Worcester Business Journal

12 Worcester Business Journal • February 2, 2015 www.wbjournal.com In search of business, from business Banks bulk up, muscle in for a bigger piece of action in commercial lending Many banks that do business in Central Massachusetts are jostling and hustling to underwrite new commercial loans, even going so far as to hire spe- cialists from competitors to gain an advantage. In January, Connecticut-based United Bank recruited six lenders from banks in the Springfield and Worcester markets in a bid to boost its commercial lending market share in the region, according to CEO Bill Crawford. This move under- scores not only the importance banks are putting on this market, but high- lights a continued competition among banks for qualified lenders. That market for business loans in Central Massachusetts is growing, according to Tanya Duncan, director of management development for the Massachusetts Bankers Association, whose member banks throughout the state reporting a strong 2014, with more growth to come in 2015. Commercial and industrial lending has been climbing nationally as well, up from a recent low of just under $1.19 trillion in October 2010 to $1.78 trillion in December, according to data from the Federal Reserve Bank of St. Louis. The last time commercial lending was this brisk was October 2008, when $1.59 tril- lion in loans was underwritten, before lending plummeted during the Great Recession. Dan Barnard, the relationship man- ager in commercial lending for TD Bank in the MetroWest region, has seen a resurgence in commercial lending throughout MetroWest and into Worcester County in the last six months. There's an urgency now when businesses come to the bank for a loan, he said, as they're looking to grow. "I think there is a real optimism for 2015," he said. "We've seen strong activ- ity. It remains strong and with the uptick of business owners looking to move forward I think it provides that much more opportunity." Commercial loan needs are tied directly to the economy, Barnard said. If the businesses are doing well, they'll seek capital to grow. The value of building relationships It's times like these when long-stand- ing relationships with companies matter, M any banks that do business in Central Massachusetts are jostling and hustling to underwrite new commercial loans, even going so far as to hire specialists from competitors to gain an advantage. In January, Connecticut-based United Bank recruited six lenders from banks in the Springfield and Worcester markets in a bid to boost its commercial lending market share in the region, according to CEO Bill Crawford. This move under- scores not only the importance banks are putting on this market, but highlights a continued competition among banks for qualified lenders. BY SAM BONACCI Worcester Business Journal Staff Writer A sign outside the entrance to Centech Park East, a technology park under development in Shrewsbury, displays a sign promoting the source of bank financing. >> Continued on Page 16 In 2010, commercial loan volume in Worcester County totaled $510 million. Through the third quarter of 2014, loan volume for the year had totaled $805 million, according to the Massachusetts Bankers Association. Commercial lending grows in Central Mass. P H O T O / S A M B O N A C C I FOCUS Banking & Finance

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