CRE Lending Market Simplified: Key Insights for 2019
Presenters: Rob Ashbaugh & Roger Shumway
The commercial real estate (CRE) lending market was rocky throughout 2018, and regulators are keeping an eye on that trend in 2019.
American Banker says the CRE lending market, often dominated by community financial institutions, has been in a slump due to nonbank lenders entering the market, an increase in delinquency rates, and the rise of shared workspaces.
As the CRE market has slowed, regulators have begun to scrutinize CRE portfolios more, which means stress testing the portfolio and steady underwriting standards will be crucial for community banks’ portfolio risk strategy going forward.
About the Presenters
Rob Ashbaugh, Senior Risk Management Consultant
Rob Ashbaugh has more than 20 years of capital markets and commerical banking experience as both a Portfolio Manager and Risk Manager, with a primary focus on mortgage-backed securities, whole loan portfolios and commercial lending. His prior responsibilities included monthly ALLL calculations, institutional and concentration stress testing and risk analytics. Today, as an Executive Risk Management Consultant at Abrigo, he is responsible for assisting financial institutions with their risk management needs. Rob is a past holder of the Series 7, 52, and 63 licenses and has received formal credit training. He earned his bachelor’s degree in both economics and international business from Temple University.
Roger Shumway, Executive Vice President & Chief Credit Officer, Bank of Utah
Roger Shumway has worked in commercial banking for 40-+ years. Presently, he is Executive Vice President & Chief Credit Officer of Bank of Utah a $1.4 billion Fed member state chartered bank. He previously worked at Zions First National Bank, First Security Bank of Utah and Wells Fargo Bank. Roger is Chairman of the ABA CRE Lending Administrative Committee and various task groups, i.e. appraisal, DEL, HVCRE and LIBOR transition. He also served on the RMA Community Bank Council, is a member of its Accounting Committee and is on the RMA Journal Editorial Board. Appointed by the Governor of the State of Utah he serves as Chairman of Board of Bank Advisors for the Commissioner of Financial Institutions. Mr. Shumway is the Utah State Representative for Friends of Traditional Banking.