The Headache: Rising levels of nonperforming loans, especially commercial real estate credit, challenge the industry.
Our Question: What is your bank doing to deal with the workout challenge?
Come see what other bankers think, and add your own views
How is your bank handling loan workouts?
The only way to dig your way out of trouble is, well, to dig.
But if you don't want to just have the dirt fall back and hit you in the head, you've got to get yourself organized right.
We're asking bankers:
• How is your bank handling loan workouts?
• Do you use designated staff or do lenders work out their own problem loans?
• Are you successfully using the regulators' 2009 commercial real estate workout guidance?
We've already received responses from some bankers. Come join the conversation!
Let's hear your views and ideas below!
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Billie Wade, Citizens Union Bank, Shelbyville, Ky.
said:
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We have formed a ?workout committee? that consists of several senior executives, our risk manager, and three directors. We moved a senior market executive who had previous workout experience with a large bank into a full-time workout position. We also use a law firm with expertise in collection as consultants to the committee. At least one of the lawyers is in attendance by phone or in person at all committee meetings. The credits assigned to this committee are primary the larger, more complex ones. The committee in general deals with 8 to 12 credits at any time. Our collection department is still dealing with the remaining credits that are delinquent or experiencing problems. |
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Bill Grant, First United Bank & Trust, Oakland, Md.
said:
| We have complied with the 2009 commercial real estate guidance. We have also added additional resources to the workout area. We balance carefully the regulatory mandates with helping our customers through a very difficult time. We have staff dedicated to workouts. Their efforts are reviewed to determine if the loan is impaired, if a loss is probable, and whether a workout amounts to a troubled debt restructuring. We also have specialized staff working with other real estate owned. | |
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