Adversely Classified Assets

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.
References in periodicals archive ?
3 billion of non-performing assets and other adversely classified assets.
Our asset quality strategy combined a deep reduction in existing non-performing loans with a sharp attack on adversely classified assets, from which future non-performers emerge," said Harshfield.
The examination found that adversely classified assets had increased 424 percent since the prior examination to more than $3.
The Consent Order required the Bank to reduce total adversely classified assets to a level at or below approximately $219.
As of December 31, 2012, total adversely classified assets totaled $10.
Other key aspects of the agreement provide for the Bank to: continue to retain qualified management; maintain an adequately funded allowance for loan and lease losses; develop written plans to reduce adversely classified assets, reduce loan concentration risks, and increase traditional liquid assets; and, develop and implement a three year strategic plan.
The minimum standards for information categories, to be included in the examination report on special mention or adversely classified assets, are discussed.
We were also able to reduce adversely classified assets by $3.
As of December 31, 2014, total adversely classified assets totaled $4.
At October 31, 2013, IFC had approximately USD79m in loan commitments and USD75m in loans outstanding with no delinquent loans or adversely classified assets.
Nonetheless, the bank is currently reviewing proposals for the sale of portions of its performing but adversely classified assets and its decision whether to proceed with such a transaction will be based upon its evaluation of the potential economic benefit to the bank.
At the end of first quarter, there were no non-accrual loans and the adversely classified assets as a percentage of total assets continued to be low at 0.