[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39981-39989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-17100]



-----------------------------------------------------------------------



DEPARTMENT OF THE TREASURY



Office of the Comptroller of the Currency



FEDERAL RESERVE BOARD



FEDERAL DEPOSIT INSURANCE CORPORATION



DEPARTMENT OF THE TREASURY



Office of Thrift Supervision




Agency Information Collection Activities; Submission for OMB 

Review; Joint Comment Request



AGENCIES: Office of the Comptroller of the Currency (OCC), Treasury; 

Board of Governors of the Federal Reserve System (Board); Federal 

Deposit Insurance Corporation (FDIC); and Office of Thrift Supervision 

(OTS), Treasury.



ACTION: Notice of information collection to be submitted to OMB for 

review and approval under the Paperwork Reduction Act of 1995.



-----------------------------------------------------------------------



SUMMARY: In accordance with the requirements of the Paperwork Reduction 

Act (PRA) of 1995 (44 U.S.C. chapter 35), the OCC, the Board, the FDIC, 

and the OTS (the ``agencies'') may not conduct or sponsor, and the 

respondent is not required to respond to, an information collection 

unless it displays a currently valid Office of



[[Page 39982]]



Management and Budget (OMB) control number. The agencies, under the 

auspices of the Federal Financial Institutions Examination Council 

(FFIEC), on February 8, 2011, requested public comment for 60 days on 

their proposal to require savings associations currently filing the 

Thrift Financial Report (TFR) to convert to filing the Consolidated 

Reports of Condition and Income (Call Report) beginning with the 

reporting period ending on March 31, 2012 (76 FR 7082).

    In addition, the Board published a notice of its intent to require 

savings and loan holding companies (SLHCs) to submit to the Board all 

regulatory reports that are currently required to be filed by bank 

holding companies (BHCs), beginning with the reporting period ending on 

March 31, 2012 (76 FR 7091). The Board is considering the comments it 

received on the notice of its intent for SLHC reporting and will issue 

its proposal for reporting by SLHCs on or after July 21, 2011, which is 

the date that supervision of SLHCs is transferred from the OTS to the 

Board.

    The TFR and the Call Report are currently approved collections of 

information. Seven comment letters were received on the proposal. In 

addition, the agencies met with two commenters as described later in 

this notice. After considering the comments received on the proposal, 

the agencies hereby give notice of their plan to proceed with the 

proposed conversion to the Call Report and will submit the proposal to 

OMB for review and approval.



DATES: Comments must be submitted on or before August 8, 2011.



ADDRESSES: Interested parties are invited to submit written comments to 

any or all of the agencies. All comments, which should refer to the OMB 

control number(s), will be shared among the agencies. As described 

later in this notice, the OTS will be abolished on July 21, 2011 and 

its functions transferred to the other agencies. Hence, comments 

submitted on or after July 21, 2011 should be addressed to any or all 

of the agencies other than OTS.

    OCC: You should direct all written comments to: Communications 

Division, Office of the Comptroller of the Currency, Mailstop 2-3, 

Attention: 1557-0081, 250 E Street, SW., Washington, DC 20219. In 

addition, comments may be sent by fax to (202) 874-5274, or by 

electronic mail to [email protected],gov. You may personally 

inspect and photocopy comments at the OCC, 250 E Street, SW., 

Washington, DC 20219. For security reasons, the OCC requires that 

visitors make an appointment to inspect comments. You may do so by 

calling (202) 874-4700. Upon arrival, visitors will be required to 

present valid government-issued photo identification and to submit to 

security screening in order to inspect and photocopy comments.

    Board: You may submit comments, which should refer to 

``Consolidated Reports of Condition and Income (FFIEC 031 and 041),'' 

by any of the following methods:

     Agency Web Site: http://www.federalreserve.gov. Follow the 

instructions for submitting comments on the http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.

     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.

     E-mail: [email protected]. Include 

reporting form number in the subject line of the message.

     FAX: (202) 452-3819 or (202) 452-3102.

     Mail: Jennifer J. Johnson, Secretary, Board of Governors 

of the Federal Reserve System, 20th Street and Constitution Avenue, 

NW., Washington, DC 20551.



All public comments are available from the Board's Web site at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 

unless modified for technical reasons. Accordingly, your comments will 

not be edited to remove any identifying or contact information. Public 

comments may also be viewed electronically or in paper in Room MP-500 

of the Board's Martin Building (20th and C Streets, NW.) between 9 a.m. 

and 5 p.m. on weekdays.

    FDIC: You may submit comments, which should refer to ``Consolidated 

Reports of Condition and Income, 3064-0052,'' by any of the following 

methods:

     Agency Web Site: http://www.fdic.gov/regulations/laws/federal/propose.html. Follow the instructions for submitting comments 

on the FDIC Web site.

     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.

     E-mail: [email protected]. Include ``Consolidated Reports 

of Condition and Income, 3064-0052'' in the subject line of the 

message.

     Mail: Gary A. Kuiper, (202) 898-3877, Counsel, Attn: 

Comments, Room F-1072, Federal Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429.

     Hand Delivery: Comments may be hand delivered to the guard 

station at the rear of the 550 17th Street Building (located on F 

Street) on business days between 7 a.m. and 5 p.m.

    Public Inspection: All comments received will be posted without 

change to http://www.fdic.gov/regulations/laws/federal/propose.html 

including any personal information provided. Comments may be inspected 

at the FDIC Public Information Center, Room E-1002, 3501 Fairfax Drive, 

Arlington, VA 22226, between 9 a.m. and 5 p.m. on business days.

    OTS: You may submit comments, identified by ``1550-0023 (TFR: 

Conversion to Call Report),'' by any of the following methods:

     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.

     E-mail address: [email protected]. 

Please include ``1550-0023 (TFR: Conversion to Call Report)'' in the 

subject line of the message and include your name and telephone number 

in the message.

     Fax: (202) 906-6518.

     Mail: Information Collection Comments, Chief Counsel's 

Office, Office of Thrift Supervision, 1700 G Street, NW., Washington, 

DC 20552, Attention: ``1550-0023 (TFR: Conversion to Call Report).''

     Hand Delivery/Courier: Guard's Desk, East Lobby Entrance, 

1700 G Street, NW., from 9:00 a.m. to 4:00 p.m. on business days, 

Attention: Information Collection Comments, Chief Counsel's Office, 

Attention: ``1550-0023 (TFR: Conversion to Call Report).''

    Instructions: All submissions received must include the agency name 

and OMB Control Number for this information collection. All comments 

received will be posted without change to the OTS Internet Site at 

http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1, including any 

personal information provided.

    Docket: For access to the docket to read background documents or 

comments received, go to http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1. In addition, you may inspect comments 

at the Public Reading Room, 1700 G Street, NW., by appointment. To make 

an appointment for access, call (202) 906-5922, send an e-mail to 

public.info@ots.treas.gov">public.info@ots.treas.gov, or send a facsimile transmission to (202) 

906-7755. (Prior notice identifying the materials you will be 

requesting will assist us in serving you.) The OTS schedules 

appointments on business days between 10 a.m. and 4 p.m. In most cases, 

appointments will be



[[Page 39983]]



available the next business day following the date we receive a 

request.

    Additionally, commenters may send a copy of their comments to the 

OMB desk officer for the agencies by mail to the Office of Information 

and Regulatory Affairs, U.S. Office of Management and Budget, New 

Executive Office Building, Room 10235, 725 17th Street, NW., 

Washington, DC 20503, or by fax to (202) 395-6974.



FOR FURTHER INFORMATION CONTACT: For further information about the 

proposal discussed in this notice, please contact any of the agency 

clearance officers whose names appear below.

    In addition, copies of the reporting forms and instructions for the 

FFIEC 031, Consolidated Reports of Condition and Income for a Bank with 

Domestic and Foreign Offices, can be obtained at the FFIEC's Web site 

(http://www.ffiec.gov/forms031.htm).

    Copies of the reporting forms and instructions for the FFIEC 041, 

Consolidated Reports of Condition and Income for a Bank with Domestic 

Offices Only, can be obtained at the FFIEC's Web site (http://www.ffiec.gov/forms041.htm).

    Copies of the reporting forms and instructions for the TFR can be 

obtained at the OTS's Web site (http://www.ots.treas.gov/?p=ThriftFinancialReports).

    OCC: Mary Gottlieb, OCC Clearance Officer, (202) 874-5090, 

Legislative and Regulatory Activities Division, Office of the 

Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219.

    Board: Cynthia Ayouch, Acting Federal Reserve Board Clearance 

Officer, (202) 452-3829, Division of Research and Statistics, Board of 

Governors of the Federal Reserve System, 20th and C Streets, NW., 

Washington, DC 20551. Telecommunications Device for the Deaf (TDD) 

users may call (202) 263-4869.

    FDIC: Gary A. Kuiper, Counsel, (202) 898-3877, Legal Division, 

Federal Deposit Insurance Corporation, 550 17th Street, NW., 

Washington, DC 20429.

    OTS: Ira L. Mills, OTS Clearance Officer, at 

[email protected], (202) 906-6531, or facsimile number (202) 906-

6518, Regulations and Legislation Division, Chief Counsel's Office, 

Office of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552.



SUPPLEMENTARY INFORMATION: The agencies are proposing to revise the 

reporting panel for the Call Report and to cease collection of data 

through all schedules of the TFR beginning with the reporting period 

ending on March 31, 2012. The Call Report is currently an approved 

collection of information for the OCC, the Board, and the FDIC. The TFR 

is currently an approved collection of information for the OTS.

    1. Report Title: Consolidated Reports of Condition and Income (Call 

Report).

    Form Number: Call Report: FFIEC 031 (for banks with domestic and 

foreign offices) and FFIEC 041 (for banks with domestic offices only).

    Frequency of Response: Quarterly.

    Affected Public: Business or other for-profit.



OCC



    OMB Number: 1557-0081.

Current

    Estimated Number of Respondents: 1,427 national banks.

    Estimated Time per Response: 53.38 burden hours.

    Estimated Total Annual Burden: 304,693 burden hours.

Proposed

    Estimated Number of Respondents: 2,091 (1,427 national banks and 

664 federal savings associations).

    Estimated Time per Response: National banks: 53.38 burden hours per 

quarter to file.

    Federal savings associations: 53.38 burden hours per quarter to 

file and 188 burden hours for the first year to convert systems and 

conduct training.

    Estimated Total Annual Burden: National banks: 304,693 burden hours 

to file.

    Federal savings associations: 141,777 burden hours to file; plus 

124,832 burden hours for the first year to convert systems and conduct 

training.

    Total: 571,302 burden hours.



Board



    OMB Number: 7100-0036.

Current

    Estimated Number of Respondents: 826 state member banks.

    Estimated Time per Response: 55.19 burden hours.

    Estimated Total Annual Burden: 182,348 burden hours.

Proposed

    No change.



FDIC



    OMB Number: 3064-0052.

Current

    Estimated Number of Respondents: 4,687 insured state nonmember 

banks.

    Estimated Time per Response: 40.47 burden hours.

    Estimated Total Annual Burden: 758,732 burden hours.

Proposed

    Estimated Number of Respondents: 4,747 (4,687 insured state 

nonmember banks and 60 state savings associations).

    Estimated Time per Response: State nonmember banks: 40.47 burden 

hours per quarter to file.

    State savings associations: 40.47 burden hours per quarter to file 

and 188 burden hours for the first year to convert systems and conduct 

training.

    Estimated Total Annual Burden: State nonmember banks: 758,732 

burden hours to file.

    State savings associations: 9,713 burden hours to file; plus 11,280 

burden hours for the first year to convert systems and conduct 

training.

    Total: 779,725 burden hours.

    The estimated time per response for the Call Report is an average 

that varies by agency because of differences in the composition of the 

institutions under each agency's supervision (e.g., size distribution 

of institutions, types of activities in which they are engaged, and 

existence of foreign offices). The average reporting burden for the 

Call Report is estimated to range from 17 to 700 hours per quarter, 

depending on an individual institution's circumstances.

    2. Report Title: Thrift Financial Report (TFR).

    Form Number: OTS 1313 (for savings associations).

    Frequency of Response: Quarterly; Annually.

    Affected Public: Business or other for-profit.



OTS



    OMB Number: 1550-0023.

Current

    Estimated Number of Respondents: 724 savings associations.

    Estimated Time per Response: 60.3 hours average for quarterly 

schedules and 2.0 hours average for schedules required only annually 

plus recordkeeping of an average of one hour per quarter.

    Estimated Total Annual Burden: 178,973 burden hours.

Proposed

    Estimated Number of Respondents: Not applicable.

    Estimated Time per Response: Not applicable.

    Estimated Total Annual Burden: Not applicable.

    The burden estimates in this notice above are for the quarterly 

filings of the TFR and the Call Report. In addition to those filings, 

savings associations would incur an initial burden of converting 

systems and training staff to prepare and file the Call Report in place 

of the TFR



[[Page 39984]]



as proposed. Accordingly, the burden estimates above in this notice for 

savings associations also include the time to convert to filing the 

Call Report, including necessary systems changes and training staff on 

Call Report preparation and filing, which is estimated to average 188 

hours.

    As a general statement, larger institutions and those with more 

complex operations would expend a greater number of hours than smaller 

institutions and those with less complex operations. An institution's 

use of service providers for the information and accounting support of 

key functions, such as credit processing, transaction processing, 

deposit and customer information, general ledger, and reporting should 

result in lower burden hours for converting to the Call Report. 

Institutions with staff having experience in preparing and filing the 

Call Report should incur lower initial burden hours for converting to 

the Call Report from the TFR.

    A summary of the estimated initial burden hours for savings 

associations regarding the proposed conversion to the Call Report from 

the TFR is presented below.

    Estimated Initial Burden of Proposal:



    Estimated Number of Institutions: 724 savings associations.

    Estimated Time per Institution: 188 burden hours.

    Estimated Total Burden: 136,112 burden hours.



General Description of Reports



    These information collections are mandatory pursuant to: 12 U.S.C. 

161 (for national banks), 12 U.S.C. 324 (for state member banks), 12 

U.S.C. 1817 (for insured state nonmember commercial and savings banks), 

and 12 U.S.C. 1464 (for savings associations). At present, except for 

selected data items, the Call Report and TFR are not given confidential 

treatment.



Abstract



    Institutions submit Call Report and TFR data to the agencies each 

quarter for the agencies' use in monitoring the condition, performance, 

and risk profile of individual institutions and the bank and savings 

association industries as a whole. Call Report and TFR data provide the 

most current statistical data available for evaluating institutions' 

corporate applications, for identifying areas of focus for both on-site 

and off-site examinations, and for monetary and other public policy 

purposes. The agencies use Call Report and TFR data in evaluating 

interstate merger and acquisition applications to determine, as 

required by law, whether the resulting institution would control more 

than ten percent of the total amount of deposits of insured depository 

institutions in the United States. Call Report and TFR data also are 

used to calculate all institutions' deposit insurance and Financing 

Corporation assessments, and national banks' and savings associations' 

assessments.



Effect of Recent Legislation



    The Dodd-Frank Wall Street Reform and Consumer Protection Act, 

Public Law 111-203 (the Dodd-Frank Act) was enacted into law on July 

21, 2010. Title III of the Dodd-Frank Act abolishes the OTS, provides 

for its integration with the OCC effective as of July 21, 2011 (the 

``transfer date''), and transfers the OTS's functions to the OCC, the 

Board, and the FDIC. Under Title III of the Dodd-Frank Act, all 

functions of the OTS relating to federal savings associations and 

rulemaking authority for all savings associations are transferred to 

the OCC. All functions of the OTS relating to state-chartered savings 

associations (other than rulemaking) are transferred to the FDIC. All 

functions of the OTS relating to supervision of SLHCs (including 

rulemaking) are transferred to the Board.

    After careful review, the agencies believe that having common 

financial reports and reporting processes among all FDIC-insured 

entities would be more efficient and would lead to more uniform 

comparisons of financial condition, performance, and trends among 

regulated institutions. For these reasons, the OTS is proposing to 

eliminate the TFR, and the agencies are proposing to require savings 

associations to adopt the reporting routines and processes required of 

all other FDIC-insured banks and savings institutions.

    Section 5(v)(1) of the Home Owners' Loan Act (12 U.S.C. 1464 

(v)(1)) does not contain a specific requirement for collection of 

financial information from savings associations in the TFR format. 

Rather, the statute provides broad authority for the OTS to determine 

the requirements of periodic reports and information needs. Therefore, 

there is no statutory impediment to requiring savings associations to 

convert from the TFR to the Call Report.



Current Actions



I. Overview



    On February 8, 2011, the agencies proposed to implement changes to 

savings associations' data reporting requirements beginning with the 

reporting period ending on March 31, 2012 (76 FR 7082). These changes 

are intended to provide data needed for reasons of safety and soundness 

or other public purposes. The proposed changes would require savings 

associations to cease filing the TFR and commence filing the Call 

Report beginning on the March 31, 2012, report date. After considering 

the comments received on the proposal, the agencies plan to proceed 

with the proposed conversion from the TFR to the Call Report for 

savings associations beginning on the March 31, 2012, report date.



II. Proposal To Require Savings Associations To File Call Report



A. Discussion of Comments

    The agencies collectively received comments from five savings 

associations and from two bank/thrift trade associations regarding the 

agencies' February 8, 2011 proposal to convert to the Call Report from 

the TFR. None of the commenters took exception to the general proposal 

to have savings associations currently regulated by the OTS begin 

reporting regulatory financial data using the Call Report instead of 

the TFR sometime after the transfer date of July 21, 2011. However, 

there were comments received on some specific aspects of the proposed 

report conversion. Below is a discussion of the more specific comments.

    The comments received from the individual savings associations all 

related to the proposal to eliminate the collection of data on Schedule 

Consolidated Maturity/Rate (Schedule CMR), and with it, the elimination 

of the OTS Interest Rate Risk Model (OTS IRR Model). One savings 

association supported Schedule CMR elimination noting that it used an 

internal model to monitor interest rate risk and it was a burden to 

reconcile the results of its own model to that of the OTS IRR Model. 

Four savings associations commented that they supported continuation of 

Schedule CMR since they relied on the OTS IRR Model to help monitor 

interest rate risk.

    In making the final determination about Schedule CMR and the OTS 

IRR Model, the agencies carefully considered these comments as well as 

comments received by the OTS in response to its 2007 Advance Notice of 

Proposed Rulemaking (72 FR 64003, November 14, 2007) \1\ regarding a 

possible conversion to the Call Report. The majority of comments 

received by the OTS in response to the 2007 proposal supported 

elimination of the



[[Page 39985]]



IRR Model and collection of Schedule CMR. The reasons cited by savings 

associations supporting the elimination of Schedule CMR were based on 

the burden of generating the data necessary to complete that schedule 

and the fact that they had adopted other models to help measure and 

monitor interest rate risk.

---------------------------------------------------------------------------



    \1\ Link to November 14, 2007 proposal published at 72 FR 64003: 

http://www.ots.treas.gov/_files/commenttopics/8f697712-0718-411f-a004-470f790edf80.pdf.

---------------------------------------------------------------------------



    The agencies also considered that existing rules, regulations, and 

overall supervisory approaches for savings associations will be 

realigned to parallel those applied to all other FDIC-insured 

institutions. Specifically with regard to monitoring interest rate 

risk, savings associations will be expected to have their own resources 

to measure and monitor interest rate risk. This measurement should 

address earnings at risk as well as capital at risk to interest rate 

movements, as described in the agencies' 2010 Advisory on Interest Rate 

Risk Management (Interagency Advisory). The Web links for the general 

interest rate risk management policies and guidelines of the agencies 

(other than the OTS) are as follows:



http://www.ffiec.gov/press/pr042398.htm

http://www.fdic.gov/news/news/press/2010/pr1002.pdf

http://www.fdic.gov/regulations/laws/rules/5000-4200.html

http://www.fdic.gov/regulations/safety/manual/section7-1_toc.html

http://www.federalreserve.gov/boarddocs/SRLETTERS/1996/sr9613.htm

http://www.federalreserve.gov/BoardDocs/SupManual/trading/200901/3000p2.pdf

http://www.occ.gov/news-issuances/bulletins/2010/bulletin-2010-1a.pdf

http://www.occ.gov/news-issuances/bulletins/1998/bulletin-1998-20.html

http://www.occ.gov/static/publications/handbook/irr.pdf



The OTS IRR Model does not provide measurement of both earnings at risk 

and capital at risk to interest rate movements, so extending reporting 

of Schedule CMR would not facilitate savings associations' movement 

toward full compliance with the Interagency Advisory. Numerous vendors 

and other sources are available to assist institutions in establishing 

processes to fully measure interest rate risk exposure, as evidenced by 

existing commercial and state-chartered savings banks of all asset 

sizes that effectively measure and monitor interest rate risk 

independently of, but subject to supervisory oversight by, their 

regulator. After considering all the issues, the agencies have decided 

to proceed with the elimination of Schedule CMR as proposed beginning 

with the March 31, 2012 reporting period.

    The February 8, 2011 notice also proposed that the filing of 

Schedule CMR for the remainder of 2011 would be optional for savings 

associations that have a ``1'' or ``2'' rating for their most recent 

composite rating under the Uniform Financial Institutions Rating System 

(UFIRS), a ``1'' or ``2'' rating for their most recent UFIRS 

Sensitivity component rating, and the means to adequately monitor and 

assess interest rate risk through internal processes pursuant to 

current regulatory guidance and expectations.

    The agencies decided to modify the proposed 2011 optional filing of 

Schedule CMR for these savings associations. Rather than making the 

filing of Schedule CMR optional for savings associations that have a 

``1'' or ``2'' rating for their most recent UFIRS composite rating, a 

``1'' or ``2'' rating for their most recent UFIRS Sensitivity component 

rating, and the means to adequately monitor and assess interest rate 

risk through internal processes, savings associations that meet these 

criteria should not file Schedule CMR after the end of the June 30, 

2011 reporting period. All other savings associations must continue to 

file Schedule CMR through the December 31, 2011 reporting period.

    Additional comments were received from two bank/thrift trade 

associations. Both of the trade associations requested a one-year 

extension for the conversion of the TFR to the Call Report from the 

proposed implementation date of the reporting period ending March 31, 

2012, to an implementation date of the reporting period ending March 

31, 2013. The trade associations cited various burden concerns as a 

general basis for the one-year extension request.

    The agencies met with representatives from the two trade 

associations on May 11, 2011, to discuss in more detail their comments 

regarding the report conversion proposal. Both trade associations 

reiterated the concerns expressed in their comment letters. In the 

comment letters and during the May 11, 2011, meeting, both trade 

associations mentioned the coinciding burden associated with the 

Board's notice of intent to require SLHCs to begin filing the same 

regulatory reports required of BHCs. The Board is considering the 

comments received on its notice of intent and plans to issue a proposal 

for comment regarding SLHC reporting on or after the July 21, 2011, 

transfer date.

    The agencies carefully considered the trade associations' comments 

regarding the TFR-to-Call Report conversion proposal. The agencies 

realize the report conversion is a key consideration of the thrift 

industry and have already taken several measures to help address these 

concerns and ease the conversion from the TFR to the Call Report.

    One of the most significant measures to assist with the report 

conversion process is the transfer of the entire OTS Financial 

Reporting Division (FRD) staff to the FDIC effective with the transfer 

date. The FRD staff currently responds to savings association TFR 

questions and is the primary contact for savings associations with 

questions regarding TFR content issues as well as technical filing 

issues. The FRD staff currently has caseloads of savings associations 

and the transfer of FRD staff as a unit will help provide savings 

associations with consistency by having the same points of contact 

throughout the report conversion process. Experienced Call Report staff 

will also be readily available to assist institutions with report 

content and filing issues throughout the transition and on an ongoing 

basis.

    In addition, on February 3, 2011, the OTS announced it would 

curtail all proposed changes to the TFR for 2011 that would increase 

the differences between the TFR and the Call Report (Final Notice 76 FR 

6191).\2\ This decision was made to help reduce the burden of the 

proposed report conversion.

---------------------------------------------------------------------------



    \2\ Link to the February 3, 2011, Final Notice published at 76 

FR 6191: http://www.ots.treas.gov/_files/4830087.pdf.

---------------------------------------------------------------------------



    Also to help savings associations with the conversion to the Call 

Report, the OTS published on February 15, 2011,\3\ a ``mapping'' of 

data items reported on the TFR to comparable items reported on the Call 

Report. The mapping further identified the Call Report data items that 

are not reported in the TFR. The mapping schema is available on the 

OTS's Web site at http://www.ots.treas.gov/_files/4830092.pdf. The 

mapping schema was also placed on the FFIEC's Web site under Call 

Report Forms at http://www.ffiec.gov/ffiec_report_forms.htm.

---------------------------------------------------------------------------



    \3\ Link to CEO Letter 379: http://www.ots.treas.gov/_files/25379.pdf.

---------------------------------------------------------------------------



    The two trade associations expressed appreciation for the mapping 

between the reports mentioned above. They also commented that there 

were a large number of data items that did not map between the two 

reports. The trade associations observed the large number was primarily 

attributable to the greater number of data items currently collected on 

the Call Report compared to the number of data items collected on the



[[Page 39986]]



TFR. Further, the trade associations indicated the large number of data 

items that do not map between the reports may be evidence that the 

proposed report conversion could prove difficult for savings 

associations.

    The agencies believe the number of data items that do not map 

between the two reports reflects: (1) a larger number of data items 

reported on the Call Report than on the TFR; and (2) the greater number 

of large, complex institutions reporting information using the Call 

Report rather than the TFR.

    As of March 31, 2011, there were 7,574 FDIC-insured banks and 

savings institutions--724 were savings associations reporting data to 

the OTS using the TFR and the remainder (6,850) were FDIC-insured 

commercial banks and state-chartered savings banks reporting data to 

their respective regulatory agency using the Call Report. Of the 724 

savings associations, four had assets greater than $50 billion, and 

none had assets greater than $100 billion. Of the 6,850 institutions, 

32 had assets greater than $50 billion, and four had assets greater 

than $100 billion.

    The fact that the thrift industry (TFR filers) is generally smaller 

and has fewer large, complex institutions than the other banks and 

savings institutions insured by the FDIC as a group (Call Report 

filers), has allowed the OTS to obtain needed supervisory information 

from individual savings associations rather than add data items to the 

TFR. This was especially the case where information was needed for 

activities unique to certain larger, more complex thrift institutions.

    In contrast, obtaining similar information for supervisory purposes 

through the Call Report was more efficient for Call Report filers since 

there was likely a greater number of institutions engaged in complex 

activities. This was due to the fact there are approximately nine times 

the number of Call Report filers as there are TFR filers. In addition, 

there are a greater number of large institutions filing the Call 

Report.

    The inclusion in the Call Report of schedules from which to obtain 

information from complex activities, for example securitization 

activities, as opposed to the collection of similar information outside 

the TFR collection process for savings associations, resulted in a 

large number of items that did not map from the Call Report to the TFR. 

Call Report items designed to collect information from institutions 

engaged in complex activities would not need to be reported for the 

vast majority of savings associations.

    Further, the Call Report uses an asset size-based approach to some 

schedules whereby institutions exceeding a certain asset size are 

required to report additional data. The asset size thresholds in many 

Call Report schedules are either $300 million or $1 billion. As of 

March 31, 2011, 64 percent of savings associations had assets less than 

$300 million; 86 percent of savings associations had assets less than 

$1 billion. Hence, the additional reporting required of larger 

institutions in many Call Report schedules would not apply to the 

majority of savings associations.

    For these reasons, the agencies believe focusing on the number of 

Call Report data items that do not map to the TFR may lead to the 

inaccurate conclusion that the proposed conversion to the Call Report 

from the TFR would impose significant additional burden on all savings 

associations.

    The two trade associations also commented that the burden 

estimates, specifically the estimates under the heading ``Initial 

Burden Estimates,'' in the February 8, 2011 notice announcing the 

proposed reporting conversion, underestimate the actual number of hours 

that may be required for the conversion.

    The initial burden estimates in the February 8, 2011 notice were 

based on a telephone survey conducted by the OTS of certain savings 

associations that changed charters from an OTS-supervised institution 

to a commercial bank or a non-OTS supervised state savings bank during 

the period from January 1, 2008, through June 30, 2010. Hence, these 

institutions had to convert from reporting on the TFR to reporting on 

the Call Report. Their actual experience implementing a report 

conversion from the TFR to the Call Report was thought to be valuable 

information for estimating the initial burden for this proposal.

    A total of 22 OTS-supervised savings associations changed charters 

during the period reviewed. Six of the 22 savings associations changed 

charters to facilitate an acquisition or merger into another 

institution. Two of the 22 savings associations engaged in trust 

activities only. Of the remaining 14 savings associations, nine were 

contacted by the OTS and asked for their estimate of the total hours 

expended--including systems work and training for the new reporting--in 

converting from the TFR to the Call Report.

    The estimates included two extremes. One institution estimated zero 

hours were expended on the report conversion. This institution 

indicated they used a service provider for general ledger and other 

reporting purposes that had both TFR filers and Call Report filers as 

clients. Hence, the conversion to the Call Report was very simple and 

required zero hours by the institution to implement the report 

conversion.

    At the other extreme was one institution's estimate of 720 hours 

(600 hours for the TFR-to-Call Report conversion and 120 hours for the 

TFR Schedule HC-to-bank holding company conversion). However, this 

institution experienced significant growth through acquisitions in the 

two years prior to its charter change. Hence, some of the hours 

estimated for report conversion may have been attributable to systems 

coordination among acquired entities. Nevertheless, this institution's 

estimate was included in the calculation of the average number of hours 

used to estimate the initial burden of report conversion.\4\

---------------------------------------------------------------------------



    \4\ Excluding the two extremes, the range of hours was 40 hours 

to 360 hours. If both the high-end and low-end extremes were 

excluded, the average number of estimated burden hours would be 130 

hours.

---------------------------------------------------------------------------



    It is typical in calculating averages to exclude extremes from the 

low end and the high end. For conservatism, only the estimate of zero 

hours was excluded in calculating the average number of estimated hours 

for initial burden published in the February 8, 2011 notice. Further, 

some institutions could not specifically differentiate between the 

hours spent on the TFR-to-Call Report conversion and the hours spent on 

the holding company report conversion. These institutions either did 

not separately track hours for each process or viewed the conversion 

for both reports as one effort. Again for conservatism, we elected to 

include total hours estimated from institutions (hours related to the 

TFR-to-Call Report conversion plus hours related to the holding company 

report conversion) for estimating the initial burden hours included in 

the February 8, 2011 notice.

    As presented in the notice published February 8, 2011, the average 

number of hours estimated for converting from the TFR to the Call 

Report was 188 hours. The agencies believe this is a fair estimate of 

the initial burden of the proposal.

    The trade associations also commented that the conversion from the 

TFR to the Call Report, as proposed, would be burdensome on the systems 

of savings associations and that vendors of software for generating and 

reporting Call Reports may have difficulty helping savings associations 

with the report conversion. It was further stated by one of the 

commenters that ``each savings



[[Page 39987]]



association would have to evaluate each reporting line item, find where 

in their institution the information may be obtained, and create 

systems and procedures to provide the required information.''

    The agencies carefully reviewed the service providers currently 

used by savings associations to help manage information and operation 

systems. The FDIC also surveyed several Call Report software filing 

vendors to help determine the overall difficulty of the proposed 

conversion from a vendor perspective.

    As stated in the February 8, 2011 notice, there are currently nine 

vendors offering software meeting the technical specifications for 

producing Call Report data files that are able to be processed by the 

FFIEC's Central Data Repository (CDR).\5\ Based on an analysis by the 

OTS, approximately 60 percent of savings associations use one of the 

nine vendors to generate their general ledgers. Another 20 percent of 

savings associations use one of the nine vendors as their service 

provider for a system other than their general ledger, such as systems 

for customer information files, loan processing and underwriting, loan 

servicing, or asset/liability management.

---------------------------------------------------------------------------



    \5\ The list of these nine vendors can be found on the last page 

of the FFIEC's most recent quarterly Call Report Supplemental 

Instructions found at http://www.ffiec.gov/ffiec_report_forms.htm. 

In addition, individual institutions may choose to develop their own 

Call Report preparation software that meets these technical 

specifications.

---------------------------------------------------------------------------



    Based on a survey of Call Report software vendors, these vendors 

already have a mapping of data items between the Call Report and the 

TFR. Hence, it does not appear that individual savings associations 

would generally need to conduct their own systems mapping of TFR data 

items to comparable Call Report items for filing the Call Report. The 

agencies believe this survey finding, together with the large 

percentage of savings associations already using the services of 

vendors familiar with both the TFR and the Call Report, would appear to 

help mitigate the overall difficulty of the proposed conversion.

    One of the trade associations commented there will be costs 

associated with the report conversion and these costs may rise 

dramatically if the conversion implementation occurs as proposed. The 

agencies agree there will be costs associated with the report 

conversion. The OTS developed TFR reporting software and provided that 

software free-of-charge to savings associations to file the TFR. In 

contrast, Call Report filers typically use commercially available 

software to file the Call Report.

    However, the agencies do not agree the costs may rise dramatically 

if the conversion implementation occurs as proposed. Inquiries were 

made of vendors regarding the costs of reporting software, both initial 

costs and ongoing costs, as part of the survey of Call Report software 

vendors discussed above. The survey results indicated the costs of the 

Call Report filing software are not significant and average 

approximately $1,000 for the initial set-up and $1,000 per year 

depending on institution asset size.\6\ Further, vendors indicated that 

the method used to obtain the filing software is simple and 

straightforward. Moreover, since most savings associations already use 

some services from vendors that also provide Call Report filing 

software, the efforts needed by vendors to provide Call Report filing 

software to the majority of savings associations is limited.

---------------------------------------------------------------------------



    \6\ These costs may vary depending on asset size as indicated, 

as well as modules, options, or additional services requested.

---------------------------------------------------------------------------



    The agencies carefully considered all of the burden issues raised 

by the two trade associations as reasons for requesting a one-year 

delay of the report conversion implementation. Based on the agencies' 

analyses of burden issues and surveys or discussions with service 

providers and savings association executives, the agencies have decided 

to proceed with the conversion of the TFR to the Call Report beginning 

with the reporting period ending March 31, 2012, as proposed.

    The agencies also considered that existing rules, regulations, and 

overall examination and supervisory approaches for savings associations 

will be realigned to parallel those applied to all other FDIC-insured 

banks and savings institutions. Many of these rules, regulations, and 

examination and supervisory approaches rely on information gathered 

from the Call Report. Moreover, the primary models, monitoring tools 

and data reports used in conducting off-site financial monitoring and 

onsite examinations--such as the Uniform Bank Performance Report 

(UBPR)--are produced from Call Report data. Hence, to help ensure that 

overall supervision and supervisory evaluations are consistent among 

all FDIC-insured banks and savings institutions, the agencies believe 

it is vital to have all FDIC-insured banks and savings institutions use 

the same supervisory financial report and filing processes beginning in 

2012.

    There were several other comments submitted by the two trade 

associations. Both trade associations requested the agencies allow 

early adoption of the Call Report by savings associations. The agencies 

considered this request and have agreed to allow savings associations 

to adopt the Call Report early for report dates following the transfer 

date of July 21, 2011.\7\ The agencies request that savings 

associations planning to file a Call Report in 2011 for the last two 

reporting periods, or the last reporting period, should notify their 

primary federal regulator (and state regulator where applicable) and 

the FRD analyst assigned to their institution at least two weeks before 

the Call Report due date which is 30 calendar days after the quarter-

end report date. This will allow for the necessary systems adjustments 

to the CDR for Call Report collection and processing. Once a savings 

association has elected to adopt the Call Report early in 2011, it must 

continue to file the Call Report for the remainder of the early 

adoption period, and such Call Reports will be subject to all 

applicable data standards and requirements.

---------------------------------------------------------------------------



    \7\ Savings associations that adopt the Call Report early in 

2011 should not file TFR Schedule CMR unless required to do so by 

their primary regulator. In most cases, the filing of Schedule CMR 

for savings associations that early adopt the Call Report would be 

required if the institution does not yet have the means to 

adequately measure and monitor interest rate risk. Additionally, 

savings associations that adopt the Call Report early in 2011, would 

still need to submit all other existing OTS regulatory reports and 

would be required by the Board to file TFR Schedule HC through the 

December 31, 2011 reporting period. As mentioned above in this 

notice, the Board is considering the comments received on its notice 

of intent and plans to issue a proposal for comment regarding SLHC 

reporting on or after the July 21, 2011, transfer date.

---------------------------------------------------------------------------



    One trade association requested the agencies consider allowing 

institutions to file Call Reports based on their fiscal years rather 

than the requirement to file on a calendar year basis as currently 

required. According to data collected in the Call Report on 

institutions' fiscal years, there are about 200 current Call Report 

filers with fiscal years that do not align with the calendar year. The 

agencies know of no institutions--including those with fiscal years 

that do not align with the calendar year--for which filing the Call 

Report using the calendar year presents filing problems. Therefore, all 

institutions will be requested to file the Call Report on a calendar 

year basis.

    The agencies encourage feedback regarding their progress with the 

report conversion process. Savings associations should feel free to 

contact their FRD analyst, supervisory caseload manager, regional 

director, or contacts listed on this notice about report conversion 

issues.



[[Page 39988]]



    Further, the agencies will continue to meet with savings 

association managers through various venues. During these meetings, 

managers are encouraged to discuss issues related to the implementation 

of the report conversion.

B. Report Preparation Training

    Converting to the Call Report may require OTS-regulated savings 

associations to obtain specific training for their staff concerning the 

preparation and completion of the Call Report. Such training is offered 

on a regular basis by independent trade and professional organizations.

    As stated above, the agencies have provided a ``mapping'' of TFR 

items to Call Report items to help reduce the initial burden of report 

conversion. As also stated in the February 8, 2011 notice, there are 

some differences between the Call Report and TFR, examples of which are 

described below. Given these and other reporting differences, savings 

associations are encouraged to familiarize themselves with the Call 

Report instructions and to seek training opportunities for report 

preparation staff as soon as possible. Web links to the Call Report 

forms and instructions are provided above in this notice.

    Some reporting differences between the TFR and the Call Report 

include the following:

    1. In the TFR, data are reported for the quarter ending on the 

report date in Schedule SO--Consolidated Statement of Operations, the 

Summary of Changes in Savings Association Equity Capital in Schedule 

SI--Supplemental Information, Schedule VA--Consolidated Valuation 

Allowances and Related Data, and Schedule CF--Consolidated Cash Flow 

Information. In the comparable schedules of the Call Report, data are 

reported on a calendar year-to-date basis, regardless of an 

institution's fiscal year-end.

    2. Previously submitted TFRs can be amended only for 135 days after 

the end of the quarter for which an amended report is being filed 

electronically. In general, amendments to previously submitted Call 

Reports can be filed for up to five years after the report date, 

including amendments required by an institution's primary federal bank 

supervisory authority when a report as previously submitted contains 

significant errors with respect to the categorization of data items or 

material errors with respect to the recognition and measurement of an 

event or transaction.

    3. In the Average Balance Sheet Data section of TFR Schedule SI--

Supplemental Information, savings associations report average balance 

sheet data for the quarter that, at a minimum, must be computed based 

on balances at month-end. However, savings associations may choose to 

compute these data based on other than month-end balances, such as 

daily or weekly balances. In Call Report Schedule RC-K--Quarterly 

Averages, institutions must report averages on a daily or weekly basis 

only.

    4. Savings associations can report specific valuation allowances in 

TFR Schedule VA-Consolidated Valuation Allowances and Related Data. 

Comparable reporting is not available in the Call Report. For example, 

for Call Report purposes, institutions take and report charge-offs on 

individual loans rather than creating specific valuation allowances.



The agencies are also participating in various conferences and tele-

briefings to help assist savings associations with the transition to 

the Call Report. The members of the FFIEC's Task Force on Reports are 

also available to answer questions that savings associations have on 

the Call Report. Additionally, questions regarding the Call Report can 

be directed to the sources listed at the bottom of the following 

Financial Institution Letter: http://www.fdic.gov/news/news/financial/2011/fil11019.html.

C. Timing

    Savings associations currently regulated by the OTS would begin 

filing the Call Report as of the March 31, 2012, report date. Savings 

associations are permitted to convert early to the Call Report for 

report dates following the transfer date of July 21, 2011, as described 

above in this notice. However, as described above in this notice, 

savings associations that early adopt the Call Report would still need 

to submit Schedule HC of the TFR along with all other existing OTS 

regulatory reports through the December 31, 2011, reporting period. The 

agencies request that savings associations planning to begin filing the 

Call Report in 2011 notify their primary federal regulator (and state 

regulator where applicable) and the FRD analyst assigned to their 

institution at least two weeks before the Call Report due date, which 

is 30 calendar days after the quarter-end report date. Savings 

associations would file the same Call Report required of commercial 

banks and state-chartered savings banks not currently regulated by the 

OTS. Web links to the Call Report forms and instructions are provided 

above in this notice.

    Savings associations that do not convert to the Call Report prior 

to the March 31, 2012, report date will continue to submit TFRs, 

including Schedules HC and CMR (unless an institution meets the 

requirements discussed above in this notice to discontinue reporting 

Schedule CMR after the end of the June 30, 2011 reporting period), and 

all other existing OTS regulatory reports through the December 31, 

2011, reporting period, using the processing, editing, and validating 

system currently in use, which is the Electronic Filing System 

established by the OTS.

D. Filing Process

    OTS-regulated savings associations use OTS-developed proprietary 

software to file TFRs. Call Reports for other FDIC-insured institutions 

are filed one of two ways, both using institution-acquired software. 

These two filing processes are described below:

    1. An institution may use computer software to prepare its report 

and then submit the report directly to the CDR, an Internet-based 

system for data collection at https://cdr.ffiec.gov/CDR/; or

    2. The institution may complete its reports in paper form and 

arrange with a software vendor or another party to convert its paper 

reports into an electronic format that can be processed by the CDR. The 

software vendor or another party then must electronically submit the 

data file containing the bank's Call Report to the CDR.

    A list of providers offering software meeting the technical 

specifications for producing Call Report data files that are able to be 

processed by the CDR can be found on the last page of the FFIEC's most 

recent quarterly Call Report Supplemental Instructions found at http://www.ffiec.gov/ffiec_report_forms.htm. In addition, individual 

institutions may choose to develop their own Call Report preparation 

software that meets these technical specifications. The agencies will 

provide specific information on the requirements to those institutions 

interested in pursuing this option.

    In summary, after considering the comments received on the 

proposal, the agencies plan to proceed with the reporting changes 

proposed and will submit the proposal to OMB for review and approval.



Request for Comment



    Public comment is requested on all aspects of this joint notice. 

Comments are invited on:

    (a) Whether the proposed revisions to the collections of 

information that are the subject of this notice are necessary



[[Page 39989]]



for the proper performance of the agencies' functions, including 

whether the information has practical utility;

    (b) The accuracy of the agencies' estimates of the burden of the 

information collections as they are proposed to be revised, including 

the validity of the methodology and assumptions used;

    (c) Ways to enhance the quality, utility, and clarity of the 

information to be collected;

    (d) Ways to minimize the burden of information collections on 

respondents, including through the use of automated collection 

techniques or other forms of information technology; and

    (e) Estimates of capital or start up costs and costs of operation, 

maintenance, and purchase of services to provide information.

    Comments submitted in response to this joint notice will be shared 

among the agencies. All comments will become a matter of public record.



    Dated: June 29, 2011.

Michele Meyer,

Assistant Director, Legislative and Regulatory Activities Division, 

Office of the Comptroller of the Currency.

    Board of Governors of the Federal Reserve System, dated: June 

30, 2011.

Jennifer J. Johnson,

Secretary of the Board.

    Dated at Washington, DC, this 1st day of July 2011.



Federal Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.

    Dated: July 1, 2011.

Ira L. Mills,

Paperwork Clearance Officer, Office of Chief Counsel, Office of Thrift 

Supervision.

[FR Doc. 2011-17100 Filed 7-6-11; 8:45 am]

BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P; 6720-01-P