BankBeat’s Tom Bengtson discusses loan pricing with Aaron Stoffer, relationship manager and investment officer at Country Club Bank Capital Markets Group.
In terms of loan pricing, bankers sometimes take too much risk for too little reward, Stoffer noted. Though bankers sometimes feel like they need the lending relationship, sometimes having a deal fall through can be the best option. Banks trying to fund their loans in the same market that they make them can put pressure on the spread and profitability over the life of the loan, he noted.
In the wake of the failures of Silicon Valley Bank, Signature Bank and First Republic Bank, local businesses cherish having a specialized, caring loan officer close to home, Stoffer said — even enough to pay more for a loan.