New call report Schedule RI-C due April 30

Financial institutions with at least $1 billion in assets must include a new report with their quarterly call reports due to the FDIC on April 30.

The FDIC recently reminded institutions that they must include the new form, Schedule RI-C, Disaggregated Data on the Allowance for Loan and Lease Losses (ALLL) in the quarterly reports. The FDIC approved the addition in December and said in early March that institutions could provide “reasonable estimates” for amounts required in RI-C if the requested information wasn’t easily available for this particular call report.

Banks have not known about the new Schedule RI-C for an extended period of time, but short-notice call report additions are not a surprise, according to Sageworks analysts. The Financial Accounting Standards Board’s (FASB) Accounting Standards Update 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses (Topic 310), has prompted several changes surrounding disclosures requirements. These changes have included new, additional disclosures and updates to existing disclosures.

Financial institutions are challenged with limited resources to address how to properly structure the new reports to fit with their unique loan portfolio and ALLL methodology. Indeed, a recent poll of financial institutions participating in a Sageworks webinar on the subject found that 70 percent of respondents said the new disclosure reporting process is adding from a few days to a few weeks to their work.

Institutions harnessing third-party software for their ALLL calculation that allows for customizable reports have been the most effective and efficient at addressing these new requirements, according to Sageworks analysts.

The FDIC said call report forms and an instruction book update for March 2013 are available on its website and from the FFIEC website. 

To learn more about why the update was issued, what key items must be produced and what challenges the requirements present to financial institutions, download the whitepaper titled: 6 Key Items to Know About Disclosure Reports.