When I joined US Century Bank in 2015, I knew what I was getting into, but the numbers were still tough. More than $200 million in losses since 2009. Eight of the 18 branches were underperforming. Consent orders from regulatory authorities. Everyone is watching to see if your company will join the long list of banks that failed to survive the financial crisis.
Ten years later, our assets have more than doubled to $2.7 billion, we are listed on Nasdaq, and we are now consistently in the top quartile of Florida banks. But this isn't a victory lap, it's a blueprint. Because if there's one thing I've learned from 43 years of banking, it's that reviving a highly regulated industry requires a very specific strategy.
Share what actually works.
First 90 days: Act quickly on people
Everyone talks about assessing the situation first, and I did that right away and acted quickly.
Within 90 days, I hired 30 bankers, all of whom I had worked with before and who I knew could perform under pressure. When you're rebuilding trust with regulators, customers, and demoralized staff, there's not much time for a learning curve.
We also worked with our new board to source additional members, while overhauling our management and production teams. This all happened at the same time. If that sounds offensive, it really was. But the reality is: The culture that created the problem will not solve the problem. We need people with fresh perspectives and, frankly, without the baggage of past failures weighing down every decision. U.S. Century Bank's turnaround gained momentum with the expansion of its board of directors to include two private equity investors, a marketing expert, an attorney, a physician, a certified public accountant, an educator, and a banking consultant. That professional diversity, combined with the Board's extensive experience, guidance and consistent management support, strengthened discipline, sharpened strategy and led to sustainable results.
Our second priority was to redefine our trust culture. We were being harmed by the concentration of commercial real estate. It's the same story with hundreds of banks that have failed. Our new credit department led a comprehensive effort to identify all high-risk exposures and create new standards to avoid repeating those mistakes. This was not about being conservative for its own sake. It was about being smart.
Third, we reduced our branch network from 18 to 10 while upgrading our technology with new core systems, updated ATMs, and a modern digital payment platform. Conventional wisdom says that you can't cut costs and invest at the same time during a turnaround. That's wrong. you must Please do both. The only question is where to cut back and where to invest.
Building Regulatory Capital (What Really Matters)
Within six months of starting, I did something that may seem counterintuitive. We visited both the FDIC and the Florida Office of Financial Regulation (OFR) to announce our restructuring plan. Although it was not required, we found that this proactive and transparent approach built valuable “regulatory capital” and strengthened important relationships between bankers and regulators. It laid out challenges, opportunities, and schedules. Then I kept updating my progress.
In my 16 years as president and CEO of two banks, I learned that regulators are not the enemy. They are partners with different missions. What I call “regulatory capital” – building professional and open relationships – is just as important as financial capital. When they get to know you, trust your judgment, and see consistent execution on your promises, it gives you strategic flexibility that is invaluable during the growth phase.
I have strived to communicate honestly and frequently with regulators, staff, investors, and customers regarding updates on the bank's turnaround plan, as well as its financial health and overall progress. Our senior management worked with a sense of urgency to foster a positive culture through clear leadership, sharp vision, and employee engagement to motivate staff and improve service quality.
From survival to growth: two key changes
People always ask me when I knew I had turned the corner. To be honest, I didn't believe this team could be successful. However, two operational changes were critical to moving from survival mode to growth mode.
First, we strategically consolidated our branches. We closed eight unprofitable stores while doubling our assets and deposits. This streamlined the branch footprint, supported growth and cost efficiency, and maintained customer access. Because it's no longer about brick-and-mortar stores. It's about finding the right balance between “bricks and clicks” – being where your customers are both digitally and physically.
Second, we have developed six new verticals beyond commercial real estate, including correspondent banking, yacht lending, association banking and small business lending. We have become an SBA-designated lending institution to expedite the approval of small business loans. Each industry represents a deliberate diversification strategy to avoid overexposure to a single sector.
We targeted sectors with stable fundamentals, such as established small businesses, law firms, medical practices, and specific niche areas where we could offer real expertise, such as homeowners and condominium associations. Our bad debts currently stand at 0.06% and our allowance for credit losses stands at a conservative 1.18%. It's not luck. Disciplined portfolio management and active management of loan-to-deposit ratios to ensure growth is supported with solid funding and capital buffers.
Diversification beyond traditional banking
Florida is a real estate-driven economy, and although we have diversified our commercial real estate portfolio, we will always remain an active player in that market. That's why we established Florida Peninsula Title Company as a wholly owned subsidiary.
Because title work is part of every real estate transaction, we decided to offer our clients the opportunity to have their title work handled in-house, efficiently and competitively. It is provided as a value-added service, so there is no obligation for the borrower to use it. But it also generates additional non-interest income while better serving customers.
This decision indicates how we evaluate new revenue sources. First, evaluate the benefits to the client. Next, evaluate the bank's value as a revenue opportunity. This is a thoughtful innovation that complements, rather than complicates, our core business.
IPO decision: timing and preparation
The company made a $40 million public offering in July 2021. People ask, why then? There are three reasons.
First, our financial position is strong and our operating model is proven. You only have one shot at an IPO. If you are not ready, the market will warn you painfully.
Second, after the pandemic, the market once again showed receptivity to new products. Timing is critical.
Third, and this is important, we simplified our capital structure. Prior to its IPO, US Century Bank had a complex capital stack consisting of multiple classes of stock created during its 2015 recapitalization. To manage this complexity, we used the IPO as a tool to simplify and streamline our capital base, making our capital structure more transparent and attractive to retail investors, and providing the bank with fresh capital to support our continued growth plans. Performance and transparency really attract capital.
Going public has brought more clarity to every aspect of our operations. Accountability to shareholders, quarterly financial reporting, and increased regulatory oversight all require a level of discipline to improve yourself.
Of course, being the CEO of a public company means strengthening your skill set to effectively manage investor relations, lead quarterly earnings reports, and strengthen regulatory relationships. In my current role, I have had to develop my ability to clearly explain the bank's financial performance, growth strategy, and risk management approach to a wide range of shareholders and analysts. This includes drafting transparent and confident messages to build and maintain investor trust and support. It is also important to be able to manage market expectations regarding quarterly results while focusing on sustainable, strategic growth, which is critical for community banks transitioning to public status.
Compete without compromising your identity
The tensions that all community banks face include: How can you compete with megabanks and fintechs without losing your value?
Our answer is: We don't try to be something we're not. We focus on personalized, relationship-driven banking with local decision-making bodies. We know the market deeply. Our customers are not account numbers, they are businesses that we understand.
But we're also investing aggressively in technology. Zelle, the latest digital banking platform for mobile banking, digital account opening, and both person-to-person and business-to-business transactions. We have selectively partnered with fintech companies for operational efficiencies, including innovative products and compliance features. Community banks will never outpace the development of technology companies. But you can take advantage of their innovations while maintaining control of your customer relationships and data.
High-touch service through automation. Our Association Bank customers benefit from API integration, automated lockbox payments, and ACH processing, reducing manual effort while providing the personalized guidance they value. We also actively support community activities, strengthening our role as a committed local financial partner and strengthening customer loyalty in ways that pure digital competitors cannot match.
If you are facing a turnaround situation, here is my short list of advice:
• Build your team instantly. Don't wait too many months for an “evaluation.” Focus on financial discipline and quickly deploy the right people to address asset quality issues, manage costs, and stabilize balance sheets by recapitalizing. A strong financial foundation enables strategic flexibility.
• Lead with clarity and accountability. We held executive committee meetings, loan committee meetings, and sales meetings every week. Discipline and responsibility must start at the top and be reflected throughout the organization.
• Communicate constantly. In other words, transparency builds trust with regulators, staff, investors, and customers, while silence creates fear and speculation.
• Innovate thoughtfully. Yes, modernize operations and technology. But don't abandon your core strengths or ignore risk management. It's all about balance.
• Think long-term while executing short-term. The market wants quarterly results. We need sustainable strategic growth. Manage expectations regarding both.
The moment at the top of the mountain
In July 2021, five years, seven months, and two days after I joined the bank, I stood ringing the closing bell at Nasdaq, surrounded by my board and management team, livestreaming to my staff in Miami.
That moment symbolized something bigger than an initial public offering. It was proof that the right people, a clear vision, disciplined execution, and an unwavering commitment to doing things right can take a financial institution from regulatory sanctions to top quartile performance and grow to more than $2.7 billion in assets. All of this proves what an incredible team can accomplish when they work well together.
It's not over yet. We continue to grow thoughtfully, leveraging technology to maintain our community identity and deepening our customer relationships while expanding our capabilities. Because the purpose of rebuilding is not to survive, but to build something sustainable.
And the work is never finished.
