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
References in periodicals archive ?
The net interest income for the twelve-month period in 2016 included approximately $919 thousand of recovered interest income on a previous nonaccrual loan, which resulted in approximately 9 basis points of additional net interest margin.
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 nonaccrual loan total at First Federal declined from $33.
61% at December 31, 2016 and total nonaccrual loans decreased by $15M, or 19.
The Bank also continues to have excellent credit quality in its loan portfolio, as it had no nonaccrual loans at September 30, 2017.
Year-on-year, the company registered strong credit quality-related metrics, with nonaccrual loans and loans due for over 30 plus days decreasing from USD2.