A Conversation With ... John Maupin

You’re tasked with building a commercial real estate and industrial loan portfolio at Old Missouri Bank. What’s your first step?
You have got to get your name out there. I have a lot of customers who have followed me around during the years from bank to bank wanting to know if I could continue to work their loans. Of course, I can; every bank’s money is green. I’ll start with my existing customer base, but also be out and about. I like to get out and call. I like to learn about new people and new businesses. Sometimes, I’ve struggled to sit behind a desk, but paperwork is a necessary evil in this business. However, there is always a new deal out there.

How would you characterize the commercial lending atmosphere right now?
The atmosphere is very competitive. The economy is still not great, and a lot of folks out there are nervous about it. There are not a lot of new projects happening. Essentially, right now in banking, you have a smaller pie and a lot of banks competing for that same small piece that used to compete for a larger slice. Southwest Missouri has one of the most competitive lending atmospheres in the country – that’s good for consumers but makes competition between the banks fierce. Competition drives interest rates down so pricing is a huge issue.

What do you do to be competitive in the local market?
It’s all about hustle, getting your name out there and being top of mind with people. From time to time, small-business owners’ loans will mature, and for whatever reason they want to get a couple of bids on that loan. That’s where the hustle comes in. If you haven’t talked to them in a year, they’re not going to remember you; you are not top of mind.

Banking has changed a lot since I started lending in 1996. There had always been folks out calling, but a lot of banking was old-fashioned sitting behind a desk. Since I have been in the game, it’s shifted to more of a sales atmosphere. Banking is a business just like any other business. We just sell money. During my first ever banking interview, the interviewer gave me a good piece of advice. He said, “Banking is changing. You can’t just sit behind a desk. You have to get out and hustle and build relationships.” That’s what I have done to stay competitive.

What activity are you seeing in Springfield’s current industrial loan market?
Most businesses in the area seem to be paying off debt and not borrowing as much. Everyone is hunkered down right now. With a lot of the new legislation that is out there, it’s a little more expensive to do business, so everyone is watching their pennies pretty close. For example, on an equipment loan, someone who would have bought a new piece five years ago, are now trying to make due with what they have. It’s not a bad thing. I get paid to loan people money, but my opinion is being debt free is a great way to be.

According to the Federal Deposit Insurance Corp. report ending Sept. 30, 2012, Old Missouri Bank loaned or leased $121 million, up 11 percent from $109 million in 2011. Why are loans up and what type are you approving most often?
This bank has done a nice job of being out in the market and trying to develop business. There is not a lot of new business to be had right now. Right now, banks are typically trading customers – stealing them from one another. It’s a hard thing to get out there and develop new business when everyone is hunkered down. That brings us back to the hustle.

This market has always had a heavy concentration of commercial real estate, so there is a lot of that to look at right now and we are seeing those loan numbers climb or remain steady. There is also quite a bit of agriculture to look at and some industrial right now, but it’s not where we would like it.

What effect do you think the so-called fiscal cliff had and will have on the banking industry?
I haven’t seen much of an effect at all. I don’t know that the deal has eased any of the public’s fear. We are essentially talking about the debt ceiling and the government’s ability to borrow money to pay its bills. I think more business owners are just worried about how they are going to get by day to day and more about making their payroll every Friday, than the stuff that is going on in Washington, D.C.[[In-content Ad]]