NCUA 5300
for Credit Unions
CUNA CFO Council 2014
Kevin Durrance
Texans Credit Union
1
Using the Instructions
• When in doubt, read the instructions.
• Always look for any changes to the
instructions and/or forms.
• Frequently asked questions can be
found on the NCUA website.
2
Historical Warnings Report
• “View Historical Warnings”: Real time (you no
longer have to submit to see these)
• You should carefully read and check these
warnings to identify if you have made an error.
• If you find any errors: Correct them.
3
Status of Call Report
•
•
•
•
•
Pending
Submit…..Processing…..Submitted
Under Review (no changes while here)
Validated (Available to public)
How to Correct……..when to correct?
– Take to pending, re-submit, must be “re-validated”
• There are 16 Cycles available for correction
4
“Prepping” for the Call Report
• Collecting the information:
– Make copies of individual schedules for
distribution to appropriate personnel.
– Insist on deadlines.
– Check for “reasonability”
– Always compare to the previous Call
Report.
5
“Prepping”
• Segregation of Duties and Exercising
Reasonable Controls.
• Use the Working Copy of the Call
Report.
• Building Spreadsheets
• KEEP ALL BACKUP!
6
STATEMENT OF FINANCIAL CONDITIONS
Assets
Cash and Cash Equivalents
1. Cash on Hand. Includes the change fund (change fund includes
coin and currency), vault cash, vault funds in transit, currency
supply for automatic teller machines (ATMs).
2. Cash on Deposit (Amounts Deposited in Financial
Institutions). Includes balances on deposit in financial institutions
and deposits in transit. These amounts may or may not be subject
to withdrawal by check and may not bear interest. Examples
include overnight accounts at a bank or corporate credit union,
corporate credit union daily accounts, and checking / money
market accounts.
2A = Corporate Credit Unions
2B = Other Financial Insitutions
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Assets
Cash and Cash Equivalents
3. Cash Equivalents. Cash equivalents include short-term highly
liquid investments:
1. with original maturities of 3 months or less (at the time of
purchase)
2. readily convertible to known amounts of cash
3. used as part of the CU’s cash-management activities
Examples of highly liquid investments include Fed Funds Sold and
Certificates of Deposit.
However, if the asset is a security (as defined by GAAP), it is reported
on lines 4, 5, or 6 regardless of whether it has the characteristics of a
cash equivalent.
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Investments
4. Trading Securities. Report the amount of investments that were bought
and are held principally for the purpose of selling in the near term. This
account should reflect frequent buying and selling. Report these
investments at fair value. These must be reported based on maturity or
call, not on the basis of intent to sell.
5. Available for Sale Securities. Report the amount of ASC 320 (formerly
SFAS 115) investments that your credit union has classified as available
for sale. Report these investments at fair value.
6. Held-to-Maturity Securities. Report the amount of investments that the
credit union has the positive intent and ability to hold to maturity. Report
these investments at amortized cost. Include all ASC 320 investments
that are not classified as either available for sale or trading. Do not report
investments which are not subject to ASC 320. (Do not include Cash
Equivalents, Cash on Deposit, CLF Stock, or shares, deposits, and
certificates invested in other financial institutions.)
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7. Deposits in Commercial Banks, S&Ls, Savings Banks.
Report the amount of deposits in commercial banks, savings
and loan institutions and savings banks at their remaining
maturity. Do not include those short-term investments that are
reported on line 2 as Cash on Deposit or on line 3 as Cash
Equivalents, or negotiable certificates of deposits reported on
lines 4, 5, or 6 as securities. (Example for #7: SimpliCD’s.)
8. Loans to and investments in Other Natural Person Credit
Unions. (Do Not include Corporate Credit Unions) Do not
report short term items that are reported elsewhere (such as
Cash Equivalents). Normally, these are certificates “invested”
in another natural person credit union. Any loans reported here
must qualify as an investment. “True” written loans should be
reported under loans.
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9. Membership Capital at Corporate Credit Unions /
Nonperpetual Capital Accounts. Report the total of
Membership (MCS) and nonperpetual Capital Accounts (NCA)
at a Corporate Credit Union (as defined in 704.2). The
Membership Capital (MC) may also be called the Permanent
Capital Base (PCB) or Permanent Capital Shares (PCS). Must
be reported in the 1-3 year range (NCUA 702.105).
10.Paid-in Capital at Corporate Credit Unions / Perpetual
Contributed Capital. Report the total of Paid-in Capital (PIC)
and Perpetual Contributed Capital (PCC) at a Corporate Credit
Union (as defined in 704.2). Must be reported in the 1-3 year
range (702.105).
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11. All Other Investments in Corporate Credit Unions. Report the amount
of all corporate credit union investments, excluding MCS, PIC, NCA, PCC,
MC, PCB, PCS of Corporate Credit Unions reported in lines 9 and 10, at
their remaining maturity. Do not report amounts reported as Cash on
Deposit on line 2 A or B, or Cash Equivalents on line 3 above. (EX:
Corporate Certificates)
12. All Other Investments. Report the amount of all other investments not
included in lines 4 to 11. Do not report amounts reported as Cash on
Deposit on line 2 A or B, or Cash Equivalents on line 3 above. Include
CLF stock, FHLB stock, common trust investments, and any other
investments not listed above in the same maturity classification as shown
in the WAL Investment Schedule. An investment not listed in the schedule
should be reported at their remaining maturities. (CFL and FHLB stock
should be reported in the 1-3 year bucket.). Do not include loans to and
investments in CUSO’s. Report loans to and investment in CUSO’s on line
32 C…..which is “All Other Assets”.
13. Total Investments. Sum of lines 4 to 12.
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14. Loans Held for Sale. Report the amount of outstanding loans either
identified for sale at origination or subsequently for which there has been a
decision to sell. Do not include these balances in lines 15-24, Loans and
Leases.
o If the credit union originated any real estate loans year-to-date
classified as Loans Held for Sale, complete the Real Estate Loans,
Section 2 on Schedule A – Specialized Lending (non-real estate
would be reported on the Section 3 on Schedule A).
o If the credit union originated any member business loans year-todate classified as Loans Held for Sale, complete the Business
Loans, Section 4 on Schedule A – Specialized Lending.
o Loan commitments to originate (interest rate lock commitments) or
acquire (forward loan sales commitments) mortgage loans that will
be resold as part of the credit union’s mortgage banking operations
are derivatives and must be recorded at fair value in Other Assets
(Page 2, line 32 C) or Other Liabilities (Page 3, line 8).
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16
Loans and Leases
Collateral Codes: Loans are to be reported by collateral code. For example, if a
new or used vehicle is secured by real estate, i.e., home equity loan, include it
with real estate loans.
If a member business loan or business purpose loan is secured by real estate, it
should be reported as a real estate loan. Otherwise, report business loans on
the Total All Other Loans / Lines of Credit line.
Report the portion of any loan participation or purchase that remains on the credit
union’s balance sheet according to the applicable collateral code.
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Interest Rates: Report loan interest rates being offered as the
reporting period for each loan category. Report the actual rate (i.e.,
6.5% = 6.5). If more than one rate applies, report the most common
rate in each category. (Not the aggregate weighted rate.)
For each loan category, report only those loans which have an
outstanding balance. Loans reported should be shown net of loan
origination fees (costs) which shall be recognized over the life of the
related loan as an adjustment of yield. Loan fees, certain direct loan
origination costs, and purchase premiums and discounts on loans
shall be recognized as an adjustment of yield generally by the interest
method based on the contractual terms of the loan.
Participation Loans: Report the number of individual loans in each
pool – not the number of pools.
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15. Unsecured Credit Card Loans. Include the rate, number and dollar amount of
outstanding credit card loans.
16. All Other Unsecured Loans / Lines of Credit (other than credit cards). Include
the rate, number and dollar amount of outstanding unsecured loans and lines of
credit other than credit card loans. Also, report overdrawn share draft accounts
here (EX: “courtesy pay” or “bounced check protection” – extension of credit).
17. Short-Term, Small Amount Loans (STS) FCU only: Do not include these
with “All other Unsecured Loans” (unless you are a state chartered CU).
STS amount loans are alternatives to predatory payday lending loans and permits
FCU’s to offer a higher interest rate. These are closed-end, fully amortizing loans
that are between $200 and $1,000; with a min. maturity of 1 month and a
maximum of 6 months.
The application fee may be no greater than $20 and a maximum of 20% of net
worth may be in this type of loan. (Other restrictions apply – 1 at a time per
member, no more than 3 during a 6 month rolling period per member, minimum
length of membership of at least one month, etc.)
18. Non-Federally Guaranteed Student Loans: Report non-federally guaranteed or
“private” student loans. If guaranteed and granted prior to July 1, 2010 (Stafford,
Perkins, PLUS) report in “All Other Loans” below (#24).
19. New Vehicle Loans. Include the rate, number, and dollar amount of new vehicle
loans where the new vehicle is pledged as security. (ATV’s, RV’s, and boats are
NOT reported here, but should be included in Line 24 below)
20. Used Vehicle Loans. Include the rate, number and dollar amount of used vehicle
loans where the used vehicle is pledged as security.
21. Total 1st Mortgage Real Estate Loans / Lines of Credit. Include the rate,
number, and dollar amount of outstanding loans and lines of credit secured by a
first lien on property. Include member business loans secured by real estate.
22. Total Other Real Estate Loans / Lines of Credit. Include the
rate, number, and dollar amount of outstanding real property
loans and lines of credit secured by an interest on the property
other than a first lien. Typically, this would include home equity
and second mortgage loans. Include member business loans
secured by real estate in a junior position.
If the credit union has any real estate loans outstanding (i.e., if
there is an amount reported on lines 21 or 22) or if the credit union
has originated any real estate loans during the reporting period,
complete Schedule A – Specialized Lending. If the credit union
has any member business loans outstanding or has originated any
member business loans during the reporting period, complete
Schedule A – Specialized Lending.
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23. Leases Receivable. Include the rate, number, and dollar
amount of outstanding direct financing leases as defined by
GAAP (credit union is lessor). Credit unions that lease personal
property such as vehicles to members make direct financing
leases.
24. Total All Other Loans / Lines of Credit. Include the rate,
number and dollar amount of outstanding loans not already
included in lines 15 to 23. Typically, this would include member
business loans and business purpose loans (including
agricultural loans) not secured by real estate, share secured
loans, guaranteed loans, federally guarantee student loans (prior
to July 1, 2010), etc. Here is where you would also report loans
secured by ATV’s, RV’s, and boats.
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25. Total Loans & Leases. Sum of line 15 to 24. Loans to other
credit union should normally be excluded from Total Loans and
reported as an investment.
26. Allowance for Loan & Lease Losses. Amount set aside to
absorb possible losses on loans and leases (excludes the
Regular Reserve).
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Other Assets
27. Foreclosed and Repossessed Assets. Report long-lived assets
intended for sale and acquired through, or in lieu of foreclosure or
repossession in the applicable category (i.e. Real Estate, Autos, or Other).
Initially record the asset at fair value (less costs to sell) at the date of
foreclosure or repossession. The FV (less cost to sell) becomes the “cost” of
the foreclosed or repossessed asset. The amount, if any, by which the
recorded amount of the loans exceeds the FV (less costs to sell) of the asset
is a loss which must be charged off to the ALLL at the time of the foreclosure
or repossession.
After foreclosure or repossession, re-value the assets periodically to the lower
of “carrying amount” or FV (less costs to sell) through a separate valuation
account. Changes in the valuation allowance are included in net expenses
from foreclosed and repossessed assets. If a long-lived assets is not sold
shortly after it is received, any declines in value after foreclosure and any
gain or loss from the sale or disposition of the asset shall NOT be reported as
a loan loss or recovery and shall NOT be debited or credited to the ALLL.
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# 27: Foreclosed / Repossessed Assets
•
•
•
•
A: Real Estate
B: Automobiles
C: Other
D: The Total
Losses and Declines in Value
What do you report in “Misc. Operating
Expenses” and what do you report in the
“Gain/Loss of Fixed Assets”?
Losses / Declines in FV
(after initial hit to ALLL)
• If writing down an OREO once on the
books of the credit union (after the initial
hit to ALLL); further declines in value (by
revaluing the OREO) actually hit Misc.
Operating Expenses (Page 5 line 29).
28. Land and Building. Land and building, less
depreciation on building, if any.
29. Other Fixed Assets. All other fixed assets such as
furniture and fixtures, and leasehold improvements,
less related depreciation, if any. In addition, include
“leased assets under capital lease”. (Credit union is
leasing assets and granted a lease from an outside
entity.)
30. NCUA Share Insurance Capitalization Deposit
(NCUSIF). Enter the amount of the National Credit
Union Share Insurance Fund deposit.
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INTANGIBLE ASSETS
31. a: Identifiable Intangible Assets: Report the amount of indentifiable
intangible assets obtained through a merger or other business combination.
31. b: Goodwill: An asset representing the future economic benefits arising
from other assets acquired in a business combination that are not individually
identified and separately recognized.
31. c: Total Intangible Assets: The total of 31-a and 31-b.
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32. Other Assets (A,B,C). Report accrued interest on loans (A) and accrued
interest on investments (B) separately. All other Assets (C) include
prepaid expenses, accounts receivable, loans to and investments in
CUSOs, purchased participations with substantial recourse (not qualifying
for "true sales accounting"), and any other assets not previously included.
Report any private insurance capitalization deposit here. Any investments
purchased and identified to fund deferred compensation agreement
obligations must be reported in the Investment Schedule on Page 1 of the
Call Report. If this amount includes loans or investments to CUSOs,
complete Schedule C – CUSO Information –and- the Profile Form
(NCUA Form 4501A).
If the credit union wholly owns the CUSO or owns the majority of the
CUSO (controlling interest), the CUSO should not be reported as an
asset. Rather, the CUSO’s books and records should be consolidated
with the credit union’s in accordance with GAAP. Complete Schedule C –
CUSO Information, regardless of the ownership interest.
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32 – D
Non-Trading Derivative Assets
•All Non-Trading Derivative assets, net
exclusive or inclusive of accrued interest.
•You must complete Schedule D (Derivatives
Transaction Report)
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• 32 E: is the total of “other assets”
(A + B + C + D)
• 33: Total Assets. Sum of all assets.
This must also equal the sum of
Liabilities, Shares, and Equity.
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34: Loans Granted Year-to-Date: Report the number and dollar
amount of loans granted year-to-date. Include all loans of all types
granted including real estate loans sold on the secondary market.
Count each line of credit as a single loan granted if one or more
advances were made on that line year-to-date, even if it is an existing
LOC approved in a previous year. For all other loans, report each new
loan or refinanced loan as a loan granted. The dollar amount should
include all new advances and all balances which were refinanced.
Report the number and the portion (amount) of Participation Loans
participated in or retained by the credit union.
34-a (FCU’s only): Report Short-term small dollar amount (STS) loans
granted year-to-date. (These should also be included in #34 “Loans
Granted YTD)
35. Non-Federally Guaranteed Student Loans in Deferred Status: Report
the number and dollar amount of non-federally guaranteed student loans
in deferred status.
36. Loans Outstanding to Credit Union Officials and Senior Executive
Staff. Report the number and dollar amount of all loans to credit union
officials, including the board of directors, committee members and senior
executive staff (credit union’s chief executive officer typically titled as
President or Treasurer / Manager, any Assistant Chief Executive Officer,
e.g. Assistant President, any Vice-President, any Assistant Treasurer /
Manager and the Chief Financial Officer). The dollar amount should be
the total outstanding loan balances as of the current report date.
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Liabilities, Shares and Equity
Liabilities - Borrowings
1. Draws Against Lines of Credit: Report the amount of borrowed funds from
all sources of credit in the appropriate stated time frames. (Includes
Corporates, FHLB LOC’s, etc.)
2. Other Notes, Promissory Notes, and Interest Payable: Report by maturity
the amount of all promissory notes, certificates of indebtedness and all other
notes and interest payable. This includes borrowings from the FRB Discount
Window, other government agencies –and- installment loans from the
Corporate CU. Do not include draws reported in the line above.
3. Borrowing Repurchase Transactions: Report by maturity the amount of all
borrowing repurchase transactions.
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Special instructions for lines 4 and 5, Subordinated Debt and SD included in
Net Worth:
In accordance with Section 702.2(f)(4): permits only qualifying Section 208 assistance
with a remaining maturity in excess of 5 years to be reported as Subordinated Debt
included in Net Worth.
4: Subordinated Debt that cannot be counted towards Net Worth (that part that has
less than 5 years to maturity).
5: Subordinated Debt included in Net Worth (that part of the SD with a maturity of
greater than 5 years or Uninsured Secondary Capital ( for low income designated
credit union). SD in NW has a "cliff" of 5 years.
Buckets are now: <1 year; 1-3 years; and > than 3 years
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5.
#5 will also include: This line item will also include "Uninsured
Secondary Capital" that can still be counted towards Net Worth.
However, "Uninsured Secondary Capital" is for low-income designated
credit unions only. (The "Miscellaneous Information" - Page 6, #9
contains more detail on this item. However, the percentages that count
toward net worth and the percentages that do not are contained in the
instructions in this area.) Again, this is for "low income designated
credit unions only pursuant to 701.34(c).
6.
Total Borrowings (each column).
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New #7
“Non-Trading Derivatives Liabilities”
• Include all non-trading derivative
liabilities, net exclusive or inclusive of
accrued interest.
8. Accrued Dividends / Interest Payable on Shares / Deposits.
Accrued dividends and interest declared but not yet distributed.
9. Accounts Payable and Other Liabilities. Other liabilities not
listed above (including, but not limited to, taxes payable,
undistributed payroll deductions, draft clearings and unposted
suspense items).
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Shares / Deposits
Dividend / Interest Rates: Report the rate paid on these credit union share
accounts as of the last date of the reporting period. Input the actual rate (i.e.
6.5% = 6.5). In situations where more than one rate applies, use the most
common rate according to the dollar volume of business. Report the rate even if
the share program is no longer offered as long as there are outstanding member
deposits as of the reporting date.
Deposit Account Sweeps Affecting Transaction and Non-Transaction
Accounts: In an effort to reduce their reserve requirements, some credit unions
have established sweep arrangements that involve transfers of member deposits
between two sub-accounts. One sub-account is a transactional account (subject
to reserve requirements) and the second a non-transactional account (such as a
money market account). The credit union shifts funds from the transactional
account to the non-transactional account or vice versa. The Call Report should
reflect the position of the swept funds at the end of the reporting period, and
should match reporting on the FR 2900. (IF YOU HAVE A SWEEP PROGRAM,
IT IS IMPORTANT THAT IT QUALIFIES. READ THE INSTRUCTIONS TO THE
CALL REPORT!!!!!!)
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Shares / Deposits (cont)
Overdrawn Accounts: Overdrawn or Negative share account balances should
NOT be reported here.
Why?
Because it mis-states your total share accounts.......
If you overdraw an account as an extension of credit (whether by intent - as part
of an organized courtesy pay program or an "informal" courtesy pay program - or
by "accident"), you have created a negative share account.
Adding NEGATIVE SHARES will mis-calculate your total shares.......
SO, WHERE DO THEY GO?????
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This section should be filled out to indicate the remaining maturity of credit union
savings accounts. For savings with an adjustable rate, the maturity reported
should be the earliest of the next rate change date or actual remaining maturity.
10. Share Drafts. Report the rate, number and dollar amount of credit union
share drafts. Overdraft balances should be reported on Page 2, line 16 (All
Other Unsecured Loans / Lines of Credit).
11. Regular Shares. Report the rate, number and dollar amount of credit
union regular shares, including regular share Christmas, vacation, and
other club accounts.
12. Money Market Shares. Report the rate, number of accounts, and
outstanding balance of all credit union money market shares.
13. Share Certificates. Report the rate, number of accounts, and outstanding
balances of credit union share certificates by remaining maturity.
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14. IRA/KEOGH Accounts. Report the rate, number of accounts, and
outstanding balance of credit union IRA/KEOGH accounts by maturity
(including both regular IRA/KEOGH accounts and IRA/KEOGH
certificates).
15. All Other Shares. Report the rate, number of accounts, and outstanding
balance of all other credit union shares not already included in lines 10 to
14 above by maturity. (Such as Escrow Accounts) Include HSA’s on this
line.
16. Total shares. Sum each of the columns by maturity, and the number of
accounts. Do not include non-member deposits.
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17. Non-Member Deposits (including Brokered Deposits). Report the rate,
number of accounts, and outstanding balance of non-member deposits,
including brokered deposits by maturity.
18. Total Shares and Deposits (each column). Sum each of the columns by
maturity including non-member deposits and the total number of accounts.
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Additional share information (already reported above):
19. Accounts Held by Member Government Depositors. Report the
outstanding balances of all accounts held by member government
depositors.
20. Accounts Held by Non-Member Government Depositors. Report the
outstanding balances of all accounts held by non-member government
depositors.
21. Employee Benefit Member Shares and Deposits. Report the
outstanding balances of shares of an employee benefit plan held by the
credit union. A credit union that is not adequately or well capitalized may
not accept such deposits.
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22. Employee Benefit Nonmember Shares and
Deposits. Identical to the above, except nonmembers.
23.
529 Plan Member Deposits. Report the outstanding
balances of all 529 Plan Deposits held by the credit
union.
24. Non-dollar Denominated Shares and Deposits.
Report the outstanding balances of all non-US dollar
denominated accounts. These MUST be valued and
listed in US dollar equivalent according to the 12:00
PM Federal Reserve Exchange rates on the last
working day of the end of the quarter. (FRB-NY)
25. Health Savings Accounts. Report the outstanding
balances of all HSA accounts.
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26. Dollar Amount of Share Certificates equal to or greater than $100,000
(excluding brokered share certificates participated out by the broker
in shares of less than $100,000). Report the total outstanding balances
of all certificates equal to or greater than $100,000.
27. Dollar amount of IRA/Keogh Accounts equal to or greater than
$100,000. Report the total outstanding balances of all IRA/Keogh
Accounts that are equal to or greater than $100,000 (This includes both
IRA shares –AND- certificates.)
28. Dollar Amount of Share Drafts Swept to Regular Shares or Money
Market Accounts as Part of a Sweep Program. List the dollar amount
that the credit union actually transferred to qualify as having a legitimate
sweep program with the Federal Reserve.
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29.Dollar Amount of Business Share Accounts: Report the total
amount of business share accounts. (Do not include Trust
Accounts) These can be corporations, LLC’s, companies, and/or
individuals “Doing Business As” (“DBA’s”)
30.Dollar Amount of Negative Shares Included in “All Other
Unsecured Loans/LOC on page 2: Report the total amount of
negative shares included in all other unsecured loans/lines of
credit on page 2.
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Equity
31. Undivided Earnings. Represents the accumulated surplus net income
remaining after the books have been closed.
32. Regular Reserves. Statutory reserves as required by NCUA or the State
Supervisory Authority. The amount reported here should not include the
Allowance for Loan & Lease Losses account.
33. Appropriation for Non-Conforming Investments (SCU Only). Reserves
set aside from Undivided Earnings to cover the excess of Book Value over
Fair Value for investments not authorized by NCUA (part 703). Required
in accordance with NCUA Rules and Regulations Part 741.3(a)(2). This
account is only necessary for reporting reserves for non-ASC 320
investments and ASC 320 investments classified as Held to Maturity.
34. Other Reserves. Include any reserves originating from undivided
earnings not reported elsewhere. Any amounts the credit union reports
here must have been first closed into Undivided Earnings from Net
Income.
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35. Equity Acquired in Merger. The acquisition date fair value of equity
interests acquired in the acquisition(s) of another credit union(s) as
measured consistent with GAAP
36. Miscellaneous Equity. Include any equity not reported elsewhere that did
not originate from net income and was not closed into undivided earnings.
For example, donated equity accounted for under regulatory accounting
practices.
37. Accumulated Unrealized Gains (Losses) on Available for Sale
Securities. Report unrealized and unrecognized gains and losses (net)
on securities that are classified as available for sale.
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38. Accumulated Unrealized Losses for OTTI (Due to Other Factors) on
HTM Debt Securities. Report the cumulative amount of the total
remaining unrealized losses for OTTI due to other market factors on HTM
debt securities. Such amounts must be appropriately displayed
(disclosure only, not an actual expense entry on the Income
Statement) through either a previous, or current period’s, Statement of
Income Item 14b.
39. Accumulated Unrealized Net Gains (Losses) on Cash Flow Hedges.
Report the effective portion of the accumulated change in fair value (gain
or loss) on derivatives designated and qualifying as cash flow hedges in
accordance with ASC 815, “Derivatives and Hedging” (formally SFAS 133,
“Accounting for Derivative Instruments and Hedging Activities”).
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40. Other Comprehensive Income. Report any items of other
comprehensive income that are not already included above. An example
of Other Comprehensive Income would include amounts related to single
employer defined benefit postretirement plan (such as pension, health,
etc.).
41. Net Income. The amount remaining after all expense have been met or
deducted prior to being transferred to the Undivided Earnings account. Do
not report net income which has been closed to Undivided Earnings.
42. Total Liabilities, Shares, and Equity. Sum of liabilities, shares and
equity. Must equal Total Assets.
If the credit union has any unused commitments, loans sold or
swapped with recourse, or pending bond claims, complete Page 10 –
Liquidity, Commitments and Sources.
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NCUA Insured Savings Computation (Part 745)
A. Uninsured IRA and Keogh Member. Report only the amount of
uninsured member shares and deposits. (Insured to $250,000 per legally
determined individual member account.)
A1 Uninsured KEOGH Member Shares for Employee Benefit Plans:
Keogh accounts established by an employer as part of an employee benefit
plan…insured up to only $250,000 per legally determined individual member
account.
B. Uninsured Employee Benefit Member Shares and Deposits. Report
only the amount of uninsured.
C. Uninsured Member 529 Plan Deposits. Report uninsured amount.
D. Uninsured Accounts Held by Member Government Depositors.
Report only the amount of uninsured ($250,000).
E. Uninsured All Other Member Shares and Deposits. Report only the
amount of uninsured.
F. TOTAL UNINSURED MEMBER SHARES AND DEPOSITS.
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G. Uninsured Nonmember Employee Benefit Member Shares and
Deposits. Report only the amount of uninsured (Insured up to $250,000
per legally determined individual non-member account).
H. Uninsured Accounts Held by Nonmember Government Depositors.
Report only the uninsured amount.
I.
Uninsured All Other Nonmember Shares and Deposits. Report only
the uninsured amount.
J. TOTAL UNINSURED NONMEMBER SHARES AND DEPOSITS.
K. TOTAL UNINSURED SHARES AND DEPOSITS.
L. TOTAL INSURED SHARES AND DEPOSITS (The total insured shares is
the amount on which the operating fee and the NCUSIF deposit is based.)
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Income and Expenses
• This is your basic Income Statement.
– Interest Income and Interest Expense
– Non-interest income and expense.
• Must ALWAYS be YEAR-TO-DATE
figures. (From January 1st to the current
quarter-end date.)
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Interest Income
1. Interest on Loans. Income earned from interest on loans and recognition
of deferred loan fees and costs. Interest should not be accrued on loans
90-days or more delinquent. (Interest should be reversed when the loan is
determined to be a loss –or- when 12 months delinquent – whichever first.)
Discuss Final rule change (741) and associated IRPS (APP. “C”).
2. Interest Refunded. Loan interest income refunded to borrowers.
3. Income from Investments (Including Interest and Dividends). Interest
and dividends earned from all investments. Include income earned on
Cash on Deposit and Cash Equivalents. Do not include any realized or
unrealized gains/losses from trading securities. Do not include gains or
losses resulting from the sale of investments. Do not include
unconsolidated CUSO income.
4. Trading Profits and Losses. Report gains and losses on trading
accounts both from the sale of trading securities and from unrealized
holding gains and losses. Do not include gain (loss) from sale of any
investments except those that are held for trading. (Line 14)
5. Total Interest Income. Sum of lines 1 to 4.
57
Interest Expense
6. Dividends on Shares. Dividend “expense” incurred for all classes of
shares year-to-date.
7. Interest on Deposits. This question is for state chartered credit
unions only. Interest on all deposits year-to-date.
8. Interest on Borrowed Money. Interest cost for borrowed money from all
sources including certificates of indebtedness. Low-income designated
credit unions should include interest costs associated with secondary
capital accounts.
9. Total Interest Expense. Sum of lines 6 to 8.
10. Provision for Loan & Lease Losses. Expense recorded to maintain the
Allowance for Loan & Lease Losses account.
11. Net Interest Income After Provision for Loan & Lease Losses. Amount
on line 5 less amount on line 9 less amount on line 10.
58
Non-Interest Income
12. Fee Income. Fees charged for services (i.e., overdraft fees, ATM fees, credit card
fees, etc.). DO NOT NET EXPENSES, report only gross income.
13. Other Operating Income. Operating income other than the types designated in
lines 1 to 4 and line 12. Include dividends from the NCUSIF, income or loss derived
from selling real estate loans on the secondary market, interchange income, and
unconsolidated CUSO income.
14. Gain (Loss) on Investments. Use this account to report the resulting gain (loss)
from the sale or disposition of all investments except trading accounts (line 4).
Report losses on MCS and PIC at the CCU. In addition, use this account to report
declines in fair value that are other than temporary (OTTI) for securities classified as
either “available for sale” or “held-to-maturity.” However, report only the credit loss
portion of OTTI on this line. All other losses related to OTTI must be reported on the
balance sheet under Accumulated Unrealized Gain (Losses) on AFS Securities or
Accumulated Unrealized Losses (Due to Other Factors) on HTM Securities.
59
14-A: Total OTTI Losses: In periods in which a credit union determines that a debt
security’s decline in fair value below its amortized cost basis is OTTI, the credit unions
shall present the total decline to full fair market value as an OTTI in the statement of
earnings. Include both the amount relating to credit losses and the amount due to other
factors for disclosure purposes only.
14-B: Less: Portion OTTI Losses in Other Comprehensive Income: Report the
amount of current period OTTI included in item 14-A due to other factors. The portion of
OTTI due to other factors on HTM debt securities must also be recognized in the other
comprehensive income portion of Accumulated Unrealized Losses for OTTI (Due to
Other Factors) on HTM Securities, Balance Sheet Item 36.
14-C: OTTI Losses Recognized in Earnings (Included in Item 14): Report the
difference between Item 14-A and 14-B. This difference represents the amount of current
period OTTI due to credit losses. This total should be reflected in Item 14.
New 14-D
• Gain (Loss) associated with the Hedged
Item (Investments) in a Non-Trading FV
Derivatives Hedge (include in line item
14)
New 15
Gain (Loss) on Non-Trading Derivatives
The gains or losses associated with
derivatives activities exclusive of interest
and premium amortization. Gains and
losses will be the change in FV for the
period for non-designated transactions,
Fair Value designated transactions and the
ineffectiveness of Cashflow hedging
transactions.
Non-Interest Income (Continued)
16. Gain (Loss) on Disposition of Fixed Assets. Income or expense resulting from the
sale or other disposition of fixed assets. This would include gains and / or losses on
the sale of foreclosed and repossessed property.
17. Gain from Bargain Purchase (Merger). List any applicable gain as the result of a
bargain purchase of another credit union.
18. Other Non-Operating Income (Expense). Miscellaneous non-operating income or
expense. Should include such items as gifts, donations received, and contribution
income, such as grants.
19. Total Non-Interest Income. Sum of lines 12 to 18.
63
Non-Interest Expense
20. Employee Compensation and Benefits. Salaries, reimbursement to
sponsor when credit union employees are on the sponsor’s payroll,
benefits, pension plan costs, and employer’s taxes.
21. Travel and Conference Expense. Authorized expenses incurred by
officers, directors, and employees for travel, attendance at conferences and
other meetings.
22. Office Occupancy Expense. Expenses related to occupying an office
including office rents, utilities (gas, electric, etc.), building depreciation, real
estate taxes, building maintenance, and amortization of leasehold
improvements.
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Non-Interest Expense
23. Office Operations Expense. Expenses related to the operation of an
office including communications, stationery and supplies, liability
insurance, bond insurance, furniture and equipment rental and / or
maintenance and depreciation, bank charges, in-house electronic data
processing cost, etc.
24. Educational and Promotional Expense. Advertising, publicity, and
promotions.
25. Loan Servicing Expense. Collection expenses, recording fees, credit
reports, credit card program expenses, loan servicing fees.
26. Professional and Outside Services. Legal fees, audit fees, accounting
services, consulting fees, and outside electronic data processing servicing.
65
27. Member Insurance. Total of all Expenses (acct 310)
a. NCUSIF Premium Assessments
b. Temporary Corporate CU Stabilization (TCCUS) Assessments
by the NCUA Board
c. Life savings, borrower’s protection, share insurance, and other
member insurance.
d. TOTAL MEMBER INSURANCE
28. Operating Fees. Annual operating / supervision fee assessed by NCUA
or the state supervisory authority. (Not the NCUSIF premium reported
above)
29. Miscellaneous Operating Expenses. Expenses not covered by lines 20
to 28, including cash over and short, annual meeting expenses,
association dues, etc. (Valuation of OREO's per RAP)
66
30. Total Non-Interest Expense. Sum of all operating expenses, 19 to 28.
31. Net Income (Loss). Net Income (Loss) The bottom line..
Reserve Transfers
32. Transfer to Regular Reserve. Income earned year-to-date which was
transferred to the Regular Reserve account.
33. NET INCOME (LOSS) EXCLUDING NCUSIF PREMIUMS AND
TEMPORARY CORPORATE CREDIT UNION STABILIZATION FUND
ASSESSMENT REPORTED ON LINES 27a and 27b. What is your net
income if you add back the NCUSIF premiums and the TCCUSF
assessments????? (So, you will add 27a and 27b back to income to
derive this figure.)
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Miscellaneous Information
68
1. Excess Deposit Insurance. If the credit union has
share and/or deposit insurance coverage in addition to
the coverage provided by the National Union Share
Insurance Fund, answer this question “yes.” If yes,
provide the name of the insuring company and the total
dollar amount of shares and/or deposits insured by
company. Do not include Life Savings and
Borrowers’ Protection Insurance. Do Not include
Surety Bond Coverage.
2. Number of Current Members. Report the number of
credit union members. Report the actual number of
members, not the number of accounts.
69
3. Number of Potential Members. Report the
number of potential credit union members.
Include current members in this estimate. The
estimate of potential members must be
reasonable and supportable.
4. Number of Credit Union Employees.
A.Report the number of full-time (26 or more
hours) employees
B.Report the number of part-time (25 or less
hours) employees
70
5. Aggregate Capital and Operating Lease Payments on
Fixed Assets Report the remaining dollar amount of the lease
obligation (Do not discount or calculate the present value of
future cash flows).
6. Has the credit union completed a merger or acquisition
that qualifies for Business Combination Accounting (FAS
141R) after January 1, 2009?
If you answer “Yes”, and you must complete line #7 on
Page 11 (which is the “PCA Net Worth Calculation
Worksheet”). This breaks out the adjusted retained
earnings acquired through business combinations so
that it counts towards your Net Worth.
71
7. Transactional Website Usage. Report the number of
members (not the number of transactions) using your
transactional website. Do not answer this question if the
website is not a transactional type website.
8. Expansion. Does the credit union intend to add any new
branches or expand existing facilities in the next 12 months?
72
9.
Uninsured Secondary Capital.
This account is for low-income designated credit unions only. Report the portion
of Subordinated Debt included in Net Worth reported on page 3, line 5 that
represents Uninsured Secondary Capital. In accordance with Section 701.34(c)
of the NCUA Rules and Regulations, the amount reported as Uninsured
Secondary Capital is dependent upon the remaining maturity.
The portion that may not be included in Net Worth should be reported on page 3,
line 4.
73
#9 (Continued):
The amount reported as Uninsured Secondary Capital is dependent upon the
remaining maturity as a percentage of the amount borrowed.
Report these accounts based on the following sliding scale:
Remaining Maturity
Amount to Report on Line 9,
Uninsured Secondary Capital
Percentage of Amount Borrowed:
Greater than 5 years
4 to less than 5 years
3 to less than 4 years
2 to less than 3 years
1 to less than 2 years
Less than 1 year remaining maturity
100%
80%
60%
40%
20%
0%
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10. Amount of Grants Awarded to Your Credit Union YTD: Have you been
"awarded" any grants? If so, report the dollar amount here.
11. Amount of Grants Received by Your Credit Union YTD: If you have
received any grants YTD, report the dollar amount here.
12. Number of International Remittances Originated YTD: Report the
number.....these are generally wire transfers and ACH. (12 CFR 1005.30)
75
Delinquent Loans
76
77
Delinquent Loans
DO NOT INCLUDE:
Loans already written down to fair value
(difference charged-off against ALLL)
through a “decision to sell” and/or
otherwise transferred to a “loans held for
sale” (LHFS) classification
Loans that the credit union has already
written down to the fair value of the
collateral e.g., loans in process of
liquidation and transferred to
“Foreclosed and Repossessed Assets”.
(The credit union has the collateral)
78
Delinquent Loans
“a” = number of delinquent loans
“b” = amount of delinquent loans
1-9: Delinquent Loans by Collateral Type. Report the total number
and outstanding loan balance of all delinquent loans and leases by
categories, even if serviced by an outside processor.
10 (a) and (b): Total Delinquent Loans (by number and by amount)
79
Troubled Debt Restructured
A TDR is a loan whose terms have been modified by the credit union for
economic or legal reasons related to the debtor’s financial
difficulties, grants a concession to the member that it would
otherwise not consider
This normally provides for a reduction in interest and/or principle, a
change in accrued interest, an extension of the maturity; however, there
are other ways to arrive at a TDR. For example, the FMV of interest rate
versus extension of loan
See FAS No 2011-02 (April 2011): Receivables (Topic 310).
A loan extended or renewed at a stated interest rate equal to the current
interest rate for new debt with similar risk is not considered a TDR.
80
FINAL Rule on TDR’s
Part 741 (IRPS Appendix C) as it
applies to DQ reporting
• TDR DQ will be calculated according to
the new restructured terms. (“…past
due status will be calculated consistent
with loan contract terms, including
amendments made to loan terms
through a formal restructure.”)
• May use the “90% rule” (Consumer non-business loans ONLY)
HOWEVER…..
• CU’s cannot just “kick the can down the road”
“….restructuring activity that pushes existing
losses into future reporting periods without
improving the loan’s collectability…”
• MUST HAVE POLICY IN PLACE! (Sound
controls, appropriately structured, etc.)
Workouts and Monitoring
• Decisions based on borrower’s “renewed
willingness and ability to repay…”
• Eligibility
• Limitations on the number of times a loan
may be restructured (example: once a year,
twice in five years to qualify for the rule).
• Re-aging, Extensions, Renewals, Rewrites,
Deferrals
As of June 2013 Call Reports and DQ
• USE DAYS (not months): 60 days and
over is considered reportable DQ.
• 2 Months = 60 days
• 6 Months = 180 days
• 12 months = 360 days
Delinquent Loans
1. Unsecured Credit Cards Loans: Report all delinquent credit card loans.
2. Short-Term, Small Amount Loans (“STS”) FCU’s only – State chartered
CU’s will report STS’s in “7”- “All Other Loans” (REF: NCUA Rule
701.21(c)(7)(iii))
3. Non-Federally Insured Guaranteed Student Loans Private student loans.
(Report Guart. Student loans – such as Stafford, Perkins, PLUS - granted
prior to 7-1-2010 on line 7 (All Other Loans)
4. New Vehicles: Report all delinquent new vehicles. (Same definition - use
collateral code!)
5. Used Vehicles: Report all delinquent used vehicles.
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6.(1). First Mortgage Fixed Rate (including Hybrid/Balloon >5 years:
Must have First (primary) lien on real estate. First mortgage can be a fixed
note, a balloon note, or a hybrid. An example of a Hybrid would be a First
mortgage that began as a fixed rate loan for a predefined period of time and
then converts to an adjustable rate mortgage. (However, there are many
different types of Hybrids, that is only one example.)
6.(2). First Mortgage Adjustable Rate (including Hybrid/Balloon =<5
years: Report First (primary) lien on real estate with an adjustable rate note.
(Commonly referred to as an “ARM”.) Also include all Hybrid and Balloon
notes where the predefined period is less than or equal to 5 years.
7.(1). Other Real Estate / LOC’s Fixed Rate/Hybrid/Balloon. Must have
second or junior lien on real estate. As stated above, the second mortgage
can be a fixed note, a balloon note, or a hybrid. (Yes, second mortgages can
be a hybrid…..)
7.(2). Other Real Estate / LOC’s / Adjustable Rate Must have second or
junior lien on real estate with an adjustable rate note. A HELOC is a good
example of these. Interest rate MUST reset periodically.
86
8. Leases Receivable: Report the number and balance of delinquent
leases.
9. All Other Loans: Report delinquent loans for “All Other Unsecured /
Lines of Credit" (line 16 from the Balance Sheet - page 2) and "All Other
Loans / Lines of Credit” (line 24 from the Balance Sheet - page 2)
10.Total Delinquent Loans: Automatically calculated by the Call Report
Software, includes the total number (a) and the total amount (b).
Additional Delinquency Information
“a” = number of delinquent loans
“b” = amount of delinquent loans
Report the total number (“a”) and outstanding loan balance (“b”) of
all delinquent loans and leases by categories.
These Delinquent loans have already been reported in lines 1
through 10 on the previous page. You are simply providing additional
information.
It is important to note that a single loan may be reported in
multiple places in this section. (For example – RE backed C & D
MBL that is a “bought” participation would be reported in 12, 16,
and 21.)
11. Indirect Loans: Report the total delinquency.
12. Participation Loans: Report the total delinquency.
13. Interest Only and Payment Option First Mortgage Loans: Report the
total delinquency.
14. Interest Only and Payment Option Other RE/LOC Loans: Report the
total delinquency.
15. Residential Construction Excluding Business Purpose Loans: Report
the total delinquency where the loan was granted directly to the borrower for
building a residence for their own personal use (does not have to be their
primary residence).
16. Member Business Loan secured by RE
17. Member Business Loans NOT secured by RE
18. Non-Member Business Loan Secured by RE
19. Non-Member Business Loan NOT secured by RE
20. Agricultural Loans: Report the total delinquency.
21. Business Construction & Development Loans:
Report the total delinquency. (This includes purchased
and participation loans.)
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22. TDR 1st Mortgage Real Estate Loans: (1st RE -and- consumer
and business)
23. TDR Other Real Estate Loans / Lines of Credit: (subordinate RE and- consumer and business)
24. TDR Real Estate Loans also reported as Business Loans (All RE but- business only)
25. TDR Consumer Loans NOT secured by RE: (consumer loans
only - NO RE) NOT secured by RE. (Examples: a consumer auto
loan, credit card, unsecured signature loan, share secured loan, etc.)
26. TDR Business Loans NOT secured by RE: (business only - NO
RE)
92
DQ - Continued
27: Loans Held for Sale: Remember, we
are only talking about DQ……BUT,
this bucket can and will include
business and non-business, RE and
no-RE, etc.
Loan Charge Offs and
Recoveries
(Page 9)
94
95
Loan Losses and Recovery Information
Report the dollar amount of loans charged off year-to-date by
collateral –and- report the dollar amount of recoveries year-to
date for the following:
1. Unsecured Credit Card Loans
2. Short-Term, Small Amount Loans (STS)(FCU’s)
3. Non-Federally Guaranteed Student Loans
4. New Vehicle Loans
5. Used Vehicle Loans
6. Total 1st Mortgage Loans / LOC’s
7. Total Other Real Estate Loans / LOC’s
8. Leases Receivable
9. All Other Loans (Non-Real Estate) - C/O's and
recoveries from an OD Protection Program are also
reported here.
10. Total Charge Offs and Recoveries
96
(These are already included in the above totals for losses and charge offs)
DUPLICATE REPORTING HAPPENS HERE ALSO
11. Indirect Loans: Report Charge offs and Recoveries year-to-date
12. Participation Loans: Report Charge offs and Recoveries year-to-date.
13. Interest Only and Payment Option 1st Mortgage Loans: Report Charge offs
and Recoveries year-to-date.
14. Interest Only and Payment Option Other RE/LOC Loans:
offs and Recoveries year-to-date.
Report Charge
15. Residential Construction – Excluding Business Purpose: Report Charge
offs and Recoveries year-to-date.
(These are already included in the above totals for
losses and charge offs)
16. Member Business Loan secured by RE
17. Member Business Loans NOT secured by RE
18. Non-Member Business Loan Secured by RE
19. Non-Member Business Loan NOT secured by RE
20. Agricultural Loans: Report C/O's and Recoveries.
21. Business Construction & Development Loans:
Report C/O's and Recoveries YTD. (This includes
purchased and participation loans.)
98
22. TDR 1st Mortgage Real Estate Loans: (1st RE -and- consumer
and business)
23. TDR Other Real Estate Loans / Lines of Credit: (subordinate RE and- consumer and business)
24. TDR Real Estate Loans also reported as Business Loans (All RE but- business only)
25. TDR Consumer Loans NOT secured by RE: (consumer loans
only - NO RE) NOT secured by RE. (Examples: a consumer auto
loan, credit card, unsecured signature loan, share secured loan, etc.)
26. TDR Business Loans NOT secured by RE: (business only - NO
RE)
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27. Total Amount of Loans Charged Off Due to Bankruptcy, Year-to-Date.
Report the dollar amount of loans charged off due to bankruptcy year to date,
regardless of when the bankruptcy was filed. Include Chapter 7, 11, 12, and 13
bankruptcy charge-offs. Do not include recoveries.
28. (A, B, C) Number of Members Filing Chapter 7, Chapter 13, and Chapter 11
OR 12 Bankruptcy Year-to-Date. Provide the number of members who have
outstanding loans in your credit union and have filed for Chapter 7, 13, 11
and/or 12 Bankruptcy, year-to-date. Include reaffirmations. Exclude
bankruptcies that have been dismissed by the court.
29. Amount of Outstanding Loans Subject to Bankruptcies. Provide the dollar
amount of the total outstanding loan balances of those members who have
filed for bankruptcy identified in lines 28 (a-c). (This means that, at the time of
reporting, they still had an outstanding balance, were not charged-off, etc.)
#30: Real Estate Loans
Foreclosed YTD:
• Real Estate Loans Foreclosed YEARTO-DATE: Report the Number and
Amount
• For the amount, report the balances of
the real estate loans at the time of
foreclosure. (The Legal process of
foreclosure is complete.)
102
Congressional Reporting
Requirement for FCU’s Only
• Report the total dollar amount of all
loans with interest rates exceeding
15%.
• Report the aggregate weighted average
interest rate for those loans that exceed
15%
103
Liquidity, Commitments and
Sources
104
Off-Balance Sheet Commitments
and Other Items
105
Unfunded Commitments
There are three columns:
First Column (Left): “Amount Committed Directly by the CU”. These
are unfunded commitments from “direct” loans made by the CU.
Second or Middle Column: “Amount Committed through a Third
Party / Indirect”. These are unfunded commitments that result from a
loan made as a result of a third party; such as “indirect” loans or
participations purchased that result in an unfunded commitment.
Third Column (Right): The total of the first and second column
107
1. Unfunded Commitments for Business Loans
A. Member Business Loans Secured by Real Estate: Report
the unfunded portions of commitments to extend credit for
the purpose of financing commercial properties (e.g.
business and industrial properties, hotels, motels, churches,
hospitals, etc), multifamily and rental residential properties
(e.g. apartment buildings), –and- farmland.
108
1. Unfunded Commitments for Business Loans
B. Member Business Loans NOT Secured by Real Estate:
Report the unfunded portions of commitments to extend
credit which are not secured by RE.
109
1. Unfunded Commitments for Business Loans
C NON-Member Business Loans Secured by Real Estate:
Report the unfunded portions of commitments to extend
credit for the purpose of financing commercial properties
(e.g. business and industrial properties, hotels, motels,
churches, hospitals, etc), multifamily and rental residential
properties (e.g. apartment buildings), –and- farmland.
110
1. Unfunded Commitments for Business Loans
D. NON-Member Business Loans NOT Secured by Real
Estate: Report the unfunded portions of commitments to
extend credit which are not secured by RE.
111
Misc. Business Loans Unfunded
Commitments
These have already been included in
Number 1 with your Member and Nonmember business loans. So, you will
have duplicate reporting.
It is important to note that you are using
the unfunded portion of these business
loans.
2. Miscellaneous Unfunded Commitments for
Business Loans
A. Agricultural Related Business Loan:
This unfunded commitment will include:
Members
Non-Members
May or may not be secured by Farmland
MUST be for Agricultural related purposes
113
2. Miscellaneous Unfunded Commitments for
Business Loans
B. Construction and Land Development:
Include the unfunded portions of commitments to extend
credit for the specific purpose of financing land development
(e.g. the process of improving land, laying sewers, water
pipes, etc.) preparatory of erecting new structures, or the onsite construction of industrial, commercial, residential, or farm
buildings.
For this item, “construction” includes not only construction of
new structures, but also additions or alterations to the
existing structures and the demolition of existing structures to
make way for new structures. Do not include general (i.e.
non-business purpose residential construction) lines of credit
that a borrower, at its option, may draw down to finance
construction and land development (report in 3E).
114
2. Unfunded Commitments for Business Loans
C. Outstanding Letter of Credit. Report the amount unfunded as
of the report date of all financial standby letters of credit (and all
legally binding commitments to issue financial standby letters of
credit) issued by the credit union. A financial standby letter of
credit irrevocably obligates the credit union to pay a third-party
beneficiary when a member (account party) fails to repay an
outstanding loan or debt instrument.
115
3. Unfunded Commitments for All Remaining Loans (NonBusiness Loans)
A. Revolving Open-End Lines Secured by 1-4 Family Residential Properties.
Report the unfunded portions of commitments to extend credit under revolving,
open-end lines of credit secured by 1 to 4 family residential properties. These lines,
commonly known as home equity lines, are typically by a junior lien and are usually
accessible by check or credit card.
B. Credit Card Lines. Report the unfunded portions of all
commitments to extend credit to individuals for
household, family, and other personal expenditures
through credit cards. Credit unions may report
unfunded credit card lines as of the end of their
customers’ last monthly billing cycle prior to the report
date or as of the report date.
117
C. Unsecured Share Draft Lines of Credit. Report the amount of unfunded
credit available that can be accessed through use of a personal check.
D. Overdraft Protection Program Commitments. Report the amount of
unfunded overdraft protection program commitments. (Unlike share draft
lines of credit, overdraft protection programs do not trigger Reg Z
disclosures.) Think “Courtesy Pay”
E. Residential Construction Loans – Excluding Business Purpose
Loans: Report the amount of unfunded commitments of residential 1 st
mortgage construction loans where the borrower will be the occupant of
the completed construction
118
F. Federally Insured Home Equity Conversion Mortgages (HECM)
(Reverse Mortgage): Report the unfunded portion of commitments to
extend credit under revolving, open-end lines of credit secured by 1-4
family residential properties authorized by Federally Insured Home Equity
Conversion Mortgages. The FHA offers the only federally insured reverse
mortgage program.
G. Proprietary Reverse Mortgage Products: These are “in-house”, nonfederally insured Reverse Mortgages.
H. Other Unused Commitments: Report the unfunded portions of all other
commitments not reported in lines 3A. to 3G. (These would include
unsecured LOC’s not attached to a share draft account.)
TOTAL (Automated – no input is required)
119
4. Pending Bond Claims. Report the dollar amount of pending bond claims
that the credit union intends to file but has not yet recorded on its balance
sheet. Do not report other outstanding insurance claims.
5. Loans Transferred with Recourse. Report the total principal balance
outstanding of loans transferred, including participations, for which the
transfer qualified for true sales accounting treatment under GAAP, and for
which the credit union retained some limited recourse (i.e. insufficient
recourse to preclude sales accounting treatment).
DO NOT INCLUDE LOAN TRANSFERS THAT QUALIFY FOR SALES
TREATMENT BUT ONLY CONTAIN THE REPRESENTATIONS AND
WARRANTY PARAGRAPHS THAT ARE STANDARD FOR SALES ON
THE SECONDARY MARKET (such as Fannie Mae and Freddie Mac). Do
not include loan participations transferred with substantial recourse or those
transferred without recourse.
If a transfer does not satisfy the criteria for sales treatment (i.e. isolation,
control, and pledge), the transfer should be accounted for as a secured
borrowing with pledge of collateral, and not reported here.
120
6. Other Contingent Liabilities. Report the aggregate amount of
any other outstanding contingent liabilities. This may include
post retirement packages and management contracts.
Credit and Borrowing Arrangements
7. Amount of Borrowings Subject to Early Repayment at
Lender’s Option. Report the amount of borrowings where the
lender has the option to require your credit union to repay the
borrowings before the scheduled maturity.
121
#8
Assets Pledged to Secure
Borrowings:
Report the total amount of assets
pledged to secure borrowings, such as
pledged loans, investments, etc.
(Report the amount pledged, not
borrowed.)
#9
Lines of Credit
• Committed Credit Lines – this is a credit
line for which the CU has paid a fee in
advance to guarantee access at a future
time. (Remember Y2K?)
• Uncommitted Credit Lines: this is a credit
line subject to reduction, suspension, or
cancelation by the lender at any time or
prior to the current terms.
123
#9 (Continued)
Report the maximum amount your
CU is entitled to borrow for the
following sources:
•
•
•
•
A: Corporate Credit Union
B: Natural Person Credit Union
C: Other Credit Lines
D: Total
#10
Report actual borrowings by source:
(LOC, Term, Other)
•
•
•
•
•
•
•
A: Corporate Credit Union
B: Natural Person Credit Union
C: Other Sources
D: FHLB
E: CLF
F: FRB
G: Total
Schedule A
Specialized Lending
126
Specialized Lending
Section 1
Indirect Loans
127
1. Indirect Loans
An indirect loan is a loan made by a credit union through a vendor or third party
vendor that facilitates the financing arrangement. The credit union is responsible for
making the underwriting decision and the loan is immediately assigned to the credit
union after being made. (Ex: furniture, business, student loans, RV’s, etc.)
a.
Indirect Loans – Point of Sale Arrangement. Report the number and dollar
amount of outstanding indirect loans made by the CU by contracting directly with the
merchant. In this case, the credit union partners with a merchant to originate loans
at the point of sale. (EX: Car dealership)
b.
Indirect Loans – Outsourced Lending Relationship. These are indirect loans
made by the CU by contracting with a third party vendor other than the merchant
providing the product. In this case, the CU does not directly contract with the
merchant. The third party vendor receives compensation for facilitating loan
origination. A wholly owned CUSO is considered a third party for this reporting item.
128
Specialized Lending
Section 2
• Real Estate Loans and Lines of Credit
• Includes MBL’s secured by Real Estate
129
130
Schedule A – Section 2: Real Estate Loan / Lines of Credit
For each type loan/line of credit listed, provide the number of loans / lines
outstanding, the aggregate amount of loans/lines of credit outstanding, the number
of loans/lines of credit granted year-to-date and the dollar amount of loans/lines of
credit granted year-to-date.
Real Estate loans processed by a third party but funded by the CU should be
included. The number of loans/lines outstanding should NOT include those with no
balance or those loans reported as loans held for sale.
The number and dollar amount of loans/lines of credit granted should include any
real estate loans sold on the secondary market or those classified as loans held for
sale along with loans held in the current loan portfolio.
Count each line of credit as a single loan granted if one or more advances were
made on that line year-to-date. Report Loans secured by a First Lien as a First
Mortgage Loan.
132
1.A. First Mortgage Fixed Rate > 15 years. Report information for
loans listed on the balance sheet, line 21, that have ORIGINAL maturities of
GREATER THAN 15 years and have a fixed rate for the term of the loan.
(fully amortizing)
1.B. First Mortgage Fixed Rate 15 years or less. Report information for
loans listed on the balance sheet, line 21, that have ORIGINAL maturities of
15 YEARS OR LESS and have a fixed rate for the term of the loan (fully
amortizing).
2.A. First Mortgage Balloon/Hybrid > 5 years. Report information for
loans listed on the balance sheet, line 21, that have a balloon feature or
convert to an adjustable rate loan after a predefined period of time where
that period of time or balloon feature is GREATER THAN 5 YEARS.
2.B. First Mortgage Balloon/Hybrid 5 years or less. Report
information for loans listed on the balance sheet, line 21, that have a
balloon feature or convert to an adjustable rate loan after a predefined
period of time where that period of time or balloon feature is 5 YEARS OR
LESS.
133
3.
First Mortgage Other Fixed Rate. Report information for any other
type of fixed rate first mortgage loan.
4.
First Mortgage Adjustable Rate 1 year or less. Report information
for loans listed on the balance sheet, line 21, that call for periodic
adjustment of the interest rate and the reset period of that interest
rate is 1 year or less.
5.
First Mortgage Adjustable Rate >1 year. Report information for
loans listed on the balance sheet, line 21, that call for periodic
adjustment of the interest rate and the reset period of that interest
rate is greater than 1 year.
NOTE: The sum of 1A through 5 MUST equal the
amount reported on the balance sheet, line 21 (Total
1st Mortgage Real Estate Loans/Lines of Credit).
134
OTHER REAL ESTATE LOANS
6. Other Real Estate "Closed-End Fixed Rate". Report
loans listed on the balance sheet, line 22 that have a set
interest rate until maturity.
7. Closed-End Adjustable Rate. Report loans listed on
the balance sheet, line 22 that are not eligible for additional
advances and have a contract which calls for the periodic
adjustment of the interest rate charged. Loans with periodic
interest rate adjustments are considered adjustable rate
regardless of the frequency of the periodic adjustment period.
135
8.
Open-End Adjustable Rate (Think Home Equity Loans).
Report loans listed on the balance sheet, line 22 that are
eligible for additional advances and have a contract which calls
for the periodic adjustment of the interest rate charged. Loans
with periodic interest rate adjustments are considered
adjustable rate regardless of the frequency of the periodic
adjustment period.
9.
Open-End Fixed Rate. Report loans listed on the balance
sheet, line 22 which are eligible for additional advances and
have a fixed rate of interest.
NOTE: The sum of 6 through 9 MUST equal the
amount reported on the balance sheet, line 22 (Total
Other Real Estate / Lines of Credit).
136
Line 10 -Totals
Therefore, the sum of 1-9 MUST
equal the sum of the balance sheet,
line 21 and line 22. (In other words,
your total real estate loans.)
137
Miscellaneous Real Estate Loans / Line of Credit
Information (Schedule A)
11. Interest Only and Payment Option 1st Mortgage Loans Report the balance
outstanding and the amount granted year-to-date.
12. Interest Only and Payment Option Other RE/LOC’s Loans Report the
balance outstanding and the amount granted year-to-date. (Yes, interest only
HELOC’s will be reported here…until required principle reduction payments.)
138
REVERSE MORTGAGES – Number 13
As discussed earlier, the FHA offers the only federally insured reverse
mortgage program, called “HECM”. There are five options for receiving
payments under this program:
 Tenure: equal monthly payments as long as at least one borrower lives and
continues to occupy the property as a principle residence.
 Term: equal monthly payments for a fixed period of months selected.
 Line of Credit: unscheduled payments or installments, at times and in
amounts of the member’s choosing until the line of credit is exhausted.
 Modified Tenure: combination of the LOC with monthly payments for as
long as the member remains in the home.
 Modified Term: combination of LOC plus monthly payments for a fixed
period of months selected by the member.
139
REVERSE MORTGAGES
13 (A) Federally Insured Home Equity Conversion Mortgage (HECM):
Report the number of HECM loans outstanding, the outstanding balance,
the number granted year-to-date, and the dollar amount granted year-todate.
13 (B) Proprietary Reverse Mortgage Products: Report the number of
HECM loans outstanding, the outstanding balance, the number granted
year-to-date, and the dollar amount granted year-to-date. (These are not
federally insured.)
140
Miscellaneous Real Estate Loans / Line of Credit Information (Schedule A)
(continued)
14. Balance Outstanding of 1st Mortgage Residential Construction Loans –
Excluding Business Purpose: Report the amount of residential 1st
mortgage construction loans where the borrower will be the occupant of the
finished construction. Do not include business purpose loans in this amount.
15. Allowance for Losses on Real Estate Loans: Report the dollar amount of
the allowance for loan losses account that is reserved for unrealized real
estate loan losses.
16. Total Amount of all First Mortgage Loans Sold in the Secondary Market
Year-to-Date. Total loan balance of all first mortgage real estate loans which
have been sold in the secondary market, to other credit unions, to private
investors, etc.
141
17.
Amount of Real Estate Loans Outstanding that will
contractually refinance, reprice, or mature within the
next 5 years and that are not member business loans
(reported in section 4, line #9). Report the outstanding
balance of adjustable or fixed rate real estate loans that
according to contractual agreements, will reprice or
mature within the next 5 years and are not business loans
(Sec. 4, #9). Also include real estate backed balloon
loans, that according to contractual agreements, are due
within the next 5 years.
18.
Amount of real estate loans sold but serviced by the
credit union (servicing retained).
19.
Mortgage Servicing Rights. Report the dollar amount of
Mortgage Servicing Rights recorded as an asset in this
Call Report.
142
Specialized Lending
Section 4
(Yes, section 4 is being taught
before section 3 for a reason)
Business Loans
143
Business loans do NOT include:
A loan fully secured by a lien on a 1- to 4-family dwelling that is
the member’s primary residence
A loan fully secured by shares in the credit union or deposits in
other financial institutions
Loan(s) to a member or an associated member which, when
added together, (NMBLB) are equal to or less than $50,000
A loan where a federal or state agency (or its political
subdivision) fully insures repayment, fully guarantees
repayment, or provides an advance commitment to purchase in
full.
Loans to credit unions and credit union service organizations
(CUSO’s)
145
Remember:
Net Member Business Loan Balance (NMBLB)
NMBLB means the outstanding loan balances plus any unfunded
commitments, reduced by any portion secured by shares or deposits
(in any financial institution), or a lien on the member’s primary
residence, or insured or guaranteed by a government agency, or sold
as a participation interest without recourse (GAAP).
146
•• For each type of member business loan listed, provide the
number of loans outstanding, the aggregate NMBLB amount of
loans outstanding, the number of loans granted or purchased
year-to-date, and the NMBLB amount of loans granted or
purchased year-to-date. For participation loans, report the
NMBLB amount of the portion that remains on the credit union’s
balance sheet.
•• Include any unfunded commitments with these reported
figures unless otherwise noted in the instructions.
•• For loans held for sale, report only the number of loans
granted or purchased year-to-date and the aggregate NMBLB
amount of loans granted or purchased year-to-date.
147
Business Loans
1 and 2
• 1 (a-k) Member
Business Loans.
Report the total count
and NMBLB amount of
any loan or participation
to a member.
• 2 (a-k) Purchased
business loans or
participation interests
to nonmembers.
Report the total count
and NMBLB amount
resulting from a
purchase of any
nonmember business
loan or participation
interest qualifying for
sales accounting.
148
Business Loans
1 and 2
• “A” through “E” are business loans
backed by REAL ESTATE.
• “G” through “J” are business loans NOT
back by Real Estate
149
Business Lending – Section 4 (cont)
A. Construction and Development Loans. Report the total count and
NMBLB amount of any loan or participation interest to a member
(#1) or non-member (#2) for the purpose of acquisition of property
or rights to property with the intent to convert it to income producing
property. This includes land or structure loans made with the intent
of conversion into an income producing property such as residential
housing for rental or sale, commercial or industrial use, or similar
use.
These also include loans for major renovation or development of
property already owned by the borrower that will convert the
property to income producing property or covert the use of the
income producing property to a different use from its use before the
major renovation or development or is a major expansion of its
current use. (Does not include loans to finance maintenance,
repairs, or improvements to an existing income producing property
that does not change its use.)
150
Business Lending – Section 4 (cont)
B. Secured by Farmland: Report the total count and NMBLB amount
of any loan or participation interest to a member (#1) or nonmember (#2) business loan secured by farmland and improvement
thereon. Farmland includes all land used for agricultural purposes.
C. Secured by non-farm Residential Property: “Non-farm” business
purposes such as: rental properties, apartment buildings, duplexes,
condos, etc. The primary source of repayment is derived from thirdparty income associated with the property. DO NOT INCLUDE
LOANS FULLY SECURED BY A MEMBER’S PRIMARY
RESIDENCE.
151
Business Lending – Section 4 (cont)
D. Secured by Owner Occupied, non-farm, non-residential
Property: Such as: business and industrial property, hotels,
churches, recreational facilities, nursing homes, mini-storage
warehouse facilities, etc. The primary source of repayment is the
cash flow from the ongoing operations and activities conducted by
the borrower occupying the property –and- rental income is less
than 50% of the source of repayment. Loans secured by investorowned properties, where the investor leases the property to a thirdparty, are NOT included here.
E. Secured by Non-Owner Occupied, Non-farm, Non-Residential
Property: This is where you include investor-owned properties
where the investor leases property to an unaffiliated 3rd party, who in
turn, operates the business occupying the property. The primary
source of repayment is derived from the non-affiliated 3rd party
rental income associated with the property (greater than 50%).
152
Business Loans-Section 4
***Remember***
• “A” through “E” are business loans
backed by REAL ESTATE. (So, “F” is the
sum of all RE backed business loans.)
• “G” through “J” are business loans NOT
back by Real Estate…..and, now for “G”…
153
Business Lending – Section 4 (cont)
G. Loans to Finance Agricultural Production and other loans to
farmers: Report the total count and NMBLB amount of any loan or
participation interest to a member (#1) or non-member (#2)
business loan for agriculture or farm related equipment, seed,
fertilizer, etc. (NO RE BACKED “AGI” LOANS.)
H. Commercial and Industrial Loans: These are loans to businesses
(DBA, LLC, LLP, Corps,etc.) where the collateral is not RE. (Ex:
Equipment, A/R, other collateral, dealer floor plans)
154
Business Lending – Section 4 (cont)
I. Unsecured Business Loans: These are unsecured installment
loans, include overdrawn share accounts that qualify as business
loans. Report the Outstanding amount.
J. Unsecured Revolving Lines of Credit granted for Business
Purposes. Report the total count and NMBLB amount of any
unsecured revolving line of credit loan or participation interest to a
member (#1) or non-member (#2) for business purposes. YOU
MUST REPORT BUSINESS CREDIT CARDS. Additionally, you
must report unfunded commitments. (Change eff: 4-16-2011)
155
Business Loans
K = Totals
• 1 Member
Business Loans:
• 1 a-e plus
• 1 g-j
• TOTAL OF ALL
MEMBER
BUSINESS LOANS.
• 2 Nonmembers
Business Loans:
• 2 a-e plus
• 2 g-j
• TOTAL OF ALL
NON-MEMBER
BUSINESS LOANS
156
Business Lending – Section 4 (cont)
Miscellaneous Business Loan Information
3.
Construction and Development Loans meeting the
requirements of Section 723.3(a): Report the NMBLB of all
C&D loans EXCLUDING any loan to finance the construction of
a single family residence IF a prospective homeowner has
contracted to purchase the property (one residence per
borrower/member or group of associated borrowers - even if no
contract).
4.
Unsecured Business Loans Outstanding meeting 723.7(c)(d): Outstanding balances only and exclude "non-natural
member / borrower" credit cards limited to normal and routine
use for the business.
157
723.3(a)
Why?
Doesn’t count against the
15% of net worth rule…..
a) The aggregate of the net member business loan balances for all construction and
development loans must not exceed 15% of net worth. In determining the aggregate
balances for purposes of this limitation, a credit union may exclude any loan made to
finance the construction of a single-family residence if a prospective homeowner has
contracted to purchase the property and may also exclude a loan to finance the
construction of one single-family residence per member-borrower or group of associated
member-borrowers, irrespective of the existence of a contractual commitment from a
prospective homeowner to purchase the property
723.7(d)
Why?
The code allows it:
(d) You are exempt from the provisions of paragraphs (a), (b), and (c) of this section with
respect to credit card line of credit programs offered to nonnatural person members that
are limited to routine purposes normally made available under those programs.
Business Loans - Section 4 (cont)
5.
Purchased business loans or
participation interests to members:
Report the total count and NMBLB
amount of any purchased member
business loan or participation interest
reported in line 1 "K" above (member
business loans).
6.
Agricultural Related Loans
160
Business Lending – Section 4 (cont)
Miscellaneous Business Loan Information
7.
Business Loans and Participations sold Year-to-Date.
Report the total count and dollar amount of any business loan
or participation interest sold year-to-date qualifying for sales
accounting under GAAP.
8.
Small Business Administration Loans Outstanding (SBA).
Report the total count and outstanding amount (including the
guaranteed portion) of any loan granted under a SBA loan
program. (SBA bonds are not reported here; they are reported
as an investment. This line is for loans only.)
161
9.
Portion of Real Estate Loans (included in Total
Real Estate Loans, Section 2, line 10) which are
also reported as business loans (1 and 2 above).
Report the outstanding portion of any loan contained
in the Total Real Estate Loans (line 10) and the
NMBLB is also reported as a business loan on lines
1 or 2 above. (So-NMBLB less unfunded portion)
Do not include balances excluded from the
NMBLB such as the portion secured by a lien on
a member’s primary residence, or partially
secured by shares. (This captures Real Estate
secured business loans under the regulatory
definition. Used for Net Long Term Assets.)
162
#9 – what is reported here?
NMBLB less the unfunded commitments
• NMBLB minus unfunded commitments
• NMBLB does not contained certain
excluded balances already; such as:
– Portion secured by deposits
– Portion secured by a lien of the member’s
primary residence
163
Risk Based Net Worth (RBNW) –THE INFAMOUS BOX
10. Loans and participation interests qualifying for
RBNW. Report the outstanding loan balances of any
loan and participation that meets the definition of a
member business loans at the time of origination or
purchase. For the purposes of RBNW, you MUST include
the portion of loan balances that are secured by shares or
deposits, a lien on the member’s primary residence,
insured by a government agency, etc. However, you would
not include those that don’t reach the regulatory limit of
$50,000 at origination. For the purposes of RBNW, “once
a business loan always a business loan”; and member
and nonmember business loans are treated the same. DO
NOT INCLUDE UNFUNDED COMMITMENTS. (Those
are on the next line.)
11. Unfunded Commitments for loans and participation
interests qualifying for RBNW. Here are the unfunded
portions for loans included in #10 above.
164
Risk Based Net Worth (RBNW) (cont.)
12.
Amount of Real Estate Loans included in total real estate loans
(line 10) and also reported as loans and participation interests
qualifying for RBNW on line #10 above. In other words, the
outstanding balance of your business loans secured by real estate that
have ever qualified as a business loan….regardless of whether the
loan is presently classified as a business loan.
Why?
During the calculation of Risk Based Net Worth (RBNW), the Call Report
software will automatically take that amount out of your “Long Term Real Estate
Loans” since it is already included in the “Member Business Loans Outstanding”
thereby preventing it from counting against you twice.
165
(OK – here is section 3)
Specialized Lending
Section 3
Loans Purchased and Sold in Full
And
Participation Loans Purchased and Sold
166
167
Section 3
1-A: Loans Purchased in Full from Other Financial
Institutions: Report the total number and dollar amount of
loans purchased by your credit union for which it has full title,
year-to-date. (Seller has assigned the note and supporting
documents to your credit union.) DO NOT INCLUDE
PARTICIPATION LOANS PURCHASED HERE.
1-B: Loans Purchased in Full from Other Sources: (other
than from a financial institution.)
1-C: Loans, Excluding Real Estate Loans, Sold in Full Year
to Date: Report the amount of loans that are not real estate
loans that were sold in full year to date. DO NOT INCLUDE
PARTICIPATION LOANS SOLD HERE.
168
2. Participation Loans Purchased
a. Participation Loans Purchased (with Recourse): In the left hand
column, report the number and dollar amount of ALL Participation loans
purchased (cumulative). In the right hand column, report the number
and dollar amount of Participation Loans purchased year-to-date
whether or not the credit union is holding a current outstanding balance
(NMBLB on both). (Participations with RECOURSE only.)
b. Participation Loans Purchased (no Recourse): In the left hand
column, report the number and dollar amount of ALL Participation loans
purchased (cumulative). Report the number and dollar amount of
Participation Loans purchased year-to-date in the right hand column
whether or not the credit union is holding a current outstanding balance.
(NMBLB on both)(Participations with NO RECOURSE only.)
169
3. Outstanding Participation Loans Sold
A.
Participation Loans Retained / Sold (with Recourse): In the left hand
column, report the number and outstanding balance retained by the credit
union of ALL Participation loans sold (cumulative and NMBLB). In the right
hand column report the number and outstanding dollar amount (cumulative
and NMBLB) of Participation Loans sold whether or not the CU is servicing
the loan. (Participations with RECOURSE only.) If they were sold with
recourse, you must report that balance on the “Liquidity Commitments and
Sources” schedule as a “Contingent Liability”.
B. Participation Loans Retained / Sold (no Recourse): Same as above, except
using loans that were retained or sold with NO RECOURSE.
*** Includes MBL’s, non-MBL’s, C & D, and all Business LOC.
*** Ensure that unfunded commitments are included.
4. Participation Loans Sold
Year-to-Date
a. Participation Loans Retained / Sold - YTD (with Recourse): In the
left hand column, report the number and outstanding balance retained
by the credit union of ALL Participation loans sold YTD (cumulative
and NMBLB). In the right hand column report the number and
outstanding dollar amount (cumulative and NMBLB) of Participation
Loans sold whether or not the CU is servicing the loan YTD.
(Participations with RECOURSE only.) If they were sold with recourse,
you must report that balance on the “Liquidity Commitments and
Sources” schedule as a “Contingent Liability”.
b. Participation Loans Retained / Sold - YTD (no Recourse): Same as
above, except using loans that were retained or sold with NO
RECOURSE.
*** Includes MBL’s, non-MBL’s, C & D, and all Business LOC.
*** Ensure that unfunded commitments are included.
171
5. Participation Loans Outstanding by Type
Left Hand Column: Report the total number and dollar amount
OUTSTANDING (NMBLB if a business loan) for which the credit union has
purchased a participation interest. (Cumulative basis – not year-to date)
Right Hand Column: Report the total number and dollar amount
OUTSTANDING (NMBLB if a business loan) for which the credit union has sold
a participation interest. You will be reporting the amount that you retained
here. (Cumulative basis – not year-to date)
a.
b.
c.
d.
e.
f.
g.
Consumer
Non-Federally Guaranteed Student Loans
Real Estate (do not list business loans back by RE here)
MBL’s excluding Construction and Development Loans
Non-Member BL’s excluding Construction and Development Loans
Commercial Construction and Development Loans
Loan Pools
**** Business loans will NOT be listed under RE, they will be in “d”, “e”, or “f”.
172
Section 5 of Schedule A
TDR’S
(Troubled Debt Restructured)
Troubled Debt Restructured
A TDR is a loan whose terms have been modified by the credit union for
economic or legal reasons related to the debtor’s financial
difficulties, grants a concession to the member that it would
otherwise not consider
This normally provides for a reduction in interest and/or principle, a
change in accrued interest, an extension of the maturity; however, there
are other ways to arrive at a TDR. For example, the FMV of interest rate
versus extension of loan
This concession either stems from an agreement by and between the
member and the credit union or is imposed by law or a court.
A loan extended or renewed at a stated interest rate equal to the current
interest rate for new debt with similar risk is not considered a TDR.
175
TDR: Part 741
(Reference: IRPS Appendix C)
• For TDR reporting, you must indicate whether
or not the loan is in accrual status or nonaccrual status.
• #1: Must use outstanding balances,
segregated by accrual and non-accrual.
• #2: (“TDRs approved YTD”):
– YTD only and resets every January 1st
– May include multiple TDR restructuring
#1: TDR
(RE Secured Loans)
a. TDR 1st Mortgage Real Estate Loans: Report the number and
outstanding dollar amount for TDR loans in accrual and nonaccrual
status which are presently secured by a first mortgage.
b. TDR Other Real Estate Loans / Lines of Credit: Report the number
and outstanding dollar amount for TDR loans in accrual and nonaccrual
status which are presently secured by a junior lien.
c. TDR Real Estate Loans also reported as Business Loans: Report
the number and outstanding dollar amount for TDR loans in accrual and
nonaccrual status which meet the definition of Business Loans that are
secured by Real Estate. (Include fully purchased and participation
business loans.)
177
#1: TDR Loans (cont.)
d. TDR Consumer Loans NOT secured by RE: Report the number
and outstanding dollar amount for TDR loans in accrual and
nonaccrual status These are consumer loans (not for business
purposes) that are NOT secured by RE. (Examples: a consumer
auto loan, credit card, unsecured signature loan, share secured
loan, mobile homes that do not include land, etc.)
e. TDR Business Loans NOT Secured by Real Estate: Report the
number and outstanding dollar amount for TDR loans in accrual
and nonaccrual status which meet the definition of a business
loan under Part 723 –and- are not secured by real estate. (These
loans have already been reported in Section 4 as Business
Loans.)
TDR Section 5 (Cont.)
2. TDR Loans Approved Year-to-Date:
Report number and dollar amount of TDRs approved
YTD. (This may include multiple restructures and/or
loans that have been charged off or paid off.)
3. TDR Portion of the ALLL: Report the
amount in the ALLL account that is reserved for
unrealized TDR loan losses
Section 6 of Schedule A
PCILs
(Purchased Credit Impaired Loans)
Purchased Credit Impaired Loans
• These are loans where (1) there is evidence
of deterioration of credit quality since the
origination of the loans and (2) it is probable
that the CU will be unable to collect on part or
all of the loan.
• CU’s must account for these PCILs pursuant
to GAAP.
• Normally, these are loans that have been
acquired in merger (business combination
under the acquisition method).
Purchased Credit Impaired Loans
(continued)
• The surviving credit union generally
establishes an allowance of losses
related to these PCILs.
• CU’s will establish pools of these loans
that have similar risk characteristics,
especially in large mergers.
• The risk of loss may increase over time.
#1: Balances as of call report
date
•
For the difference PCILs, you must
report the number and dollar amount
of the contractual balance outstanding,
the nonaccretable balance
outstanding, the accretable yield, and
the carrying value of the PCIL (what is
it on your balance sheet for?)
#1 - PCILs
1A: PCILs secured by RE in 1st position
1B: PCILs secured by Other RE
1C: PCILs RE secured business loans
1D: PCIL’s NON-RE (consumer loans)
1E: PCILs NON-RE (business loans)
Schedule B
Investments, Supplemental
Information
186
187
US Government Obligations
1 a-b: NCUA Guaranteed Notes (NGNs) - both
fixed and variable by maturity classification.
1c: Total FDIC-Issued Guaranteed Notes
1d: All Other U.S. Government Obligations
U.S. Government Obligations, including
U.S. Treasury Bills, Notes, Bonds, Zero
Coupon Bonds and Strips, etc.
1e: TOTALS
188
2. A and B: Federal Agency Securities. Report the amount of
investments in securities issued or guaranteed by Government
Corporations and Government Sponsored Enterprises (GSE’s).
These are divided into “A” Debt Instruments (not backed by
mortgages) and “B” Mortgage-Backed Securities.
189
Federal Agency Security: Issued by one of two entities:
Government Owned (wholly or partially), usually back by the
Full Faith and Credit of the US Government or an explicit
guarantee by the issuer. (SBA’s will be included in these.)
Government Sponsored Enterprise (GSE): Privately-owned,
Congressionally-chartered corporations. These are government
instrumentalities; however, they do not carry the same guarantee
as a Government Owned entity. (Non-explicit US guarantee)
Some examples of GSE’s:
 FNMA
 FHLB
 FHLMC
 FFCB
 FAMC (Farmer Mac)
3. Securities Issued by States and Political Subdivisions in
the US: Report the amount of investments in securities issued
by states and political subdivisions, such as cities and counties
in the United States
191
What is the difference between “Mortgage Related”
and “Mortgage Backed” when dealing with Privately
Issued Mortgage Securities???????
Privately Issued Mortgage-Related Securities: These are first
mortgage backed securities that are rated in one of the two highest
categories by a least one nationally-recognized statistical rating
organization. (AAA or AA, or equivalent rating).
Privately Issued Mortgage-Backed Securities: These are mortgage
backed securities that do not meet the definition of a Mortgage Related
Security. For example, they are rated lower than AA (or its equivalent
rating)….or they are a security backed by second lien mortgages, etc.
These securities are NOT PERMISSIBLE investments for FCU’s.
#4: Other Mortgage-Backed Securities
• 4-A: Privately Issued Mortgage-Related Securities.
(“i” and “ii”):
i = Privately issued mortgage related securities.
ii = Securities that fail to meet the definition of a
mortgage related security (down-graded below the two
highest rating categories after purchase) (FCU only)
• 4-B: Privately Issued Mortgage-Backed Securities.
(SCU only) (Not Permissible for FCU’s)
193
5. Mutual Funds. Report the amount of
investments in mutual funds. Mutual funds have
a Net Asset Value (“NAV”).
6. Common Trust Investments. Report the amount
of investments in common trust investments.
Common trust investments include the
Government Securities Program (GSP) and
NIFCU$.
7. Bank Issued FDIC-Guaranteed Bonds. Report
the amount of investments in bank issued bonds
that the FDIC backs with the full faith and credit of
the US.
194
Investments Meeting Specific Criteria of Part 703 (FCU ONLY)
8. Non-Mortgage Related Securities with Embedded Options or
Complex Coupon Formulas. This question is for federal credit union
only. Report total holdings in securities, other than mortgage-related
securities, with embedded options (calls, puts, caps, and floors); or where
the coupon formula is related to more than one index, or is inversely
related to an index, or is a multiple of an index. Do not include NGN's,
mutual fund investments, CUSO stock or the stock of the Federal Reserve,
FHLB, or SLMA.
9. Non-Mortgage Related Securities with Maturities Greater than Three
Years that Do Not have Embedded Options or Complex Coupon
Formulas. This question is for federal credit unions only. Report total
holdings in securities, other than mortgage-related securities, with
maturities greater than 3 years, e.g. agency bullets. Exclude securities
with embedded options (calls, puts, caps, and floors), where the coupon
formula is not related to more than one index, and is not inversely related
in an index, or is a multiple of an index. Do not include NGN's, mutual
fund investments, CUSO stock or the stock of the Federal Reserve, FHLB,
or SLMA.
195
10. Total of Securities Meeting the
Requirements of Section 703.12(b). Sum
of lines 2b, 4c, 8, and 9.
(Electronic Filers – This field populates
automatically.)
196
Mortgage-Backed Securities (MBS)
Mortgage-related securities are securities collateralized by mortgages
and may be publicly or privately issued. This items should already be
included in lines 1 through 4 listed above.
11. Collateralized Mortgage Obligations / Real Estate
Mortgage Investment Conduits (CMOs/REMICs).
Report multiclass (MRS) bond issued collateralized
by whole loan mortgages or mortgage-backed
securities. Principal payments are distributed on a
prioritized basis.
12. Commercial Mortgage Related Securities. Report
securities that are backed by commercial mortgage
loans (e.g. multi-family (>4 units) housing, hotels,
retail space, office buildings) and represent an
undivided interest in a pool of mortgages.
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Miscellaneous Investment Information
13. Total of Deposits and Shares Meeting the
Requirements of Section 703.10(a). Federal Credit
Unions only. Report total holdings in shares and
deposits of banks, credit unions, or other depository
institutions with remaining maturities greater than 3
years; or with embedded options (calls, puts, caps, and
floors); or where the coupon formula is related to more
than one index, or is inversely related to an index, or is
a multiple of an index. Do not include membership
capital (Nonperpetual Capital Accounts) and paid-incapital (Perpetual Contributed Capital) at corporate
credit unions.
199
14.
Market Value of Investments Purchased Under an
Investment Pilot Program – 703.19. This question
is for federal credit unions only. Report only those
investments that are purchased under the authority of an
approved pilot program. Report the market value of
investments, NOT the notional amounts (e.g. derivatives
such as swaps).
15.
Fair Value of Held to Maturity Investments. Report
the fair value of all held to maturity investments (those
reported on page 1, line 6). Fair value is the amount at
which a financial instrument could be exchanged in a current
transaction between willing parties. If quoted market price is
available for an instrument, derive the fair value by
multiplying the number of units of the instrument by its
market price.
200
16.
Investment Repurchase Agreements. Report the
dollar amount of all repurchase agreements where the
credit union lends funds (not reverse repurchase
agreements).
17. Borrowing Repurchase Transactions Placed in
Investments for Purposes of Positive Arbitrage
(income enhancement). Report the dollar amount of
all outstanding repurchase agreements where the
credit union borrows the funds.
201
18. Investments Not Authorized by the Federal Credit
Union Act or the NCUA Rules and Regulations.
This question is for state chartered CU’s only.
Report the amount of investments permitted by state
law, but that are not authorized by the Federal Credit
Union Act (See Section 107) or NCUA Rules and
Regulations (see Part 703)
19. Outstanding balance of brokered certificates of
deposit and share certificates. Report the book
value of all certificates of deposit and share
certificates purchased through or from a broker.
Exclude any certificate of deposit or share certificate
purchased directly from the issuing depository
institutions. (This DOES INCLUDE SimpliCD’s since
they are not direct purchases from the issuing
institution.)
202
• #20: Amounts reported in the Asset
section (Statement of Financial
Conditions) to fund employee benefit
plans –or- deferred compensation
plans:
• Under Section 701.19(c) (if FCU)
• Or similar state provisions (if SCU)
• That are impermissible under NCUA RR
Part 703, but allowed under Section
701.19(c)
20: Investment used to fund
employee benefit plans (cont.)
• Do not include assets held in 457(b)
plans
• Do not include assets held in qualified
defined contribution and qualified
benefit plans (since these assets to not
reside on the balance sheet).
20: Investment used to fund
employee benefit plans (cont.)
A : Securities: Report the recorded value
of all securities held for the purpose of
funding same.
B : Other Investments
20: Investment used to fund
employee benefit plans (cont.)
C: Other Assets:
i.
Split Dollar Arrangements
a. Collateral Assignment Split Dollar
Arrangements (recorded value of all loans to
fund collateral assignment for split dollar
arrangements)
b. Endorsement Split Dollar Arrangements
ii. Other Insurance
iii. Other Non-Insurance
21: Investment in Charitable
Donations
• Report the recorded value of
investments in Charitable Donation
Accounts allowed under Section
721(b)(2) of the NCUA RR (if a FCU) or
similar state provisions (if a SCU)
Schedule C
Credit Union Service
Organizations Information
(CUSO)
208
209
1. CUSO Definition:
A credit union service organization (CUSO) is a corporation or limited
partnership that provides services primarily to credit unions or
members of affiliated credit unions.
Line item entries for credit union loans and investments have
been moved to the NCUA Form 4501A (Profile Form).
Answer the following questions for each CUSO in which you have a
loan or an investment. If your credit union has investments in or
loans to more than one CUSO, complete a separate line of
information for each CUSO.
210
2. Accounting Issues:
A. If the credit union wholly-owns the CUSO or owns a “controlling financial
interest” (assumed at ownership of 50% or more of the voting stock), the
CUSO’s books and records should be consolidated with the credit union’s
books and records (as if the two were one entity) for balance sheet and
income statement reporting.
B. If the credit union has “ability to exert significant influence” over operations of
the CUSO (assumed at ownership of 20% or more but less than 50% of the
voting stock of the CUSO), the credit union’s investment in the CUSO should
be reflected in its books and records using the equity method of accounting.
C. If the credit union owns less than 20% of the voting stock of the CUSO, the
credit union should account for its CUSO investment using the cost method of
accounting.
211
2. Aggregate of Financial Interests The CU has in CUSO’s
o Total Value of Investments in CUSO’s
o Total Amount Loaned to CUSO’s
o Total Aggregate Cash Outlay in CUSO’s
The bottom portion will only be filled out if you wholly own a CUSO.
212
Wholly Owned CUSO
•
•
•
•
•
•
•
•
EIN
Name
Total Assets of CUSO
Total Capital of CUSO
Net Income / Loss of CUSO
Total Loans of CUSO
Total Delinquency of CUSO
Does the CUSO have any subsidiary
CUSO’s? Y/N
Schedule D
Derivative Transactions
Pages 20 through 24
Schedule D:
• Section 1: Outstanding
• Section 2: Outstanding with Accounting
Designations
• Section 3: Activity
• Section 4: Maturity Horizon
• Section 5: Counterparty Exposure for
Derivative Transactions
Schedule E
Bank Secrecy
Anti-Money Laundering
“E” – Money Services
Businesses (MSBs)
• Dealers in foreign exchange
• Check cashers
• Issuers or sellers of traveler’s checks or
money orders
• Money Transmitters
• Providers of Prepaid Access
• Sellers of Prepaid Access
MSBs
1. Total Money Services Businesses:
•
Report the total number and dollar
amount of the accounts provided to
entities operating as MSBs
MSBs (cont)
2 through 7
•
•
•
One MSB may provide multiple
services, so duplicate reporting
can/will occur.
Only number of accounts in this
section
The sum total should equal or
EXCEED what has been reported in
#1
MSBs
(Report number only)
2. Dealers in foreign exchange
3. Check cashers
4. Monetary Instruments
5. Money Transmitters
6. Providers of Prepaid Access
7. Sellers of Prepaid Access
PCA Net Worth Calculation
Automated – No input is required
222
223
PCA Net Worth Calculation
No credit union is required to provide input on this page unless the
credit union intends to use an optional Total Assets Election to
compute its new worth ratio - OR - it has completed a merger
(acquisition) under FAS 141-R.
At its discretion, a credit union may elect a measure of total assets
for its net worth denominator other than quarter-end total assets. If
the credit union decides to use one of these Total Assets Elections it
must input this amount in either line 10, 11 or 12 as appropriate.
Otherwise, the PCA Net Worth Calculation Worksheet will compute
the credit union’s net worth ratio and resulting net worth classification
using quarter-end total assets. See NCUA Rules and Regulations
702.2(k) for further information regarding total assets.
224
Total Assets Elections
• Average of Daily Assets over the
calendar quarter
• Average of the 3 month-end balances
over the calendar quarter
• The average of the current and three
preceding calendar quarter-end
balances
225
#7 Adjusted Retained Earnings Acquired
through Business Combinations
A. Prior Quarter-End Adjusted Retained
Earnings Acquired through “Business
Combination” (Merger).
B. Adjustments made during the current
quarter. (No negative adjustments
unless it is an accounting error.)
#7 Adjusted Retained Earnings Acquired
through Business Combinations (CONT.)
C. Adjusted Gain from Bargain Purchase
due to Business Combination
completed during quarter (after 10-312011 – NCUA Rules 702.2(f)(3))
D. Current Quarter’s Total Adjusted
Retained Earnings Acquired through
Business Combinations (Merger). 7a +
7b – 7c = total reported here.
Standard Components of Risk
Based Net Worth (RBNW)
Requirement
228
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