Nonaccrual Loan

Nonaccrual Loan

A loan on which the lender is not generating the expected interest rate due to non-payment. A loan is classified as nonaccrual if no principal or interest has been paid in 90 days. A nonaccrual loan is rather likely to default
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The nonaccrual loan total at First Federal declined from $33.
Generally, federal banking rules also require X to apply any payment received on a nonaccrual loan receivable as a reduction to its recorded investment in the loan, to the extent necessary to eliminate the doubt of uncollectibility.
The bank did have one nonaccrual loan which totaled $1,194,000 at March 31, 2010.
The decline in 2009 earnings included the effects of (1) margin compression and competition for loans and deposits on net interest income, (2) a higher provision for loan losses attributable to an increase in nonperforming loans, most of which are secured by real estate, the continued slow down in the economy, and loan growth, (3) higher assessments for deposit insurance resulting from the FDIC's implementation of its amended risk-based assessment system, and (4) higher nonaccrual loan and foreclosed properties expenses primarily resulting from the work-out of the commercial relationships mentioned below.
The Company continues to take various steps to resolve its nonaccrual loans, including proceeding with foreclosures on many of the collateral properties, working with certain borrowers to provide payment relief and, in limited cases, accepting partial payment as full satisfaction of a nonaccrual loan.
The previously reported past due and nonaccrual loan balances were adjusted because the company subsequently determined that the restructuring and renewal of certain loans had not been properly effected as of December 31, 2006.
The Company is taking various steps to resolve its nonaccrual loans, including proceeding with foreclosures on many of the collateral properties, working with certain borrowers to provide payment relief and, in limited cases, accepting partial payment as full satisfaction of a nonaccrual loan.
This increase was due primarily to the movement into nonaccrual loan status of one large agribusiness loan in the livestock/poultry industry and one large loan to an ethanol producer resulting from higher corn prices that adversely impacted borrowers in these industries.
9 million at September 30, 2014, while total nonaccrual loans decreased by $21.
The company's credit quality improved dramatically as nonaccrual loans were down USD1.
The total of nonaccrual loans plus other real estate owned (OREO)--mostly foreclosed real estate--also registered improvement over 1987.