NCUA changing Q2 call reports to reflect coronavirus

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The National Credit Union Administration has announced changes to second-quarter call reports as a result of the Coronavirus Aid, Relief, and Economic Security Act and recent amendments to the agency’s own regulations as a result of the pandemic.

The modifications include:

  • New accounts to capture both the number and dollar amount of forbearance loans credit unions have granted. Those loans will not be reported on either delinquency or troubled-debt restructuring schedules.
  • Sections to specify both the number and dollar amount of loans credit unions have issued through the Small Business Administration’s Paycheck Protection Program.
  • An account capturing the amount of PPP loans pledged as collateral to the PPP Lending Facility.
  • Risk-based net worth calculations will also be modified to apply a zero-risk rating to PPP loans. Similarly, PPP loans pledged as collateral to the PPPLF will be excluded from total assets.
  • The asset threshold requirement for risk-based net worth has been changed from $50 million to $500 million.

While call reports for the quarter ending March 30 offered a glimpse into how credit unions have been affected by the pandemic, second-quarter call reports are likely to give a much clearer of the impact. First-quarter 5300s were initially due to the agency by April 26 but the agency extended that deadline by 30 days without fear of penalty. A recent report from S&P Global Market Intelligence found that as of May 15 roughly 9% of the industry, nearly 500 credit unions, had not filed their call reports, including at least 20 CUs with more than $1 billion in assets.

The agency has not yet said if it will extend the filing deadline for call reports for the quarter ending June 30.

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Financial regulations Compliance Financial reporting CARES Act Coronavirus NCUA Law and regulation