The National Credit Union Administration (NCUA) rolled out some big changes to how federally insured credit unions complete the quarterly 5300 Call Report form.
Here’s an overview of credit union call reports, what’s changed, and what to look for.
What is a Call Report?
A call report is a quarterly disclosure form that banks and federally insured credit unions in the United States must file with the Federal Financial Institutions Examination Council (FFIEC) to remain in compliance with the Federal Deposit Insurance Corporation (FDIC).
The report data includes a Statement of Financial Condition balance sheet, loan values and statuses, and Risk Based Capital (RBC) ratio calculation.
Credit Union Call Report Data
The NCUA form has itemized fields for reporting quarterly credit union data, including:
- # of Members
- Total assets
- Total loans
- Total deposits
- Return on average assets
- Net worth ratio
- Loan-to-share ratio
- Quarter Growth % for:
- Total deposits
- Total loans
- Total assets
- Net worth
Check out BankProspector for up-to-date data from U.S. credit union and bank reports now.
Credit Union Call Report Changes
The March 2022 changes to Call Report Form 5300 are some of the final steps in completing the Call Report Modernization (CRM) project, an initiative that’s spanned several years.
These call report changes and updates are geared around streamlining and simplifying the reporting process while gathering a more accurate snapshot of a credit union’s financial health and status.
While the standard reporting requirements like balance sheets, financial statements, and risk based capital ratios remain part of the quarterly report, some big changes to terminology, loan definitions, and the reporting process itself will impact the way credit union data is tracked and analyzed.
Some of the big call report revisions include:
Call Report Terminology and Category Revisions
Several loan classifications have new data category names, and in some cases, more than one. Here are a few key changes that impact how real estate assets and loans are tracked.
Old Reporting: First Mortgage / 1st Mortgage
New Reporting: First Lien / 1st Lien
Real Estate Owned (Banked-Owned Asset)
Old Reporting: Real Estate, Vehicles, Other
New Reporting: Commercial, Consumer Real Estate, Consumer Vehicle, Consumer Other
All Other Loans
Old Reporting: All Other Loans
Now 3 Separate Categories
1. All Other Non-Real Estate Loans / Line of Credit (LOC) Loans
2. All Other Unsecured Loans / LOC
3. All Other (Non-Commercial) Real Estate Loans / LOC
Farm and Ag
Old Reporting: Farm and Ag
Now 2 Separate Categories
Old Reporting: Data grouped with commercial real estate figures
New Reporting: Multifamily is now a separate category
Call Report Delinquency Timeframe Changes
With recent reporting revisions, some delinquency timeframes are either not as detailed as they were, while others have been broken down into smaller windows.
Counts for Days Delinquent
Old Reporting: Counts for loans per days delinquent was tracked
New Reporting: Loans per days delinquent is no longer tracked, now all reported under Total 60+ Days delinquent loans
Old Reporting: Delinquency 60 – 170 days late
Now broken into 2 sections
1. 60 – 89 days late
2. 90 – 179 days late
Complex Credit Unions Definition
The NCUA defines a federally insured credit union with total assets greater than $500 million to be a “complex credit union.”
This update primarily applies to the Risk Based Capital (RBC) metrics reporting.
Complex credit unions must use the Risk-Based Calculation (RBC) ratio or, if eligible, the Complex Credit Union Leverage Ratio (CCULR) methods to determine their capital adequacy.
Risk-Based Capital Ratio
Credit unions with less than $500 million in total assets (non-complex credit unions) or complex credit unions that choose to go with the RBC method instead of the CCULR need to calculate a risk-based capital ratio per fields and instructions in the form.
Complex Credit Union Leverage Ratio (CCULR)
With the new NCUA revisions, complex credit unions (credit unions with more than $500 million in total assets) no longer need to calculate an RBC ratio if they maintain:
- A CCULR of 9% or greater
- Total off-balance sheet exposure of 25% or less of total assets
- Total trading assets plus total trading liabilities of 5% or less of total assets
- Total goodwill plus total other intangible assets of 25% or less of total assets
Call Report Changes: Investor Takeaway
Real estate investors who work directly with credit unions and banks to source non-performing loans and REO need to get up to speed on the recent revisions to credit union call reporting processes and categories. The new parameters and measures should help investors streamline loan and “sell” indicator analysis and provide a more accurate lender health status. Visit the NCUA regulatory reporting page for detailed information on all of the changes.
Check out our webinar to learn more about how to buy off-market REO and non-performing notes direct from banks and credit unions.