1. failing to generate expected income or returns, especially referring to loans or investments
Usage: finance; banking
2. not functioning or operating as intended

Examples

• The bank had to write off several nonperforming loans.
• Nonperforming assets reduced the company’s quarterly profits.
• The government created a fund to purchase nonperforming mortgages.
• Several nonperforming equipment units were replaced last month.
• The audit revealed a high percentage of nonperforming investments.
• Nonperforming debts accounted for 15% of the portfolio.