Commercial and industrial loans – business loans – fell significantly at Gulf Coast banks in the second quarter of 2021 compared to a year earlier.
A remarkable example: only four of the 22 community banks based in the region saw an increase in C&I lending in the second quarter, and one of them, the Central Bank of Tampa, only increased by 1%. The other three to increase C&I loan portfolios, according to an analysis of Federal Deposit Insurance Corp. data, were Raymond James Bank (+ 11%), TCM Bank (+ 13%) and First National Bank of Pasco (+ 20% ).
On the flip side, most banks in the region have reported double-digit declines in C&I loans. Winter Haven-based South State Corp., formerly CenterState Bank, one of the region’s largest banks, reported a 23% drop in C&I loans, the data showed. That’s down from $ 4.4 billion to $ 3.4 billion.
Housing loans from community banks, meanwhile, have remained broadly stable over the past year. Flagship Bank in Clearwater (+ 80%) and Gulfside Bank in Sarasota (+ 63%) were positive points. South State reported a 5% drop, and being significantly larger than most other banks in the region, lowering the trend for the group as a whole.
Raymond James Bank and Central Bank were the only two banks to have successfully developed both home loan and C&I portfolios. In contrast, the four banks that increased mortgage lending by more than 20% (Flagship, Gulfside, Pilot Bank and First Home Bank) recorded a decline in commercial and industrial lending.
– Alexandre Walsh