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www.bankerandtradesman.com
WEEK OF MONDAY, NOVEMBER 13, 2017
financial
services
and
real
estate
weekly
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massachusetts
A Publication of The Warren Group HIGHER ED, HIGHER USES RECESSION PREDICTION
Campuses In Flux Colleges Seek To Maximize Real Estate Holdings
Like The Economic Recovery, C&I Lending Has Been Hard To Gauge Market Continues To Show Mixed Results In Massachusetts BY BRAM BERKOWITZ | BANKER & TRADESMAN STAFF
T
rying to pinpoint the next recession, or how much more the economy can grow, has left many economists and experts baffled, primarily because the recovery since the recession has been filled with many mysteries. Perhaps nowhere is this confusion more evident than in the commercial and industrial loan market, which many believe to be an indicator of when a recession will begin. In Massachusetts, C&I loan growth at the 10 largest community banks by assets, excluding State Street, has been mixed over the last few years. Some have seen a year of decline followed by a year of growth, and vice versa. Others have seen very little growth, if any at all, and only a few community banks have shown solid growth. “Like much in the recovery, a lot of things have been counterintuitive,” Christopher Geehern, executive vice president of marketing and communications at the Associated Industries of Massachusetts, told Banker & Tradesman. “Spending by businesses and business activity should continue to increase both toward the end of this year and into next year.” Geehern points to AIM’s monthly business confidence index, which surveys companies across Massachusetts asking questions about current and prospective business conditions in the state and nation, as well as for respondents’ own operations.
C&I LOAN VOLUME
9/30/15
9/30/16
9/30/17
EASTERN BANK
$1.19 BILLION
$1.32 BILLION
$1.45 BILLION
YEAR-OVER-YEAR YEAR-OVER-YEAR DIFFERENCE, DIFFERENCE, 2015-2016 2016-2017
$130 MILLION
$130 MILLION
O
BY STEVE ADAMS BANKER & TRADESMAN STAFF
pportunities to acquire nearly 6 acres in Harvard Square and to redevelop Simmons College’s campus in the Fenway are setting off a spirited competition among developers and potential future institutional users. More than 20 groups have toured the Episcopal Divinity School’s Brattle Street campus in Cambridge, where a sale would resolve 10 years of uncertainty about the property’s future. And Simmons College is narrowing a list of proposals from developers to reshape its residential and academic campuses in the Fenway, with the goal of building a new science building and modernizing its aging dorms. While higher education institutions usually take a deliberative approach to their real estate decisions, Greater Boston’s spiraling property values are giving colleges more incentive than ever to extract profits. “There’s not a school in the city that isn’t always thinking about how they can optimize their real estate holdings, usually Continued on Page 9
BERKSHIRE $1.065 BILLION BANK
$1.01 BILLION
1.25 BILLION
-$55 MILLION
$240 MILLION
ROCKLAND TRUST
$862 MILLION
$857 MILLION
$858 MILLION
-$5 MILLION
$1 MILLION
BOSTON PRIVATE
$1.04 BILLION
$1.07 BILLION
$994 MILLION
$30 MILLION
-$76 MILLION
EBSB
$120 MILLION
$501 MILLION
$561 MILLION
$381 MILLION
$60 MILLION
SALEM FIVE
$371 MILLION
$406 MILLION
$481 MILLION
$35 MILLION
$75 MILLION
Report: Technology Will Change, Improve Residential Real Estate
$336 MIDDLESEX MILLION
$340 MILLION
$350 MILLION
$4 MILLION
$10 MILLION
Experts Say The Trend Is For Smarter, Healthier Homes
$378 MILLION
$550 MILLION
$702 MILLION
$172 MILLION
$152 MILLION
$684 BROOKLINE MILLION
$764 MILLION
$842 MILLION
$80 MILLION
$78 MILLION
HEALTHIER HOMES
CENTURY BANK
BY JIM MORRISON BANKER & TRADESMAN STAFF
A
Points ����������������������������������������������������������������������� 4
In Person ������������������������������������������������������������������ 7
2017 MAR Awards �������������������������������������������������� 10
By The Numbers ������������������������������������������������������� 6
Commercial & Industrial ������������������������������������������ 9
Classified Sections ������������������������������������������������� 11
report released last week by the MIT Center for Real Estate said tech-driven changes that are beginning to appear in real estate will soon be ubiquitous. It predicts homes won’t look drastically different in 30 years, but they will be operating very differently. The biggest changes will likely be demographics, said Professor Albert Saiz, director of the MIT Center for Real Estate and co-author of the report. Population growth in red states is going to outpace growth in blue states because of the availability of
Residential ��������������������������������������������������������������� 8
Banking & Lending ������������������������������������������������� 10
Records Section ������������������������������������������������������ B1
Continued on Page 8
Continued on Page 10
BANK
Source: Earnings Reports and FFIEC Call Reports
CONTENTS