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SW KS, near Dodge City | Because if a regulator says "you need to charge off XXX of that loan" that means the borrower likely has had some payment problems also. And if it's a charge off situation, the bank likely isn't confident they will get 100% back, they might simply believe in the borrower and want them to succeed.
Regulators aren't stupid either. They're not going to look at a loan that has 100 acres of Iowa ground for collateral and the borrower only owes 200K on and tell the bank they need to charge something off. It's the 100K loan that has an equipment line worth 100K, and has been slow to pay, or has been reworked a few times. | |
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Net worth declining
