Loan Classification Codes can be used to:
  1. Calculate the portion of the principal balance to be reserved as potential losses.
  2. Track previously classified loans that have returned to a current status.
  3. Track loans that have reserve percentages and the audit year.
  4. Track loans that have had documentation problems in the past and might merit auditor/examiner interest in the upcoming audit.
  5. Track TCR loans & PCILs to assist in completing the 5300 Call Report.
You can print a Classification Code report via Tool #656 Print Loan Classification Report, including only select classification codes or loan categories. This report is useful for budgeting, funding the ALLL, completing the 5300 Call Report, and verifying correction/compliance prior to an audit.