Colorado banking environment healthy as rates rise – BizWest

BOULDER Bankers in Boulder 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 banking chief), borrowers are now asking for fixed rates for as long an amount as possible.

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, stated that in a rising-rate environment there are many moving parts that make our jobs more difficult.

Bankers are still very happy with the pace of recovery from COVID-19-induced slowdown. 

Past-due loan rates are low and we just weren’t seeing. [borrowers struggling to make payments]Chris McVay, High Plains Bank’s market president, said that this was not the case. 

Aaron Spear, Bank of Colorado branch President, stated that balances 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 stated that banks compete with each other to find investment opportunities for accrued capital.

He stated that there are many opportunities and businesses available in this 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.

Gretchen Wahl, senior director at FNBO and community manager, said that in addition to commercial real property, including manufacturing and flex-industrial building apartments, investors also have another opportunity. 

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 market manager, stated that while interest rates and prices might be increasing, incomes are not.

The banking sector is not alone in facing a shortage of labor.

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.