District banks' exposure to modified loans limited

Banks in the Eleventh Federal Reserve District are performing better than their peers. However, signs of strain are still evident following the recession and financial market crisis. Some banks that restructure troubled loans by granting borrowers easier terms subsequently find the loans delinquent again. ; While the number of restructured loans has grown dramatically, these loans remain a small part of the average bank's balance sheet, a review of district data shows. Lenders here are less likely to carry restructured loans than banks around the country, and when they do hold such assets, problems don't appear to be out of line with historical tendencies. These findings indicate that the current experience with loan restructurings in the district is less a cause for alarm and more a helpful response to some borrowers' difficulties.