common trust funds: International/Global equity (Columns A and B)RCONB933, RCONB934.
RC-TM3.cCollective investment funds and common trust funds: Stock/Bond blend (Columns A and B)RCONB935, RCONB936.
RC-TM3.dCollective investment funds and common trust funds: Taxable bond (Columns A and B)RCONB937, RCONB938.
RC-TM3.eCollective investment funds and common trust funds: Municipal bond (Columns A and B)RCONB939, RCONB940.
RC-TM3.fCollective investment funds and common trust funds: Short-term investments/Money market (Columns A and B)RCONB941, RCONB942.
RC-TM3.gCollective investment funds and common trust funds: Specialty/Other (Columns A and B)RCONB943, RCONB944.

Appendix C

FFIEC 041: To Be Completed by Banks With Domestic Offices Only and Consolidated Total Assets Less Than $100 Billion, Except Those Banks That File the FFIEC 051

Data Items Removed, Other Impacts to Data Items, or New or Increased Reporting Threshold

Data Items RemovedStart Printed Page 51923

ScheduleItemItem nameMDRM No.
RC-A2.aBalances due from U.S. branches and agencies of foreign banksRCON0083.
RC-A2.bBalances due from other commercial banks in the U.S. and other depository institutions in the U.SRCON0085.
Note: Items 2.a and 2.b of Schedule RC-A will be combined into one data item (new item 2)
RC-A3.aBalances due from foreign branches of other U.S. banksRCON0073.
RC-A3.bBalances due from other banks in foreign countries and foreign central banksRCON0074.
Note: Items 3.a and 3.b of Schedule RC-A will be combined into one data item (new item 3)
RC-F3.aInterest-only strips receivable (not in the form of a security) on mortgage loansRCONA519.
RC-F3.bInterest-only strips receivable (not in the form of a security) on other financial assetsRCONA520.
Note: Items 3.a and 3.b of Schedule RC-F will be combined into one data item (new item 3)
RC-F6.dRetained interests in accrued interest receivable related to securitized credit cardsRCONC436.
RC-NM5.b.(1)Loans measured at fair value: Fair value (Columns A through C)RCONF664, RCONF665, RCONF666.
RC-NM5.b.(2)Loans measured at fair value: Unpaid principal balance (Columns A through C)RCONF667, RCONF668, RCONF669.
RC-P1.aRetail originations during the quarter of 1-4 family residential mortgage loans for sale: Closed-end first liensRCONF066.
RC-P1.bRetail originations during the quarter of 1-4 family residential mortgage loans for sale: Closed-end junior liensRCONF067.
RC-P1.c.(1)Retail originations during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Total commitment under the lines of creditRCONF670.
Note: Items 1.a, 1.b, and 1.c.(1) of Schedule RC-P will be combined into one data item (new item 1)
RC-P1.c.(2)Retail originations during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Principal amount funded under the lines of creditRCONF671.
RC-P2.aWholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Closed-end first liensRCONF068.
RC-P2.bWholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Closed-end junior liensRCONF069.
RC-P2.c.(1)Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Total commitment under the lines of creditRCONF672.
Note: Items 2.a, 2.b, and 2.c.(1) of Schedule RC-P will be combined into one data item (new item 2)
RC-P2.c.(2)Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Principal amount funded under the lines of creditRCONF673.
RC-P3.a1-4 family residential mortgage loans sold during the quarter: Closed-end first liensRCONF070.
RC-P3.b1-4 family residential mortgage loans sold during the quarter: Closed-end junior liensRCONF071.
RC-P3.c.(1)1-4 family residential mortgage loans sold during the quarter: Total commitment under the lines of creditRCONF674.
Note: Items 3.a, 3.b, and 3.c.(1) of Schedule RC-P will be combined into one data item (new item 3)
RC-P3.c.(2)1-4 family residential mortgage loans sold during the quarter: Principal amount funded under the lines of creditRCONF675.
RC-P4.a1-4 family residential mortgage loans held for sale or trading at quarter-end: Closed-end first liensRCONF072.
RC-P4.b1-4 family residential mortgage loans held for sale or trading at quarter-end: Closed-end junior liensRCONF073.
RC-P4.c.(1)1-4 family residential mortgage loans held for sale or trading at quarter-end: Total commitment under the lines of creditRCONF676.
Note: Items 4.a, 4.b, and 4.c.(1) of Schedule RC-P will be combined into one data item (new item 4)
RC-P4.c.(2)1-4 family residential mortgage loans held for sale or trading at quarter-end: Principal amount funded under the lines of creditRCONF677.
RC-P5.aNoninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loans: Closed-end 1-4 family residential mortgage loansRIADF184.
RC-P5.bNoninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loans: Open-end 1-4 family residential mortgage loans extended under lines of creditRIADF560.
Note: Items 5.a and 5.b of Schedule RC-P will be combined into one data item (new item 5)
Start Printed Page 51924
RC-P6.aRepurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Closed-end first liensRCONF678.
RC-P6.bRepurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Closed-end junior liensRCONF679.
RC-P6.c.(1)Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Total commitment under the lines of creditRCONF680.
Note: Items 6.a, 6.b, and 6.c.(1) of Schedule RC-P will be combined into one data item (new item 6)
RC-P6.c.(2)Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Principal amount funded under the lines of creditRCONF681.
RC-Q2Federal funds sold and securities purchased under agreements to resell (Columns A through E)RCONG478, RCONG479, RCONG480, RCONG481, RCONG482.
Note: Item 2 of Schedule RC-Q will be included in item 6, All other assets
RC-Q9Federal funds purchased and securities sold under agreements to repurchase (Columns A through E)RCONG507, RCONG508, RCONG509, RCONG510, RCONG511.
RC-Q11Other borrowed money (Columns A through E)RCONG521, RCONG522, RCONG523, RCONG524, RCONG525.
RC-Q12Subordinated notes and debentures (Columns A through E)RCONG526, RCONG527, RCONG528, RCONG529, RCONG530.
Note: Items 9, 11 and 12 of Schedule RC-Q will be included in item 13, All other liabilities
RC-QM3.a.(1)Loans measured at fair value: Construction, land development, and other land loansRCONF578.
RC-QM3.a.(2)Loans measured at fair value: Secured by farmlandRCONF579.
RC-QM3.a.(4)Loans measured at fair value: Secured by multifamily (5 or more) residential propertiesRCONF583.
RC-QM3.a.(5)Loans measured at fair value: Secured by nonfarm nonresidential propertiesRCONF584.
Note: Items M3.a.(1), M3.a.(2), M3.a.(4), and M3.a.(5) of Schedule RC-Q will be combined into one data item (new item M3.a.(2))
RC-QM3.a.(3)(a)Loans measured at fair value: Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of creditRCONF580.
RC-QM3.a.(3)(b)(1)Loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by first liensRCONF581.
RC-QM3.a.(3)(b)(2)Loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by junior liensRCONF582.
Note: Items M3.a.(3)(a), M3.a.(3)(b)(1), and M3.a.(3)(b)(2) of Schedule RC-Q will be combined into one data item (new item M3.a.(1))
RC-QM3.c.(1)Loans measured at fair value: Credit cardsRCONF586.
RC-QM3.c.(2)Loans measured at fair value: Other revolving credit plansRCONF587.
RC-QM3.c.(3)Loans measured at fair value: Automobile loansRCONK196.
RC-QM3.c.(4)Loans measured at fair value: Other consumer loansRCONK208.
Note: Items M3.c.(1), M3.c.(2), M3.c.(3), and M3.c.(4) of Schedule RC-Q will be combined into one data item (new item M3.c)
RC-QM4.a.(1)Unpaid principal balance of loans measured at fair value: Construction, land development, and other land loansRCONF590.
RC-QM4.a.(2)Unpaid principal balance of loans measured at fair value: Secured by farmlandRCONF591.
RC-QM4.a.(4)Unpaid principal balance of loans measured at fair value: Secured by multifamily (5 or more) residential propertiesRCONF595.
RC-QM4.a.(5)Unpaid principal balance of loans measured at fair value: Secured by nonfarm nonresidential propertiesRCONF596.
Note: Items M4.a.(1), M4.a.(2), M4.a.(4), and M4.a(5) of Schedule RC-Q will be combined into one data item (new item M4.a.(2))
RC-QM4.a.(3)(a)Unpaid principal balance of loans measured at fair value: Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of creditRCONF592.
RC-QM4.a.(3)(b)(1)Unpaid principal balance of loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by first liensRCONF593.
RC-QM4.a.(3)(b)(2)Unpaid principal balance of loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by junior liensRCONF594.
Note: Items M4.a.(3)(a), M4.a.(3)(b)(1), and M4.a.(3)(b)(2) of Schedule RC-Q will be combined into one data item (new item M4.a.(1))
RC-QM4.c.(1)Unpaid principal balance of loans measured at fair value: Credit cardsRCONF598.
RC-QM4.c.(2)Unpaid principal balance of loans measured at fair value: Other revolving credit plansRCONF599.
RC-QM4.c.(3)Unpaid principal balance of loans measured at fair value: Automobile loansRCONK195.
RC-QM4.c.(4)Unpaid principal balance of loans measured at fair value: Other consumer loansRCONK209.
Note: Items M4.c.(1), M4.c.(2), M4.c.(3), and M4.c.(4) of Schedule RC-Q will be combined into one data item (new item M4.c)
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RC-S1Outstanding principal balance of assets sold and securitized by the reporting bank with servicing retained or with recourse or other seller-provided credit enhancements (Columns B through F)RCONB706, RCONB707, RCONB708, RCONB709, RCONB710.
Note: Item 1, Columns B through F, of Schedule RC-S will be included in item 1, Column G
RC-S2.aMaximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of: Credit-enhancing interest-only strips (Columns A through G)RCONB712, RCONB713, RCONB714, RCONB715, RCONB716, RCONB717, RCONB718.
RC-S2.bMaximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of: Subordinated securities and other residual interests (Columns A through G)RCONC393, RCONC394, RCONC395, RCONC396, RCONC397, RCONC398, RCONC399.
RC-S2.cMaximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of: Standby letters of credit and other enhancements (Columns A through G)RCONC400, RCONC401, RCONC402, RCONC403, RCONC404, RCONC405, RCONC406.
Note: Items 2.a, 2.b, and 2.c, Columns A and G, of Schedule RC-S will be combined into one data item (new item 2) for Columns A and G
RC-S3Reporting bank's unused commitments to provide liquidity to structures reported in item 1 (Columns A through G)RCONB726, RCONB727, RCONB728, RCONB729, RCONB730, RCONB731, RCONB732.
RC-S4.aPast due loan amounts included in item 1: 30-89 days past due (Columns B through F)RCONB734, RCONB735, RCONB736, RCONB737, RCONB738.
Note: Item 4.a, Columns B through F, of Schedule RC-S will be included in item 4.a, Column G
RC-S4.bPast due loan amounts included in item 1: 90 days or more past due (Columns B through F) Note: Item 4.b, Columns B through F, of Schedule RC-S will be included in item 4.b, Column GRCONB741, RCONB742, RCONB743, RCONB744, RCONB745.
RC-S5.aCharge-offs and recoveries on assets sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements: Charge-offs (Columns B through F)RIADB748, RIADB749, RIADB750, RIADB751, RIADB752.
Note: Item 5.a, Columns B through F, of Schedule RC-S will be included in item 5.a, Column G
RC-S5.bCharge-offs and recoveries on assets sold and securitized with servicing retained or with recourse or other seller-provided credit enhancements: Recoveries (Columns B through F)RIADB755, RIADB756, RIADB757, RIADB758, RIADB759.
Note: Item 5.b, Columns B through F, of Schedule RC-S will be included in item 5.b, Column G
RC-S6.aAmount of ownership (or seller's) interests carried as: Securities (Columns B, C, and F)RCONB761, RCONB762, RCONB763.
RC-S6.bAmount of ownership (or seller's) interests carried as: Loans (Columns B, C, and F)RCONB500, RCONB501, RCONB502.
Note: Items 6.a and 6.b, Columns B, C, and F, of Schedule RC-S will be combined into one data item (new item 6) for Column G
RC-S7.aPast due loan amounts included in interests reported in item 6.a: 30-89 days past due (Columns B, C, and F)RCONB764, RCONB765, RCONB766.
RC-S7.bPast due loan amounts included in interests reported in item 6.a: 90 days or more past due (Columns B, C, and F)RCONB767, RCONB768, RCONB769.
RC-S8.aCharge-offs and recoveries on loan amounts included in interests reported in item 6.a: 30-89 days past due (Columns B, C, and F)RIADB770, RIADB771, RIADB772.
RC-S8.bCharge-offs and recoveries on loan amounts included in interests reported in item 6.a: 90 days or more past due (Columns B, C, and F)RIADB773, RIADB774, RIADB775.
RC-S9Maximum amount of credit exposure arising from credit enhancements provided by the reporting bank to other institutions' securitization structures in the form of standby letters of credit, purchased subordinated securities, and other enhancements (Columns B through F)RCONB777, RCONB778, RCONB779, RCONB780, RCONB781.
Note: Item 9, Columns B through F, of Schedule RC-S will be included in item 9, Column G
RC-S10Reporting bank's unused commitments to provide liquidity to other institutions' securitization structures (Columns B through F)RCONB784, RCONB785, RCONB786, RCONB787, RCONB788.
Note: Item 10, Columns B through F, of Schedule RC-S will be included in item 10, Column G
RC-S11Assets sold with recourse or other seller-provided credit enhancements and not securitized by the reporting bank (Columns B through F)RCONB791, RCONB792, RCONB793, RCONB794, RCONB795.
Note: Item 11, Columns B through F, of Schedule RC-S will be included in item 11, Column G
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RC-S12Maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to assets reported in item 11 (Columns B through F)RCONB798, RCONB799, RCONB800, RCONB801, RCONB802.
Note: Item 12, Columns B through F, of Schedule RC-S will be included in item 12, Column G
RC-SM1.aSmall business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994: Outstanding principal balanceRCONA249.
Note: Item M.l.a of Schedule RC-S will be included in item 1 or item 11, Column G, as appropriate
RC-SM1.bSmall business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994: Amount of retained recourse on these obligations as of the report dateRCONA250.
Note: Item M.1.b of Schedule RC-S will be included in item 2 or 12, Column G, as appropriate
RC-VAll data items reported for “ABCP Conduits” (Column B)ABCP Conduits (Column B)RCONJ982, RCONJ985, RCONJ988, RCONJ991 RCONJ994, RCONJ997, RCONK001, RCONK004, RCONK007, RCONK010, RCONK013, RCONK016, RCONK019, RCONK022 RCONK025, RCONK028, RCONK031, RCONK034.
Note: Data items currently reported for “ABCP Conduits” (Column B) will be included in the “Other VIEs” column (Column C, to be relabeled as Column B) of Schedule RC-V by line item, as reflected below
RC-V1.bAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Held-to-maturity securities (Columns A and C)RCONJ984, RCONJ986.
RC-V1.cAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Available-for-sale securities (Columns A and C)RCONJ987, RCONJ989.
Note: Items 1.b and 1.c, Columns A and C, of Schedule RC-V will be combined into one data item (new item 1.b) for Columns A and C (the latter to be relabeled as Column B)
RC-V1.dAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Securities purchased under agreements to resell (Columns A and C)RCONJ990, RCONJ992.
Note: Item 1.d, Columns A and C, of Schedule RC-V will be included in item 1.k, Other assets (renumbered as item 1.e), for Columns A and C (the latter to be relabeled as Column B)
RC-V1.eAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Loans and leases held for sale (Column A and C)RCONJ993, RCONJ995.
RC-V1.fAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Loans and leases held for investment (Column A and C)RCONJ996, RCONJ998.
RC-V1.gAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Less: Allowance for loan and lease losses (Columns A and C)RCONJ999, RCONK002.
Note: Items 1.e, 1.f, and 1.g, Columns A and C, of Schedule RC-V will be combined into one data item (new item 1.c) for Columns A and C (the latter to be relabeled as Column B)
RC-V1.hAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Trading assets (other than derivatives) (Columns A and C)RCONK003, RCONK005.
Note: Item 1.h, Columns A and C, of Schedule RC-V will be included in item 1.k, Other assets (renumbered as item 1.e), for Columns A and C (the latter to be relabeled as Column B)
RC-V1.iAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Derivative trading assets (Columns A and C)RCONK006, RCONK008.
Note: Item 1.i, Columns A and C, of Schedule RC-V will be included in item 1.k, Other assets (renumbered as item 1.e), for Columns A and C (the latter to be relabeled as Column B)
RC-V2.aLiabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting bank: Securities sold under agreements to repurchase (Columns A and C)RCONK015, RCONK017.
Note: Item 2.a, Columns A and C, of Schedule RC-V will be included in item 2.e, Other liabilities (renumbered as item 2.b), for Columns A and C (the latter to be relabeled as Column B)
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RC-V2.bLiabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting bank: Derivative trading liabilities (Columns A and C)RCONK018, RCONK020.
Note: Item 2.b, Columns A and C, of Schedule RC-V will be included in item 2.e, Other liabilities (renumbered as item 2.b), for Columns A and C (the latter to be relabeled as Column B)
RC-V2.cLiabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting bank: Commercial paper (Columns A and C)RCONK021, RCONK023.
Note: Item 2.c, Columns A and C, of Schedule RC-V will be included in item 2.d, Other borrowed money (renumbered as item 2.a), for Columns A and C (the latter to be relabeled as Column B)

Other Impacts to Data Items

ScheduleItemItem nameMDRM No.
RC-A2 (New)Balances due from depository institutions in the U.SRCON0082.
Note: Items 2.a. and 2.b of Schedule RC-A will be combined into this data item
RC-A3 (New)Balances due from banks in foreign countries and foreign central banksRCON0070.
Note: Items 3.a. and 3.b of Schedule RC-A will be combined into this data item
RC-F3 (New)Interest-only strips receivable (not in the form of a security)To be determined (TBD).
Note: Items 3.a and 3.b of Schedule RC-F will be combined into this data item
RC-P1 (New)Retail originations during the quarter of 1-4 family residential mortgage loans for saleTBD.
Note: Items 1.a, 1.b, and 1.c.(1) of Schedule RC-P will be combined into this data item
RC-P2 (New)Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for saleTBD.
Note: Items 2.a, 2.b, and 2.c.(1) of Schedule RC-P will be combined into this data item
RC-P3 (New)1-4 family residential mortgage loans sold during the quarterTBD.
Note: Items 3.a, 3.b, and 3.c.(1) of Schedule RC-P will be combined into this data item
RC-P4 (New)1-4 family residential mortgage loans held for sale or trading at quarter-endTBD.
Note: Items 4.a, 4.b, and 4.c.(1) of Schedule RC-P will be combined into this data item
RC-P5 (New)Noninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loansTBD.
Note: Items 5.a and 5.b of Schedule RC-P will be combined into this data item
RC-P6 (New)Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarterTBD.
Note: Items 6.a, 6.b, and 6.c.(1) of Schedule RC-P will be combined into this data item
RC-QM3.a.(1) (New)Loans measured at fair value: Secured by 1-4 family residential propertiesTBD.
Note: Items M3.a.(3)(a), M3.a.(3)(b)(1), and M3.a.(3)(b)(1) of Schedule RC-Q will be combined into this data item
RC-QM3.a.(2) (New)Loans measured at fair value: All other loans secured by real estateTBD.
Note: Items M3.a.(1), M3.a.(2), M3.a.(4), and M3.a.(5) of Schedule RC-Q will be combined into this data item
RC-QM3.c (New)Loans measured at fair value: Loans to individuals for household, family, and other personal expendituresTBD.
Note: Items M3.c.(1), M3.c.(2), M3.c.(3), and M3.c.(4) of Schedule RC-Q will be combined into this data item
RC-QM4.a.(1) (New)Unpaid principal balance of loans measured at fair value: Secured by 1-4 family residential propertiesTBD.
Note: Items M4.a.(3)(a), M4.a.(3)(b)(1), and M4.a.(3)(b)(2) of Schedule RC-Q will be combined into this data item
RC-QM4.a.(2) (New)Unpaid principal balance of loans measured at fair value: All other loans secured by real estateTBD.
Note: Items M4.a.(1), M4.a.(2), M4.a.(4), and M4.a.(5) of Schedule RC-Q will be combined into this data item
RC-QM4.c (New)Unpaid principal balance of loans measured at fair value: Loans to individuals for household, family, and other personal expendituresTBD.
Note: Items M4.c.(1), M4.c.(2), M4.c.(3), and M4.c.(4) of Schedule RC-Q will be combined into this data item
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RC-S2 (New)Maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 (Columns A and G)TBD (2 MDRM numbers).
Note: Items 2.a, 2.b, and 2.c, Columns A and G, of Schedule RC-S will be combined into this data item
RC-S6 (New)Total amount of ownership (or seller's) interest carried as securities or loans (Columns B, C, and F)TBD (3 MDRM Numbers).
Note: Items 6.a and 6.b, Columns B, C, and F, of Schedule RC-S will be combined into this data item for Column G
RC-V1.b (New)Assets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Securities (Columns A and C)TBD (2 MDRM Numbers).
Note: Items 1.b and 1.c, Columns A and C, of Schedule RC-V removed above will be combined into this data item for Columns A and C (the latter to be relabeled as Column B)
RC-V1.c (New)Assets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Loans and leases held for investment, net of allowance, and held for sale (Columns A and C)TBD (2 MDRM Numbers).
Note: Items 1.e, 1.f, and 1.g, Columns A and C, of Schedule RC-V removed above will be combined into this data item for Columns A and C (the latter to be relabeled as Column B)
RC-V5 (New)Total assets of asset-backed commercial paper (ABCP) conduit VIEsTBD.
RC-V6 (New)Total liabilities of ABCP conduit VIEsTBD.

Data Items With a New or Increased Reporting Threshold

Schedule RC-P is to be completed by institutions where any of the following residential mortgage banking activities exceeds $10 million for two consecutive quarters:

  • 1-4 family residential mortgage loan originations and purchases for resale from all sources during a calendar quarter; or
  • 1-4 family residential mortgage loan sales during a calendar quarter; or
  • 1-4 family residential mortgage loans held for sale or trading at calendar quarter-end.

Schedule RC-Q is to be completed by banks that: (1) Have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets and Liabilities.

Schedule RC-T: Increase the threshold for the exemption from reporting Schedule RC-T, data items 14 through 26, from institutions with fiduciary assets of $100 million or less to institutions with fiduciary assets of $250 million or less (that do not meet the fiduciary income test for quarterly reporting).

ScheduleItemItem nameMDRM No.
RC-T14Income from personal trust and agency accountsRIADB904.
RC-T15.aIncome from employee benefit and retirement-related trust and agency accounts: Employee benefit—defined contributionRIADB905.
RC-T15.bIncome from employee benefit and retirement-related trust and agency accounts: Employee benefit—defined benefitRIADB906.
RC-T15.cIncome from employee benefit and retirement-related trust and agency accounts: Other employee benefit and retirement-related accountsRIADB907.
RC-T16Income from corporate trust and agency accountsRIADA479.
RC-T17Income from investment management and investment advisory agency accountsRIADJ315.
RC-T18Income from foundation and endowment trust and agency accountsRIADJ316.
RC-T19Income from other fiduciary accountsRIADA480.
RC-T20Income from custody and safekeeping accountsRIADB909.
RC-T21Other fiduciary and related services incomeRIADB910.
RC-T22Total gross fiduciary and related services incomeRIAD4070.
RC-T23Less: ExpensesRIADC058.
RC-T24Less: Net losses from fiduciary and related servicesRIADA488.
RC-T25Plus: Intracompany income credits for fiduciary and related servicesRIADB911.
RC-T26Net fiduciary and related services incomeRIADA491.

To be completed by banks with collective investment funds and common trust funds with a total market value of $1 billion or more as of the preceding December 31.

ScheduleItemItem nameMDRM No.
RC-TM3.aCollective investment funds and common trust funds: Domestic equity (Columns A and B)RCONB931, RCONB932.
RC-TM3.bCollective investment funds and common trust funds: International/Global equity (Columns A and B)RCONB933, RCONB934.
RC-TM3.cCollective investment funds and common trust funds: Stock/Bond blend (Columns A and B)RCONB935, RCONB936.
RC-TM3.dCollective investment funds and common trust funds: Taxable bond (Columns A and B)RCONB937, RCONB938.
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RC-TM3.eCollective investment funds and common trust funds: Municipal bond (Columns A and B)RCONB939, RCONB940.
RC-TM3.fCollective investment funds and common trust funds: Short-term investments/Money market (Columns A and B)RCONB941, RCONB942.
RC-TM3.gCollective investment funds and common trust funds: Specialty/Other (Columns A and B)RCONB943, RCONB944.

To be completed by banks with $10 billion or more in total assets.

ScheduleItemItem nameMDRM No.
RC-S6 (New)Total amount of ownership (or seller's) interest carried as securities or loans (Column G)TBD.
RC-S10Reporting bank's unused commitments to provide liquidity to other institutions' securitization structures (Columns A and G)RCONB783, RCONB789.
RC-SM3.a.(1)Asset-backed commercial paper conduits: Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the form of standby letters of credit, subordinated securities, and other enhancements: Conduits sponsored by the bank, a bank affiliate, or the bank's holding companyRCONB806.
RC-SM3.a.(2)Asset-backed commercial paper conduits: Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the form of standby letters of credit, subordinated securities, and other enhancements: Conduits sponsored by other unrelated institutionsRCONB807.
RC-SM3.b.(1)Asset-backed commercial paper conduits: Unused commitments to provide liquidity to conduit structures: Conduits sponsored by the bank, a bank affiliate, or the bank's holding companyRCONB808.
RC-SM3.b.(2)Asset-backed commercial paper conduits: Unused commitments to provide liquidity to conduit structures: Conduits sponsored by other unrelated institutionsRCONB809.
RC-SM4Outstanding credit card fees and finance charges included in Schedule RC-S, item 1, column C Note: With the combining of Columns B through F of item 1 of Schedule RC-S into item 1, Column G, of Schedule RC-S, the reference to column C in the caption for M4 will be changed to column GRCONC407.

Appendix D

FFIEC 031: To Be Completed By Banks With Domestic and Foreign Offices and Banks With Domestic Offices Only and Consolidated Total Assets of $100 Billion or More

Data Items Removed, Other Impacts to Data Items, or New or Increased Reporting Threshold

Data Items Removed

ScheduleItemItem nameMDRM No.
RC-A2.aBalances due from U.S. branches and agencies of foreign banks (Column A)RCFD0083.
RC-A2.bBalances due from other commercial banks in the U.S. and other depository institutions in the U.S. (Column A)RCFD0085.
Note: Items 2.a and 2.b (Column A), of Schedule RC-A will be combined into one data item (new item 2)
RC-A3.aBalances due from foreign branches of other U.S. banks (Column A)RCFD0073.
RC-A3.bBalances due from other banks in foreign countries and foreign central banks (Column A)RCFD0074.
Note: Items 3.a and 3.b (Column A), of Schedule RC-A will be combined into one data item (new item 3)
RC-F3.aInterest-only strips receivable (not in the form of a security) on mortgage loansRCFDA519.
RC-F3.bInterest-only strips receivable (not in the form of a security) on other financial assetsRCFDA520.
Note: Items 3.a and 3.b of Schedule RC-F will be combined into one data item (new item 3)
RC-F6.dRetained interests in accrued interest receivable related to securitized credit cardsRCFDC436.
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RC-NM5.b.(1)Loans measured at fair value: Fair value (Columns A through C)RCFDF664, RCFDF665, RCFDF666.
RC-NM5.b.(2)Loans measured at fair value: Unpaid principal balance (Columns A through C)RCFDF667, RCFDF668, RCFDF669.
RC-P1.aRetail originations during the quarter of 1-4 family residential mortgage loans for sale: Closed-end first liensRCONF066.
RC-P1.bRetail originations during the quarter of 1-4 family residential mortgage loans for sale: Closed-end junior liensRCONF067.
RC-P1.c.(1)Retail originations during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Total commitment under the lines of creditRCONF670.
Note: Items 1.a, 1.b, and 1.c.(1) of Schedule RC-P will be combined into one data item (new item 1)
RC-P1.c.(2)Retail originations during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Principal amount funded under the lines of creditRCONF671.
RC-P2.aWholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Closed-end first liensRCONF068.
RC-P2.bWholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Closed-end junior liensRCONF069.
RC-P2.c.(1)Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Total commitment under the lines of creditRCONF672.
Note: Items 2.a, 2.b, and 2.c.(1) of Schedule RC-P will be combined into one data item (new item 2)
RC-P2.c.(2)Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for sale: Open-end loans extended under lines of credit: Principal amount funded under the lines of creditRCONF673.
RC-P3.a1-4 family residential mortgage loans sold during the quarter: Closed-end first liensRCONF070.
RC-P3.b1-4 family residential mortgage loans sold during the quarter: Closed-end junior liensRCONF071.
RC-P3.c.(1)1-4 family residential mortgage loans sold during the quarter: Total commitment under the lines of creditRCONF674.
Note: Items 3.a, 3.b, and 3.c.(1) of Schedule RC-P will be combined into one data item (new item 3)
RC-P3.c.(2)1-4 family residential mortgage loans sold during the quarter: Principal amount funded under the lines of creditRCONF675.
RC-P4.a1-4 family residential mortgage loans held for sale or trading at quarter-end: Closed-end first liensRCONF072.
RC-P4.b1-4 family residential mortgage loans held for sale or trading at quarter-end: Closed-end junior liensRCONF073.
RC-P4.c.(1)1-4 family residential mortgage loans held for sale or trading at quarter-end: Total commitment under the lines of creditRCONF676.
Note: Items 4.a, 4.b, and 4.c.(1) of Schedule RC-P will be combined into one data item (new item 4)
RC-P4.c.(2)1-4 family residential mortgage loans held for sale or trading at quarter-end: Principal amount funded under the lines of creditRCONF677.
RC-P5.aNoninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loans: Closed-end 1-4 family residential mortgage loansRIADF184.
RC-P5.bNoninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loans: Open-end 1-4 family residential mortgage loans extended under lines of creditRIADF560.
Note: Items 5.a and 5.b of Schedule RC-P will be combined into one data item (new item 5)
RC-P6.aRepurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Closed-end first liensRCONF678.
RC-P6.bRepurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Closed-end junior liensRCONF679.
RC-P6.c.(1)Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Total commitment under the lines of creditRCONF680.
Note: Items 6.a, 6.b, and 6.c.(1) of Schedule RC-P will be combined into one data item (new item 6)
RC-P6.c.(2)Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarter: Principal amount funded under the lines of creditRCONF681.
RC-QM3.aLoans measured at fair value: Loans secured by real estate (Column A)RCFDF608.
RC-QM3.a.(1)Loans measured at fair value: Construction, land development, and other land loans (Column B)RCONF578.
RC-QM3.a.(2)Loans measured at fair value: Secured by farmland (Column B)RCONF579.
RC-QM3.a.(4)Loans measured at fair value: Secured by multifamily (5 or more) residential properties (Column B)RCONF583.
RC-QM3.a.(5)Loans measured at fair value: Secured by nonfarm nonresidential properties (Column B)RCONF584.
Start Printed Page 51931
Note: Items M3.a.(1), M3.a.(2), M3.a.(4), and M3.a.(5), Column B, of Schedule RC-Q will be combined into one data item for the consolidated bank (new item M3.a.(2), Column A)
RC-QM3.a.(3)(a)Loans measured at fair value: Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit (Column B)RCONF580.
RC-QM3.a.(3)(b)(1)Loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by first liens (Column B)RCONF581.
RC-QM3.a.(3)(b)(2)Loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by junior liens (Column B)RCONF582.
Note: Items M3.a.(3)(a), M3.a.(3)(b)(1), and M3.a.(3)(b)(2), Column B, of Schedule RC-Q will be combined into one data item for the consolidated bank (new item M3.a.(1), Column A)
RC-QM3.bLoans measured at fair value: Commercial and industrial loans (Column B)RCONF585.
RC-QM3.c.(1)Loans measured at fair value: Credit cards (Columns A and B)RCFDF586, RCONF586.
RC-QM3.c.(2)Loans measured at fair value: Other revolving credit plans (Columns A and B)RCFDF587, RCONF587.
RC-QM3.c.(3)Loans measured at fair value: Automobile loans (Columns A and B)RCFDK196, RCONK196.
RC-QM3.c.(4)Loans measured at fair value: Other consumer loans (Columns A and B)RCFDK208, RCONK208.
Note: Items M3.c.(1), M3.c.(2), M3.c.(3), and M3.c.(4), Column A, of Schedule RC-Q will be combined into one data item for the consolidated bank (new item M3.c, Column A)
RC-QM3.dLoans measured at fair value: Other loans (Column B)RCONF589.
RC-QM4.aUnpaid principal balance of loans measured at fair value: Loans secured by real estate (Column A)RCFDF609.
RC-QM4.a.(1)Unpaid principal balance of loans measured at fair value: Construction, land development, and other land loans (Column B)RCONF590.
RC-QM4.a.(2)Unpaid principal balance of loans measured at fair value: Secured by farmland (Column B)RCONF591.
RC-QM4.a.(4)Unpaid principal balance of loans measured at fair value: Secured by multifamily (5 or more) residential properties (Column B)RCONF595.
RC-QM4.a.(5)Unpaid principal balance of loans measured at fair value: Secured by nonfarm nonresidential properties (Column B)RCONF596.
Note: Items M4.a.(1), M4.a.(2), M4.a.(4), and M4.a.(5), Column B, of Schedule RC-Q will be combined into one data item for the consolidated bank (new item M4.a.(2), Column A)
RC-QM4.a.(3)(a)Unpaid principal balance of loans measured at fair value: Revolving, open-end loans secured by 1-4 family residential properties and extended under lines of credit (Column B)RCONF592.
RC-QM4.a.(3)(b)(1)Unpaid principal balance of loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by first liens (Column B)RCONF593.
RC-QM4.a.(3)(b)(2)Unpaid principal balance of loans measured at fair value: Closed-end loans secured by 1-4 family residential properties: Secured by junior liens (Column B)RCONF594.
Note: Items M4.a.(3)(a), M4.a.(3)(b)(1), and M4.a.(3)(b)(2), Column B, of Schedule RC-Q will be combined into one data item for the consolidated bank (new item M4.a.(1), Column A)
RC-QM4.bUnpaid principal balance of loans measured at fair value: Commercial and industrial loans (Column B)RCONF597.
RC-QM4.c.(1)Unpaid principal balance of loans measured at fair value: Credit cards (Columns A and B)RCFDF598, RCONF598.
RC-QM4.c.(2)Unpaid principal balance of loans measured at fair value: Other revolving credit plans (Columns A and B)RCFDF599, RCONF599.
RC-QM4.c.(3)Unpaid principal balance of loans measured at fair value: Automobile loans (Columns A and B)RCFDK195, RCONK195.
RC-QM4.c.(4)Unpaid principal balance of loans measured at fair value: Other consumer loans (Columns A and B)RCFDK209, RCONK209.
Note: Items M4.c.(1), M4.c.(2), M4.c.(3) and M4.c.(4), Column A, of Schedule RC-Q will be combined into one data item for the consolidated bank (new item M4.c, Column A)
RC-QM4.dUnpaid principal balance of loans measured at fair value: Other loans (Column B)RCONF601.
RC-S2.aMaximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of: Credit-enhancing interest-only strips (Columns A through G)RCFDB712, RCFDB713, RCFDB714, RCFDB715, RCFDB716, RCFDB717, RCFDB718.
RC-S2.bMaximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of: Subordinated securities and other residual interests (Columns A through G)RCFDC393, RCFDC394, RCFDC395, RCFDC396, RCFDC397, RCFDC398, RCFDC399.
RC-S2.cMaximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 in the form of: Standby letters of credit and other enhancements (Columns A through G)RCFDC400, RCFDC401, RCFDC402, RCFDC403, RCFDC404, RCFDC405, RCFDC406.
Start Printed Page 51932
Note: Items 2.a, 2.b, and 2.c, Columns A through G, of Schedule RC-S will be combined into one data item (new item 2) for Columns A through G
RC-S6.aAmount of ownership (or seller's) interests carried as: Securities (Columns B, C and F)RCFDB761, RCFDB762, RCFDB763.
RC-S6.bAmount of ownership (or seller's) interests carried as: Loans (Columns B, C and F)
Note: Items 6.a and 6.b, Columns B, C, and F, of Schedule RC-S will be combined into one data item (new item 6).RCFDB500, RCFDB501, RCFDB502.
RC-S7.aPast due loan amounts included in interests reported in item 6.a: 30-89 days past due (Columns B, C, and F)RCFDB764, RCFDB765, RCFDB766.
RC-S7.bPast due loan amounts included in interests reported in item 6.a: 90 days or more past due (Columns B, C, and F)RCFDB767, RCFDB768, RCFDB769.
RC-S8.aCharge-offs and recoveries on loan amounts included in interests reported in item 6.a: 30-89 days past due (Columns B, C, and F)RIADB770, RIADB771, RIADB772.
RC-S8.bCharge-offs and recoveries on loan amounts included in interests reported in item 6.a: 90 days or more past due (Columns B, C, and F)RIADB773, RIADB774, RIADB775.
RC-S9Maximum amount of credit exposure arising from credit enhancements provided by the reporting bank to other institutions' securitization structures in the form of standby letters of credit, purchased subordinated securities, and other enhancements (Columns B and C)RCFDB777, RCFDB778.
Note: Item 9, Columns B and C, of Schedule RC-S will be included in item 9, Column G
RC-S10Reporting bank's unused commitments to provide liquidity to other institutions' securitization structures (Columns B and C)RCFDB784, RCFDB785.
Note: Item 10, Columns B and C, of Schedule RC-S will be included in item 10, Column G
RC-S11Assets sold with recourse or other seller-provided credit enhancements and not securitized by the reporting bank (Columns B through F)RCFDB791, RCFDB792, RCFDB793, RCFDB794, RCFDB795.
Note: Item 11, Columns B through F, of Schedule RC-S will be included in item 11, Column G
RC-S12Maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to assets reported in item 11 (Columns B through F)RCFDB798, RCFDB799, RCFDB800, RCFDB801, RCFDB802.
Note: Item 12, Columns B through F, of Schedule RC-S will be included in item 12, Column G
RC-SM1.aSmall business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994: Outstanding principal balanceRCFDA249.
Note: Item M1.a of Schedule RC-S will be included in item 1 or item 11, Column F, as appropriate
RC-SM1.bSmall business obligations transferred with recourse under Section 208 of the Riegle Community Development and Regulatory Improvement Act of 1994: Amount of retained recourse on these obligations as of the report dateRCFDA250.
Note: Item M1.b of Schedule RC-S will be included in item 2 or item 12, Column F, as appropriate
RC-VAll data items reported for “ABCP Conduits” (Column B)ABCP Conduits (Column B)RCFDJ982, RCFDJ985, RCFDJ988, RCFDJ991 RCFDJ994, RCFDJ997, RCFDK001, RCFDK004, RCFDK007, RCFDK010, RCFDK013, RCFDK016, RCFDK019, RCFDK022 RCFDK025, RCFDK028 RCFDK031, RCFDK034.
Note: Data items currently reported for “ABCP Conduits” (Column B) will be included in the “Other VIEs” column (Column C, to be relabeled as Column B) of Schedule RC-V by line item, as reflected below
RC-V1.bAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Held-to-maturity securities (Columns A and C)RCFDJ984, RCFDJ986.
RC-V1.cAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Available-for-sale securities (Columns A and C)RCFDJ987, RCFDJ989.
Note: Items 1.b and 1.c, Columns A and C, of Schedule RC-V will be combined into one data item (new item 1.b) for Columns A and C
RC-V1.dAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Securities purchased under agreements to resell (Columns A and C)RCFDJ990, RCFDJ992.
Note: Item 1.d, Columns A and C, of Schedule RC-V will be included in item 1.k, Other assets (renumbered as item 1.b), for Columns A and C (the latter to be relabeled as Column B)
Start Printed Page 51933
RC-V1.eAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Loans and leases held for sale (Column A and C)RCFDJ993, RCFDJ995.
RC-V1.fAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Loans and leases held for investment (Column A and C)RCFDJ996, RCFDJ998.
RC-V1.gAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Less: Allowance for loan and lease losses (Columns A and C)RCFDJ999, RCFDK002.
Note: Items 1.e, 1.f, and 1.g, Columns A and C, of Schedule RC-V will be combined into one data item (new item 1.c) for Columns A and C (the latter to be relabeled as Column B)
RC-V1.hAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Trading assets (other than derivatives) (Columns A and C)RCFDK003, RCFDK005.
Note: Item 1.h, Columns A and C, of Schedule RC-V will be included in item 1.k (renumbered as item 1.e), Other assets, for Columns A and C (the latter to be relabeled as Column B)
RC-V1.iAssets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Derivative trading assets (Columns A and C)RCFDK006, RCFDK008.
Note: Item 1.i, Columns A and C, of Schedule RC-V will be included in item 1.k, Other assets (renumbered as item 1.e), for Columns A and C (the latter to be relabeled as Column B)
RC-V2.aLiabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting bank: Securities sold under agreements to repurchase (Columns A and C)RCFDK015, RCFDK017.
Note: Item 2.a, Columns A and C, of Schedule RC-V will be included in item 2.e, Other liabilities (renumbered as item 2.b), for Columns A and C (the latter to be relabeled as Column B)
RC-V2.bLiabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting bank: Derivative trading liabilities (Columns A and C)RCFDK018, RCFDK020.
Note: Item 2.b, Columns A and C, of Schedule RC-V will be included in item 2.e, Other liabilities (renumbered as item 2.b), for Columns A and C (the latter to be relabeled as Column B)
RC-V2.cLiabilities of consolidated VIEs for which creditors do not have recourse to the general credit of the reporting bank: Commercial paper (Columns A and C)RCFDK021, RCFDK023.
Note: Item 2.c, Columns A and C, of Schedule RC-V will be included in item 2.d, Other borrowed money (renumbered as item 2.a), for Columns A and C (the latter to be relabeled as Column B)

Other Impacts to Data Items

ScheduleItemItem nameMDRM No.
RC-A2 (New)Balances due from depository institutions in the U.S. (Column A)RCFD0082.
Note: Items 2.a. and 2.b (Column A), of Schedule RC-A will be combined into this data item
RC-A3 (New)Balances due from banks in foreign countries and foreign central banks (Column A)RCFD0070.
Note: Items 3.a. and 3.b (Column A), of Schedule RC-A will be combined into this data item
RC-F3 (New)Interest-only strips receivable (not in the form of a security)To be determined (TBD).
Note: Items 3.a and 3.b of Schedule RC-F will be combined into this data item
RC-H22 (New)Total amount of fair value option loans held for investment and held for saleTBD.
Note: The proposed threshold change applicable to Schedule RC-Q applies to this item
RC-P1 (New)Retail originations during the quarter of 1-4 family residential mortgage loans for saleTBD.
Note: Items 1.a, 1.b, and 1.c.(1) of Schedule RC-P will be combined into this data item
RC-P2 (New)Wholesale originations and purchases during the quarter of 1-4 family residential mortgage loans for saleTBD.
Note: Items 2.a, 2.b, and 2.c.(1) of Schedule RC-P will be combined into this data item
RC-P3 (New)1-4 family residential mortgage loans sold during the quarterTBD.
Note: Items 3.a, 3.b, and 3.c.(1) of Schedule RC-P will be combined into this data item
RC-P4 (New)1-4 family residential mortgage loans held for sale or trading at quarter-endTBD.
Start Printed Page 51934
Note: Items 4.a, 4.b, and 4.c.(1) of Schedule RC-P will be combined into this data item
RC-P5 (New)Noninterest income for the quarter from the sale, securitization, and servicing of 1-4 family residential mortgage loansTBD.
Note: Items 5.a and 5.b of Schedule RC-P will be combined into this data item
RC-P6 (New)Repurchases and indemnifications of 1-4 family residential mortgage loans during the quarterTBD.
Note: Items 6.a, 6.b, and 6.c.(1) of Schedule RC-P will be combined into this data item
RC-QM3.a.(1) (New)Loans measured at fair value: Secured by 1-4 family residential properties (Column A)TBD.
Note: Items M3.a.(3)(a), M3.a.(3)(b)(1), and M3.a.(3)(b)(2), Column B, of Schedule RC-Q will be combined into this data item for the consolidated bank
RC-QM3.a.(2) (New)Loans measured at fair value: All other loans secured by real estate (Column A)TBD.
Note: Items M3.a.(1), M3.a.(2), M3.a.(4), and M3.a.(5), Column B, of Schedule RC-Q will be combined into this data item for the consolidated bank
RC-QM3.c (New)Loans measured at fair value: Loans to individuals for household, family, and other personal expenditures (Column A)TBD.
Note: Items M3.c.(1), M3.c.(2), M3.c.(3), and M3.c.(4), Column A, of Schedule RC-Q will be combined into this data item
RC-QM4.a.(1) (New)Unpaid principal balance of loans measured at fair value: Secured by 1-4 family residential properties (Column A)TBD.
Note: Items M4.a.(3)(a), M4.a.(3)(b)(1), and M4.a.(3)(b)(2), Column B, of Schedule RC-Q will be combined into this data item for the consolidated bank
RC-QM4.a.(2) (New)Unpaid principal balance of loans measured at fair value: All other loans secured by real estate (Column A)TBD.
Note: Items M4.a.(1), M4.a.(2), M4.a.(4), and M4.a.(5), Column B, of Schedule RC-Q will be combined into this data item for the consolidated bank
RC-QM4.c (New)Unpaid principal balance of loans measured at fair value: Loans to individuals for household, family, and other personal expenditures (Column A)TBD.
Note: Items M4.c.(1), M4.c.(2), M4.c.(3), and M4.c.(4), Column A, of Schedule RC-Q will be combined into this data item
RC-S2 (New)Maximum amount of credit exposure arising from recourse or other seller-provided credit enhancements provided to structures reported in item 1 (Columns A through G)TBD (7 MDRM Numbers).
Note: Items 2.a, 2.b, and 2.c, Columns A through G, of Schedule RC-S will be combined into this data item
RC-S6 (New)Total amount of ownership (or seller's) interest carried as securities or loans (Columns B, C, and F)TBD (3 MDRM Numbers).
Note: Items 6.a and 6.b, Columns B, C, and F, of Schedule RC-S will be combined into this data item
RC-V1.b (New)Assets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Securities (Columns A and C)TBD (2 MDRM Numbers).
Note: Items 1.b and 1.c, Columns A and C, of Schedule RC-V removed above will be combined into this data item for Columns A and C (the latter to be relabeled as Column B)
RC-V1.c (New)Assets of consolidated variable interest entities (VIEs) that can be used only to settle obligations of the consolidated VIEs: Loans and leases held for investment, net of allowance, and held for sale (Columns A and C)TBD (2 MDRM Numbers).
Note: Items 1.e, 1.f, and 1.g, Columns A and C, of Schedule RC-V removed above will be combined into this data item for Columns A and C (the latter to be relabeled as Column B)
RC-V5 (New)Total assets of asset-backed commercial paper (ABCP) conduit VIEsTBD.
RC-V6 (New)Total liabilities of ABCP conduit VIEsTBD.

Data Items With a New or Increased Reporting Threshold

Schedule RC-P is to be completed by institutions where any of the following residential mortgage banking activities (in domestic offices) exceeds $10 million for two consecutive quarters:

  • 1-4 family residential mortgage loan originations and purchases for resale from all sources during a calendar quarter; or
  • 1-4 family residential mortgage loan sales during a calendar quarter; or
  • 1-4 family residential mortgage loans held for sale or trading at calendar quarter-end.

Schedule RC-Q is to be completed by banks that: (1) Have elected to report financial instruments or servicing assets and liabilities at fair value under a fair value option with changes in fair value recognized in earnings, or (2) are required to complete Schedule RC-D, Trading Assets and Liabilities.

Schedule RC-T: Increase the threshold for the exemption from reporting Schedule RC-T, data items 14 through 26, from institutions with fiduciary assets of $100 million or less to institutions with fiduciary assets of $250 million or less (that do not meet the fiduciary income test for quarterly reporting).Start Printed Page 51935

ScheduleItemItem nameMDRM No.
RC-T14Income from personal trust and agency accountsRIADB904.
RC-T15.aIncome from employee benefit and retirement-related trust and agency accounts: Employee benefit—defined contributionRIADB905.
RC-T15.bIncome from employee benefit and retirement-related trust and agency accounts: Employee benefit—defined benefitRIADB906.
RC-T15.cIncome from employee benefit and retirement-related trust and agency accounts: Other employee benefit and retirement-related accountsRIADB907.
RC-T16Income from corporate trust and agency accountsRIADA479.
RC-T17Income from investment management and investment advisory agency accountsRIADJ315.
RC-T18Income from foundation and endowment trust and agency accountsRIADJ316.
RC-T19Income from other fiduciary accountsRIADA480.
RC-T20Income from custody and safekeeping accountsRIADB909.
RC-T21Other fiduciary and related services incomeRIADB910.
RC-T22Total gross fiduciary and related services incomeRIAD4070.
RC-T23Less: ExpensesRIADC058.
RC-T24Less: Net losses from fiduciary and related servicesRIADA488
RC-T25Plus: Intracompany income credits for fiduciary and related servicesRIADB911.
RC-T26Net fiduciary and related services incomeRIADA491.

To be completed by banks with collective investment funds and common trust funds with a total market value of $1 billion or more as of the preceding December 31.

ScheduleItemItem nameMDRM No.
RC-TM3.aCollective investment funds and common trust funds: Domestic equity (Columns A and B)RCFDB931, RCFDB932.
RC-TM3.bCollective investment funds and common trust funds: International/Global equity (Columns A and B)RCFDB933, RCFDB934.
RC-TM3.cCollective investment funds and common trust funds: Stock/Bond blend (Columns A and B)RCFDB935, RCFDB936.
RC-TM3.dCollective investment funds and common trust funds: Taxable bond (Columns A and B)RCFDB937, RCFDB938.
RC-TM3.eCollective investment funds and common trust funds: Municipal bond (Columns A and B)RCFDB939, RCFDB940.
RC-TM3.fCollective investment funds and common trust funds: Short-term investments/Money market (Columns A and B)RCFDB941, RCFDB942.
RC-TM3.gCollective investment funds and common trust funds: Specialty/Other (Columns A and B)RCFDB943, RCFDB944.

To be completed by banks with $10 billion or more in total assets.

ScheduleItemItem nameMDRM No.
RC-S6 (New)Total amount of ownership (or seller's) interest carried as securities or loans (Columns B, C, and F)TBD (3 MDRM Numbers).
RC-S10Reporting bank's unused commitments to provide liquidity to other institutions' securitization structures (Columns A and D through G)RCFDB783, RCFDB786, RCFDB787, RCFDB788, RCFDB789.
RC-SM3.a.(1)Asset-backed commercial paper conduits: Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the form of standby letters of credit, subordinated securities, and other enhancements: Conduits sponsored by the bank, a bank affiliate, or the bank's holding companyRCFDB806.
RC-SM3.a.(2)Asset-backed commercial paper conduits: Maximum amount of credit exposure arising from credit enhancements provided to conduit structures in the form of standby letters of credit, subordinated securities, and other enhancements: Conduits sponsored by other unrelated institutionsRCFDB807.
RC-SM3.b.(1)Asset-backed commercial paper conduits: Unused commitments to provide liquidity to conduit structures: Conduits sponsored by the bank, a bank affiliate, or the bank's holding companyRCFDB808.
RC-SM3.b.(2)Asset-backed commercial paper conduits: Unused commitments to provide liquidity to conduit structures: Conduits sponsored by other unrelated institutionsRCFDB809.
RC-SM4Outstanding credit card fees and finance charges included in Schedule RC-S, item 1, column CRCFDC407.
Start Printed Page 51936

To be completed by banks with $100 billion or more in total assets.

ScheduleItemItem nameMDRM No.
RC-S3Reporting bank's unused commitments to provide liquidity to structures reported in item 1 (Columns A through G)RCFDB726, RCFDB727, RCFDB728, RCFDB729, RCFDB730, RCFDB731, RCFDB732.
Start Signature

Dated: November 2, 2017.

Karen Solomon,

Deputy Chief Counsel, Office of the Comptroller of the Currency.

Board of Governors of the Federal Reserve System, October 31, 2017.

Ann E. Misback,

Secretary of the Board.

Dated at Washington, DC, this 31st day of October, 2017.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.

End Signature End Supplemental Information

Footnotes

1.  Generally, institutions with domestic offices only and total assets less than $1 billion.

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2.  See 80 FR 56539 (September 18, 2015), 81 FR 45357 (July 13, 2016), 81 FR 54190 (August 15, 2016) (referred to hereafter as the “August 2016 Call Report proposal”), 82 FR 2444 (January 9, 2017), and 82 FR 29147 (June 27, 2017) (referred to hereafter as the “June 2017 Call Report proposal”) for further information on the actions taken under this initiative.

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3.  This review is mandated by section 604 of the Financial Services Regulatory Relief Act of 2006 (12 U.S.C. 1817(a)(11)).

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5.  A summary of the FFIEC member entities' uses of the data items retained in the Call Report schedules covered by the first and second portions of the agencies' user surveys are included in Appendix A of the agencies' Federal Register notices published on January 9, 2017 (82 FR 2444) and June 27, 2017 (82 FR 29147), respectively.

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6.  If this preprinted caption were removed and an institution has retained interests in accrued interest receivable related to securitized credit cards in an amount in excess of the reporting threshold, the institution would itemize and describe this component in one of the subitems of item 6 without a preprinted caption.

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7.  An institution does not meet the fiduciary income test if its gross fiduciary and related services income was less than or equal to 10 percent of revenue (net interest income plus noninterest income) for the preceding calendar year.

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8.  If this preprinted caption were removed and an institution has retained interests in accrued interest receivable related to securitized credit cards in an amount in excess of the reporting threshold, the institution would itemize and describe this component in one of the subitems of item 6 without a preprinted caption.

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9.  In the June 2017 Call Report proposal, the agencies proposed comparable consolidation of the detail on loans held for trading, which are measured at fair value, and the unpaid principal balance of such loans in Schedule RC-D.

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10.  An institution does not meet the fiduciary income test if its gross fiduciary and related services income was less than or equal to 10 percent of revenue (net interest income plus noninterest income) for the preceding calendar year.

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11.  If this preprinted caption were removed and an institution has retained interests in accrued interest receivable related to securitized credit cards in an amount in excess of the reporting threshold, the institution would itemize and describe this component in one of the subitems of item 6 without a preprinted caption.

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12.  The new Schedule RC-H item would be completed only by institutions required to complete Schedule RC-Q.

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13.  In the June 2017 Call Report proposal, the agencies proposed comparable consolidation of the detail on loans held for trading, which are measured at fair value, and the unpaid principal balance of such loans in Schedule RC-D.

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14.  An institution does not meet the fiduciary income test if its gross fiduciary and related services income was less than or equal to 10 percent of revenue (net interest income plus noninterest income) for the preceding calendar year.

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15.  CAMELS is an acronym that represents the ratings from six essential components of an institution's financial condition and operations: Capital adequacy, asset quality, management, earnings, liquidity, and sensitivity to market risk. These components represent the primary areas evaluated by examiners during examinations of institutions.

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[FR Doc. 2017-24310 Filed 11-7-17; 8:45 am]

BILLING CODE 4810-33-6710-07;6714-01-P