Financial institutions are projecting solid loan growth and continued low interest rates for 2014, bank executives here say.
 Peter F. Stanton, chairman and CEO of Washington Trust Bank, says he expects that Spokane-based institution to see 7 percent to 8 percent total loan growth next year.
Meanwhile, Bill Before, chief financial officer and chief lending officer at Spokane Teachers Credit Union, says that institution is predicting commercial loans to grow 13 percent next year, and auto loans to grow 19 percent.
AmericanWest Bank marked a 10 percent loan growth this year and is expecting similar results for next year, says Chairman and CEO Scott Kisting.
With the financial sector crisis that contributed to the broader economic downturn, a significant amount of consolidation has taken place across the industry. That trend could continue, with banks closing some branches or opening fewer new branches, and also could mean more mergers and acquisitions. Possibly the most visible example of consolidation here is the acquisition of Spokane-based Sterling Financial Corp. by Umpqua Holdings Corp., of Portland.
“Across the industry as a whole, there continues to be a significant amount of consolidation,” says Ezra Eckhardt, president and COO of Sterling. “Sterling is a good example of that.”
Umpqua’s acquisition of Sterling is expected to close in the second quarter of next year, Eckhardt says.
Stanton says that Washington Trust isn’t closing any branches, and in fact plans to open a few more next year.
Before says STCU has been slowing down its pace on opening new branches, but opened two in Spokane this year. He also says the credit union will be revamping its online services next year.
Eckhardt predicts that Sterling will see strong growth in commercial and industrial loans next year as well.
Margins have been trending low in the last few years, something else bankers are expecting to continue next year.
“Margins have been trending down the last four to five years,” says Stanton. “They may narrow just a little bit more, but they’re getting pretty close to being as low as they’re going to get.”
“Everyone’s seeing some margin compression, so it can be difficult,” Kisting says. “But on the other side, people are starting to see the economy come back.”
Home mortgage refinance rates were at an all-time low in 2013, which is another trend that is predicted to continue next year.