Credit Evaluation School - May 2023

Internal Use Only

Nonaccrual Decision Tree N O IS THE LOAN 90 OR MORE DAYS PAST DUE?

Y E S

Is the loan well-secured AND In the process of collection?

Is full repayment reasonably assured?

YES

Y E S

N O

NONACCRUAL STATUS

ACCRUAL STATUS

Internal Use Only

Returning to accrual None of the loan’s principal and interest is due and unpaid, AND the bank expects repayment of the remaining contractual principal and interest

OR

When it otherwise becomes well secured AND in the process of collection.