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Executive
Roundtable
As part of our special feature on small business banking,
Publisher Doug Forshey interviewed executives at leading
banks in Virginia to find out what they are seeing in
the small-business market.
Related
links:
- Bank of America - Jim McAlister
-
SunTrust Bank - Kathy Meunier
-
Wachovia - John Eagan
BB&T
Ray
Barnes
Small Business Banking Manager
“Currently
the performance of our small business banking area is
closely following the recent trends of our U.S. economy.
Our clients have a positive, but cautious outlook for
the business climate for the remainder of 2003. They
are looking at their business models, looking at what
they have in the pipeline and watching for signs of
encouragement. We believe that once they see signs of
life in the economy, they will start to undertake the
expansion plans that have been on hold for the past
few years.
“One
of the positive effects that we are seeing from the
lower interest rates has been the increase in equity
that small businesses have built up in their property.
Whether they are doing an outright refinance at a lower
rate, or simply enjoying the advantages of a lower adjustable
rate and paying off more principal, they are benefiting
financially from the rate environment. In some cases
it has helped them keep equilibrium with a depressed
business environment. The lower rates have allowed a
reduction in interest expenses more in line with lower
revenues. And overall the more rapid amortization of
their existing loan outstandings can result in an increase
in their equity and put them in a better position to
grow their business when the recovery kicks in.
“Right
now BB&T covers an 11-state market, plus Washington,
D.C., by dividing this area into 31 distinct regions.
Each region has its own president, which we view as
our community bank president. The regional presidents
are in the best position to know the unique qualities
of the regions they serve and are in tune with their
clients’ needs. Approximately 95 percent of the
lending decisions are made close to the client. Along
with the bank’s loan administration team, the regional
presidents are empowered to guide and influence these
decisions, which is a key backbone of BB&T’s
credit culture and our small business model. Within
Virginia we have a 229-branch network that will greatly
increase with the completion of our merger with First
Virginia Banks in mid-October. They have 289 branches,
and will more than double our presence in the market.
“One
final note on the merger. When we have gotten together
with our peers at First Virginia Banks, we have been
impressed with their enthusiasm and their interest in
BB&T. They are really excited to be part of the
BB&T family, seeing the new products and benefits
they will be able to offer their existing clients and
business prospects.
“As far as our commitment to the small business
market, I am proud to say that the U.S. Small Business
Administration has named BB&T either the No. 1 one
or No. 2 small-business-friendly lender nationally for
each of the past five years. Our mission is to continue
... being recognized by the SBA as a small business-friendly
bank.”
Return
to Virginia Business - September 2003
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