Local loan market still vigorous

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Despite recent downturns in the national, local bankers say that in the Springfield area, the demand for home and commercial loans remains healthy.|ret||ret||tab|

"The market for loans continues to be pretty strong as it relates to home building and buying," said Joe Gaunt, executive vice president of Citizens National Bank, 3312 S. Glenstone. "We haven't seen a slowdown yet." |ret||ret||tab|

W. Thomas Fowler, president of Missouri State Bank, 3310 E. Sunshine, said the loan business has been good at his bank for most of the year. "Residential buying and building is really good," he said. "I think that's a function of the lower long-term interest rate mortgages. Everybody has their own guess as to what the rates will do. But compared to the rates over the last 30 years, they're very good. People know the rates are good and very cheap. When the rates are down, it's good for us as well as the real estate buyer."|ret||ret||tab|

Fowler added that due to the low prime rate, which stimulates building and adding on, the bank's commercial loan side is also busy.|ret||ret||tab|

Tom Highley, president of Old Missouri Bank, 1535 W. Sunshine, also cited lower interest rates as being of benefit to everyone. "We've seen rates drop over the last year-and-a-half," he said. "So we're seeing more people take out commercial and residential loans and refinancing their homes. We've seen good, steady loan growth in the two years we've been open."|ret||ret||tab|

All three bankers agree that the economy hasn't had any effect on which loans they approve.|ret||ret||tab|

"We haven't made any changes in underwriting in the recent past," Gaunt said. "We still evaluate every deal based on its own merit."|ret||ret||tab|

Fowler said the economy hasn't deterred Missouri State Bank from passing on loan approvals. "We're making a lot of residential real estate loans," he said. "Residential and commercial real estate buyers recognize the interest rates are very attractive."|ret||ret||tab|

Highley said that while all banks pass on some loans, for reasons like lack of collateral, the action isn't a direct reflection of the economy. He said that while bankers don't have a crystal ball that can let them know what interest rates will be, local bankers are nonetheless feeling positive about the future.|ret||ret||tab|

"We anticipate a good steady volume," he said. "We have a positive outlook for the future in terms of loan demand. Springfield has a diversified economy, which gives us shelter that other parts of the country, like the east and west coasts, don't have."[[In-content Ad]]