Bank Reports

TO: CHIEF EXECUTIVE OFFICER
SUBJECT: Reports of Condition and Income (Call Reports) for Second Quarter 1997

The enclosed materials pertain to the Reports of Condition and Income (Call Reports) for June 30, 1997. The second quarter Call Reports should be completed and submitted as soon as possible. However, completed original reports must be received by the FDIC (for national and FDIC-supervised banks), the appropriate Federal Reserve District Bank (for state member banks), or the banking agencies' electronic collection agent by July 30, 1997.

The filing of a Call Report will be considered timely, regardless of when the Call Report is received, if it is mailed first class, properly addressed, and postmarked not later than July 27, 1997, or if it is entered into an overnight delivery system for the proper destination on or before July 29, 1997. No extensions of time for submitting reports are granted. In the absence of a postmark, a bank whose original Call Report is received late by the FDIC (at its data entry site in Crofton, Maryland) or the appropriate Federal Reserve District Bank may be called upon to provide proof of timely mailing. A "Certificate of Mailing" (U.S. Postal Service Form 3817) may be used as proof.

Alternatively, banks that use Call Report preparation software to complete their reports are encouraged to submit their Call Reports electronically to Electronic Data Systems Corporation (EDS), the banking agencies' collection agent. Reports submitted electronically over telephone lines will be considered timely if transmitted to EDS by July 30, 1997. Banks filing their Call Reports electronically should not mail hard copies of the report to any federal bank supervisory agency unless specifically requested to do so.

Banks that have or have had more than one foreign office, other than a "shell" branch or an International Banking Facility, and that use any of the additional 15 days allowed for the completion of their reports are required to submit their reports electronically to EDS not later than August 14, 1997.

As you were previously advised by the Federal Financial Institutions Examination Council (see FIL-109-96, dated December 31, 1996, and FIL-58-97 (98kb, requires the free Adobe Acrobat Reader) dated June 5, 1997), the Call Report forms for this quarter contain changes to the reporting of interest rate risk-related data. In particular, all banks, including FDIC-supervised savings banks, will begin reporting revised maturity and repricing data for securities, loans and leases, and time deposits in the Memoranda sections of Schedules RC-B, RC-C, part I, and RC-E. For savings banks, these items replace supplemental Schedule RC-J -- "Repricing Opportunities for Selected Balance Sheet Categories" -- which has been eliminated. Three interest rate risk-related items have been added to two other Call Report schedules and the maturity information for "Other borrowed money" on the balance sheet has been revised. For the June 30, September 30, and December 31, 1997, report dates, banks may report a reasonable estimate for any new or revised interest rate risk-related item for which the requested information is not readily available.

Banks are reminded that Financial Accounting Standards Board Statement No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities" (FAS 125), took effect on January 1, 1997, except for certain provisions whose effective date has been deferred one year. Banks must adopt FAS 125 for Call Report purposes for transactions occurring after December 31, 1996, except for those provisions covered by the deferral. FAS 125 also applies to servicing contracts and certain financial assets in existence before January 1, 1997. FAS 125 establishes a new accounting approach for distinguishing transfers of financial assets that are reported as sales from transfers that are reported as borrowings. This new approach applies to all transfers of financial assets, including loan participations and sales of securities under repurchase agreements, and to loans in which the lending bank has a security interest in collateral, beginning either in 1997 or 1998 depending on the type of transaction. Banks are encouraged to consult with their outside accountants concerning the effect of FAS 125 on their asset transfer activities and the actions needed to properly implement FAS 125.

The Call Report forms for this quarter include the annual schedule for reporting on the number and amount currently outstanding of loans to small businesses and small farms (Schedule RC-C, part II), as required by Section 122 of the Federal Deposit Insurance Corporation Improvement Act of 1991.

All banks are requested to report the number of deposit accounts of $100,000 or less in the deposit insurance assessments schedule (Schedule RC-O, Memorandum item 1.a.(2)). This information is collected only as of the June 30 report date each year, while the other Schedule RC-O items on the number and size of deposit accounts are collected quarterly.

National banks and FDIC-supervised banks filing hard-copy Call Report forms should return only the original signed forms to the FDIC's data entry site in Crofton, Maryland. Original signed forms that are mailed to OCC District or FDIC Regional Offices are not considered properly addressed. The use of an improper address may cause a bank's forms to be received at the data entry site after the submission deadline. State member banks submitting hard-copy Call Report forms should return the original signed forms and one copy to the appropriate Federal Reserve District Bank. The use of a telephone facsimile machine to transmit a copy of the original signed Call Report forms is not an acceptable method of submission.

For further information or assistance concerning the Call Reports, state member banks should contact their Federal Reserve District Bank. National and FDIC-supervised banks should telephone the FDIC's Call Reports Analysis Unit in Washington, D.C., toll free on (800) 688-FDIC or on (202) 898-6607, Monday through Friday between 8:00 a.m. and 5:00 p.m., Eastern Time.

Thank you for your cooperation.