Loan Performance Categories and Financial Reporting

The Farm Credit Administration (FCA, we, or our) proposes to amend our regulatory high-risk loan performance categories by removing "Formally restructured loans (TDR)," also known as troubled debt restructurings. In 2022, changes in generally accepted accounting principles (GAAP) eliminated the accounting guidance for TDRs, enhanced disclosure requirements for certain loan refinancings and restructurings undertaken when a borrower is experiencing financial difficulty and changed existing vintage year disclosure requirements for public business entities. We propose removing TDRs from our regulatory loan performance categories to reflect changes in GAAP. Further, we seek comments on our determination no regulatory changes are needed for the enhanced disclosures related to loan refinancings and restructurings or the amended vintage year disclosure requirements, as these disclosures are already required under applicable GAAP. Additionally, comments are requested on retaining the "90 days past due still accruing interest" loan performance category.