Credit Evaluation School - May 2023

Internal Use Only

Substandard

Key characteristics: • Negative trends • Significant deviation from original repayment source • Numerous extensions and/or renewals • Diversion of repayment funds • Delinquency • Failure to clean up operating line • Whenever debt is carried over without sufficient reason

Internal Use Only

Doubtful Loans classified Doubtful have all of the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. Loans classified Loss are uncollectible and of such highly questionable and improbable.