Friday, October 4, 2013

NewDominion Bank has $50 million burning a hole in its pocket

NewDominion Bank CEO John Hipp sent out a note this morning predicting where he thinks interest rates will go over the next two years -- and it's not very far. He doesn't see the prime rate budging into May 2015, and the 10-year Treasury note won't get higher than 3.18.

But he also adds a pitch at the end. He says NewDominion is trying to lend $50 million in the next six months and encourages his connections to send business their way.

The Charlotte-based community bank has been heavily marketing its 36-hour commitment to potential loan customers. Basically, if a company sends in a completed loan package, NewDominion has three days to respond or they'll pay up $3,000 toward closing costs.

The bank's been much more aggressive over the past few months in lending, since completing a $10 million capital raise that took a great deal of pressure off its finances.

"If you or your friends need any funding, please call me and I will personally be involved and see the process is very quick," Hipp writes. "No one in town can respond quicker than we can."