2019 Call Report Preparation Seminar
The Call Report is constantly changing, producing confusion and many questions. The seminar will provide basic training for new preparers and complete coverage of new and complex issues for experienced preparers.
Overview and Topics Covered
The regulators are continuing on their burden reducing approach and announced more reductions in November, 2018 to the FFIEC 051 forms. The regulators are proposing to increase the small bank eligibility size for filing on the FFIEC 051 form from $1 billion in assets size to $5 billion and to make more line items required only semi-annually. The most significant change to semi-annual reporting will be RCR Pt II lines 1-25, the detail reporting of both on and off balance sheet risk weighting. Total risk weighted assets however, will still be required to be reported. Banks with assets of more than $1 billion will be required to report the consumer deposit detail information on balances and service charges in December only; schedule RIC semi-annually; RCO M2 on a quarterly basis. In a second proposal the regulators are considering regulatory burden relief to qualifying community banking organizations by allowing an option to calculate a simple leverage ratio, rather than multiple measures of capital adequacy.
In September, 2018 the regulators issued proposed revisions to the 2019 Call Report to align the information in the call report with the new credit loss accounting standard. The changes include updates to twelve schedules to address the broader scope of financial assets for which an allowance for credit losses must be established and maintained. Under a CECL proposed notice of rulemaking, a bank may elect to phase in the regulatory capital impact of adopting CECL over a three year period.
In June, 2018 the regulators further burden reducing changes were implemented for both FFIEC 051 and 041 filers. The changes include consolidation and/or removal of several more line items and reductions in the frequency of reporting for about a dozen line items. The 051 form was originally approved in 2017 and may be used by domestic banks with less than $1 billion in assets. The 051 short form has approximately 25 fewer pages and eliminated 40% of the 041 line items as well as reducing the frequency of data collection in some of the schedules.
Additional changes to the June, 2018 Call Report were included in the supplement instructions. The regulators issued an update to the reporting of high volatility commercial real estate (HVCRE) exposures as well as reciprocal deposits.
Simplifications to the risk based capital rules were approved and effective for 2018. The rules simplify the threshold deduction treatment for mortgage servicing assets, deferred taxes arising from temporary differences that can’t be realized through carrybacks, and investments in the capital of unconsolidated financial institutions.
The Call Report is constantly changing, producing confusion and many questions. The seminar will provide basic training for new preparers and complete coverage of new and complex issues for experienced preparers. The Call Report seminar presentation will be in the order of the schedules, starting with the Income Statement schedules followed by all Balance Sheet schedules. New, proposed, and revised changes will be discussed with the schedules they will impact and a summary of all recent updates will be included at the end of the manual.
Participants will receive a 300+ page manual and Ms. Thomas will be available to answer future Call Report questions by email. Annual training is highly recommended by regulators. Participants may want to bring their bank’s most recent Call Report for resolution of questions during the session. The FFIEC 041 & 051 forms will be used in the presentation and materials.
Order of the Program:
· General Instructions
· Income Statement Schedules
RI, Report of Income
RI-A, Changes in Equity Capital
RI-B, Charge-Off’s and Recoveries
RI-C, Disaggregate Allowance for Credit Losses
· Balance Sheet Schedules:
RC, Report of Condition
RC-A, Cash and Due From Banks
RC-F, Other Assets
RC-G, Other Liabilities
RC-K, Average Balances
RC-L, Unused Commitments & Off Balance Sheet Items
RC-N, Past Due & Nonaccruals
RC-O, Insurance Assessments
RC-P, Mortgage Banking Activities
RC-Q, Assets and Liabilities Measured at Fair Value
RC-R, Risk Based Capital, including approved & proposed changes
RC-S, Servicing, Securitization, Sales
RC-T, Trust Department
Recently Proposed and Approved Revisions:
March, 2019 Proposed Revisions
· Increase in small bank asset size eligibility for filing on the FFIEC 051 form from $1 billion to $5 billion
· Option to calculate a simple leverage ratio, rather than multiple measures of capital adequacy for banks that meet certain criteria
· Semi-annual reporting for several more line items on the FFIEC 051 form, primarily RCR Pt II lines 1-25, risk weighting of on and off balance sheet assets
· Banks with assets over $1 billion that file on the FFIEC 051 form will still have to provide information on consumer deposit accounts and the related service charges, disaggregated data on the allowance for credit losses, and uninsured deposits in certain quarters
· Updates to twelve schedules to address the broader scope of financial assets for which an allowance for credit losses must be established and maintained.
June, 2018 Revisions
· New information on the HVCRE definition as well as reporting of reciprocal deposits
· Further burden reducing changes for the FFIEC 051 and 041 forms
· reduction and consolidation of line items
· change in the frequency of data collection for some schedules
March, 2018 Revisions
· maintaining phase in percentage deduction and risk weighting on certain RCR items
Proposed Simplifications to the Capital Rules
· Proposed changes to the capital deductions and risk weighting of mortgage servicing assets (MSAs), deferred tax assets (DTAs) arising from timing differences not realizable through carryback, investments in the capital of unconsolidated financial institutions, and minority interests
Recent Accounting Updates (equities, leases, other real estate)
Call Report preparation requires knowledge of bank accounting, bank regulations, and virtually all bank operations. Banks should train a preparer and reviewer. Anyone responsible for preparing, auditing, or signing the call report will find the program valuable. New and experienced preparers and reviewers should be trained. The seminar will provide basic training for new preparers, though some basic accounting knowledge is helpful, and complete coverage of new and complex issues for experienced preparers.
Annual training is highly recommended by bank regulators.
WHAT TO BRING
Please bring a copy of your general ledger and your latest call report. Bankers find it useful to review classifications during the class as the line items are discussed.
Colorado Location and Overnight Accommodations
Drury Inn & Suites Denver-Westminster
10393 Reed Street
Westminster, Colorado 80021
Telephone: (303) 460-1220
Thank you for choosing Drury Inn & Suites Denver Westminster to be a part of your next great event! We are looking forward to seeing you soon and we are ready to uphold our reputation for great service & value.
At Drury Hotels, we know you have enough to worry about when traveling. In addition to the great rate, our generous amenities will brighten your group’s day and make your journey easier.
- Free Hot Breakfast – Start every day with make-your-own Belgian waffles, scrambled eggs, sausage, fresh fruit, oatmeal, biscuits and gravy, KELSO+BROS® coffee and more. Free hot breakfast is served daily from 6–9:30 a.m. on weekdays and 7–10 a.m. on weekends.
- Free 5:30 Kickback®* – Join us from 5:30–7 p.m. every evening to enjoy free hot food and cold beverages at our 5:30 Kickback®. We feature a rotating menu of hot food, beer, wine, mixed drinks and soft drinks.
- Free Wi-Fi Throughout the Hotel – Get the score, check your social networks or email family members from anywhere in the hotel – for free!
- Free Soft Drinks and Popcorn – Freshly popped popcorn and a refreshing beverage make a great snack! Stop by the lobby for free soft drinks and popcorn every evening.
- On-Site Facilities – Take advantage of the business center, fitness center or pool while you’re away from home. Print your boarding pass, finish a presentation or check e-mail in our business centers.
*Service of alcohol is subject to state and local law. Alcoholic beverages are not complimentary and require a nominal charge at the following hotels due to state and local laws: Drury Inn Bowling Green, Drury Suites Paducah, Drury Inn Paducah, and Drury Inn & Suites Louisville.
Missouri Location and Overnight Accommodations
Sheraton Westport Conference Center
900 Westport Plaza
St. Louis, Missouri
Room Rate: $149.00. To make a reservation, email Jeff Bertram at jeff.bertram@swphotels with name and nights needed. Reservations must be made by 03/01/19.
Ann Thomas has over thirty years of experience in bank accounting and control. She received a BA in Accounting from the University of Houston in 1982. She worked with Judith Alexander Jenkins for 15 years, providing planning, financial reporting, regulatory reporting, and operational and compliance auditing services to over ninety independent banks.
In 1998, she organized Thomas Consulting. As Thomas Consulting, she has performed regulatory compliance audits and training, internal control audits, and prepares and reviews Call Reports for numerous banks. Ms. Thomas has taught call report seminars for state banking associations since 1999. She has presented the Call Report Seminars to and has responded to questions from thousands of bankers across the country. Her experience in working with a broad range of independent banks is of unique value in understanding Call Report questions and in communicating with bankers in their own language.