For nearly 18 years, James V. Bradham, Claudine Williams and Kathy Maynor worked together at the American Bank of Commerce. After the bank was purchased in 1997, the trio saw a unique business opportunity. With almost 90years of banking experience between them, they recognized the need to service a rapidly growing customer base throughout Southern Nevada: the small to mid-sized business owner. So in March 2000, they launched Nevada Commerce Bank (NCB), whose corporate office and branch share the same building off Desert Inn Road and Valley View Boulevard in Las Vegas.
So far, the bank has managed to achieve key goals in its business plan, said Maynor, NCB’s president and chief operating officer.She said the bank’s assets have climbed to $130 million, and she estimates its annual growth rate at 20 percent. Unlike large banks, each of the members of its board of directors live in town, and lending decisions are made locally, usually within 48 hours.
“Some entrepreneurs don’t quite fit inside the big box at big banks,” explained Maynor. “Some clients need a little more specialized attention. A lot of times you’ll find customers who feel lost in the sea of big banks.”
The bank’s executive committee includes: Maynor, along with Bradham, who serves as the bank’s chief executive officer; Williams, the bank’s chairman; Don Fontaine, who joined the bank in May as the chief financial officer; and Jeff Nicholl, its chief credit officer, who also worked at the American Bank of Commerce.
While NCB offers traditional bank products and emphasizes relationship-building, Maynor is the first to say that it’s not for everybody. For example, companies that have expanded globally usually prefer a financial institution that has done the same. Also, big banks typically offer consumer loans at more competitive rates.
“Obviously, if a potential customer needed a $50 million loan, we would make sure to assist that customer in finding a lender, due to our current size and limit restrictions,” she said. “We talk about customers’ banking needs and make sure the banking relationship is a fit for them and also a fit for us. If it’s not, we’re very candid about it. We value each business’s time and prefer not to waste it.”
The bank’s 31 employees act as its sales force by promoting its products and services.Although NCB does some print advertising, Maynor said most of its customers are word-of-mouth referrals from its board of directors,customers and shareholders.
One of the banking industry’s biggest challenges is staffing. As NCB’s growth spurt continues and the shortage of skilled workers nationwide escalates, Maynor said it’s becoming increasingly difficult to recruit executives and others for positions in areas such as operations and lending. Competition is fierce, she said, since most banks draw from the same talent pool.
It’s also substantially more expensive to grow a bank now than in the past. While NCB wants to establish more branches to better service the Las Vegas Valley, soaring real estate prices haven’t helped. “There’s no cheap dirt anymore,” she pointed out.
Meanwhile, NCB is pacing itself by focusing on controlled growth. All along, Maynor said the bank’s strategy has been to position itself as a marathon runner, not as a sprinter. While the bank will support additional branches within the next decade, she said it will never stray from its original mission.
“We’re not going to do a lot of consumer loans,” she stated. “That’s not our specialty. We want small to mid-sized companies to see us as dependable and reliable so they can focus on their business while we focus on their banking needs.”