The Call Report distinguishes among loans that are 30 through 89 days past due and still accruing, loans that are 90 days or more past due and still accruing, and loans reported as nonaccrual. Schedule RC-N presents these categories separately by major loan and asset type. That structure matters: nonaccrual status is not simply another label for every past-due balance, and a 90-days-past-due loan that remains on accrual is not automatically the same as a nonaccrual loan. Institutions apply the Call Report glossary, accounting standards, and relevant supervisory instructions to the facts of each asset. In public research, nonaccrual balances can be read as a reported condition measure, but they should be compared only across like periods and categories with the reporting basis disclosed.
Nonaccrual Status
Nonaccrual status is a bank accounting and regulatory reporting status in which interest income is generally no longer accrued on a loan or other asset under the applicable reporting and accounting rules.
Operational Meaning & Core Elements
Statutory Framework & Jurisdictional Scope
This definition is specific to U.S. bank Call Report and accounting context. The term does not establish that a borrower has defaulted under every contract, that a debt is uncollectible, that a creditor must sell or charge off an account, or that a financial institution is distressed. Nonaccrual reporting can differ from commercial accounts-receivable aging, consumer credit-reporting status, litigation posture, or a debt buyer’s collection inventory. The applicable Call Report instructions and accounting policies govern a bank’s reported classification. This is a general research explanation, not accounting, legal, investment, or credit advice.
Why It Matters for Debt Buyers, Creditors & Operators
Separating nonaccrual status from delinquency and charge-offs prevents a common error in credit-market commentary. For a bank analysis, the RC-N categories can show whether reported stress is still accruing interest, has moved to nonaccrual treatment, or has already flowed into recognized charge-offs. For debt-market readers, that distinction improves the quality of source review and keeps a reported asset-quality measure from being turned into an unsupported prediction about portfolio sales or recoveries.
Authoritative Primary Sources
Primary statutory texts, regulatory rules, and official agency guidance supporting this definition:
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