Many of us remember the revolving door in banking that took place four to six years ago. It seemed as if community banks were bought up almost as soon as their doors opened, leaving the community lacking in the local banking area. Customers endured the inconvenience of becoming accustomed to a new bank. For ambitious bankers, the landscape was wide open for opportunity. In the past, community banks in Northern Nevada had always held a strong position at 25 percent of the market, but after multiple mergers, the number dropped to 4 percent of banks in the area. It was this lack of community banks that spurred Robert Hemsath and a group of investors to open Northern Nevada Bank.
Founded in 2000, Northern Nevada Bank has enjoyed a consistent and successful bounty of growth over the last four years. While the bank doesn’t have a branch on every corner, it did open its second location in Carson City in June, in addition to its Reno branch on South Virginia Street. Hemsath also has his eye on communities surrounding Reno and Carson City, particularly Lyon and Douglas counties. Hemsath recognizes that the addition of branches may add convenience to the customer, but he explained, “We’re focused on controlled growth and will expand when the opportunity is right.”
Hemsath’s expectations for the future are as steady as the rate of growth for Northern Nevada Bank. The bank saw a 135 percent jump in pre-tax earnings in the first quarter of 2004, compared to figures from the first quarter of 2003. Additionally, the bank reported a 42 percent increase in loan growth and a 37 percent jump in total assets. As of March 31, 2004 total assets were $91.4 million and loan volume was reported at $73.8 million.
Northern Nevada Bank focuses primarily on the banking needs of local business clients. The bank’s specific target market is small businesses with around $10 million in revenues that employ from one to 200 employees. However, the bank offers a wide range of deposit and loan products for the business community. An array of deposit and loan products fill personal banking needs.
How does a community bank compete? For Hemsath, it’s simple: by being a “bank that fits.” His philosophy is that banks should do everything they can to fit the needs of the customer, but in the event the bank can’t be all things to all people, Hemsath has no problem participating in relationships with other community banks to find the right solutions to a customer’s needs. “Our goal is to find the best fit for the customer,” he explained. “If we don’t fit the mold for the customer, we’ll do what it takes to make it happen.”
Hemsath also stresses the benefits of banking with a local community bank. Advantages include not only customer service, but also having a first-hand understanding of the business climate. Local banks work with local people and are truly plugged into the communities in which they reside. Hemsath notes that only four of the area’s local community banks are actually owned and operated out of Northern Nevada.
It doesn’t hurt that Hemsath is a native Nevadan and has spent almost 20 years in banking. Not only does he have his finger on the pulse of business for the area, but he’s also got history on his side, which from his perspective is distinctly positive. He explained, “The beauty of Northern Nevada is that historically – whether the economy has been good or bad – it always seems to grow.”