Castlebar Holdings

?? ?? NEW GUIDANCE FROM OCC REGARDING COMMERCIAL LENDING, SPECIFICALLY REFINANCING RISK. ?? ?? Today the OCC just issued new guidance on Refinancing Risk with respect to commercial loans. I know many of us have been discussing and scratching our heads why, if there is a $1T "maturity wall" of CRE maturities combined with softening revenue, increasing expenses and higher interest rates, we haven't seen that translated into higher distressed transactions or reflected in banks / credit unions financials (increase in loan loss provisions, charge offs or even "modifications"). Well, apparently the OCC was wondering the same (or has seen enough evidence) and has issued new guidance on how banks should manage refinancing risk. I encourage all my bank / credit union friends to review this guidance. Many of you are way ahead of the curve and there is nothing new in this bulletin. For others, it is a great refresher and now is the time to start game planning, stress testing, training, and building policies & procedures to stay in accordance with this guidance. Castlebar Holdings is ready to help and I am happy to share my Workout 101 playbook with any financial institutions interested. Please message me or reach out at [email protected] #distresseddebt #cre #occ #banks https://lnkd.in/evEcV2nF

"I'm Back" two words that announced Michael Jordan's return to the Chicago Bulls (and fired up my 12 yo self). While I am certainty not the GOAT; I am returning to the beloved city where my I have deep familial roots to speak at Information Management Network (IMN) Distressed Forum for Bank Special Assets (Midwest) on September 23-24 in Chicago, IL. I'll on the panel covering "Year in Review: Distressed CRE Market Outlook & The Special Assets Landscape". With an industry leading program and critical networking opportunities, this forum is a must-attend for bankers, private equity funds/investors, turnaround firms, law and accounting professionals, receivers, auction providers, special servicers, brokers, and advisors. I hope to see a lot of folks there and grab an Italian Beef and (fingers crossed) my Cubs are still competitive in late September. #IMNEvents #BankersMW #distresseddebt #CRE

Given the last few days, there has been a lot of handwringing and volatility in the market due to what maybe a upcoming recession (hard landing). At The Risk Management Association we've been putting out a lot of content about problem assets, early warning signs, workout and distress over the last few years. Just last week the RMA sent out a "Credit Crunch" email with links to various articles published on the workout topics (full disclosure, a few of the articles are mine). If you're not a part of the RMA, some of the articles are paywalled (I highly recommend banks / institutions join), but my articles (as well as webinars) are available at Castlebar Holdings website under "Resources". Early intervention is the key to obtaining the best results for the bank as well as the borrower. Don't wait until your customer's cash crunch becomes a crisis. Get your workout professionals involved sooner rather than later. As always Castlebar Holdings is available to assist as well. #workout #hardlanding #recession #problemloans #cre https://lnkd.in/eQESM7u3

I'm excited to announce that the June/July issue of The Risk Management Association Journal is now available! In my regular column, "The Workout Window," I address important topics such as how banks should handle partnership disputes between customers, establish a course of dealing, and optimize exit strategies. I'm always eager to answer your questions, so please feel free to send them to me at [email protected]. Rest assured, I will omit any identifiable details. Additionally, this issue features my NPV article on achieving the best strategic results for problem loans. Don't forget to visit the Castlebar Holdings website under "Resources" to access all of my webinars and written pieces. As always, I'm here to assist with any challenges you may be facing in your portfolios, especially in this uncertain economic environment. #riskmanagementassocation #rma #distresseddebt https://lnkd.in/eC99-_bw

Folks, please take a few minutes to read and share my latest article that will be published in the June / July in the The Risk Management Association Journal, "Maximizing Shareholder Value: Employing NPV Analysis for Optimal Loan Resolutions". Obviously bad loans increase losses and costs for financial institutions. But banks can compound and exacerbate these losses by not being strategic about their problem loans and either forcing bad positions or holding on to problem loans for too long, slowly eroding shareholder value in order to be paid off in full at some uncertain date in the future (the well-secured fallacy). These strategies are sometimes driven by myopic focus on individual incentives or attempts to manage the financial reporting of the institution on a quarter to quarter basis. When banks think critically about their problem loans and run through all scenarios on an NPV, inclusive of reasonable costs, holding periods, and liquidation events, they by definition get the best result for their shareholders. This exercise also helps lenders refine and think through the problem, avoiding unnecessary time and expense. I wrote this piece in a conversational manner as any finance topic can be dry and technical (ask my UT students how I approached this in class!). Hopefully this helps outline this topic for everyone in thinking critically about their investments! #cre #problemloans #distresseddebt #NPV https://lnkd.in/gGPw7dpa

Bankers and finance professionals: Are you worried about your exposure to CRE and looking for ways to prune your balance sheets with the best outcome for your shareholders? If so, please read my upcoming article in the summer edition of the The Risk Management Association Journal regarding a "how to" to conduct note / portfolio sales. I hope that providing this sneak peek helps banks think about ways to limit exposure in the 2Q and beyond. If any questions / comments, please reach out directly! #cre #distresseddebt #riskmanagment #notesales https://lnkd.in/edBfJZsJ