Sageworks introduces solution to manage TDRs

RALEIGH, NC (November 16, 2015)Sageworks, a financial information company that provides credit risk management solutions to financial institutions, today launched a new product as part of their solution set for banks and credit unions. The new solution, Sageworks TDR, was developed to help institutions manage and document decisions related to troubled debt restructurings (TDRs).

TDRs are impaired loans for which a bank or credit union has made concessions from the original loan terms so the borrower could meet debt-service obligations. Historically, TDRs have been often managed by individual credit analysts in disparate spreadsheets, and the analysts would be responsible for maintaining record of payment histories, concessions granted to the borrower, new loan terms and dates. This information is often scrutinized by examiners and auditors.

Sageworks TDR is an automated TDR tracking solution that reduces these administrative challenges, making it easier to maintain records and build documentation to justify classifying loans as TDRs and potentially reclassifying loans as non-TDRs or accrual status. This solution empowers banks and credit unions to:

• Centralize TDR information, making it easier to answer examiner and auditor inquiries
• See all borrower payment history in one location to better understand the borrower and note changes in collections
• Formalize a process and build documentation to support decisions to move TDRs back to accrual or non-TDR status
• Prevent spreadsheet data and version-control issues

The solution, using the Loan Modification Calculator, also affords bankers the ability to create and compare multiple restructuring scenarios to find the optimal new terms that mutually meet the borrower’s and institution’s targets. This ensures the bank will find the most efficient concession.

Sageworks TDR adds greater value in light of the September 2014 instructions from the FFIEC that detail how institutions are now able to remove TDRs from TDR status if (1) the borrower is no longer experiencing financial difficulty and (2) the new loan terms do not include a concession to the borrower. This announcement nullified that old adage that “Once a TDR, always a TDR.” Rather, with the right documentation supporting these criteria, a bank or credit union can remove the TDR designation and calculate the loan’s impairment value as part of a FAS 5 (ASC 450-20) pool instead of a specific impairment. Typically, this allows the institution to hold fewer reserves for that loan.

This new solution launched today, along with Sageworks Loan Pricing. For more information about Sageworks TDR, visit For additional risk management resources, or to learn more about the Sageworks suite of solutions, visit

About Sageworks

Sageworks offers banks and credit unions lending, credit risk and portfolio risk software to efficiently grow and improve the borrower experience. By automating the life of the loan with Sageworks, bankers book commercial loans faster and reduce risk. Sageworks uniquely provides integrated solutions and industry expertise to more than 1,400 financial institutions that achieve an average 38% higher loan growth than peers. Visit to learn more.


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