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: Consolidated Reports of Condition and Income for First Quarter 2008

The attached materials pertain to the Consolidated Reports of Condition and Income (Call Report) for the March 31, 2008, report date. Please plan to complete the preparation, editing, and review of your bank's Call Report data and the submission of these 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 Call Report must be received by Wednesday, April 30, 2008, in accordance with the filing requirements discussed below. No extensions of time for submitting Call Report data are granted.

As the Federal Financial Institutions Examination Council (FFIEC) previously advised you, certain revisions to the Call Report are scheduled to be implemented as of March 31, 2008, although the reporting of certain new items will be optional for this initial report date and will be required beginning June 30, 2008 (see FIL-13-2008, dated February 20, 2008). All of the reporting changes have been approved by the U.S. Office of Management and Budget. The revisions include a number of reporting changes that have been undergoing a phased-in implementation that began in March 2007. For the March 31, 2008, report date, banks may provide reasonable estimates for any new or revised Call Report item required to be reported as of that date for which the requested information is not readily available. This same policy on the reporting of reasonable estimates will apply as of June 30, 2008, to the new items that are optional in March 2008.

The reporting changes whose phased-in implementation will be completed as of March 31, 2008, include the reporting by all banks of two-way breakdowns of real estate construction loans and nonfarm nonresidential real estate loans in a number of Call Report schedules. In addition, the revised format for Schedule RC-O, Other Data for Deposit Insurance and FICO Assessments, which was introduced in March 2007, will be fully implemented in the March 2008 Call Report. During 2007, banks could submit either the original or the revised format of Schedule RC-O for deposit insurance assessment base measurement purposes. The use of the original format has now been eliminated.

The remaining March 2008 reporting changes, which in many cases apply only to certain banks, involve new data items on:

• 1-4 family residential mortgage loans (interest and fee income; the quarterly average; restructured troubled mortgages; loans in process of foreclosure; originations, purchases, and sales of open-end mortgages and related noninterest income; and mortgage repurchases and indemnifications);
• Loans and other assets and liabilities accounted for under a fair value option and related net gains (losses) recognized in earnings;
• Fair value measurements; and
• Securities, loans, and other assets and liabilities held for trading.

Please refer to the March 2008 Call Report forms and instruction book update for information on the new data items that are optional in March and required in June.

In addition, the threshold for reporting significant items of other noninterest income and expense in Schedule RI-E, Explanations, has been modified. Also, the Call Report's trading account definition has been modified in response to the creation of a fair value option in generally accepted accounting principles. Other instructional revisions apply to the reporting of fully insured brokered deposits in Schedule RC-E, Deposit Liabilities, and credit derivative data in Schedule RC-R, Regulatory Capital.

As announced in FIL-13-2008, the agencies are discontinuing the mailing of paper Call Report forms and instructions to banks this quarter. The Call Report forms and an instruction book update for March 2008 will be available on the FFIEC's Web site (http://www.ffiec.gov/ffiec_report_forms.htm) and the FDIC's Web site (http://www.fdic.gov/regulations/resources/call/index.html) by April 1. In the interim, draft forms and instructions for March 2008 are available on these Web sites. Banks should also refer to this quarter's attached Supplemental Instructions for additional guidance on certain reporting issues. Report forms and instructional materials can be both printed and downloaded from these Web sites. Please notify the person responsible for preparing Call Reports at your bank about the electronic availability of the report forms, instruction book update, and Supplemental Instructions for March 2008.

Each bank must file its March 31, 2008, 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 Wednesday, April 30, 2008, 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 - PDF (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 Monday, May 5, 2008. 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.

For technical assistance with the CDR, banks should contact the CDR Help Desk by telephone at (888) CDR-3111, by fax at (703) 774-3946, 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

FDIC-Supervised Banks and Savings Institutions, National Institutions, and State Member Institutions