Business View Magazine - July 2023

173 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 7 WALLKI LL VALLEY FEDERAL LOANS AND SAVINGS By creating a culture that values respect, inclusivity, and approachability, Wallkill Valley demonstrates its commitment to serving its community effectively. The Role of Interest Rates in Community Banking Horodyski addresses the challenging balancing act that community banks, like Wallkill Valley, must strike when navigating interest rates. The low-interest environment that prevailed over a decade left savers wanting while borrowers enjoyed enticing rates. As the economic landscape shifts, savers are finally reaping some rewards. “For a long time, the market did not reward savers,” Horodyski observes. “Now the savers are being rewarded while loan borrowers are experiencing a shift.” When it comes to loans, his mantra for clients is to “marry your house, but only date the rate,” suggesting that rates will fluctuate over time and that affordability, despite higher rates, should be the focus. “None of this lasts forever,” he affirms. Rather than focusing on rate marketing, Wallkill Valley emphasizes relationship-building and high-caliber service. “Rates are easy to be shopped,” Horodyski notes, emphasizing interest rates’ volatility and cyclical nature. He argues that the real differentiator for their institution is the level of connection and loyalty they foster with their customers. Preparing for the Future: A Cautious Approach As the next year looms, the financial landscape remains riddled with uncertainties. Horodyski reveals that Wallkill Valley is gearing up for this period with an approach ruled by cautiousness. With discussions underway with branch managers and loan officers, the community bank is preparing for the potential financial changes that may arise. “A lot is unknown currently,” Horodyski shares, stressing the significance of cautiousness. While the institution typically operates under the mission of growing assets and forging new relationships, the emphasis for the next six to twelve months is to ensure the well-being of existing customers and manage potential credit crises. “I think credit is also a bit cyclical,” the CEO speculates, expressing his anticipation of pressure on loan portfolios as interest rates stay higher for longer. “Making sure we take care of the customers that we have, understand where their hot button topics are going to be, their ability to deal with higher rates if there’s a need for a refinance - that’s crucial.” The approach for the immediate future seems clear: cautious expansion and meticulous customer care. While the bank continues to welcome new customers, it plans to do so prudently, ensuring that new entrants fit into the bank’s strategy in what might be a period of tight credit. “We want to be there for everybody, but we’re not going to be out there gun-slinging,” Horodyski affirms. The community bank remains committed to its customers and its role in the local financial landscape. Still, it plans to navigate the potentially choppy waters of the upcoming year with vigilance and care.