Help diagnosing loquat problem

[Norcal47]

Hi everyone,

I just was given a loquat tree and noticed the bark seems to be damaged around the trunk. Any thoughts to the cause and if the tree is salvageable?

[Nyuu]

I would give it a cut under the damage and in a angle so the rain won't sit on top and rot the trunk . I will also try and see if you can see leaf nodules and cut slightly over it nodues