Community banks are seeing credit growth, as businesses seek to expand to meet consumer spending.

This is the message that the number of community banks reporting third-quarter earnings this month is growing. After a year of delays, many small lenders are showing strong interest in commercial and commercial real estate loans. Many have also reported strong pipelines indicating a steady demand for loans by 2022.

If many banks report similar results, it will be a turning point for lenders. Lack of interest From the plague and into a new era of strength. Banks are full of deposits – the result of a major pandemic – and are well equipped to support credit growth.

“In this first wave of revenue from the bank, many markets are opening up, businesses are responding and credit is beginning to grow,” said Robert Bolton, president of Iron Bay Capital, which invests in community banks. . “I think the enthusiasm we hear from management teams about their ability to grow organically is true.”

However, growth is not on the board and total loan amounts are only an inch ahead of the quarter, Bolton said. But we are already seeing some clear positive signs that we have not seen in the last quarter or so. ”

According to the Federal Deposit Insurance Corporation, trade and industry loans for banks with assets of less than $ 10 billion fell 13.7% year-on-year and 10.1% over the previous quarter.

National Bank Holdings in Denver said it generated $ 413 million in quarterly loans in the third quarter, with $ 302 million in business loans and interest in Colorado and four neighboring western states.

The Bank’s $ 7.1 billion total loans for the quarter ended $ 4.4 billion, an increase of $ 121 million over the previous quarter after the loan disbursement. In the second half of this year, total loans increased by $ 174 million, or 16.5% year-over-year, excluding the Bank’s book loans.

“Looking ahead, we are very optimistic about the high level of business in our markets and the potential for our company to grow in the future,” said national chief executive Tim Lani last week in a call for revenue. He added that credit lines have the potential for sustainable growth in 2022.

Smart Financial, with $ 4.4 billion, tells the same story from its headquarters in Knoxville, Tennessee.

Total third-quarter debt increased by about 7 percent to $ 2.65 billion over the previous quarter. Sevier County Bancshares And partly from new interest from business borrowers. The bank’s organic loans grew by more than a quarter to 9% annually. He expects this figure to swell in the next half to “mid-teens.”

“We are seeing a great balance in all our markets,” said President and CEO Bill Carroll.

Banks across the country are showing similar resilience.

Mercantile Bank, a $ 5 billion business owned by Grand Rapids, Michigan, reached $ 162 million after discontinuing PPP credits, an annual growth rate of 25% compared to the second quarter.

Third-quarter business growth, excluding PPPP, of Orstista Financial Services in Shippenburg, Pennsylvania, is $ 98.2 million, or 33 percent year-over-year. The bank, which has a net worth of $ 2.9 billion, said in a statement that trade in credit was “expected to continue strong and strong.”

Pacific Premier Bankcope in Irvine, California, reported 11.5% annual credit growth over the past quarter. The $ 21 billion property bank completed the third quarter with a $ 14 billion loan balance, driven by growth in both CRE and C&I loans.

“We expect our new business lines to remain healthy, which will contribute to strong organic growth,” said Pacific Gardner, chairman and CEO of Pacific Premier.

S&P Global Economics predicts that the US economy will grow by 5.7% and 4.1% by 2021 and 2022, at the expense of consumers and investors to meet demand for new materials.

Americans increased spending in September, reflecting growing demand ahead of the holiday season. Sales at retail stores, restaurants and e-commerce sites are up 13.9 percent from a year ago, according to the US Department of Commerce.

But the potential head wind blows.

Consumer inflation rose to 5.4% in September from a year ago, which means prices are rising and high costs could fall if demand persists. Inflation is linked to supply constraints caused by the epidemic, and the pressures may weigh on companies’ ability to meet demand.

Tom Browton, chairman and CEO of Service First Banchairs in Birmingham, Alabama, noted that “low commodities” and “continued supply chain issues” could be a sign of unbalanced credit growth.

But he said the current demand and pipeline is strengthening. According to ServisFirst, $ 14.6 billion in third-quarter loans increased by $ 163 million, or 8 percent year-over-year. With the exception of PPP, loans grew by $ 370 million, or 18 percent annually.

Business expansion and additional commercial real estate projects seized at the time of the outbreak have been pushed back to Burner, which has increased demand, Bronton said in a call for revenue.

In an interview with bank executives, Eron Bay Bolton said he felt that echo.

“We are amazed at the quality of the revenue so far,” Bolton said. “People are already investing back in their businesses – and they’re working with their banks to do that – and I think after we go through these supply chain issues, we can go back to normal and broad growth.”