Call report changes for CECL, EGRRCPA detailed in FDIC letter; phase-in begins as of March report date

A Financial Institution Letter (FIL) detailing changes in bank and thrift call reports related to the current expected credit losses (CECL) accounting standard and provisions of last year’s financial industry regulatory relief statute was issued Wednesday by the Federal Deposit Insurance Corp. (FDIC).

The call report changes, previewed in a September 2018 letter, include changes approved by the umbrella Federal Financial Institutions Examination Council (FFIEC) for all three versions of the call report (FFIEC 031, FFIEC 041, AND FFIEC 051), the Foreign Branch Report of Condition (FFIEC 030), the Abbreviated Foreign Branch Report of Condition (FFIEC 030s), and the Regulatory Capital Reporting for Institutions Subject to the Advanced Capital Adequacy Framework (FFIEC 101). FDIC notes the changes will be phased in starting as of the March 31, 2019, report date. These changes are currently under final review by the Office of Management and Budget (OMB).

“After considering the comments received on the September 2018 proposal, the banking agencies will proceed with the proposed revisions, with slight modification, to all three versions of the Call Report, the FFIEC 030, the FFIEC 030S, and the FFIEC 101,” says the FDIC letter (FIL-10-2019).

The changes to these reports generally result from the revised accounting for credit losses under the Financial Accounting Standards Board’s Accounting Standards Update No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13) and banking agency rules on implementation. Other changes result from two sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA) that affect the information institutions report for high volatility commercial real estate (HVCRE) exposures and reciprocal deposits.

The letter also discusses, among other changes, reduced reporting proposed, under EGRRCPA, for banks having less than $5 billion in total assets that meet specific criteria; and reduced reporting frequency for a number of existing data items in the FFIEC 051 call report that currently are reported quarterly.