September 26, 2011

Making the Grade

You may have read how Moody’s downgraded Bank of America, Citigroup and Wells Fargo.  The New York Times reported that at the heart of the downgrading was a conclusion by Moody’s that next time there may not be a “too big to fail” institution.  Moody’s also recognized that B of A remains significantly exposed on its residential mortgage portfolio as well as loans already sold to investors.

Like Goldilocks, we view our size as “not too big” and “not to small.”  We’re $2.5 billion strong.  That makes us one of the largest community banks in metropolitan Washington.  Deposits continue to rise.  Capital is strong.  We’re actually making commercial real estate and business loans; we’ve grown our loan portfolio by 32% over the last year.

This is due to our understanding of the marketplace, decisions being made locally, customers having direct access to the decision-makers and our reputation for getting deals done.  As I told the American Banker in an interview published today, our nimbleness is just a major, major advantage for us.  We can turn around a loan in 24 hours if we need to. You’re not going to get that from the big banks.

On the mortgage side, we took a different approach than some of the big banks.  We built our Residential Lending operation from the ground up.  We didn’t purchase a company and inherit its problems.  We scrutinize each loan and underwrite it prudently.  And every loan we make is made by an EagleBank loan officer, not a third party originator. 

As a successful community bank with a high quality Residential Lending operation, mortgage investors seek us out to work directly with them.  That leads us to be able to offer highly competitive rates and a lot of different loan programs.  And our decision-making is local — right here.  Loans don’t go to Charlotte or Dayton or who knows where for underwriting.  With an EagleBank mortgage, it all happens right in our office.  And our track record for getting borrowers to closing is well known – and appreciated.

Interest rates are at historic lows.  Volume is way up in our Residential Lending division, as people refinance and yes, in the Washington market, buy homes.  If you’re purchasing a home or if you haven’t refinanced lately, you should check out our rates.  Call EagleBank Residential Lending at 301-738-7200 and we’ll put you in touch with one of our loan officers.