6 Facts About Troubled Debt Restructures

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

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

gow2-8-25-2014

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

August 25, 2014

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