Agencies adopt, publish changes to call reports; will be effective for June reporting deadline

Revisions to all three versions of bank call reports were finalized and published Wednesday by the three federal banking agencies, affecting reporting of credit losses, troubled debt restructuring, internet website addresses, and past-due loans, the agencies said Thursday.

The agency noted that the revisions were made under the auspices of the Federal Financial Institutions Examination Council (FFIEC), which were published by the exam council Wednesday. In addition to affecting all three versions of the call report (FFIEC 031, FFIEC 041, and FFIEC 051), the changes also affect the FFIEC’s “Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks (FFIEC 002).” All changes are subject to the approval by the U.S. Office of Management and Budget, the agencies noted.

In September 2023, the agencies proposed revisions to all three versions of the call report and the Federal Reserve Board proposed revisions, as applicable, to the FFIEC 002 related to the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures,” reporting on internet website addresses of depository institution trade names, and reporting on past-due loans.

In a December 2023 notice, the agencies noted, they proposed revisions to all three call report versions of the and the Fed-proposed revisions, as applicable, to the FFIEC 002 related to the reporting of loans to nondepository financial institutions (NDFIs) and other loans, guaranteed structured financial products, and proposed long-term debt requirements. In addition, this notice included a proposal to adopt ongoing standards for electronic signatures to comply with the call report signature and attestation requirement.

In a release Thursday, the agencies said that, after reviewing comments, they were “moving forward with certain proposed revisions related to replacing references to ‘troubled debt restructurings’ with ‘modifications to borrowers experiencing financial difficulty’ consistent with ASU (Accounting Standards Update) 2022-02, the reporting on the internet website addresses of depository institution trade names, and the adoption of the standards for electronic signatures.”

The agencies said the revisions to the forms and instructions will be effective as of the June 30, 2024, report date, the agencies said.

They also said they are implementing revisions related to reporting of loans to non-depository financial institutions (NDFIs) as of the Dec. 31 report date. They are also adding, they said, a new “Memorandum” item that would identify the amounts reported as a structured financial product that are guaranteed by U.S. government agencies or sponsored agencies, which would also be effective as of the Dec. 31 report date.

Revisions to the Consolidated Reports of Condition and Income (Call Reports) and the FFIEC 002 Report