Interview: Damon Moorer

Damon Moorer

President & CEO TCM Bank, N.A.

How does TCM Bank fit into the community banking sector?

The credit card market is highly competitive. A credit card program requires a highly specialized skill set to offer and manage. The recent adoption of mobile, contactless and other payment features has also accelerated.

A community bank that wants to offer a competitive and dynamic credit card program may not have the resources to do so. This is where TCM Bank comes in. TCM is a credit card-only community bank that offers customizable credit card programs to community banks across the country. Our solutions provide our clients the ability to compete directly with national issuers while providing the hightouch customer service community banks are known for.

What is the impact of the historically low interest rates for banks and how is TCM dealing with that?

The low interest rate environment compresses net interest margin, highlighting the need for a diverse product suite. Many payment products meet consumer needs and generate non-interest income. Utilization and spend can help offset the deficit created by the current low rate environment. Banks and merchants have the ability to reduce friction and increase customer satisfaction by supporting Account on File transactions (card stored at a merchant). Merchants offer the ability to authorize recurring payments at a set frequency and dollar amount. This allows a consumer or end user to set up a payment once, and future payments will automatically take place without further intervention.

How important a role did community banks play in the PPP loan program and its impact?

During this pandemic, community banks have been the nation’s economic first responders. The community bank industry quickly moved funds to where they were needed to get the economy afloat. We were able to respond to the needs of local businesses because as relationship lenders, we have a deep understanding of our clients and communities.

Florida’s no state income tax coupled with Tampa Bay’s high quality of life bode well for the future of the banking and financial sectors.

( ) high-tech verticals were two of the high-performing sectors throughout the pandemic, it comes as no surprise that Tampa’s top acquisitions revolved around that space.

On the venture capital front, Tampa Bay was experiencing an exponential rise in the number of deals closed between 2015 and 2018, increasing by 115 in only four years. In 2020, the Tampa Bay region raised close to $186 million from 41 venture capital deals, as outlined by the Pitchbook and National Venture Capital Association report. Even though 2019 performed better at $198.5 million in venture capital deals, the 2020 figure was still a significant jump from 2018’s $129.4 million.

The Federal PPP loan program rolled out throughout 2020 also helped push up bank deposits across the board despite the downturn, and despite the challenges of the ever-changing landscape. “The first (takeaway from the PPP program) was that it was a necessary tool and we are glad it was put together because COVID-19 had no bias over who or what it affected. When the government came out with it, however, some of the rules were unclear and we worked to find clarity. In my quarter century of banking expertise, there has never

been a greater time than during the PPP process,” Ken Ronecker, President, Commercial Banking, Florida North, Bank OZK, told Invest:.

Last year, Tampa ranked fourth in Florida overall in terms of PPP loan allocations, with 18,782 loans representing $1.93 billion. Across the Tampa Bay region, more than $6.6 billion was injected through these loans. Bank of America and Truist were neck and neck as the largest PPP providers in the area, with BofA proving $555 million and Truist at $599 million.

Historically low mortgage rates are showing a slight uptick in the area, although they remain nowhere near unaffordable. On Dec. 31, 2020, Freddie Mac’s 30-year average mortgage rate stood at 2.67%, increasing to 3.18% in April 2021. The rate was back down below 3% by May but is forecast to end the year higher but still affordable. Cost-effective interest rates enable first-time buyers and young professionals to capitalize on the opportunity to become homeowners. For banks, however, it leads to margin compression that impacts revenues. Despite the squeeze, many bankers like Allen Brinkman, market president for West Florida at Seacoast Bank, see it as a glass half-full situation. “We look at it as a moment in time that is great for the consumer. From that lens, our long-term view is for the bank to focus on building great customer relationships cemented on the delivery of solutions that are highly favorable to them. If you are an organization that is short-term focused, it ( )

Timothy Schar

President, Tampa Market – Truist

The pandemic has presented atypical economic headwinds that we’ve never seen before. For instance, usually in a downturn the car industry struggles. In this downturn, it flourished. During a recession, municipalities would typically delay projects, and instead we’ve seen projects completed that weren’t supposed to be built for another two years. There was a mindset of using this time to prepare for the recovery, and we were able to provide support. The ability to plan for a post-pandemic environment with our clients was the most unexpected outcome. As well, some of our clients used this as an opportunity to expand their business or make acquisitions, and we’ve provided financing for them to do that. For example, we provided additional working capital when more inventory was needed to meet greater demand than expected. There were many needs that we weren’t expecting but for which we were able to extend additional capital.