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Home > Library > Accounting > Proper Treatment of Call Report Items
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Proper Treatment of Call Report Items

2/18/2010
 

By Daniella C. Dibella, CPA

One of the requirements of all national, state member and insured non-member banks in the United States is to file a consolidated Call Report with the Federal Financial Institutions Examination Council on a quarterly basis. With the December 31, 2009 Call Report just completed, now is a good time to take stock of some common errors in anticipation of preparing the next Call Report, which is due at the end of April.  Below are some Call Report items, their common treatment and their proper treatment. 

Call Report Item
Common Treatment
Proper Treatment
Origination fees and service release
premiums on sales of mortgage loans.
Included in interest income on Schedule RI.
Include in noninterest income on Schedule RI line 5i.
Provision for credit losses on off-balance sheet credit exposures, and allowance for credit losses on off-balance sheet credit exposures.
Provision is included as part of the provision for loan losses on Schedule RI, and the allowance is carried as part of the allowance for loan losses on Schedule RC.
Include provision in noninterest expense on Schedule RI line 7d.  Include allowance in other liabilities on Schedule RC and Schedule RC-G line 3.
Components of other noninterest income and other noninterest expense which are both greater than $25,000 and exceed 3% of the total other noninterest income/expense amount.
Itemized on Schedule RI-E when they do not meet the disclosure criteria.  Omitted from Schedule RI-E when they meet the disclosure criteria.
Components of other noninterest income and other noninterest expense should be itemized on Schedule RI-E if they are both greater than $25,000 and exceed 3% of the total other noninterest income/expense amount.
Computer software and related accumulated amortization. Original fine art objects.
Included as part of premises and fixed assets on Schedule RC.
Include in other assets on Schedule RC and Schedule RC-G.
Unfunded loan commitments.
Reported net of participations on Schedule RC-L.
Report gross on Schedule RC-L, including the amounts of commitments acquired from and conveyed to others.
Insider loan balances.
Reported on Schedule RC-M as the balance outstanding.
For lines of credit included in RC-M balances, the amount reported as an extension of credit should be the total line extended, not just the balance of funds advanced.
Goodwill and Intangible Assets.
Amounts disallowed from regulatory capital on Schedule RC-R are not subtracted from risk-weighted assets.
Amounts disallowed from regulatory capital on Schedule RC-R should also be excluded from risk-weighted assets.
Accrued Interest Receivable.
Amounts are classified as 100% risk weighted on Schedule RC-R.
Amounts can be classified in the same risk weight category as the related asset, although banks have the option to risk-weight assets at a higher risk weight than would otherwise apply.