Investors are starting to ask serious questions about the companies lending money to the post-peak energy and agriculture sectors, so it's natural that Barclays analyst Robert Wertheimer and his peers are being asked about Caterpillar Financial in addition to the Deere and CNH Industrial. But Wertheimer isn't concerned about the portfolio of West End-based Cat Financial, which is having to swallow some bitter medicine as its parent company retrenches. The lender, Wertheimer says, is growing market share and should benefit from its greater exposure to the construction sector. Read more of his thoughts here.
Third-quarter results from banks doing a lot of business in Middle Tennessee have thrown up a consistent message of good loan growth. Kentucky-based HopFed Bancorp, the $880 million parent of Heritage Bank USA, is eager to secure its share of the growing Nashville pie. From the company's Q3 report issued this morning:
Commenting on the third quarter results, John E. Peck, President and Chief Executive Officer, said, "The Company continues to find success in our Nashville loan production office. We have just hired our third commercial loan officer in that market and currently have an impressive pipeline of loan opportunities. At September 30, 2015, the Nashville loan production office currently has $13.0 million in outstanding loan balances, $7.7 million in unadvanced amounts on loans and $16.9 million in loan requests currently under review."
Officials with direct loan marketplace Lending Club say their platform is now available to residents of Tennessee. Along with a few other new states, San Francisco-based Lending Club now does business in 39 states. The company has facilitated more than $11 billion in loans since its launch in 2007.
The West End headquarters staff of Caterpillar Financial Services looks set to shrink in the coming months after the leaders of the lender's parent company said they plan to cut $1.5 billion in annual costs, a move that will include the laying off at least 4,000 in the next 14 months as well as the potential closure or consolidation of up to 20 factories.
In a statement Thursday morning, Caterpillar's top executives said several of their customer segments — think mining and energy companies — have cut back on spending, which has forced them to trim their 2015 sales forecast by $1 billion to $48 billion, with 2016 expected to bring more top-line shrinkage. A Bloomberg Intelligence analyst labeled Cat's cost-cutting plan as "basically writing down next year."
A Cat Financial spokesman said details about job cuts in specific divisions such as Cat Financial, which houses hundreds of people in a mid-rise building located on West End Avenue (see here courtesy of Google Maps) are not being disclosed but that "all cost reduction actions will be global in nature and across our sectors."
An Atlanta-based company that helps commercial real estate players raise various types of capital has hired a former MTSU basketball player to lead its new Nashville office.
Patterson Real Estate Advisory Group officials say Terry Hughes recently moved from Indianapolis, where he worked at national development group Milhaus. Before that, he worked at CBRE as an investment properties broker.
“Nashville’s growth is readily apparent today, but it is a market that Patterson has been active in more than five years — always with the idea of establishing a formal presence when then time was right, and more importantly, the person was right,” said Lance Patterson, founder of Patterson. “We believe Nashville is just getting warmed up and we’re very excited to have Terry join our team.”
Five-year-old Patterson has closed more than 100 deals worth more than $2 billion in project value.
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