2023 was another jampacked year for Cross River Bank, and the Fort Lee-based technology infrastructure provider, which offers embedded financial solutions, is looking to carry that momentum forward as the calendar gets ready to flip to the new year.

A prime example of that success can be found in its commercial real estate business. Despite operating in a tricky environment, given high interest rates and a tight credit market, in October, Cross River announced its team closed 78 loans nationwide over the previous 12 months. Totaling more than $840 million, the loans ranged from $450,000 to $81 million across multiple asset types.

“Achieving close to $1 billion in financing over the past 12 months for varying asset classes and markets speaks volumes to our drive and commitment to our clients in these challenging times,” said Cross River Executive Vice President and Chief Lending Officer Shimon Eisikowicz in an October press release. “While other lenders have closed the door on their clients, we’ve used this opportunity to work closely with our borrowers and produce tailored solutions for them without compromising on credit quality.”

NJBIZ recently caught up with Eisikowicz to talk about the year that was, what’s ahead, industry challenges, areas of focus and much more.

Opening that discussion, Eisikowicz acknowledged that 2023 has been a challenging environment. But, he said, that can be viewed multiple ways and as an avenue of potential opportunity – noting that Cross River was born in 2008 during the height of the financial crisis.

“There was no bigger challenge than the environment at that point – in the credit market, in the banking sector, in the real estate market, and so many others,” Eisikowicz told NJBIZ. “And I think that ’23 has some resemblance to that environment. But we are built out of that challenge. And I think what we have built is just a small sample of what we are going to continue to build.”

He stressed that regardless of any particular challenges or headwinds that may be present or coming down the line, the strategy for Cross River has remained the same since the beginning.

“It’s really about the customer. It’s really about the client,” Eisikowicz explained. “It’s about the relationship. And, obviously, many banks use that cliché – if you would – we’ll bend over backwards and we’ll do this and that. We are really built on that. And, again, looking back – which is important, you’ve got to look behind you to know where you came from. I like to do that because it helps us stay focused. We set out to be different than other banks from our inception.”

Willing to do more

Eisikowicz referenced the early journey of the company from one branch in Teaneck during the height of the financial crisis with a lending limit of under $1 million in an expensive, challenging real estate market, to what it has grown into today.

“And how did we do it? We did it simply by focusing on the parts of the business that others aren’t focusing on, can’t focus on, or choose not to focus on,” he explained. “It may sound old-fashioned or mundane, but that’s really the key ingredient to our success. It’s focusing on the customer – what they need and how we can provide it. It’s not always about rate. It’s not always about dollars. Sometimes it’s just about understanding the client’s needs and figuring out a solution to their problem, to their needs.”

On the topic of rates, which is a hot-button area of discussion and concern given current conditions, Eisikowicz again stressed that he tells clients, borrowers, attorneys and referrals that it is not just about the rate.

“I generally tell them, if your first question is about rate, we are probably not the bank for you. Not because we don’t want to do business with them, but because if that’s all you are looking for, there’s so many banks where that’s their focus,” said Eisikowicz. “We are not looking for market share. We are looking for real relationships.

“Real relationships often require handholding, customization, creativity, and a host of other things. So, the rate environment – sure it’s a shock for everybody,” Eisikowicz continued. “In spite of the shock, we have been able to grow the business – not because we are smarter than anybody else, not because we are better than anybody else. But because we are willing to do more for that client – whatever more means.”

That thinking and adherence to the company philosophy has guided Cross River in this aforementioned challenging environment, with the company viewing it as a time to not just be on defense but stay on offense — especially as potential clients and borrowers look for solutions.

“We see it as an opportunity to earn the clients’ trust and business,” Eisikowicz explained.

‘This is the new normal’

Speaking in late November, Eisikowicz noted that Cross River was trying to finish the year out strong, closing as many deals as possible in the pipeline as well as unfinished business before the calendar turns.

As for 2024, he believes that current, tight conditions will linger at least through the early part of the new year.

“Unfortunately, this is the new normal,” he said. “And that new normal needs to settle in for many folks – whether it’s the rate shock for some borrowers that expected to refi, maybe pull some of their equity out, pay some of their investors. Whether it’s sellers that expected to get certain valuations that maybe they are not seeing because of where pricing and where the market has gone. There’s a host of challenges that still exist. I think this is the new norm and that slowly people are going to adapt to it. And it takes time. Rates went up 500 basis points in a very condensed time. So, there’s a big adjustment period for a lot of folks – lenders included.”

He pointed out that a lot of loans are maturing and coming due in addition to troubled assets and the post-pandemic realities and challenges of office and retail space. Eisikowicz says this is why he set out to build a diversified business and not be too overly concentrated in one area.

“I try to make sure we stay diversified,” Eisikowicz said. “Thankfully, our portfolio is performing in spite of some of the challenges that certainly are existing in the market. The office market is absolutely more than just a headwind right now that I think is impacting many other verticals within the real estate space. And the lenders that are exposed to that – their exposure is also impacting the general real estate environment. These are all part of the unknowns as we go into ’24.”

When asked about other potential headwinds or challenges, Eisikowicz pointed to processes that are bottlenecked in the capital markets side of the business as well as rent stabilization laws affecting multifamily assets. He says that all of that is contributing to the potential tsunami.

“All of these big challenges are coming together at the same time,” he explained, describing it as a confluence of events. “You’ve [also] got a host of maturities that are coming due – if they haven’t already. And there’s just so long that a bank can kick these down the road before they actually could deal with some of these issues. Early ’24, I think we’re going to start seeing some of these things get fleshed out because there’s an expiration to the patience that a bank can have – whether it’s from regulatory perspective or whether it’s from shareholder perspective. So, I think that those are all going to come to a head as well — probably early to mid ’24.”

The road ahead

As for Cross River’s goals in 2024, Eisikowicz said the company is continuing to service its clients and help them move forward — working through any challenges together along the way.

“Not every loan is going to perform the way people expect. Not everybody’s going to have the same collections that they expected to have,” Eisikowicz said. “And many other issues that may come up that we are not even thinking of. The goal is to work with the clients, work with the borrowers – not just about making a loan, as I said, and putting it to bed. We’re here. We are relationship builders. And I am sure we will have some challenges, but our goal is to address them the same exact way we did historically, which is being there for the client.”

One recent example of meeting clients needs was the Cross River banking team raising rates for business and personal savings and CD accounts, which has resulted in immediate positive reception as well as branches serving more than three or four times the usual customers with new account openings.

Eisikowicz said that another major goal closing out 2023 was raising awareness of and educating clients and customers about these types of products and services on the banking side.

“Because, again, we are here to help them when they need loans. And I think that we’ll be able to be there to help them with some of the deposit and banking products that traditionally we have not been as focused on,” said Eisikowicz. “But it’s certainly at the forefront for us going forward.”

Partnerships, collaborations and philanthropy also continue to be major areas of focus for Cross River as the company continues to evolve and grow.

In November, Cross River marked National Scholarship Month by announcing that its philanthropic arm, Foundation@, donated a total of $740,000 in scholarships in 2023 — ranging from youth education to university programs across both the United States and Israel. Here in the Garden State, that included contributions to Rowan University’s emergency fund; Fairleigh Dickinson University; the Sinai School at Rosenbaum Yeshiva of North Jersey, which was renamed the Cross River Sinai School earlier this year; the New Jersey Institute of Technology toward the Cross River Opportunity Scholarship; and a Community Scholarship Fund, which aids local Teaneck students in need of financial assistance.

“Cross River is focused and dedicated to providing access to a fair, balanced, and quality education for all,” said Gilles Gade, founder and CEO of Cross River, in a November press release. “We will continue to support initiatives that equip the next generations in establishing the foundation for a better future.”

“We are built on partnerships. We are built on giving. We are built on helping,” said Eisikowicz. “That’s in our DNA. That’s in our core – literally from the beginning.”