Small Banks Book More
Loans as Slowdown Sets In
Community banks continue to expand their loan portfolios, even as the pace of growth appears to be slowing. An American Banker analysis of 310 institutions shows a 15 percent year-over-year jump in loan portfolios at banks with less than $40 billion in assets in the third quarter, with net interest income up 11 percent. Bankers say they are making more commercial-and-industrial loans, and with bigger banks setting their sights on larger corporate clients, community banks have more opportunities these days to make small-business loans. "Larger banks don't want to do a $50,000 line of credit," says Market Insights CEO Joe Sullivan. "They'd rather do a $5 million loan. So there's a continued realignment where the big banks are pushing the small businesses out the door, and small banks are picking up the slack." The $1.5 billion-asset Needham Bank in Massachusetts reported a 32 percent jump in total loans to $1.3 billion. Executive Vice President Paul Totino attributes the gain to the economic recovery, increased demand for housing, and the addition of experienced lenders, as well as efforts to diversity its loan book.
From "Small Banks Book More Loans as Slowdown Sets In"
American Banker (11/14/14) Stewart, Jackie
Community banks continue to expand their loan portfolios, even as the pace of growth appears to be slowing. An American Banker analysis of 310 institutions shows a 15 percent year-over-year jump in loan portfolios at banks with less than $40 billion in assets in the third quarter, with net interest income up 11 percent. Bankers say they are making more commercial-and-industrial loans, and with bigger banks setting their sights on larger corporate clients, community banks have more opportunities these days to make small-business loans. "Larger banks don't want to do a $50,000 line of credit," says Market Insights CEO Joe Sullivan. "They'd rather do a $5 million loan. So there's a continued realignment where the big banks are pushing the small businesses out the door, and small banks are picking up the slack." The $1.5 billion-asset Needham Bank in Massachusetts reported a 32 percent jump in total loans to $1.3 billion. Executive Vice President Paul Totino attributes the gain to the economic recovery, increased demand for housing, and the addition of experienced lenders, as well as efforts to diversity its loan book.
From "Small Banks Book More Loans as Slowdown Sets In"
American Banker (11/14/14) Stewart, Jackie
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