The New England region has been spared some of the worst effects of the financial crisis, and more signs of recovery are appearing.
According to Greg Bordonaro, writing for HartfordBusiness.com:
Connecticut regional banks are opening their lending windows to businesses as greater demand for loans and a need to chase after higher yields is leading to a noticeable uptick in commercial lending.
But not all of that money is being loaned in the Nutmeg State. As Connecticut’s regional lenders continue to expand their geographic footprint, they are increasingly cashing in on opportunities in nearby, faster growing markets like Boston and New York City.
The article cites loan volume increases at Connecticut regional lenders such as WebsterBank, Peoples United Bank, and First Niagara Bank. Although business recovery and associated loan demand is one contributing factor, one industry analyst reports that the banks are actively attempting to shift their balance sheet distributions, to take advantage of the floating rate interest structures on commercial loans as opposed to residential loans.
According to Mark Fitzgibbon of the financial advisory firm Sandler O’Neill & Partners:
“Part of the reason banks are pushing hard into commercial loans is because they have been performing better during the economic downturn. Consumer loans have been hit a lot harder than commercial loans.”
Click here to read more from Hartford Business.