Despite the tough economy brought by the COVID-19 pandemic, many banks and credit unions found ways to grow their loan volume dramatically during the first six months of 2020.
While most financial institutions likely spent much of the first half of the year focusing on credit quality and the Paycheck Protection Program, some banks and credit unions still managed to find time to grow their loan books during the coronavirus pandemic.
The Fast 50, compiled from data collected by The Warren Group, publisher of The Registry Review, reveals the 50 fastest growing lenders in New Hampshire for the first six months of the year, compared with the first six months of 2019.
In late 2018, Metro Credit Union, which is based in Chelsea, Massachusetts and holds over $2.4 billion in assets, expanded its field of membership into Southern New Hampshire to include Rockingham and Hillsborough counties.
The move is already paying dividends. Metro originated 34 residential loans for a total volume of more than $9.2 million, representing a 367 percent increase from the first six months of 2019, according to data from The Warren Group.
Who are New Hampshire’s fastest-growing lenders this year? See our full rankings to find out.
The Fed’s decision to rapidly drop the Federal Funds Rate from 2 percent to zero in March triggered a wave of refinancings, and then purchase activity began to accelerate later in the second quarter as more of the economy slowly re-opened, said Robert Cashman, president and CEO of Metro Credit Union.
“I still think there is limited supply on the market because people are hesitant to move right now, and that’s why you are seeing a lot of people maybe borrow money; pull some money out; do a home equity to refinance their home and maybe upgrade their home to spend a little bit more time there,” Cashman said. “They want to do improvements or realize they may be at home a little bit more time than normal, and as such, are making investments in their home. Some of these loans are for improvements.”
Cashman also said a lot of customers sought pre-approval for mortgages, which greatly helped them in a market characterized by record low inventory.
“I think the pre-approval process has really helped us in getting people ready to go, and I think that’s where a lot of our volume came from,” he said.
Looking ahead, Cashman said Metro has a full pipeline. Not only is refinancing activity still strong, but the purchase market is getting healthier as the slow down in the first half of the year spills over and more sellers feel better about moving and listing their homes on the market.
Commercial Mortgages
Although many banks spent most of the second quarter trying to navigate the PPP, even commercial lenders were able to find growth in a very tepid market for borrowers and lenders.
After issuing more than $6 billion in PPP loans nationwide, and being the top PPP lender in New Hampshire, TD Bank is one of those banks that found room to run. The bank is the second largest deposit holder in the Granite State according to the FDIC’s most recent data.
According to data from The Warren Group, the bank originated 47 commercial loans for a total volume of roughly $99.4 million, representing 545 percent growth compared to the first six months of 2019.
“We remained steadfast and continued to lend and close a number of loans for various medical practices,” said Sheryl McQuade, regional president of TD Bank’s Northern New England operations. “Our team continued to support the credit needs of customers we previously committed to as well as new prospects. These clients are from a variety of industries, some of which have excelled during this time, including food wholesalers.”
McQuade attributes a lot of the success and the ability to expand the bank’s business while focusing on PPP to the team not letting the closing of branches and offices become a barrier for the bank.
“In this challenging environment, our team was able to quickly adapt to the work from home, virtual environment to ensure a seamless transition for our customers,” she said. “We were able to communicate and share information effectively as well as leverage our decentralized credit underwriting and local, autonomous decisioning, which made a significant impact.”
