6 Facts About Troubled Debt Restructures

Credit unions are modifying loans to help members in financial distress.

 
 

Total TDR Loans Oustanding
For all U.S. credit unions | Data as of March 31
© Callahan & Associates | www.creditunions.com

gow1-8-25-2014

Credit unions have proven to be supportive of members who are in financial distress. The dollar amount credit unions hold in TDRs has increased 32.5% from March 2011 to March 2014, and the nearly 241,000 total number of TDRs credit unions held as of March 2014 represents a 78.3% increase over 2011. But today's improved economy means fewer members need help; subsequently, the total amount credit unions hold in TDRs has decreased from March 2013. The year-over-year growth in the number of TDRs has also decreased, from 40.3% in March 2013 to 9.2% in March 2014.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

TDR Accrual Status By Number
For all U.S. credit unions | Data as of March 31
© Callahan & Associates | www.creditunions.com

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The increase in the percentage of TDRs in accrual status — or the decrease in the percentage of TDRs in nonaccrual status —suggests that more TDR loans are performing as planned.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

Delinquency For First Mortgages And TDRs
For all U.S. credit unions
© Callahan & Associates | www.creditunions.com

Both first mortgage delinquency and TDR delinquency have decreased over the past year.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

YTD Number And Amount Of TDR Loans Approved
For all U.S. credit unions | YTD Data as of March 31, 2014
© Callahan & Associates | www.creditunions.com

gow3-8-25-2014

Credit unions modified 22,494 TDRs during the first three months of 2014; that's down 2.3% from the first three months of 2013. Credit unions approved $543.0 million in TDRs during the first quarter of 2014, which is a 22.5% decrease from first quarter 2013. The decrease in the number and amount of TDR approvals year-to-date is largely the result of improved member financial situations amid a recovering economy.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

TDR Loan Composition
For all U.S. credit unions | Data as of March 31, 2014
© Callahan & Associates | www.creditunions.com

Nearly three-quarters of the total TDR loan portfolio is secured by first mortgages. Consumer loans not secured by real estate came in second and represented 16.6% of the TDR portfolio as of March 2014.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

TDR Portion Of ALL Losses
For all U.S. credit unions | Data as of March 31, 2014
© Callahan & Associates | www.creditunions.com

gow4-8-25-2014

The $1.15 billion in TDR losses as of March 2014 represents 15.9% of total allowance for loan and leases losses at credit unions.

Source: Callahan & Associates’ Peer-to-Peer Analytics

 

 
 

Aug. 25, 2014


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