Print
E-mail
Comment
Rate
Local bankers report credit not a problem
 |
| The national economy may be a little cool, but construction in the Rockport-Fulton area continues, even if at a little slower pace. Local bank officials said credit is still available, but, as has always been the case at the local level, one actually has to be credit worthy. Photos by MIKE PROBST |
By MIKE PROBST, Editor & Publisher
The Dow Jones Industrial Average, as of the final bell Thursday on Wall Street, has dropped 18 percent since the $700 billion-plus federal bailout was approved, and is below 9,000 for the first time in five years, but the leaders of several financial institutions with offices in Rockport-Fulton are saying the overall economy in Texas is faring better than the rest of the country, and local banks are in strong financial positions.
Many individual investors in the stock market have suffered losses in the current economic climate. Some have lost more than others. Retirees, and those nearing retirement, have reportedly been hit the hardest.
“Business is as usual for customers of Charter Bank,” said Jack Wright, senior vice president of the bank's Rockport location. “We have not changed anything we do or cut back in any way. We have money to lend for any worthwhile project or need whether it be for businesses or individuals. We did not get involved in sub-prime mortgages or any other risky programs. Our investment portfolio is limited to high-grade tax free municipal bonds - No Freddie Mac or Fannie Mae stock. I think you will find that to be the case with all local banks.
“Texas may not be immune to economic issues, but we will fare much better than most. Frankly, Hurricane Ike did more to impact the condition of Texas businesses and consumers than the credit markets. But, that will improve over the short term.”
Wright said the national media is doing much banging of the drum regarding the credit crisis.
“Banks are supposedly hanging onto cash because they might need it later. That makes no sense. Banks only make money by lending it. It is of no value sitting idle in the vault,” said Wright.
He added banks do have some restrictions on the amount of loans they can make and hold in certain categories such as commercial real estate, home construction loans or single family mortgages.
“If a bank could not sell off loans into the secondary market once they reached a certain cap, then they would be restricted in that category until the loans paid down or they raised additional capital,” said Wright. “But it is a real national media stretch to say it affects consumers trying to get car loans, home improvement loans or businesses who need seasonal inventory loans and the like. At Charter Bank we keep all the loans we make and do not rely on a secondary market to make room for more.
“Aransas County residents can rest assured that even if there is a national credit crisis (and I don't believe that is the case) there isn't one locally.”
IBC Rockport Executive Vice President and Branch Manager Don Hanks offered similar thoughts about the local economic picture.
“All local banks are very healthy,” said Hanks. “The loan demand may have softened in some areas, but deposits should be increasing, especially since deposit protection under the FDIC has been increased to $250,000.
“I still see the local economy as being relatively stable.”
He said the current global economic situation is due to companies which held large investments backed by sub-prime mortgages.
Local contractor Richard Dias said he may not be the best builder to talk to about the current economy and how it affects his business.
“I've never been busier,” said Dias.
Local government entities' funds are all in secure accounts.
Half of the City of Rockport's money is locked in at 2.77 percent through January 2009.
“We're alright as long as the federal government remains solvent,” said County Judge Burt Mills.
John P. Jackson, senior vice president of the local office of Morgan Stanley, and lifelong resident of Rockport, said, “Those of us who have been through a hurricane know what it's like to get pounded by the wind and water and what it is to experience fear and have self doubts about the outcome. That is where I'm sure many of you are right now.
“Some of you may even be starting to believe what is being said on television. This is normal and to be expected, especially when that's all you hear. But there is one thing about hurricanes that is akin to this financial storm; it will end.”
He said some investors visualize their investment portfolio like the sand in an hourglass, and that eventually it will all be gone.
“Fortunately, that is not the way it works if you have a well-diversified portfolio of quality securities. But even the quality companies are being severely impacted by panic selling and totally irrational behavior,” said Jackson. “We are going through a cleansing and purging in our credit markets that began with the housing crisis and the free flowing money and government encouragement for home ownership which resulted in an overbuilt supply of homes. This purging, unfortunately, is needed to set the stage for recuperation, restoration and recovery.
“It is painful to watch and experience, but my advice is to hunker down if you can. In this process we will be laying the foundation for the next phase of growth and expansion in our economy and the markets. There are hundreds of good quality companies that are being thrown out with the bath water in this purging, and as soon as sanity returns and confidence is restored, the smart money will come back to the market.”
Rockport-Fulton Area Chamber of Commerce President/CEO Diane Probst said there are some good local economic signs.
“I have visited with hotel owner/managers in Rockport-Fulton and they tell me their October bookings are up to par with last year,” said Probst. “They feel the economy is coming back. September was just horrible for everyone with the market scare, as well as the threat of Hurricane Ike. We are hearing from different rental companies that Winter Texans who would normally stay on the upper Texas coast are making reservations here for this winter.
“We are feeling the buzz back in the economy with Seafair this weekend. We have over 50 contestants for the Just Desserts Contest, many competitors in the gumbo cook-off, and arts and crafts, boat and market vendor areas are full. This seems, each year, to be an indication that the attendance will be on target with our goals.”
She said the Chamber has been aggressive in its promotion for this weekend's Seafair in another move to give the local economy a shot in the arm, as well as a way to keep the Rockport-Fulton name in front of the public.
Many individual investors in the stock market have suffered losses in the current economic climate. Some have lost more than others. Retirees, and those nearing retirement, have reportedly been hit the hardest.
“Business is as usual for customers of Charter Bank,” said Jack Wright, senior vice president of the bank's Rockport location. “We have not changed anything we do or cut back in any way. We have money to lend for any worthwhile project or need whether it be for businesses or individuals. We did not get involved in sub-prime mortgages or any other risky programs. Our investment portfolio is limited to high-grade tax free municipal bonds - No Freddie Mac or Fannie Mae stock. I think you will find that to be the case with all local banks.
“Texas may not be immune to economic issues, but we will fare much better than most. Frankly, Hurricane Ike did more to impact the condition of Texas businesses and consumers than the credit markets. But, that will improve over the short term.”
Wright said the national media is doing much banging of the drum regarding the credit crisis.
“Banks are supposedly hanging onto cash because they might need it later. That makes no sense. Banks only make money by lending it. It is of no value sitting idle in the vault,” said Wright.
He added banks do have some restrictions on the amount of loans they can make and hold in certain categories such as commercial real estate, home construction loans or single family mortgages.
“If a bank could not sell off loans into the secondary market once they reached a certain cap, then they would be restricted in that category until the loans paid down or they raised additional capital,” said Wright. “But it is a real national media stretch to say it affects consumers trying to get car loans, home improvement loans or businesses who need seasonal inventory loans and the like. At Charter Bank we keep all the loans we make and do not rely on a secondary market to make room for more.
“Aransas County residents can rest assured that even if there is a national credit crisis (and I don't believe that is the case) there isn't one locally.”
IBC Rockport Executive Vice President and Branch Manager Don Hanks offered similar thoughts about the local economic picture.
“All local banks are very healthy,” said Hanks. “The loan demand may have softened in some areas, but deposits should be increasing, especially since deposit protection under the FDIC has been increased to $250,000.
“I still see the local economy as being relatively stable.”
He said the current global economic situation is due to companies which held large investments backed by sub-prime mortgages.
Local contractor Richard Dias said he may not be the best builder to talk to about the current economy and how it affects his business.
“I've never been busier,” said Dias.
Local government entities' funds are all in secure accounts.
Half of the City of Rockport's money is locked in at 2.77 percent through January 2009.
“We're alright as long as the federal government remains solvent,” said County Judge Burt Mills.
John P. Jackson, senior vice president of the local office of Morgan Stanley, and lifelong resident of Rockport, said, “Those of us who have been through a hurricane know what it's like to get pounded by the wind and water and what it is to experience fear and have self doubts about the outcome. That is where I'm sure many of you are right now.
“Some of you may even be starting to believe what is being said on television. This is normal and to be expected, especially when that's all you hear. But there is one thing about hurricanes that is akin to this financial storm; it will end.”
He said some investors visualize their investment portfolio like the sand in an hourglass, and that eventually it will all be gone.
“Fortunately, that is not the way it works if you have a well-diversified portfolio of quality securities. But even the quality companies are being severely impacted by panic selling and totally irrational behavior,” said Jackson. “We are going through a cleansing and purging in our credit markets that began with the housing crisis and the free flowing money and government encouragement for home ownership which resulted in an overbuilt supply of homes. This purging, unfortunately, is needed to set the stage for recuperation, restoration and recovery.
“It is painful to watch and experience, but my advice is to hunker down if you can. In this process we will be laying the foundation for the next phase of growth and expansion in our economy and the markets. There are hundreds of good quality companies that are being thrown out with the bath water in this purging, and as soon as sanity returns and confidence is restored, the smart money will come back to the market.”
Rockport-Fulton Area Chamber of Commerce President/CEO Diane Probst said there are some good local economic signs.
“I have visited with hotel owner/managers in Rockport-Fulton and they tell me their October bookings are up to par with last year,” said Probst. “They feel the economy is coming back. September was just horrible for everyone with the market scare, as well as the threat of Hurricane Ike. We are hearing from different rental companies that Winter Texans who would normally stay on the upper Texas coast are making reservations here for this winter.
“We are feeling the buzz back in the economy with Seafair this weekend. We have over 50 contestants for the Just Desserts Contest, many competitors in the gumbo cook-off, and arts and crafts, boat and market vendor areas are full. This seems, each year, to be an indication that the attendance will be on target with our goals.”
She said the Chamber has been aggressive in its promotion for this weekend's Seafair in another move to give the local economy a shot in the arm, as well as a way to keep the Rockport-Fulton name in front of the public.
 |
||
| Lease consolidation rejected on split vote |
Article Rating
Reader Comments
The following are comments from the readers. In no way do they represent the view of rockportpilot.com.
Submit a Comment
We encourage your feedback and dialog, all comments will be reviewed by our Web staff before appearing on the Web site.
cheri palmer wrote on Mar 15, 2009 10:38 PM: