Donald Sturm, owner of American National Bank and other businesses, has closely followed the ups and downs mostly downs of the economy since 2008.
The last three years have been very tough for the banking and real estate industries in Colorado. I dont see brighter days ahead.
This, from a person whose bank has weathered the economic storms better than most, though his real estate staff has dropped from 17 to three.
It has been a miserable period, he says, referring to the steps he needed to take to keep his own bank profitable.
These steps, cleaning up our balance sheet, meant collecting loans from people who were overextended and suffered great losses; foreclosing on properties and reducing ANBs risks.
With prescience, ANB began to reduce the risk on its balance sheet in 2007, before the recession hit.
We reduced our risk in land, real estate development and home building in 2008. Luckily, we did. Other banks didnt see the risk early enough.
ANB reduced its loans from $1.7 billion in 2008 to $500 million.
The result is a very strong American National Bank, with $1.1 billion in cash an anomaly in Colorado, which is second in the country, in percentages, in bank failures.
But the human price in putting ANB in a position of strength is clearly a process that Sturm would have preferred to avoid.
Meanwhile, the trick, with ANBs abundant capital, is to find responsible borrowers.
Sturm is determined, because his bank is a family business, a private business, dealing with other equity investors. It was built from sticks. I didnt inherit anything.
Its his capital to lose not someone elses and for that reason he is highly focused on keeping ANB and his other interests afloat.
He is proud that he has been able to do so, for himself, his employees and his depositors.
September to October, 2008, was a scary time, he recalls.
The rest of this article is available in the IJN’s print edition only. Contact Carol to order your copy at (303) 861-2234 or email [email protected].
