David Booth, SVP & Area Executive, First Bank Raleigh

Invest: spoke with David Booth, SVP and area executive of First Bank Raleigh, about how falling interest rates, sustained population growth, and disciplined lending practices are shaping the Triangle’s business climate. “We’re seeing a lot of pent-up demand coming back into the market, and that’s been exciting for both our clients and the region,” Booth said.

What have been the most meaningful changes in the Triangle’s business environment over the past year, and how have those changes shown up in client activity?

Over the past year, the banking environment has been dynamic. One of the biggest drivers has been interest rates. In 2024, rates were roughly a point and a half higher than they are today, which caused a lot of businesses to pause or delay decisions. As rates began to come down, we saw pent-up demand return quickly.

We’re seeing a lot of pent-up demand coming back into the market, and that’s been exciting for both our clients and the region. People continue to move into the Triangle, and with that comes the need for access to capital, whether that’s for real estate, equipment, expansion, or working capital. From a banking standpoint, we’ve also seen improved credit performance, which gives both banks and borrowers more confidence to move forward.

For First Bank specifically, 2025 was a strong year. We experienced solid loan growth and continued investing in our people. We hired 15 new commercial lenders across North Carolina, including one here in the Raleigh-Durham market, to support that growing demand. Even with challenges like inflation and tariffs creating uncertainty, overall activity increased, and that was encouraging.

How would you describe the current health of middle-market and locally owned businesses in the Raleigh area?

We’re fortunate to be in a healthy part of the country. Middle-market businesses in the Triangle are generally doing well, and many are still hiring, even if not at the same pace we saw a few years ago. Compared to national averages, this region continues to outperform in terms of growth and opportunity.

North Carolina’s low corporate tax rate plays a significant role in that. We continue to see companies relocate here because it’s a place where people can live, work, and build businesses with access to strong schools, major airports, and a high-quality of life. Those factors all support middle-market growth.

That said, there are challenges. Tariffs, inflation, labor costs, and affordability pressures have affected certain sectors more than others. Housing and land prices have increased significantly, which sometimes pushes businesses and employees to look just outside the Triangle for more affordable options. Even so, most locally owned and middle-market companies are navigating those pressures effectively, and overall sentiment remains positive.

First Bank operates in a highly competitive banking market. How do you differentiate yourselves for business clients?

Competition is intense, especially in a market like the Triangle. Many large national banks have a long history here, but what sets First Bank apart is our local presence and accessibility. We’re the largest community bank headquartered in North Carolina, and that matters to many business owners.

Middle-market companies want bankers who understand the local market and can be on-site quickly. They don’t want to wait for someone to fly in or deal with a distant call center. Our teams live and work in the communities we serve, and that allows us to build stronger relationships and respond faster when clients need us.

We also focus heavily on being advisors, not just lenders. Businesses are busy running their operations, and they value insight into market trends, financing structures, and risk management strategies. That consultative approach is a big reason clients choose to work with us.

How are inflation and tariffs affecting businesses, and what role can banks play in helping clients navigate those pressures?

Inflation and tariffs have created real challenges, particularly for businesses involved in construction and manufacturing. Material costs, such as copper and other commodities, have risen, and that impacts margins and project timelines.

From a banking perspective, one way we help is by adjusting lines of credit to reflect higher inventory and input costs. If it costs more to purchase the same materials, businesses need additional liquidity to operate effectively. Beyond that, we help clients think strategically about timing purchases, managing cash flow, and, in some cases, using financial tools to mitigate volatility.

Our role is to provide perspective. We stay informed on what’s happening locally, nationally, and globally, and we help clients understand how those trends may affect their business. That guidance can be just as valuable as the capital itself.

Technology continues to reshape banking. How is First Bank approaching innovation while maintaining strong client relationships?

Technology, particularly AI, is becoming increasingly important in banking. Our approach is to adopt it responsibly and intentionally. Internally, we’re exploring how AI can support risk management, credit analysis, and operational efficiency, but we’re being careful to ensure it aligns with our values and regulatory responsibilities.

We see technology as a tool to enhance service, not replace relationships. Clients still want human interaction, especially when making complex financial decisions. Our goal is to use technology to deliver faster, better service while preserving that personal connection.

If banks fail to adapt, they risk falling behind, much like organizations that resisted the internet or mobile technology years ago. Additionally, responsible use is critical, and we’re committed to testing and implementing solutions thoughtfully.

First Bank is also active in the community. What initiatives are you most proud of?

Community involvement is a core part of who we are. One initiative we’re particularly proud of is a food drive we held across our branches in November. Employees and customers came together to collect 47,000 pounds of food and donated money to cover an additional 20,000 meals for families through Second Harvest Food Bank.

We’re also proud to be a partner of the Carolina Hurricanes through the Good Goals program that supports the Carolina Hurricanes Foundation every time the Hurricanes score a goal. That partnership allows us to support an organization that brings the community together while also giving back through charitable initiatives. In a region with strong college rivalries, the Hurricanes are something everyone can rally around, making the partnership especially meaningful.

These efforts reflect our responsibility as a corporate citizen. Giving back isn’t just the right thing to do; it strengthens relationships and reinforces trust within the communities we serve.

What role do local banks play in reinforcing the Triangle’s economic stability and development?

Local banks are essential to economic stability. At the most basic level, we take deposits and lend those funds back into the communities we serve. Doing that responsibly, with strong credit discipline, supports sustainable growth.

Beyond lending, we contribute through volunteerism, philanthropy, and partnerships with local organizations. We also play a role in guiding businesses through economic cycles by providing insight and stability when conditions change.

For First Bank, maintaining a strong credit culture has been critical. Our recent performance reflects that discipline, with improved credit metrics and continued growth. Being embedded in our communities allows us to balance opportunity with responsibility, and that benefits both our clients and the broader regional economy.

Looking ahead, what are your top priorities for the next three to five years?

Our focus is on steady, sustainable growth. The Triangle and North Carolina as a whole continue to attract significant investment, and projects like the redevelopment of the Lenovo Center in Raleigh highlight the scale of opportunities.

We expect continued demand for financing across logistics, advanced manufacturing, and technology sectors. We will also remain disciplined in our credit decisions and continue investing in technology that supports efficiency and service.

It’s an exciting time to be part of this region. The combination of population growth, business investment, and community strength creates long-term opportunity, and First Bank is committed to playing a positive role in that future.