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    US Agencies Issue Supplemental Instructions to FFIEC Call Reports

    March 16, 2020

    US Agencies (FDIC, FED, and OCC) issued supplemental instructions to the Call Reports FFIEC 031, FFIEC 041, and FFIEC 051. The supplemental instructions have been issued in response to the comments received on the proposed interagency Policy Statement on allowances for credit losses. The supplemental instructions pertain to nonaccrual treatment of purchased credit-deteriorated (PCD) assets for the March 31, 2020 Call Report for banks that have PCD assets and have adopted the FASB Accounting Standards Update No. 2016-13 on the measurement of credit losses on financial instruments (Topic 326).

    For purposes of the March 31, 2020 Call Report, if an institution has adopted ASU 2016‐13 and has a PCD asset, including a PCD asset that was previously a purchased credit‐impaired (PCI) asset or part of a pool of PCI assets, that would otherwise be required to be placed in non-accrual status, the institution may elect to continue accruing interest income and not report the PCD asset as being in non-accrual status if the following criteria are met:

    • the institution reasonably estimates the timing and amounts of cash flows expected to be collected
    • the institution did not acquire the asset primarily for the rewards of ownership of the underlying collateral, such as use of collateral in operations of the institution or improving the collateral for resale

    The agencies plan to propose changes to the call report instructions to revise the nonaccrual treatment for PCD assets through the Paperwork Reduction Act process, which will include a request for comment. Call Reports are the source of the most current statistical data available for identifying areas of focus for on-site and off-site examinations. FFIEC 031 is the Call Report for a bank with domestic and foreign offices, FFIEC 041 is the Call Report for a bank with domestic offices only, and FFIEC 051 is the call report for a bank with domestic offices only and total assets less than USD 1 billion.


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    Keywords: Americas, US, Banking, Accounting, Credit Losses Standard, FFIEC 051, FFIEC 031, PCD Assets, Accounting Standards Update, CECL, US Agencies

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