5300 Call Report FAQs

Part 749 of the NCUA regulations requires credit unions to keep either a hard copy or an electronic copy in their permanent records.  

No.  

"Cash on Hand" means coin, currency, and cash items on hand. It is not possible to have negative cash on hand.  

This data feeds into the credit union's Risk Based Net Worth (RBNW) calculation. For PCA purposes, step-ups are risk-weighted at the period remaining to maturity. (The NCUA regulations part 702)  

This data feeds into the credit union's Risk Based Net Worth (RBNW) calculation. For PCA purposes, FHLB stock is risk-weighted at 6% (>1 but < = 3 years). (The NCUA regulations part 702)  

Yes.  

You should report these advances under "All Other Unsecured Loans/Lines of Credit." According to the Joint Guidance on Overdraft Protection Programs transmitted with Letter to Credit Unions 05-CU-03, when the credit union pays overdrafts, credit is extended. You should report overdraft balances as loans. Accordingly, you should charge off overdrafts against the allowance account.  

A debit allowance balance does not comply with GAAP guidelines and is contrary to the concept of an  allowance for losses.  

No. The credit union should write down the repossessed collateral to fair value (less cost to sell) at the time of repossession. If the credit union intends to sell the repossessed collateral, you should move it out of loans and into "Foreclosed and Repossessed Assets." There should be no delinquency balance remaining on the books when moved out of loans because of the write down.

GAAP does not define "long-lived assets." Presumably, they are depreciable assets (automobiles, equipment, and real estate) with a useful life in excess of one year. An asset whose future benefit is expected for a number of years is also called long-term asset.  

Report 1 loan granted year-to-date for any line of credit (including credit card loans) that has an advance on it in that year. The credit union will either report "1" (one or more advances in that year) or "0" (no advances in that year). The amount reported would include all advances in that year.  

You must report funds where they reside as of the cycle end date. Report share draft subaccount balances as share drafts. Report money market subaccount balances as money market shares.  

The FHLB has various borrowing programs. In the case of a line-of-credit, report outstanding balances on page 3, accounts 883A, 883B1, and 883B2 - Draws Against Lines of Credit, and report the total credit line on page 11, accounts 884D1, 884D2, and 884D - Lines of Credit.  

Report only the amount of uninsured shares and deposits. Do not include notes payable or other forms of borrowings.  

A credit union must report gross ATM income in the income section of the income statement and ATM expenses in the expenses section of the income statement. You should not net the ATM income and expenses.  

You should report interest on deposits under "Dividends on Shares." The Federal Credit Union Act authorizes low income designated FCUs to receive shares, share drafts, and share certificates from nonmembers. The FCU Act refers to these as shares, not deposits. We maintain the same nomenclature in the Call Report. (FCU Act §107(6))  

No. You should count each member only once, regardless of the number of accounts held by a particular member.  

The credit union would first report the loan in the applicable real estate delinquency category. You would then report the same loan balance in the appropriate commercial loan category on the “Additional Delinquency Information” schedule. The totals entered on this page do not count as delinquency totals for aggregate credit union delinquency.  

The credit union would first report the balance of the loan charge off in the applicable real estate category directly under the heading titled Loan Loss Information. You will report the same loan balance on the Participation Loans lines on the Additional Loan Loss Information schedule. This line is one component of supplemental reporting under the Additional Loan Loss Information heading. The amounts entered under this heading do not count as additional charge offs or effect the net charge off ratio.  

The NCUA rules and regulations §701.21(c)(3) requires credit unions to establish a cap on the total dollar amount of all overdrafts the credit union will honor.  FFIEC guidance requires the establishment of well-defined and properly documented dollar limit decision criteria. Credit unions should report their cap amount minus any outstanding advances. (The NCUA RR §701.21(c)(3); FFIEC Joint Guidance on Overdraft Protection Programs)  

If you transfer a loan with "substantial recourse" per GAAP, the credit union is required to keep the loan on its books. You would record a loan, but no contingent liability.  

Yes. Credit unions using open-end loan forms should report the difference between approved limits and outstanding balances under “Other Unfunded Commitments.”  

By using one of the optional total assets elections as the denominator in the net worth calculation, a credit union may receive a higher net worth ratio. As a result, a credit union could improve its net worth position to above 7% and not be subject to PCA requirements if the standard net worth calculation is below 7%.  

No. A RBNW requirement is only applicable for those credit unions with assets greater than $10 million and a RBNW requirement greater than 6%.  

$40,000, and the credit union would comply with all of the requirements of Part 723 in making this loan because the loan caused the aggregate amount of business purpose loans to the member to exceed the $50,000 threshold in the NCUA rules and regulations §723.8.  

These loans are not Commercial Loans as defined in the NCUA rules and regulations §723.2 and as such you will report them as you would any other Non-Commercial loan based on the loan characteristics in the various schedules.   

Yes. The definition of Commercial Loan and Member Business Loan are both distinct and not mutually exclusive. Attention must be paid to the specific definitions of each. Commercial Loans and Member Business Loans are defined in the NCUA rules and regulations §723.2 and §723.8 respectively. See the quick reference chart below:

No. These loans are no longer Commercial Loans. Likewise, they are no longer Member Business Loans. 

Report fixed-rate loans based on original maturity. Report balloons/hybrids based on the period the original interest rate remains fixed. Report adjustable-rate loans based on the adjustment period.  

No. Loans that are not funded by the credit union and, at settlement, are assigned to the party advancing the funds should not be reported as loans sold. (See the NCUA rules and regulations Part 760 for a definition of table funded loan.)  

Yes. You should report the loan as sold but serviced as long as the credit union still services the loan.  

No. Account 712 is used to calculate the amount of long-term real estate loans for Risk Based Net Worth (RBNW) purposes. The NCUA rules and regulations Section 702.104(a) defines “long-term real estate loans.” The definition does not exclude near-term cash flows on long-term real estate loans. The NCUA also uses account 712 in the net long-term assets calculation. Reporting cash flows on long-term real estate loans results in an underreporting of the credit union’s RBNW requirement and ratio of net long-term assets. 

You must complete applicable fields for accounts 691L1 through 691L9 under the Purchased Outstanding on Financials Statements heading. The Total Participations Outstanding (Account 691L) must equal the balance recorded for Total Participation Loans Purchased (Account 619B) for no errors to occur with loan participations purchased.  

You must complete applicable fields for Accts 691N1 through 691N9 in the Portion of Participations Sold, Outstanding on Financials Statements subsection in the Participation Loans Outstanding By Type section. The Total Outstanding amount of in the Portion of Participations Sold, Outstanding on Financial Statements (Account 691N) subsection must equal the Amount Retained column in the Outstanding Participation Loans Sold section, Participation Interest Retained subsection, Total Outstanding Sold  (Account 691E) for no errors to occur with loan participations sold.

No. Once the final call passes, the investment no longer has an embedded option associated with the call feature. (The NCUA rules and regulations Sections 703.2 and 703.12(b))  

Yes. SimpliCDs are not direct purchases and therefore should be reported as brokered CDs.