Firstrust Bank’s Time-Tested Experience Warded Off High-Profile Industry Woe
The Silicon Valley Bank failure has caused a banking industry uptick in diligence, as reported by Joseph N. DiStefano in The Philadelphia Inquirer. At Firstrust Bank, Conshohocken, the increased oversight comes atop its vast experience.
Early in the industry unsteadiness, Firstrust accented high-quality consumer and home mortgage loans, related Tim Abell, president. That action precipitated an $8 billion lift in the bank’s loan portfolio in just months.
Abell cited potential in commercial real estate projects. “There are still cranes in the air in the city,” he said, referring to signs of construction bullishness.
Firstrust chairman Richard Green, however, noted that rate changes may dampen enthusiasm.
“With higher rates, some projects that might have made sense last year … may not get done. It’s like on the roads: When it gets foggy, and there’s a lack of clarity, people slow down,”.
Among bank depositors, bank failure reactions led more toward a search for assurance, not expressions of panic.
Green described a call from a Firstrust depositor who merely wanted to ask if her deposits were safe in this era of volatility.
“I have a lot of money with you,” she told Green. And in assessing her ability to recover from economic setbacks, she said, “At this age, I can’t go back to belly dancing.”
More on Firstrust is at The Philadelphia Inquirer.
An easy-to-grasp explanation of what happened to Silicon Valley Bank.
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