RankingBanking 24 Digital (1) - Flipbook - Page 27
25
Public Banks Closest to the $10 Billion Mark
Source: RankingBanking, compiled by Piper Sandler & Co. using S&P Global Market Intelligence 2023 data
National Bank Holdings Corp. (NBHC)
$9.95B
TriCo Bancshares (TCBK)
$9.91B
ConnectOne Bancorp (CNOB)
$9.86B
Park National Corp. (PRK)
$9.84B
Origin Bancorp (OBK)
$9.72B
Amerant Bancorp (AMTB)
$9.72B
Capital Federal Financial (CFFN)
$9.58B
S&T Bancorp (STBA)
$9.55B
the easy refinance call,” says Rietsma. “You need
exceeding $1 million, says Mercantile Chief Finan-
to find the person who actually found a house that
cial Officer Charles Christmas. But it’s a tough
they could buy and is ready to go. And that takes
time to be a commercial lender, with uncertainty
a lot of effort.”
hovering over CRE loans due to work-from-home
Residential mortgage loan originations in-
trends and loans repricing at higher interest rates.
creased by 17% in 2023. That loan mix has shift-
Not all CRE is in trouble, says Baldwin at
ed toward adjustable rate mortgages in the higher
Crowe. “It is tied to region; it’s tied to asset class,”
rate environment, according to Mercantile’s annu-
she says. “And it’s tied to individual underwriting.”
al report. Those loans stay on balance sheet while
Lower loan-to-value ratios and personal guaran-
fixed rate loans are sold.
tees make a big difference in assessing the quality
Rietsma emphasizes discipline when he talks
of a bank’s CRE portfolio.
about the bank’s financial performance. “We can
“Our borrowers are performing quite well,” says
be very consistent across our organization, and
Rietsma. “The few that aren’t have more specific
what we do and how we do it,” he says. When
challenges. We’re trying to be very diligent to find
Rietsma talks about discipline, he’s referencing
those and deal with them, quickly and early.”
adherence to the bank’s underwriting standards
as well as its approach to asset/liability and capital management.
The Asset Sensitive Balance Sheet
Rietsma joined Mercantile two decades ago and
For example, it’s been more than a decade since
became CEO in June after former CEO Robert Ka-
the bank ended a quarter with a nonaccrual loan
minski Jr. retired. In contrast, McComish joined
