Spotlight On: Luis de la Aguilera, President & CEO, U.S. Century Bank

Spotlight On: Luis de la Aguilera, President & CEO, U.S. Century Bank

2023-03-29T16:34:12-04:00March 24th, 2023|Banking & Finance, Economy, Miami, Spotlight On|

3 min read March 2023 Luis de la Aguilera, president, CEO and director of U.S. Century Bank, spoke with Invest: about the current opportunities in the Florida market, shifts in the bank’s client base and his expectations for growth in the near term. “We are in a really good position to become a leading franchise in what I feel is one of the most attractive banking markets in the United States,” he said.

What opportunities are seen in the South Florida market?

Miami-Dade County has seen a good amount of recent M&A activity. Just in the last six months, there were three banks that were either acquired or announced a transaction. That is almost $5 billion in the local bank market that is now rolling up into larger local and out-of-state banks. These market dynamics present a great opportunity to attract those customers who may not want to stay with a larger bank and helps us attract new talent that may not want to stay with a bigger organization. We look forward to building our talent base because of this situation. What may be a challenge under certain circumstances has been an opportunity for us. 

There are over 33 million small businesses in the country, and Miami-Dade is one of the largest small business markets. These are the customers we serve. They want real relationships, accessibility to decision-makers who are local, and bankers who know and will support them. At U.S. Century Bank, we know our clients, their businesses and their families. This level of relationship is invaluable for our business customers.

Our bank and our brand have grown soundly over the years, and we are proud to be serving the South Florida market for the past 20 years. 

What new technology have you incorporated?

A big challenge banks have today is that customers don’t come into the bank anymore. How do you engage a client when they are physically not coming in? There has been a huge paradigm shift to contact customers through digital channels. The banks that will be successful will be constantly evolving with technology and paying attention to the needs of the customer. Banking access must be immediate. Conducting business across digital channels is the new normal and what customers expect. 

In the last three years, we upgraded our core system and treasury management platform for small businesses. We launched Zelle on the consumer side and plan to launch Zelle for Business later this year. The bank has also gone paperless. Three years ago, there were files everywhere. Now, everything is transacted digitally. Our ATM system has been completely upgraded. Our debit cards now have EMV chip technology to protect our customers against fraud. In the second quarter, we will roll out a new loan operating system where loans can be processed digitally from beginning to end, from application to underwriting to closing and funding. 

How has your client base shifted?

When the market crashed in 2008 and property values went down 50-60%, many banks were significantly hurt. I arrived at U.S. Century Bank in 2016, and at the time, the largest portion of the loan portfolio was commercial real estate. Since then, we have developed several business verticals focused on diversifying our portfolio by increasing C&I loans. For example, we have a very dynamic and growing book of business in the homeowners and condominium association space. Twenty-five percent of the population of Florida lives either in a condominium or in a homeowners’ association. We see this market as having huge potential. 

In 2020, we expanded our Small Business Administration (SBA) lending and have been ranked as a top community bank lender in the SBA 7(a) program 2021-2022. In 2021, we launched a business line for yacht financing focused on high-net-worth individuals. These are not small boats; these are high-end yachts. We have developed the competencies to service the expectations of this market very well. 

How are you dealing with changing interest rates?

In my 41 years, I’ve never seen interest rates increase like they did this past year. The Fed raises rates when the economy is starting to overheat, in order to curb inflation. It cuts rates when the economy slows, which usually leads to high unemployment. We’ve seen loan rates move at an unprecedented rate since March 2022. Fed funds went from 25 basis points to 475 basis points in the span of nine months. The market’s expectation is that there will be a slowdown by the second half of the year. However, Florida tends to be more insulated from the rest of the country due, in part, to the foreign capital that ebbs and flows into the state when economic conditions are tough overseas. While we see positive trends, we are a conservative bank by nature and maintain prudent lending policies.  

What migration trends have you seen recently?

When you look at the population, Florida and Texas are the two consistently fastest-growing state economies in the country. Ever since the COVID pandemic, there has also been a considerable rise in migration from the northeast. Florida has a much more business-friendly climate, especially when you compare taxes between Florida and the rest of the country. We continue to see migration from the Northeast, the Midwest, and from California. Without a doubt, this inflow of new residents will be very beneficial for the state. 

What are your growth expectations?

Our focus is to continue growing the bank organically and soundly. We are in a really good position to become a leading bank franchise in what I feel is one of the most attractive markets in the United States. The state’s population is expected to grow in the next five years, at almost double the national rate. The growth in our portfolio is representative of the demand here. Our assets have grown 111% in the last seven years, our loan book by 105%, and our deposit book about 130%. The great majority of that growth is all in that small- to medium-size business market. My plans are to continue that organic growth strategy, which is commercially focused. Our path forward is organic. Although we are not presently focused on M&A for the near term, it will always be on the table. We look forward to growing soundly, profitably, and efficiently as we leverage technology, expand our services and product lines, and attract top talent. This formula has served our clients well, and that’s what it is all about.

For more information, visit:

https://www.uscentury.com/

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