Key points:

• • Rising rates and regulatory pressure pushed banks to shift from lending-focused models to deposit and liquidity strategies.
• • Encore differentiates through high-touch, relationship-driven banking supported by strong technology investments.
• • Growth is centered on scaling relationships, referrals, and efficient operations rather than expanding physical branches.

April 2026 —In an interview with Invest:, Michael Sharpton explained how rapid interest rate increases and heightened regulatory focus have reshaped banking strategy across the Carolinas, pushing banks to prioritize deposits, liquidity, and customer engagement. “We are willing to work hard because we believe in what we are building in the Carolinas — and we believe clients will feel that commitment in how we show up every day,” Sharpton said.

What economic trends have had the biggest impact on Encore Bank in the Carolinas over the past year?

Banking has been hard for the last two years, but especially the last year. Interest rates increased quickly. Then, regulators increasingly shifted their focus toward liquidity ratios and deposit numbers. Like most banks, we had to pivot hard from being a loan and lending bank to being more balanced as a deposit-gathering bank. We were fortunate to be strong financially, so we were able to do that fairly easily, but it was still a big shift for our people.

That shift meant asking different questions — where do customers bank, where they bank personally, and where their friends, family, and employees bank. Broadly, profitability in banking has suffered over the past two years, and while it is starting to come back, it was driven by an extreme lack of loan demand and rapid rate increases. There just were not many loans out there that worked cash flow-wise.

Banks ultimately make money on the spread between deposits and lending, so when you aren’t lending, that gets tougher. We weathered it, and I would say we came out stronger, but it required clear communication and a lot of hard work — going out, talking to customers, explaining the new world, and finding ways to generate revenue without generating a lot of loans.

In a banking hub like Charlotte, how do you differentiate Encore Bank?

We are a service-focused bank. To me, it is about the people. Banking products are regulated, so they are pretty common — everybody has roughly the same tools. That means having outstanding people calling on outstanding prospects and customers, taking care of them, and being responsive.

We have a high-touch boutique feel because that is how we think we fit the market. Even though there are plenty of banks in the Charlotte area, we find that there is a niche of business owners who are still underserved. Bigger banks, due to costs, regulation, and sheer size, are not always able to deliver the customer service that smaller banks can.

That does not necessarily mean small businesses are our only focus. We bank some large revenue companies, but they bank with us because of the customer service, the touch, and the feeling of being valued as a client. We have also invested significantly in technology. That allows our customers to bank how they want to bank, in a sophisticated and efficient way.

Which sectors are driving demand for your services, and how are you approaching lending in this cycle?

The mix of clients we are bringing on is diverse. It ranges from mom-and-pop-owned companies to businesses with a couple of hundred employees. We do a lot with professional services, manufacturing, and specialized segments — law firms, architecture firms, accounting firms — but I cannot say it is one particular industry. It is broad and diverse across the board. Most of that has to do with our outstanding bankers and partners.

We have worked all of our careers to establish networks of customers. Those customers believe in what we are doing and introduce us to other people, but there isn’t a size limit on referrals. We want people we bank to introduce us to others. Word of mouth is a strong part of our culture.

Part of that customer diversity is also because some banks have shifted their focus upstream to larger customers or larger areas. They have not abandoned markets, but they may not service the outlying areas of Charlotte or places like York County in South Carolina or Monroe County in North Carolina the way they planned to or even used to.

Another factor is turnover. Banking is about people, and if you have had the same banker for 10 years and that person retires or moves on, sometimes that becomes a catalyst to consider changing banks. We want to be consistent in our approach, with veteran bankers and low turnover, so we can win business when clients are looking for a more stable, relationship-based experience.

We are also referral-based, as I mentioned earlier. Referrals from current clients are critical, and sometimes they cross county lines and business segments. Every time we think we are getting into one or two segments, it widens, because relationships do not stay neatly inside one category.

How is technology changing how you operate, and where are you investing?

We fundamentally think banking is changing, like a lot of industries. For us, that means we do not build brick-and-mortar branches all over a market. In our opinion, that isn’t how people bank as much anymore. We build one office in every city. We are currently in Charlotte and Winston-Salem in North Carolina, and Charleston and Greenville in South Carolina. We make it a centralized place easy to get to or describe to someone in a sentence or less. But people are banking with technology — their phones and laptops — and less in branches. Most banks don’t have decision makers in branches anyway, so with our model, local decision-making is also important.

We take the money we would typically invest in a branch network and invest it in technology. We do some of that in a proprietary way by developing systems internally, but more importantly, we partner with over two dozen financial technology companies. That lets us plug and play with the latest and greatest tools, rather than getting stuck with a legacy system we have spent millions on and cannot move away from. Our client experience through technology is strong, and we feel like we function as well as a big bank in that regard because we have made the investment.

Technology also matters on the fraud side. Fraudsters stay ahead, and having good technology to combat that is essential. Our goal is to give clients the ability to bank the way they want to bank — some may never come into a branch — while still delivering a relationship-driven experience, backed up by outstanding technology and tools to help them run their business.

What are your top priorities for the next three to five years in the Carolinas?

We are absolutely in growth mode. Being four and a half years into the Carolinas means we have a lot of the heavy expense behind us — the buildout, the technology, the foundational infrastructure. Now it is about building scale and developing relationships that help us grow as a bank and help companies grow, too.

Our focus is on deepening existing relationships and developing new ones. We tell our story in a personal way — one-on-one conversations — and we do not rely on big, broad advertising. We grow through referrals, reputation, and being present in the market. We also want to keep our model of efficiency and relationships. People are the most important element — internally and externally. We want to know the businesses in this area, which ones do it well, and how we can partner with them.

Sometimes that partnership is educational. We host events and speak on topics that help business owners plan — succession planning, navigating fraud, or even how to become more bankable. A lot of people have great ideas, but if they cannot run the business, they will never get their product and knowledge out there. If someone is open to learning, we are willing to take the time to help educate them on how to use a line of credit effectively, how to manage a cash conversion cycle, and how to grow in a sustainable way.

What is one element of Encore’s culture or model you want business leaders to understand?

A lot of banks are measured by earnings and market share. Earnings are important — that is true for any business. Encore isn’t beholden to a quarterly earnings call, pivoting strategy every few meetings. We want to grow, but we do not focus on being the biggest bank in Charlotte. We already know we cannot be; there are lots of great banks here already. Our job is to create one of the best banks, especially around customer service and local decision-making. We give boutique banking a name and a face, creating an outstanding customer experience. That means we keep you out of the 800 number, automated service, and let you talk to a real person.

Another unique aspect is that 83% of Encore employees have invested in Encore Bank. We are privately held, and most of our employees have written a check to join because they believe in the model, the mission, and their ability to execute. That is real skin in the game. Our people have bet on themselves to deliver a fantastic banking experience. It is not easy, but we are willing to work hard because we believe in what we are building in the Carolinas — and we believe clients will feel that commitment in how we show up every day.

Want more? Read the Invest: Charlotte report.