commercial lending Posts

The Call for Effective Covenant Monitoring Has Never Been Louder

Posted on July 22, 2024 by Baker Hill

In the world of commercial lending, banks and borrowers are paying close attention to their financial covenants. And for good reason: covenants enforce minimum financial performance conditions on the borrower. These loan covenants are not a pre-decided set of principles...

Mitigating CRE Concentration Risk in 2024

Posted on July 15, 2024 by Baker Hill

According to a Federal Reserve Bank of St. Louis report , market sentiment about the CRE office sector declined sharply over the last two years, with the Bloomberg REIT office property index falling 52% from early 2022 through the third...

Why Now is a Perfect Time for a Credit Department Tune-Up

Posted on June 10, 2024 by Baker Hill

As bankers are keeping an eye on CRE lending challenges affecting both supply and demand for capital, demand from borrowers is well off the robust pace of lending that many banks saw in 2022. The good news is that...

Lending Policies & Processes that Mitigate Risk in Any Economy

Posted on May 10, 2024 by Baker Hill

Managing risk is a core component of banking, but the financial landscape today and over the last few years has been especially fraught with risks. Between ongoing competition for deposits, a struggling CRE space as office vacancies surge, and an...

Celebrating 40 Years of Dreaming

Posted on April 30, 2024 by Mitch Woods

Recently, Baker Hill took our clients to "a whole new world" with our annual client conference, Prosper. We even celebrated our 40th anniversary as a company during the event! It was more than an opportunity to discuss interest rates or...

How Will AI Change Lending?

Posted on February 28, 2024 by Baker Hill

The popularity of artificial intelligence (AI) has skyrocketed since the launch of tools like OpenAI’s conversational chatbot, ChatGPT, which accumulated more than one million users a mere week after going live. ChatGPT effectively brought AI into the mainstream and financial...