A lot of time has passed since the 2008 financial crisis, and prospects are finally looking up for banks.
Thinking of the industry attitudes on a scale of 1 to 10, with one being horrified and 10 being giddy, bankers have gone from a 2 during the depths of the recession to a 7, said John Reed, a veteran local investment banker who last month shifted from David A. Noyes & Co. to City Securities Corp.
Much of that recovered optimism has taken place in the past couple of years, he said, noting that morale was noticeably more upbeat during a recent state bank convention in French Lick.
The great majority of bad loans are in rear-view mirrors, banks are running lean and efficiently, and the economy is improving, albeit slowly. The upshot is that demand for loans is starting to come back, credit committees are more willing to green-light deals, and banks can look forward to making more money.
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