2 min read September 2022 — Antonio Uribe, president and CEO at Terrabank, spoke with Invest: about a variety of topics including his organization’s new banking platform TerraLink, retaining and hiring new employees, and how they continue to “cater to the international client”.
What have been some of the primary highlights and milestones for Terrabank over the last year?
There are several, but one that is very important is that for the first time in 10 years we opened a new branch on Sunset Drive, and we are moving our branch in front of FIU to a very nice location in Doral. Other than that, our portfolio has grown substantially over the last year. It has been very positive since our cost of funds is so low, and we can increase our loan portfolio. Also, our account opening platform called TerraLink has been very successful domestically and internationally. It allows customers to open accounts without being physically at a bank branch.
How would you assess the current state of the banking industry in South Florida?
The market is very competitive. The liquidity from the pandemic still exists in many places, so the amount of loans issued is impressive. From an asset and liability point of view, this is an important time for banks as rates increase. This is an opportunity for new business, but there is also demand from consumers. We are working to maintain the margin at this time of increasing rates.
What differentiates Terrabank from competitors in the region?
There are few banks here that cater to the international client. We are a community bank with an international presence. We cater to Latin American clients from an account and transactional point of view, and also for residential mortgages. We are one of only a very small number of banks in this market that makes residential loans to foreign investors. That is why we are unique in the region.
What are some of the primary challenges that your clients are facing in the current landscape?
They are looking for the personalized service that community banks provide, but also the opportunity to open international accounts for non-residents. Overall, community banks provide the best service level and that is what our clients expect. They want personalized service, where they can walk into a bank office, and they don’t have to call and wait on an 1-800 line. We are able to provide that service, and customers are met by someone that is interested in providing services that meet their needs.
What new opportunities have opened with the growth and migration to South Florida?
Residential lending is the biggest opportunity because there are few competitors in that space. Our ability to offer these to residents and international individuals is a great opportunity.
How does TerraLink and other technologies help you to better service your clients?
TerraLink is an account opening platform. You can click and open an account all online. It allows you to fill out the forms and complete identity procedures remotely. You just have to send the signature card, and based on that information we can do all of our due diligence. We can open accounts quickly, especially on the international side. Customers used to have to wait for the paperwork to be sent and received, but now it is much faster and efficient.
How has the labor shortage impacted Terrabank and what strategies are you using to retain and hire talent?
The pressure from the market to hire and keep good employees has changed considerably since the pandemic. It is difficult to get people to come into the bank. We have a hybrid model here, where many people work two to three days a week in the office, and from home the rest of the week. Still, some people only want to work remotely. Our compliance department works 100% remote, and our credit analysis sector works in a hybrid form. But for the rest of the bank, hybrid is not possible because customers want to see a friendly face. It is tough to maintain inter-relational business when everyone is working remotely. We had to find a balance, and it is a challenge, but these modes help to retain and hire good talent.
How have you addressed employee burnout at Terrabank?
As a community bank, we are a family with only 109 employees. I am proud to say that I know most of them. Even though sometimes it is challenging, particularly at the branches because they need a physical presence, it is that family relationship that helps us to provide support and balance for employees. This makes it a pleasant place to work. I can’t think of an instance of where an employee left because they were burned out.
What issues are you keeping an eye on from the regulatory front?
Consumer compliance is always an important thing to watch. The CFPB is obviously keeping a watch on how our consumers are supported, and that is something we are always keeping up with at the bank. The other part is the balance between assets and liabilities and the different ratios therein. We continually work to avoid regulatory issues.
What is the biggest challenge that Terrabank is currently facing?
Our biggest challenge is too much growth. We have grown so much that we need to keep increasing capital and that takes time because we need to work with regulators. We need to grow beyond the $700 million in assets we have today.
What is your outlook for Terrabank moving forward?
I think that our outlook is very positive. We have the lowest funding cost in the market at seven basis points. That has been an achievement based on our client-based services and a testament that they can use our cash management products efficiently. Our top priority is to maintain this cost of funds, which is fundamental. We want to grow our portfolio to take advantage of this cost of funds, but also, we want to keep up the concierge service that our customers deserve.
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