Spotlight On: Ted Wolfe, President, TowneBank Charlotte
June 2024 — In an interview with Invest:, Ted Wolfe, president of TowneBank Charlotte, discussed TowneBank’s unique culture of caring and serving others, its significant financial contributions to various local organizations, and its strategic expansions in the Charlotte region.
What is TowneBank’s overall contribution or impact in the Charlotte region over the past year?
We believe we are bringing something unique to the market and aim to do so consistently. TowneBank has a distinctive culture that emphasizes caring and serving others. This culture starts with how we treat our employees. This caring culture extends to our clients, whom we refer to as members. We treat them like family, and this is not just a slogan. Our motto of serving others and enriching lives is deeply ingrained in everything we do. Additionally, our community involvement includes financial support and participation on various boards.
In the past five years, we have committed and donated over $3 million to various organizations, including the Atrium Carolinas College of Health Sciences, Novant’s Upward Mobility Educational Assistance Fund, the Sullenberger Aviation Museum, Junior Achievement, Charlotte Rescue Mission, Central Piedmont Community College, and the Augustine Literacy Project. We focus on upward mobility, a significant issue in Charlotte.
We have also expanded our physical presence by adding two large financial centers in Myers Park and Ballantyne to complement our South Park location, now employing over 100 people in Charlotte. This includes our community bank and various financial services groups like insurance, mortgage, and wealth management. Notably, we own the largest bank-owned insurance agency in the United States, enhancing the value we bring to our members and the community.
What market trends have you observed in the Charlotte banking sector over the last year, and how has TowneBank adapted to them?
The biggest challenge has been the rise in interest rates and the inverted yield curve, which pressures banks because they borrow short-term and lend long-term. This situation has strained margins, causing many banks to cut back on lending. Additionally, higher interest rates have impacted the real estate market, with developers canceling or altering projects due to increased capital costs. Fortunately, we have a strong balance sheet, solid credit quality, and robust capital ratios, allowing us to maintain flexibility. We focused on supporting our existing members and fostering relationships, enabling us to be creative and find solutions that some competitors could not provide.
Moreover, the emphasis on deposits in the marketplace vindicates our relationship strategy. TowneBank was built on a strong deposit base, which has helped us remain effective and consistent in our approach. There is a segment of the market that values having a dedicated relationship manager who knows them and can offer creative solutions. During times of uncertainty, this relationship-centric approach is highly valued, as our members appreciate having an advocate who will go to bat for them.
How are you leveraging existing or incoming technologies?
While I might not be the go-to person for technology specifics, we are committed to the appropriate use of technology and a constant improvement process. We’re continuously upgrading and exploring areas like AI, ensuring we balance innovation with maintaining our personal touch — our niche in the marketplace. We understand the necessity of technology in areas like digital banking and cybersecurity. Treasury services, for example, is an area where we see constant evolution in technology and new products to meet our members’ expectations.
The growth in fraudulent activity is a significant issue, both in business and personally. We’re committed to helping our members address this through education and offering products that protect against fraud. We also provide insurance options to support them. While fraud often involves technology, social engineering plays a big role, so educating our members on these threats is essential. Overall, we strive to incorporate technology in ways that enhance our personal touch and service.
What makes Charlotte an ideal location for business expansion and relocation?
Charlotte has become a magnet for business, primarily because it is the second-largest financial services market in the country. This alone is a huge draw. Additionally, the area has successfully attracted other industries like technology and healthcare. Projects like The Pearl near Uptown are set to significantly boost our economy. Charlotte’s growth is impressive. For instance, the CLT Alliance reported an average of 113 new residents moving into the community daily in 2022. This influx brings in diverse talent and resources, contributing to a dynamic and thriving business environment.
However, with this growth, we must ensure it benefits everyone. Upward mobility is a major focus for us, as is literacy. Personally, I’m committed to initiatives like the Augustine Literacy Project to help ensure all children in our community can read. From a banking perspective, despite the slowdown in residential activity due to rising interest rates, Charlotte remains a growth market. There are still opportunities in mortgage lending and supporting local businesses. Our members need trusted advisors to help navigate these changes and explore options, which is central to our relationship banking philosophy.
What is your outlook for TowneBank over the next couple of years?
I see a very positive future for TowneBank over the next three to five years. Although we can’t predict events like COVID-19, our goal is continued growth in several key areas. We aim to strengthen our relationships and expand our influence within the community. This involves not only supporting our members but also becoming more integral to the fabric of the Charlotte area. By deepening our engagement and presence, we hope to make a lasting impact.
In terms of market share, we currently rank 11th out of approximately 50 banks in Charlotte. We aspire to climb higher in that ranking, particularly among those who value relationship banking. This focus on relationship banking distinguishes us in a crowded market, and we believe it will continue to drive our growth. Another crucial area for growth is the depth and breadth of our member relationships. In addition to banking services, we offer comprehensive services, including insurance, risk management, employee benefits, wealth management, merchant services, and mortgage lending. By doing so, we can better meet the diverse needs of our members and solidify our relationships with them.
Team growth is also a priority. We plan to add experienced team members who fit our unique culture, which is central to our success. It’s important to us that we also invest in the growth of our existing employees through additional training and development opportunities. Most of our relationship managers have decades of experience and have been with us for a long time, contributing to our low turnover rate. As we grow, we want to ensure our current employees grow with us, finding new challenges and participating in our ongoing success.
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