ChartAcc

ChartAcc.com - OREO assets are the ones owned by a bank that is not directly related to banking business. These are considered as non-earning assets for purposes of Bank / Regulatory accounting.

OREO is collateral against the loan given which is owned due to default default by borrower. 

These are generally classified as Available For Sale (AFS). 

Growth in OREO indicates deteriorating credit for the bank with growing non-earning assets.