LDC Suite™The distressed debt solution |
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Do you need to increase the automation of the accounting, loss share, and/or tax calculations and reporting for your bank acquisition transactions?
Our accounting and financial technology specialists can help. Deloitte provides a broad array of professional services and software to assist our clients with the implementation and administration of various accounting, financial, and tax reporting requirements related to bank acquisitions including:
- SOP 03-3 (as codified in ASC 310-30)
- FAS 91 (as codified in ASC 310-20)
- FDIC loss share agreements and loss share reporting
- Tax calculations to determine taxable income and balance sheet related amounts
Deloitte’s Financial Technology team, with over two decades of experience in financial software solutions, has developed a loan and debt security calculation software program, LDC Suite. This solution is a cost-effective and controlled way to address many of the calculation and reporting needs introduced by both FDIC-assisted and non-assisted transactions. LDC Suite has been used by numerous banks, from small community banks to large multinationals to support their acquisition activities.
Accounting
LDC Suite includes detailed calculations and features to support SOP 03-3 and FAS 91 reporting including:
- Projection of contractual and expected cash flows
- Accretable yield and related amortization
- Nonaccretable difference
- Loan impairment and recovery
- Expected vs. actual cash flow variances
- Expected vs. actual carrying amount variances
- Support for both loan and pool level calculations
Loss Share Reporting
To support FDIC loss share reporting, the system’s functionality includes:
- Capture of loss share agreement terms and loan data through batch loads and/or manual entry
- Creation of FDIC-specified certificates and supporting data files
- Presentation of loss amount calculations
- Processing of loan life cycle events such as charge-off, short sale, loan modification, and liquidation
- Balance, payment, and recovery tracking
- Tracking of expenses as incurred and automatic inclusion in certificates based on loss event occurrence
- Asset migration tracking (e.g., transfer to ORE, movement between 4.15A and 4.15B schedules, change in delinquency status)
- Covered loss summary information with drill down capabilities
- Calculation of qualifying accrued interest
Tax support
LDC Suite can be used in conjunction with Deloitte Tax LLP’s Tax Analysis and Information Reporting for Distressed Debt Investments (TARDI) system to simplify the data flow process and help promote data consistency*. Tax calculations include:
- Market discount
- Interest income (including support for accrual/non-accrual)
- Cost basis
- Loan modification gains and losses
- Gain/loss on sales/exchanges (including loan modifications)
- OID
- Bad debt expense
- Effects of federal financial assistance related to all the above items
Robust system features
LDC Suite is an intranet-deployed application built on a relational database, coupled with a web-based and user-friendly graphical interface. In addition to reducing error-prone manual processes and complex spreadsheets, the system provides detailed functionality and a host of robust system features including
- Centralized loan and debt asset maintenance, including multicurrency support
- Unlimited user-defined fields
- Historical reporting as of any date
- Tracking of multiple balances (contractual, carrying amount, loss share book value, traditional bank book value)
- Library of standard reports
- Advanced data import/export functionality with extensive validation checks
- Detailed and user-configurable role-based access controls
- Integrated Active Directory or Windows authentication
- An audit trail of user activity including changes to data and application settings
- Customizable exports for integration with the general ledger
- Full range of software maintenance options and implementation support including system integration assistance and custom report development
- Access to system source code
We recognize that a changing regulatory environment, market dynamics, and many other factors place significant demands on your finance and accounting operations. 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
Susan Erdfarb
Senior Manager
Deloitte & Touche LLP
+1 212 436 3799
serdfarb@deloitte.com
Bryan Roberts
Senior Manager
Deloitte & Touche LLP
+1 203 568 0505
jbroberts@deloitte.com
*LDC Suite and TARDI are separate software modules that can be integrated or used independently of each other.
LDC Suite™ is a trademark of Deloitte Development LLC, a subsidiary of Deloitte LLP.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
