Regulators urge lenders to work out distressed commercial loans

The Federal Deposit Insurance Corp., along with the Office of the Comptroller of the Currency, the Federal Reserve, and the National Credit Union Administration worked together to update, reinforce and build on existing supervisory guidance calling for financial institutions to work prudently and constructively with creditworthy borrowers during times of financial stress.

The updated policy released in the past week includes a section on shortterm loan accommodations that was not included in the agencies previous guidance. Short-term accommodations include an agreement to defer one or more payments, make a partial payment or provide other assistance or relief to a borrower who is experiencing a financial challenge.

“The agencies recognize that financial institutions face significant challenges when working with commercial real estate borrowers who are experiencing diminished operating cash flows, depreciated collateral values, prolonged sales and rental absorption periods, or other issues that may hinder repayment,” according to the statement. “While such borrowers may experience deterioration in their financial condition, many borrowers will continue to be creditworthy and have the willingness and ability to repay their debts.”

The policy statement issued comes amid escalating loan distress brought about by rising interest rates, higher inflation and slowing transactions and commercial real estate space demand. Those issues are expected to affect the financial condition and repayment capacity of at least some commercial real estate borrowers.

And while the statement that updates guidance doesn’t represent a significant regulatory policy change, it signals how

Hertz Arena and Everblades make front office promotions

Craig Brush, CEO of Hertz Arena and long-time general manager of the Florida Everblades, revealed multiple front office promotions for the ECHL hockey club and Hertz Arena management staff. This strategic initiative is designed to enhance operations and position the organization for ongoing success in the professional ice hockey and entertainment industries.

In a significant move, Florida Everblades Head Coach Brad Ralph was promoted to general manager and head coach of the team. Ralph’s ability to inspire players and drive success will play a pivotal role in shaping the team’s roster and strategic direction.

“Over the past seven years, I have witnessed the incredible passion and dedication of our players, staff, and fans,” Ralph said. “I am confident that we will continue to achieve great things together and I am excited for this new challenge, leading the team to continued success.”

Brush will remain in the role of CEO of Hertz Arena and became president of the Florida Everblades.

Scott Bryant, senior executive vice president and general manager of Hertz Arena, became president and chief financial officer of Hertz Arena. Bryant’s exceptional financial skills and managerial expertise over the past 23 years at Hertz Arena will take the operational efficiency and financial stability of the venue to new heights.

“Having dedicated over two de- cades to this remarkable organization, I am humbled by the opportunity to contribute to its success,” Bryant said.

“Together with our talented team, we will continue to raise the bar, providing unforgettable moments for our fans and visitors.”

Chris Palin, executive vice president of business development, stepped into the role of executive vice president and chief revenue officer. He will be at the forefront of efforts to generate revenue. With his experience in building successful business partnerships, Palin’s expertise will play a crucial role in driving financial growth.

Adam Winslow, previously vice president of marketing, now serves as executive vice president and chief marketing officer, leading the organization’s marketing, public relations and community relations efforts. With his creative thinking and marketing skills, Winslow will continue to enhance the venue and the team’s brand visibility and strengthen connections with fans through a combination of grassroots marketing and innovation technology strategies.

“This reorganization positions the Florida Everblades and Hertz Arena for continued growth and success,” Brush said. “We have assembled a dynamic team of leaders who are dedicated to elevating our organization’s performance both on and off the ice. I have full confidence in their abilities to propel us forward.” lenders are more likely to be dealing with borrowers facing difficulties in meeting loan obligations or refinancing conditions.

In such cases, financial institutions may find it beneficial to work constructively with borrowers, according to the agencies.

“When short-term accommodation measures are not sufficient or have not been successful in addressing credit problems, financial institutions could proceed into longer term or more complex loan arrangements with borrowers under a formal workout program,” the guidance stated.

Longer-term loan workout arrangements can take various forms, including renewing or extending loan terms, granting additional credit to improve prospects for overall repayment, or restructuring the loan with or without concessions.

The guiding factor in working with borrowers should be their ability to repay the loan including the borrower’s willingness to do so, according to the guidance.

When analyzing a commercial borrower’s repayment ability, examiners should consider the following factors: the borrower’s character, overall financial condition, resources, and payment history; protection provided by the cash flow from the borrower’s business operations or the underlying collateral; and relevant market conditions, particularly those on a state and local level, according to the guidance.

CoStar is the industry leader in commercial real estate information, analytics and news. We provide our clients with the data and tools they need to make smart decisions and stay ahead of the competition. Learn more at www.costar.com.

Business Services

‘Champ’ launches agency

A real “Champ” in the business world set course for a new venture in South Florida. Michael “Champ” Champer opened Brightway, The Michael Champer Insurance Agency.

A transplant to the Sunshine State from Ohio, Champer brings 30 years of sales experience to the Naples market by way of his Brightway agency. The Panther Lane location is a culmination of all the right things happening at the right time.

The son of a former railroad field terminal manager and a Midwest homemaker, Champer, 54, is a product of Small Town U.S.A.

“As a kid from Marion (Ohio) in the 1970s, I always wanted to be an astronaut,” Champer said of his life in the small northern town. “However, being from such a small city, there was only one of three things that you were destined for after graduating from high school. A trip to college, the military or the Honda plant.” Champer’s first job would be with the Honda of America Manufacturing plant in Marysville, Ohio.

What ensued, though, would be three decades of record-setting sales performances in the Greater Columbus auto industry up until Champers’ relocation to Florida in 2015.

Much like another small-town Buckeye, famous American astronaut John Glenn, Champer is launching his mission with hopes of taking his industry to the next level in South Florida. With two grown sons and a wife, Michel, all working in the medical field, Champer has been providing his own care to customers for more than three decades now. Now, Michel will join Michael to work as an agent within the franchise.

Brightway, The Michael Champer Agency offers customized Home, Flood, Auto, Boat, Condo, Renters, Personal Articles, RV, Motorcycle, Umbrella, Commercial and Life insurance policies from numerous insurance companies.

Brightway’s corporate office staff provides expertise and support in areas including customer service, technology, accounting, marketing, distribution and business analytics. In addition, Brightway handles carrier relations and appointments, as well as support with personnel hiring, licensing, onboarding, training and retention. The company’s signature after-the-sale service empowers Agency Owners, like Michael, to focus on new business sales and provide customers the personalized service they deserve.