Bigger banks appear to be losing C&I share to small and midsize lenders. That's raising questions about whether community banks — known more for commercial real estate lending — have enough expertise to underwrite deals that larger banks avoid.
Total loans fell, but earnings soared thanks to wider margins, a smaller loan provision and fewer legal costs now that the Wilmington Trust probe is settled.
The Minneapolis company, which reported strong profits but 1% loan growth, is hiring middle-market bankers in New York and launching a digital lending platform aimed at small businesses.
A definition would give lenders a clearer idea of what practices are off limits; the mutual fund giant will provide the service for institutional clients.
Bank of America is showing more interest in commercial real estate lending while other lenders are pulling back, executives said. But they also said that they learned their lesson from the financial crisis and will proceed cautiously.
