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Adversely Classified Assets

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Adversely Classified Assets
Any loan that a bank doubts will be repaid. That is, adversely classified assets are loans with some impairment, usually due to the credit quality of the borrower. Adversely classified assets fall into three categories (from least severe to most severe): substandard, doubtful and loss. See also: Account Uncollectible.


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We believe that the non-cash charges recognized on these adversely classified assets results in a much stronger balance sheet, and as we move forward we will be able to focus on the core earnings potential of the Bank," said Robert J.
For consumers who are concerned about a bank’s health, Burns said, “it would be the same as ours, to be aware of what those adversely classified assets to total capital are.
A May 1989 examination indicated the Bank of Salem had adversely classified assets totaling more than $7.
 
 
 
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