There is no doubt that the instructions for properly completing the Call Report are challenging. The most confusing of all the Schedules, arguably, is the loan schedule, Schedule RC-C. The definitions seem to be ambiguous. Many preparers simply find Schedule RC-C to be overwhelmingly difficult. Much of that difficulty stems from the uniqueness of each loan. Each individual loan seems to be unique and often there is very little similarity among the loans.
This bank accounting webinar is designed to make the classification challenges for RC-C easier to deal with. It takes the mystique out of the classification process. It attempts to put the general classification “rules” into a simple to understand process. After this accounting webinar, preparers should have less difficulty with Schedule RC-C.
This 90-minute accounting webinar uses actual Call Report filings to highlight the mechanics and interplay between Schedules RC, Schedule RC-C and the intricacies of Schedule RC-C, Memoranda Section 1, dealing with maturities of loans.
The banking webinar establishes for the attendees basic priority rules concerning security, borrower and purposes when determining classifications of loans. It reviews the 8 major loan captions, the lease caption and the unearned income caption on Schedule RC-C. It also discusses the controversial and always difficult problems distinguishing between nonfarm nonresidential properties that are “owner occupied” (Line 1e1) and “other” (Line 1e2). It also discusses inclusions and exclusions from each loan schedule line, particularly loans to finance agricultural production and other loans to farmers; consumer loans and C&I loans. It also explains the differences between lines 9a and lines 9b1 and Line 9b2, Loans to nondepository financial institutions and other loans. The handling of the unearned income on loans (individual or in total on Line 11) is also discussed.
Other issues covered in this bank accounting webinar:
- Issues dealing with accounting for “sales” of loans as either secured lending or as a sale will also be discussed.
- A focus is placed on how loans are handled for maturity bucket purposes, using actual Call Report numbers.
- Considerable class time is used to discuss and explain TDR concerns and accounting for TDRs. Lesser time is allocated to small business and small farm loans.
- All personnel who prepare or review either the FFIEC 031 or FFIEC 041 will benefit from this concise coverage of the difficult and challenging Schedule RC-C.
Date of Event
Wednesday, December 12, 2018
About Paul Sanchez
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.