Ouch! Arkansas Bank to Take Big Hit
Mark Friedman of the Arkansas Business Report has a story about another developer bankruptcy. Every one of these stories is a personal tragedy, and in this case I knew and liked the families of one of the principles involved. The main statistic that popped out at me from this story was the potential size of portfolio loss of an Arkansas Bank- Chamber's Bank.
The story says that Chamber's has a 26 million dollar secured loan with the developers. They likely will get the subdivision, but how much will it be worth? The article notes that their entire allowance for loan losses this year was only 12.66 million dollars.