Train Your Board on the Call Report

Train Your Board on the Call Report

With the current regulatory focus resulting in longer exam cycles, we know that the bulls-eye is landing squarely on the integrity and accuracy of the Call Report to assess CAMELS ratings. Board governance and understanding is crucial. We suggest that you  train board members on the Call Report to assist them with this crucial oversight. The goal is not to overwhelm them. It is to give them confidence, the confidence that they understand their role, know what regulators care about, and can ask the right questions without needing a regulatory dictionary. So, let’s talk about how.

A great training session starts with reassurance:

Be sure to let them know:

• You don’t need to be Call Report experts to be effective directors.
• You just need to understand the story it tells and your role in making sure that story is accurate.

Start on a Positive Note:

Open training by acknowledging what board members already bring to the table. They know that their role is governance and oversight. They know the bank, the strategy, and the risks they have approved. The Call Report is simply another way that bank story gets communicated, this time to regulators.

Frame it this way:
The Call Report is the bank’s quarterly introduction. It speaks to regulators before the board ever does, and when it tells a clear, consistent story, it works for the bank. That perspective should instantly shift the mood from obligation to opportunity for directors who wear many hats and roles.

Help Directors Understand Why It Matters:

Next, explain, without alarm, that regulators rely heavily on the Call Report. They use it to:

• Spot trends early
• Compare the bank to peers
• Focus exam time efficiently

The good news? When the Call Report aligns with how the board understands the bank, exams tend to be smoother and more predictable. A well-understood report builds trust before anyone walks in the door.

Clarify What the Board Is (and Is Not) Expected to Do:

This is where training often becomes a relief. Make it clear that directors are not expected to prepare the Call Report or memorize line items. What examiners do appreciate is a board that:

• Knows what the Call Report says about the bank
• Notices meaningful changes
• Asks “what’s driving this?”
• Feels comfortable discussing trends at a high level

Oversight is about engagement, not expertise, and most directors are already doing more of this than they realize.

Show Them How to Read It with Confidence:

Keep this part practical and encouraging. Teach directors to focus on a few familiar areas:

• Big changes: Loans, deposits, or risk exposures that moved noticeably
• Credit trends: Past dues, charge-offs, and allowance activity
• Earnings: Results compared to the strategy the board approved
• Capital: Ratios that show strength and stability over time

Reinforce that asking questions is a sign of good governance, not skepticism.

Share What Regulators Love to See:

End training by highlighting the positives. Examiners consistently respond well to boards that:

• Receive a clear, high-level Call Report summary
• Talk about why numbers changed
• Encourage multiple reviews before filing
• Invest in ongoing board education
• Capture oversight in the minutes

These habits don’t require more time, just intention, and they send a powerful message that the board is engaged and informed.

Leave Them Feeling Good About Their Role

Wrap up training with this takeaway:

The Call Report will never be the most exciting agenda item but it is one of the most helpful. When boards understand it, discuss it, and ask thoughtful questions, it strengthens oversight, builds regulatory confidence, and makes exams easier for everyone.

And the best part? Most boards are already closer to this goal than they think. With the right training, the Call Report becomes less intimidating and a lot more empowering.