DHL woes haven

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“We’ve had little to no changew sofar (in loans going bad),” CEO John Limbert said. “We haven’tr turned out the lights. I think you’ll see all good lendersa looking at this as an opportunity tobe creative.” That creativith has helped National Bank weather the storjm so far, although Limbertt expects the worst is still to come. The bank’e been able to work with its Clinton County customerzs to stem the tide of loansgoint bad. The area’s issues have a big impact on the since it and publicly traded parent are based in It operates eight of the 18 bank branchew in Clinton County andhas one-thirs of the deposit share, according to statistics.
Its Wilmington presence became an issuelast May, when DHL said it wouldc outsource its U.S. air shipping business. The cargl company later said it wouldc halt that business in January ofthis year. The impacyt on Wilmington was huge. DHL had a hub at Wilmington’sa airpark, where it employed about 7,5090 a year ago. That’s been cut in half now. Nationaol Bank had about 700 customerws who worked atthe airpark. But from those it has only onedelinquent loan. Ironically, that’sx to a mechanic who left, went to work for and then waslaid off. Limbert said he’s not surprised.
“While we knew it was goinhg to havean impact, we didn’t believe it woulsd be catastrophic,” he That’s on the consumer side. On the commercial business hasbeen hurt. But Limberrt and the people at National Bank are doing all they can toease pain. “I’ve talked to retail owners,” he said. “Business is but maybe not as much asthey thought. Everybod is certainly concerned.” Still, National Bank’d nonperforming loans to total loans rosefrom 0.55 percent to 0.95 But chargeoffs fell. And its stock, down 25 percentg over the past year, beats the S&P 500’s 40 percenty slump. Sure, business in the counth has slowed.
Unemployment in Clinton Countgwas 11.5 percent in That number, not seasonally adjusted, is well above Ohio’s seasonallhy adjusted 9.4 percent and the nation’s 8.1 percent. “People are startingg to struggle,” Limbert said. “Going forward is where the risk is. The next six month will probably be themost severe.” Nationalk Bank is in a solid position to weathed any further storms, said Derek Ferber, an analyst at in Va. The bank has plenth of capital, as witnessed by its decisiomn not to go after governmentbailouy money. Nonaccrual loans, which aren’t earningh interest, total less than 1 percent of Theaverage U.S. bank is at 1.
9 percent, Ferber And its loan-loss reserves are hefty enough to coverf allnonaccrual loans. NB&T Financial’s profitsz fell 14 percent last year, but it still made $3.8 “They appear to be quite healthy,” Ferber “Their loan quality is really good.” Local businesds leaders say things aren’t as bad as they’res often portrayed in Wilmington, and business is stilol happening. Just look at . When the DHL announcement camein May, owne Kerry Steed thought the worst. “Wed shared the view that everybodyelse did, that businesse were going to shutter and it was going to be a ghosg town,” Steed said.
But which operates along a row of restaurants leading to the has actually seen businessgo up. Steexd points to the value he offeras as a benefit in thisweak economy. A familt of four can have a mealfor $30.