Vice President (VP), Commercial Lending Salary
Job Description for Vice President (VP), Commercial Lending
Vice president (VP) of commercial lending positions are available at banks and similar institutions. They work within the institution's market to find key loan-providing opportunities that fit the goals and requirements of the bank. Daily tasks include analyzing a wide variety of financial statements, structuring loan terms and fees, approving or recommending loans, counseling potential borrowers financially, and conducting presentations with senior management staff. All of these tasks help establish a high standard of credit quality and strong commercial portfolio on behalf of the bank, which may also require working with collection staff for delinquent accounts.Read More...
Work for this position occurs in an indoor office environment, but some travel or teleconferencing may also be necessary depending on the company’s structure. Work hours are typically limited to standard business hours, but variations may apply to some openings.
This position requires extensive communication skills, both written and verbal, as relationships with potential clients and other members of the team are vital for success. Knowledge of credit management, credit underwriting, analytical skills, and negotiation abilities are also important; many positions require a demonstrated work history involving these types of tasks. Although specific requirements vary, 10 years of experience is a common standard qualification. Academic requirements usually include a bachelor’s degree in business or a similar field, but some organizations may accept specialized training or experience in lieu of education.
Vice President (VP), Commercial Lending Tasks
- Manage a team of loan officers structuring and writing loans, reviewing their work and maintaining quality standards.
- Provide customers with financial counseling, and recommend bank products which fit their needs.
- Monitor the status of problem loans and work with customers to make sure the loan is repaid.
- Negotiate, underwrite, and structure high level loans, and submit proposals for approval.
- Develop customer and referral networks, identifying and pursuing opportunities for loan sales.
Common Career Paths for Vice President (VP), Commercial Lending
Many VPs of Commercial Lending move into a Senior Vice President of Commercial Lending role, and folks who currently hold that position report a much higher median income of $134K per year. A lot of VPs of Commercial Lending advance their careers by becoming Commercial Lenders and Commercial Loan Officers. However, those positions offer $29K less and $40K less per year on average.
Vice President (VP), Commercial Lending Job Listings
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Popular Skills for Vice President (VP), Commercial Lending
VPs of Commercial Lending who responded to the survey indicated only a few skills that they use on the job. Most notably, skills in Financial Analysis, Sales, Loan Underwriting, and Business Development are correlated to pay that is above average. Those educated in Business Development tend to be well versed in Financial Analysis.
Pay by Experience Level for Vice President (VP), Commercial Lending
Median of all compensation (including tips, bonus, and overtime) by years of experience.
For many VPs of Commercial Lending, extensive experience does not lead to significantly more money. Whereas the median salary for inexperienced employees is approximately $83K, incomes in the five-to-10 year group are significantly higher, averaging to the comfortable six-figure sum of $103K. For VPs of Commercial Lending, 10 to 20 years of experience on the job amounts to an average salary of $106K. Veterans who have acquired more than 20 years report a median income of $117K, which is generally higher than the pay reported by other tenure groups.
Pay Difference by Location
With a pay rate for VPs of Commercial Lending that is 26 percent greater than the national average, Boston offers a comfortable salary for those in this profession. VPs of Commercial Lending can also look forward to large paychecks in cities like New York (+25 percent), Chicago (+15 percent), Akron (+8 percent), and Houston (+7 percent). The lowest-paying market is Tulsa, which sits 27 percent below the national average, proving that location is a significant contributor to overall pay.