Anthony Thompson – United Business Bank

About Anthony Thompson

Anthony is a Senior Vice President, Commercial Loan Officer at United Business Bank. Prior to his career in Banking Anthony was Vice President, Director of Marketing at Proudfoot Consulting/Phillip Crosby Associates. Anthony also worked as special assistant to US Senator David D. Karnes, and the first woman elected to the US Senate, Paula Karnes.

Anthony is very active in the community and is involved with the San Leadron Chamber of Commerce, Alameda Health System Foundation, and Oakland Metropolitan Chamber of Commerce. Anthony received his BA from Francis Marion University.

 

Interview Transcript of: Anthony Thompson – United Business Bank

Alan
Welcome back. I’m here today with Anthony Thompson. He’s a senior vice president with the United business bank. Anthony, welcome to today’s show.

Anthony
Thank you delighted to be here.

Alan
So, you know, for the listeners sake, American means we talk about the timelines of life and, you know, people aspiring in their, in their life to go different directions. But what brought you up to the point that you’re at today, your primary education work experience gets you where you are.

Anthony
I think the definition of my career is unplanned but very interesting. I grew up inside the beltway of Washington, DC, to a family that was involved in the defense military complex, my stepfather ran an electronic warfare company. And even though he wasn’t political, I kind of took on this mantle of protecting family interests, whether they needed to be protected or not, and became involved in politics at age 14 Republican politics at the time, and graduated from a public college in South Carolina, I had had a territory and Reagan bush at that I ran a youth campaign and went to Capitol Hill for my first jobs and worked for an incredible United States senator from Florida, a woman, Republican First Lady elected in her own right to the United States Senate. But she had an amazing dynamic and fact that she had a husband of Senate first husband, and an amazing family, children and grandchildren. So the dynamic of being an extremely powerful freshman senator, and as well as trying to be run her family. She lost her reelection, and I worked for Senator Dole and Senator Karns, who was an appointed senator from Nebraska, and was asked by Senator Dole to get his offices set up and get him through his primary. Then I left him and went back to work for Senator Hawkins, who at the time was well, she was sick when she lost her seat. And she became an ambassador at large negotiating International Narcotics treaties for the United States. And we started a small public affairs company, where we represented Jeanette Genentech hoppin the Roche and we had this small consulting company headquartered in Florida, which got purchased by a larger consulting business that was headquartered in London, England, and after four years was hired away from her, she wanted to really retire and moved to London for five and a half years as head of marketing and PR worldwide for this amazing British American Management Consulting Group who was headed by a British Lord who also was chairman of United newspapers controlled about 17% of the press in UK and about 3% in Europe. So an amazing man who I reported to, after that was brought back to the United States worked for a member of the Ford family in Palm Beach, Florida, running a private real estate and equity portfolio for again, a lovely, amazing woman, and did that for four years, got her more or less stable and like her a lot. Working for the family was a dynamic that wasn’t as pleasing to Me. So kind of wanted to get my own life back and moved out here in 2001. expecting to be a marketing and PR guy for a.com, landed in September of 2000, was offered two jobs with dot coms it by March of 2001, had gone out of business while I was walking in the door. And I kind of had two options available to me Starbucks or community banking. And I thought, well, it probably takes more IQ to be in Starbucks, and I have a lot of clothes. So that was my first foray into banking. And I’ve been a community banker, by and large ever since starting on the administration side, but the banking side, and then really, the passion in banking is loaning money to people and building the relationships through the lending process. So that’s what kind of brought me to where I am today working for a local headquartered community bank, United business bank.

Alan
It’s quite a quite a background, and it seems like the lives of people that you’ve been able to work with their spheres of influence has been tremendous. But I want to bring back that when you transitioned into what did you start as a loan officer, what was your position,

Anthony
I was corporate secretary and Chief Administrative Officer. So the bank was a relatively small in or smaller than the bank I’m working for now. If we’re a $400 million bank, there were a $150 million bank but again, owned by a high profile female banker.

Alan
So, so in the banking industry since 2000, it was more 1001 2001. There’s been some changes, and I think in 2008, is some type of paradigm shift happen there. But But how did you how did you work through some of the changing and, you know, the, the, what happened in 2008, with the collapse of Bear Stearns and Lehman Brothers, and, you know, how was all that affecting as you went through the commercial loan process?

Anthony
Well, I think learning how the bank that I was working for at the time, whether the.com Bust here in the Bay Area was a regional event, but as a regional community bank, we had issues to worry about in 2001 and 2002. So by the time I was the lender in 2008, I had a lot fairly Got an idea of how to weather storm and how to work with clients who are facing headwinds financially. But nothing can prepare you for what happened to the American economy in 2008, where we were looking at the really the financial structure of the world going over a cliff and we’d be exchanging rocks or currency. Works with I was lucky that I was with a bank at the time bank of Alameda that had a lot of capital, and an enlightened CEO and board that said, we have enough capital to weather this deal with your customers work with them, if we can help them out. Let’s help them out before it gets a crisis. And if you can bring in new loans that makes sense during this time, fine, we’re doing it. But really focus on credit quality and making sure that our customers are taken care of in the banks protected, banks are inherently thinly capitalized organization. So people think of well, we got 100 million, we have $400 million in deposits, we can lose 300 of them and still be healthy know, the core capital of a 400 million bank bank is maybe $35 million, you lose 5 million of that, and the regulator’s come and take away everything.

Alan
Anthony, I need to take a quick break and visit here today with Anthony Thompson, He is the senior vice president at the United Bank. Here it will be right back.

Alan
Welcome back. Anthony Thompson he is Senior Vice President at United business bank, in Oakland. And in Anthony, we’re talking about, you know, this the margins of banks operate on and is how even though maybe $400 million bank, basically a $35 million, you know, you know, allocated for operations. And, you know, when you’re when you’re picking and choosing customers, let’s talk about first of all, who, who your bank is designed to service what type of client individuals businesses

Anthony
We’re strictly set up as a business bank. So the only consumer products we have in the state of California are for business customers, aside from a deposit account. So if you’re an individual and want to open a deposit account with us, we’d be happy to have you. But in terms of lending, all of our products are geared toward businesses, or people who are have business purposes. So you can borrow as an individual with us, but it has to be for a business purpose.

Alan
Okay. And then as an individual comes to your typical size of loan, where’s your sweet spot for for lending

Anthony
Our legal lending limit, which is a pity, but we don’t get in that. But it’s a ratio of capital is $6 million in our sweet spot for a commercial real estate loan is about four and a half million dollars. And for a loan, a line of credit a term loan to buy a piece of equipment, probably up to $2 million.

Alan
You do working lines, capital lines.

Anthony
We do. Yeah, lines of credits all day long up to the legal lending limit of the bank, depending on the size of the customer, we’re doing one now that’s going to be close to $6 million. But it’s also a $21 million business that has a lot of AR turnover.

Alan
When you’re looking at companies. You know, and I guess there’s probably an ideal situation where one person wants to borrow funds versus others for years? I don’t know, I’m not sure I want to lend to them. How do you pick and choose who you’re who you’re going to lend to?

Anthony
If you get to know the borrower? Well enough, I in my 14 years as being a banker character is probably the number one criteria. Because if you have a borrower that you know is going to pay you back no matter what, pretty easy to lend to. But it’s of course hard to get to a point where you couldn’t really ascertain character. So what do we have to look at, we have to look at tax return and finances. So we’re looking at people that have some history of making money, have a business that has been profitable for at least three years, that people that don’t take all the money out of their companies that leave some retained earnings in the business and have an appropriate use to borrow money.

Alan
So then in the industry today, how are things shaping up? Are we are you growing? Or what do you see happening in the business communities today?

Anthony
United business bank is a little different than our peers and that we’re a cash rich bank, we probably had $90 million in Fed funds this morning only earning 25 basis points. So our job is to loan it out safely. So we’re aggressive in the marketplace on rate and term. But we are credit quality is paramount. I mean every loan we make has to be a good loan that’s going to weather a storm and most importantly be regulator proof. The regulator’s still a very March in the mode coming out of the recession that they were in the recession is that they, they really are very strict and what they expect banks to loan in terms of criteria.

Alan
And it’s interesting since the he talked about regulations, banks have suddenly become really under the microscope, the federal government since 2008. But in documenting loans, what are some of the things that people are being asked to do today?

Anthony
Let me say for a preface that community banks fared very well during the recession much better than our larger banks. And we provide Gnosis this systemic risk to the system. But we have the same capital requirements as well as Fargo and Bank of America. So we’re treated a little unfairly in my view. But in terms of documentation, it’s not quite as onerous as buying a home. And in a consumer loan, but on a business basis, we’re really trying to nail down the assets and the cash flow that the customer has stated to us and just verify, verify, verify. So we’ll go back many times to customers saying we need this document or that document to substantiate what you’ve claimed on a forum to us.

Alan
As a person, oftentimes bringing their CPAs into the equation, or maybe not so much.

Anthony
Now, CPAs are critical. And it’s also a part of our lending process. If we have a business that has been with the same CPA for a long time, you have that invaluable history that a CPA has sometimes more than a spouse, in terms of the financial condition of the borrower. And so it means a lot to us to have a CPA review or audit or even compiled financials that are being presented to us because it’s all about believability of numbers.

Alan
I’m visiting here today with Anthony Thompson. He’s the senior senior vice president of United business bank in Oakland and Anthony, I need to take another break. And we’ll be right back after these messages.

Alan
Welcome back and visit here the Anthony Thompson. He’s the senior vice president at United business bank in Oakland and Anthony. And they the earlier segments were talking about, you know, basically the commercial loan, and you know what it takes to go through the process to get one but I want to I want to spend a few minutes on really? Where do you see things today? And maybe the trends for the future with, with lending, do you see much change happening?

Anthony
I think there’s a bit of a disconnect in the country we have the treasurer are telling bank Treasury telling banks to loan money, loan money, but the primary regulators of the bank and telling banks don’t loan as much because you may lose it. So that’s kind of a paradigm shift out of the recession, that really hasn’t changed. I think banks want to loan money, they’re the earning assets of the bank. It’s what we’re in business to do. It’s what we open our doors every day to do is take in deposits and loan it out to qualified borrowers. And banks will continue to do that. But it will continue to be more onerous and more bureaucratic to get it done. Even in a small bank like mine, where the process is three people.

Alan
What drives you every day, you know, do what you do at work. I mean, we’re in a economy of constant change and influx. And if people listen to the news, it’s someone’s hopeless, yeah. But nevertheless, life goes on. So if you’re looking at individuals that are coming to you and saying, you know, should I go into banking as a career, what advice would you give?

Anthony
I say, yes, absolutely. It’s a great place to learn a lot of skills that can help you not only in banking, but if you want to run your own business, or help someone run their business. It’s a fun place to meet some amazing customers. That’s what I wake up every morning wanting to do is help my customers, I have appropriate personal relationships with many of my customers. And it’s really the joy of the job is working with someone who’s a lot more creative than I am as a banker, and try to get them a facility that will help their business grow and to be more successful, employ more people and be a greater part of the economy in our community.

Alan
Mr really helped having that early stage in your career for working with different political campaigns and also the PR agencies.

Anthony
Yes. And it’s also been helpful that I’ve spent a lot more time on the other side of the counter at a bank than actually working at a bank. So I know what a customer wants. I know what is appropriate for a customer to ask a bank to do and not to do and it drives our senior management sometimes crazy that I’m often siding with the customer rather than In the bank, but almost always a customer’s right.

Alan
So what type of attributes would you look for in a person coming to you today say, Anthony, I’d like to come work for your bank.

Anthony
Someone was some financial skills, who maybe has had some experience in a bank or a financial institution before coming to us community banks don’t have a network to really train people. So we have we like people with some experience coming in the door. But really, someone at the Heart Wants customer service. It’s the only point of differentiation that community has of Community Bank has with our big bank peers is community service and the ability to touch customers and know our customers. So if you don’t have the DNA that makes you want to know your customer, you probably shouldn’t be coming to my bank.

Alan
Now, when we talk about community banks, in our community. And first that would be in a relatively small area is that trophy in a business, Mako, you’re limited to your geographic region.

Anthony
We are land, but we have a unique footprint as a community bank, we have, we operate in the nine Bay Area counties, we have two branches in Southern California. So LA County we can loan money in, we bought a little bank in Albuquerque. So that’s a footprint for us. And we have a branch in Sacramento in Seattle. So we have eight branches three state, which is a strange footprint for a community bank, but we’re very much entrenched in those communities, and we only land geographically where those branches are.

Alan
That’s interesting. So even though you cross the state lines into New Mexico, then yes, we do. Now everyone that is doing businesses that make there, are they assigned a loan officer to work with the company?

Anthony
Absolutely. Yeah. And if you’re a big commercial customer, you deal with me. And it depends on where you fit in the organization. But there’s always a name and a person that our customers have to call into. It’s a strategic value with us. And it could be the CEO of the bank, or the chief credit officer of the bank, they feel customers phone calls all day long.

Alan
Do you get involved with the strategic growth and outlook for the bank or in Europe?

Anthony
Yeah, so I’m part of the management team of the bank. And we meet a couple times a year to review the strategic direction of the bank and where we want to go. And we looked through the entire we’re a flat organization with 65 people. So you don’t have to look too far to find someone with some input that’s going to be valuable on how we’re going to grow and how to make our customers more happy.

Alan
Yeah, essentially saying that is your is your sitting in that senior management team? When do you decide to open a branch in a particular area? And what drives that decision?

Anthony
It’s difficult to open brick and mortar, they’re expensive to do. And we’re a cash rich bank. I mean, most banks open branches for deposit gathering, and we have an amazing deposit gathering operation. So with us, it’s really about trying to strategically make our branches more valuable and to provide a deeper depth of service to the customers that we either don’t have or have already.

Alan
You’d say that that decision is primarily customer driven, customer driven. Okay. And if the outlook here, what advice would you have for someone looking at commercial banking as a career,

Anthony
I’d say you know, have that DNA that you want to deal with customers have some financial experience, and you can have an amazingly successful fun career. Unfortunately, having to wear a suit and tie. But that’s probably the only negative as being a banker. We get to do some fun stuff. As a community banker, I’m allowed to really get involved in the community. I’m treasurer of the Alameda Health System Foundation, we support the public hospitals in Alameda County. I’m Vice Chair of the San Leandro Chamber of Commerce. I’m on the Economic Development Committee of the Oakland chamber, we’re really allowed to get our hands dirty in the community and provide some great service to, you know, our brethren and their community, which is a lot of fun. And they don’t get to do that often and get paid for it.

Alan
Now is it 65 employees make quite a big line. And then how large is the Oakland office?

Anthony
Probably about 30 of those.

Alan
So Oakland is your hub.

Anthony
That’s definitely our hub. It’s where we were founded. It’s where we’re headquartered. It’s where we have the most people it’s where we’re the deepest in our community. It’s home.

Alan
So Anthony, if someone wanted to contact you for commercial loan, the opportunity to see if you’re the right fit for their business, how would they go ahead and do that?

Anthony
You know, I did business bank.com my picture and phone numbers on the website.

Alan
Here visiting today, Anthony Thompson. He is the senior vice, the Senior Vice President of United business bank, and works as a commercial loan officer and may have been elected thank you for being on today’s show.

Anthony
Thank you. It’s wonderful being here.

 

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This transcript was generated by software and may not accurately reflect exactly what was said.

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