John Thompson, President & Chief Executive Officer, Central Bank

August 2026 —In an interview with Invest:, John Thompson, president and CEO of Central Bank, discussed the economic headwinds and opportunities shaping Florida’s banking landscape. “Historically, housing has been one of the main drivers of the economy,” Thompson said. Thompson shared insights on interest rate volatility, housing affordability, digital modernization, and the evolving role of AI in banking.

What major developments have impacted Central Bank over the past year?

Interest rates have continued to be a major issue. The Federal Reserve recently reduced rates by 50 basis points, totaling 225 basis points in reductions. There’s ongoing debate about whether it will reduce them again in December. During the last rate cut, Chairman Jerome Powell mentioned a lack of data from government statistics, which made the decision-making process more difficult. That’s concerning, because relying solely on government statistics is problematic. Those figures are often inaccurate and subject to significant revisions in the months that follow. It might be time for the Fed to consider alternative methods for evaluating economic conditions. 

Florida has experienced a lot of growth, but housing affordability has become a serious concern. The cost of insurance, the price of homes, interest rates, and flood insurance premiums,  especially for those in flood zones, have made housing increasingly unaffordable. After COVID, we saw a wave of in-migration to Florida, and back then, housing was much more reasonably priced.

Mortgage financing was more accessible, and people could afford more because interest rates were lower. I don’t think we’ll return to the ultra-low interest rates of a few years ago, but if we could get back to around 5% on mortgages, we’d see some recovery in the housing market. Historically, housing has been one of the main drivers of the economy. It’s essential that we maintain a healthy housing market in Florida. Young people need to be able to buy homes. Older people who move here often swap properties and can handle the financial difference, but we need young people in Florida, not just retirees.

What is your perspective on interest rates compared to past decades?

When I first entered the banking industry in 1978, interest rates were never as low as they’ve been in recent years. Shortly after I started, inflation began to rise rapidly. By 1980, interest rates on loans reached as high as 21%, and inflation was around 18%. Over the next several decades, interest rates gradually declined. What seems like a high mortgage rate today — 6.5% or 7% — was considered reasonable back then. People today aren’t used to that. They got accustomed to 3% or 3.5% mortgage rates, which were historically low. I don’t think we’ll see those rates again. 

What recent initiatives have shaped your business and customer impact?

We’re still actively doing business, though our SBA 7A lending activity is minimal. Residential lending has also been reduced. However, our commercial loan production, primarily in commercial real estate and SBA 504, remains strong. We’ve been very cautious, and our credit quality is high. If you look at industry statistics, most banks currently have strong credit quality. We don’t generate much non-interest income at the moment, although some banks do. We operate with a limited number of branches — one in each of our markets.

We’re present in the Tampa Bay area, the Orlando area, Northeast Florida (Jacksonville), and Atlanta. Each market has a lender or lending team. Loan demand isn’t a problem for us. The challenge is the cost of funds, which remains elevated due to high interest rates. However, because rates have been high for a while, the yield on our loans has increased. If interest rates are reduced rapidly, we’ll see a significant improvement in our net interest margin. I think many banks would welcome that.

What would a rate drop mean for your income and lending strategy?

A reduction in interest rates would likely increase our non-interest income. We’d anticipate more opportunities to issue SBA 7A loans, where they make sense. Additionally, we have a number of portfolio residential loans that began as construction loans. We could refinance those into agency loans, which would generate substantial fee income. That’s something we’re watching closely. We’re optimistic about next year. 

On a broader level, we believe some of President Donald Trump’s policies are beneficial in the long run. He’s working to improve the international trade environment. The tariffs he introduced were part of a negotiation strategy. He took a firm position but was willing to negotiate toward a more balanced outcome. That has led to fairer trade agreements. Previously, foreign entities often had better deals than we did.

Now, trade is more reciprocal, which should benefit the overall economy. There’s also been an increase in foreign investment in the United States as a result of these policies. If they continue and prove successful, we believe the economy will benefit. We’re also optimistic about Florida’s economy. However, the housing affordability issue must be addressed. We don’t want to see out-migration. We want to encourage stable in-migration. That’s essential for continued growth.

How do you see financial centers evolving in the United States?

Recent developments in New York City may affect its status as the center of financial activity. Miami is increasingly becoming an international financial hub. It’s often referred to as the capital of Latin America from a financial standpoint. Texas is also emerging as a major player. Both states have the potential to host stock market activity traditionally centered in New York. I believe they could operate exchanges that rival those in New York. Things are changing, and the financial landscape is shifting.

How are you attracting and retaining top banking professionals?

We’ve been fortunate to hire good people. We’re very careful in our hiring process, and we’ve had minimal turnover in our lending staff. One major factor affecting talent and operations is Artificial Intelligence (AI). Last year, we spent a lot of time discussing AI, and it’s evolving rapidly. AI has both advantages and disadvantages. On the positive side, it makes operations more efficient. We can access research almost instantaneously, provided we ask the right questions and structure our queries properly. AI is still in its infancy, similar to how the internet was 20 years ago. The growth we’ll see in AI usage will be tremendous. 

However, we must be cautious. There’s also a dark side, including fraud. Fraudsters are using AI to create more sophisticated scams. This affects not just banking, but many industries. In terms of employment, AI may have the greatest impact on entry-level jobs for college graduates. For individuals with deep knowledge and experience, AI can be a helpful tool. But for those just entering the workforce without a strong skill set, AI may become direct competition.

How are you modernizing your digital presence?

We’re making significant upgrades to our data center and website this year. Most transactions now happen online, not in physical branches. Years ago, we offered online account opening, but we paused that initiative. With improved technology, we’re bringing it back. Efficiency is critical. Your website is the face of your bank. If it looks outdated or lacks energy, people assume the bank itself is outdated. Residential lending is increasingly done online, and we’re expanding our capabilities there. However, commercial lending, especially larger loans, requires personal interaction. We need to meet clients and assess credit quality directly. That’s not something we can automate.

Looking ahead, what are your strategic priorities for the next few years?

We’re focused on improving profitability and growing our asset size. We’re approaching $400 million and aim to exceed $500 million in the next couple of years. Maintaining high credit quality remains a top priority. We operate in markets that represent about 48% of the population across our MSAs. We may consider opening additional locations in Florida, and we’ll be studying that possibility. Next year, we plan to raise more capital to support our growth. Our focus is on Florida and Georgia. We believe Florida is one of the largest economies in the world, and it has the right attitude for business. It’s a great place to be.