Spotlight On: John Thompson, President & CEO, Central Bank
April 2025 — In an interview with Invest:, John Thompson, president and CEO of Central Bank, discussed recent milestones, market trends, economic challenges, and the impact of technology on banking. “One of the biggest advancements we’re integrating is AI. AI has tremendous potential in banking, but it needs to be implemented responsibly,” he said.
What have been some key milestones and achievements for Central Bank over the past 12 to 18 months?
We continue to see strong Commercial Real Estate loan demand. Residential Real Estate lending, however, has been severely affected by high interest rates. As for government-guaranteed lending, such as SBA 7(a) and USDA-backed loans, we engaged in some SBA lending, but overall volume has dropped significantly due to interest rates.
Nationally, there was substantial SBA loan volume, but first-payment defaults were also at an all-time high. Given this, we prioritize maintaining strong credit quality.
How have the Florida and Georgia markets evolved over the past few years, and what opportunities do you see moving forward?
High Interest rates have affected commercial real estate loan volume. That said, we’ve seen good production across all our offices. In Central Florida, we have an office in Tampa and another in Winter Park and both have experienced solid demand. In Northeast Florida, we have a presence in Jacksonville/St Augustine, where we’ve also done a fair amount of lending. In Northeast Atlanta, we entered the market two years ago and recently closed a $6 million deal.
We’re working to expand our residential loan production in Georgia, though it’s a challenge right now. We’re still offering portfolio 5/1 ARMs and construction loans, but primarily for higher-priced homes. Despite the slowdown, we’ve retained our staff because we anticipate a turnaround in residential rates as the year progresses.
We’ve also expanded our Commercial Real Estate lending teams in both Orlando/Winter Park and Northeast Atlanta.
How has Central Bank adapted its approach to relationship-building and risk management to support the influx of businesses and individuals?
Our loan and deposit growth directly reflect our commitment to supporting this expansion. When people move to a new community, they need a bank. We offer competitive deposit rates and maintain a full suite of products to meet customer needs.
However, our biggest challenge — and the industry’s biggest challenge — is high interest rates. The Federal Reserve’s policies have significantly impacted net interest margins due to the rising cost of funds. If the Fed cuts rates and deposit rates drop, we anticipate an improvement in our margins, leading to increased revenue for the bank.
This cycle is normal: when interest rates rise rapidly, profit spreads tighten. I believe we’re currently in the worst residential housing market in two decades in terms of home purchases.
I’ll say this — without getting political — the previous economic status quo was not ideal. With the new administration, which is more business-oriented and has a solid economic track record, we have high expectations for improvement in business conditions over the coming months.
Small-business lending has become incredibly difficult. Given current interest rates, I wouldn’t blame anyone for holding off on starting a business until rates come down.
How is Central Bank balancing the demand for high-tech solutions with its reputation for personal, community-focused service?
Banking is all about technology. Over the years, we’ve significantly improved our service levels — what used to be manual and time-consuming is now seamless. Customers can manage their accounts online, make deposits, and access real-time updates.
One of the biggest advancements we’re integrating is AI. AI has tremendous potential in banking, but it needs to be implemented responsibly. Just as there are bad actors on the internet, there will be malicious AI systems attempting fraud.
Last year, we partnered with Jack Henry, a top-tier technology provider, to enhance our fraud detection capabilities. Its Financial Crimes Defender product uses AI and machine learning to analyze customer behavior in real time, helping us proactively identify and prevent fraud rather than just reacting to it.
We’re also preparing to adopt Real-Time Payments, which already cover 62% of financial institutions, and FedNow launching in the third quarter of this year.
In fact, we’ve rolled out new software that monitors users’ login behaviors. It analyzes factors like whether they’re left- or right-handed, their IP address, and their device history. If anything appears unusual, we receive an immediate alert, allowing us to act quickly to secure the account.
What are the biggest challenges facing banking today, and how is Central Bank positioning itself to address them?
One major challenge is competing with tax-exempt financial institutions, particularly credit unions. These institutions were originally designed to serve small, niche markets, but many have grown significantly and now compete directly with banks, without the tax burden we face.
In recent years, credit unions have even started acquiring banks, which further reduces the number of independent community banks. This trend isn’t favorable for community-focused banking.
What is your outlook for the financial industry in Florida, and where do you see the most growth opportunities?
We’re optimistic about a turnaround in interest rates, which will drive a rebound in residential lending. Commercial Real Estate lending remains healthy, and overall, we expect a strong economic environment. The Federal Reserve plays a major role, but the new administration’s policies will likely encourage economic growth and influence future Federal Reserve activity.
For more information, please visit:
https://www.centralbankfl.com/
