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LDC Suite™

The distressed debt accounting solution

Do you need to increase the automation around Day 2 accounting for your bank acquisitions or purchased loan portfolios?

Our accounting and financial technology specialists can help. Deloitte provides a broad array of professional services and software solutions to assist our clients with the implementation and administration of various accounting and reporting requirements related to these types of transactions, including:

  • SOP 03-3 (as codified in ASC 310-30)
  • FAS 91 (as codified in ASC 310-20)
  • Cash flow modeling and forecasting
  • FDIC loss share agreements and loss share reporting

Deloitte’s Financial Technology team, with over two decades of experience in financial software solutions, offers banks, credit unions and other financial institutions a loan and debt security calculation software program, LDC Suite™. This software is a cost-effective solution, featuring a centralized repository for loan data that may be sourced from multiple servicing systems, that has been used by numerous banks, from small community banks to large multinationals, to support their acquisition activities.

Accounting functionality and reporting

LDC Suite™ provides detailed calculations and features to support SOP 03-3 and FAS 91 reporting, including:

  • Projection of contractual and expected cash flows
  • Detailed cash flow modeling assumptions
  • Accretable yield and related amortization
  • Unamortized discount/premium calculations
  • Straight line and effective yield calculations
  • Accretable yield and carrying amount roll forward reports
  • Loan impairment and recovery calculations
  • Footnote disclosure requirements
  • Expected vs. actual cash flow variances
  • Expected vs. actual carrying amount variances

Loss share reporting

To support FDIC loss share reporting, LDC Suite™ functionality includes:

  • Indemnification asset tracking
  • Creation of FDIC-specified certificates and supporting data files
  • Processing of loan life cycle events such as charge-off, short sale, loan modification and liquidation
  • Tracking of expenses and automatic inclusion in certificates based on loss events
  • Covered loss summary information with drill down capabilities

Robust system features

At your option, LDC Suite™ can be delivered as either a hosted or on-premise installed solution. The system creates efficiency and helps to reduce risk through a centralized database and customizable accounting policy settings. The system’s features and capabilities will help eliminate the need for complex spreadsheets, while maintaining data integrity and accuracy. LDC Suite™ features include:

  • Both hosted and on-premise installed options
  • Centralized loan and debt asset maintenance
  • Loan and pool level calculations and reporting
  • Tracking and reporting of loan-level contractual principal balance, carrying amount and bank book value
  • Reconciliation-support reports for bank book balances
  • Historical reporting as of any date
  • Library of SOP03-3, FAS91, loss-share and indemnification asset reports
  • Advanced data import/export functionality with extensive validation checks
  • Audit trail of user activity including data changes and application settings
  • Access to system source code

From accounting advisory services to software implementation and integration, Deloitte can provide the solutions to address your unique set of needs.

For more information about this product, or to arrange a demonstration, please contact:

Hillel Caplan
Partner
Deloitte & Touche LLP
+1 212 436 5387
hcaplan@deloitte.com

As used in this document, “Deloitte” means Deloitte & Touche LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Software is licensed to clients by Deloitte & Touche Products Company LLC. Certain services may not be available to attest clients under the rules and regulations of public accounting.

 

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