Banks Swoop Back in on CU Commercial Real Estate Prospects
The first loan participation Pen Air Federal Credit Union was involved in teamed the cooperative up with a regional bank.
It was a big deal within the industry because it was one of the first times that a credit union partnered with a bank on a participation transaction, said Tom Furr, assistant vice president of lending, at the $1.2 billion Pen Air FCU in Pensacola, Fla.
The competition has certainly spread within the commercial banking sector and that could continue for some time depending on how the housing market will fare going forward, Salmon said.
“When is the residential market going to cool? No one knows for sure,” Salmon said. “A lot of banks are going back to business banking. I’ve heard from business development officers who are shaking the trees and hearing that our members will let us know that they’re talking to us and others. Some are very loyal but others want the best they can get.”