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.
How this term is used
Why this matters
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.
FAQ
What does Nonaccrual Status mean?
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.
Is Nonaccrual Status defined by a statute?
This entry uses an operating or accounting definition. It does not cite a statute, because the term is not stated here as one statutory category.
What else is Nonaccrual Status called?
Other names used for this term include Nonaccrual loan, Nonaccrual asset, Non-performing loan, NPL.
Sources
-
1
-
2
-
3