CEO Corner

CEO Message

We’ve had an exciting year thus far and have been able to leverage the merger with Bankers Bank Northeast which took place last year. New customers and fresh opportunities have driven our growth and mitigated the shrinking number of banks in the market due to mergers and acquisitions.

In many cases the M&A activity has resulted in product and service opportunities for ACBB with larger banks. With this growth and increasing regulatory expectations we have made a committed effort to enhance our capabilities, as well as risk management practices. These initiatives to prepare for the future do not come without a cost, however, we view this as an investment to ensure our ongoing ability to serve needs of our clients. Below is a recap of our recent financial highlights along with some commentary. Please note, you can also find our financial highlights in this newsletter and on

3Q Financial Summary

• Net income was $110,000 for the 3rd quarter (as compared to typical $1.25MM - $1.5MM).  Net income is down significantly for the quarter, which is also anticipated to be the case for the 4th quarter.  Year-to-date income is still solid at $3.1 Million. 

•The down quarter is attributable to the implementation of a state-of-the-art automated transaction monitoring platform, as well as higher consulting and third-party professional expenses.  In addition, new positions, primarily in the risk and compliance arena, have been added.  While the 3rd quarter result is disappointing, the 2019 year’s net profit and outlook is adequate with solid net income.  More importantly, the core earnings engine is solid. We experienced a  7.2% loan growth year to date while client retention and new business remain favorable. 

•The increase in expenses stemmed from changes in the regulatory environment as it relates to aggregators, like bankers’ banks and ACBB’s desire to get ahead of these changes.  This is especially true in the international and domestic wire business and will significantly strengthen our BSA/AML capabilities. Specifically, these expenses will: 

• Enhance our risk management in BSA/AML and IT

• Strengthen transaction monitoring systems

• Add additional expertise and new capabilities

• Upgrade our IT infrastructure

•The end goal is to make an investment in ACBB’s future and enhance our ability to serve our clients better and more securely.

• We are positioning ACBB for growth and to deliver new and enhanced products and services.  Our joint venture with PeopleHedge enhanced our capability for international wires and the expansion of our treasury management solutions set to include a Virtual Card capability will deliver incredible value to our clients and downstream to their business customers.

• While the pressure on earnings will continue into the 4th quarter, these initiatives, and the associated expense impact, should largely be completed during 2019, setting the ACBB stage  for a very positive 2020 - consistent with historical profitability.

• Overall revenue trends, new business development and loan volume are very positive and capital levels continue to remain at extraordinarily strong levels – Tier 1 Leverage 12.69% and Total Risk-Based 22.61%.  In addition, our asset quality is extremely strong as illustrated by a Texas ratio of 1.01%, well below out peers.

As we finalize our strategic objectives for 2020, it is worthy to note that we have embraced product innovation with talent and technology. We are integrating with third parties who serve community financial institutions through API connections and launching exciting new solutions for financial institutions and your customers. These will ultimately provide you with more options and better, faster and more secure service. As we navigate current and future opportunities, rest assured that our focus and our mission remains on you, our clients.