Category: Uncategorized

Lock in low rates with the Assumable Rate Conversion (ARC) loan program

What if you could lock in today’s rates for as long as 20 years? 

ARC LendingIf you own, want to purchase, or want to refinance a commercial building, you don’t have to deal with market rate fluctuations! With interest rates slowly beginning to come off their lows following the onset of COVID-19, now is a great time to lock in a long-term fixed interest rate to hedge against future rate increases. While traditional commercial real estate loans only allow for a 5-year fixed rate, through our long-term fixed rate program, we can potentially lock in your interest rate for up to 20 years!

This program is available for owner and non-owner occupied properties and a wide range of property types, including office, industrial, retail, medical, hospitality, and multi-family, among others. There are many additional perks to the program, as well.

Locking in your rate and avoiding rate changes allows you to maximize your return on investment. If you decide to sell, this product is assumable, meaning it can transfer to the new owner (pending credit approval), so they can keep the rate you locked in. This could be a huge upside to a buyer looking at increased rates in the future and could even make your property worth more because of this option. Additionally, this product is transferable; if you decide to sell, you have the option of simply transferring the loan balance to a new property you already own or plan to acquire.

Another benefit is the prepayment premium. If interest rates rise and you decide to pay the loan off, you would actually receive a prepayment premium. On the flip side, if interest rates were to decrease, you could be subject to a prepayment penalty. While this is a risk, we feel given today’s market conditions and historically low rates, this risk is minimal.

For further information on conditions, terms, and loan types, please contact your Northwest Bank commercial loan officer. Corey or Joe would be happy to talk to you about locking in your low fixed rate today! 

Joe Donahue

Joe Donahue

Vice President ,
Commercial Loan Officer

Corey Martin

Corey Martin

Vice President ,
Commercial Loan Officer

Brian Duffy Joins Northwest Bank Board

Brian DuffyJoe Slavens, president & CEO, Northwest Bank & Trust Company announced that Brian Duffy was recently elected to the bank’s board of directors. Duffy is the president and CEO of Per Mar Security Services.

“I’m very happy to have Brian join our board,” stated Slavens.  “He leads a third-generation family business that, like us, delivers services through relationship driven experts.  We share the same values and look forward to leveraging his insights for the benefit of both our customers and team members.”

When asked about joining the board, Duffy responded, “I have always had a lot of respect for Northwest Bank and the Slavens family, and I am honored to have the opportunity to serve on the board of an essential organization in our community.”

Brian Duffy is an active member of numerous security associations locally and nationally. He serves on the board for NetOne and Junior Achievement of the Heartland. In addition, he is active in the Notre Dame Club of the Quad Cities. A native of Davenport, Iowa, Brian Duffy graduated from University of Notre Dame with a Bachelor of Arts in Economics.

About Northwest Bank & Trust Company

Northwest Bank & Trust Company is a family and employee owned community bank that has been part of the Quad Cities for over 75 years. The bank offers a full line of banking products and services for both individuals and businesses. We believe in a synergistic approach to meeting the needs of our customers, so in addition, we have an Investment Management Group that has been assisting clients with trust, investment, and estate planning for over 50 years and currently has over $375 million in assets under management. In 2019, Northwest Bank acquired our first accounting firm. Since that time, we have merged more firms to create Centennial Tax & Accounting, which resides on the 5th floor of the Northwest Bank NorthPark Tower. We also have a software company that develops, markets, and services financial operation software to banks and credit unions across the country.

Celebrating Community Banking Month

What makes community banking special? 

community banking monthIf the first word that comes to your mind when you think of community banking is “relationships,” you’ve identified the quintessential ingredient that Northwest Bank & Trust Company and community banks across the country take pride in. That ingredient has never been more apparent than over the past year. During the coronavirus pandemic, banks everywhere have reached out to their communities to communicate that they are open for business and ready to serve in a time of need. 

It is what we have always done at Northwest Bank & Trust Company, where our focuses exclusively remain on delivering the products and services our customers want, while our local roots and accountability ensure our interests remain tied to our Quad Cities neighbors.

At Northwest Bank, we work with our customers to help them realize their financial dreams, whether opening a business, purchasing a home, or planning for retirement. And we nurture our community by donating time and money to important causes and contributing tax dollars that help maintain local municipalities—all of which helps keep local neighborhoods viable and vibrant.

We work hard to stay attuned to the needs of this community and relevant to our customers by remaining on their corner and in their corner. This dedication to creating healthy, strong communities has helped the community banking industry flourish and maintained our well-earned reputation as true relationship lenders. 

Here are the facts:

  • Community banks are economic first responders, processing more than 57 percent or 2.8 million loans as part of the Small Business Administration’s Paycheck Protection Program, saving an estimated 33.7 million jobs.
  • Community banks outpace large banks in their average number of banks operating in both rural and urban markets by a 3:1 ratio.
  • Community banks are preferred small business lenders, with a 73 percent net satisfaction score, compared with 58 percent for large banks and 37 percent for online lenders.
  • Community banks have consistently demonstrated their safety and soundness with higher capital ratios and better loan quality than the largest financial institutions.
  • Community banks operate in areas abandoned by others—serving as the only physical banking presence in nearly one in three counties.
  • Community banks focus a relatively large share of their resources on low- and moderate-income tracts.

But it is not just about stats. When customers contact Northwest Bank, they are greeted by a talented team member who is attuned to their needs and empowered to act on their behalf.

And when our employees participate in annual donation drives for United Way or when Northwest Bank contributed over $80,000 in the past year to local organizations, we are working toward our goal to ensure economic prosperity for the community we call home. In the Paycheck Protection Program round one, we were the leading loan contributor in the QCA for our size, providing 6.7 times more loans to local businesses than any other bank or credit union in the area. That’s 6.7 more jobs protected, just another advantage of a community bank partner.

In an era where bigger is not always better, high-tech does not necessarily equate to high touch, and what we think of as “normal” is in flux, we at Northwest Bank & Trust Company pledge to never lose sight of the all-important “relationship” and the personalized service our customers expect. It has been integral to our success for almost 80 years and is how we will continue to build a legacy that endures.