Banks across the country are feeling it: open positions that used to take weeks now take months. And the pain is most acute in two areas that directly impact growth and risk: commercial lending and leadership.
This isn’t just a “recruiting problem.” It’s a capacity problem. Even banks with strong pipelines, disciplined underwriting, and healthy credit are running into the same constraint: there simply aren’t enough experienced commercial lenders (and proven leaders) to keep up with demand.
When teams are stretched thin, growth opportunities can sit on the shelf longer, response times slow, and relationship coverage becomes harder to maintain. And when leadership seats stay open, priorities compete, decisions take longer, and teams lose momentum.
Below is a practical look at what’s driving the shortage, what it’s costing banks, and what hiring leaders can do right now to compete.
Why commercial lending and leadership are hit the hardest
1. Experience takes time and the bench is thin
Commercial lenders aren’t built overnight. Strong lenders combine:
- Credit fundamentals and risk discipline
- Relationship management and business development
- Market knowledge and community presence
- The ability to navigate policy, pricing, and exceptions
That skill stack usually comes from years of reps often inside one market. The result: the number of “ready now” lenders is limited, and most are already employed.
Leadership roles face the same issue. Whether it’s a Team Lead, Market President/Regional President, EVP, or President & CEO, the best candidates are proven operators with credibility in the market. Those individuals are rarely active applicants.
2. Retirements and career exits are accelerating
A meaningful portion of the banking workforce is nearing retirement. At the same time, some mid-career professionals are leaving for:
- Fintech and non-bank lenders
- Private credit and specialty finance
- Roles with more flexibility or different compensation structures
Even when a bank replaces a retirement, it often triggers a domino effect: promotions create backfills, and backfills create more openings.
3. Compensation expectations have shifted
Commercial lending compensation has become more competitive especially for lenders with moveable books or strong production histories.
Leadership candidates are also weighing total value beyond base salary:
- Incentive structure and clarity
- Decision-making authority
- Team strength and support
- Culture, stability, and board alignment
Banks that rely on “what we’ve always paid” are finding that the market has moved.
4. Geography matters more than ever
Many community and regional banks still prefer local market knowledge and for good reason. But the “local-only” requirement can shrink the candidate pool dramatically.
At the same time, relocation is less attractive than it used to be. Candidates with families, community ties, or dual-career households may not move unless the opportunity is exceptional.
5. The hiring process is often too slow for today’s market
Top candidates don’t stay available long. When the process includes:
- Long gaps between interviews
- Unclear timelines
- Too many stakeholders without alignment
- Delayed compensation decisions
…candidates assume the bank is either not serious or not organized. And they move on.
What the shortage is costing banks (beyond the obvious)
Unfilled roles create visible costs, lost production, delayed growth, and overtime. But the hidden costs are often bigger:
- Client attrition risk: When relationship coverage is inconsistent, clients notice.
- Credit risk drift: Overloaded teams can miss early warning signs.
- Burnout and turnover: High performers absorb the workload until they can’t.
- Strategic slowdown: Leadership vacancies delay change initiatives, market expansion, and team development.
- Culture impact: Teams lose confidence when key seats remain open.
What banks can do to compete for commercial and leadership talent
1. Get crystal clear on the “must-haves” vs. “nice-to-haves”
Many searches fail because the profile is too broad or unrealistic.
A stronger approach:
- Define the top 3 outcomes the hire must deliver in the first 12 months
- Identify the non-negotiables (market, credit skill, leadership scope)
- Decide what you can train vs. what must be proven
This creates alignment internally and speeds up decision-making.
2. Sell the opportunity like you expect candidates to sell to clients
High performers evaluate banks the same way banks evaluate them.
Be ready to clearly communicate:
- Growth strategy and market opportunity
- Credit culture and risk appetite
- Leadership support and autonomy
- Team structure and resources
- What “success” looks like in the role
If the story isn’t compelling, the candidate won’t lean in.
3. Tighten the process and move with urgency
A practical target for many commercial/leadership searches:
- First conversation within 48–72 hours of identifying interest
- Interview scheduling within 7 days
- Clear next steps after every touchpoint
- Fast compensation approval path
Speed doesn’t mean rushing. It means respecting the market.
4. Expand sourcing beyond active applicants
If you’re only posting and waiting, you’re fishing in the smallest pond.
The most effective searches include:
- Direct outreach to passive candidates
- Market mapping (who’s where, doing what)
- Referral-driven introductions
- Confidential conversations that protect both sides
This is especially true for leadership roles where discretion matters.
5. Build a longer-term bench, not just a one-off hire
Banks that consistently win in talent treat hiring as a strategic function:
- Identify internal successors early
- Invest in lender development and mentorship
- Create clear career paths for high potentials
- Maintain relationships with future-fit talent before you “need” them
The bottom line
The talent shortage in banking isn’t going away quickly especially in commercial lending and leadership. But banks that treat hiring as a strategic, market-driven process can still win.
The institutions that move fastest, communicate most clearly, and build the strongest long-term talent bench will protect their client relationships, manage risk more effectively, and grow through the cycle.
If your bank is struggling to fill a commercial or leadership seat, it may not be a lack of candidates it may be a lack of the right process, positioning, and market reach.
Need help filling talent?
If you’re seeing strong demand but running into a shortage of qualified talent, we’re happy to be a resource.
We work with community and regional banks to run a structured, transparent search process so you can move quickly, protect confidentiality, and hire the right long-term fit.
If you’d like to talk through what you’re hiring for (or what’s holding the search back), feel free to reach out and we can set up a brief call.