BANK REPORTS

Federal Deposit Insurance Corporation
Office of the Comptroller of the Currency
Board of Governors of the Federal Reserve System

TO: CHIEF EXECUTIVE OFFICER

SUBJECT: Reports of Condition and Income for Third Quarter 2006

The enclosed materials pertain to the Reports of Condition and Income (Call Report) for the September 30, 2006, report date. Please plan to complete the preparation, editing, review, and submission of your Call Report data to the agencies' Central Data Repository (CDR) as early as possible. Starting your preparation early will aid you in identifying and resolving any edit exceptions prior to the submission deadline. If you later find that certain information needs to be revised, please make the appropriate changes to your Call Report data and promptly submit the revised data file to the CDR.

Except for certain banks with foreign offices, your completed report must be received by Monday, October 30, 2006, in accordance with the filing requirements discussed below. No extensions of time for submitting Call Report data are granted.

Banks should ensure that those responsible for submitting their institution's Call Report data try to log in to the CDR prior to the submission deadline because many passwords are scheduled to expire during the third quarter. In addition, persons submitting Call Report data must undergo Security Awareness Training for the CDR annually and this training should be completed before the submission deadline. Banks should also ensure that they have at least two Delegated Site Administrators for the CDR. Please visit the CDR website for further guidance on these topics (https://cdr.ffiec.gov/CDR/public/CDRhelp/CDRHelp.html).

As the Federal Financial Institutions Examination Council (FFIEC) previously advised you, the agencies are implementing a number of revisions to the Call Report this quarter as part of a series of revisions being phased in through March 2008 (see FIL-7-2006, dated January 27, 2006). The agencies also have revised the officer signature requirement this quarter so that a bank's chief financial officer (or the individual performing an equivalent function), rather than any authorized officer of the bank, must sign the Call Report. The reporting changes taking effect as of September 30, 2006, involve Federal Home Loan Bank advances, other borrowings, and certain secured borrowings (Schedule RC-M, items 5 and 10); nonaccrual assets (Schedule RC-N, Memorandum items 7 and 8); and closed-end 1-4 family residential mortgage banking activities (new Schedule RC-P). This new schedule must be completed by all banks with $1 billion or more in total assets and by banks with less than $1 billion in total assets whose closed end 1-4 family residential mortgage banking activities exceed a specified level. For further information on which banks must complete Schedule RC-P, please refer to the enclosed update to your Call Report instruction book, which covers all of the reporting changes being implemented this quarter. For the September 30, 2006, report date only, banks may report a reasonable estimate for any of the new or revised items for which the requested information is not readily available.

Because of the number of Call Report revisions taking effect this quarter, a sample set of September 30, 2006, Call Report forms is enclosed. Sample December 31, 2006, Call Report forms will not be mailed to banks. Each quarter's sample report forms are available on both the FFIEC's Web site (www.ffiec.gov/ffiec_report_forms.htm) and the Federal Deposit Insurance Corporation's (FDIC) Web site (www.fdic.gov/regulations/resources/call/index.html).

Each bank must file its September 30, 2006, Call Report data in one of the following two ways:

• A bank may use computer software to prepare and edit its report data and then electronically submit the data directly to the CDR (https://cdr.ffiec.gov/cdr/).
• A bank may complete its report in paper form and arrange with a software vendor or another party to convert its paper report into the electronic format that can be processed by the CDR. The software vendor or other party then must electronically submit the bank's Call Report data file to the CDR.

Electronic submission of Call Report data will be considered timely if the data are received by the CDR no later than Monday, October 30, 2006, and pass FFIEC-published validation criteria (validity edits and quality edits) or, where necessary, contain explanations for any quality edits that are not passed. Explanatory comments should be prepared consistent with the "Guidelines for Resolving Edits" that are published on the FFIEC's Web site at http://www.ffiec.gov/find/documents/resolvingedits.pdf 56k (PDF Help).

A bank that has more than one foreign office, other than a "shell" branch or an International Banking Facility, is permitted an additional five calendar days to submit its Call Report data. Such a bank must electronically transmit its data to the CDR no later than Saturday, November 4, 2006. In addition, on or about each April 30 and October 30, the FDIC conducts a telephone survey of some banks with more than one foreign office to obtain certain deposit data needed to estimate insured deposits.

Banks are reminded that the CDR now has functionality that allows institutions to check the receipt and submission status of their Call Report data instead of waiting for e-mail verifications. Instructions for this functionality may be accessed at https://cdr.ffiec.gov/CDR/public/CDRhelp/CDRHelp.html by scrolling down to "Data Submission Flow" and clicking on "Submission Status." Instructions for submitting test data are also located on this Web site under "Data Submission Flow."

For technical assistance with the CDR, banks should contact the CDR Help Desk by telephone at (888) CDR-3111, by fax at (301) 495-7864, or by e-mail at CDR.Help@ffiec.gov. For further information concerning the Call Report itself, state member banks should contact their Federal Reserve District Bank. National and FDIC-supervised banks should contact the FDIC's Data Collection and Analysis Section in Washington, D.C., by telephone at (800) 688 FDIC (3342) or by e-mail at insurance research@fdic.gov.

Distribution

Insured Commercial Banks, State-Chartered Savings Banks, and Noninsured National Trust Companies