Summit Poll: Which area of the loan portfolio is your focus for growth?
In September, Sageworks hosted the 5th Annual Risk Management Summit at the AT&T Executive Education and Conference Center in Austin, Texas. The Summit was the largest Sageworks event to date and featured presentations from industry leaders, interactive roundtable discussions, panels and networking opportunities. During Banker Appreciation Night, a dinner event for bank and credit union executives, attendees were polled about their industry experiences over the past year.
During the 2016 Risk Management Summit attendees were asked which area of the loan portfolio was the focus area for growth at their respective institutions. According to responses from 142 individuals, 42 percent of respondents indicated that Commercial Real Estate (CRE) lending is the primary focus for growth in the loan portfolio. Another 39 percent of respondents said that Commercial and Industrial (C&I) loans are the primary focus for growth. Only 5 percent indicated Retail was the focus of portfolio growth and 14 percent of respondents said 1-4 Family loans were the top priority for growth.
“Banks are really trying to compete in the commercial space, especially with CRE. With interest rates low and interest margins low as well, banks lend in areas that make them money, like CRE,” says Sageworks Senior Risk Management Consultant Robert Ashbaugh. “These results are interesting – commercial borrowers are getting the attention, but banks still need retail deposits. They may start focusing on niche lending like hotels, indirect lending or specialty lending.”
To review some of the main takeaways from sessions held at the Risk Management Summit, visit http://web.sageworks.com/2016-summit-takeaways/.