While Florida’s housing market may be finding its level, the Sunshine State’s commercial and industrial (C&I) space shows no sign of slowing down.
Just ask the C&I team at Banesco USA, which has already outpaced the ambitious goals it set for itself since expanding this business line. Now, with 2025 just around the corner, the team is expecting big things in the C&I space from the Panhandle to the Keys, and is aiming to capture even more of the market thanks to Banesco’s unique combination of local knowledge and regional reach.
Florida’s Commercial & Industrial Boom
In the wake of the COVID-19 pandemic, industries of all kinds flocked to Florida to take advantage of the state’s business-friendly environment and overall quality of life. Not only is Florida the number one destination for corporate migration, the state also led the nation in the formation of new corporations during the first half of 2024, much of it driven by major infusions of investment capital.
This influx of both corporate headquarters and investment capital has, according to Carlos Lamourtte, Senior Vice President, Head of C&I Banking for Banesco, generated a considerable increase in demand for bank debt to support business acquisition loans, working capital facilities and partner buy-outs.
Despite high interest rates, inflation and labor woes, Florida’s C&I space thrived thanks to inbound migration from around the country. When we last spoke with the Banesco team, we discussed the movement of Northeastern financing to South Florida, but that’s just a snapshot of the business migration to a small area of the state, as now the impact has touched many other areas across Florida.
“It started coming from New York and the Northeast,” explains Lamourtte. “Now people and businesses from all around the country are coming here, from Texas, Massachusetts, Illinois, we’re even seeing people from the Carolinas moving down.”
Banesco has been in a perfect position to capture this influx of business. By combining knowledge, flexibility and the fast response time of a local bank with the funding capacities of a larger institution, Banesco’s C&I team has been able to compete for business “with banks that are ten times bigger than us,” says Lamourtte.
Another major advantage that Banesco has leveraged is its ability to attract high level talent from around the state. “We have the people with the connections and the know-how,” says Lamourtte.
Banesco’s Big C&I Wins
Over the past year, the bank has expanded its C&I capabilities with the addition of new team members, and since then the team has closed an impressive number of major deals. We had Lamourtte talk us through a couple of deals that underscored Banesco’s competitive advantage in the C&I space.
The bank closed a large financing deal with an agriculture grower and importer from Central America, whose produce can be found in supermarkets around the United States. The company had been with its previous bank for two decades, but when that institution failed to adequately support them on a particular transaction, Lamourtte and his team seized the opportunity and earned a new client.
“We came in, we analyzed it, and we gave a response in half the time it took the other bank,” explains Lamourtte. “We were very quick not only in terms of our response time, but we provided them with the structure that they were actually looking for.”
It was an example of Banesco’s ability to handle out-of-the-box transactions thanks to its nimble structure. The bank has also leveraged its convenient locations throughout South Florida and Puerto Rico to snag clients by providing local service to companies that might need a banking relationship out of state.
“Another big win was an aerospace company,” recalls Lamourtte, who explains that the firm’s out-of-state bank changed its approach to the industry as part of a strategic realignment, creating an opening for other banks to vie for the business. Banesco’s well-connected team was first in the door, and though other banks quickly approached in with competing offers, Banesco was able to serve the company the best structure and closed the deal.
Building on Success
Following continued growth in this lending segment, Banesco’s C&I team has planted its flag in the growing space across the length and breadth of the Sunshine State. Lamourtte expects this growth to continue in 2025.
“We think that the decrease in interest rates is going to spur economic activity and thus benefit banks,” he says. “There’s going to be more opportunities for lending. Some clients are going to require more financing in order to expand their business and increase sales, some for the acquisition of properties and equipment.”
Nelson Hidalgo, Executive Vice President & Head of Corporate Banking for Banesco USA, believes that Banesco is well-positioned to continue serving all of Florida’s banking needs, from C&I and commercial real estate to construction financing.
“We’ve got this diversity as it relates to our product lines,” says Hidalgo. “What we’re doing on the C&I side, it’s a benefit not only to our clientele, but it’s also a complete benefit to our entire banking organization.”
By keeping its lending portfolio strategically diversified, Banesco is able to serve a wide range of banking clients with confidence as Florida’s business community continues to thrive.
Banesco understands the dynamics of the local market, offering custom solutions with white-glove service and swift decision-making. As a community bank, Banesco is proud to serve the commercial real estate sector, small and middle-market businesses, as well as professionals who work in the community. The bank services domestic and international clients and operating companies with a suite of products and services delivered with personalized attention to support their financial journeys.
Connect with Carlos Lamourtte at clamourtte@banescousa.com. To learn more about Banesco’s products and services, please visit Banescousa.com.