Problem Loan Resolution
In today’s banking climate, problem loans and portfolio liquidity represent the most significant risks to the future of community and regional banks. The significant decline in real estate values across a majority of asset classes, combined with slow economic growth and high unemployment, has weakened loan portfolios and threatened the economic viability of more than 1,000 banks that regulators have labeled as “problem banks.” Proper management and resolution of these problem credits is one of the most crucial ingredients in the formulation of a survival strategy and is critical to the minimization of loss and the bank’s ability to maintain adequate capital.
Dittrich & Associates provides an innovative and strategic approach that promotes transparency within each individual credit and provides a roadmap for successful resolution of these problem loans. Our team is comprised of carefully selected and proven professionals who have each been highly instrumental throughout their careers in managing, restructuring and resolving thousands of even the most difficult problem credits. These individuals have distinguished banking careers. They have worked for banks, FDIC contractors, the Resolution Trust Corporation and numerous private consultants in addressing the problems found in today’s bank loan portfolios. Their unique skills , banking expertise, and educational background (many are CPAs, lawyers and real estate brokers) enables them to function within regulatory guidelines while providing a level of creativity that is not readily available in most banks.
Loan Policies and Procedures for addressing these troubled loan portfolios are uniquely designed and modified to fit each and every client we serve. Within the context of these policies, we are able to train and work with existing staffs to resolve problem credits and minimize loss. It is our goal to organize the special asset function to work efficiently and effectively to resolve the problem portfolios while building an infrastructure and an internal team capable of mitigating future problems that might arise within the performing portfolio. Fittingly, our team has methodically been infused with industry experts from a wide range of backgrounds and specialties, each providing a complimenting dynamic to the team and presenting our clients with a highly versatile and effective partner in meeting all their problem loan resolution needs.