OCC updates earnings and regulatory Comptroller’s Handbook

Agency Rule-Making & Guidance OCC Examination Comptroller's Handbook Bank Regulatory

On September 22, the OCC issued Bulletin 2021-44 announcing versions 1.0 of the “Earnings” and “Regulatory Reporting” booklets of the Comptroller’s Handbook. The new booklets apply to national banks, federal savings associations, and federal branches and agencies of foreign banking organizations, as well as the OCC’s supervision of community banks. The revised “Earnings” booklet rescinds the “Analytical Review of Income and Expense” booklet issued in March 1990 (with examination procedures issued in March 1998). The revised “Regulatory Reporting” booklet rescinds the “Review of Regulatory Reports” booklet, which was also issued in March 1990. The “Earnings” booklet, among other things, “supplements the earnings core assessments and provides examiners with expanded procedures to use when reviewing earnings for a specific line of business or the bank as a whole.” The “Regulatory Reporting” booklet, among other things: (i) pertains to call reports and similar financial reports but not, for instance, annual reports or those concerning nonfinancial activities; (ii) highlights sound risk management principles regarding regulatory reporting; and (iii) provides examiners procedures regarding assessing activities for a bank’s regulatory reporting. Although the rating system for federal branches does not include an earnings rating, examiners perform an earnings review, tailored to the activities of the federal branch, and, as such, the “Earnings” booklet is helpful guidance.