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Executive
Roundtable
As part of our special feature on small business banking,
Publisher Doug Forshey interviewed executives at leading
banks in Virginia to find out what they are seeing in
the small-business market.
Related
links:
- Bank of America - Jim McAlister
-
BB&T - Ray Barnes
-
Wachovia - John Eagan
SunTrust
Bank
Kathy
Meunier
Senior Vice President
Central Virginia
“In
Richmond we are seeing real positive growth in the business
market. SunTrust in general has really ramped things
up in the small business arena, and our portfolio has
grown about three times its size in the past two years.
“In
April of this year the Richmond office enhanced its
Business Banking Operating Model to include five business
banking officers and five business banking relationship
managers. The officers bring in the new relationship
and hand it off to the business relationship managers.
… They manage both the personal and business needs
for the business owners. We have also concentrated on
a great deal of business banking training for the branch
managers to give the client the perfect banking experience.
Throughout the commonwealth of Virginia, SunTrust has
added approximately 30 business banking offices and
13 business relationship managers this year.
“Our
growth in small business can be attributed to focusing
more attention on smaller companies. At SunTrust we
define the small business market as $5 million and under
in sales, or loans up to $1 million. We now realize
that there is a lot of potential in the small-business
end of the market. Clients want and need a personal
relationship with a bank and that is what SunTrust offers.
To encourage that business we have special rates and
discounted services for business clients who bring us
their entire banking relationship. We are not just after
a loan but want a relationship with the client just
as they want a personal relationship with a bank.
“The
recent low interest rates have had a dramatic effect
on the market. We are actually doing a lot of targeting
of businesses, many of which own commercial buildings
(for refinancing) and that is one way we have been able
to grow our portfolio. Businesses are taking some of
the equity they have built up in their property to make
improvements and to fund expansion. We used to go after
a lot of $10,000 and $20,000 loans — which we are
still doing — but we’ve revamped and now our
branch managers are doing loans up to $50,000.
“The
small companies we serve have niches in certain areas.
That’s what’s so interesting about this segment
— it can be somewhat insulated during these economic
downturns. We certainly find some companies that are
having a little more trouble than others, but our overall
loan portfolio is as strong as it has ever been. In
Richmond alone we’ve nearly tripled the outstanding
small-business loans. If you looked back at March of
2001, we were at about $24 million in small-business
loans. Right now we just broke into the $70 million
range, and we see a lot more growth to come. In fact
we’re hoping to hit $100 million by the end of
this year.”
Return
to Virginia Business - September 2003
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