[Federal Register Volume 83, Number 223 (Monday, November 19, 2018)]
[Proposed Rules]
[Pages 58432-58458]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-24587]



[[Page 58431]]

Vol. 83

Monday,

No. 223

November 19, 2018

Part III





Department of Treasury





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Office of the Comptroller of the Currency





Federal Reserve System





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Federal Deposit Insurance Corporation





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12 CFR Parts 52, 208, and 304





Reduced Reporting for Covered Depository Institutions; Proposed Rule

Federal Register / Vol. 83 , No. 223 / Monday, November 19, 2018 / 
Proposed Rules

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DEPARTMENT OF TREASURY

Office of the Comptroller of the Currency

12 CFR Part 52

[Docket ID OCC-2018-0032]
RIN 1557-AE39
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FEDERAL RESERVE SYSTEM

12 CFR Part 208

[Docket ID R-1618]
RIN 7100-AF12
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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 304

RIN 3065-AE82


Reduced Reporting for Covered Depository Institutions

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 proposed rulemaking with request for public comment.

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SUMMARY: The OCC, the Board, and the FDIC (collectively, the agencies) 
are inviting comment on a proposed rule that would implement section 
205 of the Economic Growth, Regulatory Relief, and Consumer Protection 
Act by: Expanding the eligibility to file the agencies' most 
streamlined report of condition, the FFIEC 051 Call Report, to include 
certain insured depository institutions with less than $5 billion in 
total consolidated assets that meet other criteria; and, establishing 
reduced reporting on the FFIEC 051 Call Report for the first and third 
reports of condition for a year. The OCC and Board also are proposing 
similar reduced reporting for certain uninsured institutions that they 
supervise with less than $5 billion in total consolidated assets that 
otherwise meet the same criteria. This Federal Register notice also 
includes a Paperwork Reduction Act notice to reduce the amount of data 
required to be reported on the FFIEC 051 Call Report for the first and 
third calendar quarters, and other related changes.

DATES: Comments must be received by January 18, 2019.

ADDRESSES: Comments should be directed to:
    OCC: You may submit comments to the OCC by any of the methods set 
forth below. Commenters are encouraged to submit comments through the 
Federal eRulemaking Portal or email, if possible. Please use the title 
``Reduced Reporting for Covered Depository Institutions'' to facilitate 
the organization and distribution of the comments. You may submit 
comments by any of the following methods:
     Federal eRulemaking Portal--``Regulations.gov'': Go to 
www.regulations.gov. Enter ``Docket ID OCC-2018-0032'' in the Search 
Box and click ``Search.'' Click on ``Comment Now'' to submit public 
comments.
     Click on the ``Help'' tab on the Regulations.gov home page 
to get information on using Regulations.gov, including instructions for 
submitting public comments.
     Email: [email protected].
     Mail: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, 400 7th Street SW, Suite 3E-
218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``Docket ID OCC-2018-0032'' in your comment.
    In general, the OCC will enter all comments received into the 
docket and publish the comments on the Regulations.gov website without 
change, including any business or personal information that you provide 
such as name and address information, email addresses, or phone 
numbers. Comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    You may review comments and other related materials that pertain to 
this rulemaking action by any of the following methods:
     Viewing Comments Electronically: Go to 
www.regulations.gov. Enter ``Docket ID OCC-2018-0032'' in the Search 
box and click ``Search.'' Click on ``Open Docket Folder'' on the right 
side of the screen. Comments and supporting materials can be viewed and 
filtered by clicking on ``View all documents and comments in this 
docket'' and then using the filtering tools on the left side of the 
screen.
     Click on the ``Help'' tab on the Regulations.gov home page 
to get information on using Regulations.gov. The docket may be viewed 
after the close of the comment period in the same manner as during the 
comment period.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th 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) 649-6700 or, for 
persons who are deaf or hearing impaired, TTY, (202) 649-5597. Upon 
arrival, visitors will be required to present valid government-issued 
photo identification and submit to security screening in order to 
inspect comments.
    Board: When submitting comments, please consider submitting your 
comments by email or fax because paper mail in the Washington, DC area 
and at the Board may be subject to delay.
    You may submit comments, identified by Docket No. R-1618 and RIN 
7100-AF12, by any of the following methods:
     Agency Website: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Email: [email protected]. Include docket 
and RIN numbers in the subject line of the message.
     FAX: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments will be made available on the Board's website 
at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, comments will not be edited to remove any identifying or 
contact information. Public comments may also be viewed electronically 
or in paper in Room 3515, 1801 K Street NW (between 18th and 19th 
Streets NW), between 9:00 a.m. and 5:00 p.m. on weekdays.
    FDIC: You may submit comments, identified by FDIC RIN 3064-AE82, by 
any of the following methods:
     Agency Website: https://www.fdic.gov/regulations/laws/federal/. Follow instructions for submitting comments on the Agency 
website.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th 
Street NW, Washington, DC 20429.
     Hand Delivery/Courier: Comments may be hand-delivered to 
the guard

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station at the rear of the 550 17th Street NW building (located on F 
Street) on business days between 7:00 a.m. and 5:00 p.m.
     Email: [email protected]. Comments submitted must include 
``FDIC'' and ``RIN 3064-AE82'' on the subject line of the message.
     Public Inspection: All comments received must include 
``FDIC'' and ``RIN 3064-AE82'' for this rulemaking. All comments 
received will be posted without change to http://www.fdic.gov/regulations/laws/federal/, including any personal information provided. 
Paper copies of public comments may be ordered from the FDIC Public 
Information Center, 3501 North Fairfax Drive, Room E-1002, Arlington, 
VA 22226, or by telephone at (877) 275-3342 or (703) 562-2200.

FOR FURTHER INFORMATION CONTACT:
    OCC: Cady Codding, Senior Policy Accountant, Office of the Chief 
Accountant, (202) 649-5764; Kevin Korzeniewski, Counsel, Office of the 
Chief Counsel, (202) 649-5490; or for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597.
    Board: Douglas Carpenter, Senior Supervisory Financial Analyst, 
Division of Supervision and Regulation, (202) 452-2205; Claudia Von 
Pervieux, Senior Counsel, (202) 452-2552, or Laura Bain, Senior 
Attorney, (202) 736-5546, Legal Division, Board of Governors of the 
Federal Reserve System, 20th and C Streets NW, Washington, DC 20551. 
For the hearing impaired only, Telecommunication Device for the Deaf 
(TDD), (202) 263-4869, Board of Governors of the Federal Reserve 
System, 20th Street and Constitution Avenue NW, Washington, DC 20551.
    FDIC: Robert Storch, Chief Accountant, Division of Risk Management 
Supervision, (202) 898-8906, [email protected]; or Nefretete Smith, 
Counsel, Legal Division, (202) 898-6851, [email protected]; or Kathryn 
Marks, Counsel, Legal Division, (202) 898-3896, [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
    A. Summary of Proposed Rule
    B. Background
II. Description of the Proposed Rule
III. Expected Impact of the Proposed Rule
IV. Alternatives Considered
V. Related Agency-Specific Revisions
VI. Regulatory Analyses
    A. Paperwork Reduction Act
    B. Regulatory Flexibility Act
    C. Plain Language
    D. Riegle Community Development and Regulatory Improvement Act 
of 1994
    E. OCC Unfunded Mandates Reform Act of 1995
Appendix A: Proposed Changes in Frequency of Collection for the 
FFIEC 051
Appendix B: Data Items To Be Collected From Institutions With Total 
Assets Greater Than $1 Billion on the FFIEC 051

I. Introduction

A. Summary of Proposed Rule

    The Office of the Comptroller of the Currency (OCC), the Board of 
Governors of the Federal Reserve System (Board), and the Federal 
Deposit Insurance Corporation (FDIC) (collectively, the agencies) are 
inviting comment on this notice of proposed rulemaking (proposed rule) 
that would implement reduced reporting on the Consolidated Reports of 
Condition and Income (Call Report) \1\ for eligible small insured 
depository institutions, consistent with section 205 of the Economic 
Growth, Regulatory Relief, and Consumer Protection Act of 2018 
(EGRRCPA).\2\ The OCC and Board also are proposing to implement reduced 
reporting for eligible uninsured institutions. The proposed rule would 
expand the number of institutions that may file the FFIEC 051 Call 
Report, the most streamlined version of the Call Report, and would 
provide for reduced reporting in the FFIEC 051 Call Report. Through the 
included Paperwork Reduction Act (PRA) notice, the agencies are 
proposing to reduce the amount of data required to be reported on the 
FFIEC 051 Call Report for the first and third calendar quarters.
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    \1\ The ``Call Report'' is the report of condition and income 
for most insured depository institutions. There currently are three 
versions of the Call Reports: The Consolidated Reports of Condition 
and Income for a Bank with Domestic and Foreign Offices (FFIEC 031), 
the Consolidated Report of Condition and Income for a Bank with 
Domestic Offices Only (FFIEC 041), and the Consolidated Reports of 
Condition and Income for a Bank with Domestic Offices Only and Total 
Assets Less Than $1 Billion (FFIEC 051).
    \2\ Public Law 115-174, 132 Stat. 1296 (2018).
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    The proposed reduced reporting would be available to smaller, non-
complex institutions, with domestic offices only, that meet the 
definition of ``covered depository institution.'' That term generally 
is defined in the proposed rule to mean an institution that has less 
than $5 billion in total consolidated assets, has no foreign offices, 
is not required to or has not elected to use Subpart E (Internal 
Ratings-Based and Advanced Measurement Approaches) of the agencies' 
regulatory capital rules to calculate its risk-based capital 
requirements, and is not a large or highly complex institution for 
purposes of the FDIC's assessment regulations.
    The proposed rule would provide for reduced reporting by allowing 
covered depository institutions to file the FFIEC 051 Call Report, with 
fewer data items required in the reports for the first and third 
calendar quarters. For covered depository institutions, the principal 
areas of reduced reporting in the first and third calendar quarters 
generally would include data items related to categories of risk-
weighting of various types of assets and other exposures under the 
agencies' regulatory capital rules, fiduciary and related services 
assets and income, and troubled debt restructurings by loan category. 
In addition, covered depository institutions that previously were 
ineligible to file the FFIEC 051 Call Report (i.e., those with total 
assets of $1 billion or more) would benefit from the FFIEC 051 Call 
Report's less detailed quarterly reporting as compared to other 
versions of the Call Report.\3\
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    \3\ As compared with other versions of the Call Report, the 
FFIEC 051 Call Report requires less detailed reporting for data 
items related to trading, mortgage banking, and securitization 
activities, as well as less detail for other lending and derivatives 
activities.
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B. Background

    In their statutory roles of chartering, licensing, supervising, or 
insuring institutions,\4\ the agencies principally rely on information 
obtained through on-site examinations of institutions, off-site 
supervisory activities between examinations, and information reported 
on an institution's report of condition. The report of condition is the 
Call Report for most insured depository institutions.\5\ Call Reports 
provide the most current financial and statistical data available for 
identifying areas of focus for supervision and for on-site and off-site 
examinations. The agencies use Call Report data in monitoring the 
condition, performance, and risk profile of individual institutions and 
the industry as a whole. Call Report data assist the agencies in their 
collective missions of promoting the safety and soundness of 
institutions and the financial system and the protection of consumer 
financial rights, as well as fulfilling agency-specific missions, such 
as conducting monetary policy, promoting financial stability, and

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administering federal deposit insurance. The agencies also use Call 
Report data in evaluating institutions' applications, including 
interstate merger and acquisition applications. In addition, Call 
Report data are used by the appropriate agencies to calculate 
institutions' deposit insurance assessments as well as national banks' 
and federal savings associations' semiannual assessment fees.
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    \4\ The OCC charters and supervises national banks and Federal 
savings associations, and licenses and supervises Federal branches 
and agencies of foreign banks; the Board supervises state member 
banks; the FDIC supervises state nonmember banks, state savings 
associations and state-licensed insured branches, and insures the 
deposits of all insured depository institutions.
    \5\ In addition, U.S. branches and agencies of foreign banks 
file the Report of Assets and Liabilities of U.S. Branches and 
Agencies of Foreign Banks (FFIEC 002).
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    The agencies recognize that institutions devote staffing and 
resources in order to complete and file Call Reports. In December 2014, 
the Federal Financial Institutions Examination Council (FFIEC), which 
is responsible for developing uniform reporting systems (including the 
Call Reports) for federally supervised financial institutions,\6\ 
started an initiative to reduce the reporting burden on small 
institutions. The FFIEC members developed the following guiding 
principles to evaluate potential additions and deletions of Call Report 
data items and other revisions to the Call Reports: (1) Data items 
serve a long-term regulatory or public policy purpose by assisting the 
FFIEC members in fulfilling their missions; (2) data items to be 
collected maximize practical utility and minimize, to the extent 
practicable and appropriate, burden on financial institutions; and (3) 
equivalent data items are not readily available through other means.
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    \6\ See 12 U.S.C. 3305(c). The agencies are members of the 
FFIEC. The term ``financial institution'' in this context means a 
commercial bank, savings bank, trust company, savings association, 
building and loan association, homestead association, cooperative 
bank, or credit union. 12 U.S.C. 3302(3).
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    As part of the FFIEC's Call Report burden-reduction initiative, 
FFIEC members conducted outreach with community banks and industry 
representatives to better understand what aspects of the Call Report 
process are significant sources of reporting burden for financial 
institutions; accelerated the statutorily mandated review of the Call 
Report; \7\ and evaluated the feasibility and merits of creating a more 
streamlined Call Report for eligible small institutions.\8\ Based on 
the response from community banks, trade associations, and public 
comments, as well as survey results of FFIEC member Call Report data 
users, in August 2016, the agencies invited public comment on a 
proposed streamlined version of the Call Report, the FFIEC 051 Call 
Report.\9\
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    \7\ See 12 U.S.C. 1817(a)(11). The agencies are statutorily 
mandated to conduct a review of the information and schedules in the 
Call Reports every five years, and reduce or eliminate any 
information or schedules for which the agencies determine continued 
collection is not required by law and no longer necessary or 
appropriate. https://www.ffiec.gov/pdf/2017_Interagency_Review_Consolidated_Reports_Condition_Income.pdf.
    \8\ The FFIEC published a series of Federal Register notices 
pursuant to the Paperwork Reduction Act of 1995. See 80 FR 56539 
(September 18, 2015) (principles); 81 FR 45357 (July 13, 2016) 
(burden reduction); 82 FR 2444 (January 9, 2017) (burden reduction 
and implementation of FFIEC 051); 83 FR 939 (January 8, 2018) 
(burden reduction); 83 FR 15678 (April 11, 2018) (burden reduction).
    \9\ 81 FR 54190 (August 15, 2016).
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    The FFIEC 051 Call Report first took effect as of March 31, 2017, 
and contained approximately 40 percent fewer data items than were 
included in the FFIEC 041 Call Report, which is the Call Report filed 
by institutions that have $1 billion or more in total assets, only have 
domestic offices, and are not branches of foreign banks. In addition, 
the initial FFIEC 051 Call Report collected approximately 4 percent of 
data items less frequently than the FFIEC 041 Call Report in effect at 
that time.
    In June and November 2017, the agencies proposed further reductions 
to the FFIEC 051 Call Report based on public comments and additional 
feedback from Call Report data users from the FFIEC members.\10\ The 
agencies also reviewed suggestions for streamlining the Call Reports 
provided in comment letters submitted during the public notice and 
comment period for the agencies' review of regulations required by the 
Economic Growth and Regulatory Paperwork Reduction Act.\11\ As a result 
of the further reductions that took effect as of the June 30, 2018, 
report date, the FFIEC 051 Call Report represents a reduction of 
approximately 43 percent of the data items and provides for reduced 
reporting frequency of approximately 6 percent of the data items, as 
compared to the FFIEC 041 Call Report in use immediately before the 
implementation of the FFIEC 051 Call Report. Currently, only 
institutions that have less than $1 billion in total assets, have only 
domestic offices, are not branches of foreign banks, and are not 
required or have not elected to use Subpart E of the agencies' 
regulatory capital rules (applicable to advanced approaches 
institutions) to calculate their risk-based capital requirements \12\ 
may use the FFIEC 051 Call Report.
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    \10\ See 82 FR 29147 (June 27, 2017), 82 FR 51908 (November 8, 
2017). These Federal Register notices also contained proposals to 
reduce data items in the FFIEC 031 and FFIEC 041 Call Reports.
    \11\ See 12 U.S.C. 3311.
    \12\ See 12 CFR part 3, subpart E (OCC); 12 CFR part 217, 
subpart E (Board); 12 CFR part 324, subpart E (FDIC). Generally, an 
institution is an advanced approaches institution if it has 
consolidated assets of at least $250 billion or if it has 
consolidated on-balance sheet foreign exposures of at least $10 
billion, or if it is a subsidiary of a depository institution, bank 
holding company, savings and loan holding company, or intermediate 
holding company that is an advanced approaches banking organization.
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II. Description of the Proposed Rule

    Section 205 of EGRRCPA amended section 7(a) of the Federal Deposit 
Insurance Act (FDI Act) and requires the agencies to issue regulations 
that allow for a reduced reporting requirement for a covered depository 
institution when the institution makes the first and third report of 
condition for a calendar year. Section 205 of EGRRCPA defines ``covered 
depository institution'' as an insured depository institution ``that-- 
(i) has less than $5 billion in total consolidated assets; and (ii) 
satisfies such other criteria as the [agencies] determine 
appropriate.'' \13\
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    \13\ 12 U.S.C. 1817(a)(12)(B).
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    The proposed rule would implement section 205 of EGRRCPA by 
expanding the number of insured depository institutions eligible to 
file the FFIEC 051 Call Report and establishing the reduced reporting 
in the FFIEC 051 Call Report permissible for such institutions for the 
first and third reports of condition for a year.\14\ The OCC and Board 
also are proposing to establish reduced reporting for certain uninsured 
institutions under their supervision that meet the proposed criteria.
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    \14\ Under the proposed rule, ``report of condition'' means the 
FFIEC 031, FFIEC 041, or FFIEC 051 versions of the Consolidated 
Reports of Condition and Income (Call Report) or the FFIEC 002 
report (Report of Assets and Liabilities of U.S. Branches and 
Agencies of Foreign Banks), as applicable, and as they may be 
amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
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    As discussed below, the agencies propose to implement reduced 
reporting by expanding the scope of institutions permitted to file the 
FFIEC 051 Call Report every quarter through the definition of ``covered 
depository institution.'' As noted, the FFIEC 051 Call Report is the 
most streamlined version of the Call Report and is familiar to 
institutions and their Call Report service providers and, therefore 
could be readily used by covered depository institutions for reduced 
reporting in the first and third calendar quarters.\15\ In particular, 
because the FFIEC 051 Call

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Report uses the same definitions for data items as other Call Report 
versions, as well as the same data item identifiers used by the Call 
Report preparation software products, the agencies anticipate that 
newly eligible covered depository institutions would be able to file 
the FFIEC 051 Call Report without the need to make significant changes 
to their Call Report preparation processes or incur significant 
cost.\16\ Finally, as discussed below in the PRA section, to implement 
section 205 of EGRRCPA the agencies are proposing to reduce the number 
of existing FFIEC 051 Call Report data items required to be reported in 
the first and third calendar quarters by approximately 37 percent. 
Accordingly, for all covered depository institutions, filing the FFIEC 
051 Call Report would provide an immediate reduction in required 
reporting without substantial administrative costs.
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    \15\ Based on June 30, 2018, Call Report data, of the 5,357 
institutions with reported total assets below the statutory $5 
billion asset threshold, 4,810 or almost 90 percent of those 
institutions reported less than $1 billion in total assets and are 
currently eligible to file the FFIEC 051 Call Report based on asset 
size. Approximately 77 percent of the 4,810 institutions with total 
assets below $1 billion already file the FFIEC 051 Call Report, and 
thus would face little to no administrative costs to obtain reduced 
reporting for the first and third calendar quarters of a year.
    \16\ Based on June 30, 2018 Call Report data, 547 institutions 
that reported total assets of $1 billion or more, but less than $5 
billion, could be eligible to file the FFIEC 051 Call Report in 2019 
under the proposed rule.
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    The agencies expect to propose additional reductions to the FFIEC 
051 Call Report in connection with the implementation of section 201 of 
EGRRCPA. Section 201 of EGRRCPA requires the agencies to adopt a 
community bank leverage ratio in place of the existing regulatory 
capital rules for qualifying community banks,\17\ which the agencies 
expect would lead to a reduction in the number of regulatory capital 
data items that would need to be reported by such institutions. The 
agencies also will continue to review the data collected on the FFIEC 
051 Call Report and seek to reduce the reporting frequency of data 
items from quarterly to semi-annual where practicable.
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    \17\ A qualifying community bank is defined as a depository 
institution or depository holding company with total consolidated 
assets of less than $10 billion and a risk profile deemed 
appropriate by the agencies. Under section 201, the agencies may 
determine whether a community bank qualifies based on consideration 
of certain risk factors.
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A. Covered Depository Institution

    Section 205 of EGRRCPA defines ``covered depository institution'' 
as an insured depository institution ``that-- (i) has less than $5 
billion in total consolidated assets; and (ii) satisfies such other 
criteria as the [agencies] determine appropriate.'' \18\ The proposed 
rule would define ``covered depository institution'' as an institution 
that meets all the following criteria: Has less than $5 billion in 
total consolidated assets as reported in its report of condition for 
the second calendar quarter of the preceding calendar year; has no 
foreign offices; is not required to or has not elected to use Subpart E 
of the agencies' regulatory capital rules to calculate its risk-based 
capital requirements; and is not a large or highly complex institution 
for purposes of the FDIC's assessment regulations. The OCC's definition 
would also scope out institutions that file the FFIEC 002 report of 
condition. In addition, the FDIC's definition would exclude state-
licensed insured branches of foreign banks. These other non-asset-size 
criteria are identical to the current eligibility criteria for 
institutions with less than $1 billion in total assets to file the 
FFIEC 051 Call Report except for the criterion related to whether the 
institution is large or highly complex under the FDIC's assessment 
regulations.
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    \18\ 12 U.S.C. 1817(a)(12)(B).
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    The agencies would allow reduced reporting for ``insured depository 
institutions'', as such term is defined in section 3 of the FDI Act, 12 
U.S.C. 1813, and as required by section 205 of EGRRCPA. The OCC and 
Board also would extend reduced reporting to certain uninsured 
institutions that they supervise and that would otherwise meet the same 
criteria.\19\ Greater parity in the reporting of insured and uninsured 
national banks and state member banks would be appropriate in light of 
the similarities between the information used to review the activities 
of such insured and uninsured institutions. In addition, some uninsured 
institutions with total assets of less than $1 billion currently file 
the FFIEC 051 Call Report and, therefore, may continue to use this 
version of the Call Report under the proposed rule.
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    \19\ The FDIC only supervises insured state nonmember banks, 
insured state savings associations, and insured state-licensed 
branches. Currently, no uninsured Board-regulated institution is 
eligible to file the FFIEC 051 Call Report, but under the proposal 
one uninsured Board-regulated institution would meet the proposed 
criteria for eligibility to file the FFIEC 051 Call Report. The OCC 
supervises 49 uninsured institutions that currently are eligible to 
file the FFIEC 051 Call Report, which would increase to 50 under the 
proposed rule.
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Asset Threshold
    The proposed rule would define ``total consolidated assets'' as 
total assets as reported in an institution's report of condition. An 
institution would determine whether it meets the asset-size criterion 
and is eligible to file the FFIEC 051 Call Report based on the total 
assets it reported in its report of condition (Schedule RC, Item 12 in 
the Call Reports), which is calculated on a consolidated basis, in the 
institution's report of condition for the second calendar quarter of 
the previous calendar year. This approach is consistent with the 
current FFIEC 051 Call Report instructions for determining eligibility 
to file the FFIEC 051 Call Report based on asset size.\20\
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    \20\ See FFIEC 051 instructions, available at https://www.ffiec.gov/pdf/FFIEC_forms/FFIEC051_201806_i.pdf.
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    This approach should allow an institution sufficient time to 
address any accounting or reporting systems changes or other 
preparation process changes that may be needed if the institution wants 
to take advantage of, or is no longer eligible for, filing the FFIEC 
051 Call Report with its reduced reporting in the following calendar 
year. For example, an institution that meets the asset-size criterion 
based on its report of condition as of June 30, 2018, may be eligible 
to file the FFIEC 051 Call Report for the entire 2019 calendar year, 
even if its assets increase to $5 billion or more later in 2018 or 
2019, provided it also continues to meet the non-asset-size criteria 
discussed below. If the same institution reports $5 billion or more in 
total assets on its Call Report as of June 30, 2019, the institution 
could continue to file the FFIEC 051 Call Report for report dates 
through December 31, 2019 (based on its total assets as of June 30, 
2018), including reduced reporting in the third calendar quarter of 
2019 as long as it continued to meet the non-asset-size criteria. 
However, because the institution exceeded the asset-size criterion as 
of June 30, 2019, the institution would be ineligible to file the FFIEC 
051 Call Report in the 2020 calendar year.
    Question 1: What are the advantages and disadvantages of 
institutions measuring total assets using the approach discussed above? 
Should the agencies use average total assets over a specified period 
rather than total assets on a single reporting date? Is another 
methodology more appropriate to measure total assets for purposes of 
the asset-size criterion? If so, what methodology is more appropriate 
and why?
    Question 2: The agencies are not proposing to immediately 
disqualify an institution from using reduced reporting if it exceeds $5 
billion in total assets, regardless of how the institution crossed the 
asset threshold, including through a merger or acquisition. Is this 
appropriate and why?
Other Eligibility Criteria
    The agencies are also proposing that an institution satisfy other 
criteria to be eligible for reduced reporting, consistent with section 
205. These other criteria are based on an institution's

[[Page 58436]]

international activities, its treatment under the agencies' regulatory 
capital rules, and its treatment under the FDIC's deposit insurance 
assessment regulations. These non-asset-size criteria are identical to 
the current eligibility criteria for institutions with less than $1 
billion in total assets to file the FFIEC 051 Call Report with the 
exception of the criterion related to treatment under the FDIC's 
assessment regulations. Unlike the asset-size criterion, which is 
determined as of the report of condition filed for the second calendar 
quarter (as of June 30) of the prior calendar year, an institution 
would determine in each calendar quarter whether it meets all of these 
non-asset-size criteria. If in any calendar quarter an institution no 
longer meets all of these other criteria, then the institution would 
become ineligible to file the FFIEC 051 Call Report beginning the 
quarter in which the institution failed to meet one of the non-asset-
size criteria. In contrast to failing the asset-size criterion, failing 
to meet the non-asset-size criteria often reflects a significant change 
in the operations of an institution as a result of deliberate planning, 
such as opening a foreign branch or becoming subject to a different 
approach under the agencies' regulatory capital rules. Therefore, in 
contrast to the asset-size criterion, the proposed rule does not 
include a grace period for non-asset-size criteria.
    International Activities. The proposal would exclude from the 
definition of ``covered depository institution'' an institution that 
has foreign offices or that is an insured branch of a foreign bank. 
These criteria are identical to the current eligibility criteria that 
exclude these institutions from being eligible to file the FFIEC 051 
Call Report. Foreign offices would be defined as: Branches or 
consolidated subsidiaries in foreign countries \21\ unless located on a 
U.S. military facility; international banking facilities as defined 
under 12 CFR 204.8; majority-owned Edge Act and Agreement \22\ 
subsidiaries; and branches or consolidated subsidiaries in U.S. 
territories if the bank is chartered or headquartered in a U.S. state 
or the District of Columbia. Insured branches of foreign banks would be 
those branches defined in section 3(s) of the FDI Act, 12 U.S.C. 
1813(s), which file the FFIEC 002 version of the report of condition. 
The agencies believe it is appropriate to exclude these institutions 
from the proposal because the nature of these international activities 
requires more comprehensive and detailed financial information to 
effectively supervise and monitor them.\23\ This comprehensive 
information related to foreign activities is required to be reported in 
the FFIEC 002 report of condition. For example, institutions that have 
foreign offices may present risks, such as currency risk and country-
specific risks, for which supervisors require additional financial 
information to ensure appropriate monitoring and supervision. 
Permitting these institutions to receive reduced reporting on the FFIEC 
051 Call Report would impair the agencies' existing supervision of 
these institutions.
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    \21\ The proposed rule would define ``foreign country'' to refer 
to one or more foreign nations, and include the overseas 
territories, dependencies, and insular possessions of those nations 
and of the United States. This definition also is used in the 
Board's Regulation K, 12 CFR part 211.
    \22\ 12 CFR 211.1(c)(2) and (3).
    \23\ Depository institutions with foreign offices are currently 
required to file the FFIEC 031 Call Report and thus are not 
currently eligible to file the FFIEC 051. Branches of foreign banks 
(both Federally and State-licensed), are required to file the FFIEC 
002 version of the report of condition.
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    Advanced Approaches Institutions. The proposal would exclude from 
the definition of ``covered depository institution'' an institution 
that is required to, or has elected to, use Subpart E of the agencies' 
regulatory capital rules to calculate its risk-based capital 
requirements (advanced approaches institution). In general, an advanced 
approaches institution is an institution that has consolidated total 
assets equal to $250 billion or more, has consolidated total on-balance 
sheet foreign exposure equal to $10 billion or more, or is a subsidiary 
of a depository institution or holding company that uses the advanced 
approaches to calculate its total-risk weighted assets.\24\ Advanced 
approaches institutions currently are precluded from filing the FFIEC 
051 Call Report. Advanced approaches institutions generally must 
calculate their regulatory capital requirements under the advanced 
approaches, which relies in part on internal models and complex 
formulas, and are subject to additional requirements such as the 
supplementary leverage ratio.\25\ While advanced approaches holding 
companies typically have total assets of more than $250 billion, their 
depository institution subsidiaries also generally are subject to the 
advanced approaches, some of which may have total assets of less than 
$5 billion. Some of these subsidiaries often engage in specialized or 
highly complex activities that require more comprehensive and detailed 
financial information to ensure effective supervision and monitoring.
---------------------------------------------------------------------------

    \24\ See 12 CFR 3.100(b) (OCC); 217.100(b) (Board); 324.100(b) 
(FDIC).
    \25\ See 12 CFR part 3, subpart E and 12 CFR 3.10(c)(4) (OCC); 
12 CFR part 217, subpart E and 12 CFR 217.10(c)(4) (Board); 12 CFR 
part 324, subpart E and 12 CFR 324.10(c)(4) (FDIC).
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    Institutions Assessed as Large or Highly Complex by the FDIC. 
Finally, the agencies propose to exclude from the definition of 
``covered depository institution'' an insured depository institution 
that is assessed as a ``large institution'' or ``highly complex 
institution,'' as defined in the FDIC's deposit insurance assessment 
regulations.\26\
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    \26\ See 12 CFR 327.8(e), (f), (g) and (s). For the purposes of 
the FDIC's assessment regulations, a ``small institution'' generally 
is an insured depository institution with less than $10 billion in 
total assets. Generally, a ``large institution'' is an insured 
depository institution with more than $10 billion in total assets or 
that is treated as a large institution for assessment purposes under 
section 327.16(f). Generally, a ``highly complex institution'' is: 
(i) An insured depository institution (excluding a credit card bank) 
that has had $50 billion or more in total assets for at least four 
consecutive quarters, is controlled by a U.S. parent holding company 
that has had $500 billion or more in total assets for four 
consecutive quarters, or is controlled by one or more intermediate 
U.S. parent holding companies that are controlled by a U.S. holding 
company that has had $500 billion or more in assets for four 
consecutive quarters; or (ii) a processing bank or trust company. 
However, an institution with assets between $5 billion and $10 
billion may request treatment for deposit insurance assessments as a 
large institution, and few institutions have made this request to 
date. See 12 CFR 327.16(f).
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    Under the FDIC's assessment regulations, large and highly complex 
institutions are assessed using combined CAMELS \27\ ratings and 
certain forward-looking financial measures to assess the risks such 
institutions pose to the Deposit Insurance Fund.\28\ The FDIC uses the 
data reported by a large or highly complex institution on either the 
FFIEC 031 or FFIEC 041 Call Report, as appropriate, to calculate the 
institution's assessment rate. For example, the FDIC uses data on 
Schedule RC-O regarding higher-risk assets, which are not reported on 
the FFIEC 051 Call Report, to calculate financial ratios used to 
determine a large or highly complex institution's assessment rate.
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    \27\ A financial institution is assigned a ``CAMELS'' composite 
rating based on an evaluation and rating of six essential components 
of an institution's financial condition and operations. These 
component factors address the: Adequacy of capital (C); quality of 
assets (A); capability of management (M); quality and level of 
earnings (E); adequacy of liquidity (L); and sensitivity to market 
risk (S).
    \28\ See 12 CFR 327.16(b) and (c); 76 FR 10672, 10688-10698 
(February 25, 2011).
---------------------------------------------------------------------------

    Under the FDIC's assessments regulations, an institution that 
increases or decreases in asset size is reclassified as a small 
institution, large institution, or highly complex institution generally 
after such institution reports assets of less than $10 billion, $10 
billion or more, or more than $50 billion,

[[Page 58437]]

respectively, for four consecutive quarters.\29\ Because 
reclassification requires that the institution report above or below a 
certain asset-based threshold for four consecutive quarters, there may 
be a period of time in which an institution would otherwise be eligible 
for reduced reporting by filing the FFIEC 051 Call Report because it 
met the asset-size criterion, but is assessed as a large or highly 
complex institution. Although this situation is likely to be rare, 
without this criterion such institution would be eligible to file the 
FFIEC 051 Call Report with its reduced reporting under the proposed 
rule. For example, an institution that had been reporting more than $10 
billion in assets and was assessed as a ``large institution'' as of 
March 31, 2018, could decrease in size such that its total assets, as 
of June 30, 2018, were below $5 billion. If that institution met the 
other non-asset-size criteria discussed above, then that institution 
could be eligible to file the FFIEC 051 Call Report in the 2019 
calendar year, including reduced reporting in the first and third 
calendar quarters of 2019. However, such an institution would continue 
to be assessed as a large institution and would not be reclassified as 
a ``small institution'' for deposit insurance assessments until it 
reported total assets below $10 billion for four consecutive quarters. 
Therefore, as long as the institution continues to be assessed as a 
``large institution,'' it would be ineligible to file the FFIEC 051 
Call Report, including its reduced reporting, until it was reclassified 
for deposit insurance assessments and assessed as a ``small 
institution'' (i.e., beginning with the third calendar quarter in 
2019).
---------------------------------------------------------------------------

    \29\ Under the FDIC's assessment regulations, an insured 
depository institution can be reclassified as a highly complex 
institution because they meet the definition of a ``processing bank 
or trust company.'' Under that definition, an insured depository 
institution would need to, among other things, have total assets of 
$10 billion or more for at least four consecutive quarters. See 12 
CFR 327.8(s).
---------------------------------------------------------------------------

    This proposed eligibility criterion ensures that an institution 
that meets the asset-size criterion based on its report of condition 
for the second calendar quarter of a previous year, but is treated as a 
large or highly complex institution for assessment purposes, will 
continue to file the FFIEC 031 or FFIEC 041 Call Report, as 
appropriate, which contain the data items required by the FDIC to 
calculate the institution's assessment rate.
    Question 3: Do the other criteria proposed by the agencies set an 
appropriate scope for institutions eligible for reduced reporting? Are 
there additional institutions or classes of institutions meeting the 
asset-size criterion that the agencies should consider making eligible 
to use reduced reporting and, if so, why? Are there additional 
institutions or classes of institutions that the agencies should 
consider making ineligible for reduced reporting and, if so, why?

B. Reduced Reporting

    The agencies propose to implement the reduced reporting required by 
section 205 of EGRRCPA by first allowing the broader group of covered 
depository institutions to file the FFIEC 051 Call Report each calendar 
quarter. The proposed rule would extend eligibility to file the FFIEC 
051 Call Report to all covered depository institutions with $1 billion 
or more, but less than $5 billion, in total assets and that meet the 
non-asset-size criteria. As discussed in the PRA section below, the 
agencies propose revising the eligibility criteria for filing the FFIEC 
051 Call Report to match the criteria to qualify as a covered 
depository institution under the proposal. As a result, this approach 
would provide significant relief through reduced reporting to covered 
depository institutions that currently are required to file the FFIEC 
041 Call Report. For example, the current version of the FFIEC 051 Call 
Report includes 1,147 reportable data items in each of the first and 
third calendar quarters, compared with 2,029 reportable data items 
required on the FFIEC 041 Call Report in those calendar quarters, which 
is the version of the Call Report currently completed by most 
institutions with total assets of $1 billion or more, but less than $5 
billion. Under the proposal, covered depository institutions with total 
assets between $1 billion and less than $5 billion would be eligible to 
file the FFIEC 051 Call Report in each calendar quarter of a calendar 
year (provided that they continue to meet the non-asset-size 
eligibility criteria), which would provide substantial reporting relief 
for these institutions compared to the FFIEC 041 Call Report currently 
used by most of those institutions.
    In addition to expanding the number of institutions eligible to 
file the FFIEC 051 Call Report, the agencies propose to implement the 
reduced reporting required by section 205 of EGRRCPA by further 
reducing the reporting required on the FFIEC 051 Call Report for all 
covered depository institutions in the first and third calendar 
quarters. The agencies propose to achieve this by reducing the 
frequency of reporting in the FFIEC 051 Call Report for approximately 
37 percent of the existing data items in this report--from quarterly to 
semiannual--as described in the PRA section below. The principal areas 
of reduced reporting in the first and third quarters include data items 
related to categories of risk-weighting of various types of assets and 
other exposures under the agencies' regulatory capital rules, fiduciary 
and related services assets and income, and troubled debt 
restructurings by loan category. This reduction in frequency for 
certain data items would provide all covered depository institutions, 
including those with less than $1 billion in total assets that 
currently file the FFIEC 051 Call Report, with further reduced 
reporting in the first and third calendar quarters.
    Question 4: Is the agencies' proposal to implement reduced 
reporting by expanding eligibility to file the FFIEC 051 Call Report 
appropriate? If not, what would be a more appropriate way to implement 
Section 205's reduced reporting requirement, and why?

C. Reservation of Authority

    The proposed rule includes a reservation of authority that would 
allow the appropriate Federal banking agency, in consultation with the 
applicable state chartering authority, and on an institution-specific 
basis, to require a covered depository institution to file the FFIEC 
041 Call Report, or any successor thereto, in any calendar quarter or 
quarters in which the covered depository institution would otherwise be 
eligible to file the FFIEC 051 Call Report, based on the appropriate 
Federal banking agency's determination that such filing is necessary 
for supervisory purposes. In making such a determination, the 
appropriate Federal banking agency may consider criteria including 
whether the institution is significantly engaged in one or more 
complex, specialized, or other higher-risk activities, such as those 
for which limited information is reported in the FFIEC 051 Call Report 
compared to the FFIEC 041 Call Report. For example, if a covered 
depository institution has a considerable concentration of either 
trading assets or mortgage banking activities, the appropriate Federal 
banking agency may seek additional information from that institution by 
requiring the institution to file the FFIEC 041 Call Report. Generally, 
a covered depository institution's safety and soundness, size, 
complexity, activities, risk profile, and other factors, such as an 
increase in a covered depository institution's asset size resulting 
from a merger or acquisition, also may be taken into consideration.
    If, after considering such factors, the appropriate Federal banking 
agency determines that the covered depository institution should be 
required to file the

[[Page 58438]]

FFIEC 041 Call Report, the appropriate Federal banking agency would 
provide written notice to the covered depository institution prior to 
the filing requirement's becoming effective. Any covered depository 
institution eligible to file the FFIEC 051 Call Report, but that is 
required by its appropriate Federal banking agency to file the FFIEC 
041 Call Report under the reservation of authority, would be required 
to continue to file the FFIEC 041 Call Report until the appropriate 
Federal banking agency provides written notice to the covered 
depository institution that it is no longer required to file the FFIEC 
041 Call Report. The justification for use of the reservation and its 
terms will also be provided in the notice.
    This authority would provide the agencies with the flexibility to 
require an institution to report and disclose additional Call Report 
data if warranted by an institution's individual circumstances and risk 
profile. Consistent with current supervisory practices and experience, 
the exercise of the reservation of authority generally would be a 
decision made by a member of the appropriate agency's senior management 
and would not be at the discretion of examination staff.

III. Expected Impact of the Proposed Rule

    The proposed rule is expected to broaden the number of institutions 
that may file the FFIEC 051 Call Report and be eligible for reduced 
reporting in the first and third calendar quarters.\30\ Based on June 
30, 2018, Call Report data, 5,357 institutions reported total assets of 
less than $5 billion. Of these, 547 institutions reported total assets 
of $1 billion or more, but less than $5 billion, and are currently 
ineligible to file the FFIEC 051 Call Report in 2019, but would meet 
the definition of ``covered depository institution'' under the proposed 
rule. For 533 of these 547 institutions, this would mark the first time 
such institution is eligible to file the FFIEC 051 Call Report.\31\ 
Overall, each of the 5,357 institutions that reported less than $5 
billion in total assets in their Call Report as of June 30, 2018, and 
that would qualify as a ``covered depository institution'' under the 
proposed rule, could file the FFIEC 051 Call Report and report 
approximately 37 percent fewer data items in the first and third 
calendar quarters than in the current FFIEC 051 Call Report.
---------------------------------------------------------------------------

    \30\ The proposed rule allows reduced reporting for covered 
depository institutions, but does not mandate that any institution 
file the FFIEC 051 Call Report. Based on June 30, 2018, Call Report 
data, approximately 77 percent of currently eligible institutions 
that reported total assets of less than $1 billion elected to file 
the FFIEC 051 Call Report.
    \31\ Fourteen institutions currently file the FFIEC 051 Call 
Report, but reported assets of $1 billion or more, but less than $5 
billion on their Call Report as of June 30, 2018. Under the current 
Call Report instructions, these institutions would not be eligible 
to file the FFIEC 051 Call Report in 2019. However, under the 
proposed rule, these institutions would meet the definition of 
``covered depository institution'' and, therefore, could continue to 
file the FFIEC 051 Call Report in 2019 (assuming they continue to 
meet the non-asset-size criteria).
---------------------------------------------------------------------------

    The agencies estimate the average quarterly reporting burden hours 
per institution for the current FFIEC 041 and FFIEC 051 Call Reports 
are 64.49 hours and 52.31 hours, respectively, for institutions that 
would become eligible to file the FFIEC 051 Call Report in 2019. Thus, 
each covered depository institution that switches from filing the 
current FFIEC 041 Call Report to the FFIEC 051 Call Report (amended as 
proposed in the PRA section) is expected to save, on average, 12.18 
hours per quarter. Assuming that newly eligible covered depository 
institutions would file the FFIEC 051 Call Report at the same rate as 
currently eligible institutions file the FFIEC 051 Call Report (77 
percent), the agencies estimate a total reporting burden reduction of 
5,130 hours per quarter for these institutions.\32\
---------------------------------------------------------------------------

    \32\ Calculated as 12.18 burden hours multiplied by 77 percent 
of 547 institutions that would be eligible under the proposed rule. 
Covered depository institutions could file the FFIEC 051 Call Report 
at a higher rate than the current 77 percent participation level, 
particularly due to the opportunity under the proposed rule to 
obtain additional reporting relief in the first and third calendar 
quarters.
---------------------------------------------------------------------------

    The proposed rule also provides for reduced reporting in the first 
and third calendar quarters for covered depository institutions. As 
discussed below in the PRA section, the agencies are proposing to 
remove approximately 37 percent of data items from being reported in 
the FFIEC 051 Call Report for covered depository institutions in the 
first and third calendar quarters. The principal areas of reduced 
reporting in the first and third calendar quarters include data items 
related to categories of risk-weighting of various types of assets and 
other exposures under the agencies' regulatory capital rules, fiduciary 
and related service assets and income, and troubled debt restructurings 
by loan category. These data items are currently collected every 
calendar quarter on the FFIEC 051 Call Report. Every covered depository 
institution that files the FFIEC 051 Call Report would experience a 
reduction in reporting for the first and third calendar quarters as a 
result of this aspect of the proposed rule. The agencies estimate that 
the proposed removal of approximately 37 percent of data items from the 
reporting requirements of covered depository institutions in the first 
and third calendar quarters would reduce the average quarterly 
reporting burden by 1.18 hours for the 3,714 institutions that filed 
the FFIEC 051 Call Report for the June 30, 2018, report date. This 
represents a total estimated burden reduction of 4,383 hours per 
quarter for these institutions.\33\
---------------------------------------------------------------------------

    \33\ 1.18 hours * 3,714 FFIEC 051 Call Report filers for the 
report dated June 30, 2018.
---------------------------------------------------------------------------

    As also discussed below in the PRA section, the agencies are 
proposing to add certain data items to the FFIEC 051 Call Report for 
covered depository institutions with $1 billion or more, but less than 
$5 billion, in total assets. Based on Call Report data as of June 30, 
2018, 533 institutions with $1 billion or more, but less than $5 
billion, currently file the FFIEC 041 Call Report, but would meet the 
definition of ``covered depository institution'' under the proposed 
rule. Because these 533 institutions already report these data items on 
the FFIEC 041 Call Report, the proposed addition of these data items to 
the FFIEC 051 Call Report for these institutions would not represent an 
increase in reporting burden as these institutions would experience an 
overall net decrease in reporting burden by switching to the FFIEC 051 
Call Report. Furthermore, only one of these items would be collected 
quarterly; the other items would be collected semiannually or annually. 
In addition, these data items would not be required to be completed by 
institutions with less than $1 billion in total assets that file the 
FFIEC 041 or FFIEC 051 Call Reports, so institutions that are currently 
eligible to file the FFIEC 051 Call Report would not be affected by the 
addition of these items.
    Based on the agencies' total hourly wage rate for Call Report 
preparation of $117 and the reduction in reporting hours resulting from 
the proposed reduced reporting discussed in the PRA section, it is 
estimated that reporting costs could be $600,210 less each quarter, on 
average, for the 547 eligible institutions that reported $1 billion or 
more, but less than $5 billion, in total assets on their June 30, 2018, 
Call Report.\34\ Also, the agencies estimate that reporting costs could 
be $512,811 less each quarter, on average, for the 3,714 institutions 
that filed the FFIEC 051 Call Report for June 30, 2018.\35\ In sum, the 
proposed changes to the FFIEC 051 Call Report that are discussed below

[[Page 58439]]

in the PRA section could reduce annual reporting costs by an estimated 
$4,452,084, or 0.008 percent of total annualized non-interest expenses, 
for institutions that reported total assets of less than $5 billion on 
the Call Report as of the June 30, 2018, and either filed the FFIEC 051 
Call Report, or filed the FFIEC 041 Call Report but are expected to 
file the FFIEC 051 Call Report, under the proposed rule beginning in 
2019.\36\
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    \34\ $117 per hour * 5,130 hours per quarter.
    \35\ $117 per hour * 4,383 hours per quarter.
    \36\ $117 per hour * [5,130 hours per quarter + 4,383 hours per 
quarter] * 4 quarters per year.
---------------------------------------------------------------------------

    Finally, the proposed rule could impose some minor additional 
regulatory costs, in the first year of implementation, that are 
associated with changes to internal systems or processes for affected 
institutions that are not currently eligible for, or do not currently 
file, the FFIEC 051 Call Report. The agencies expect that these 
additional costs should be relatively low as the FFIEC 051 Call Report 
shares defined terms and data item identifiers with the other Call 
Reports, so institutions that switch to the FFIEC 051 Call Report 
should not necessitate significant reporting system changes. However, 
these costs are also difficult to estimate accurately with available 
information because they depend upon the individual characteristics of 
each institution, its recordkeeping and reporting systems, and the 
decisions of its senior management.
    Question 5: The agencies invite comments on all aspects of the 
information provided in this Expected Impact section. In particular, 
would this proposal have any significant effects on institutions that 
the agencies have not identified?
    Question 6: Are there other factors or aspects of regulatory 
reporting that the agencies should consider in assessing the impact of 
the proposed rule?

IV. Alternatives Considered

    The agencies recognize that while the statutory mandate is to allow 
for reduced reporting in the first and third calendar quarters for 
covered depository institutions, the implementation of section 205 of 
EGRRCPA presents an additional opportunity to provide broader 
regulatory relief to smaller, less complex institutions that are 
currently required to file the FFIEC 041 Call Report because they have 
$1 billion or more in total assets. In developing the proposal, the 
agencies sought to reduce the reporting burden on institutions with 
total consolidated assets of less than $5 billion, consistent with the 
mandate in section 205, while also ensuring that the agencies' data 
needs for institutions in the size range would continue to be met.
    The agencies considered two alternative approaches to implementing 
section 205 as part of the development of the proposed rule. In 
considering these alternatives, the agencies reviewed prior PRA notices 
in which Call Report changes were discussed and comments were 
addressed. Additionally, the agencies considered comments received on 
the Call Report burden reduction initiative announced in December 2014 
that resulted in the creation of the FFIEC 051 Call Report. The 
agencies note that the FFIEC Call Report burden-reduction initiative 
involved significant outreach to community banks and to users of Call 
Report data and that the guiding principles developed as part of the 
initiative informed the development of the approach taken in this 
proposal.
    Alternative 1: Identify data items for reduced reporting on the 
FFIEC 041 and FFIEC 051 Call Reports. The agencies considered reviewing 
the FFIEC 041 and FFIEC 051 Call Reports to identify data items that 
could be reported on a less frequent basis by institutions with less 
than $5 billion in total assets. A possible advantage to this approach 
is that it might have been easier to present the various items proposed 
for reduced reporting. However, the agencies also recognized that the 
existing FFIEC 051 Call Report in its entirety already requires the 
reporting of significantly fewer data items than the FFIEC 041 Call 
Report. Therefore, expanding institutions' eligibility to file the 
FFIEC 051 Call Report was determined to be the more beneficial approach 
with respect to institutions with total assets of $1 billion or more, 
but less than $5 billion, because it would provide those institutions 
with immediate and significant reductions in the overall number of data 
items reported. In addition, re-reviewing every data item on the FFIEC 
041 Call Report would require significantly more time and would delay 
the implementation of reduced reporting in comparison to proposing to 
use the existing FFIEC 051 Call Report.
    Alternative 2: Create a new, separate Call Report form for 
``covered depository institutions.'' The agencies also considered 
creating a new, separate Call Report for covered depository 
institutions that would provide for reduced reporting in the first and 
third calendar quarters. The agencies believed that, while such an 
approach may appear simple to do, creating an entirely separate form 
only two years after the implementation of the new FFIEC 051 Call 
Report could lead to confusion about which form to file, especially 
because the criteria for filing the form likely would have been very 
similar to the current eligibility criteria for filing the FFIEC 051 
Call Report. Also, this approach could result in institutions having to 
reorganize their reporting systems and processes to accommodate their 
use of a new form and incur costs and administrative burden in doing 
so. Because the proposed rule is intended to reduce burden on smaller, 
less complex institutions, the agencies determined that producing a new 
Call Report would not be the most efficient option. Additionally, the 
agencies recognized that they would require significant time to develop 
and publish an entirely new Call Report form, which would delay the 
regulatory reporting relief proposed in the rule.

V. Related Agency-Specific Revisions

A. Board

    The Board does not currently have a rule that sets forth the report 
of condition filing requirements of state-chartered banks that are 
members of the Federal Reserve System (state member banks), and instead 
relies on its statutory authority under section 9 of the Federal 
Reserve Act (FRA) and section 7(a)(3) of the FDI Act to require state 
member banks to provide reports of condition. In light of section 205 
of EGRRCPA's requirement that the Board issue a rule that allows for 
reduced reporting by certain eligible Board-supervised insured 
depository institutions, the Board proposes to add a new subpart to 
Regulation H, which governs the membership of state banking 
institutions in the Federal Reserve System. The Board proposes to add 
new subpart K to Regulation H, which will incorporate the rule text 
implementing section 205. In addition to insured state member banks, 
the Board also supervises uninsured state member banks, such as 
nondepository trust companies. The Board requires such institutions to 
use the Call Report to submit financial data. The Board's proposed rule 
also would extend the use of the reduced reporting requirement to 
uninsured state member banks if they meet the criteria for covered 
depository institutions identified in the rule.
    The Board also proposes to include in new subpart K, pursuant to 
its statutory authority under section 9 of the FRA and section 7(a)(3) 
of the FDI Act, subsection 208.122 that will set forth the general 
requirement that all state member banks file consolidated reports of 
condition and income in accordance with the instructions for these 
reports.
    Question 7: Is the proposed extension of the reduced reporting 
requirement to

[[Page 58440]]

include uninsured state member banks that meet the same eligibility 
criteria appropriate? Would any of the proposed exclusionary criteria 
for covered depository institutions be problematic for uninsured state 
member banks?

B. FDIC

    The FDIC proposes to amend Part 304 of its Rules and Regulations, 
by restructuring the regulation and creating a ``Subpart A'' and 
``Subpart B.'' In Subpart A, the FDIC would put the current text of 
Part 304, with limited technical, non-substantive changes. The 
technical, non-substantive changes include: (1) Updating the address 
and contact information in section 304.2; (2) clarifying that sections 
304.3(a) and (b) apply to insured depository institutions; (3) updating 
references in section 304.3(a) to the various Call Reports to include 
the recently implemented FFIEC 051 Call Report; and (4) updating the 
references to FDIC divisions to reflect changes in nomenclature. In 
Subpart B, the FDIC proposes to include the regulatory text 
implementing Section 205.
    The FDIC believes that the proposed approach to restructuring Part 
304 will incorporate the entirety of the new, substantive text of the 
proposed rule that implements Section 205 of the EGRRCPA with minimal 
effect to the current text. Thus, a state nonmember bank or state 
savings association that believes it qualifies as a covered depository 
institution would be able to make that determination based on the 
regulatory text contained in Subpart B.
    Question 8: Is the proposed restructuring of Part 304 helpful and 
clear for users to understand? Why or why not?

C. OCC

    Insured depository institutions identified in section 205 include 
insured Federal branches of foreign banks, as defined under section 
3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)). While 
these insured Federal branches are included in the statute, they 
currently file the FFIEC 002 report of condition. The FFIEC 002 is used 
by insured and uninsured state and Federal branches and agencies of 
foreign banks and contains a significant amount of information relating 
to the operations and foreign connections of these entities. As 
described above in the International Activities section, this 
additional information is necessary for the OCC to supervise insured 
Federal branches, and a reduced reporting option would not be 
appropriate given the nature of their activities. Therefore, the OCC's 
proposed rule would include a criterion excluding institutions that 
file the FFIEC 002 report of condition from being eligible for reduced 
reporting.
    In addition to insured depository institutions, which are 
specifically identified in section 205, the OCC also supervises a 
number of uninsured national banks, such as trust banks. The OCC has 
permitted some of these institutions to use the Call Report to submit 
financial data and to use the existing FFIEC 051 if they meet the 
current eligibility requirements for filing that Call Report. 
Therefore, the OCC's proposed rule would also extend the use of the 
reduced reporting requirement to uninsured national banks if they meet 
the criteria for covered depository institutions identified in the 
rule.
    Question 9: Is the proposed extension of the reduced reporting 
requirement to include uninsured national banks supervised by the OCC 
appropriate? Would any of the proposed exclusionary criteria for 
covered depository institutions be problematic for uninsured national 
banks supervised by the OCC?

VI. Regulatory Analyses

A. Paperwork Reduction Act

    Certain provisions of the proposed rule affect ``collections of 
information'' within the meaning of the Paperwork Reduction Act of 1995 
(PRA) (44 U.S.C. 3501-3521). In accordance with the requirements of the 
PRA, the agencies may not conduct or sponsor, and a respondent is not 
required to respond to, an information collection unless it displays a 
currently valid Office of Management and Budget (OMB) control number.
    The agencies reviewed the proposed rule, including the changes to 
the FFIEC 051 Call Report that are discussed in this PRA section, and 
determined that it would result in changes to certain reporting 
requirements that have been previously cleared by the OMB under various 
control numbers. The proposed rule would expand the eligibility to file 
the FFIEC 051 Call Report to certain institutions with $1 billion or 
more, but less than $5 billion, in total assets that meet other 
eligibility criteria. In addition to the expanded eligibility to file 
this report, the agencies also are proposing other revisions to the 
FFIEC 051 Call Report, as discussed under Current Actions below. These 
revisions to the FFIEC 051 Call Report are proposed to take effect as 
of the March 31, 2019, report date. The agencies are proposing to 
extend for three years, with revision, these information collections.
Current Actions
Overview
    First, as described above, the agencies are proposing to revise the 
criteria for determining whether an institution is eligible to file the 
FFIEC 051 Call Report to match the criteria in the proposed rule. While 
the proposed rule provides for reduced reporting on reports filed for 
the first and third calendar quarters, the agencies also propose to 
revise the eligibility criteria to extend to all eligible institutions 
with less than $5 billion in total assets that meet other criteria in 
the rule the option to file the FFIEC 051 Call Report for all four 
calendar quarters. Therefore, if an institution is eligible to file the 
FFIEC 051 Call Report for the first and third calendar quarters 
pursuant to the rule, the institution also could file the FFIEC 051 
Call Report for the second and fourth calendar quarters provided the 
institution continues to meet the non-asset-size criteria. The 
revisions to the filing eligibility would be made in the General 
Instructions section of the Call Report instructions and would include 
the increase in the asset-size threshold to less than $5 billion in 
total assets as well as the addition of a criterion to exclude 
institutions that are treated as large or highly complex institutions 
for deposit insurance assessment purposes. The Call Report instructions 
currently provide that, beginning with the first quarterly report date 
following the effective date of a business combination, a transaction 
between entities under common control, or a branch acquisition that is 
not a business combination involving an institution and one or more 
other depository institutions, the resulting institution, regardless of 
its size prior to the transaction, must file the FFIEC 041 Call Report 
if its consolidated total assets after the consummation of the 
transaction are $1 billion or more. The agencies are proposing to 
remove this provision from the instructions, but the resulting 
institution may be required to file the FFIEC 041 Call Report 
consistent with the reservation of authority in the rule. All of the 
proposed FFIEC 051 Call Report eligibility criteria, along with 
justifications, are provided above in section II.A. of the 
Supplementary Information section (``Covered Depository Institution''). 
Based on June 30, 2018, Call Report data, there were 547 institutions 
with $1 billion or more, but less than $5 billion in total assets that 
likely would meet the definition of ``covered depository institution'' 
in the proposed rule.
    Second, the agencies are proposing to revise the reporting 
frequency and

[[Page 58441]]

applicability of certain data items in the FFIEC 051 Call Report. 
Specifically, the agencies are proposing to reduce the reporting 
frequency of certain existing data items in the FFIEC 051 Call Report 
from quarterly to semiannual reporting. This proposal would reduce 
reporting in the first and third calendar quarters by 502 data items 
\37\ or a reduction of approximately 37 percent of the data items 
included in the June 30, 2018, FFIEC 051 Call Report.
---------------------------------------------------------------------------

    \37\ This number includes 69 data items collected on Schedule 
RC-T, Fiduciary and Related Services, that are only reported by 
certain institutions with fiduciary powers that have fiduciary 
activity to report.
---------------------------------------------------------------------------

    Third, for covered depository institutions with total assets of $1 
billion or more, but less than $5 billion, the agencies are proposing 
to add to the FFIEC 051 Call Report certain data items that these 
institutions currently report on the FFIEC 041 Call Report, but 
generally with reduced reporting frequency. The agencies are proposing 
to add these items to meet the agencies' data needs and assist the 
agencies in fulfilling their missions of ensuring the safety and 
soundness of depository institutions and the financial system, as well 
as the protection of consumer financial rights and providing deposit 
insurance.
Changes to the Frequency of Data Collection in the FFIEC 051 Call 
Report
    The agencies are proposing, for the reasons explained below, to 
reduce the frequency of the following items on the FFIEC 051 Call 
Report from quarterly to semiannual (i.e., these items would be 
reported in the June 30 and December 31 Call Reports only):
     Schedule RI, Income Statement, Memorandum item 14. 
Institutions currently report the amount of other-than-temporary 
impairment losses on certain debt securities that are recognized 
through earnings in this Memorandum item. The agencies do not believe 
it is necessary for institutions eligible to file the FFIEC 051 Call 
Report to continue to provide this amount on a quarterly basis, as most 
of these institutions are not currently reporting losses in this item 
given current economic conditions. The agencies note that changes in 
the accounting for credit losses will eliminate the need for this item 
for an ever increasing percentage of institutions through year-end 
2022. In the interim, the agencies can review other-than-temporary 
impairment information for the first and third calendar quarters, as 
necessary, as part of on-site examinations or through other periodic 
monitoring.
     Schedule RC-C, Part I, Loans and Leases, Memorandum items 
1.a through 1.f, and Schedule RC-N, Past Due and Nonaccrual Loans, 
Leases, and Other Assets, Memorandum items 1.a through 1.f. 
Institutions currently report breakdowns of troubled debt 
restructurings by loan category, separately for those restructurings in 
compliance with their modified terms in Schedule RC-C and those 
restructurings that are past due 30 days or more or in nonaccrual 
status in Schedule RC-N. Institutions would still be required to report 
the totals for their troubled debt restructurings in Schedule RC-C, 
Part I, Memorandum item 1.g, and Schedule RC-N, Memorandum item 1.g, on 
a quarterly basis. The agencies do not believe it is necessary for 
institutions eligible to file the FFIEC 051 Call Report to continue to 
provide the breakdowns of troubled debt restructurings on a quarterly 
basis. The agencies can review information on troubled debt 
restructurings by loan category for the first and third quarters as 
part of on-site examinations or through other periodic monitoring, as 
necessary.
     Schedule RC-E, Deposit Liabilities, Memorandum item 1.a. 
Institutions currently report the total amount of Individual Retirement 
Account and Keogh plan deposits in this Memorandum item. The agencies 
do not believe it is necessary for institutions eligible to file the 
FFIEC 051 Call Report to continue to provide these amounts on a 
quarterly basis as this item generally does not fluctuate significantly 
between quarters for most eligible institutions. The agencies can 
review information on these deposits for the first and third quarters 
as part of on-site examinations or through other periodic monitoring, 
as necessary.
     Schedule RC-E, Memorandum item 5. Institutions currently 
report whether they offer consumer deposit products in this Memorandum 
item. The agencies do not believe it is necessary for institutions 
eligible to file the FFIEC 051 Call Report to continue to provide this 
information on a quarterly basis, as this item does not change 
frequently for most eligible institutions.
     Schedule RC-M, Memoranda, items 8.a through 8.c. In these 
items, institutions currently report their primary internet website 
address, addresses for other websites used to solicit deposits, and 
alternate trade names used by the institutions. The agencies do not 
believe it is necessary for institutions eligible to file the FFIEC 051 
Call Report to continue to provide this information on a quarterly 
basis as these items do not change frequently for most eligible 
institutions.
     Schedule RC-R, Part II, Regulatory Capital Risk-Weighted 
Assets, items 1 through 25, columns A through S. In these items, 
institutions currently report detailed information about the risk-
weighting of various types of assets and other exposures under the 
agencies' regulatory capital rules. Institutions still would need to 
calculate risk-weighted assets, maintain appropriate documentation for 
this calculation, and report items 26 through 31 of Part II, if 
applicable, on a quarterly basis. The agencies do not believe it is 
necessary for institutions eligible to file the FFIEC 051 Call Report 
to continue to provide the details of their risk-weighting allocations 
and calculations in Schedule RC-R, Part II, on a quarterly basis as the 
agencies can adequately review regulatory capital calculations for the 
first and third calendar quarters as part of on-site examinations or 
through other types of periodic monitoring, as necessary.
     Schedule RC-R, Part II, Memorandum items 1 through 3, 
including all subitems and columns. Institutions currently report 
detailed information in these items about derivative exposures that are 
elements of the risk-weighting process for these exposures. The 
agencies do not believe it is necessary for institutions eligible to 
file the FFIEC 051 Call Report to continue to report these amounts on a 
quarterly basis. Generally, institutions eligible to file the FFIEC 051 
Call Report do not have a significant amount of derivatives contracts, 
and the agencies can review information about institutions' risk-
weighting calculations for derivative exposures for the first and third 
calendar quarters, as necessary, as part of on-site examinations or 
through other periodic monitoring.
     Schedule RC-T, Fiduciary and Related Services, items 4 
through 13, columns A through D; items 14 through 22; and Memorandum 
items 3.a through 3.h, for institutions with total fiduciary assets 
greater than $250 million but less than or equal to $1 billion, and 
gross fiduciary and related services income less than or equal to 10 
percent of total revenue.\38\ Items 4 through 13 collect breakdowns for 
managed and non-managed accounts of the assets and number of accounts 
by type of fiduciary account. Fiduciary and related services income by 
type of fiduciary account is reported in items 14 and 22. Memorandum 
item 3 is used for reporting on the number and market

[[Page 58442]]

value of collective investment funds. Currently, institutions with 
total fiduciary assets greater than $250 million or with fiduciary 
income greater than 10 percent of total revenue must report these items 
on a quarterly basis. The proposed change would reduce the reporting of 
these items to semiannual for institutions with total fiduciary assets 
greater than $250 million but less than or equal to $1 billion and with 
fiduciary income less than or equal to 10 percent of total revenue. 
Institutions with total fiduciary assets less than or equal to $250 
million that do not meet the fiduciary income test already have reduced 
reporting for these items (either through an exemption or annual 
reporting). The agencies do not believe it is necessary for 
institutions eligible to file the FFIEC 051 Call Report with total 
fiduciary assets greater than $250 million but less than or equal to $1 
billion that do not meet the fiduciary income test to continue to 
provide managed and non-managed account data and collective investment 
fund information on a quarterly basis, as these items generally do not 
fluctuate significantly between quarters for institutions with 
fiduciary assets in this size range. In addition, when quarter-to-
quarter and year-over-year comparisons of an institution's year-to-date 
income from fiduciary activities, as reported in the Call Report income 
statement, raise supervisory concerns, the agencies can review 
information on the composition of fiduciary income for the first and 
third calendar quarters as part of on-site examinations or through 
other periodic monitoring.
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    \38\ Total fiduciary assets are measured as of the preceding 
December 31. Gross fiduciary and related services income is measured 
as a percentage of revenue (net interest income plus noninterest 
income) for the preceding calendar year.
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    Detail for each affected data item described above is shown in 
Appendix A.
Addition of Data Items to the FFIEC 051 Call Report for Institutions 
With Total Assets of $1 Billion or More
    The agencies are proposing to add certain data items to the FFIEC 
051 Call Report that would apply only to covered depository 
institutions with total assets of $1 billion or more. These items are 
currently reported by institutions with total assets of $1 billion or 
more that file the FFIEC 031 or FFIEC 041 Call Report, but they are not 
required to be completed by institutions with less than $1 billion in 
total assets that file the FFIEC 031, FFIEC 041, or FFIEC 051 Call 
Reports. Therefore, the additional data items would not represent new 
data items for covered depository institutions with total assets of $1 
billion or more, but rather are items carried over from the FFIEC 041 
version of the Call Report, generally using the same definitions and 
calculations and with reduced reporting frequency.
     Schedule RI, Memorandum items 15.a. through 15.d. These 
items provide data on the three key categories of service charges on 
certain deposit accounts: Overdraft-related service charges on consumer 
accounts, monthly maintenance charges on consumer accounts, and 
consumer ATM fees. The agencies and the Bureau of Consumer Financial 
Protection (Bureau) propose to collect these items on an annual 
reporting frequency as they provide the only comprehensive data source 
from which supervisors and policymakers can estimate or evaluate the 
composition of consumer deposit account-related fees and how they 
affect consumers and a depository institution's earnings stability. The 
addition of these items to the Call Report in 2015 has supported the 
agencies and the Bureau in monitoring these types of transactional 
costs incurred by consumers. The data specific to overdraft-related 
fees is particularly pertinent for supervisors and policymakers because 
they compose the majority of consumer deposit service charges (and for 
many institutions, of total deposit service charges). Continuing to 
collect these data on an annual basis from covered depository 
institutions with $1 billion or more in total assets will support the 
agencies and the Bureau in monitoring these activities and informing 
any potential future rulemaking. The agencies are proposing to add 
these items to the FFIEC 051 on an annual basis (December 31) for 
covered depository institutions with total assets of $1 billion or more 
that respond affirmatively to the screening question (Schedule RC-E, 
Memorandum item 5, regarding whether an institution offers a consumer 
deposit account product), while institutions with total assets less 
than $1 billion will not need to report these items regardless of their 
response to the screening question. Institutions with total assets 
between $1 billion and less than $5 billion that file the FFIEC 041 
Call Report currently report this information quarterly, so the 
proposed annual reporting would represent a frequency reduction for 
institutions filing the FFIEC 051 Call Report, while still meeting the 
agencies' need for this information.
     Schedule RI-C, Disaggregated Data on the Allowance for 
Loan and Lease Losses (ALLL). The agencies are proposing to add a 
condensed version of the existing FFIEC 041 Schedule RI-C to the FFIEC 
051 Call Report and reduce the reporting frequency of this condensed 
schedule from quarterly to semiannual (i.e., reported in the June 30 
and December 31 Call Reports only). The existing six columns in which 
institutions report the ``recorded investment'' and ``related 
allowance'' by loan category and allowance measurement method in 
Schedule RI-C in the FFIEC 041 Call Report would be combined into two 
columns in the FFIEC 051 Call Report, one for total recorded investment 
by loan category (sum of existing Columns A, C, and E) and the other 
for the total related allowance by loan category (sum of existing 
Columns B, D, and F) and any unallocated allowance. Consistent with the 
agencies' proposed revisions to the Call Report to address the changes 
in the accounting for credit losses resulting from the Financial 
Accounting Standards Board's Accounting Standards Update 2016-13,\39\ 
effective for the June 30, 2021, report date, text referencing 
``recorded investment'' and ``allowance for loan and lease losses'' in 
the condensed version of the FFIEC 041 Schedule RI-C that would be 
added to the FFIEC 051 reporting form would be changed to ``amortized 
cost'' and ``allowance for credit losses'' (ACL), respectively.\40\ 
From June 30, 2019, through December 31, 2020, the condensed allowance-
related information on the FFIEC 051 Call Report and the related 
instructions would include guidance stating that institutions that have 
adopted ASU 2016-13 should report the amortized cost and related ACL by 
loan category (and any unallocated ACL). For the transition period from 
June 30, 2021, through December 31, 2022, the reporting form and 
instructions for this condensed allowance-related information would be 
updated to include guidance stating that institutions that have not 
adopted ASU 2016-13 should report the ``recorded investment'' and the 
``allowance for loan and lease losses,'' as applicable, in these items. 
In addition, consistent with the proposed revisions to address the 
changes in accounting for credit losses, the agencies also propose 
adding data items for institutions to report the disaggregated 
allowance balances for each category of held-to-maturity (HTM) 
securities to the FFIEC 051. The agencies believe the condensed 
semiannual information on the composition of ALLL (allowance for credit 
losses after adoption of ASU 2016-13) in relation to the total

[[Page 58443]]

recorded investment (amortized cost after adoption of ASU 2016-13) for 
each loan category, and disaggregated information on HTM securities 
allowances, is necessary to adequately supervise covered depository 
institutions with total assets of $1 billion or more but less than $5 
billion. The information collected in Schedule RI-C as it is proposed 
to be included in the FFIEC 051 Call Report will support the agencies' 
analyses of the allowance and credit risk management. The data on 
allowance allocations by loan category, when reviewed in conjunction 
with the past due and nonaccrual data reported by loan category in 
Schedule RC-N, which will continue to be reported on a quarterly basis, 
assist the agencies in assessing an institution's credit risk exposures 
and evaluating the appropriateness of the overall level of its ALLL and 
its allocations by loan category. If changes in the quarterly past due 
and nonaccrual data by loan category at individual institutions in 
quarters when the disaggregated allowance data would not be reported in 
the FFIEC 051 Call Report raise questions about the composition of the 
allowance, supervisory follow-up can be undertaken on a case-by-case 
basis. The agencies note that many institutions with $1 billion or more 
but less than $5 billion in total assets do not publicly release 
quarterly financial statements, which makes the Call Report data the 
only information regularly available to the agencies on the composition 
of the allowance. By providing this detail in the FFIEC 051 Call 
Report, which supports the identification of changes in the ALLL over 
time, examiners can better perform off-site monitoring of activity 
within the ALLL in periods between examinations and when planning for 
examinations.
---------------------------------------------------------------------------

    \39\ See 83 FR 49160 (September 28, 2018).
    \40\ The amortized cost amounts to be reported would exclude any 
accrued interest receivable that is reported in ``Other assets'' on 
the Call Report balance sheet.
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     Schedule RC-E, Memorandum items 6 and 7, including all 
subitems. Institutions report disaggregated data on balances in 
consumer and non-consumer deposit accounts in these items. These items 
are critical to the agencies' and the Bureau's consumer deposit product 
monitoring and rulemaking mandates for several reasons. As noted in the 
agencies' 2013 notice \41\ proposing the addition of these items to the 
Call Report, surveys indicate that over 90 percent of U.S. households 
maintain at least one deposit account. However, there are no other 
reliable sources from which to calculate the amount of funds held in 
consumer accounts. The data now reported in these items on the Call 
Report significantly enhances the ability of the agencies and the 
Bureau to monitor how different tiers of banks serve consumers and, 
specifically, consumer use of deposit accounts as transactional, 
savings, and investment vehicles. These data also permit the agencies 
to conduct improved assessments of institutional liquidity risk and 
significantly enhance the agencies' ability to assess institutional 
funding stability. The agencies are proposing to add these items to the 
FFIEC 051 on an annual basis (December 31) for institutions with total 
assets of $1 billion or more but less than $5 billion that respond 
affirmatively to the screening question (Schedule RC-E, Memorandum item 
5, regarding whether an institution offers a consumer deposit account 
product), while banks with total assets less than $1 billion will not 
need to report these items regardless of their response to the 
screening question. Institutions with total assets of $1 billion or 
more but less than $5 billion that file the FFIEC 041 currently report 
this information quarterly, so the proposed annual reporting would 
represent a frequency reduction for institutions filing the FFIEC 051, 
while still meeting the agencies' need for this information.
---------------------------------------------------------------------------

    \41\ 78 FR 12141 (February 21, 2013).
---------------------------------------------------------------------------

     Schedule RC-O, Other Data for Deposit Insurance and FICO 
Assessments, Memorandum item 2, ``Estimated amount of uninsured 
deposits, including related interest accrued and unpaid.'' The agencies 
are proposing to add this data item on a quarterly basis for 
institutions with total assets of $1 billion or more but less than $5 
billion. The FDIC uses this data item for the calculation of estimated 
insured deposits, which is the denominator of the Deposit Insurance 
Fund (DIF) reserve ratio. (The numerator is the balance of the DIF.) 
The DIF reserve ratio is a key measure in assessing the adequacy and 
viability of the fund and is a driving force behind setting deposit 
insurance assessment rate schedules. For example, the FDIC evaluates 
whether assessment rates are likely to be sufficient to meet statutory 
requirements related to the minimum reserve ratio.\42\ The FDIC also 
has established a long-term DIF management plan that adjusts assessment 
rate schedules as the reserve ratio reaches certain levels.\43\ Given 
that assessment regulations depend on the DIF reserve ratio, it is 
important that the best information be used in estimating insured 
deposits. This item is necessary for a more accurate calculation of the 
DIF reserve ratio and to implement related statutory requirements. This 
information is also important for safety and soundness purposes. 
Uninsured deposit data are used to monitor liquidity in a stress event. 
The higher the percentage of uninsured deposits to available liquidity 
sources, the greater the liquidity risk to an institution as uninsured 
depositors are more likely to quickly move funds at risk as a result of 
negative publicity or other adverse information about the institution.
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    \42\ See e.g., 12 U.S.C. 1817 note. Generally, the FDIC shall 
take such steps as may be necessary for the reserve ratio of the DIF 
to reach 1.35 percent of estimated insured deposits by September 30, 
2020.
    \43\ See 12 CFR 327.10.
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    Detail for each affected data item described above is shown in 
Appendix B.
    The revisions to the FFIEC 051 Call Report described above are 
proposed to take effect as of the March 31, 2019, report date. The less 
than $5 billion asset-size test for determining eligibility to file the 
FFIEC 051 Call Report beginning March 31, 2019, would be based on the 
total assets reported on an institution's June 30, 2018, Call Report. 
An institution eligible to file the FFIEC 051 Call Report also has the 
option to file the FFIEC 041 Call Report. For an institution with less 
than $5 billion in total assets that qualifies to use the FFIEC 051 
Call Report for the first time as a result of the agencies' proposal to 
increase the asset reporting threshold for the FFIEC 051 Call Report 
from less than $1 billion to less than $5 billion, and that desires to 
use that report form but is unable to do so for the March 31, 2019, 
Call Report date, the institution may begin reporting on the FFIEC 051 
Call Report as of the June 30, 2019, report date or in a subsequent 
calendar quarter of 2019. Alternatively, the institution could wait 
until March 31, 2020, to begin reporting on the FFIEC 051 Call Report, 
assuming it meets the asset-size threshold for eligibility as of June 
30, 2019, and meets the non-asset-size criteria as of March 31, 2020. 
Beginning in 2020, an institution should file whichever version of the 
Call Report it was both eligible and chose to file in the first quarter 
of that year for the remainder of that year if it continues to meet the 
non-asset-size criteria.
Proposed Revision, With Extension, of the Following Information 
Collections
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: FFIEC 051 (for eligible small institutions).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    Type of Review: Revision and extension of currently approved 
collections.

[[Page 58444]]

Timing
    The proposed changes in this notice would be effective beginning 
with the March 31, 2019, Call Report.
    OCC:
    OMB Control No.: 1557-0081.
    Estimated Number of Respondents: 876 national banks and federal 
savings associations.
    Estimated Average Burden per Response: 38.29 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 134,168 burden hours to file.

    Board:
    OMB Control No.: 7100-0036.
    Estimated Number of Respondents: 563 state member banks.
    Estimated Average Burden per Response: 41.75 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 94,021 burden hours to file.

    FDIC:
    OMB Control No.: 3064-0052.
    Estimated Number of Respondents: 2,685 insured state nonmember 
banks and state savings associations.
    Estimated Average Burden per Response: 39.60 burden hours per 
quarter to file.
    Estimated Total Annual Burden: 425,304 burden hours to file.
    When the estimates are calculated across the agencies considering 
all expected filers of the FFIEC 051 Call Report under this proposal, 
the estimated average burden hours per calendar quarter for this report 
are 39.95. The burden hours for current FFIEC 051 Call Report filers 
are 39.39. The proposed revisions to the FFIEC 051 Call Report in this 
notice would represent a reduction in estimated average burden hours 
per quarter of 1.18 hours to 38.21 hours for the current FFIEC 051 Call 
Report filers. For newly eligible filers, the average burden hours 
would decrease from approximately 64.49 hours to 52.31 hours, a 
reduction of 12.18 hours per quarter. The estimated burden 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).
Request for Comments
    Public comment is requested on all aspects of this joint notice. 
Comment is specifically invited on:
    a. Whether institutions would find the proposal to reduce the 
reporting frequency of the risk-weighting data for the various types of 
assets and other exposures that are reported in Schedule RC-R, Part II, 
items 1 through 25, columns A through S, to be beneficial in terms of 
reducing some of the reporting burden associated with the Call Report 
even though institutions would still need to calculate, maintain 
appropriate documentation for, and report the total amount of their 
risk-weighted assets in Schedule RC-R, Part II. How would semiannual 
reporting of these risk-weighting data in Schedule RC-R, Part II affect 
an institution's ability to determine its compliance each calendar 
quarter with the prompt corrective action requirements in 12 CFR part 6 
(OCC); 12 CFR part 208 (Board); 12 CFR 324, subpart H (FDIC)?
    b. Whether the data items that the agencies propose for reduced 
reporting for covered depository institutions are appropriate. Why or 
why not?
    c. The agencies are proposing to discontinue the treatment in the 
current FFIEC 051 Call Report instructions for institutions with less 
than $1 billion in total assets that immediately disqualifies the 
institution from filing the FFIEC 051 Call Report if it exceeds the 
asset-size criterion due to a merger or acquisition. Is this 
appropriate and why?
    Comments also are invited on:
    d. Whether the collection of information is necessary for the 
proper performance of the agencies' functions, including whether the 
information has practical utility;
    e. The accuracy or the estimate of the burden of the information 
collections, including the validity of the methodology and assumptions 
used;
    f. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    g. Ways to minimize the burden of the information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    h. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

B. Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act \44\ (RFA) requires an agency to 
either provide an initial regulatory flexibility analysis with a 
proposed rule for which general notice of proposed rulemaking is 
required or to certify that the proposed rule will not have a 
significant economic impact on a substantial number of small entities. 
The U.S. Small Business Administration (SBA) establishes size standards 
that define which entities are small businesses for purposes of the 
RFA.\45\ Under regulations issued by the SBA, the size standard to be 
considered a small business for banking entities subject to the 
proposed rule is $550 million or less in consolidated assets.\46\
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    \44\ 5 U.S.C. 601 et seq.
    \45\ U.S. SBA, Table of Small Business Size Standards Matched to 
North American Industry Classification System Codes, available at 
https://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf.
    \46\ See 13 CFR 121.201.
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    OCC: The RFA requires an agency, in connection with a proposed 
rule, to prepare an Initial Regulatory Flexibility Analysis describing 
the impact of the rule on small entities (defined by the SBA for 
purposes of the RFA to include commercial banks and savings 
institutions with total assets of $550 million or less and trust 
companies with total revenue of $38.5 million or less) or to certify 
that the proposed rule would not have a significant economic impact on 
a substantial number of small entities. As of December 31, 2017, the 
OCC supervised 886 small entities. The rule would expand eligibility to 
file the FFIEC 051 version of the Call Report to institutions with 
total assets of between $1 billion and less than $5 billion. None of 
these newly eligible institutions would be considered small entities as 
defined by the SBA. Therefore, the OCC certifies that the proposed rule 
would not have a significant economic impact on a substantial number of 
OCC-supervised small entities.
    Board: In accordance with section 603(a) of the RFA, the Board is 
publishing an initial regulatory flexibility analysis for the proposed 
rule. The RFA requires an agency to prepare an initial regulatory 
flexibility analysis, which must contain (1) a description of the 
reasons why action by the agency is being considered; (2) a succinct 
statement of the objectives of, and legal basis for, the proposed rule; 
(3) a description of and, where feasible, an estimate of the number of 
small entities to which the proposed rule will apply; (4) a description 
of the projected reporting, recordkeeping and other compliance 
requirements of the proposed rule; (5) an identification, to the extent 
practicable, of all relevant Federal rules which may duplicate, overlap 
or conflict with the proposed rule; and (6) a description of 
significant alternatives to the proposed rule which accomplish its 
stated objectives.\47\
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    \47\ 5 U.S.C. 603.
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    The Board has considered the potential impact of the proposed rule 
on small entities in accordance with the RFA. Based on its analysis and 
for the

[[Page 58445]]

reasons stated below, the Board believes that this proposed rule will 
not have a significant economic impact on a substantial number of small 
entities. Nevertheless, the Board is publishing and inviting comment on 
this initial regulatory flexibility analysis. A final regulatory 
flexibility analysis will be conducted after comments received during 
the public comment period have been considered.
1. Reasons for the Proposal
    As discussed in the Supplementary Information, the agencies are 
proposing to implement section 205 of EGRRCPA, which requires the 
agencies to allow for a reduced reporting requirement for a ``covered 
depository institution'' when an institution files the first and third 
Call Reports for a year. The proposal would define ``covered depository 
institution'' and establish the reduced reporting permissible for such 
institutions in the Call Report for the first and third calendar 
quarters of a year. In connection with the implementation of reduced 
reporting mandated by section 205, the Board is proposing to set forth 
the general requirement that all state member banks must file 
consolidated reports of condition pursuant to its statutory authority 
under section 9 of the FRA and section 7(a)(3) of the FDIA.
2. Statement of Objectives and Legal Basis
    As discussed above, the agencies' objectives in proposing this rule 
are to reduce the reporting burden for covered depository institutions 
by allowing them to file the FFIEC 051 Call Report in the first and 
third quarters of a calendar year. The Board has explicit authority 
under section 7 of the FDI Act, 12 U.S.C. 1817(a)(3) and (12), and 
section 9 of the Federal Reserve Act, 12 U.S.C. 324, to establish 
reporting requirements and eligibility criteria to file a reduced 
report of condition for state member banks.
3. Description of Small Entities to Which the Regulation Applies
    The Board's proposal would apply to state member banks. Under 
regulations issued by the SBA, a small entity includes a state member 
bank with total assets of $550 million or less. As of June 30, 2018, 
there were approximately 533 state member banks that qualified as small 
entities. The requirement set forth in section 208.122 of the Board's 
proposed rule requiring state member banks to file reports of condition 
would apply to all state member banks, regardless of size. However, 
proposed section 208.122 does not establish a new requirement, but only 
implements in Board regulation a statutory requirement to which state 
member banks were already subject.
    Section 208.123 of the Board's proposed rule would allow state 
member banks that qualify as covered depository institutions to file 
reduced reporting in first and third calendar quarters of the year, 
which would apply to approximately 533 state member banks that qualify 
as small entities. However, proposed section 208.123 would allow but 
not require these small state member banks to file reduced reporting. 
Accordingly, the proposed rule would not have a significant economic 
impact on a substantial number of small entities.
4. Projected Reporting, Recordkeeping, and Other Compliance 
Requirements
    The proposed rule would not impose any new reporting, 
recordkeeping, or other compliance requirements on small state member 
banks. First, state member banks are already required to file reports 
of condition each quarter of the calendar year in accordance with the 
instructions of such reports. Second, the proposed rule would allow 
small state member banks that qualify as covered depository 
institutions to reduce their reporting, recordkeeping, and compliance 
burden by filing the FFIEC 051 Call Report, the shortest version of the 
Call Report, with further reduced reporting in the first and third 
calendar quarters. As a result, the Board expects that the proposed 
rule will reduce the reporting and associated recordkeeping and 
compliance costs for the majority of small state member banks.
5. Identification of Duplicative, Overlapping, or Conflicting Federal 
Regulations
    The Board has not identified any likely duplication, overlap and/or 
potential conflict between the proposed rule and any Federal rule.
6. Discussion of Significant Alternatives
    The Board believes the proposed rule will not have a significant 
economic impact on small state member banks and, as discussed in 
Supplementary Information IV, does not believe there are any 
significant alternatives to the proposal that would reduce the impact 
of the proposal.
    FDIC: The RFA requires that, in connection with a notice of 
proposed rulemaking, an agency prepare and make available for public 
comment an initial regulatory flexibility analysis that describes the 
impact of the proposed rule on small entities.\48\ However, a 
regulatory flexibility analysis is not required if the agency certifies 
that the rule will not have a significant economic impact on a 
substantial number of small entities, and publishes its certification 
and a short explanatory statement in the Federal Register together with 
the rule. The SBA has defined ``small entities'' to include banking 
organizations with total assets of less than or equal to $550 
million.\49\
---------------------------------------------------------------------------

    \48\ 5 U.S.C. 601 et seq.
    \49\ The SBA defines a small banking organization as having $550 
million or less in assets, where ``a financial institution's assets 
are determined by averaging the assets reported on its four 
quarterly financial statements for the preceding year.'' See 13 CFR 
121.201 (as amended, effective December 2, 2014). ``SBA counts the 
receipts, employees, or other measure of size of the concern whose 
size is at issue and all of its domestic and foreign affiliates.'' 
See 13 CFR 121.103. Following these regulations, the FDIC uses a 
covered entity's affiliated and acquired assets, averaged over the 
preceding four quarters, to determine whether the covered entity is 
``small'' for the purposes of RFA.
---------------------------------------------------------------------------

    As of June 30, 2018 Call Report data, the FDIC supervises 3,575 
insured depository institutions, of which 2,763 are considered small 
entities for the purposes of RFA. For the reasons described below, the 
FDIC certifies that the proposed rule will not have a significant 
economic impact on a substantial number of small entities.
    As the agencies discussed in the Supplementary Information section 
above, the proposed rule would implement section 205 of EGRRCPA by 
defining ``covered depository institution'' to, among other things, 
expand eligibility for filing the FFIEC 051 Call Report to insured 
depository institutions with $1 billion or more, but less than $5 
billion in total assets. Through a related PRA notice, the agencies are 
proposing to reduce the reporting frequency for more than 400 data 
items on the FFIEC 051 Call Report for the first and third reports of 
condition for a year, and to add certain data items to the FFIEC 051 
Call Report that would apply only to covered depository institutions 
with total assets of $1 billion or more. Out of the additional data 
items, only 1 would be required to be reported every quarter, while the 
remaining only would be required semiannually or annually (i.e., in the 
second and fourth quarters, or only the fourth quarter).
    The FDIC estimates that under the proposed definition of ``covered 
depository institution,'' 295 FDIC-supervised depository institutions 
that reported total assets of $1 billion or more, but less than $5 
billion, could be eligible to file the FFIEC 051 Call Report assuming 
they meet the other non-asset-

[[Page 58446]]

size criteria under the proposed rule. However, because this aspect of 
the rule only affects institutions with $1 billion or more, but less 
than $5 billion in total assets, it will not affect any small, FDIC-
supervised institutions.
    As the agencies discussed in the PRA section, the FDIC is proposing 
to reduce the reporting frequency of more than 400 data items on the 
FFIEC 051 Call Report for the first and third calendar quarters. These 
data items are currently collected every calendar quarter on the FFIEC 
051 Call Report. Every covered depository institution with less than $5 
billion in total assets that files the FFIEC 051 Call Report would 
experience a reduction in reporting for the first and third calendar 
quarters as a result of this proposal. The FDIC estimates that the 
proposed reduction in reporting frequency of more than 400 data items 
for covered depository institutions in the first and third calendar 
quarters would reduce the average quarterly burden hours by 1.18 hours 
per institution. For the 2,221 small, FDIC-supervised depository 
institutions that filed the FFIEC 051 Call Report for the June 30, 2018 
report date, this represents a total estimated burden reduction of 
2,621 hours per quarter.\50\ While the proposed reduced reporting could 
affect a substantial number of small, FDIC-supervised depository 
institutions, it would not result in a significant economic impact.
---------------------------------------------------------------------------

    \50\ 1.18 hours * 2,221 institutions.
---------------------------------------------------------------------------

    Based on the agencies' total hourly wage rate of $117 for Call 
Report preparation, and the reduction in reporting hours resulting from 
the proposed reduced reporting frequency of certain items in the FFIEC 
051 Call Report discussed in the PRA section, it is estimated that 
annual reporting costs could be $1,226,628 less for small, FDIC-
supervised insured depository institutions that file the FFIEC 051 Call 
Report, or 0.011 percent of total annualized non-interest expenses.\51\
---------------------------------------------------------------------------

    \51\ $117 per hour * 2,621 hours per quarter * 4 quarters per 
year. FDIC Call Report Data June 30th, 2018.
---------------------------------------------------------------------------

    The proposed rule could pose some additional regulatory costs for 
small, FDIC-supervised depository institutions that file the FFIEC 051 
Call Report that are associated with changes to internal systems or 
processes. The FDIC anticipates that costs associated with either 
switching to file the FFIEC 051 Call Report, or reprogramming for 
reduced reporting in the first and third calendar quarters, would be 
one-time costs. However, these costs are difficult to estimate 
accurately with available information because they depend upon the 
individual characteristics of each insured depository institution, 
their recordkeeping and reporting systems, and the decisions of senior 
management.
    Based on the information above, the FDIC certifies that the 
proposed rule would not have a significant economic impact, although a 
substantial number of small entities would be affected.
    The FDIC invites comments on all aspects of the supporting 
information provided in this RFA section. In particular, would this 
rule have any significant effects on small entities that the FDIC has 
not identified?

C. Plain Language

    Section 722 of the Gramm-Leach-Bliley Act requires the Federal 
banking agencies to use plain language in all proposed and final rules 
published after January 1, 2000. The agencies have sought to present 
the proposed rule in a simple and straightforward manner, and invite 
comment on the use of plain language. For example:
     Have the agencies organized the material to suit your 
needs? If not, how could they present the rule more clearly?
     Are the requirements in the rule clearly stated? If not, 
how could the rule be more clearly stated?
     Do the regulations contain technical language or jargon 
that is not clear? If so, which language requires clarification?
     Would a different format (grouping and order of sections, 
use of headings, paragraphing) make the regulation easier to 
understand? If so, what changes would achieve that?
     Is this section format adequate? If not, which of the 
sections should be changed and how?
     What other changes can the agencies incorporate to make 
the regulation easier to understand?

D. Riegle Community Development and Regulatory Improvement Act of 1994

    The Riegle Community Development and Regulatory Improvement Act of 
1994 (RCDRIA) requires that each Federal banking agency, in determining 
the effective date and administrative compliance requirements for new 
regulations that impose additional reporting, disclosure, or other 
requirements on IDIs, consider, consistent with principles of safety 
and soundness and the public interest, any administrative burdens that 
such regulations would place on depository institutions, including 
small depository institutions, and customers of depository 
institutions, as well as the benefits of such regulations. In addition, 
new regulations and amendments to regulations that impose additional 
reporting, disclosures, or other new requirements on IDIs generally 
must take effect on the first day of a calendar quarter that begins on 
or after the date on which the regulations are published in final 
form.\52\
---------------------------------------------------------------------------

    \52\ 12 U.S.C. 4802.
---------------------------------------------------------------------------

    Because the proposal would not impose additional reporting, 
disclosure, or other requirements on IDIs, section 302 of the RCDRIA 
therefore does not apply. Nevertheless, the requirements of RCDRIA will 
be considered as part of the overall rulemaking process. In addition, 
the agencies also invite any other comments that further will inform 
the agencies' consideration of RCDRIA.

E. OCC Unfunded Mandates Reform Act of 1995

    The OCC analyzed the proposed rule under the factors set forth in 
the Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under 
this analysis, the OCC considered whether the proposed rule includes a 
Federal mandate that may result in the expenditure by State, local, and 
Tribal governments, in the aggregate, or by the private sector, of $100 
million or more in any one year (adjusted for inflation). There are 123 
national banks and Federal savings associations with total assets 
between $1 billion and less than $5 billion that could be eligible for 
reduced reporting under the proposed rule. The OCC estimates that each 
of these institutions that switches to the FFIEC 051 could save 
approximately $6,000 per year. Savings may be less during the first 
year of implementation due to costs associated with updating systems 
and processes, but these costs are not expected to exceed the estimated 
savings. Therefore, the OCC has determined that this proposed rule 
would not result in expenditures by State, local, and Tribal 
governments, or the private sector, of $100 million or more in any one 
year. Accordingly, the OCC has not prepared a written statement to 
accompany this proposal.

Appendix A: Proposed Reductions in Frequency of Collection for the 
FFIEC 051

    The following data items are currently collected on the FFIEC 
051 quarterly. The data items are proposed to be collected 
semiannually in the June and December reports only.

[[Page 58447]]



------------------------------------------------------------------------
       Schedule              Item          Item name       MDRM No.(s)
------------------------------------------------------------------------
RI...................  M.14...........  Other-than-      RIADJ321.
                                         temporary
                                         impairment
                                         losses on held-
                                         to-maturity
                                         and available-
                                         for-sale debt
                                         securities
                                         recognized in
                                         earnings.
RC-C, Part I.........  M.1.a.(1)......  Loans            RCONK158.
                                         restructured
                                         in troubled
                                         debt
                                         restructurings
                                         (TDRs) that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: 1-4
                                         family
                                         residential
                                         construction
                                         loans.
RC-C, Part I.........  M.1.a.(2)......  Loans            RCONK159.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Other
                                         construction
                                         loans and all
                                         land
                                         development
                                         and other land
                                         loans.
RC-C, Part I.........  M.1.b..........  Loans            RCONF576.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Loans
                                         secured by 1-4
                                         family
                                         residential
                                         properties.
RC-C, Part I.........  M.1.c..........  Loans            RCONK160.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Secured
                                         by multifamily
                                         (5 or more)
                                         residential
                                         properties.
RC-C, Part I.........  M.1.d.(1)......  Loans            RCONK161.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Loans
                                         secured by
                                         owner-occupied
                                         nonfarm
                                         nonresidential
                                         properties.
RC-C, Part I.........  M.1.d.(2)......  Loans            RCONK162.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Loans
                                         secured by
                                         other nonfarm
                                         nonresidential
                                         properties.
RC-C, Part I.........  M.1.e..........  Loans            RCONK256.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms:
                                         Commercial and
                                         industrial
                                         loans.
RC-C, Part I.........  M.1.f..........  Loans            RCONK165.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: All
                                         other loans
                                         (include loans
                                         to individuals
                                         for household,
                                         family, and
                                         other personal
                                         expenditures).
RC-C, Part I.........  M.1.f.(1)......  Loans            RCONK166.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Loans
                                         secured by
                                         farmland.
RC-C, Part I.........  M.1.f.(4).(a)..  Loans            RCONK098.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Credit
                                         cards.
RC-C, Part I.........  M.1.f.(4).(b)..  Loans            RCONK203.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms:
                                         Automobile
                                         loans.
RC-C, Part I.........  M.1.f.(4).(c)..  Loans            RCONK204.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Other
                                         (includes
                                         revolving
                                         credit plans
                                         other than
                                         credit cards
                                         and other
                                         consumer
                                         loans).
RC-C, Part I.........  M.1.f.(5)......  Loans            RCONK168.
                                         restructured
                                         in TDRs that
                                         are in
                                         compliance
                                         with their
                                         modified
                                         terms: Loans
                                         to finance
                                         agricultural
                                         production and
                                         other loans to
                                         farmers
                                         included in
                                         Schedule RC-C,
                                         part I,
                                         Memorandum
                                         item 1.f,
                                         above.
RC-E.................  M.1.a..........  Total            RCON6835.
                                         Individual
                                         Retirement
                                         Accounts
                                         (IRAs) and
                                         Keogh Plan
                                         accounts.
RC-E.................  M.5............  Does your        RCONP752.
                                         institution
                                         offer one or
                                         more consumer
                                         deposit
                                         account
                                         products,
                                         i.e.,
                                         transaction
                                         account or
                                         nontransaction
                                         savings
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use?.

[[Page 58448]]

 
RC-M.................  8.a............  Uniform          TEXT4087.
                                         Resource
                                         Locator (URL)
                                         of the
                                         reporting
                                         institution's
                                         primary
                                         Internet Web
                                         site (home
                                         page), if any
                                         (Example:
                                         www.examplebank.com).
RC-M.................  8.b............  URLs of all      TE01N528,
                                         other public-    TE02N528,
                                         facing           TE03N528,
                                         Internet         TE04N528,
                                         websites that    TE05N528,
                                         the reporting    TE06N528,
                                         institution      TE07N528,
                                         uses to accept   TE08N528,
                                         or solicit       TE09N528,
                                         deposits from    TE10N528.
                                         the public, if
                                         any.
RC-M.................  8.c............  Trade names      TE01N529,
                                         other than the   TE02N529,
                                         reporting        TE03N529,
                                         institution's    TE04N529,
                                         legal title      TE05N529,
                                         used to          TE06N529.
                                         identify one
                                         or more of the
                                         institution's
                                         physical
                                         offices at
                                         which deposits
                                         are accepted
                                         or solicited
                                         from the
                                         public, if any.
RC-N.................  M.1.a.(1)......  Loans            RCONK105,
                                         restructured     RCONK106,
                                         in troubled      RCONK107.
                                         debt
                                         restructurings
                                         (TDRs)
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: 1-4
                                         family
                                         residential
                                         construction
                                         loans.
RC-N.................  M.1.a.(2)......  Loans            RCONK108,
                                         restructured     RCONK109,
                                         in TDRs          RCONK110.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Other
                                         construction
                                         loans and all
                                         land
                                         development
                                         and other land
                                         loans.
RC-N.................  M.1.b..........  Loans            RCONF661,
                                         restructured     RCONF662,
                                         in TDRs          RCONF663.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Loans
                                         secured by 1-4
                                         family
                                         residential
                                         properties.
RC-N.................  M.1.c..........  Loans            RCONK111,
                                         restructured     RCONK112,
                                         in TDRs          RCONK113.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Secured
                                         by multifamily
                                         (5 or more)
                                         residential
                                         properties.
RC-N.................  M.1.d.(1)......  Loans            RCONK114,
                                         restructured     RCONK115,
                                         in TDRs          RCONK116.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Loans
                                         secured by
                                         owner-occupied
                                         nonfarm
                                         nonresidential
                                         properties.
RC-N.................  M.1.d.(2)......  Loans            RCONK117,
                                         restructured     RCONK118,
                                         in TDRs          RCONK119.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Loans
                                         secured by
                                         other nonfarm
                                         nonresidential
                                         properties.
RC-N.................  M.1.e..........  Loans            RCONK257,
                                         restructured     RCONK258,
                                         in TDRs          RCONK259.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above:
                                         Commercial and
                                         industrial
                                         loans.
RC-N.................  M.1.f..........  Loans            RCONK126,
                                         restructured     RCONK127,
                                         in TDRs          RCONK128.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: All
                                         other loans
                                         (include loans
                                         to individuals
                                         for household,
                                         family, and
                                         other personal
                                         expenditures).
RC-N.................  M.1.f.(1)......  Loans            RCONK130,
                                         restructured     RCONK131,
                                         in TDRs          RCONK132.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Loans
                                         secured by
                                         farmland.
RC-N.................  M.1.f.(4)(a)...  Loans            RCONK274,
                                         restructured     RCONK275,
                                         in TDRs          RCONK276.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Credit
                                         cards.
RC-N.................  M.1.f.(4)(b)...  Loans            RCONK277,
                                         restructured     RCONK278,
                                         in TDRs          RCONK279.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above:
                                         Automobile
                                         loans.
RC-N.................  M.1.f.(4)(c)...  Loans            RCONK280,
                                         restructured     RCONK281,
                                         in TDRs          RCONK282.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Other
                                         (includes
                                         revolving
                                         credit plans
                                         other than
                                         credit cards
                                         and other
                                         consumer
                                         loans).

[[Page 58449]]

 
RC-N.................  M.1.f.(5)......  Loans            RCONK138,
                                         restructured     RCONK139,
                                         in TDRs          RCONK140.
                                         included in
                                         Schedule RC-N,
                                         items 1
                                         through 7,
                                         above: Loans
                                         to finance
                                         agricultural
                                         production and
                                         other loans to
                                         farmers.
RC-R, Part II........  1..............  Cash and         RCOND957,
                                         balances due     RCOND958,
                                         from             RCOND959,
                                         depository       RCOND960,
                                         institutions.    RCONS396,
                                                          RCONS397,
                                                          RCONS398.
RC-R, Part II........  2.a............  Held-to-         RCOND961,
                                         maturity         RCOND962,
                                         securities.      RCOND963,
                                                          RCOND964,
                                                          RCOND965,
                                                          RCONHJ74,
                                                          RCONHJ75,
                                                          RCONS399,
                                                          RCONS400.
RC-R, Part II........  2.b............  Available-for-   RCOND967,
                                         sale             RCOND968,
                                         securities.      RCOND969,
                                                          RCOND970,
                                                          RCONH271,
                                                          RCONH272,
                                                          RCONHJ76,
                                                          RCONHJ77,
                                                          RCONJA21,
                                                          RCONS402,
                                                          RCONS403,
                                                          RCONS405,
                                                          RCONS406.
RC-R, Part II........  3.a............  Federal funds    RCOND971,
                                         sold.            RCOND972,
                                                          RCOND973,
                                                          RCOND974,
                                                          RCONS410,
                                                          RCONS411.
RC-R, Part II........  3.b............  Securities       RCONH171,
                                         purchased        RCONH172.
                                         under
                                         agreements to
                                         resell.
RC-R, Part II........  4.a............  Loans and        RCONH173,
                                         leases held      RCONH273,
                                         for sale:        RCONH274,
                                         Residential      RCONS413,
                                         mortgage         RCONS414,
                                         exposures.       RCONS415,
                                                          RCONS416,
                                                          RCONS417.
RC-R, Part II........  4.b............  Loans and        RCONH174,
                                         leases held      RCONH175,
                                         for sale: High   RCONH176,
                                         volatility       RCONH177,
                                         commercial       RCONH275,
                                         real estate      RCONH276,
                                         exposures.       RCONS419,
                                                          RCONS420,
                                                          RCONS421.
RC-R, Part II........  4.c............  Loans and        RCONH277,
                                         leases held      RCONH278,
                                         for sale:        RCONHJ78,
                                         Exposures past   RCONHJ79,
                                         due 90 days or   RCONS423,
                                         more or on       RCONS424,
                                         nonaccrual.      RCONS425,
                                                          RCONS426,
                                                          RCONS427,
                                                          RCONS428,
                                                          RCONS429.
RC-R, Part II........  4.d............  Loans and        RCONH279,
                                         leases held      RCONH280,
                                         for sale: All    RCONHJ80,
                                         other            RCONHJ81,
                                         exposures.       RCONS431,
                                                          RCONS432,
                                                          RCONS433,
                                                          RCONS434,
                                                          RCONS435,
                                                          RCONS436,
                                                          RCONS437.
RC-R, Part II........  5.a............  Loans and        RCONH178,
                                         leases held      RCONH281,
                                         for              RCONH282,
                                         investment:      RCONS439,
                                         Residential      RCONS440,
                                         mortgage         RCONS441,
                                         exposures.       RCONS442,
                                                          RCONS443.
RC-R, Part II........  5.b............  Loans and        RCONH179,
                                         leases held      RCONH180,
                                         for              RCONH181,
                                         investment:      RCONH182,
                                         High             RCONH283,
                                         volatility       RCONH284,
                                         commercial       RCONS445,
                                         real estate      RCONS446,
                                         exposures.       RCONS447.
RC-R, Part II........  5.c............  Loans and        RCONH285,
                                         leases held      RCONH286,
                                         for              RCONHJ82,
                                         investment:      RCONHJ83,
                                         Exposures past   RCONS449,
                                         due 90 days or   RCONS450,
                                         more or on       RCONS451,
                                         nonaccrual.      RCONS452,
                                                          RCONS453,
                                                          RCONS454,
                                                          RCONS455.
RC-R, Part II........  5.d............  Loans and        RCONH287,
                                         leases held      RCONH288,
                                         for              RCONHJ84,
                                         investment:      RCONHJ85,
                                         All other        RCONS457,
                                         exposures.       RCONS458,
                                                          RCONS459,
                                                          RCONS460,
                                                          RCONS461,
                                                          RCONS462,
                                                          RCONS463.
RC-R, Part II........  6..............  LESS: Allowance  RCON3123
                                         for loan and     (column A),
                                         lease losses.    RCON3123
                                                          (column B).

[[Page 58450]]

 
RC-R, Part II........  7..............  Trading assets.  RCOND976,
                                                          RCOND977,
                                                          RCOND978,
                                                          RCOND979,
                                                          RCOND980,
                                                          RCONH186,
                                                          RCONH187,
                                                          RCONH290,
                                                          RCONH291,
                                                          RCONH292,
                                                          RCONHJ86,
                                                          RCONHJ87,
                                                          RCONS466,
                                                          RCONS467.
RC-R, Part II........  8..............  All other        RCOND981,
                                         assets.          RCOND982,
                                                          RCOND983,
                                                          RCOND984,
                                                          RCOND985,
                                                          RCONH185,
                                                          RCONH188,
                                                          RCONH294,
                                                          RCONH295,
                                                          RCONHJ88,
                                                          RCONHJ89,
                                                          RCONS469,
                                                          RCONS470,
                                                          RCONS471.
RC-R, Part II........  8.a............  Separate         RCONH296,
                                         account bank-    RCONH297.
                                         owned life
                                         insurance.
RC-R, Part II........  8.b............  Default fund     RCONH298,
                                         contributions    RCONH299.
                                         to central
                                         counterparties.
RC-R, Part II........  9.a............  On-balance       RCONS475,
                                         sheet            RCONS476,
                                         securitization   RCONS477,
                                         exposures:       RCONS478,
                                         Held-to-         RCONS479.
                                         maturity
                                         securities.
RC-R, Part II........  9.b............  On-balance       RCONS480,
                                         sheet            RCONS481,
                                         securitization   RCONS482,
                                         exposures:       RCONS483,
                                         Available-for-   RCONS484.
                                         sale
                                         securities.
RC-R, Part II........  9.c............  On-balance       RCONS485,
                                         sheet            RCONS486,
                                         securitization   RCONS487,
                                         exposures:       RCONS488,
                                         Trading assets.  RCONS489.
RC-R, Part II........  9.d............  On-balance       RCONS490,
                                         sheet            RCONS491,
                                         securitization   RCONS492,
                                         exposures: All   RCONS493,
                                         other on-        RCONS494.
                                         balance sheet
                                         securitization
                                         exposures.
RC-R, Part II........  10.............  Off-balance      RCONS495,
                                         sheet            RCONS496,
                                         securitization   RCONS497,
                                         exposures.       RCONS498,
                                                          RCONS499.
RC-R, Part II........  11.............  Total balance    RCON2170,
                                         sheet assets.    RCOND987,
                                                          RCOND988,
                                                          RCOND989,
                                                          RCOND990,
                                                          RCONH300,
                                                          RCONHJ90,
                                                          RCONHJ91,
                                                          RCONS500,
                                                          RCONS503,
                                                          RCONS505,
                                                          RCONS506,
                                                          RCONS507,
                                                          RCONS510.
RC-R, Part II........  12.............  Financial        RCOND991,
                                         standby          RCOND992,
                                         letters of       RCOND993,
                                         credit.          RCOND994,
                                                          RCOND995,
                                                          RCOND996,
                                                          RCONHJ92,
                                                          RCONHJ93,
                                                          RCONS511.
RC-R, Part II........  13.............  Performance      RCOND997,
                                         standby          RCOND998,
                                         letters of       RCOND999,
                                         credit and       RCONG603,
                                         transaction-     RCONG604,
                                         related          RCONG605,
                                         contingent       RCONS512.
                                         items.
RC-R, Part II........  14.............  Commercial and   RCONG606,
                                         similar          RCONG607,
                                         letters of       RCONG608,
                                         credit with an   RCONG609,
                                         original         RCONG610,
                                         maturity of      RCONG611,
                                         one year or      RCONHJ94,
                                         less.            RCONHJ95,
                                                          RCONS513.
RC-R, Part II........  15.............  Retained         RCONG612,
                                         recourse on      RCONG613,
                                         small business   RCONG614,
                                         obligations      RCONG615,
                                         sold with        RCONG616,
                                         recourse.        RCONG617,
                                                          RCONS514.
RC-R, Part II........  16.............  Repo-style       RCONH301,
                                         transactions.    RCONH302,
                                                          RCONS515,
                                                          RCONS516,
                                                          RCONS517,
                                                          RCONS518,
                                                          RCONS519,
                                                          RCONS520,
                                                          RCONS521,
                                                          RCONS522,
                                                          RCONS523.
RC-R, Part II........  17.............  All other off-   RCONG618,
                                         balance sheet    RCONG619,
                                         liabilities.     RCONG620,
                                                          RCONG621,
                                                          RCONG622,
                                                          RCONG623,
                                                          RCONS524.

[[Page 58451]]

 
RC-R, Part II........  18.a...........  Unused           RCONH303,
                                         commitments:     RCONH304,
                                         Original         RCONHJ96,
                                         maturity of      RCONHJ97,
                                         one year or      RCONS525,
                                         less.            RCONS526,
                                                          RCONS527,
                                                          RCONS528,
                                                          RCONS529,
                                                          RCONS530,
                                                          RCONS531.
RC-R, Part II........  18.b...........  Unused           RCONG624,
                                         commitments:     RCONG625,
                                         Original         RCONG626,
                                         maturity         RCONG627,
                                         exceeding one    RCONG628,
                                         year.            RCONG629,
                                                          RCONH307,
                                                          RCONH308,
                                                          RCONHJ98,
                                                          RCONHJ99,
                                                          RCONS539.
RC-R, Part II........  19.............  Unconditionally  RCONS540,
                                         cancelable       RCONS541.
                                         commitments.
RC-R, Part II........  20.............  Over-the-        RCONH309,
                                         counter          RCONH310,
                                         derivatives.     RCONHK00,
                                                          RCONHK01,
                                                          RCONS542,
                                                          RCONS543,
                                                          RCONS544,
                                                          RCONS545,
                                                          RCONS546,
                                                          RCONS547,
                                                          RCONS548.
RC-R, Part II........  21.............  Centrally        RCONS549,
                                         cleared          RCONS550,
                                         derivatives.     RCONS551,
                                                          RCONS552,
                                                          RCONS554,
                                                          RCONS555,
                                                          RCONS556,
                                                          RCONS557.
RC-R, Part II........  22.............  Unsettled        RCONH191,
                                         transactions     RCONH193,
                                         (failed          RCONH194,
                                         trades).         RCONH195,
                                                          RCONK196,
                                                          RCONH197,
                                                          RCONH198,
                                                          RCONH199,
                                                          RCONH200.
RC-R, Part II........  23.............  Total assets,    RCONG630,
                                         derivatives,     RCONG631,
                                         off-balance      RCONG632,
                                         sheet items,     RCONG633,
                                         and other        RCONS558,
                                         items subject    RCONS559,
                                         to risk          RCONS560,
                                         weighting by     RCONS561,
                                         risk-weight      RCONS563,
                                         category.        RCONS564,
                                                          RCONS565,
                                                          RCONS566,
                                                          RCONS567,
                                                          RCONS568.
RC-R, Part II........  25.............  Risk-weighted    RCONG634,
                                         assets by risk-  RCONG635,
                                         weight           RCONG636,
                                         category.        RCONG637,
                                                          RCONS569,
                                                          RCONS570,
                                                          RCONS571,
                                                          RCONS572,
                                                          RCONS574,
                                                          RCONS575,
                                                          RCONS576,
                                                          RCONS577,
                                                          RCONS578,
                                                          RCONS579.
RC-R, Part II........  M.1............  Current credit   RCONG642.
                                         exposure
                                         across all
                                         derivative
                                         contracts
                                         covered by the
                                         regulatory
                                         capital rules.
RC-R, Part II........  M.2.a..........  Notional         RCONS582,
                                         principal        RCONS583,
                                         amounts of       RCONS584.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:
                                         Interest rate.
RC-R, Part II........  M.2.b..........  Notional         RCONS585,
                                         principal        RCONS586,
                                         amounts of       RCONS587.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:
                                         Foreign
                                         exchange rate
                                         and gold.
RC-R, Part II........  M.2.c..........  Notional         RCONS588,
                                         principal        RCONS589,
                                         amounts of       RCONS590.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:
                                         Credit
                                         (investment
                                         grade
                                         reference
                                         asset).
RC-R, Part II........  M.2.d..........  Notional         RCONS591,
                                         principal        RCONS592,
                                         amounts of       RCONS593.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:
                                         Credit (non-
                                         investment
                                         grade
                                         reference
                                         asset).
RC-R, Part II........  M.2.e..........  Notional         RCONS594,
                                         principal        RCONS595,
                                         amounts of       RCONS596.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:
                                         Equity.
RC-R, Part II........  M.2.f..........  Notional         RCONS597,
                                         principal        RCONS598,
                                         amounts of       RCONS599.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:
                                         Precious
                                         metals (except
                                         gold).
RC-R, Part II........  M.2.g..........  Notional         RCONS600,
                                         principal        RCONS601,
                                         amounts of       RCONS602.
                                         over-the-
                                         counter
                                         derivative
                                         contracts:.
RC-R, Part II........  M.3.a..........  Notional         RCONS603,
                                         principal        RCONS604,
                                         amounts of       RCONS605.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Interest rate.

[[Page 58452]]

 
RC-R, Part II........  M.3.b..........  Notional         RCONS606,
                                         principal        RCONS607,
                                         amounts of       RCONS608.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Foreign
                                         exchange rate
                                         and gold.
RC-R, Part II........  M.3.c..........  Notional         RCONS609,
                                         principal        RCONS610,
                                         amounts of       RCONS611.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Credit
                                         (investment
                                         grade
                                         reference
                                         asset).
RC-R, Part II........  M.3.d..........  Notional         RCONS612,
                                         principal        RCONS613,
                                         amounts of       RCONS614.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Credit (non-
                                         investment
                                         grade
                                         reference
                                         asset).
RC-R, Part II........  M.3.e..........  Notional         RCONS615,
                                         principal        RCONS616,
                                         amounts of       RCONS617.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Equity.
RC-R, Part II........  M.3.f..........  Notional         RCONS618,
                                         principal        RCONS619,
                                         amounts of       RCONS620.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Precious
                                         metals (except
                                         gold).
RC-R, Part II........  M.3.g..........  Notional         RCONS621,
                                         principal        RCONS622,
                                         amounts of       RCONS623.
                                         centrally
                                         cleared
                                         derivative
                                         contracts:
                                         Other.
------------------------------------------------------------------------

    The following data items on Schedule RC-T are currently 
collected on the FFIEC 051 quarterly for institutions with total 
fiduciary assets greater than $250 million (as of the preceding 
December 31) or with gross fiduciary and related services income 
greater than 10 percent of revenue (net interest income plus 
noninterest income) for the preceding calendar year.
    The data items are proposed to be collected semiannually in the 
June and December reports only for institutions with total fiduciary 
assets greater than $250 million but less than or equal to $1 
billion (as of the preceding December 31) that do not meet the 
fiduciary income test for quarterly reporting.

------------------------------------------------------------------------
       Schedule              Item          Item name       MDRM No.(s)
------------------------------------------------------------------------
RC-T.................  4..............  Fiduciary and    RCONB868,
                                         Related          RCONB869,
                                         Assets:          RCONB870,
                                         Personal trust   RCONB871.
                                         and agency
                                         accounts.
RC-T.................  5.a............  Fiduciary and    RCONB872,
                                         Related          RCONB873,
                                         Assets:          RCONB874,
                                         Employee         RCONB875.
                                         benefit--defin
                                         ed
                                         contribution.
RC-T.................  5.b............  Fiduciary and    RCONB876,
                                         Related          RCONB877,
                                         Assets:          RCONB878,
                                         Employee         RCONB879.
                                         benefit--defin
                                         ed benefit.
RC-T.................  5.c............  Fiduciary and    RCONB880,
                                         Related          RCONB881,
                                         Assets: Other    RCONB882,
                                         employee         RCONB883.
                                         benefit and
                                         retirement-
                                         related
                                         accounts.
RC-T.................  6..............  Fiduciary and    RCONB884,
                                         Related          RCONB885,
                                         Assets:          RCONC001,
                                         Corporate        RCONC002.
                                         trust and
                                         agency
                                         accounts.
RC-T.................  7..............  Fiduciary and    RCONB886,
                                         Related          RCONB888,
                                         Assets:          RCONJ253,
                                         Investment       RCONJ254.
                                         management and
                                         investment
                                         advisory
                                         agency
                                         accounts.
RC-T.................  8..............  Fiduciary and    RCONJ255,
                                         Related          RCONJ256,
                                         Assets:          RCONJ257,
                                         Foundation and   RCONJ258.
                                         endowment
                                         trust and
                                         agency
                                         accounts.
RC-T.................  9..............  Fiduciary and    RCONB890,
                                         Related          RCONB891,
                                         Assets: Other    RCONB892,
                                         fiduciary        RCONB893.
                                         accounts.
RC-T.................  10.............  Fiduciary and    RCONB894,
                                         Related          RCONB895,
                                         Assets: Total    RCONB896,
                                         fiduciary        RCONB897.
                                         accounts.
RC-T.................  11.............  Fiduciary and    RCONB898,
                                         Related          RCONB899.
                                         Assets:
                                         Custody and
                                         safekeeping
                                         accounts.
RC-T.................  13.............  Fiduciary and    RCONJ259,
                                         Related          RCONJ260,
                                         Assets:          RCONJ261,
                                         Individual       RCONJ262.
                                         Retirement
                                         Accounts,
                                         Health Savings
                                         Accounts, and
                                         other similar
                                         accounts
                                         (included in
                                         items 5.c and
                                         11).
RC-T.................  14.............  Fiduciary and    RIADB904.
                                         Related
                                         Services
                                         Income:
                                         Personal trust
                                         and agency
                                         accounts.
RC-T.................  15.a...........  Fiduciary and    RIADB905.
                                         Related
                                         Services
                                         Income:
                                         Employee
                                         benefit--defin
                                         ed
                                         contribution.
RC-T.................  15.b...........  Fiduciary and    RIADB906.
                                         Related
                                         Services
                                         Income:
                                         Employee
                                         benefit--defin
                                         ed benefit.
RC-T.................  15.c...........  Fiduciary and    RIADB907.
                                         Related
                                         Services
                                         Income: Other
                                         employee
                                         benefit and
                                         retirement-
                                         related
                                         accounts.

[[Page 58453]]

 
RC-T.................  16.............  Fiduciary and    RIADA479.
                                         Related
                                         Services
                                         Income:
                                         Corporate
                                         trust and
                                         agency
                                         accounts.
RC-T.................  17.............  Fiduciary and    RIADJ315.
                                         Related
                                         Services
                                         Income:
                                         Investment
                                         management and
                                         investment
                                         advisory
                                         agency
                                         accounts.
RC-T.................  18.............  Fiduciary and    RIADJ316.
                                         Related
                                         Services
                                         Income:
                                         Foundation and
                                         endowment
                                         trust and
                                         agency
                                         accounts.
RC-T.................  19.............  Fiduciary and    RIADA480.
                                         Related
                                         Services
                                         Income: Other
                                         fiduciary
                                         accounts.
RC-T.................  20.............  Fiduciary and    RIADB909.
                                         Related
                                         Services
                                         Income:
                                         Custody and
                                         safekeeping
                                         accounts.
RC-T.................  21.............  Fiduciary and    RIADB910.
                                         Related
                                         Services
                                         Income: Other
                                         fiduciary and
                                         related
                                         services
                                         income.
RC-T.................  22.............  Fiduciary and    RIAD4070.
                                         Related
                                         Services
                                         Income: Total
                                         gross
                                         fiduciary and
                                         related
                                         services
                                         income.
RC-T.................  M.3.a..........  Collective       RCONB931,
                                         investment       RCONB932.
                                         funds and
                                         common trust
                                         funds:
                                         Domestic
                                         equity.
RC-T.................  M.3.b..........  Collective       RCONB933,
                                         investment       RCONB934.
                                         funds and
                                         common trust
                                         funds:
                                         International/
                                         Global equity.
RC-T.................  M.3.c..........  Collective       RCONB935,
                                         investment       RCONB936.
                                         funds and
                                         common trust
                                         funds: Stock/
                                         Bond blend.
RC-T.................  M.3.d..........  Collective       RCONB937,
                                         investment       RCONB938.
                                         funds and
                                         common trust
                                         funds: Taxable
                                         bond.
RC-T.................  M.3.e..........  Collective       RCONB939,
                                         investment       RCONB940.
                                         funds and
                                         common trust
                                         funds:
                                         Municipal bond.
RC-T.................  M.3.f..........  Collective       RCONB941,
                                         investment       RCONB942.
                                         funds and
                                         common trust
                                         funds: Short-
                                         term
                                         investments/
                                         Money market.
RC-T.................  M.3.g..........  Collective       RCONB943,
                                         investment       RCONB944.
                                         funds and
                                         common trust
                                         funds:
                                         Specialty/
                                         Other.
RC-T.................  M.3.h..........  Collective       RCONB945,
                                         investment       RCONB946.
                                         funds and
                                         common trust
                                         funds: Total
                                         collective
                                         investment
                                         funds.
------------------------------------------------------------------------

Appendix B: Data Items To Be Collected From Institutions With $1 
Billion or More in Total Assets on the FFIEC 051.

    The following data item is currently collected on the FFIEC 041 
from institutions with $1 billion or more in total assets. The data 
item is proposed to be reported quarterly by institutions with $1 
billion or more in total assets on the FFIEC 051.

------------------------------------------------------------------------
       Schedule              Item          Item name         MDRM No.
------------------------------------------------------------------------
RC-O.................  M.2............  Estimated        RCON5597.
                                         amount of
                                         uninsured
                                         deposits,
                                         including
                                         related
                                         interest
                                         accrued and
                                         unpaid.
------------------------------------------------------------------------

    The following data items are currently collected quarterly on 
the FFIEC 041 from institutions with $1 billion or more in total 
assets. The data items are proposed to be reported on the FFIEC 051 
by institutions with $1 billion or more in total assets with a 
reduction in the frequency of collection.

Semiannual Reporting (June and December only)

------------------------------------------------------------------------
       Schedule              Item          Item name       MDRM No.(s)
------------------------------------------------------------------------
RI-C *...............  1.a............  Construction     TBD (2 New MDRM
                                         loans.           Numbers)
RI-C *...............  1.b............  Commercial real  TBD (2 New MDRM
                                         estate loans.    Numbers)
RI-C *...............  1.c............  Residential      TBD (2 New MDRM
                                         real estate      Numbers)
                                         loans.
RI-C *...............  2..............  Commercial       TBD (2 New MDRM
                                         loans.           Numbers)
RI-C *...............  3..............  Credit cards...  TBD (2 New MDRM
                                                          Numbers)
RI-C *...............  4..............  Other consumer   TBD (2 New MDRM
                                         loans.           Numbers)
RI-C *...............  5..............  Unallocated, if  TBD (1 New MDRM
                                         any.             Number)

[[Page 58454]]

 
RI-C *...............  6..............  Total..........  TBD (2 New MDRM
                                                          Numbers)
------------------------------------------------------------------------
* The FFIEC 041 Schedule RI-C collects disaggregated data on the
  allowance for loan and lease losses by loan category and the related
  recorded investment based on whether the reported allowance relates to
  loans that are individually impaired, purchased credit-impaired, or
  collectively evaluated for impairment in six columns. The proposed
  Schedule RI-C for the FFIEC 051 will consolidate the disaggregated
  data into two columns: ``Recorded Investment'' (column A) and
  ``Allowance Balance'' (column B).
Effective June 30, 2021, the column captions would be changed to
  ``Amortized Cost'' (column A) and ``Allowance for Credit Losses''
  (ACL) (column B). From June 30, 2019, through December 31, 2020,
  institutions that have adopted Accounting Standards Update No. 2016-
  13, ``Financial Instruments--Credit Losses (Topic 326): Measurement of
  Credit Losses on Financial Instruments'' (ASU 2016-13) would report
  the amortized cost and related ACL by loan category in columns A and
  B, respectively. From June 30, 2021, through December 31, 2022,
  institutions that have not adopted ASU 2016-13 would report the
  recorded investment and related allowance balance by loan category in
  columns A and B, respectively.

Annual Reporting (December only)

------------------------------------------------------------------------
       Schedule              Item          Item name       MDRM No.(s)
------------------------------------------------------------------------
RI **................  M.15.a.........  Consumer         RIADH032.
                                         overdraft-
                                         related
                                         service
                                         charges levied
                                         on those
                                         transaction
                                         account and
                                         nontransaction
                                         savings
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RI **................  M.15.b.........  Consumer         RIADH033.
                                         account
                                         periodic
                                         maintenance
                                         charges levied
                                         on those
                                         transaction
                                         account and
                                         nontransaction
                                         savings
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RI **................  M.15.c.........  Consumer         RIADH034.
                                         customer
                                         automated
                                         teller machine
                                         (ATM) fees
                                         levied on
                                         those
                                         transaction
                                         account and
                                         nontransaction
                                         savings
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RI **................  M.15.d.........  All other        RIADH035.
                                         service
                                         charges on
                                         deposit
                                         accounts.
RC-E **..............  M.6.a..........  Total deposits   RCONP753.
                                         in those
                                         noninterest-
                                         bearing
                                         transaction
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RC-E **..............  M.6.b..........  Total deposits   RCONP754.
                                         in those
                                         interest-
                                         bearing
                                         transaction
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RC-E **..............  M.7.a.(1)......  Total deposits   RCONP756.
                                         in those MMDA
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RC-E **..............  M.7.a.(2)......  Deposits in all  RCONP757.
                                         other MMDAs of
                                         individuals,
                                         partnerships,
                                         and
                                         corporations.
RC-E **..............  M.7.b.(1)......  Total deposits   RCONP758.
                                         in those other
                                         savings
                                         deposit
                                         account
                                         deposit
                                         products
                                         intended
                                         primarily for
                                         individuals
                                         for personal,
                                         household, or
                                         family use.
RC-E **..............  M.7.b.(2)......  Deposits in all  RCONP759.
                                         other savings
                                         deposit
                                         accounts of
                                         individuals,
                                         partnerships,
                                         and
                                         corporations.
------------------------------------------------------------------------
** Items are to be completed by institutions with $1 billion or more in
  total assets that answered ``Yes'' to Schedule RC-E, Memorandum item
  5.

    The following data items are currently being proposed to be 
collected quarterly on the FFIEC 041 by those institutions with $1 
billion or more in total assets that have adopted ASU 2016-13.\53\
---------------------------------------------------------------------------

    \53\ See 83 FR 49160 (September 28, 2018).
---------------------------------------------------------------------------

    For this proposal, the data items are proposed to be reported on 
the FFIEC 051 by institutions with $1 billion or more in total 
assets that have adopted ASU 2016-13 with a reduction in the 
frequency of collection.

Semiannual Reporting (June and December only)

[[Page 58455]]



------------------------------------------------------------------------
       Schedule              Item          Item name       MDRM No.(s)
------------------------------------------------------------------------
RI-C.................  7..............  Held-to-         TBD (1 New MDRM
                                         Maturity:        Number).
                                         Securities
                                         issued by
                                         states and
                                         political
                                         subdivisions
                                         in the U.S..
RI-C.................  8.a............  Held-to-         TBD (1 New MDRM
                                         Maturity:        Number).
                                         Mortgage-
                                         backed
                                         securities
                                         issued or
                                         guaranteed by
                                         U.S.
                                         Government
                                         agencies or
                                         sponsored
                                         agencies.
RI-C.................  8.b............  Held-to-         TBD (1 New MDRM
                                         Maturity:        Number).
                                         Other mortgage-
                                         backed
                                         securities.
RI-C.................  9..............  Held-to-         TBD (1 New MDRM
                                         Maturity:        Number).
                                         Asset-backed
                                         securities and
                                         structured
                                         financial
                                         products.
RI-C.................  10.............  Held-to-         TBD (1 New MDRM
                                         Maturity:        Number).
                                         Other debt
                                         securities.
RI-C.................  11.............  Held-to-         TBD (1 New MDRM
                                         Maturity:        Number).
                                         Total.
------------------------------------------------------------------------

List of Subjects

12 CFR Part 52

    Banks, banking, Reporting and recordkeeping requirements.

12 CFR Part 208

    Accounting, Agriculture, Banks, banking, Confidential business 
information, Consumer protection, Currency, Insurance, Investments, 
Mortgages, Reporting and recordkeeping requirements, Securities

12 CFR Part 304

    Bank deposit insurance, Banks, banking, Freedom of information, 
Reporting and recordkeeping requirements.

Office of the Comptroller of the Currency

0
For the reasons set out in the joint preamble, the OCC proposes to add 
12 CFR part 52 as follows:

PART 52--REGULATORY REPORTING

Sec.
52.1 Authority and purpose.
Sec.  52.2 Definitions.
Sec.  52.3 Reduced reporting.
Sec.  52.4 Reservation of authority.

    Authority: 12 U.S.C. 93a, 161, 1463(a), 1464(v), and 
1817(a)(12).


Sec.  52.1  Authority and purpose.

    (a) Authority. This part is issued pursuant to 12 U.S.C. 93a, 161, 
1463(a), 1464(v), and 1817(a)(12).
    (b) Purpose. This part establishes a reduced reporting requirement 
for a covered depository institution making its reports of condition 
for the first and third calendar quarters of a year.


Sec.  52.2  Definitions.

    Covered depository institution means:
    A national bank, Federal savings association, or insured Federal 
branch that meets the following criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year;
    (2) Has no foreign offices, as defined in this subpart;
    (3) Is not required to or has not elected to use 12 CFR part 3, 
subpart E (for advanced approaches banks) to calculate its risk-based 
capital requirements;
    (4) Is not a large institution or highly complex institution, as 
such terms are defined in 12 CFR 327.8, or treated as a large 
institution, as requested under 12 CFR 327.16(f); and
    (5) Is not subject to the filing requirements for the FFIEC 002 
report of condition.
    Foreign country refers to one or more foreign nations, and includes 
the overseas territories, dependencies, and insular possessions of 
those nations and of the United States.
    Foreign office means:
    (1) A branch or consolidated subsidiary in a foreign country, 
unless the branch is located on a U.S. military facility;
    (2) An international banking facility as such term is defined in 12 
CFR 204.8;
    (3) A majority-owned Edge Act or Agreement subsidiary as defined in 
12 CFR 28.2, including both its U.S. and its foreign offices; and
    (4) For an institution chartered or headquartered in any U.S. state 
or the District of Columbia, a branch or consolidated subsidiary 
located in a U.S. territory or possession.
    Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 051 
versions of the Consolidated Report of Condition and Income (Call 
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks), as applicable, and as they may 
be amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
    Total consolidated assets means total assets as reported in an 
institution's report of condition.


Sec.  52.3  Reduced reporting.

    A covered depository institution may file the FFIEC 051 version of 
the Call Report, or any successor thereto, to satisfy its requirement 
to file a report of condition for the first and third calendar quarters 
of a year.


Sec.  52.4  Reservation of authority.

    The OCC may determine that a covered depository institution shall 
not use the reduced reporting in Sec.  52.3. In making this 
determination, the OCC will consider whether the institution is 
significantly engaged in complex, specialized, or higher risk 
activities, for which a reduced reporting requirement would not provide 
sufficient information. The institution has 30 days following 
notification from the OCC to inform the OCC, in writing, of why it 
should continue to be eligible to use reduced reporting or cannot cease 
using reduced reporting in the OCC's proposed timeframe. The OCC will 
make a final decision after reviewing any response. Nothing in this 
part shall be construed to limit the OCC's authority to obtain 
information from a covered depository institution.

FEDERAL RESERVE SYSTEM

Authority and Issuance

    For the reasons set forth in the joint preamble, the Board proposes 
to amend 12 CFR part 208 as follows:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

0
1. The authority citation of part 208 is amended to read as follows:

    Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 
371d, 461, 481-486, 601, 611, 1814, 1816, 1817(a)(3), 1817(a)(12),

[[Page 58456]]

1818, 1820(d)(9), 1833(j), 1828(o), 1831, 1831o, 1831p-1, 1831r-1, 
1831w, 1831x, 1835a, 1882, 2901-2907, 3105, 3310, 3331-3351, 3905-
3909, and 5371; 15 U.S.C. 78b, 78I(b), 78l(i), 780-4(c)(5), 78q, 
78q-1, and 78w, 1681s, 1681w, 6801, and 6805; 31 U.S.C. 5318; 42 
U.S.C. 4012a, 4104a, 4104b, 4106 and 4128.
0
2. Add new subpart K to part 208 to read as follows:
Subpart K--Forms, Instructions and Reports
Sec.
Sec.  208.120 Authority, Purpose, and Scope
Sec.  208.121 Definitions
Sec.  208.122 Reporting
Sec.  208.123 Reduced Reporting
Sec.  208.124 Reservation of Authority

Subpart K--Forms, Instructions and Reports


Sec.  208.120  Authority, Purpose, and Scope

    (a) Authority. Subpart K of Regulation H (12 CFR part 208, subpart 
K) is issued by the Board under section 7 of the Federal Deposit 
Insurance Act, 12 U.S.C. 1817(a)(3) and (12), and section 9 of the 
Federal Reserve Act, 12 U.S.C. 324.
    (b) Purpose and scope. This subpart informs a state member bank 
where it may obtain forms and instructions for reports of conditions 
and implements 12 U.S.C. 1817(a)(12) to allow reduced reporting for a 
covered depository institution when such institution makes its reports 
of condition for the first and third calendar quarters of a year.


Sec.  208.121  Definitions

    Covered depository institution means: a state member bank that 
meets all of the following criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year;
    (2) Has no foreign offices, as defined in this subpart;
    (3) Is not required to or has not elected to use 12 CFR part 217, 
subpart E to calculate its risk-based capital requirements; and
    (4) Is not a large institution or highly complex institution, as 
such terms are defined in 12 CFR 327.8, or treated as a large 
institution, as requested under 12 CFR 327.16(f).
    Foreign country refers to one or more foreign nations, and includes 
the overseas territories, dependencies, and insular possessions of 
those nations and of the United States.
    Foreign office means:
    (1) A branch or consolidated subsidiary in a foreign country, 
unless the branch is located on a U.S. military facility;
    (2) An international banking facility as such term is defined in 12 
CFR 204.8;
    (3) A majority-owned Edge Act or Agreement subsidiary including 
both its U.S. and its foreign offices; and
    (4) For an institution chartered or headquartered in any U.S. state 
or the District of Columbia, a branch or consolidated subsidiary 
located in a U.S. territory or possession.
    Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 051 
versions of the Consolidated Report of Condition and Income (Call 
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks), as applicable, and as they may 
be amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
    Total consolidated assets means total assets as reported in a state 
member bank's report of condition.


Sec.  208.122  Reporting

    (a) A state member bank is required to file the report of condition 
(Call Report) in accordance with the instructions for these reports. 
All assets and liabilities, including contingent assets and 
liabilities, must be reported in, or otherwise taken into account in 
the preparation of, the Call Report. The Board uses Call Report data to 
monitor the condition, performance, and risk profile of individual 
state member banks and the banking industry. Reporting state member 
banks must also submit annually such information on small business and 
small farm lending as the Board may need to assess the availability of 
credit to these sectors of the economy. The report forms and 
instructions can be obtained from Federal Reserve District Banks or 
through the website of the Federal Financial Institutions Examination 
Council, http://www.ffiec.gov/.
    (b) Every insured U.S. branch of a foreign bank is required to file 
the FFIEC 002 version of the report of condition (Report of Assets and 
Liabilities of U.S. Branches and Agencies of Foreign Banks) in 
accordance with the instructions for the report. All assets and 
liabilities, including contingent assets and liabilities, must be 
reported in, or otherwise taken into account in the preparation of the 
report. The Board uses the reported data to monitor the condition, 
performance, and risk profile of individual insured branches and the 
banking industry. Insured branches must also submit annually such 
information on small business and small farm lending as the Board may 
need to assess the availability of credit to these sectors of the 
economy. The report forms and instructions can be obtained from Federal 
Reserve District Banks or through the website of the Federal Financial 
Institutions Examination Council, http://www.ffiec.gov/.


Sec.  208.123  Reduced Reporting

    A covered depository institution may file the FFIEC 051 version of 
the report of condition, or any successor thereto, which shall provide 
for reduced reporting for the reports of condition for the first and 
third calendar quarters for a year.


Sec.  208.124  Reservation of Authority

    (a) Notwithstanding Sec.  208.123, the Board in consultation with 
the applicable state chartering authority may require an otherwise 
eligible covered depository institution to file the FFIEC 041 version 
of the report of condition, or any successor thereto, based on an 
institution-specific determination. In making this determination, the 
Board may consider criteria including, but not limited to, whether the 
institution is significantly engaged in one or more complex, 
specialized, or other higher risk activities, such as those for which 
limited information is reported in the FFIEC 051 version of the report 
of condition compared to the FFIEC 041 version of the report of 
condition. Nothing in this part shall be construed to limit the Board's 
authority to obtain information from a state member bank.
    (b) Nothing in this subpart limits the authority of the Board under 
any other provision of law or regulation to take supervisory or 
enforcement action, including action to address unsafe or unsound 
practices or conditions or violations of law.

Federal Deposit Insurance Corporation

12 CFR CHAPTER III

Authority and Issuance

0
For the reasons set forth in the preamble, the Federal Deposit 
Insurance Corporation proposes to amend 12 CFR part 304 to read as 
follows:

PART 304--FORMS, INSTRUCTIONS, AND REPORTS

Contents

Subpart A--In General
Sec.  304.1 Purpose.
Sec.  304.2 Where to obtain forms and instructions.
Sec.  304.3 Reports.
Sec.  304.4-304.10 [Reserved].
Subpart B--Implementation of Reduced Reporting Requirement
Sec.  304.11 Authority, purpose and scope.
Sec.  304.12 Definitions.
Sec.  304.13 Reduced reporting.

[[Page 58457]]

Sec.  304.14 Reservation of authority.

    Authority: 5 U.S.C. 552; 12 U.S.C. 1464, 1817, 1831, 1867.

Subpart A--In General


Sec.  304.1   Purpose.

    Part 304 informs the public where it may obtain forms and 
instructions for reports, applications, and other submittals used by 
the FDIC, and also describes certain forms that are not described 
elsewhere in FDIC regulations.


Sec.  304.2   Where to obtain forms and instructions.

    Forms and instructions used in connection with applications, 
reports, and other submittals used by the FDIC can be obtained by 
contacting the FDIC Public Information Center (550 17th Street NW, 
Washington, DC 20429; telephone: (877) 275-3342 or (703) 562-2200), 
except as noted below in Sec.  304.3. In addition, many forms and 
instructions can be obtained from FDIC regional offices. A list of FDIC 
regional offices can be obtained from the FDIC Public Information 
Center, or found at the FDIC's website at http://www.fdic.gov, or in 
the directory of FDIC Law, Regulations, Related Acts published by the 
FDIC.


Sec.  304.3   Reports.

    (a) Consolidated Reports of Condition and Income, Forms FFIEC 031, 
041, and 051. Pursuant to section 7(a) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(a)) and other applicable law, every insured 
depository institution is required to file Consolidated Reports of 
Condition and Income (also known as the Call Report) in accordance with 
the instructions for these reports. All assets and liabilities, 
including contingent assets and liabilities, must be reported in, or 
otherwise taken into account in the preparation of, the Call Report. 
The FDIC uses Call Report data from all insured depository institutions 
to calculate deposit insurance assessments and monitor the condition, 
performance, and risk profile of individual banks and the banking 
industry. Reporting banks must also submit annually such information on 
small business and small farm lending as the FDIC may need to assess 
the availability of credit to these sectors of the economy. The report 
forms and instructions can be obtained from the Division of Insurance 
and Research (DIR), FDIC, 550 17th Street NW, Washington, DC 20429 or 
through the website of the Federal Financial Institutions Examination 
Council, http://www.ffiec.gov/.

(Approved by the Office of Management and Budget under control number 
3064-0052)

    (b) Report of Assets and Liabilities of U.S. Branches and Agencies 
of Foreign Banks, Form FFIEC 002. Pursuant to section 7(a) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(a)) and other applicable 
law, every insured U.S. branch of a foreign bank is required to file a 
Report of Assets and Liabilities of U.S. Branches and Agencies of 
Foreign Banks in accordance with the instructions for the report. All 
assets and liabilities, including contingent assets and liabilities, 
must be reported in, or otherwise taken into account in the preparation 
of the report. The FDIC uses the reported data to calculate deposit 
insurance assessments and monitor the condition, performance, and risk 
profile of individual insured branches and the banking industry. 
Insured branches must also submit annually such information on small 
business and small farm lending as the FDIC may need to assess the 
availability of credit to these sectors of the economy. Because the 
Board of Governors of the Federal Reserve System collects and processes 
this report on behalf of the FDIC, the report forms and instructions 
can be obtained from Federal Reserve District Banks or through the 
website of the Federal Financial Institutions Examination Council, 
http://www.ffiec.gov/.

(Approved by the Office of Management and Budget under control 
number 7100-0032)

    (c) Summary of Deposits, Form FDIC 8020/05. Form 8020/05 is a 
report on the amount of deposits for each authorized office of an 
insured depository institution with branches; institutions with only a 
main office are exempt from reporting. Reports as of June 30 of each 
year must be submitted no later than the immediately succeeding July 
31. The report forms and the instructions for completing the reports 
will be furnished to all such banks by, or may be obtained upon request 
from, the Division of Insurance and Research (DIR), FDIC, 550 17th 
Street NW, Washington, DC 20429.

(Approved by the Office of Management and Budget under control 
number 3064-0061)

    (d) Notification of Performance of Bank Services, Form FDIC 6120/
06. Pursuant to Section 7 of the Bank Service Company Act (12 U.S.C. 
1867), as amended, FDIC-supervised banks must notify the agency about 
the existence of a service relationship within thirty days after the 
making of the contract or the performance of the service, whichever 
occurs first. Form FDIC 6120/06 may be used to satisfy the notice 
requirement. The form contains identification, location and contact 
information for the bank, the servicer, and a description of the 
services provided. In lieu of the form, notification may be provided by 
letter. Either the form or the letter containing the notice information 
must be submitted to the regional director--Division of Risk Management 
Supervision (RMS) of the region in which the bank's main office is 
located.

(Approved by the Office of Management and Budget under control 
number 3064-0029)

Subpart B--Implementation of Reduced Reporting Requirement

    Authority:  12 U.S.C. 1464(v), 1817(a), and 1819 Tenth.


Sec.  304.11  Authority, purpose, and scope.

    (a) Authority. This subpart is issued pursuant to 12 U.S.C. 
1464(v), and sections 7 (12 U.S.C. 1817(a)(12)) and section 9 (12 
U.S.C. 1819 Tenth) of the Federal Deposit Insurance Act.
    (b) Purpose. This subpart implements 12 U.S.C. 1817(a)(12) to allow 
reduced reporting for a covered depository institution when such 
institution makes its reports of condition for the first and third 
calendar quarters of a year.
    (c) Scope. This subpart applies to an insured depository 
institution, as that term is defined in section 3(c) of the Federal 
Deposit Insurance Act, 12 U.S.C. 1813(c), that meets the definition of 
a covered depository institution under section 304.12.
    (d) Preservation of authority. Nothing in this subpart in any way 
limits the authority of the Corporation under other provisions of 
applicable law and regulation.


Sec.  304.12  Definitions.

    (a) Covered depository institution means an insured depository 
institution, as such term is defined in section 3 of the Federal 
Deposit Insurance Act, 12 U.S.C. 1813, for which the Corporation is the 
appropriate Federal banking agency and that meets all of the following 
criteria:
    (1) Has less than $5 billion in total consolidated assets as 
reported in its report of condition for the second calendar quarter of 
the preceding year;
    (2) Has no foreign offices, as defined in this subpart;
    (3) Is not required to or has not elected to use 12 CFR part 324, 
subpart E to calculate its risk-based capital requirements;
    (4) Is not a large institution or highly complex institution, as 
such terms are

[[Page 58458]]

defined in 12 CFR 327.8, or treated as a large institution, as 
requested under 12 CFR 327.16(f); and
    (5) Is not a state-licensed insured branch of a foreign bank, as 
such terms are defined in section 3(s) of the Federal Deposit Insurance 
Act, 12 U.S.C. 1813(s).
    (b) Foreign country refers to one or more foreign nations, and 
includes the overseas territories, dependencies, and insular 
possessions of those nations and of the United States.
    (c) Foreign office means:
    (1) A branch or consolidated subsidiary in a foreign country, 
unless the branch is located on a U.S. military facility;
    (2) An international banking facility as such term is defined in 12 
CFR 204.8;
    (3) A majority-owned Edge Act or Agreement subsidiary including 
both its U.S. and its foreign offices; and
    (4) For an institution chartered or headquartered in any U.S. state 
or the District of Columbia, a branch or consolidated subsidiary 
located in a U.S. territory or possession.
    (d) Report of condition means the FFIEC 031, FFIEC 041, or FFIEC 
051 versions of the Consolidated Report of Condition and Income (Call 
Report) or the FFIEC 002 (Report of Assets and Liabilities of U.S. 
Branches and Agencies of Foreign Banks), as applicable, and as they may 
be amended or superseded from time to time in accordance with the 
Paperwork Reduction Act of 1995, 44 U.S.C. chapter 35.
    (e) Total consolidated assets means total assets as reported in an 
insured depository institution's report of condition.


Sec.  304.13  Reduced reporting.

    A covered depository institution may file the FFIEC 051 version of 
the report of condition, or any successor thereto, which shall provide 
for reduced reporting for the reports of condition for the first and 
third calendar quarters for a year.


Sec.  304.14  Reservation of authority.

    Notwithstanding Sec.  304.13, the Corporation, in consultation with 
the applicable state chartering authority, may require an otherwise 
eligible covered depository institution to file the FFIEC 041 version 
of the report of condition, or any successor thereto, based on an 
institution-specific determination. In making this determination, the 
Corporation may consider criteria including, but not limited to, 
whether the institution is significantly engaged in one or more 
complex, specialized, or other higher-risk activities, such as those 
for which limited information is reported in the FFIEC 051 version of 
the report of condition compared to the FFIEC 041 version of the report 
of condition. Nothing in this part shall be construed to limit the 
Corporation's authority to obtain information from insured depository 
institutions.

    Dated: November 5, 2018.
Joseph M. Otting,
Comptroller of the Currency.

    By order of the Board of Governors of the Federal Reserve 
System, October 30, 2018.
Ann E. Misback,
Secretary of the Board.

    Dated at Washington, DC, on October 17, 2018.

    By order of the Board of Directors.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2018-24587 Filed 11-16-18; 8:45 am]
 BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P