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Banking is about more than just making a financial transaction, says Sean M. Hough.

The 46-year-old Mount Airy native said he wants to become more entrenched in the community as part of his new job as a vice president of commercial banking at The Columbia Bank. He will focus on new business development in Howard County.

"Hopefully that will enable me to find relationships," Hough said of his 14 years of commercial lending experience with K Bank, which has multiple locations around Baltimore, according to its website.

There has been a lot of consolidation in the banking industry because of The Great Recession, and many smaller and mid-size banks have not been able to survive, he said. Lending is key to continued recovery in the nation's economy and banking industry.

A "waterfall effect" occurs when banks make loans to businesses, which in turn can lead to new hires and revenue generation, Hough said.

Banks as a whole are gaining strength and posting profits again, he said. The Columbia Bank, with assets of more than $2.3 billion and 41 branch offices around Maryland and southern Pennsylvania, is owned by Fulton Financial Corp. of Lancaster, Pa.

"Some people [may] feel that the pendulum swung too far the other way and banks got too conservative in lending, which hampered the ability for businesses to get the capital they need to grow," he said. "But we're hoping it's coming back to that center position."

The community ties of smaller banks, such as The Columbia Bank, allow a commercial lender to be out in the community and have more of a one-to-one relationship with its customers, according to Hough.

"I don't want to knock the big banks, but the big banks tend to lose some of that customer service and that personal touch when it comes to dealing with small businesses," he said.

Baxter M. Phillips Jr., another vice president of commercial banking at The Columbia Bank, has worked in the banking business for 38 years and thinks the bank "is more customer-focused than anywhere I've ever worked."

"We are well-entrenched in the community, we help the community, we're known in the community and we thrive from the community," he said.

The Columbia Bank probably positioned itself appropriately prior to the recession, but like most banks, it has felt ramifications from the turmoil within the real estate industry, especially from residential builders, Phillips said.

However, the bank works primarily with the commercial sector, which Phillips said "has been OK" during the recession, although "not stellar because businesses are hunkered down and they're saving cash and they are being very prudent when it comes to borrowing money and expanding."

The presence of government contractors in Columbia and the surrounding areas have led to expansion because "there's always work with the government going on," Hough said.

Phillips said Hough "knows his business" and his extensive banking background and understanding of the lending process will serve him well in his new position.

Gary Thomas, vice president of K Bank, worked with Hough for 13 years and said Hough will be a "tremendous asset" and a "strong employee" for The Columbia Bank.

"He takes pride in his work and he's good with numbers," Thomas said. "He's very loyal and a team player."

Hough, who has a bachelor's in finance from Towson University, lives in Mount Airy with his wife and two sons. In his spare time he enjoys golf, watching sports and working on his family's farm.

chuntemann@gazette.net