Commercial Loans
The commercial loans we offer generally include short-term secured and unsecured
business and commercial loans with maturities ranging from 12 to 24 months,
accounts receivable financing for terms of up to 24 months, equipment loans
which generally amortize over a period of up to 7 years, and SBA guaranteed
business loans with terms of up to 10 years. The interest rates on these loans
generally are adjustable and usually are indexed to The Wall Street Journal’s
prime rate and will vary based on market conditions and credit risk. In order
to mitigate the risk of borrower default, we generally require collateral to
support the credit or, in the case of loans made to businesses, we often require
personal guarantees from their owners, or both. In addition, all such loans
must have well-defined primary and secondary sources of repayment.
We also offer asset-based lending products made to businesses that are growing
rapidly, but cannot internally fund their growth without borrowings. These loans
are collateralized by a security interest in all business assets with specific
advance rates made against the borrower's accounts receivable and inventory.
We control our risk by generally requiring loan-to-value ratios of not more
than 80% and by closely and regularly monitoring the amount and value of the
collateral in order to maintain that ratio.
Commercial loan growth is important to the growth and profitability of our banking
franchise because commercial loan borrowers typically establish noninterest-bearing
(demand) and interest-bearing transaction deposit accounts and banking services
relationships with us. Those deposit accounts help us to reduce our overall
cost of funds and those banking services relationships provide us with a source
of non-interest income.
Commercial Real Estate Loans
The majority of our commercial real estate loans are secured by first trust
deeds on nonresidential real property. Loans secured by nonresidential real
estate often involve loan balances to single borrowers or groups of related
borrowers. Payments on these loans depend to a large degree on the rental income
stream from the properties and the global cash flows of the borrowers, which
are generated from a wide variety of businesses and industries. As a result,
repayment of these loans can be affected adversely by changes in the economy
in general or by the real estate market more specifically. Accordingly, the
nature of this type of loan makes it more difficult to monitor and evaluate.
Consequently, we typically require personal guarantees from the owners of the
businesses to which we make such loans.
Business Banking Services
We offer an array of banking and financial services designed to support the
needs of our business banking clients. Those services include:
Our online business banking portal allows our clients to conduct online transactions
and access account information; features include the ability to:
View account balances and activity, including statements
Transfer funds between accounts
Access wires, ACH and bill pay capabilities
View check images
Setup account alerts
Prepare customizable reports and dashboards views
Download activity into Intuit QuickBooks and Quicken
Our mobile banking platform allows our clients to conduct transactions and access
account information from their mobile device; features include the ability to:
View available balances, transactions and transaction details
Create one time balance transfers
Create bill payments for existing payees
Schedule future dated bill payments
Cancel scheduled bill payments
View recent payments
Approve wires, ACH, and balance transfer transactions
Deposit checks
Find bank locations
Collection services such as remote deposit capture services (PMB xPress Deposit),
remittance payments (Lockbox), and incoming ACH & wire reporting and notification.
Payable services such as checks, wire transfer and ACH origination, business
bill pay service, and business credit cards. We also provide courier and onsite
vault services for those clients with cash needs.
Fraud prevention services such as Positive Pay, ACH Positive Pay, and transactional
alerts.