Bank loan portfolios shrank in 2009

Local banks collectively trimmed more than $880 million from their loan portfolios in the past year, illustrating the decline in credit for Northern Colorado borrowers.

The 15 banks with charters based in Larimer and Weld counties decreased total loans by 14.5 percent to $5.2 billion at the end of 2009. Statewide, banks reduced their loans by $4.7 billion or just over 11 percent. Community banks typically serve as lenders for locals – small business, commercial real estate and the like – so the decline in credit speaks volumes about business activity.

If the health of Northern Colorado’s economy is…