Worcester Business Journal

14 Worcester Business Journal | June 26, 2023 | wbjournal.com some banks are responding by limiting loan activity. "Some banks have been pulling out of lending because of liquidity issues," said Michael Crawford, senior vice president, commercial regional executive in Worcester for Rockland Trust, a community bank headquartered in Hanover. Behavior spanning the past several years has dictated how banks are able to act now. "Our lending window is wide open. We are conservative by nature. at culture has kept us protected," said Crawford. Independent from a bank's ability or willingness to issue new loans is the issue of demand for loans, which is slowing down, said Doyle, citing factors in the housing market. Demand for mortgages has declined. e same rings true at Rollstone Bank & Trust, said Connors. "People aren't making slightly lateral moves," said Connors. Individuals and F O C U S MIDYEAR ECONOMIC UPDATE communication and trust. Post-COVID deposits dwindle Concerns locally at community banks, mutual banks, and regional banks have to do with deposits, delinquencies, and an uncertain future out of bankers' control, dependent on larger government decisions. "is all began a few years ago with the pandemic, stimulus programs, and increased deposits," said Robert Morton, president and CEO of state savings bank bankHometown in Oxford. at stimulus spending kept deposits high throughout the COVID pandemic, but the money the payments injected into the economy has been spent out. Now, those pandemic-era heightened deposit rates are down, and amid a national economic downturn, new deposits are hard to come by at banks statewide. "Banks are competing for deposits," said Kathleen Murphy, president and CEO of the Massachusetts Bankers Association, based in Boston. e average size depositor in Massachusetts banks has $45,000, according to data from the MBA. Nationwide, deposits were at $17.2 trillion the week ending May 31, 2023, aer a steady decline from a high of over $18 trillion in the same period of 2022, according to data from the Board of Governors of the Federal Reserve System. Still, at Webster Five, an Auburn-based community bank, businesses from as far as Idaho have moved their deposits to gain extra security. "We have brought in a couple of deposit accounts from banks that didn't have 100% insurance," Webster Five President and CEO Donald Doyle said. While the bank is attracting depositors from out of state, in-state banking customers have not been shopping rates and moving deposits around, said Doyle, and deposit rates have been low. Lending in an uncertain future Low deposits mean that loan activity is impacted, too. It has become more expensive to lend money, said Cornerstone's Webber, and as such, WOMEN I N B U S I N E S S O U T S T A N D I N G WBJ Worcester Business Journal WOMEN O U T S T A N D I N G WBJ n WOMEN I N B U S I N E S S O U T S T A N D I N G WBJ Worcester Business Journal Honorees will be featured in our October 16, 2023 edition NOMINATION DEADLINE: Friday, August 4, 2023 To submit your nomination visit www.wbjournal.com/womeninbusiness CALL FOR NOMINATIONS! Here is your chance to nominate a deserving business woman that you know, and have her accomplishments recognized and celebrated! Submit a nomination today! Worcester Business Journal is looking to recognize the achievements of strong, talented and remarkable women who are making their mark on the Central Massachusetts business community Corporate Sponsor Supporting Sponsor MARSH MCLENNAN AGENCY Presenting Sponsors Yes, directly Yes, indirectly No, they didn't impact us. No, but it did raise my concern about the overall health of the economy. 3% 40% 18% 39% In March, both Silicon Valley Bank and Signature Bank collapsed, triggering fears of a national financial crisis. In late April, First Republic Bank as taken over by regulators and sold to JPMorgan Chase. Did these bank failures have any impact on your business? Michael Crawford, SVP and commercial regional executive, Rockland Trust Continued from previous page

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