People's United Bank, which entered the warehouse space just a few months back, has already amassed applications of credit for almost $500 million, according to the company executive in charge of the program.
"A lot of that is former customers," said Paul Best, senior vice president in charge of warehouse lending for the Bridgeport, Conn.-based thrift. "We're ready to cut our first line."
But those "former" customers (nonbanks) were not clients of People's -- they were customers of PNC Financial Services, where Best worked until December. PNC exited the program last summer, winding down its final lines of credit by yearend. (The Pittsburgh-based bank inherited the warehouse lending program of National City, which it bought during the financial crisis.)
Best was hired by People's early this year and immediately began contacting his former nondepository mortgage banking customers at PNC. "We have about $100 million in commitments," he said in a recent interview.
People's warehouse staff totals about 15 – many of them former employees of PNC. The unit is based in Louisville, Ky.
