As consolidation continues to impact the banking industry, Middletown-based Liberty Bank has grown into the second-largest lender headquartered in Connecticut, with $7.4 billion in assets.
Leading Liberty Bank’s growth in recent years has been CEO David Glidden.
Under Glidden, Liberty Bank has expanded in Hartford, tripling its downtown office space at 100 Pearl St. to about 5,000 square feet. The move accommodates Liberty’s strategy to grow its Greater Hartford commercial lending portfolio up and down the I-91 corridor.
Glidden, earlier this year, shared his insights into the banking industry’s challenges and opportunities in 2024.
He said Liberty Bank experienced net growth in commercial and retail lending in 2023. But the bank is also witnessing lower overall demand.
It’s more expensive for most businesses to operate right now, he said. There’s less demand for their goods and services, they’re facing higher monthly payments and cash flows are being impacted.
“They’re also less likely to hire, expand or invest in capital equipment right now, all of which is weakening their appetite to borrow in this rate environment,” Glidden said.
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On the flip side, Glidden said, banks are protecting their capital and increasing their lending standards to minimize borrowing risk.
Commercial borrowers are also less likely to switch banks in a high-rate environment, he said.
“Therefore, this lower loan demand is intensifying competition in the industry, impacting pricing discipline and compelling banks to grow existing customer relationships to increase their loan portfolios and look for other ways to grow capital,” Glidden said.
Liberty Bank has been innovative in its growth efforts under Glidden. Last year, it launched a digital bank — called Owners Bank — that offers services and loans for small businesses. It now operates in eight states, including Connecticut, Rhode Island, Massachusetts, Pennsylvania, Florida, Georgia, North Carolina and South Carolina.
Glidden was named Liberty Bank’s CEO in March 2019, bringing with him over 30 years of industry experience. Most recently, he was TD Bank’s regional president for the northern New England and upstate New York region.