As shuttered windows dot Main Street, banks are working to lower life rafts in the form of checks to those still navigating the economic shoals.
Banks throughout the region have been expanding their commercial loan offices and services to provide business customers with help during increasingly difficult times.
Most of them have either refused TARP money or put in an application but never acted on it.
While the residential market has crawled to a snail”™s pace, new commercial construction has picked up. Banks are striving to meet the needs of both existing small business owners and new commercial construction loans.
Local bankers weighed in on the current marketplace and what they hope to do for their business customers. Reports are already circulating that the second half of 2009 may be dimmer than analysts were predicting. Fed Chairman Ben Bernanke said last week house prices will continue to remain low for longer than anticipated with job security remaining elusive.
Meantime, the region”™s banks are striving to serve their customers. Here are their comments:
Ron Ferri is regional vice president for Brewster-based Mahopac National Bank:
“Small businesses are key to the economic vitality of our local community ”“ that includes our businesses, too. As a community bank, we reinvest the deposits held with us as loans to local businesses and families. That helps the local economy and jobs here.
“The last 18 months have certainly been challenging times for our economy and the region is not immune to those challenges. The year 2008 set a record for Mahopac National Bank in commercial loan originations, but we have seen a slowdown in new commercial loan volume in the first half of 2009. Despite this slowdown, we continue to be a responsible lender to businesses of all sizes. Our commercial lenders understand the local economy, and we make our credit decisions locally.
“When it comes to smaller businesses, we believe that small business owners value a bank like ours that helps position them for success. In addition to our commercial lending team that focuses on larger businesses, we have dedicated commercial lenders to work with our branch managers to provide guidance and expertise to smaller businesses as needed. Small businesses appreciate our application process and ”˜hassle-free”™ renewal process for lines of credit. When appropriate, our lenders will assist small business borrowers with SBA and other types of loans, including home-equity lines of credit.
“We also help small businesses through education and access to expert resources by connecting new and small businesses with experts in business planning and financing, including SCORE, a non-profit organization. In addition, the bank offers education forums for small businesses, such as our “Lunch and Learn” series with the Westchester County Association. Our goal is to help businesses of all sizes in our community to succeed and grow to overcome the economic climate we are facing.”
Gabrielle Sottile is president and CEO of Saugerties-based Sawyer Savings Bank:
“Sawyer Savings Bank has been in the community for generations. Each year when we create our annual plan, our belief is: What is good for the bank should also be good for the community. What that translates to (outside of numbers in a spreadsheet) is falling back on our traditional values. We are, after all, a savings bank that was created 138 years ago for the use of the community. We stay in business by making profits (of course), but not at the expense of our customers”™ well being. We support and advise our customers and provide them with the technology to process their sales with ease.
“We recognize the challenges that our small businesses face with the current market. We make it a point to reach out to our customers to let them know that we are here, we have money to lend and we are willing to work with them to get them through these difficult times. Our business customers are well known to our staff which provides for continual communication between the Bank and the business owner. If their business model changes, we are willing to work with them and adjust the loan terms to match their business volume and cash flow needs.”
Stephen Dormer is executive vice president of Montebello-based Provident Bank:
“During the past six months, we have experienced a national economic crisis and the onset of a recession. The mid-Hudson region has felt the effects of both events, though not to the extent experienced by other regions of the country. Hudson Valley unemployment has increased, but remains below the national and state averages. Real estate activity and values have declined, but also less severely than many other parts of the nation. Business failures have increased in the region, but since the spring, there has been evidence of recovery in certain business segments and even in the residential real estate market.
“Provident Bank has continued to serve the needs of the businesses and communities in the Hudson Valley throughout these events. We continue to make small-business loans and still offer lines of credit. In fact, during the past six months, we have expanded into Westchester County with an additional commercial lending office.
“We have served as a source for information for our customers regarding emerging financial issues. Provident initiated training for our staff regarding changes to FDIC insurance so that we could provide timely and accurate information to our customers. At the same time, we began holding regular conference calls led by our CEO for commercial customers dealing with economic and credit issues. The bank also placed print ads in several publications to let businesses and consumers know that we are lending and anxious to serve their banking needs.
“The economy has not returned to full strength, and Provident is anxious to get through this period of financial difficulty. We remain committed to helping its business customers thrive and grow despite the difficult economy.”
Thomas Gibney is president and CEO of Walden-based Walden Federal Savings:
“Walden Federal, like many other community banks has seen an increase in the number of small business customers that we serve. As a result, we opened a branch in Newburgh and recently moved our commercial loan department to the Newburgh facility to be more centrally located for our business customers. Walden Federal is able to provide a wide variety of products that meet the many different needs of the various business sectors we serve. In the past year we”™ve launched additional products and services such as ”˜remote deposit capture,”™ business debit cards with cash rewards, group benefit and retirement plans and will soon be offering a more robust version of online banking and cash management for businesses as well our strong line of loan products to meet the needs of local businesses. We are small enough that we know each and every borrower, and are able to tailor appropriate solutions to their specific needs.
“And our borrowers do have needs. In this economic cycle, business borrowers have been significantly impacted by lower sales volumes, slower collection of receivables, and a constant struggle to control overhead costs. There is no single ”˜Band-Aid”™ for these challenges. We listen, we advise and we help find ways to facilitate solutions, whether by modifying existing loans, or making new ones to help the borrower get through this cycle. We rely on sound underwriting, dealing with our borrowers at a very personal level, and by obtaining appropriate credit and collateral enhancements, to ensure that we provide solutions that work (the same things that we have always done). We take very seriously our responsibility to use all tools available to help businesses meet the challenges of the times.
“Community and regional banks have flourished for many years, by having business models based on common sense lending practices. For the most part, even today, this has not changed. We will continue to make loans to credit worthy customers.
“A credit-worthy customer does not have to be perfect. We understand that a lot has occurred that has been disruptive for businesses. We have seen the impact of the cycle on builders and the overall construction industry. A credit worthy customer is someone who has shown responsibility in dealing with outside conditions, has a viable business plan, and displays an ability to repay a loan. Collateral support can help offset some of the weaknesses of a given situation.”
