11
Commercial Loans
Respondent disallowed deductions related to the origination
of commercial loans made by FNBP. No adjustments for commercial
loan origination costs were made with respect to UFSB.9
FNBP employees with responsibility for commercial products
and services met with prospective commercial borrowers to explain
the available loan products. Where the prospective borrower
wished to apply for a loan, the responsible employee obtained
information needed to complete a loan application. FNBP employed
as many as nine commercial loan officers to handle its larger
business customers and to develop new commercial business. Some
FNBP branch managers also acted as commercial loan officers.
Commercial loan officers at FNBP typically had 25 to 30 clients
and spent approximately 85 percent of their time dealing with
existing clients and about 15 percent of their time with
prospective clients. FNBP commercial loan officers visited
existing clients on a quarterly basis at which time they
discussed, among other things, the client's financial statements
and overall financial condition.
Commercial loan applications identified the prospective
borrower and described the prospective borrower's income, assets,
and liabilities; the purpose of the loan; and other data
9There is no explanation for this, and the parties do not
base any of their arguments on this disparity.
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