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Enrollment
is open to all bank and credit union employees.
About
The Seminar:
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
- Amendments
- Procedures
- 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
- RI-E, Explanations
- Balance Sheet Schedules:
- RC, Report of Condition
- RC-A, Cash and Due From
Banks
- RC-B, Securities
- RC-C, Loan
- RC-E, Deposits
- RC-F, Other Assets
- RC-G, Other Liabilities
- RC-K, Average Balances
- RC-L, Unused Commitments
& Off Balance Sheet Items
- RC-M, Memoranda
- 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)
When
and Where:
Tuesday
and Wednesday, June 25 & 26, 2019, 9:00 am - 5:00 pm each day.
Drury
Inn & Suites, Reed Street, Westminster (Denver Metro), CO
Who
Should Attend?:
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.
Please
forward email to appropriate person(s).
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.
Instructor:
Ann
Thomas
has twenty-seven years of experience in bank accounting and control. She
received a BA in Accounting from the University of Houston in 1982. From
1982 through 1997 she worked with Judith Alexander Jenkins, as Alexander
& Associates and subsequently Alexander & Leavelle, providing
planning, financial reporting, regulatory reporting, and operational and
compliance auditing services to over ninety independent banks. In 1998, she
organized Thomas Consulting. At Thomas Consulting she now prepares bank
plans, monthly financial reports, performs regulatory compliance audits and
training and internal control audits for several banks. Additionally, she
prepares and reviews Call Reports for various banks. Ms. Thomas has taught
numerous call report seminars for state banking associations. She has
presented the Call Report Seminar to and has responded to questions from
thousands of bankers in over 16 states. Her experience in working with a
broad range of independent financial institutions is of unique value in
understanding Call Report questions and in communicating with bankers in
their language.
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