Hartford Business Journal

www.HartfordBusiness.com • May 4, 2020 • Hartford Business Journal 9 fer to address times like these," he said. "At the end of the day, capital is your ultimate fortress." For some of the state's largest banks, lending continued in the first quarter. At Waterbury-based Webster Bank, CEO John Ciulla told stock analysts that strong lending vol- umes helped drive an increase in in- terest income during the January- to-March period, despite interest rates being down from a year ago. "While we are appropriately cau- tious with new underwriting activi- ties, I can tell you that we closed meaningful, high-quality new business in the quarter in segments that are not experiencing a material adverse impact from the pandemic, … such as software and technology infrastructure," Ciulla said. Mortgage boost American Eagle's boost in mort- gage lending isn't because people are panic-buying houses like toilet paper. Connecticut home sales were up in the first quarter, but are expect- ed to fall in the current quarter and possibly beyond. Instead, American Eagle is see- ing soaring demand for refinanc- ing and home-equity lending, said Howard Brady, chief lending officer at the 18-branch institution. Though banks have pledged a temporary moratorium on foreclo- sures, and are modifying loans for some who ask, many consumers are scared. "People are really worried about expenses and cash flow," Brady said. "They're trying to shore up their personal financial situations as best they can to try to address that uncertainty and create cash flow from their house." It's a potential silver lining for home- owners and lenders alike, he said. Refinance activity had already been surging heading into 2020, thanks to several interest-rate cuts by the Federal Reserve, which made it less costly to cash in some home equity. The Fed cut rates again to near zero in mid-March, citing COV- ID-19's global economic devastation. Since the March rate cut, home- owner demand for refinancing has grown at least fourfold from a year prior, the Financial Times report- ed, citing data from the Mortgage Bankers Association (MBA). The MBA says its refinancing activity index is close to highs not seen since 2013. That's kept American Eagle's 323 full-time equivalent employees, none of whom have been furloughed, plenty busy, Marchessault said. "We need every soul," he said. In addition to the refinance boom, American Eagle has been accepting and managing loan- modification requests — 2,000 and counting as of mid-April — and handling other tasks. "The drop in rates has created a real [refi] market, even amidst all this chaos," Brady said. Though there's booming demand for refis, some U.S. lenders have be- gun to tighten their credit standards, and JPMorgan Chase temporarily halted home equity loans, American Banker reported last month. Howard says American Eagle has not made any significant changes, but is monitoring the situation. "We are certainly watching that very closely, based on the environ- ment, to see if we need to make any material changes," he said. FOCUS: BANKING & FINANCE In a time of uncertainty, you can count on us. Thanks to technology and an ongoing commitment to serve our community, our Commercial Lending & Business Banking teams are ready to assist you with your financial needs, just as we always have. Visit chelseagroton.com or call our hotline at 860-448-4195 to learn more about our secure online Cash Management solutions and other ways we can help. CEO Dean Marchessault (center) said American Eagle Financial Credit Union has seen a decline in consumer borrowing but an uptick in mortgage lending. Make the dark clouds of fiduciary responsibility less formidable. hhconsultants.com/fiduciary

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