3 min read October 2023 — In an interview with Invest:, April Bailey, Amegy Bank’s Central Texas market president, discussed the bank’s contributions and impact in San Antonio, emphasizing its commitment to small businesses, digital transformation and community involvement. Celebrating 20 years at the award-winning bank, she also outlined expansion plans into Austin and surrounding areas for the coming years.
What have been the bank’s key contributions and impact in the San Antonio region over the past 12 months?
Amegy Bank has been in San Antonio for 16 years, experiencing double-digit growth for the past 12 years. We have over $2.5 billion in loan commitments and operate five branches in San Antonio, along with branches in New Braunfels and Austin. We’re committed to this market and open to acquisitions and further branch expansion. This area is known for its diverse industries and is home to over 160,000 students across 16 colleges and universities, making it a thriving and promising market. I moved to San Antonio with my family five months ago because we recognized the market’s exciting potential.
What specific advantages does Amegy Bank bring to the banking industry?
Amegy Bank has been in the San Antonio market for many years and people know they can count on us. In comparing our services with competitors, we offer a comprehensive range of products and capabilities similar to those of large global banks.. However, our size allows us to maintain a personal touch with our clients, ensuring they have a dedicated and trusted point of contact. Some clients find that larger banks may not offer this level of interpersonal and hands-on attention, which is where we excel. We take pride in delivering outstanding service and providing investment banking services that set us apart from other regional banks. This means we can assist clients with various specialized needs, such as selling a family business or transitioning to the next generation. We can handle a wide spectrum of services, from consumer to business, without the need to refer clients elsewhere.
Can you highlight the key aspects of your banking services?
Our primary focus and where we observe significant demand is in the commercial and industrial sector, catering to companies with revenues ranging from $20 million to $500 million. While we specifically target small to mid-sized businesses, and positioning ourselves as a dedicated business bank, many large companies count on us for our agility and flexibility. Our offerings span from small business loans to syndications, where we may lead a consortium of three or more banks for larger facilities. Small businesses are the cornerstone of this nation and our goal is to add value by assisting them in various ways. We aim to ensure these companies know how to elevate their business to the next level by providing valuable resources and advice. Whether a company is looking to expand through equipment purchase, facility construction or acquisitions, we aim to present viable options for their consideration based on our past experiences. In essence, we strive to be advisers as these businesses navigate the next phase of their growth.
How does the bank fulfill its commitment to small businesses and the community?
In 2022, Amegy and its parent company, Zions, introduced a special purpose credit program, the Small Business Diversity Banking Program, to aid small businesses, prioritizing underserved communities like women, minorities, veterans and LGBTQ+. The program adjusted credit criteria to help previously declined applicants gain access to additional credit. As of October 2023, we’ve furnished over $36 million in these types of loans, with $8 million directed to Central Texas. These loans range from $250,000 to $500,000, ensuring broad small-business access to capital. We take pride in being one of the first in the country to launch this initiative which was deemed as the industry standard by the American Bankers Association earlier this year.
Are there specific regulatory or policy developments in the pipeline that could influence the banking industry in the future?
Regarding the recent large bank failures, it’s likely that more regulations will follow, potentially leading to higher capital requirements and increased FDIC (Federal Deposit Insurance Corporation) insurance for all banks. We also emphasize our commitment to supporting the entire community through Community Reinvestment Act products. Our credit quality has remained healthy and we maintain our rigorous regulation standards. Despite not being a $100 billion asset bank, with our assets at around $89 billion, we voluntarily undergo federal stress testing to ensure alignment with capital requirements. This proactive approach will likely continue.
How does the current period of uncertainty impact the banking industry and its clients?
This year has indeed been an adjustment year for our clients, as interest and deposit rates have risen rapidly. Business lending has softened but our fourth quarter shows strength as borrowers adapt to these new interest rate conditions. We’ve also been educating our clients that they can now earn money on their deposits, even though they must pay more on loans. The spreads remain similar to what they were before. There’s a slight softening, particularly in mortgages and possibly commercial real estate in the office sector; however, we’re witnessing a nice uptick in the fourth quarter, which is exciting.
How is the bank positioning itself in the evolving digital financial landscape?
We are about to conclude a multiyear transformation of our loan and deposit platform, which involves our affiliate banks throughout the West Coast and in Texas. This transformation centers on digitizing our banking system, making us one of the pioneers in this endeavor. This move is significant because the digital landscape is constantly evolving and with this modern banking platform, we can swiftly incorporate technological updates. Our primary objective is to offer rapid and efficient service to our clients, whether in person or through technology. While we value personal interactions with our clients, we are equally committed to ensuring that our technology side remains up-to-date with the latest enhancements. This investment is substantial, and we are eagerly anticipating the benefits it will bring to our clients.
How is the bank approaching cybersecurity?
Cybersecurity is now the top priority for banks, surpassing concerns about loan and credit losses. Amegy Bank is hosting a seminar on check fraud and cybersecurity to inform clients about protective measures for their businesses. Ensuring clients are well-informed is crucial because they often feel lost in dealing with cybersecurity issues. Seminars and education are key in addressing this concern.
What advice would you offer to those considering starting a business or investing in San Antonio?
Moving to San Antonio, I’ve discovered that everyone is warm and welcoming. The business community here is collaborative and supportive. Greater: SATX assists businesses relocating to the region and there are abundant resources available, including various chambers of commerce. At Amegy Bank, we help prospective clients looking to start a business by guiding them on essential aspects like business plans, insurance, and legal matters, making valuable connections to aid their journey. This city fosters an open and welcoming environment for such endeavors.
What is Amegy Bank’s approach to community involvement and volunteer programs for its employees?
Our commitment to the community is a top priority at Amegy Bank. Last year, we donated over $1 million to various charitable organizations, primarily in education and community services, and supported more than 250 nonprofits. We take pride in our internal volunteer program, Amegy Cares, which provides full-time employees with eight hours per quarter and part-time employees with four hours per quarter to volunteer in their community without using their regular time off. This initiative not only allows our employees to give back but also fosters a thoughtful, caring and collaborative culture within the bank. Additionally, each year the bank organizes an internal United Way Campaign, encouraging employee participation through fundraising activities which produce outstanding results each year. In 2023, employees collectively raised almost $900,000 for United Way. It’s essential for us, as bankers, to contribute to our community and it’s one of the reasons I’m passionate about banking. I’m proud that we can make a difference in this way.
What are your top priorities for Amegy Bank in the next two to three years?
We want to maintain our growth and expand further into Austin and the surrounding areas. This requires additional talent, including more bankers. We have an in-house training program called the Banker Development Program, which has been successful in developing our leaders. We aim to promote from within and offer opportunities for our young talent. However, we are open to hiring from outside if necessary. We are enthusiastic about making further investments in this market and are committed to its growth.
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