Greater Reading Chamber Commerce Quarterly Spring 2017 - 18
feature
Business Banking and the Berks Economy-Outlook
Tyrone Muse, President & CEO,
Visions Federal Credit Union
Timothy Snyder, President - CEO,
Fleetwood Bank
1. Do you see confidence
growing in Business
Borrowing for growth and
expansion for 2017 and,
if so, why and where?
We have seen some growth in the Business Borrowing
arena. Primarily tied to real estate projects (student
housing, professional housing, etc.). We have seen
a few new Real Estate (Commercial Buildings as
well). Our pipeline is strong.
2. Do you believe Inflation
is an immediate risk
and, if so, how will it
affect borrowing rates
for business owners
and general consumers,
and what's your
general outlook on a
corresponding return to
higher savings rates?
I am still not concerned over inflation. I do believe
the Fed will continue to raise rates in 2017 but this
will not lead to notable savings rate increases from
banks in 2017.
Yes, we do. Business has received the presidential election
results positively with the promises of reduced regulation and
tax rates. Also the economy continues to improve and the
consumer is beginning to realize increases in income. This will
improve even more if the promise of reduction in the cost of
medical insurances is realized. Many manufacturers are still
waiting to see a meaningful increase in retail spending and
consumer confidence to boost production but they feel that
we are getting closer to that occurring than we have in some
time. New home construction and construction in general has
been sitting on the sidelines for some time and is lagging other
local markets in Southeast Pa. We hope to see improvement in
this area in 2017.
3. With GDP ramping
up and unemployment
low, do you see this as
an inflationary risk or a
growth opportunity, and
why?
I am still not concerned with inflation. I am
moderately hopeful for business growth but am
not currently anticipating a robust year. I think
the political landscape still needs to be determined
along with the areas of spending.
In 2017 it will be a growth opportunity for Berks County. We see
little evidence of any real inflationary risks in the local market.
With the number of people who remain underemployed and
businesses still somewhat reluctant to make any real capital
investments in increased productivity, inflation should not be
an issue.
4. What changes would you
like to see under the new
administration in regards
to consumer regulations
and the Consumer Finance
Protection Bureau, and
how would that have
positive impacts for
business growth and
development?
I believe a general stronger oversight and board
for the CFPB would be great. Less regulatory
landscape adding cost on banking structures that
are ultimately passed on to consumers would
be great as well. I am hoping for a pro-business
attitude for the administration.
We believe the CFPB has created unintended challenges with
the average consumer related to increased RESPA/TRID
disclosures. The increased complexity and required waiting
periods can slow the home equity loan and residential mortgage
process and may result in higher costs for the consumer.
5. What areas of the local
economy present the best
opportunities for growth
for your organization
going forward, and why?
The credit union has limits on areas that really can
grow due to our charter but we anticipate growth in
Allentown, Bethlehem, and Reading, Pennsylvania.
Growth in capital spending by businesses has been stagnant
for a long time and there is a need to change that as business
productivity and performance has been stalled for a long time.
This applies to both service and manufacturing entities. We
believe 2017 will see business owners begin to spend money
for improved capability and capacity. Along with the recent
bank mergers and the dislocation that causes with staff and
customer relationships, we see 2017 presenting a lot of good
opportunities in the commercial lending market.
6. What is your financial
institution's ideal business
client type/profile?
Ours are people seeking value, convenience and
great service. We excel at free checking, mobile apps,
branch service, and loan origination (Mortgages -
no closing costs; Credit Cards - low to no transfer
fees; Home Equities - great rates). We have added
new strengths in financial advisement as well.
Our ideal business client has borrowing needs in the $4
million dollar to $25,000 range; they utilize electronic banking
services including remote capture, ACH, bill paying, and
sweep accounts. Most importantly they are looking for a local
institution that knows and is dedicated to the local business
owner and market and who places value in the individual
customer relationship.
No, we do not see inflation as a meaningful risk. We expect
short term rates, i.e. prime rate to move up possibly another
1/4 to 3/8% during the year and long term rates will move up
only slightly and remain low compared to historical levels of
just 8 to 10 years ago.
18 COMMERCE QUARTERLY SPRING 2017
Table of Contents for the Digital Edition of Greater Reading Chamber Commerce Quarterly Spring 2017
Greater Reading Chamber Commerce Quarterly Spring 2017 - 1
Greater Reading Chamber Commerce Quarterly Spring 2017 - 2
Greater Reading Chamber Commerce Quarterly Spring 2017 - 3
Greater Reading Chamber Commerce Quarterly Spring 2017 - 4
Greater Reading Chamber Commerce Quarterly Spring 2017 - 5
Greater Reading Chamber Commerce Quarterly Spring 2017 - 6
Greater Reading Chamber Commerce Quarterly Spring 2017 - 7
Greater Reading Chamber Commerce Quarterly Spring 2017 - 8
Greater Reading Chamber Commerce Quarterly Spring 2017 - 9
Greater Reading Chamber Commerce Quarterly Spring 2017 - 10
Greater Reading Chamber Commerce Quarterly Spring 2017 - 11
Greater Reading Chamber Commerce Quarterly Spring 2017 - 12
Greater Reading Chamber Commerce Quarterly Spring 2017 - 13
Greater Reading Chamber Commerce Quarterly Spring 2017 - 14
Greater Reading Chamber Commerce Quarterly Spring 2017 - 15
Greater Reading Chamber Commerce Quarterly Spring 2017 - 16
Greater Reading Chamber Commerce Quarterly Spring 2017 - 17
Greater Reading Chamber Commerce Quarterly Spring 2017 - 18
Greater Reading Chamber Commerce Quarterly Spring 2017 - 19
Greater Reading Chamber Commerce Quarterly Spring 2017 - 20
Greater Reading Chamber Commerce Quarterly Spring 2017 - 21
Greater Reading Chamber Commerce Quarterly Spring 2017 - 22
Greater Reading Chamber Commerce Quarterly Spring 2017 - 23
Greater Reading Chamber Commerce Quarterly Spring 2017 - 24
Greater Reading Chamber Commerce Quarterly Spring 2017 - 25
Greater Reading Chamber Commerce Quarterly Spring 2017 - 26
Greater Reading Chamber Commerce Quarterly Spring 2017 - 27
Greater Reading Chamber Commerce Quarterly Spring 2017 - 28
Greater Reading Chamber Commerce Quarterly Spring 2017 - 29
Greater Reading Chamber Commerce Quarterly Spring 2017 - 30
Greater Reading Chamber Commerce Quarterly Spring 2017 - 31
Greater Reading Chamber Commerce Quarterly Spring 2017 - 32
Greater Reading Chamber Commerce Quarterly Spring 2017 - 33
Greater Reading Chamber Commerce Quarterly Spring 2017 - 34
Greater Reading Chamber Commerce Quarterly Spring 2017 - 35
Greater Reading Chamber Commerce Quarterly Spring 2017 - 36
Greater Reading Chamber Commerce Quarterly Spring 2017 - 37
Greater Reading Chamber Commerce Quarterly Spring 2017 - 38
Greater Reading Chamber Commerce Quarterly Spring 2017 - 39
Greater Reading Chamber Commerce Quarterly Spring 2017 - 40
Greater Reading Chamber Commerce Quarterly Spring 2017 - 41
Greater Reading Chamber Commerce Quarterly Spring 2017 - 42
Greater Reading Chamber Commerce Quarterly Spring 2017 - 43
Greater Reading Chamber Commerce Quarterly Spring 2017 - 44
Greater Reading Chamber Commerce Quarterly Spring 2017 - 45
Greater Reading Chamber Commerce Quarterly Spring 2017 - 46
Greater Reading Chamber Commerce Quarterly Spring 2017 - 47
Greater Reading Chamber Commerce Quarterly Spring 2017 - 48
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