Optimism and Opportunity for Banks
• 3 min read
- Brief: Banking
The importance of building client relationships and providing solutions was center stage at a recent regional banking roundtable.
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Customers may have grown more cautious around inflation and interest rates, but Colorado’s regional bankers still are feeling optimistic, according to participants in September’s Northern Colorado Banking Roundtable, as reported by BizWest.
The failures earlier this year of Silicon Valley Bank and Signature Bank rattled clients and sent some to seek safe haven at larger banks. Though the dust appears to be settling, caution remains pervasive amid a struggling economy and rate hikes that have pushed the cost of loans upward.
Banking customers, meanwhile, are looking for the most opportune use of their deposits. Just as important, customers want a relationship with someone who can be their problem-solver.
All of which has led regional banks to go back to basics: winning clients by offering quality services and building relationships.
Those views were highlighted by the participating executives of several regional banks and credit unions who met with BizWest business journal for the September Northern Colorado Banking Roundtable. .
Tom Chesney, President of AMG National Trust’s Commercial Banking Division, was quoted as saying:
“There’s a flight to quality. Banks with strong ratings” are popular with customers, he said. “Customers are looking for a return of their money, not a return on their money.”
CONFIDENCE TINGED WITH CAUTION
Executives at the regional roundtable said customers appear confident and eager. Mortgage pre-approvals and commercial lending levels are starting to bounce back.
They also cautioned that performance is patchwork in some places. For instance, metro areas continue to face headwinds. Several of the bankers also said they doubt a full-blown recession is on the horizon.
Nationally, the KBW Nasdaq Regional Banking Index showed improving performance in the second quarter of 2023 for midsize banks, with higher-quality loans and more money set aside to cover surprise losses.
The index seeks to reflect the performance of U.S. companies that do business as regional banks or thrifts.
BANKS CAN EMPHASIZE FLEXIBILITY
The likelihood that interest rates will remain higher for longer may put those who need to refinance as loans come due in a tough spot.
But it’s also an opportunity for regional bankers to be problem-solvers. They can highlight their flexibility in the community over larger banks by working closely with customers and walking through some of the what-if scenarios.
The executives emphasized that regardless of why customers first do business with a bank, they ultimately stay because of a relationship with the banker, and that the institutions bringing new ideas to the table will be the winners.
TALK TO AMG ABOUT YOUR BANKING NEEDS
AMG National Trust Bank recently was awarded a fourth consecutive A+ rating by independent ratings agency Weiss Ratings and is proud to be recognized as a high-performing community bank. We believe that community banks are vital organizations to local communities. They support their local economies, take the time to truly know their customers, and can offer nimble decision-making on loans.
Our customized lending and deposit solutions include personal and business checking and savings accounts, working capital loans, expansion loans, acquisition loans, and lines of credit.
Learn more about AMG’s banking solutions, and schedule a free consultation with an AMG banker today.
This information is for general information use only. It is not tailored to any specific situation, is not intended to be investment, tax, financial, legal, or other advice and should not be relied on as such. AMG’s opinions are subject to change without notice, and this report may not be updated to reflect changes in opinion. Forecasts, estimates, and certain other information contained herein are based on proprietary research and should not be considered investment advice or a recommendation to buy, sell or hold any particular security, strategy, or investment product.
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