Summertime Lulls, Non-Performing Asset Charge-Offs

I’ve got a story from a bank in, I think it was Lubbock, Texas, where I dealt with exactly this scenario, and the bank actually put off selling the assets for some time while they got their books in line for the sale.

But at the end of the day, they still need that cash. A charge-off doesn’t create any cash. It just relieves a little pressure. So that said, I hope this made sense to you. 

Keep pushing; look for after Labor Day to really start seeing a pop and then a big rush through the end of the year. Typically this is the way these things roll, especially now with all of the forbearances, moratoriums, all the craziness, all the fed intervention, the CDC, all that – it’s rolling up, and it’s going to be a good selling time, as far as I can tell. 

So that’s it – let’s make it a great day. Thank you for being a member. And thanks for listening to this week’s Weekly Q & A.