News & Media

Carla Sturgeon

Chief administrative officer, Eclipse Bank Inc.

Years in current job: 10

Years in banking: 30

What are your biggest concerns about the local economy as inflation rises and a recession looms?

The effects of inflation can be felt everywhere you turn, both locally and nationwide. However, it seems to be abating just slightly. Oil and gas prices have declined in recent weeks, as have mortgage rates. It’s also worth noting the job market has mostly remained resilient thus far. Hopefully, these trends continue and help us to avoid a severe economic contraction.

Do you think the Federal Reserve’s recent action to increase interest rates will prove successful in mitigating the inflation issue?

Some felt the Fed was overzealous in hiking rates in 2017 and ’18. This time, it appears they waited too long and are playing catchup. They now appear dedicated to controlling inflation. The question is whether they can do so without hurting the economy, which Fed Chairman Jerome Powell recently acknowledged is a possibility.

Do you believe the rapid M&A activity we’ve seen in recent years will continue in the current economic environment? Why or why not?

In our industry, we expect M&A to continue for multiple reasons. One is management succession. In a recent banking survey, almost 30% of banks reported their CEO’s age as 61 years or older. In the same survey, over 20% of respondents had no CEO succession plan. Another reason is declining profitability. Smaller banks have been hit with a combination of lower margins and higher costs. At some point, it makes more sense to gain scale by partnering with a larger institution.

What’s your best piece of advice for Louisville business owners right now?

In an uncertain economic environment, cash is king. Not only as a defensive strategy, but also to seize opportunities that may arise.

Branch footprints are shrinking — how do you think mobile banking and technology solutions will impact the industry moving forward?

Branches aren’t going away, but fewer of them are needed as their role evolves. Gone are the days of standing in line to cash or deposit checks. Most routine transactions can be done electronically. Branches today are used more for meetings, consultative purposes or to conduct more complex transactions. Technology is likely to reduce the number of branches but not replace them entirely.

What are your thoughts on cryptocurrency?

Crypto appears here to stay, but with so many different currencies, it’s hard to say who the survivor(s) will be. It looks much like the early days of the internet and the dot-com bubble. At Eclipse, we’ve not received a lot of demand for crypto services from our clients. I suspect that could change in the future, but probably not soon.

What’s something surprising about you people might not know?

That I am well-diversified in multiple areas of the bank. I have become the “go-to” person.

Tell us your favorite “banker” joke.

There are several good ones, but in general I always find the “bankers’ hours” theme humorous — the perception that bankers only work a few hours a day. If only that were true.