Call Report for Banks - Highlights & Pitfalls

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On August 19, 2009, the regulatory agencies proposed changes to the 2010 Call Report to assist in managing the current credit crisis and provide additional data needed to monitor for safety and soundness. Proposed revisions include clarification on the definition of unused commitments, reporting on Reverse Mortgages, new reporting to identify other than temporary losses on debt securities, additional reporting on brokered deposits, quarterly reporting of loans to small business and small farms, and quarterly reporting of number of deposit accounts on RC-O.

Changes were made to the 2009 Call Report as a result of the current conditions in the banking environment. The recent extension of the $250,000 Standard Maximum Deposit Insurance Amount until 2013 will result in changes to RC-O beginning with September, 2009 Call Report. The revisions also respond to recent accounting standards by adding items for held for investment loans acquired in business combinations and revising several schedules for financial reporting changes applicable to minority interests in consolidated subsidiaries. Other changes include a new annual item on a bank's fiscal year end date, exemptions from reporting certain existing call report items for banks with less than $1 billion in total assets, clarifications of "real estate secured" loans and instructional guidance on quantifying misstatements in the call report. There are also revisions to include new or revised items for real estate construction and development loans with capitalized leases, holdings of commercial mortgage backed securities, pledged loans, and remaining maturities of unsecured other borrowings.

Effective with the June, 2009 Call Report, banks must apply FSP FAS 115-2, Recognition and Presentation of Other Than Temporary Impairments, to debt securities. If the fair value of a debt security is less than its amortized cost basis, an entity must assess whether the impairment is other than temporary.