Pinnacle, Avenue and CapStar lead Nashville banks in business lending
While the total amount of commercial and industrial loans throughout Tennessee has declined nearly 18 percent since peaking in 2008, Nashville-based banks collectively have been boosting their C&I loan books.
Since the recession officially began in the last quarter of 2007, the more than 30 banks based in the Nashville metro region have increased loans made to businesses from $1.5 billion in December 2007 to $2.7 billion as of March 2014, according to data from SNL Financial and the Federal Deposit Insurance Corp.
That’s an increase of around 80 percent among local lenders. The FDIC does not track all loans within metro areas (so it’s tough to pinpoint the lending activity from all the out-of-state banks like SunTrust or Fifth Third in Nashville).
Yet most lenders say the pie of business loans isn’t getting significantly larger in Nashville (certainly not 80 percent bigger). In other words, Nashville banks are chipping into the lending market, and perhaps taking away business from regional players in a meaningful way.
Much of the increase locally can be attributed to the growth at Pinnacle Bank and the emergence of two new players in the Nashville market during the past several years – Avenue Bank and CapStar Bank. The Nashville Business Journal has highlighted these three banks before.