News You Can Take to the Bank

Western Community Bank was recently invited to participate in a roundtable discussion sponsored by the good folks at Bennett Communications and Utah Valley Business Quarterly. Other Utah County institutions including Far West Bank, Bank of American Fork, Zions Bank, AmBank, and Family First Federal Credit Union also participated. The entire discussion can be found in the Summer 2009 Utah Valley BusinessQ magazine. Here are some highlights from comments made by WCB Executive Vice President, Ed Sanches:

Jeanette Bennett, BusinessQ: How would you describe the current banking environment in Utah Valley?

Ed Sanches, Western Community Bank: The challenges we are facing are unprecedented. But this has brought out more commitment from bankers. There is the old joke about “bankers’ hours,” but the lights are on late in managers’ offices. This is directly related to the commitment bankers now have, not only to their clients, but also to the community they are serving. Bankers are pulling together.

Bennett: The perception exists that it is difficult to borrow money right now. Is that true?

Sanches: No bank right now or finance institution want to bring on new loans that are going to be trouble for them. No bank really ever has. What caused the recession wasn’t commercial banks like ours. In reality, it was the mortgage and investment industry that said everyone deserves a home, no money down. Consumers got in their mind that all banks should offer that. Some banks did get sucked into that and now they are feeling the ramifications. For the majority of Utah Valley banks, it is business as usual for qualified borrowers.

Bennett: What are some examples of good news in our community?

Sanches: Short- and long-term rates are at all-time lows. For those who are qualified, short-term rates are very low. Mortgage rates are very low…Banks in Utah County are, for the most part, strong, well-capitalized and actively looking for new clients. It really is refreshing. There are less people coming in to borrow money, but those who are coming in have the capability to repay what they are asking for…We are in business to lend money.