CenterState Bank puts 'boots on the ground' in Tampa

CenterState Bank expects to open a loan production office in Tampa in the next 30 to 45 days.

The bank is talking with lenders in the market to staff the office, which is likely to be in the Westshore area, said Ernie Pinner, chairman and CEO of CenterState Banks Inc.

It's a way to get "boots on the ground," Pinner said, and part of an urban growth strategy for CenterState (NASDAQ: CSFL), a $3.6 billion bank headquartered in Davenport and with 58 branches throughout Florida, many of them in smaller markets. CenterState has a foothold in Jacksonville and also wants to grow its presence in Orlando, Pinner said.

"We've noticed as the economy comes back and is on the upward slope, [recovery] is felt quicker in the major metro areas," Pinner said. "Tampa will grow faster than Haines City and that recovery will bleed into those smaller towns. Being in a larger town, we will feel the impact quicker."

The Tampa LPO is like "getting the camel's nose into the tent," said Pinner. "It you can establish a good lending base, then it's easier when you open a branch, whether through acquisition or de novo."

Tampa also tends to be a market focused on commercial and industrial loans – the all-purpose loans that businesses use for working capital or for major capital expenditures – pointed out Michael Rose, an analyst at Raymond James & Associates, during a conference call with CenterState leaders. There's an internal push to put as many C&I loans on the books as the bank can, John Corbett, executive vice president, said during the call.

C&I lending is seen by many banks as an attractive alternative to real estate lending because C&I loans tend to be larger, and because regulators have issued guidance that limits banks' commercial real estate loans. While CenterState is far from the regulatory limit on CRE lending, Pinner said, he also noted that Tampa is a great C&I market, with a diverse business base, ports and highway access.

Margie Manning is Quality and Content Editor of the Tampa Bay Business Journal. She also covers banking, finance and professional services.