BAS September 2022 Presentations

Basic Facts: • Babe Ruth has an unsecured $5,000 loan for personal expenses. • He is unable and unwilling to make any more payments on the debt. • The loan is currently 240 days past due. Loan Classification Decision #4 (Babe Ruth)

How would you classify this loan?

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Basic Facts: • Mike Jordan lost his job and was unable to make payments, which resulted in his home being foreclosed upon. • The asset has a balance of $260,000 in the OREO balance sheet account. • A recent appraisal valued the property at $200,000. How would you classify this asset? OREO Classification Decision #5 (Mike Jordan)

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