Skip to Content
An image of two consecutive mountains illustrates the Quarterly commercial lending outlook.

The Banking Brief: Lending is Strong, but Planning for Tomorrow is Paramount
by Zach Fee December 17, 2019
Business

For nearly a decade, the economy has been in growth mode, interest rates have benefited businesses and unemployment numbers remain at all-time lows. Zach Fee, president of regional banking for UMB Bank, talks about what this means for commercial lending and what we can expect in the months ahead.

Talent is tight. Money is flowing. And the economy continues to grow. Not surprising news to anyone out there. But the question that everyone keeps asking is, “How long can it last?” Spoiler alert: I don’t have the answer. What I can tell you is what we have experienced during this time as commercial lenders and how we have been helping thousands of business owners plan for what lies ahead.

Lending is Strong

At UMB Bank, our average commercial and industrial (C&I) loan balances increased 15.4% from $4.7 billion to $5.4 billion for the 12 months ending Sept. 30, 2019. U.S. wide, commercial and industrial loans have grown from $2.2 trillion to $2.3 trillion during the same time, an increase of 5.9%, according to the latest numbers from The Federal Reserve.

In short, this loan growth means businesses are investing in capital expenditures, expanding their real estate footprint and hiring talent. And it’s happening across various industries. Sectors such as commercial real estate, manufacturing, construction, energy, healthcare and technology are a few of the strongest-growing industries in the U.S. The growth in the overall economy is mirrored by the client activity we have seen here at UMB.

Planning is Vital

The past 10 years have witnessed an influx of mergers and acquisitions, excess cash flow and business growth unlike anything we’ve seen before. But as we all know, history has a habit of repeating itself. Does this mean we are up against a looming recession? Not necessarily. But if history has taught us anything, it’s that we need to be financially, emotionally and mentally prepared for what comes next – both personally and professionally.

For us, this means working with clients to ensure they are financially stable for the foreseeable future. We are sitting down with clients to review balance sheets, optimize cash flow and payment options, manage their personal finances with our private wealth management group, and ensure their business is ready for the next generation of leadership, whether that be within their own family or through an outside buyer.

Planning takes time. It takes work. And it takes dedication. The future is bright, but the preparation is tedious. I encourage every business owner to sit down with your lender and get ready for the next stage of your business’s growth. It will pay dividends in the years to come.

I also invite you to read some recent articles featuring our experts at UMB and learn more about our commercial lending perspective as well as some exciting growth we’ve seen during the past year.

Read more

Interested in learning more about UMB’s commercial banking solutions? Check out our Commercial Resource Center.graphic line break

When you click links marked with the “‡” symbol, you will leave UMB’s website and go to websites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other websites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.

Tags In
economy media coverage
355 / 473
Zach Fee

Zach Fee

Zachary (Zach) Fee joined UMB in 2002 and currently serves as president of regional banking. In this role, he oversees strategic growth across UMB’s banking footprint: Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska, Arizona and Texas.

The content on these pages is for informational use and is not intended to be an offer, recommendation or advice by us regarding any banking or investment product. Please contact UMB directly to discuss any product.

Comments are moderated and generally will be posted if they relate to the specific topic discussed in the post on which they are made. For more information, please see our Comment Terms and Conditions. UMB is not responsible for and does not endorse any comments by blog visitors, or the content, advertising, products, advice, opinions, recommendations or other materials on or available directly or via hyperlinks from this or any other page on WordPress or any website owned or operated by a third party. UMB is not responsible for the privacy, security, dispute resolution or terms of use policies at this site or any other third party site that may be linked to from this page or from other WordPress.com pages. Using any third party sites and materials is at your own risk

UMB is not responsible for and does not endorse any comments, content, advertising, products, advice, opinions, recommendations or other materials on or available directly or via hyperlinks from Facebook, Twitter or any third-party Web site. Your use of this site is subject to acceptance of our Terms and Conditions. Facebook is a registered trademark of Facebook, Inc. The Twitter name is a trademark of Twitter, Inc.
Bank deposit products provided by UMB Bank n.a., Member FDIC. Equal Housing Lender equal housing lender
Careers Contact Us Blog About Us Site Map Privacy Notice Legal Terms and Conditions
Copyright 2020 UMB Financial Corporation “UMB” – Reg. U.S. Pat.& Tm. Off.
When you click links marked with the “‡” symbol, you will leave UMB’s Web site and go to Web sites that are not controlled by or affiliated with UMB. We have provided these links for your convenience. However, we do not endorse or guarantee any products or services you may view on other sites. Other Web sites may not follow the same privacy policies and security procedures that UMB does, so please review their policies and procedures carefully.