The most recent unofficial word from the organizers of the proposed Compass Community Bank, which is currently constructing its first office in Seaside, is that verbal approval of their application has been received from federal regulators, with formal written approval likely to follow soon – just not by press time.
So, I wonder, what will that do to the banking climate in Clatsop County?
In speaking with some of the banking powers-that-be in the county, the prevailing thought is that there is not more business or real estate lending to be had in the area. Instead, they conjecture that the addition of a new bank will simply make for a smaller piece of the lending pie for the currently existing banks.
Industry folks tell us that the deposit base here has grown at a steady rate over the last several years, however - an indication that the economic health of the area is on an upward swing. Our low unemployment rate mirrors that trend.
Consider also that the $8 to $10 million in capital that will be raised for Compass Community Bank’s coffers will be new money available for lending in the community. Also, the possible results of a more competitive lending environment are favorable rates and reduced fees, which may stimulate increased business and real estate investment.
Time will tell, but it just may be that banks and consumers will all be winners in the long run.