Commercial loan portfolios across the region decline

Commercial and industrial lending — loans to businesses — were down significantly at Gulf Coast banks in the second quarter of 2021 relative to a year earlier.

One standout example: Only four of 22 community banks based in the region posted a gain in C&I loans in the second quarter, and one of those, Tampa-based Central Bank, was up a mere 1%. The other three to increase C&I loan portfolios, according to an analysis of Federal Deposit Insurance Corp. data, were Raymond James Bank (+11%), TCM Bank (+13%) and First National Bank of Pasco (+20%).

On the flip side, most banks in the region reported double-digit declines in C&I loans. Winter Haven-based South State Corp., formerly CenterState Bank, one of the largest banks based in the region, reported a 23% decline in C&I loans, the data shows. That’s down from $4.4 billion to $3.4 billion.

Community banks’ real estate lending, meanwhile, was mostly flat over the past year. Flagship Bank in Clearwater (+80%) and Gulfside Bank in Sarasota (+63%) were some bright spots. South State reported a 5% decline, and being substantially larger than most other banks in the region, that brought the entire group’s trend down.

Raymond James Bank and Central Bank were the only two banks that managed to grow both real estate and C&I lending portfolios. In contrast, all four banks that grew real estate lending by more than 20% (Flagship, Gulfside, Pilot Bank and First Home Bank) saw declines in commercial and industrial lending.

— Alexander Walsh