Ron Day President & CEO First Carolina Bank
How would you characterize the state of business for your operations? It has never been better. We have doubled the size of our bank in the last 18 months, crossing the $1.2 billion asset mark in May 2021. We’ve been in quite a unique position here in North Carolina. The number of statechartered banks has decreased from over 110 prior to the 2008-09 recession to less than 40 today. One of the things that we have learned through all of this is that customers like dealing with smaller institutions that are responsive and decisive. We were only a moderate participant in the PPP loan program, focusing mostly on our existing customers and a high level of personal attention with them throughout origination and now forgiveness of these essential loans. We were able to take relationships from larger banks because we were more responsive on full operating relationships throughout the pandemic (not just PPP). Our opportunities for attracting new customers and hiring new people who wanted to come to a less complicated platform and a place where they could serve their customers have really been remarkable. What is First Carolina’s Bank vision for the future of its retail footprint? Our strategy is not to have multiple locations per market. We have one location per market. We focus first on finding a good leader and then opening one office and serving the market from that one office. We tend to build our customer footing by bringing in commercial business that in turn leads to additional referrals and retail opportunities with the employees of those businesses. We focus on operating efficiency even as we invest in new markets, and lower is better. We are the most efficiently run bank in the state of North Carolina, and rank in the national Top 20 in that regard. Our efficiency ratio is around 40%, which means that for every 40 cents of noninterest expense, we generate a dollar of revenue. That is a testament to our talented people and demonstrates our excellent operating processes. 112
| Invest: Raleigh-Durham 2021 | BANKING & FINANCE
The Triangle attracts investments from local and international venture capital firms.
( ) Triangle as a priority market due to the ripe opportunity not only in terms of retail banking (doubling its local branches from five to 10 and projecting another 10 for 2021 alone), but also in terms of commercial banking and wealth management. Raleigh-based First Citizens is on schedule to conclude its CIT Group acquisition announced in October 2020, despite the COVID-19 complications. By 2Q21, the new financial institution with more than $100 billion in assets emerging from the deal will turn First Citizens into one of the Top 20 largest banks in the United States. Even with the double challenge of a merger and navigating a pandemic, the bank closed 2020 with total pre-merger assets close to $50 billion. Southern Pines-based First Bank also reported strong numbers with uninterrupted, organic growth in Raleigh. The Raleigh office boasts the largest organic growth of the bank’s entire 103-branch network. Also driving the sector is a booming real estate
