Leland R. Merrill joined Centreville Bank as senior vice president and chief lending officer in 2022.
With more than 25 years of experience in community and regional banking, including leadership roles at BankNewport and Citizens Bank, he oversees Centreville’s commercial lending strategy throughout Rhode Island and Connecticut and has helped support the West Warwick-based bank’s recent expansion, including the opening of new branches in Providence and Pawtucket.
PBN: Centreville Bank is preparing to open its second Providence branch this year in the next two weeks. What is driving continued investment in the city, and how does Providence fit into your broader lending and growth strategy?
MERRILL: Providence is not an extension market for us. It is a priority market. If you look at where business formation, redevelopment and capital investment are happening in Rhode Island right now, a significant share is concentrated in the city. To be competitive in lending, you have to be where that activity is happening and you have to be present in a meaningful way.
We also see a gap in the market. A number of institutions have reduced their physical footprint over time. Our view is different. Relationship banking still matters, particularly for small businesses, and that requires proximity and consistency.
Opening two branches in the capital city in one year reflects a long-term commitment, not a trial run. Through both Olneyville and our downtown location, we are intentionally building density in Providence.
Our downtown branch will also serve as a hub for lending activity, with dedicated loan production space, a community lending officer on-site and a team backed by years of local banking experience. That combination allows us to be more accessible, more responsive and more embedded in the business community. We view this expansion as both a growth opportunity and an investment in Rhode Island’s future.
PBN: As chief lending officer, what are you hearing right now from Rhode Island borrowers, particularly businesses? How would you characterize current sentiment: cautious, steady or expansion-minded?
MERRILL: I would describe sentiment as cautiously optimistic. There is a clear awareness of the current environment. Borrowers are paying close attention to rates, costs and overall uncertainty. But what stands out is that serious operators are still moving forward; they are just doing it with more intention.
The conversations we are having today are more focused. Borrowers are coming in with a sharper understanding of their financials and a clearer strategy behind their decisions. Rhode Island business owners have proven to be resilient, and many are focused on positioning themselves for future growth rather than waiting for perfect conditions. Overall, the market feels steady, with pockets of expansion-minded activity across sectors.
PBN: Where are you seeing the strongest loan demand today and what is driving that activity?
MERRILL: The most consistent demand comes from businesses that are investing in themselves. That includes owner-occupied real estate, operational expansion and strategic repositioning. Our SBA [Small Business Administration] lending continues to be a strong driver, particularly for businesses that want to control their space and build long-term value.
What is different today is the mindset behind that demand. This is not speculative activity. The borrowers who are moving forward have conviction. They understand their business, they understand their market and they are investing with a clear purpose. That tends to create stronger credit and more durable growth.
PBN: With interest rates still elevated compared with recent years, how has borrower behavior shifted? Are you seeing more refinancing delays, smaller deal sizes or stronger underwriting discipline?
MERRILL: The environment has brought discipline back into the process. Borrowers are taking more time to evaluate decisions. They are stress testing assumptions, adjusting deal structures and, in many cases, bringing more equity into transactions.
We are seeing some delay in refinancing activity and some recalibration in deal size, but the bigger change is in how decisions are being made. There is more focus on sustainability and less focus on short-term timing. From a lending perspective, that improves the overall quality of the portfolio and strengthens the relationships we build with our clients.
PBN: Looking ahead over the next 12 to 18 months, what sectors or trends will most shape lending opportunities and risks in Rhode Island’s economy?
MERRILL: The next phase is going to reward selectivity and strong relationships. There will continue to be pressure points tied to interest rates, operating costs and labor availability, and that will impact certain sectors more than others.
At the same time, there are real opportunities in small-business growth, housing-related investment, infrastructure improvements and community-based development.
The key is understanding where those opportunities are sustainable. Our focus is on staying close to our clients, understanding their strategy and structuring deals that make sense over the long term. We are not chasing volume. We are building a portfolio that performs through different cycles.
Rhode Island benefits from a resilient business community, and we believe Centreville Bank will continue to play an important role by combining local decision-making, experienced lenders and relationship-based service with the capital needed to support responsible growth across the state.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
