Peter A. Rinaudo was recently named vice president and commercial lending officer for HarborOne Bank. He comes to HarborOne after 12 years as a senior vice president and team leader for Webster Bank, and has also worked for TD Bank, Wells Fargo and Sovereign Bank. He has a bachelor’s degree and master’s in business administration, both from Anna Maria College.
PBN: How has COVID-19 changed commercial lending demands and services, both from customers and the bank?
RINAUDO: COVID has reinforced the idea that businesses need a team of responsive external advisers to help them plan, execute and achieve their short-term and long-term goals. A strong relationship with a knowledgeable banker and a financially sound bank helped firms navigate a rapidly changing landscape. New sources of funding – unheard of before COVID – suddenly emerged and needed bankers’ expertise. Clear lines of communication in those external partnerships helped businesses access much-needed capital during both of the PPP [Paycheck Protection Program] loan programs’ funding and forgiveness over the last two years.
During the pandemic, banks needed to adapt quickly to the evolving digital needs of their customers when considering the virtual processing and funding of commercial lending requests and the fine-tuning of online cash management depository services, while maintaining the highest standard of securing customers’ information in a dynamically changing IT [information technology] environment. Many bankers needed to go from in-person meetings with their clients to virtual meetings overnight, all the while “building the bridge while we were driving across it” with our SBA [U.S. Small Business Administration] and other government partners; creating programs giving needed access to capital; and helping customers enhance their fraud prevention and mitigation tactics.
PBN: What types of commercial loans do you see as the biggest growth areas and why? Which may be less in demand, and how does that affect the bank?
RINAUDO: The focus on commercial real estate continues to be a strong point of growth regionally, with current or future customers benefiting from historically low interest rates, lower vacancy rates and increased property values. We anticipate this demand to continue into 2023, whether it’s traditional refinance requests on stabilized property, rehabilitation projects, or ground-up construction.
Banks are also helping their longer-term clients plan for future mergers, acquisitions, wealth transfers and transition planning as many family-run companies are handing down the management of their companies to the next generation.
Commercial and industrial loans, as well as term notes, lines of credit and loans with enhancements from the U.S. Small Business Administration will all continue to have a strong demand in the final two quarters of the year and into 2023 as businesses continue to update their roadmaps to capitalize on opportunities and plan for potential speedbumps. If economic conditions do deteriorate in the future, credit appetites will only correspondingly increase to fill in the gaps in funding where needed.
PBN: How does the bank protect against potential commercial loan defaults, especially in the current market and predicted volatility?
RINAUDO: First, the bank must maintain clear, transparent and open lines of communication with its customers so it can know its customers’ changing needs and credit appetites in real time.
A good commercial banker will run toward his or her customers when times get more difficult, so as many of the options for a proposed resolution can be available in a timely manner, businesses can react in real time to the challenges they are facing.
Second, by fostering constant communication and garnering continuous feedback, the bank will know its customers on a deep level, enabling it to craft loan structures that fit the needs of its clients. The more precise the negotiated structure during the loan request initial phases, the clearer the path for everyone working together on the way to a successful lending relationship.
PBN: What distinguishes a community bank such as HarborOne from larger regional and national banks when it comes to consumer banking services?
RINAUDO: That’s an easy answer. After 20 years in finance, I found HarborOne to be the perfect size for our regional customer base in its ability to create long-term personal relationships with business decision-makers, leading to long-term success and organic growth. At $4.7 billion in assets, we are big enough to offer a large depth of products and services for even the most sophisticated clients, while still offering the personal attention that most businesses and sponsors need to remain nimble and timely in their decision-making processes.
Our ability to regionally execute our strategic plan works hand in hand with our fast credit decisioning, responsive turn times and high customer service standards. My clients know that when they need to, they will speak with me directly. They are not handed off to a call center or representative that they have never met.
We know the community because we live here, serve on boards here, go to school events here. I am proud to represent HarborOne Bank and encourage businesses and consumers to explore all that we have to offer.
PBN: What are your top three goals for the year ahead?
RINAUDO: Recommit: Continue to walk the fine line of strengthening and deepening the relationships that I have built over my career, while allowing time to explore new opportunities with new business partners. With a compelling set of offerings at HarborOne Bank, it’s always a delicate balance between the two, and never a dull moment.
Recognize: Next year, there will be renewed opportunities for my clients to plan, execute and continue their path forward. Businesses in this region continue to prove their resilience every day. I look forward to the unknown and the challenges that 2023 will bring.
Repeat: Although the competitive and economic landscapes are changing, one thing always remains the same; if I can deliver the totality of the bank to every single customer, every single time and foster clear communication even when difficulties arise, the resulting success of my clients will be the reward forged with hard work and collaboration.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
