After I walked into U.S. Century Financial institution in 2015, I knew what I used to be moving into—however the numbers nonetheless hit laborious. Over $200 million in losses since 2009. Eight of our 18 branches had been underperforming. A Consent Order from regulators. It’s the type of scenario the place everybody’s watching to see when you’ll grow to be one other statistic within the lengthy record of banks that didn’t make it previous the monetary disaster.
Ten years later, we’ve greater than doubled our property to $2.7 billion, gone public on Nasdaq and we now persistently carry out within the high quartile of Florida banks. However this isn’t a victory lap—it’s a blueprint. As a result of if there’s one factor I’ve discovered from 43 years in banking, it’s that turnarounds in extremely regulated industries require a really particular playbook.
Let me share what truly labored.
The First 90 Days: Transfer Quick on Folks
Everybody talks about assessing the scenario first, and I did that instantly and acted rapidly.
Inside 90 days, I employed thirty bankers, all folks I’d labored with earlier than, folks I knew may execute beneath strain. While you’re rebuilding belief with regulators, clients and a demoralized employees, you don’t have a lot time for a studying curve.
I additionally overhauled the chief and manufacturing groups, whereas working with the brand new board to supply extra members—this was all accomplished concurrently. If that sounds aggressive, it was. However right here’s the truth: the tradition that created the issue received’t repair the issue. You want contemporary views and, frankly, folks with out the bags of previous errors weighing on each resolution. US Century Financial institution’s turnaround gained traction when the board was broadened to incorporate two non-public fairness traders, a advertising professional, an lawyer, a physician, a CPA, an educator and a financial institution guide. That skilled range—mixed with the board’s wide-ranging expertise, steerage and constant help of administration—strengthened self-discipline, sharpened technique, and translated into sustainable outcomes.
The second precedence was redefining our credit score tradition. We’d been harm by industrial actual property focus—the identical story as tons of of failed banks. Our new Credit score Division led a complete effort to establish each high-risk publicity and construct new requirements that might forestall us from repeating these errors. This wasn’t about being conservative for its personal sake. It was about being sensible.
Third, we reduce our department community from 18 to 10 whereas concurrently upgrading our know-how with a brand new core system, up to date ATMs, and fashionable digital fee platforms. The traditional knowledge says you’ll be able to’t reduce prices and make investments on the identical time throughout a turnaround. That’s flawed. You should do each. The query merely turns into the place to chop and the place to take a position.
Constructing Regulatory Capital (The Sort That Actually Issues)
Inside six months of beginning, I did one thing that may appear counterintuitive: I visited each the FDIC and Florida Workplace of Monetary Regulation (OFR) to current our turnaround plan. That wasn’t required, however I’ve discovered that this proactive, clear strategy builds invaluable “regulatory capital” and strengthens the essential relationship between bankers and regulators. I laid out the challenges, the alternatives and the timeline. Then I stored going again with progress updates.
Over 16 years as president and CEO throughout two banks, I’ve discovered that regulators aren’t the enemy. They’re companions with a unique mandate. Constructing what I name “regulatory capital”—that skilled, open relationship—is as essential as monetary capital. After they know you, belief your judgment, and see constant execution towards your commitments, you achieve strategic flexibility that’s invaluable throughout progress phases.
I labored laborious to ascertain sincere and frequent communication with regulators, employees, traders and clients in regards to the financial institution’s turnaround plans in addition to updates on its monetary well being and general progress. Our senior administration labored with a way of urgency in fostering a constructive tradition by clear management, sharp imaginative and prescient, and workforce engagement to inspire employees and enhance service high quality.
From Survival to Development: The Two Essential Shifts
Folks all the time ask after we knew we’d turned the nook. Actually, I by no means doubted this workforce may succeed. However two operational adjustments had been pivotal in transferring from survival mode to progress mode.
First, we consolidated branches strategically. We closed eight underperforming places whereas doubling our property and deposits. This streamlined our department footprint, supported progress and price effectivity, and maintained buyer accessibility. As a result of it’s probably not about brick-and-mortar anymore; it’s about being the place your clients are, digitally and bodily—discovering the precise steadiness of “bricks and clicks.”
Second, we developed six new enterprise verticals past industrial actual property, together with correspondent banking, yacht lending, affiliation banking, and small enterprise lending. We obtained SBA-designated lending authority for sooner small-business mortgage approvals. Every vertical represented a deliberate diversification technique to make sure we’d by no means once more be overexposed to a single sector.
We focused sectors with steady fundamentals: established small and medium-sized companies, particular niches the place we may supply real experience, akin to legislation companies, healthcare practices, home-owner and condominium associations. Our nonperforming loans are actually at 0.06%, with a conservative 1.18% allowance for credit score losses. That’s not luck—that’s disciplined portfolio administration and lively administration of our loan-to-deposit ratio to make sure progress is supported by stable funding and capital buffers.
Diversifying Past Conventional Banking
Florida is an actual estate-denominated financial system, and whereas we’ve diversified our portfolio concerning industrial actual property, we’ll all the time be an lively participant in that market. That’s why we established Florida Peninsula Title Firm as a wholly-owned subsidiary.
Title work is a part of each actual property transaction, so we determined to supply our purchasers with the chance to have their title work dealt with effectively and competitively in-house. That is supplied as a value-added service—there’s no obligation on the borrower’s half to make use of it. But it surely generates extra non-interest revenue whereas serving our purchasers higher.
This resolution illustrates how we consider new income streams: first, assess the profit for our purchasers; second, consider the worth as a income alternative for the financial institution. It’s considerate innovation that enhances somewhat than complicates our core enterprise.
The IPO Resolution: Timing and Preparation
We went public in July 2021 with a $40 million providing. Folks ask, why then? Three causes.
First, our financials had been sturdy and our working mannequin was confirmed. You get one shot at an IPO. When you’re not prepared, the market will inform you—painfully.
Second, post-pandemic, the market confirmed receptiveness to new choices once more. Timing issues.
Third—and that is essential—we had simplified our capital construction. Earlier than the IPO, U.S. Century Financial institution had a sophisticated capital stack, consisting of a number of courses of inventory created throughout the 2015 recapitalization. To handle this complexity, the financial institution used the IPO as a device to simplify and streamline its capital base, making our capital construction extra clear and enticing to public traders whereas offering the financial institution with contemporary funds to help our continued progress plans. Efficiency and transparency actually does appeal to capital.
Being public has sharpened each side of our operation. The accountability to shareholders, the quarterly earnings calls, the heightened regulatory scrutiny—all of it calls for a degree of self-discipline that makes you higher.
After all, being the CEO of a public firm means enhancing one’s skillset to successfully handle investor relations, lead quarterly earnings calls and improve regulatory relationships. In my present function, I’ve needed to hone my potential to obviously articulate the financial institution’s monetary efficiency, progress technique, and danger administration strategy to a broad base of shareholders and analysts. This contains drafting clear, assured messaging to construct and preserve investor belief and help. Additionally, it’s essential to have the ability to handle market expectations round quarterly outcomes whereas retaining the concentrate on sustainable, strategic progress, which is essential for group banks transitioning to public standing.
Competing With out Compromising Id
Right here’s the stress each group financial institution faces: How do you compete with megabanks and fintechs with out shedding what makes you beneficial?
Our reply: We don’t attempt to be one thing we’re not. We emphasize personalised, relationship-driven banking with native decision-making authority. We all know our markets deeply. Our purchasers aren’t account numbers—they’re companies we perceive.
However we additionally make investments readily in know-how. Trendy digital banking platforms, cell banking, digital account opening, and Zelle for each person-to-person and business-to-business transactions. We’ve partnered selectively with fintech companies for progressive merchandise and operational efficiencies, together with compliance features. Neighborhood banks won’t ever out-develop tech corporations. However we are able to leverage their improvements whereas sustaining management over buyer relationships and information.
It’s high-touch service supported by automation. Our affiliation banking purchasers profit from API integration, automated lockbox funds, and ACH processing—decreasing handbook work whereas we nonetheless present the personalised steerage they worth. And we actively help group causes, reinforcing our function as a dedicated, native monetary associate, which strengthens buyer loyalty in ways in which purely digital rivals can’t replicate.
When you’re dealing with a turnaround scenario, right here’s my quick record of recommendation:
• Construct your workforce instantly. Don’t wait to “assess” for too many months. Get the precise folks in place quick to concentrate on monetary self-discipline and stabilize the steadiness sheet by addressing asset high quality points, controlling prices, and rebuilding capital. A robust monetary basis permits strategic flexibility.
• Lead with readability and accountability. We held weekly govt committee conferences, mortgage committee conferences, gross sales conferences. Self-discipline and accountability begin on the high and have to be seen all through the group.
• Talk relentlessly. Meaning with regulators, employees, traders, clients—as a result of transparency builds belief, whereas silence creates anxiousness and hypothesis.
• Innovate thoughtfully. Sure, modernize operations and know-how. However don’t abandon your core strengths or ignore danger controls. Stability is every thing.
• Assume long-term whereas executing short-term. The market needs quarterly outcomes. You want sustainable strategic progress. Handle expectations round each.
The Mountaintop Second
In July 2021—5 years, seven months, and two days after I joined the financial institution—I stood at Nasdaq ringing the closing bell, surrounded by our board and administration workforce, livestreaming to our employees again in Miami.
That second represented one thing larger than going public. It was proof that with the precise folks, clear imaginative and prescient, disciplined execution, and unwavering dedication to doing issues proper, you’ll be able to take an establishment from regulatory sanctions to top-quartile efficiency, with property rising past $2.7 billion—all of it proof of what may be completed when you will have an exceptional workforce working nicely collectively.
We’re not accomplished. We’ll continue to grow thoughtfully, sustaining our group identification whereas leveraging know-how, deepening shopper relationships whereas increasing our capabilities. As a result of turnarounds aren’t about survival—they’re about constructing one thing sustainable.
And that work by no means actually ends.
