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Private Label C&I Financing Program

Is your bank working to expand its C&I lending presence, but finding progress slowed by limited C&I lending experience, inadequate Management Information Systems (MIS) capabilities, credit risk concerns and/or competitive pressures?

With real estate dominated lending models no longer viable, community banks are turning to C&I lending to replace this lost revenue and drive future loan growth. Concurrently, many community banks have recognized a need to achieve greater diversity in their commercial lending portfolio in order to balance credit risk and grow commercial loan revenue. However, the current market and regulatory environment present numerous obstacles to successful execution of this strategy:

  • C&I borrowers with a strong credit profile are difficult to find, particularly after the recent recession, and competition for these prospects is intense, leading to thin pricing and loose covenant structures
  • Bank regulatory authorities are concerned about the credit quality of new C&I loans generated by community banks, and are closely monitoring the space
  • Experienced C&I credit and back-room administrative personnel are scarce and MIS are expensive, making it difficult for community banks to effectively structure, underwrite, monitor and administer C&I loans, the collateral for which is complex and dynamic
“I really like the one-on-one relationship I have with our account manager. Everyone at Franklin works together as a team and take the time to understand our needs.”

President, California-based Machine Parts Manufacturer