Good credit analysts are in short supply, says David Nicholson, a senior v.p. of commercial lending at a community bank. But fair warning for job seekers: Only dogged questioners who can think critically need apply because vetting business borrowers is as much art as science.
The Stamford, Conn., issuer of store credit cards has two potential options after the retail giant chose to partner with Capital One. But the decision over which path to take is out of its hands.
The Oklahoma bank’s net charge-offs were its second-highest in the last five quarters, but the company said it was confident in its credit quality outlook and growth prospects from a pending acquisition.
As the company boosts originations to subprime and other borrowers, it remains to be seen if the improvements in asset quality will continue. A similar question mark is hanging over many consumer lenders these days.
Credit card and auto loans grew again in the second quarter at the McLean, Va., company, and the net charge-off rates of both business lines fell, too.
Repayments on acquired residential mortgage loans were the main reason, but other bottom-line boosters more than made up for that, the Buffalo, N.Y., bank said in reporting second-quarter results.
Declines in corporate banking and energy loans were part of the reason loan growth was light, but the Dallas bank reported strong earnings thanks heavily to fatter margins.
Economic cycles do turn, eventually. And it is inevitable that the industry will fall victim to a new approach to banking that will fall flat in a downturn.
Provident Financial said it increased its allowance against a commercial loan after discovering that the borrower overstated the value of its collateral.
