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 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 said that institutions are increasingly pushing innovative products like interest-rate swaps as a result of rising 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.
However, bankers are generally pleased with the pace at which recovery has been made from the COVID-19-induced economic slowdown.
Past-due loan ratios were low and are just not being seen [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 said that there are many interesting opportunities and businesses in the state.
Monroe believes the commercial real-estate market is a popular spot for capital deployment. Monroe expects it to stay hot as former developers are returning to the game.
Gretchen Wahl, senior director of FNBO and community manager said that investors have additional opportunities beyond commercial real estate, especially in manufacturing and flex industrial buildings.
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.
Like many industries, the bank sector is facing a labor shortage.
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, Plante Morti; Aaron Spear from Bank of Colorado; and George Berg and Donna Lance, Berg Hill GreenleafRuscitti.
This article was published first by BizWest, an independent news agency. It is licensed under an agreement. 2022 BizWestMedia LLC.
