New community bank opens headquarters in Clearwater
By Breanne Williams
Tampa Bay Business Journal
Published: Oct 25, 2021

A new community bank has officially opened its doors in Clearwater and said it carries within its staff a depth of knowledge of the Tampa Bay market that will give it a “strong advantage” over big banks.

Waterfall Bank is one of just a handful of de novo banks to open in the U.S. in the last year. Of the approximately 30 de novo banks that have filed applications with the Federal Deposit Insurance Corp. since 2020, fewer than 10 were based in Florida, according to S&P Market Global Intelligence.

Kevin Darmody, president of Waterfall Bank, said the conversation began in April 2020 to bring a community bank to the region.

Waterfall Bank raised around $45 million at launch. Located at 500 McLennan St., the bank — which doubles as the headquarters for the company — lies within a new four-story office building along S. Fort Harrison Avenue, and Darmody said the heavy traffic was a key part of choosing its original location. He said it occupies approximately 4,000 square feet within the building and also has an operational office in Mount Dora.

Darmody said he and Waterfall Capital Investments — the group behind Waterfall Bank — saw the demand for a local bank that understood the area and could give its clients a curated experience.

“I think there is a need for community banks,” Darmody told the Tampa Bay Business Journal. “Most of the community banks serve the local small businesses, and small businesses really are what makes the country tick. From our point of view, we saw that more and more banks were coming in that were headquartered in Charlotte or Alabama or Kentucky or Atlanta and getting a response from these banks, particularly if they want loans — it was taking a while. Here, we know the Clearwater area, we know Pinellas County and that gives us an advantage.”

Waterfall Bank held its soft opening on Sept. 20 and had its grand opening on Oct. 1.

The bank is lobby only and does not have drive-thru teller lines. Darmody said with many clients switching entirely to online banking, few people are finding the need to go to a lobby anymore.

He said Waterfall Bank is “open to the more technological methods” of banking and has a forward-thinking mindset so that those in the community will still have access to the latest technological banking trends at their local community bank.

Currently, the bank is focused on expanding its reach, and Darmody said though they have only been open a few weeks they have already seen a strong response from the community. He credits the leadership team at Waterfall for the seamless transition into Clearwater. Many of its board and staff members have a history of working in Florida’s banking industry and have strong ties to the Tampa Bay area.

This is the second community bank to come to the area recently. Earlier this year, Climate First Bank — founded by Ken LaRoe who previously created and sold First Green and Florida Choice Bank — arrived on the scene in St. Petersburg. The value-based community bank focused on environmental sustainability is being run out of a refurbished house at 5301 Central Ave. LaRoe said he intends to relocate to a permanent spot closer to downtown.

In time there is the possibility Waterfall will expand throughout the area, though Darmody added they would closely be watching industry trends to determine what clients desire out of a bank in terms of location.

“Banking is interesting,” Darmody said. “What is it going to look like in a few years? You see how technology changes things so quickly. We will be following the whims and trends of the industry and looking for opportunities for placing or getting a stronger presence in Tampa Bay. I think the demand for community banks is only going to continue to grow.”