The identification and management of loans considered to be troubled debt restructurings have provided bankers with frustration, especially since the broad use of modifications stemming from the 2008 recession. This frustration, which continues today, has caused a number of banks either to not report TDRs, account for them incorrectly, or avoid needed modifications altogether in order to avoid the topic. This presentation will take the mystery out of TDR management and provide the attendee with a greater degree of confidence as they manage credits considered to be TDR.
Topics to be covered include:
- Properly identifying loans considered to be TDR
- Including circumstances where a modification might not be considered a TDR
- Managing TDR including
- Risk Rating
- Accrual Status
- Impact on the ALLL – including credits considered collateral-dependent and not collateral-dependent
- Brief commentary regarding troubled debt restructurings and the Current Expected Credit Loss (CECL) model
- Regulatory Reporting
- Addressing the common phrase: ‘Once a TDR, Always a TDR? – is this true?
- Discussion regarding Section 4013 modifications and relationship to TDR reporting as prescribed in the CARES Act
Target Audience: This presentation is intended for personnel involved with the restructuring or modification of credits which could be identified as TDR including those responsible for the reporting of TDR and its impact on the Bank’s ALLL.
Presenter: Aaron Lewis, Young & Associates
Recording available through: July 21, 2021