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 ?
At October 31, 2013, IFC had approximately USD 79 in loan commitments and USD 75 in loans outstanding with no delinquent loans or adversely classified assets.
At October 31, 2013, IFC had approximately USD79m in loan commitments and USD75m in loans outstanding with no delinquent loans or adversely classified assets.
A May 1989 examination indicated the Bank of Salem had adversely classified assets totaling more than $7.
The minimum standards for information categories, to be included in the examination report on special mention or adversely classified assets, are discussed.
The memorandum of understanding required, among other things, the maintenance of a minimum Tier 1 capital ratio of 9%, a plan to reduce adversely classified assets to levels to be established by mutual agreement with the regulators, and a restriction on payment of dividends from the Bank to HomeStreet.
The Memorandum of Understanding, dated March 26, 2012 required, among other things, the maintenance of a minimum Tier 1 capital ratio of 9%, a plan to reduce adversely classified assets to levels to be established by mutual agreement with the regulators, and a restriction on payment of dividends from the Bank to HomeStreet.
The MOU, dated March 26, 2012 required, among other things, the maintenance of a minimum tier 1 capital ratio of 9%, a plan to reduce adversely classified assets to levels to be established by mutual agreement with the regulators, according to HomeStreet.
The Consent Order required the Bank to reduce total adversely classified assets to a level at or below approximately $219.
As a result of the transaction, Home Savings has now exceeded the asset quality targets set forth in its recent consent order that required the bank to reduce total adversely classified assets to a level at or below approximately USD219.
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.
Home Savings has now exceeded the asset quality targets that required it to lower total adversely classified assets to a level below or at about USD219.
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.