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Seminar on Commercial Real Estate Loan Workouts and Related Accounting Issues

Miscellaneous
November 23, 2011

Summary: The FDIC will host a free telephone seminar to discuss prudent commercial real estate (CRE) loan workouts and related accounting issues, including the treatment for troubled debt restructurings (TDRs). The seminar will be held from 1:00 to 2:30 p.m. EST on December 15, 2011. Employees of all FDIC-supervised institutions are invited to participate.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter is available to all FDIC-supervised financial institutions. 

Highlights:

  • The FDIC recognizes that prudent CRE workouts are often in the best interest of financial institutions and creditworthy CRE borrowers.
  • Financial institutions and borrowers face significant challenges when dealing with diminished operating cash flows, depreciated collateral values, or prolonged sale and rental absorption periods.
  • Financial institutions engaging in workout activities have raised questions regarding CRE workouts and the related accounting issues, including the treatment for TDRs.
  • The seminar will consist of a short discussion regarding the CRE-related issues raised by financial institutions, followed by a question-and-answer period.
  • Participants are encouraged to submit questions in advance to RAC@FDIC.gov with CRE Workouts or CRE Accounting in the subject line.
  • Financial institution officers and employees wishing to participate in this free telephone seminar should dial 888-946-8383 and enter pass code 2915837# to join the presentation 30 minutes before the 1:00 p.m. EST start time.

Distribution: 
FDIC-Supervised Banks (Commercial and Savings) 
FDIC-Supervised Savings Associations

Suggested Routing: 
Chief Executive Officer 
Chief Lending Officer 
Chief Financial Officer 
Chief Accounting Officer 
Call Report Preparer

Related Topics: 
Policy Statement on Prudent CRE Workouts (FIL-61-2009) 
Managing CRE Concentrations in a Challenging Environment (FIL-22-2008) 
Interagency Statement on Meeting the Needs of Creditworthy Borrowers (FIL-128-2008) 
Allowance for Loan and Lease Losses: Revised Policy Statement and Frequently Asked Questions (FIL-105-2006) 
Consolidated Reports of Condition and Income

Note: 
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2011/index.html. 

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html. 

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200). 

Additional Related Topics:

  • Transcript
FIL-71-2011
Contact(s)
Robert Storch, (202) 898-8906

Last Updated: November 23, 2011