Schedule RC-R – Part 1
The training for RC-R Part I will focus on the concepts and definitions for leverage and risk-based capital ratios, required elections related to the treatment of Accumulated Other Comprehensive Income, and more!
Covered Topics
- 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.
- 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 2
The training for RC-R Part II will focus on 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 and more!
Covered Topics
- The general allocation of risk to balance sheet assets and off-balance-sheet credit
- 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.
- The treatment of amounts that were deducted from the capital in RC-R Part I.
- The regulatory capital rules definition of unconditionally cancelable and how that impacts the reporting and risk weighting of off-balance-sheet credit exposures.
- How to report certain accounting requirements under CECL for assets with purchase credit deteriorated amounts.
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.