Credit Risk and Post-Pandemic Lending

By: Sharon J. Lorman
Jeffrey P. Marsico
Matthew P. Prosseda

Guest: Ronda McDowell, EVP and Chief Credit Officer, Sandy Spring Bank

Podcast Show Notes:

Our This Month In Banking (TMIB) podcast features discussion with colleagues and other industry thought leaders on interesting banking news that happened this month. TMIB will be available on the last Wednesday of every month here, and on Apple and Droid podcast apps for your listening enjoyment. Join us on your commute, at your desk or at home.

Topic: Credit Risk and Post-Pandemic Lending

Insights from Ronda McDowell, EVP and Chief Credit Officer, Sandy Spring Bank

What will be the effects of the COVID-19 crisis on commercial lending post the pandemic? Thousands of small businesses have closed, countless employees will remain working from home, and many struggling business owners have deferred loan payments. The overall CRE delinquency rate for banks increased to 1.00% on September 30 from 0.68% at the end of last year, according to Federal Reserve data. As commercial and multifamily real estate debt matures in 2021, lenders and borrowers will have to face property valuations in a post-pandemic world. A large percentage of newly distressed assets are tied to the hotel and retail industries as travel is restricted and retail developers are challenged with consumers’ preference for digital commerce. Will there be a surge of foreclosures when government support ends? Our guest, Ronda McDowell, EVP and Chief Credit Officer of Sandy Spring Bank, shares her insights on the current credit picture and how community banks can best prepare for commercial credit quality post pandemic. Listen and enjoy!

Ronda McDowell Biography

EVP and Chief Credit Officer, Sandy Spring Bank

Ronda M. McDowell has been the Chief Credit Officer and Executive Vice President of Sandy Spring Bank, Inc., the subsidiary of Sandy Spring Bancorp, Inc. since November 2013. Ms. McDowell served as Senior Vice President of Loan Administration and Retail Senior Credit Officer at Sandy Spring Bancorp and Sandy Spring Bank until November 2013. She has experience in the financial services industry and has served in a variety of capacities and leadership roles within the Credit and Lending Administration group. She has successfully integrated team members and converted loan systems in four bank acquisitions and established an Asset Based Lending Administration team to provide portfolio oversight of asset-based lines of credit. She is a graduate of the Stonier Graduate School of Banking and several American Management Association trainings. Ms. McDowell is also an active Board Member of the Maryland Title Center.

This podcast relates to The Kafafian Group’s Strategic Management service. Click here for more information. 

Watch for episode 63 of This Month in Banking to be released on Wednesday, March 31st, 2021, and a new episode on the last Wednesday of every month.  

Thank you for listening!

Relevant Links:
American Banker. (September 23, 2020). CRE Concerns Intensify as Stimulus Programs Expire

S&P Global Market Intelligence, Yeattes, T., Hudgins, C. (2020, December 10). A Truly Bleak Black Friday for Brick and Mortar Retail Locations

Jeff4Banks.com, Bank Loan Leading Indicators (2017, August 12), https://www.jeff4banks.com/2017/08/bank-loan-leading-indicators.html
Jeff For Banks: Bank Loan Leading Indicators