Dear Board of Directors and Chief Executive Officer:
To more precisely measure each credit union’s financial condition, NCUA is planning several significant reporting changes to the 5300 Call Report and Profile. This letter describes additions and revisions scheduled for the next three Call Report cycles.1 We are providing notice well in advance to ensure you have sufficient time to prepare.
December 2012 Call Report Cycle
In May 2012, the NCUA Board adopted a final troubled-debt restructuring (TDR) rule and loan-workout guidance that eased requirements for modified and TDR loans.
Starting with the December 31, 2012 Call Report cycle, we will no longer require credit unions to report modified-loan information on the 5300 Call Report. This change affects the delinquency, charge-off and recovery, and specialized-lending schedules.
We replaced the modified-loan reporting requirements with reporting on TDR loans. Specifically, you are now required to report similar information exclusively on troubled-debt restructures.
March 2013 Call Report Cycle
We are making several changes to the March 2013 Call Report and Profile. The most significant changes are bulleted on the following page:
Delinquency, Charge-off, and Recoveries Reporting – We separated new and used vehicle loans from other loans. We also added fields for member and nonmember business-loan delinquency to match the business-loan categories on Schedule A, Section 4: Business Lending. The proposed categories include:
member business loans secured by real estate
member business loans not secured by real estate
nonmember business loans secured by real estate and
nonmember business loans not secured by real estate
We will continue to collect delinquency, charge-off and recovery data on agricultural loans and business construction and development loans.
Finally, we added fields to capture information on loans held for sale.
- Unfunded Commitments – We added categories for unfunded commitments for the same business-loan categories identified above.
- Purchased Credit Impaired Loans – We added a new section to Schedule A to capture the number of loans outstanding, contractual balance outstanding, nonaccretable balance outstanding, accretable yield outstanding, carrying value of loans, and loans charged off against valuation adjustment account year-to-date by various loan categories.
- Investments – We added fields to Schedule B to collect the book value and fair market value of investments used to fund employee benefit plans.
- Profile Regulatory – We revised the diversity questions to clarify reporting and Equal Employment Opportunity Commission filing requirements.
- Profile Programs and Services – We added several fields to collect types of remittance transfer services offered by the credit union to include international ACH transactions, low-cost wire transfers, and proprietary remittance transfers.
- Profile Grant Information – We added grant categories and a field to collect the type of grant received. This section of the Profile will be mandatory for all credit unions that receive grant funds starting with the March 2013 Call Report cycle.
June 2013 Call Report Cycle
Effective June 2013, we are revising the delinquent loan schedules on pages 7 and 8. Specifically, we clarified reporting requirements by changing delinquency categories from “months” to “days.”
June 2013 Delinquency Categories
1 to <2 months
30 – 59 days
2 to <6 months
60 – 179 days
6 to <12 months
180 – 359 days
12 months and over
>= 360 days
This change aligns our reporting with other federal regulators. More importantly, it eliminates confusion arising from differences in the number of days per month.
We recognize this change may require modifications of your data-processing systems; therefore, we wanted to notify you now so you can work with your vendor to be ready by June 2013.
The attached enclosure contains the proposed form for the December 2012 Call Report cycle. Additional information and reporting instructions will be available on our website at www.NCUA.gov
in the coming months.
Thank you for your cooperation in submitting your financial and statistical data promptly and accurately.
1 The changes are subject to approval by the Office of Management and Budget (OMB). You can email comments to NCUA at OCIOMail@NCUA.gov or mail comments to the OMB Reviewer at the Office of Management and Budget, Attn: Desk Officer for the National Credit Union Administration, Office of Information and Regulatory Affairs, Washington, DC 20503. You can view the Federal Register notice at www.OFR.gov.