September 2022 — Dallas Capital Bank is a team of local banking executives and prominent investors joined together to create a new chapter in Dallas banking to serve the needs of businesses, entrepreneurs, family offices and professionals throughout North Texas. In an interview with Invest:, Chairman and CEO Doug Hutt discussed the bank’s growth, technology investments, shifts in demand, entrepreneurial thinking and the near-term outlook for Dallas Capital Bank.
How did Dallas Capital Bank continue to grow in the region over the past year?
We are growing organically at a relatively rapid pace, in large part because we have assembled a great team and are blessed to be operating in the best banking market in the country. Between the new jobs and the influx of new residents, the area is experiencing a tremendous boom. We are leveraging the opportunity that has been presented to us by expanding in our niche market as a white glove, high touch business bank focused on small and midsize entrepreneurial businesses. Those businesses and entrepreneurs are the economic engine that makes Dallas an attractive place to do business.
We formed our original business thesis seven years ago, to serve select markets that we felt were underserved. Our strategy was to invest in technology and world-class bankers instead of bricks and mortar. Our business model was proven out during the pandemic when businesses and individuals both learned that they no longer needed a branch location of a bank to do their banking. We were ready for that transition long before it happened.
What investments are you making regarding technology?
Dallas Capital Bank was one of the first banks in the country to implement cloud-based technology. This foundation allowed us to efficiently focus on adding differentiating, ease of access client facing technology. We have a great relationship with our primary technology resource and they help keep us competitive with larger banks and financial institutions.
How is fintech and technology poised to continue disrupting the industry?
More than disrupting the industry, technology is helping us adapt to the needs of an ever-changing market. We are committed to spending the necessary resources to provide the cutting-edge technology our clients require. Importantly, we don’t need to have everything, but we must have the tools necessary to enable our target clients to be successful. We spend a fair amount of money, resources and training to educate our employees and customers on how to stay safe and secure in the digital world.
How has the economic landscape over the last year impacted the demand for your services?
In North Texas, we have a great, robust market but, more importantly, we know what we are and what we are not. Having a niche means you have decided not to be all things to all people. We know what we are committed to and we believe we are extremely good at it. We purposely chose to put Dallas in our name because it has a connotation of doing business that goes well beyond the city. We are from here – our shareholders, our board of directors and the management team are all from North Texas – and we know the market well.
During the pandemic, we took care of our clients and key prospects with the PPP program. A lot of economic activity slowed down during 2020 due to the “fog” created by the pandemic. As we entered 2021 and the economy continued to prosper, so have we. There is liquidity in the market and deposits have been strong. Additionally, the pandemic created a realization or perhaps a confirmation that having a “true banking relationship” is indeed more important than ever.
How does entrepreneurial thinking assist your bank and the community?
Almost our entire team comes from larger organizations. One of the primary reasons they have teamed with us is because of our entrepreneurial spirit. Even though banking is heavily regulated and it may seem like an oxymoron to say bankers are entrepreneurs, we believe we are both. We make all decisions locally and we aspire to grow and build a great organization. We are passionate about entrepreneurship. I think that resonates with our clients and prospects, who know that with Dallas Capital Bank they can work with someone who has the same mindset.
What is your outlook for Dallas Capital Bank for the next couple of years?
We plan to grow organically by adding more high-quality bankers to our entrepreneurial team. We are in a big market and there is plenty of room for us to continue to grow. We have the capital, the market, an unbelievable board of directors, a strong shareholder base, and access to more capital as needed. As a result, we have strong foundational pillars as we move forward. Our goal is to continue to grow and succeed in this great market before we start thinking about going someplace else. As part of our business model, we provide white-glove service. People banking with us can expect high-quality service, quick answers, and well thought out solutions.
Read the full article here.