Sterne Agee: New England economy ‘gaining some steam’

PORTLAND, Maine – The New England economy appears to be “gaining some steam” and community banks have the ability to post loan growth between 6 and 12 percent in 2014, analysts Matthew Kelley and Matthew Breese of Stern Agee’s Portland, Maine, office said in an April 7 press release following a tour of Northeast banks.
“Loan-to-deposit ratios are higher than national averages in the Northeast and the region has a large number of legacy thrifts with higher levels of interest rate risk,” the analysts said. “We think this will be a key point of discussion and investment risk going forward for banks in the region.”
The issue also factors into the M&A market as larger, growing banks seek targets that enhance their funding and liquidity profile, the analysts said.
“The role of the branch in the future world of banking was one discussion topic that came up at every meeting on our road trip,” the analysts said. They pointed to Webster Financial and First Connecticut as having fully-adopted the “universal banker” model, with smaller branches averaging 1,500 to 2,000 square feet.
Webster Bank Senior Vice President and Market Manager for the Rhode Island and shoreline Connecticut region Sharon E. Trask told Providence Business News in February that 22 of the 33 positions in her region were trained in universal banking and the cross-training in the many segments of retail banking will continue to be phased in for all staff.
“We are no longer hiring ‘tellers’ – that stopped after the first quarter of 2013,” Trask said.” The people who are coming in understand that transactions are not their only responsibility.”

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