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.
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. The equity purchase price is estimated to be approximately USD16m, with 50 percent of the consideration to be paid in cash and 50 percent to be paid in PPBI common stock.
Operating with an excessive level of adversely classified assets;
The examination found that adversely classified assets had increased 424 percent since the prior examination to more than $3.4 million, of which more than $2.8 million consisted of loans classified as "substandard," $143,000 as "doubtful" and $98,000 as "loss."
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 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.
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 USD219.2m by September 30, 2012 and USD146.0m by March 31, 2013.
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 USD219.2m by 30 September 2012 and USD146.0m by 31 March 2013 under its Consent Order.