ancial I in ns F ti l t a u r t i e o d n e s F E l x i a c Federal Financial Institutions m n i u nation Co Examination Council ANNUAL REPORT 2017 Board of Governors of the Federal Reserve System Consumer Financial Protection Bureau Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency State Liaison Committee Members of the Council Martin J. Gruenberg, FFIEC Chairman, Chairman, Federal Deposit Insurance Corporation Mick Mulvaney, Randal K. Quarles, ancial I FFIEC Vice Chairman, in ns Member and Vice Chairman for Acting Director, Consumer Financial F ti Supervision, Board of Governors of l t Protection Bureau a u the Federal Reserve System r t i e o d n e s F E l x i a c m n i u nation Co Greg Gonzalez, Joseph M. Otting, Chairman, Comptroller of the Currency, State Liaison Committee, Office of the Comptroller of the Currency Commissioner, Tennessee Department of Financial Institutions J. Mark McWatters, Chairman, National Credit Union Administration FFIEC Annual Report | 2017 iii Letter of Transmittal Feeral Fnanal Inttuton Eanaton Counl 01 Fara re • Roo 701a • Arlnton A 2222-0 • 70 15588 • FA 70 26446 • eo March 30, 2018 The President of the Senate The Speaker of the House of Representatives Pursuant to the provisions of section 1006(f) of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (12 U.S.C. § 3305), I am pleased to submit the 2017 Annual Report of the Federal Financial Institutions Examination Council. Respectfully, Martin J. Gruenberg Chairman oar o oernor o te Feeral Reere te Conuer Fnanal roteton ureau Feeral epot Inurane Corporaton National Credit Union Administration, Office of the Comptroller of the Currency, State Liaison Committee FFIEC Annual Report | 2017 v Table of Contents Members of the Council ..........................................................................ii Letter of Transmittal .............................................................................iv Table of Contents ................................................................................vi Chart of Selected Abbreviations ................................................................. viii Message from the FFIEC Chairman ................................................................x Overview of the Federal Financial Institutions Examination Council Operations .........................4 Record of Council Activities .......................................................................8 State Liaison Committee .........................................................................12 Activities of the Interagency Staff Task Forces ......................................................14 Task Force on Consumer Compliance .........................................................15 Task Force on Examiner Education ............................................................17 Task Force on Information Sharing ............................................................21 Task Force on Reports .......................................................................23 Task Force on Supervision ...................................................................27 Task Force on Surveillance Systems ...........................................................30 The Federal Financial Institution Regulatory Agencies and their Supervised Institutions .................34 Board of Governors of the Federal Reserve System ..............................................36 Consumer Financial Protection Bureau ........................................................38 Federal Deposit Insurance Corporation ........................................................40 National Credit Union Administration ........................................................42 Office of the Comptroller of the Currency ......................................................43 Assets, Liabilities, and Net Worth of U.S. Commercial Banks, Savings Institutions, and Credit Unions as of December 31, 2017 ............................................................................44 Income and Expenses of U.S. Commercial Banks, Savings Institutions, and Credit Unions for the Twelve Months Ending December 31, 2017. .45 Appendix A: Relevant Statutes ...................................................................46 Appendix B: 2017 Audit Report ...................................................................54 Appendix C: Maps of Agency Regions and Districts .................................................70 Board of Governors of the Federal Reserve System ..............................................72 Consumer Financial Protection Bureau ........................................................73 Federal Deposit Insurance Corporation Supervisory Regions. 74 National Credit Union Administration ........................................................75 Office of the Comptroller of the Currency .....................................................76 Appendix D: Organizational Listing of Personnel ...................................................78 FFIEC Annual Report | 2017 vii Chart of Selected Abbreviations ACSSS ................... American Council of State Savings FRB ........................ Board of Governors of the Federal Supervisors Reserve System ALG .......................Agency Liaison Group FSOC ..................... Financial Stability Oversight Council AML ......................Anti-Money Laundering HMDA .................. Home Mortgage Disclosure Act of ASC ......................Appraisal Subcommittee 1975 Assessment ...........Cybersecurity Assessment Tool IBA .........................International Banking Act of 1978 BHC .......................Bank Holding Company IT ............................Information Technology BSA ........................Bank Secrecy Act LAG .......................Legal Advisory Group Call Report ........... Consolidated Reports of Condition MOU......................Memorandum of Understanding and Income NASCUS .............. National Association of State Credit CCIWG ................. Cybersecurity and Critical Union Supervisors Infrastructure Working Group NCUA ................... National Credit Union CDR .......................Central Data Repository Administration CECL .....................Current Expected Credit Losses NCUSIF ................. National Credit Union Share CFPB ...................... Consumer Financial Protection Insurance Fund Bureau OCC ....................... Office of the Comptroller of the Council .................. Federal Financial Institutions Currency Examination Council OMB ......................Office of Management and Budget CRA ....................... Community Reinvestment Act of OTS ........................Office of Thrift Supervision 1977 PRA .......................Paperwork Reduction Act of 1995 CSBS ...................... Conference of State Bank SAWG .................... Supplementary Analysis Working Supervisors Group DIF .........................Deposit Insurance Fund SDRWG ................. Structure Data Reconciliation Dodd-Frank Act ... Dodd-Frank Wall Street Reform and Working Group Consumer Protection Act of 2010 SEC ........................ Securities and Exchange EEO........................Examiner Education Office Commission EGRPRA ............... Economic Growth and Regulatory SIFI......................... Systemically Important Financial Paperwork Reduction Act of 1996 Institution FDIC ...................... Federal Deposit Insurance SLC ........................State Liaison Committee Corporation SLHC ..................... Savings and Loan Holding FDICIA .................. Federal Deposit Insurance Company Corporation Improvement Act of SOD .......................Summary of Deposits 1991 TFCC ..................... Task Force on Consumer FFIEC .................... Federal Financial Institutions Compliance Examination Council TFEE ......................Task Force on Examiner Education FHC .......................Financial Holding Company TFIS .......................Task Force on Information Sharing FinCEN ................. Financial Crimes Enforcement TFOR .....................Task Force on Reports Network TFOS ......................Task Force on Supervision FIRIRCA ............... Financial Institutions Regulatory TFSS .......................Task Force on Surveillance Systems and Interest Rate Control Act of 1978 TSP .........................Technology Service Provider FIRREA ................. Financial Institutions Reform, TWG ......................Technology Working Group Recovery, and Enforcement Act of UBPR .....................Uniform Bank Performance Report 1989 FFIEC Annual Report | 2017 ix Message from the FFIEC Chairman • Simplifying Capital Rules. In September 2017, the agencies sought industry feedback on a proposal to simplify the capital rules for community banks with respect to high volatility commercial real estate exposures, mortgages servicing assets, timing differ- ences of deferred tax assets and holdings on regulatory capital instruments. The agencies also proposed in August 2017, and finalized in November 2017, a revision to the regulatory capital rules to pause the phase-in of certain regulatory capital adjustments and deduc- tions that are a part of the Basel III capital standard. • Reducing Regulatory Reporting. The FFIEC Chairman, Martin J. Gruenberg. agencies have adopted a new, streamlined Call Report for institutions that do not have foreign offices and hold total assets I am pleased to report on the activities of the of less than $1 billion (Form