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CMA
October 13, 2017  

JP Morgan Beefing Up Balance-Sheet Lending

J.P. Morgan has hired a senior executive to oversee originations in the Central U.S., the latest in a series of moves aimed at expanding its balance-sheet lending operation.

Michelle Herrick joined the bank two weeks ago as a managing director and the head of the operation’s Chicago office. She previously was a senior client manager at Bank of America, where she had held various posts for nearly a decade.

Over the past few months, J.P. Morgan’s real estate banking group has also opened outposts in Boston and Washington, recruited a handful of other pros and transferred staffers from other areas.

“We looked at where we had people on the ground, we saw markets like D.C. and Boston were very strong, along with Chicago, and saw an opportunity to put more experienced people on the ground,” said Priscilla Almodovar, who co-heads the real estate banking group with Chad Tredway.

In addition to expanding its mortgage business, the bank is looking to boost its activity in a number of areas. For example, it sees an opportunity to extend more subscription credit lines to such investors as pensions and endowments. And the bank sees potential in helping property owners manage the inflow of rents and the outflow of their own payments.

J.P. Morgan is one of the nation’s biggest originators of commercial real estate loans. It had $109.6 billion of commercial, multi-family and construction/land loans on its balance sheet at the end of last year, surpassed only by Wells Fargo’s $143.3 billion portfolio. J.P. Morgan has also been the most-active originator of commercial MBS loans over the past 10 years.

Herrick was named market manager for the Central region, a new position. The real estate banking group previously didn’t have a senior executive in Chicago. Herrick, who reports to Tredway, oversees debt, treasury and investment-banking products in the region.

The bank has also recruited several “senior client executives” around the country in recent months, including:

Jon Tarnow, a Bank of the West alumnus who will begin in Irvine, Calif., within a couple of weeks.

Michael Pomposelli, formerly of BofA, who heads the new Boston office.

James Norton, who previously worked at BB&T and leads the new Washington office.

James Whelan, who moved over from BofA in New York.

Also joining within the past couple of weeks was Winston Fant, who heads up a treasury-services unit. He previously worked at U.S. Bank, where he was co-head of deposit and payment services for commercial customers.

In a newly created role, Fant will seek to expand a service that helps property owners collect rents and make payments electronically, rather than via checks. The service, aimed at improving efficiency and reducing fraud, is part of a broader suite of services offered by the treasury unit.

In addition to the recruits, J.P. Morgan shifted other personnel in the past month. Kurt Stuart was named head of term lending in the Northeast, reporting to the head of that business, Ed Ely. Stuart was previously a regional manager in Southern California. And Julie Thick was promoted to head up subscription lending for institutional investors and fund operators. Thick, based in Chicago, reports to Almodovar.

Earlier this year, J.P. Morgan recruited two other senior client executives. Kenya Williams, a PNC alumnus, joined in April, based in Los Angeles. Around the same time, David Kern was hired from Regions Bank. He is based in Tampa.

Almodovar and Tredway, both managing directors, were promoted to co-head the real estate banking group in May, replacing Tom Lawyer, who assumed other duties. They report to Al Brooks, head of commercial real estate. Almodovar was previously in charge of the community development banking group. Tredway led the term-lending unit for the Eastern U.S.