Worcester Business Journal

16 Worcester Business Journal • February 2, 2015 www.wbjournal.com B A N K I N G & F I N A N C E << Call to speak with our Infinex Financial Advisor! 508.762.3609 • fidelitybankonline.com Taking Care of Business You work hard running your business. Trust our experts to work hard caring for your financial needs. Located at Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Infinex and the bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obliga ons of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value. *We do not provide tax advice. Investors should consult their tax professional for their par cular situa on. • Re rement Planning • Investment Management • Asset Protec on • Succession Planning • Access to Benefits Administra on • Access to Trust Services • Life, Disability, and Key Man Insurance said Brian Thompson, president and CEO of Commerce Bank, based in Worcester. Commerce has long stressed commercial lending and built connec- tions with local businesses. It has grown its lending portfolio by $150 million in the last year, mostly through commer- cial lending, according to Thompson. "It's much more personal and if you have a good strong lending team that gives you a real advantage," said Thompson, who explained that while smaller community banks may not have the larger financial teams, many "have done a really good job of being 'Main Street lenders.'" Crawford said it's not enough for businesses and banks to have single points of contacts in the organizations; there should be multiple long-term rela- tionships. "We really want to know the individu- als that are making the decisions," he said. "We want to know their business inside out and backwards." These relationships not only help with the loan process, with the evaluation of businesses being much more individual- ized and less prescribed than that of a mortgage, but also with gaining or keep- ing a foothold in the competitive com- mercial market, Thompson said. One way in which banks have broken into the Worcester market is through recruitment. In January, United Bank targeted a three-person team in Worcester work- ing for Santander Bank to get the ties that team had with the community and expand United's stake in the Central Massachusetts commercial lending mar- ket, Crawford said. "Our strategy all along has been to recruit … great commercial lenders and their teams … when we get the bankers over time we get the customers," he said, explaining that the long-standing com- munity relationships these bankers bring with them are critically important. Good time to grab new business? Crawford sees the New England econ- omy as improving but not yet in "growth mode," prompting the bank to aim to take business from established players. "It's all about taking market share," Crawford said. "When you look at New England, there is not a lot of economic growth. So you have to take market share, which is what we do very well." This recruitment highlights a lack of skilled commercial lenders in New England, both Crawford and Thompson said. Duncan, meanwhile, added that demand has been up 30 percent for the MBA's weeklong commercial lending course that runs every October. The course is designed for those with at least a year of commercial lending experience to build their skills at connecting with and evaluating businesses. "There's a demand for experienced, trained commercial lenders and they are also developing existing staff through training programs," she said. With this focus on Central Massachusetts for commercial lending and a lack of long-time lenders, Thompson remains optimistic for com- mercial lending in the region, but ques- tions whether there will be enough busi- ness to go around. "I think a lot of banks are looking to expand their commercial lending — particularly the smaller banks. The big- ger banks have always been doing it, but the smaller banks are looking for alter- natives to residential lending," Thompson said. "I think there's a spot for everybody, it's just that time will tell if there's enough food on the table." n Banks muscle in for more commercial lending business >> Continued from Page 1 Bill Crawford, CEO of Connecticut-based United Bank, has beefed up his commercial lending team in Central Mass. $1 $1.2 $1.4 $1.6 $1.8 $2 HIGH $1.73 trillion 12/2014 12/2013 10/2010 LOW $1.18 trillion 7/2009 1/2008 $1.39 trillion $1.44 trillion } Great Recession (started Dec. 2007) In trillions of dollars Commercial lending in U.S. After falling to a low in October 2010, the value of commercial loans in the United States soared more than 50 percent by the end of 2014, to nearly $1.75 trillion. Source: Federal Reserve

• Cover