Mike Galeone, executive vice president of Columbia Bank, said that in recent months the bank-- formerly a local bank now owned by a Fulton Financial Corp., a Pennsylvania-based financial holding corporation-- has adjusted its practices to deal with the reality of the market place.

Bought by Fulton Financial, of Lancaster, Pa., in 2006, Columbia Bank is backed up by a $15 billion company and is not currently facing a liquidity crisis, Galeone said. Although the bank did not engage in the sub-prime lending that paved the way for the current crisis, Columbia is still working to maintain and gain new depositors to maintain its financial health, Galeone said. It does this through marketing campaigns and by creating accounts that encourage deposits, he said.

In light of the current banking and real estate crises, officials at Columbia Bank are looking to reduce lines of credit for second mortgages that could negatively impact the bank and adjust downward lines of credit for borrowers whose houses have depreciated in value, Galeone said.

"The value of properties has changed. It's becoming more focused toward what's a realistic evaluation today," Galeone said of the philosophy that guides the way the bank extends loans.

Additionally, when small-business owners come to the bank for a loan, Columbia Bank now requires that they move their checking and business accounts to the bank, Galeone said. The bank is also not providing loans to home-builders until they have secured a buyer, Galeone said.

"The market has changed, and we need to change with it," he said.

---

user comments (0)