Nation's Economic Woes Have Local Impact
July 28, 2016 at 4:25 p.m.
By Daniel [email protected]
Whether it's stories of bankruptcy, bailouts or foreclosures, the economic landscape looks grim.
And while banks like Citigroup and Washington Mutual have imploded, the same can't be said for local banks.
Sandy L. Fiedke, assistant vice president at First Federal Savings Bank, said her bank "remains strong and well capitalized."
Mutual Bank Vice President Max Courtney echoed Fiedke's sentiment. He said that by and large local banks that deal within the local community will remain solvent.
Courtney said his bank hasn't had a "knee-jerk reaction" to the current economic downturn.
Kevin Deardorff, executive vice president of Lake City Bank, agrees.
"I've had reporters contact me and say, 'How have you changed your underwriting standards?' And the answer is we haven't.
"We have been taking local deposits and making loans to local people," said Deardorff. "In the long run, that's the way to operate."
While there is never a "perfect time" to buy a new home or purchase a new vehicle, the prevailing thought is that now is the time for people to be in the market.
"People come in expecting it to be much more difficult than it is to get a loan," said Deardorff.
Courtney suggested being proactive, and for customers to talk to their bankers and ask questions.
Consumers are advised to use cash over credit whenever possible. That is especially true with perishable items such as food and clothing.
Creating a savings account is also wise.
Courtney noted an article in a banking periodical that stated that, generationally, people currently in their 20s may end up being more fiscally conservative than their parents or grandparents.
The article stated that people in their 20s tend to be more wary of consumerism, have grown up in unsteady financial times, and are more likely to be thrifty.
Courtney also said that while people may distrust big corporations, especially amidst talk of bailouts, local banks don't operate in that way.
"I don't think local institutions will take advantage of a borrower," said Courtney. "In our individual dealings we always have given the consumer the benefit of the doubt."[[In-content Ad]]
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Whether it's stories of bankruptcy, bailouts or foreclosures, the economic landscape looks grim.
And while banks like Citigroup and Washington Mutual have imploded, the same can't be said for local banks.
Sandy L. Fiedke, assistant vice president at First Federal Savings Bank, said her bank "remains strong and well capitalized."
Mutual Bank Vice President Max Courtney echoed Fiedke's sentiment. He said that by and large local banks that deal within the local community will remain solvent.
Courtney said his bank hasn't had a "knee-jerk reaction" to the current economic downturn.
Kevin Deardorff, executive vice president of Lake City Bank, agrees.
"I've had reporters contact me and say, 'How have you changed your underwriting standards?' And the answer is we haven't.
"We have been taking local deposits and making loans to local people," said Deardorff. "In the long run, that's the way to operate."
While there is never a "perfect time" to buy a new home or purchase a new vehicle, the prevailing thought is that now is the time for people to be in the market.
"People come in expecting it to be much more difficult than it is to get a loan," said Deardorff.
Courtney suggested being proactive, and for customers to talk to their bankers and ask questions.
Consumers are advised to use cash over credit whenever possible. That is especially true with perishable items such as food and clothing.
Creating a savings account is also wise.
Courtney noted an article in a banking periodical that stated that, generationally, people currently in their 20s may end up being more fiscally conservative than their parents or grandparents.
The article stated that people in their 20s tend to be more wary of consumerism, have grown up in unsteady financial times, and are more likely to be thrifty.
Courtney also said that while people may distrust big corporations, especially amidst talk of bailouts, local banks don't operate in that way.
"I don't think local institutions will take advantage of a borrower," said Courtney. "In our individual dealings we always have given the consumer the benefit of the doubt."[[In-content Ad]]
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