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This Seminar is CANELLED!
TREATING IMPAIRED LOANS- How to Manage, Account For, and Collect Them
Thursday, February 25, 2010
Cost: $250 members; $500 non-members (this price is for online registration only)
Register by February 12th
The full fee is payable for cancellations after the deadline, however, a substitute may attend. No shows will be billed for the full fee.
LUNCH WILL BE ON YOUR OWN
COURSE DESCRIPTION
According to the Financial Accounting Standard Board (“FASB”) 114, a loan is impaired when, based on current information and events, it is probable that a creditor will be unable to collect all amounts due (Principal and Interest) according to the original contractual terms of the loan agreement. It is implicit in these conditions that it must be probable that one or more future events will occur confirming the fact of the loss.
In the current economic environment, bankers find themselves with a portfolio of loans that are considered “Impaired” and as such, they require special treatment. In managing Impaired Loans, there are two distinct requirements that must be employed as follows:
1. Proper “Accounting” of Impaired Loans under FAS 114 and proper Trouble Debt Restructure Accounting.
2. Employing proven commercial loan collection strategies and techniques to increase the probability of being repaid from sources other than the liquidation of collateral.
In accomplishing the first requirement, the Financial Regulators (FFIEC, FDIC, OCC, FRB, OTS and NCUA) issued the “Policy Statement on Prudent Commercial Real Estate Loan Workouts” dated October 31, 2009. This guidance will be covered in detail during this seminar including several cases illustrating the proper treatment of loans with varying financial conditions and circumstances. Other areas to be covered include in this section include:
- Determining the Amount of Impairment Utilizing the Three Impairment Amount Methodologies under FAS 114
- Determining Collateral Valuation for Real Estate Secured Loans
- Making Supportable Adjustments to the Allowance for Loans and Lease Losses in Managing Impaired Loans
- Understanding Accounting Practices Required to Manage a Troubled Debt Restructure
In accomplishing the second requirement for employing proven commercial loan collection strategies and techniques the following topics will be covered:
- Recognizing the Early Signs of Loans that may Become Impaired
- Assessing the Collateral Position of all Creditors and Their Impact on your Borrower
- Checking All Types of Insurance Coverage
- Utilizing Financial Covenants in a Loan Agreement Effectively
- Capitalizing on Tax Refunds From Loss Carrybacks Which Can be Applied to Your Loan
- Avoiding Pitfalls that Might Impede Enforcement of Rights
After completion of this session, you will have an improved understanding of banking regulators’ and the accounting profession expectations and requirements in managing Impaired Loans. You will also have a better understand of what alternatives are available in order to increase the potential for full repayment by employing proven commercial loan collection techniques and strategies.
WHO SHOULD ATTEND?
Chief Executive Officers
Directors
Chief (Senior) Credit Officers
Commercial Loan Officers
Consumer Loan Officers
Loan Review Personnel
Compliance Officers
Credit Analysts
Bank Accountants
Bank Legal Counsel
PRESENTER
Jeffery W. Johnson, President and Senior Consultant, started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender for SouthTrust Bank (a large Southeastern Regional Bank) and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta (Community Bank). Most of his career has been spent in Credit Administration, Lending (Commercial, Consumer and Real Estate), Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individuals, Middle Market Companies, Small Businesses, Real Estate and Non-Profit Organizations and managed several loan officers with portfolio management responsibilities.
Mr. Johnson is now a training professional in the banking industry by leading various seminars covering important topics relating to issues in banking. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual banks nationwide. He co-authored a training course entitled “Lending to Service and Other Professional Organizations” for RMA in 2001. Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta, GA; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking Diploma from Prochnow School of Banking at the University of Wisconsin-Madison and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.
Driving Directions & Parking
Parking is validated in the Walker Center
Coming from I-15 South take the 600 South Exit and coming from I-15 North take the 4th South Exit and proceed east to State Street. Turn left on State and left again on 200 South heading west. At the crosswalk between State Street and Main Street, turn right onto Regent Street and immediately left into the Walker Center Parking Garage. Unreserved parking is available above level 5. Take the parking garage elevators to the 7th floor for access to the 6th floor of the Walker Center. Once you are in the Walker Center Building, take the elevators to the 14th floor to Suite 1420. You may also take TRAX and get off on the Gallivan Center Station. The Walker Center is on the North East corner of 200 South and Main Street.
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