BAS Presentations - March 2023

Asset Classification

Pass

No or limited concerns

Special Mention

Criticized but not classified

Substandard

Doubtful

Adversely classified

Loss S E V E R I T Y

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Basic Facts: • XYZ Corp. has an equipment loan that is severely past due. • Review of the company’s financials reveals that sales have dropped significantly, and the business is reporting losses. • The equipment securing the loan was independently valued at $110,000 one month ago. • The loan balance is $120,000. How would you classify this loan? Loan Classification Decision #1 (XYZ Corp)

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