[Federal Register Volume 77, Number 217 (Thursday, November 8, 2012)]
[Notices]
[Pages 67059-67062]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27283]


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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.

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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 the proposal, the FFIEC and the 
agencies announced their final decisions regarding certain proposed 
revisions on February 17, 2012. The agencies also announced they were 
continuing to evaluate two new proposed Call Report schedules (Schedule 
RI-C, Disaggregated Data on the Allowance for Loan and Lease Losses, 
and Schedule RC-U, Loan Origination Activity (in Domestic Offices)) in 
light of the comments received. The FFIEC and the agencies have 
completed their evaluation of Schedule RI-C and will proceed with a 
modified version of the schedule, which will be completed by 
institutions with $1 billion or more in total assets beginning March 
31, 2013. However, the FFIEC and the agencies are continuing their 
evaluation of proposed Schedule RC-U. The FFIEC's and the agencies' 
decision regarding proposed Schedule RC-U will be addressed in a future 
Federal Register notice, and any resulting new reporting requirements 
for loan origination data will not take effect before the June 30, 
2013, report date.

DATES: Comments must be submitted on or before December 10, 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 
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

[[Page 67060]]

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 9:00 
a.m. and 5:00 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 NYA-
5046, 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 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 
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. The burden estimates 
presented below are for the Call Report as it is proposed to be revised 
effective March 31, 2013.
    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: 1,909 national banks and federal 
savings associations.
    Estimated Time per Response: 53.76 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 410,511 burden hours to file.

Board

    OMB Number: 7100-0036.
    Estimated Number of Respondents: 835 state member banks.
    Estimated Time per Response: 55.66 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 185,904 burden hours to file.

FDIC

    OMB Number: 3064-0052.
    Estimated Number of Respondents: 4,531 insured state nonmember 
banks and state savings associations.
    Estimated Time per Response: 40.56 burden hours per quarter to 
file.
    Estimated Total Annual Burden: 735,109 burden hours to file.
    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 is estimated to 
range from 17 to 710 hours per quarter, depending on an individual 
institution's circumstances.
    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.

[[Page 67061]]

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, identifying areas 
of focus for on-site and off-site examinations, and 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 also are 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, under the auspices of the 
FFIEC, requested comment on a limited number of proposed revisions to 
the Call Report (76 FR 72035) for implementation in 2012 that were 
focused primarily on institutions with $1 billion or more in total 
assets. After considering the comments received, on February 17, 2012, 
the agencies announced in the Federal Register (77 FR 9727) the 
implementation of reporting changes and instructional revisions that 
had been proposed to take effect March 31, 2012. The agencies also 
announced the implementation of revisions to two existing schedules 
proposed for implementation as of June 30, 2012. The FFIEC and the 
agencies further stated they were deferring the implementation of new 
Schedule RC-U, Loan Origination Activity (in Domestic Offices), and new 
Schedule RI-C, Disaggregated Data on the Allowance for Loan and Lease 
Losses (ALLL), both of which were originally proposed to be added to 
the Call Report effective June 30, 2012. The FFIEC and the agencies 
announced they were continuing to evaluate these proposed new schedules 
in light of the comments received.
    The agencies collectively received comments from eight entities on 
their November 21, 2011, Federal Register notice initially proposing 
these revisions: four banking organizations, two bankers' associations, 
a commercial lending software company, and a news organization. Three 
banking organizations and the two bankers' associations addressed 
proposed Schedule RI-C, and all eight commenters addressed proposed 
Schedule RC-U.
    Proposed Schedule RI-C--Commenters expressed the general concern 
that the proposed disaggregated ALLL data in Schedule RI-C are not 
aligned with the manner in which institutions estimate and maintain 
their ALLL. Although Financial Accounting Standards Board (FASB) 
Accounting Standards Update No. 2010-20, Disclosures about the Credit 
Quality of Financing Receivables and the Allowance for Credit Losses 
(ASU 2010-20), requires entities to disclose the ALLL at the portfolio 
segment level, institutions define segments differently than proposed 
for Schedule RI-C. According to the commenters, modifying systems to 
report ALLL information categorized as proposed would be costly and 
necessitate significant lead time, up to nine months, to implement. One 
commenter also recommended increasing the asset size threshold for 
institutions to report this schedule, proposed to be collected from 
institutions with $1 billion or more in total assets, to $5 billion or 
$10 billion in total assets.
    Two commenters recommended a more streamlined approach requiring 
disclosure of fewer loan categories, thereby allowing the Agencies to 
achieve their stated objective and permit institutions to report data 
consistently with the business models and methodologies used to 
estimate their ALLL. One of these commenters recommended collapsing the 
proposed nine loan categories and collecting ALLL and the related 
recorded investment amounts by impairment measurement method for only 
three segments: consumer credit cards, all other consumer loans, and 
commercial loans. The second commenter recommended reporting ALLL and 
the related recorded investment amounts by impairment measurement 
method for five loan categories: commercial real estate, residential 
real estate, commercial, credit cards, and other consumer. The second 
commenter also favored retaining the reporting of any unallocated 
portion of the ALLL as had been proposed.\1\ Implicit in both of these 
commenters' recommendations is the concept that the definitions for the 
loan categories in Schedule RI-C should be those the reporting 
institution uses in its ALLL methodology rather than those specified in 
Call Report Schedule RC-C, part I, Loans and Leases.
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    \1\ Another commenter stated that it fully supported this 
commenter's recommendations.
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    After consideration of the comments received on the proposed 
disaggregation of ALLL information, the FFIEC and the agencies have 
decided to modify proposed Schedule RI-C to collect ALLL and the 
related recorded investment amounts by impairment measurement method 
for the loan categories (and any unallocated portion of the ALLL) based 
on the second approach described in the preceding paragraph, but with 
the addition of a loan category for real estate construction loans. The 
agencies consider it appropriate to segregate construction loans from 
other commercial real estate loans because the risk characteristics of 
the former differ significantly from those of the latter. The agencies 
believe this more streamlined approach to proposed Schedule RI-C, 
including its use of general loan categories rather than specifically 
defined categories, would be more consistent with the methodologies 
institutions currently employ in determining the appropriate level for 
their overall ALLL and meeting the disclosure requirements of ASU 2010-
20. At the same time, the data that would be reported in Schedule RI-C, 
as modified, should be sufficient to enable the agencies to more finely 
focus their analyses related to the composition of an institution's 
ALLL and the changes therein over time. In this regard, to aid in 
evaluating the appropriateness of the reported level of an 
institution's ALLL (for example, in periods between examinations and 
when planning for examinations), the disaggregated ALLL data by loan 
category could be reviewed in conjunction with the past due and 
nonaccrual loan data used in general assessments of the credit quality 
of an institution's loan portfolio. These credit quality data are 
currently reported for broadly similar, but not identical, loan 
categories in Call Report Schedule RC-N, Past Due and Nonaccrual Loans, 
Leases, and Other Assets.
    The FFIEC and the agencies have decided to retain the proposed $1 
billion total asset threshold for Schedule RI-C, which exempts 91 
percent of all institutions from this reporting requirement. Given that 
institutions with $1 billion or more in total assets hold nearly 91 
percent of the ALLL balances held by all institutions as of June 30, 
2012, retaining this reporting threshold as proposed will enable the 
agencies to perform a more comprehensive and decision-useful analysis 
of the depository institution system, particularly in providing a 
better understanding of how institutions' ALLL practices and

[[Page 67062]]

allocations differ for particular loan categories as economic 
conditions change. Furthermore, all institutions with $1 billion or 
more in total assets are subject to regulations requiring them to 
prepare annual financial statements in accordance with U.S. generally 
accepted accounting principles.\2\ Accordingly, such institutions 
should have processes in place to develop the disaggregated ALLL data 
required to be disclosed by ASU 2010-20, which are comparable to the 
data specified by Schedule RI-C as modified in response to comments.
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    \2\ 12 CFR part 363, Annual Independent Audits and Reporting 
Requirements.
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    To allow institutions sufficient lead time to make any necessary 
adjustments to their data systems to report this modified 
disaggregation of their ALLL and the related recorded investment 
amounts by loan category and impairment measurement method, the 
agencies will delay implementation of new Schedule RI-C until the March 
31, 2013, report date.
    Consistent with longstanding practice, for the March 31, 2013, 
report date, institutions may provide reasonable estimates for any Call 
Report Schedule RI-C item for which the requested information is not 
readily available.
    Proposed Schedule RC-U--The FFIEC and the agencies have not yet 
completed their evaluation of this proposed new schedule in light of 
the comments received. When the FFIEC and the agencies have decided 
whether and how to proceed with Schedule RC-U, their decision will be 
addressed in a future Federal Register notice and, if applicable, 
submissions by the agencies will be made to OMB. To allow sufficient 
lead time for affected institutions to prepare for any resulting new 
reporting requirements for loan origination data, the collection of 
such data would not take effect before the June 30, 2013, report date.

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: October 31, 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, November 2, 
2012.
Robert deV. Frierson,
Secretary of the Board.
    Dated at Washington, DC, this 31st day of October 2012.
Robert E. Feldman,
Executive Secretary. Federal Deposit Insurance Corporation.
[FR Doc. 2012-27283 Filed 11-7-12; 8:45 am]
BILLING CODE 4810-33-P 6210-01-P 6714-01-P