[Federal Register Volume 77, Number 33 (Friday, February 17, 2012)]
[Notices]
[Pages 9727-9731]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-3735]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Agency Information Collection Activities: Submission for OMB 
Review; Joint Comment Request

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

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, and the 
FDIC (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 Management and Budget (OMB) 
control number. On November 21, 2011, the agencies, under the auspices 
of the Federal Financial Institutions Examination Council (FFIEC), 
requested public comment for 60 days on a proposal to extend, with 
revision, the Consolidated Reports of Condition and Income (Call 
Report), which are currently approved collections of information. After 
considering the comments received on

[[Page 9728]]

the proposal, the FFIEC and the agencies will proceed with the 
reporting changes and instructional revisions that had been proposed to 
take effect March 31, 2012. The FFIEC and the agencies will also 
implement the two less detailed Call Report revisions that had been 
proposed for implementation as of June 30, 2012. As for the two new 
schedules that also had been proposed to be added to the Call Report 
beginning June 30, 2012,\1\ the FFIEC and the agencies are continuing 
to evaluate these proposed schedules in light of the comments received. 
The FFIEC's and the agencies' decisions regarding these two proposed 
schedules will be the subject of a separate Federal Register notice and 
any resulting new reporting requirements will not take effect before 
the September 30, 2012, report date.
---------------------------------------------------------------------------

    \1\ Schedule RI-C, Disaggregated Data on the Allowance for Loan 
and Lease Losses, and Schedule RC-U, Loan Origination Activity (in 
Domestic Offices).

---------------------------------------------------------------------------
DATES: Comments must be submitted on or before March 19, 2012.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies on the revisions to the Call Report for 
March 31, 2012, and June 30, 2012, for which the agencies are 
requesting approval from OMB. All comments, which should refer to the 
OMB control number(s), will be shared among the agencies.
    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]. 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 at: http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [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 
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.
     Email: [email protected]. Include ``Consolidated Reports 
of Condition and Income, 3064-0052'' in the subject line of the 
message.
     Mail: Gary A. Kuiper, Counsel, Attn: Comments, Room F-
1086, 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.
    Additionally, commenters may send a copy of their comments to the 
OMB desk officer for the agencies, Shagufta Ahmed, 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.

 INFORMATION CONTACT: For further information about the revisions 
discussed in this notice, please contact any of the agency clearance 
officers whose names appear below. In addition, copies of the Call 
Report forms and instructions can be obtained at the FFIEC's Web site 
(http://www.ffiec.gov/ffiec_report_forms.htm).
    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, 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.

SUPPLEMENTARY INFORMATION: The agencies are proposing to revise and 
extend for three years the Call Report, which is currently an approved 
collection of information for each agency.
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: Call report: FFIEC 031 (for banks and savings 
associations with domestic and foreign offices) and FFIEC 041 (for 
banks and savings associations with domestic offices only).
    Frequency of Response: Quarterly.
    Affected Public: Insured banks and savings associations.

OCC

    OMB Number 1557-0081.
    Estimated Number of Respondents: 2,035 (1,399 national banks and 
636 Federal savings associations).
    Estimated Time per Response: National banks: 53.49 burden hours per 
quarter to file. Federal savings associations: 53.90 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: 299,350 burden hours 
to file. Federal savings associations: 137,120 burden hours to file 
plus 119,568 burden hours for the first year to convert systems and 
conduct training. Total: 556,038 burden hours.

Board

    OMB Number: 7100-0036.
    Estimated Number of Respondents: 827 state member banks.

[[Page 9729]]

    Estimated Time per Response: 55.52 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 183,660 burden hours.

FDIC

    OMB Number: 3064-0052.
    Estimated Number of Respondents: 4,630 (4,570 insured state 
nonmember banks and 60 state savings associations).
    Estimated Time per Response: State nonmember banks: 40.49 burden 
hours per quarter to file. State savings associations: 40.69 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: 740,157 
burden hours to file. State savings associations: 9,766 burden hours to 
file plus 11,280 burden hours for the first year to convert systems and 
conduct training.
    Total: 761,203 burden hours.
    The estimated time per response for the quarterly filings of 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 filing of the Call Report (excluding the 
estimated burden for the two new schedules that had been proposed for 
implementation in June 2012 but are not part of this submission to OMB 
because the FFIEC and the agencies are continuing to evaluate these 
proposed schedules) is estimated to range from 17 to 700 hours per 
quarter, depending on an individual institution's circumstances.\2\
---------------------------------------------------------------------------

    \2\ This estimate does not include the burden associated with 
the implementation of proposed Schedules RI-C and RC-U.
---------------------------------------------------------------------------

    As approved by OMB, savings associations will convert from filing 
the Thrift Financial Report (TFR) (formerly OMB Number: 1550-0023) to 
filing the Call Report effective as of the March 31, 2012, report date 
(unless an institution elects to begin filing the Call Report before 
that report date).\3\ Thus, savings associations will incur an initial 
burden of converting systems and training staff to prepare and file the 
Call Report in place of the TFR. Accordingly, the burden estimates 
above in this notice for savings associations also include the time to 
convert to filing the Call Report, including implementing the necessary 
systems changes and training staff on Call Report preparation and 
filing, which is estimated to average 188 hours per savings 
association.
---------------------------------------------------------------------------

    \3\ See 76 FR 39981, July 7, 2011, at http://www.ffiec.gov/pdf/FFIEC_forms/FFIEC031_FFIEC041_20110707_ffr.pdf and the Office of 
Thrift Supervision's CEO Letter 391 dated July 7, 2011, at 
http://www.ots.treas.gov/_files/25391.pdf.
---------------------------------------------------------------------------

    In general, larger savings associations and those with more complex 
operations would likely expend a greater number of hours, on average, 
than smaller savings associations and those with less complex 
operations. A savings association'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. Savings associations 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. 
For further information about the estimated initial burden hours for 
savings associations' conversion to the Call Report from the TFR, see 
76 FR 39986, July 7, 2011.
    Type of Review: Revision and extension of currently approved 
collections.

General Description of Reports

    These information collections are mandatory: 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 Federal and state savings associations). At present, 
except for selected data items, these information collections are not 
given confidential treatment.

Abstract

    Institutions submit Call Report data to the agencies each quarter 
for the agencies' use in monitoring the condition, performance, and 
risk profile of individual institutions and the industry as a whole. 
Call Report 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 
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 data 
are also used to calculate institutions' deposit insurance and 
Financing Corporation assessments and national banks' and Federal 
savings associations' semiannual assessment fees.

Current Actions

    On November 21, 2011, the agencies requested comment on a limited 
number of proposed revisions to the Call Report (76 FR 72035) for 
implementation in 2012 that are focused primarily on institutions with 
$1 billion or more in total assets. The new data items were proposed to 
be added to the Call Report as of the June 30, 2012, report date, 
except for two proposed revisions that would take effect March 31, 
2012, in connection with the initial filing of Call Reports by savings 
associations. These proposed new data items are intended to provide 
data needed for reasons of safety and soundness or other public 
purposes and would assist the agencies in gaining a better 
understanding of institutions' lending activities and credit risk 
exposures. The agencies also proposed certain revisions to the Call 
Report instructions that would take effect March 31, 2012.
    The Call Report changes in the agencies' November 2011 proposal, 
the first four of which were proposed for implementation in June 2012 
and the final three of which were proposed for implementation in March 
2012, included:
     A new Schedule RI-C, Disaggregated Data on the Allowance 
for Loan and Lease Losses, in which institutions with total assets of 
$1 billion or more would report a breakdown by key loan category of the 
end-of-period allowance for loan and lease losses (ALLL) disaggregated 
on the basis of impairment method and the end-of-period recorded 
investment in held-for-investment loans and leases related to each ALLL 
balance;
     A new Schedule RC-U, Loan Origination Activity (in 
Domestic Offices), in which institutions with total assets of $300 
million or more would report, separately for several loan categories, 
the quarter-end amount of loans (in domestic offices) reported in 
Schedule RC-C, Loans and Lease Financing Receivables, that was 
originated during the quarter, and institutions with total assets of $1 
billion or more would also report for these loan categories the 
portions of the quarter-end amount of loans originated during the 
quarter that were (a) originated under a newly established loan 
commitment and (b) not originated under a loan commitment;
     New Memorandum items in Schedule RC-N, Past Due and 
Nonaccrual Loans, Leases, and Other Assets, for the total outstanding 
balance and related carrying amount of purchased credit-impaired loans 
accounted for under Accounting

[[Page 9730]]

Standards Codification (ASC) Subtopic 310-30 that are past due 30 
through 89 days and still accruing, past due 90 days or more and still 
accruing, and in nonaccrual status;
     New items in Schedule RC-P, 1-4 Family Residential 
Mortgage Banking Activities, in which institutions with $1 billion or 
more in total assets and smaller institutions with significant mortgage 
banking activities would report the amount of representation and 
warranty reserves for 1-4 family residential mortgage loans sold (in 
domestic offices), with separate disclosure of reserves for 
representations and warranties made to U.S. government and government-
sponsored agencies and to other parties;
     New items in Schedule RC-M, Memoranda, in which savings 
associations and certain state savings and cooperative banks would 
report on the test they use to determine their compliance with the 
Qualified Thrift Lender requirement and whether they have remained in 
compliance with this requirement.
     Revisions to two existing items in Schedule RC-R, 
Regulatory Capital, used in the calculation of the leverage ratio 
denominator to accommodate certain differences between the regulatory 
capital standards that apply to the leverage capital ratios of banks 
versus savings associations.
     Instructional revisions addressing the discontinued use of 
specific valuation allowances by savings associations when they begin 
to file the Call Report instead of the TFR beginning in March 2012; the 
reporting of the number of deposit accounts of $250,000 or less in 
Schedule RC-O, Other Data for Deposit Insurance and FICO Assessments, 
by institutions that have issued certain brokered deposits; and the 
accounting and reporting treatment for capital contributions in the 
form of cash or notes receivable.
    Further details concerning the preceding proposed Call Report 
changes may be found in Sections II.A through II.G of the agencies' 
November 2011 Federal Register notice.\4\
---------------------------------------------------------------------------

    \4\ See 76 FR 72038-72045, November 21, 2011.
---------------------------------------------------------------------------

    The agencies collectively received comments on their November 2011 
Federal Register notice from eight entities: four banking 
organizations, two bankers' associations, a commercial lending software 
company, and a news organization. One bankers' association offered the 
general statement that its ``members expressed no concerns with many of 
the agencies' proposed revisions.'' None of the commenters specifically 
addressed the reporting changes proposed for implementation as of March 
31, 2012. All eight of the commenters addressed one or both of the two 
new schedules proposed to be added to the Call Report as of June 30, 
2012: Schedule RI-C, Disaggregated Data on the Allowance for Loan and 
Lease Losses, and Schedule RC-U, Loan Origination Activity (in Domestic 
Offices). One bankers' association expressed support for the proposed 
new items for past due and nonaccrual purchased credit-impaired loans, 
which were also proposed to be added to the Call Report as of June 30, 
2012, and recommended ``that the agencies adopt these proposed 
revisions without change.'' The news organization supported the 
proposed collection of data on representation and warranty reserves for 
1-4 family residential mortgage loans beginning June 30, 2012. The 
agencies concur with this commenter's suggestion that the instructions 
for the new items for these reserves clarify that representations and 
warranties made to mortgage insurers of loans sold fall within the 
scope of these items.
    In addition, the news organization recommended that the agencies 
consider significantly revising the information they collect on 
mortgage banking activities in Schedule RC-P by adding further detail 
in certain areas and deleting certain existing items. These 
recommendations go well beyond the agencies' current proposal to add 
new items for representation and warranty reserves to Schedule RC-P. 
The FFIEC and the agencies will consider the news organization's ideas 
in conjunction with their evaluation of other possible Call Report 
revisions that would be included in a future proposal.
    After considering the comments the agencies received, the FFIEC and 
the agencies are proceeding with the revisions proposed for 
implementation as of the March 31, 2012, report date as well as the 
proposed new items for past due and nonaccrual purchased credit-
impaired loans and representation and warranty reserves for 1-4 family 
residential mortgages effective as of the June 30, 2012, report 
date.\5\ As for the new schedules for disaggregated ALLL data and 
selected loan origination data proposed for implementation as of June 
30, 2012, the FFIEC and the agencies are continuing to evaluate these 
two proposed schedules in light of the comments received. When the 
FFIEC and the agencies have decided whether and how to proceed with 
these proposed new schedules, a separate Federal Register notice will 
be published and, if applicable, submissions by the agencies will be 
made to OMB. Because of the additional time necessary for the FFIEC and 
the agencies to determine the outcome of proposed new Call Report 
Schedules RI-C and RC-U and to allow sufficient lead time for affected 
institutions to prepare for any resulting new reporting requirements, 
the collection of disaggregated ALLL data and selected loan origination 
data would not take effect before the September 30, 2012, report date.
---------------------------------------------------------------------------

    \5\ In December 2011, the agencies separately requested approval 
from OMB to add six new items of limited scope and applicability to 
Call Report Schedule RC-O, Other Data for Deposit Insurance and FICO 
Assessments that also would take effect June 30, 2012. These six new 
Call Report Schedule RC-O items are: (a) For large and highly 
complex institutions, Memorandum item 16, ``Portion of loans 
restructured in troubled debt restructurings that are in compliance 
with their modified terms and are guaranteed or insured by the U.S. 
government (including the FDIC)''; (b) For large and highly complex 
institutions that own another insured depository institution, 
Memorandum items 17.a through 17.d for the fully consolidated 
amounts of total deposit liabilities before exclusions, total 
allowable exclusions, unsecured other borrowings with a remaining 
maturity of one year or less, and estimated amount of uninsured 
deposits; and (c) For all institutions that own another insured 
depository institution, Memorandum item 9.a for the fully 
consolidated amount of reciprocal brokered deposits. See 76 FR 
77315, December 12, 2011.
---------------------------------------------------------------------------

    The list below summarizes each of the Call Report changes included 
in the agencies' November 2011 proposal along with its implementation 
status:
     Proposed new Schedule RI-C, Disaggregated Data on the 
Allowance for Loan and Lease Losses: Remains under review by the FFIEC 
and the agencies; not to be implemented before September 30, 2012;
     Proposed new Schedule RC-U, Loan Origination Activity (in 
Domestic Offices): Remains under review by the FFIEC and the agencies; 
not to be implemented before September 30, 2012;
     New Memorandum items in Schedule RC-N, Past Due and 
Nonaccrual Loans, Leases, and Other Assets: Implement June 30, 2012;
     New items in Schedule RC-P, 1-4 Family Residential 
Mortgage Banking Activities: Implement June 30, 2012;
     New items in Schedule RC-M, Memoranda: Implement March 31, 
2012;
     Revisions to two existing items in Schedule RC-R, 
Regulatory Capital: Implement March 31, 2012;
     Instructional revisions addressing the discontinuation of 
certain valuation allowances by savings associations; the reporting of 
certain deposit accounts in Schedule RC-O; and the accounting and 
reporting treatment for certain capital

[[Page 9731]]

contributions: Implement March 31, 2012.
    Consistent with longstanding practice, for the March 31, 2012, and 
June 30, 2012, report dates, as applicable, institutions may provide 
reasonable estimates for any new or revised Call Report item initially 
required to be reported as of that date for which the requested 
information is not readily available.

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 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: February 9, 2012.
Michele Meyer,
Assistant Director, Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency.

Board of Governors of the Federal Reserve System.
Robert deV. Frierson,
Deputy Secretary of the Board.
    Dated at Washington, DC, this 10th day of February 2012.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2012-3735 Filed 2-16-12; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P