The enclosed materials pertain to the Reports of Condition and Income (Call Report) for the September 30, 2001, report date. Please complete your third quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by October 30, 2001, in accordance with the filing requirements discussed below. No extensions of time for submitting reports are granted.

If you complete the preparation and review of your Call Report before October 30, please file the report immediately rather than waiting until the submission deadline. Should you later find that certain information needs to be revised, please make the appropriate changes to your Call Report and promptly submit the revised data file electronically. Early submission aids the banking agencies in editing and reviewing the reports.

The Financial Accounting Standards Board has recently issued two new accounting standards on business combinations and on goodwill and other intangible assets. Banks must adopt these new accounting rules for Call Report purposes in accordance with the effective dates of the standards based on their fiscal years. Please refer to the enclosed Supplemental Instructions for additional information about these standards as well as guidance on other topics relating to the preparation of your Call Report.

Banks should note that, when completing Schedule RC-R, Regulatory Capital, they are not required to risk weight each asset that qualifies for a risk weight of less than 100 percent at its lower risk weight. Rather, each bank is permitted to decide for itself how detailed a risk-weighting analysis to perform. However, Call Report software products cannot for the most part determine the amounts and types of a bank's assets that qualify for lower risk weights without intervention by the bank's Call Report preparer. Therefore, to receive the benefit of the lower risk weights when the software calculates the risk-based capital ratios, banks are reminded that their Call Report preparer must specifically identify these lower risk-weighted assets and input them to the appropriate risk weight categories in the Schedule RC-R portion of their software. For example, on the FFIEC 041 report form, banks with total assets of less than $300 million are no longer required to report the amount of their currency and coin in another Call Report schedule. This means that the Call Report preparer must identify this amount and input it in Schedule RC-R if the bank wishes to take advantage of the less than 100 percent risk weight accorded these assets. The same attention is necessary for securities, loans, and other assets with favorable risk weights that are not specifically reported elsewhere in the Call Report.

Each bank must file its September 30, 2001, Call Report in one of the following two ways:

• A bank may use computer software to prepare its report and then file the report directly with the banking agencies' electronic collection agent, Electronic Data Systems Corporation (EDS). The Call Report data file can be sent to EDS electronically by modem or on a computer diskette.
• An institution may complete its report in paper form and arrange with EDS, a Call Report software vendor, or another party to convert its paper report to electronic form. If a party other than EDS performs this service, that party must electronically transmit the bank's Call Report data file to EDS.

Enclosures:
Supplemental Instructions

Distribution: Insured Commercial Banks and FDIC-Supervised Savings Banks

NOTE: Insured Commercial Banks and FDIC-Supervised Savings Banks.