Navy Federal Credit Union 2015 Annual Report Download - page 42

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Financial Section 23
2015—SHARED SUCCESS
(dollars in thousands) 2015 2014
Consumer $ 136,153 $ 92,977
Credit card 107,866 76,919
Real estate 105,088 134,622
Total $ 349,107 $ 304,518
Troubled Debt Restructurings
TDRs are individually evaluated for impairment beginning in the month of restructuring.
Impairment is measured as the dierence between the net carrying amount of the loan (less any
fees received to aect the restructuring) and the modified future expected cash flows discounted
at the loan’s eective interest rate. Loans that have been discharged in Chapter 7 bankruptcy are
classified as TDRs. Non-performing Chapter 7 bankruptcy TDRs are measured for impairment
based on the value of the underlying collateral.
The following tables summarize the financial impact, by concession type, of loans that became
TDRs during the years ended December 31, 2015 and 2014:
Troubled Debt Restructurings During the Year Ended December 31, 2015(1)
(dollars in thousands)
Interest Rate
Reduction & Term
Extension
Interest Rate
Reduction Term Extension Other(2) Total
Consumer $ 4,376 $ 6,465 $ 12,385 $ 2,717 $ 25,944
Credit card — 32,518 — 14 32,532
Real estate 5,327 464 1,539 4,547 11,877
Total $ 9,703 $ 39,447 $ 13,924 $ 7,278 $ 70,353
(1)Excludes loans that were classified as TDRs in prior years and re-modified during the year.
(2)Includes TDR loans resulting from actions taken by a bankruptcy court, such as the reduction of the loan’s contractual principal or interest,
or where the borrower has been released from personal liability, and mortgage deferrals.
Troubled Debt Restructurings During the Year Ended December 31, 2014(1)
(dollars in thousands)
Interest Rate
Reduction & Term
Extension
Interest Rate
Reduction Term Extension Other(2) Total
Consumer $ 3,806 $ 7,653 $ 9,549 $ 2,490 $ 23,498
Credit card — 31,795 — 1,625 33,420
Real estate 4,503 269 645 6,862 12,279
Total $ 8,309 $ 39,717 $ 10,194 $ 10,977 $ 69,197
(1)Excludes loans that were classified as TDRs in prior years and re-modified during the year.
(2)Includes TDR loans resulting from actions taken by a bankruptcy court, such as the reduction of the loan’s contractual principal or interest,
or where the borrower has been released from personal liability, and mortgage deferrals.
In subsequent periods, income is recognized based on a loan’s modified expected cash flows and
revised eective interest rate. Additional impairment is recognized for TDRs that exhibit further
credit deterioration after modification.