Small bank, big bang: U.S. Century Bank is a quiet, friendly institution headquartered in a nondescript section of central Miami-Dade. It is also the best-capitalized bank launch in Florida history - Banking

South Florida CEO, Feb, 2003 by Wendy Doscher-Smith

The small parking lot holds no more than 40 cars. A smiling security guard named Miguel acts as receptionist for the bank president, and the building itself presents a humble exterior. But this little bank is quite well-to-do.

In the three months preceeding its opening last October, U.S. Century Bank raised $22 million in capital, securing its spot in Florida banking history as the largest "de novo" (startup) capitalization ever made by a state-chartered independent community bank. After its opening the bank raised another $8 million, for a whopping total of $30 million by year's end. The average capitalization for a start-up bank in Florida, according to the Florida Division of Banking, is $8 million.

U.S. Century managed this historic coup because of its board members, a collection of Hispanic business heavyweights. All run successful businesses, most are well-connected and many have experience with start-up banks. When they combined their know-how and their know-who, a successful start-up was almost assured. By year end, an already busy Century had $51 million in deposits, $13 million in loans and $81 million in total assets.

U.S. Century board vice chairman Sergio Pino, a former director and investor in Ready State Bank -- a Hialeah-based community bank acquired by Union Planters Bank in 1998 -- says that everyone did their part to bring friends in as investors. Pino, best known as the CEO and chairman of real estate development company Century Builders Group (the name is just a coincidence, he says), brought in 50 investors himself. In fact, some 400 mostly South Florida-based investors participated in the bank's capitalization. And these investors, who contributed $50,000 on average, then recruited friends and family to bank at Century. "Having your investors in a bank is like having soldiers out there," says Pino.

One such soldier is government affairs consultant, lobbyist and businessman Rodney Barreto of Miami-based Barreto, Cunningham, May, Dudley, Maloy. A supremely well-connected first-time bank investor, board member Barreto says the process of creating Century was fascinating. "I saw this as a very committed group of businessmen," says Barreto.

Other board members include Chairman Ramon E. Rasco, president of Rasco Reininger Perez & Esquenazi, P.L.; Francisco R. Angones, president of Angones Hunter & McClure, P.A.; Carlos M. Garcia. CEO and president of Luxcom Development and GSG Development Group; Armando J. Guerra, CEO and president of Sedano's Pharmacy and Discount Stores; and Manuel A. Herran. CEO and president of Sedano's Supermarket.

Getting a bank off the ground requires more than just money and connections, of course. Experience is key. Century Bank's president and CEO Octavio Hernandez is a 30-year banking veteran and former president of both First Bank of Miami and Bankers Savings Bank; many of the bank's directors served on Ready State Bank's board.

As for market focus, Century's chairman Rasco says he saw a "real opening" in the marketplace for a bank dedicated to small and medium businesses, especially Hispanic ones. "We want to provide Hispanic business persons with bilingual services and offer them personal access to the bank's president and key decision makers," says Hernandez. On the other hand, even though the bank's executives are mostly Hispanic (the board is entirely Hispanic and entirely male), Hernandez has no intention of leaving non-Hispanics out of the loop.

One example is Brian Lee, co-owner of Lee's Tackle Inc., a fishing equipment business which Lee's grandfather started in downtown Miami in 1920. Lee, a non-Hispanic, is already a Century client -- partly because he knew Hernandez personally. "I don't see why all Hispanic people being on the board would affect [business] one way or another," he says. "They're in a business to lend money, so why not?"

With its deposit base growing almost as fast as its testimonials, U.S. Century is already planning to open another branch in Hialeah next year, in addition to its existing 5,000 square feet at 7575 West Flagler St. Century also plans to add several more branches in Miami-Dade County this year and next, and then move into Broward County.

But no matter how large Century gets, the goal will remain the same: "We want to provide old-fashioned banking where we know your name," Hernandez says. Of course, he already knows what a few good names can mean.