Local bankers are often smiling when they look at the balance sheets of their institutions, even though interest rates have been rising for a long time.
MidFirst Bank Vice President Susan Moratelli spoke Tuesday at BizWests virtual CEO Roundtable on the banking industry. She said that rising rates may cause competition between banks in some cases and customers may begin to compare shop.
But despite the Federal Reserve not-so-subtly hinting at multiple rate hikes, it’s still a great time to borrow, she said.
According to Thomas Chesney, AMG National Trust Bank commercial bank president, borrowers are asking to lock in fixed rates for as long as they can.
Ray Lindley, chief operating officer of Elevations Credit Union, stated that banks are also experiencing a decline in refinance volumes.
Kirk Monroe, Vectra Wholesale Banking director, stated that institutions are pushing more creative products due to rising interest rates.
Ryan Lee, senior vice President, commercial banking, and Boulder Market Leader for Community Banks of Colorado, said that it is difficult to do business in a rising rate environment.
Bankers are still very happy with the pace of recovery from COVID-19-induced slowdown.
Chris McVay, High Plains Bank’s market president, stated that past-due loan ratios were low and were not seeing (borrowers who are struggling to make their payments).
Aaron Spear, Bank of Colorado branch president, stated that balance sheets are flush with deposits.
Alpine Bank regional president Chris Maughan agreed, adding, We’re in a big liquidity position and are trying to deploy that liquidity.
Lee said that banks compete with each other to find investment opportunities for accrued capital.
He said that there are many interesting opportunities and businesses in the state.
Monroe believes that the commercial real estate market is a popular place to deploy capital. Monroe anticipates that it will remain hot as more developers who have been sidelined are getting back in the game.
In addition to commercial real estate especially manufacturing and flex-industrial buildings apartments provide another opportunity for investors, FNBO senior director and community manager Gretchen Wahl said.There’s no question that multi-family is hot these days.
Bankers don’t see any reason to believe that there will be a slowdown in residential real estate.
Luis Ramirez, Huntington Bank Colorado’s market manager, said that although interest rates and prices may be rising, incomes are also on the rise.
The banking sector, like many other industries, is experiencing a shortage of workers.
Finding good people holy cow it’s difficult right now, First Western Trust Bank market president Bonifacio Sandoval said.
BizWest’s CEO Roundtable is sponsored in the Boulder Valley by Plante Moran, Berg Hill Greenleaf Ruscitti LLP and Bank of Colorado. Jim Cowgill from Plante Moran, Aaron Spear from Bank of Colorado, and George Berg, Donna Lance, and Ashley Cawthorn from Berg Hill GreenleafRuscitti were all present.
This article was first published in BizWest, an independent news organisation. It is published under a license agreement. 2022 BizWest Media LLC.
