Hey Y'all,
I'm December 2018 grad with a fin/econ major, jumped into my family's PNL Residential Lending branch fresh out of school as a Jr. LO, got licensed and started originating in about May 2019 making about a full year into being a Residential LO. I know people don't think much about the retail side but it was an easy transition after not finding a job within about 2 months of graduating. I made about $45K my first year and I'll probably hit upper 5-figure maybe touch 6-figures this year. I don't bring a ton of clients in myself - it's mostly excess off our top producers that need extra hands. So if things slow down my income would likely drop a bit.. it's mostly family working this office together. 2019 we had a record year and this year is looking really good too.
That being said, I did an internship for a LifeCo during my senior year helping their credit analyst CRE division. I've seen it and for the most part I've enjoyed the work it was more interesting working with investments vs helping families buy or save money on their home.. I've found an opening for a Credit Analyst at a regional bank (close to $1b deposits) and I am unsure of if I would qualify or if it's worth transitioning. I know the payscale is about $48-$55K in my area which would be significantly lower than what I'll gross 2020 but we are also in a mad house refi boom that likely won't continue forever. I have idea's about buying rental's over the next few years and I worry that making around $50K/yr won't cut it moving forward, but it is a much better field/experience than what I'm currently doing. And could lead to great connections/knowledge of banking to scale a portfolio from residential to commercial.
Has anyone made the leap leaving a separate higher paying job to a lower paying one that offers better prospects? The division for the commercial analyst says A&D and spec construction.. Could someone help decipher what A&D is? Thanks for the input!
Yes you qualify for the position. Commercial banking is mostly arithmetic and basic accounting. A&D stands for acquisition and development, and is typically used when talking about acquiring raw land and developing it into lots to be sold to homebuilders.
While you’re making good money now, a credit analyst position is the career path to become a commercial loan officer/relationship manager. Apply for the job and apply for others if you don’t get it.
creditcreditcredit thanks for the reply! I figured the D stood for developement but the A was hanging me up LOL. Good to know I would have a shot, I'll shoot a resume and cover letter their way. I am interested in Development as well so it seems like a decent transition. Do you know what salary progression looks like? Is it fairly linear or do they expect you to move to a RM role within a few years and start bringing in business?
I transitioned from an unrelated industry in sales to a Credit Analyst role at a Regional Bank a few years back. Income dropped pretty significantly (about 30%), and also moved to a higher COL area so expenses rose quite a bit, which hurt. Lifestyle had to change a bit during the first couple years until my income rose but ultimately I enjoy my work much more now and don't feel burnout nearly as often
Sounds cliche, but do what interests you and something you can enjoy. It's far easier to excel in your role and build a career this way. If you feel that the CRE side of the business would be more fulfilling, give it a shot. I'm guessing you'll always be able to go back to the family brokerage, and having some CRE experience will definitely help understand that business. You may even be able to add a Commercial arm at that point since you'll have experience and an established network within a different market
weaksaus I like the way you think about the back up and offering commercial serives.. Could you elaborate a little on the salary progression once you got the position? I figure they want to move people to RM's eventually but does the pay get better before then?
Depends on where you are. Im in CA, Credit Analysts usually start at $60-70k base with anywhere from 0-10% bonus for the first couple years. Progression is usually to either RM or Underwriter, depends on the business model. The bank I was at, I was in Credit, so I went to UW. If you're a Credit Analyst supporting RM and UW, I would recommend going RM based on what you've described as your experience. RMs usually have some sort of variable comp, whether it be based on commissions or bonus, with majority of comp progression being related to production, at least at the higher levels. UW will have more base progression over the years with smaller variable comp figures relative to RM.
EDIT: To add that as a Credit Analyst, you can become Senior Analyst then Associate or Jr. RM. Base will likely increase to about $80-90k. Again, depends on the business model. Also, the figures I'm using here are going to be for West Coast/higher COL markets, so adjust those numbers relative to the market you sit in. Feel free to PM me if you want to dive into specifics
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