Schedule RC-R Part I
September 6, 2023, 1:30 pm CDT
Schedule RC-R is the longest schedule within the Call Report and the subject of many questions regarding reporting requirements. This 2-part series will focus on the critical reporting requirements for Part I and Part II.
What You’ll Learn
- The concepts and definitions for leverage and risk-based capital ratios.
- Required elections related to the treatment of Accumulated Other Comprehensive Income.
- Required elections for CECL banks related to phasing in the negative impact to capital from the day-one transitional accounting entry.
- Examples of how electing to transition your CECL day-one impact will affect reporting to Retained Earnings, Deferred Taxes, Average Assets, and the Allowance for Credit Losses in RC-R Part I and II.
- How a qualifying community banking organization opts into (and out of) the Community Bank Leverage Ratio (CBLR) framework.
- The adjustments to common equity tier 1 related to goodwill, intangibles, NOL assets, deferred tax assets, deferred tax liabilities, and investments in the equity of unconsolidated subsidiaries.
- Tier 2 capital items and total capital calculations.
- For 051 filers, a discussion of how to determine your risk-weighted assets for the March and September reporting time frames.
- The capital conservation buffer and reporting requirements for eligible retained earnings.
Schedule RC-R Part II
September 7, 2023, 1:30 pm CDT
Schedule RC-R is the longest schedule within the Call Report and the subject of many questions regarding reporting requirements. This 2-part series will focus on the critical reporting requirements for Part I and Part II.
What You’ll Learn
- The general allocation of risk to balance-sheet assets and off-balance-sheet credit exposures.
- The 4 risk buckets applicable to a bank’s loan portfolio.
- How to allocate risk to off-balance-sheet credit exposures and the concept of credit conversion factors.
- The treatment of sales of 1-4 family residential mortgage loans with credit-enhancing representations and warranties.
- The reporting requirements for Columns A and B of RC-R Part II to include CECL purchase credit deteriorated (PCD) identification and reporting.
- The treatment of amounts that were deducted from capital in RC-R Part I.
- The regulatory capital rules definition of unconditionally cancelable and how that impacts the reporting and credit converting off-balance-sheet credit exposures.
- How to report certain accounting requirements under CECL for assets with purchase credit deteriorated amounts in Memo item 4.
Who Should Attend
Anyone responsible for preparing or reviewing the Call Report risk-based capital schedules. This two-part series will benefit even experienced Call Report preparers, reviewers, and auditors. This training can be used to supplement annual comprehensive Call Report training as recommended by the regulators.