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surging inflation for those earning the paychecks. Liberopoulos said the shift toward digital
banking options is a good one, and even though many of his commercial clients have wanted to do business in person, they, too, also want to be able to access the same digital experience — with its speed, flexibility, and personalization — that consumer clients have.
“Innovation is always the key to growth and sustainability. To survive, you need to invest not only in talent, but in products and services,” he said, noting that there’s certainly a need for both online options and a bricks-and-mortar presence.
Back to the Street
Communities and nonprofits saw their needs soar during the pandemic, too, and that’s one area community banks and credit unions con- tinued to focus on in 2021. For example, over the summer, Country Bank — which has traditionally focused its giving on basic needs like food insecu- rity, homelessness, and healthcare — donated a total of $1 million to two regional food banks.
“To be a healthy community, residents in the community need to be in good health. Nutrition should be a right and not a privilege,” Scully said, noting that needs became more dire due to the pandemic, job losses, inflation, and an increase in addiction.
“If you have a heartbeat, you enjoy giving back, and it doesn’t have to be a certain size,” he said, turning the topic around as a challenge to others. “You may be able to donate only a dozen boxes
of pasta, but that’s a dozen more boxes of pasta
available for someone in need. What we like to do is partner with organizations and get their stories out there, so other people can jump on the band- wagon and be a part of it too.”
That speaks to Liberty’s priorities as well, Libe- ropoulos said. “We’re very in tune with our com- munity and helping out the non-for-profits; we’ve done a lot of good things so far and continue to do that. That’s very important to us. We live, work, and lend in this area, and we want to support this area as well.”
Welch said Freedom has not only supported nonprofits, but gotten others involved by choos- ing a charity each month — A Bed for Every Child, the Walk to End Alzheimer’s, and Unify Against Bullying are just three recent examples — and involving members in the giving.
“We have been advertising that on our web- site and trying to get donations not only from the credit union, but from members who find the causes worthwhile and have the ability to donate,” he explained.
As for member business in the coming year, Welch knows inflation remains a drain on savings and assumes interest rates will rise at some point in an attempt to slow it down. “That could have an impact on people being able to borrow. Stu- dent-loan payments are starting up again, too, so people will have $300 or $400 coming out of their pocket for that in addition to increased prices and increased rates.”
These are problems that affect businesses, too, Scully said.
“With inflation and the cost of goods going up, and so many businesses looking at inflated util- ity expenses, now, with the shortage of qualified, available help, payroll tends to go up as well,” he
noted. “Clearly there are a lot of challenges for folks in the business arena — which is why you really want to encourage people to shop local and keep Main Street storefronts occupied.”
Many businesses struggling with higher costs are still looking to borrow and invest, he added. While the PPP loans of 2020 were about keeping the lights on and keeping employees paid, for more traditional loans going forward, borrowers need to show a continuation of revenue streams without the PPP revenue to bolster them.
“For the most part, that’s exactly what hap- pened. Businesses have returned to a good level,” Scully said. “Certainly, some are still taking their hits — hospitality was one of the hardest-hit, whether it’s food services, hotels, or entertain- ment venues. They had tough restrictions put on them last year. Those restrictions were lifted for the most part, but now they can’t rehire enough workers.”
These are all factors that might cause individu- als and businesses to pull back from borrowing, he added.
“What will the impact of inflation be? When will interest rates start to rise a little? The big piece that looms for me is employment: where is the workforce going to be? Will there be enough employable people for all of the jobs? We’ve heard about this Great Resignation. It’s real.”
Still, like other financial leaders we’ve spoken with recently, Scully remains optimistic. “All indi- cations suggest 2022 should be an OK year from a business perspective.” u
Joseph Bednar can be reached at [email protected]
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38 DECEMBER 22, 2021
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