Issue link: http://www.epageflip.net/i/964842
JM Associates Federal Credit Union Notes to the Financial Statements Troubled Debt Restructurings (TDR) In situations where, for economic or legal reasons related to a member's financial difficulties, the Credit Union grants a concession for other than an insignificant period of time to the member that the Credit Union would not otherwise consider, the related loan is classified as a TDR. The Credit Union strives to identify members in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include interest rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where the Credit Union grants the member new terms deemed to be a concession, the Credit Union measures any impairment on the restructuring using the methodology for individually impaired loans. Loans classified as TDRs are reported as impaired loans. The following is a summary of information pertaining to troubled debt restructurings that occurred during the audit periods: As of September 30, 2017 # of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Residential real estate 0 $ - $ - Consumer 6 $ 51,875 $ 51,875 # of Loans Balance Troubled Debt Restructurings That Subsequently Defaulted: Residential real estate 0 $ - Consumer 0 $ - As of September 30, 2016 # of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Residential real estate 0 $ - $ - Consumer 0 $ - $ - # of Loans Balance Troubled Debt Restructurings That Subsequently Defaulted: Residential real estate 0 $ - Consumer 0 $ - 25 The Way We Do Things Has Changed. Who We Are Has Not! • 2017 Annual Report