Las Vegas economy, housing market examined by Western Alliance Bank chief

As the Las Vegas Valley simultaneously feels the effects of slowing job growth and dipping tourism levels, alongside steady inflation and stable home prices, Philip Potamitis, Nevada market head of Western Alliance Bank, remains cautiously optimistic.

Western Alliance Bank primarily focuses on commercial banking in Arizona, California and Nevada. The bank announced July 16 that it would unify all its divisions, including the Bank of Nevada, under the Western Alliance brand.

Potamitis said the bank is currently investing heavily in homebuilding and treasury management. Despite a decent job outlook nationwide — unemployment is dropping but so is hiring — Potamitis said many Valley businesses are being cautious.

Potamitis talked exclusively with the RJ about his outlook on the Las Vegas economy, including the housing market, and the bank’s community ties.

This interview contains references to the Bank of Nevada, now called Western Alliance Bank. The interview has been edited for brevity and clarity.

RJ: The Bank of Nevada operates in a market dominated by national giants like Bank of America, Wells Fargo and Chase. How do you compete with them, and where are you seeing the most success in gaining market share?

Potamitis: We are considered a regional bank, so it’d be a step above your local bank — not quite as big as the national banks. And we are primarily active in three states: California, Arizona and Nevada. And then we have these national business lines that we compete nationwide. We’re very strong in the local markets because we have very in-depth commercial and real estate banking teams in those markets. Nationally, we develop industry expertise in these national business lines. We compete head to head with the larger banks on our national business platforms. We have many: I run the gaming or casino lending national platform, so we compete against, and work with, the larger gaming players across the nation.

RJ: Are there any particular industries or types of clients that are especially driving your growth right now?

Potamitis: Gaming is big. We have an entertainment group that is doing that nationwide. Locally, real estate has been strong. Commercial banking has been strong for us.

RJ: What role does the local economy here in Nevada and in Vegas — particularly in terms of tourism, gaming, entertainment, those local industries — play in shaping the bank’s strategy?

Potamitis: We serve our community, so what businesses are here and how the community reacts. So if tourism goes up or down, it affects us a little bit because we’re being responsive to what our customer needs are. If our local customers are growing because of tourism, we are growing with them. If they have credit needs because there are changes and timing differences in cash flow, then we help them out as well. But, in general, Nevada has been growing since I’ve been here. I moved here in 1996 and it’s been a really strong growth trend most years here.

RJ: How significant is the mortgage side of your business today? Has that grown in recent years with the growth in the Valley?

Potamitis: Western Alliance bought the mortgage bank in 2021. It’s grown ever since. We had a little bit of a headwind with the mortgage rates rising, but recently it’s done pretty well. It’s been growing as well.

RJ: There’s chatter out there about more casino land purchases and ground leases coming. What trends are you seeing there? Do you think there’ll be more sales like that in the future?

Potamitis: Ground leases are a major impact to the business, where you have companies providing capital to other companies and they basically lease or rent their casino from that operator. So it’s been helpful for companies looking to raise liquidity. Long-term, they don’t own their real estate anymore, so the jury is still out whether that’s going to be favorable — what’s going to happen at the end of these leases. The things that concern us about it are: if there are (capital expenditure) improvements needed, will the landlord help for that? So far, that seems to be they work out pretty well with the tenant. But at the end of a lease, it could be like your lease is over and they put in a new tenant right at the end of it. So it’s like you’re sort of selling half your business, but not the other half.

RJ: What are you seeing in the local housing market right now? Are buyers feeling more cautious, or is demand still strong despite the high mortgage rates?

Potamitis: I think supply is slowly increasing, but the issue is really affordability. So when interest rates are where they are now, for people that can afford those rates, I think homes are moving, but you’re definitely seeing a little bit of a slowdown in when a house goes on to the market until when it’s sold. It’s sort of flat right now.

RJ: From where you sit as the Nevada market head, what is your outlook on some of the strengths and weaknesses of the Valley’s economy in the near future?

Potamitis: I think there’s an air of people being cautious right now with economic uncertainty. The numbers don’t necessarily support that. I think we got a jobs number out [recently] that was pretty robust. Inflation seems to be pretty well under control, despite the tariffs, based upon the numbers that have been released. So I think our outlook is more to a slow growth, flat outlook, which is fine. You know, economies go up, they go down, but the position we’re in right now, I think, is sort of slow growth. And our customers — we see them to be very healthy right now.

RJ: What originally brought you to Nevada, and how did you end up in the banking industry?

Potamitis: I started in banking with a credit management training program at Wells Fargo in 1995. It was a year-long program. Then Wells Fargo purchased First Interstate Bank in Nevada. I came out as part of that to help that. First Interstate Bank had a large casino lending practice at the time. I got to be a part of that and learn the business, and I’ve been in it ever since.

RJ: You currently serve as the Nevada market head for the Bank of Nevada. What does that role entail?

Potamitis: It sort of oversees all the aspects of the bank business that goes on in Nevada, which would be our commercial banking business, our real estate business and the gaming business particularly. But it’s also a position where you are sort of the community outreach person. We have people that help in that as well, and all of our bankers are involved in the community, but I just oversee the community activities and make sure that the bank is doing everything that we’re supposed to be doing for our community.

RJ: When you’re not working, what are some of your favorite things to do in the Las Vegas area?

Potamitis: I’m a tennis player. I’m a big supporter of the Vegas Golden Knights hockey team, so I like to go to those matches. I like to support our economy. I go out to all the wonderful things we have in Las Vegas: the restaurants, the shows, and I’m also active in some of the charities. I’m on the board of directors of Goodwill here. I enjoy giving back to the local community.

RJ: Is there anything else you think our readers should know about how the Bank of Nevada fits into the local community?

Potamitis: We’re a very strong local community supporter. We really get involved. We’re involved in the Las Vegas Chamber of Commerce. We’re involved in LVGEA (Las Vegas Global Economic Alliance). Most of our bankers are on local charity boards, and we have a lot of volunteer hours that come out into the community, and that’s just a part of who we are.

Contact Isaiah Steinberg at isteinberg@reviewjournal.com. Follow @IsaiahStei27 on X.