Las Vegas banks see increase in small-business, home loans
For Dallas Haun, the economic indicators at his bank are showing that the Southern Nevada market is creeping out of the doldrums and slowly picking up momentum.
Haun, president, CEO and chairman of Nevada State Bank, checked off the signs.
Small-business applications are up.
The percentage of applications that are turned down is down.
“From that, we are encouraged,” Haun said.
Home mortgages are up big-time.
In fact, 54-year-old Nevada State Bank, the oldest and largest state-chartered bank with 50 branches, had the highest number of residential mortgages for any month in the past five years in April, Haun said.
There are more conventional loan transactions and less cash transactions, he said. Consumers are feeling better about investing and optimism is growing, he said.
Nevada State Bank is expecting to approve more home mortgages in this year’s first half than it did for all of 2013, Haun said.
“Signs are there that things are getting better,” he said.
Meanwhile, Haun said that it’s not like the economy is out of the woods quite yet.
“There’s still a lot of small businesses that have some stress, but it’s getting better,” he said.
Another bank that is reporting an uptick in home mortgages and business loans is Washington Federal, a 250-branch Seattle-based bank in eight Western states.
Washington Federal has four branches in the Las Vegas area, with offices in the four quadrants of the valley.
Lynn Lundahl, Washington Federal’s Nevada division manager, said there are no plans to open more branches in Southern Nevada but “there’s always the opportunity for expansion.”
Lundahl, who works out of a Washington Federal office in Fernley, outside Reno, said the bank opened its first Las Vegas area branch in 2000.
“What we were looking for was a community where people are looking to establish homes. In 2000, the Las Vegas area was a booming area for retirees,” Lundahl said. “That focus has continued to be a strong one for Washington Federal.”
But Washington Federal stayed the course when the Great Recession and the housing crisis struck Southern Nevada in 2008.
“We didn’t downsize at all in Las Vegas when the area was struggling through the financial issues of 2007-11, and we knew Nevada was hit hard, especially Las Vegas. But we stayed with the area,” Lundahl said.
“The crisis has certainly faded. Las Vegas is recovering and rebounding, and we’re seeing opportunities for growth in mortgage lending and small business. We want to make sure that we are a part of a sound and healthy financial plan. We’re very long-term and fiscally conservative,” Lundahl said. “We want to make sure we make decisions that help our clients increase their financial security. We want to be part of the community.”
Washington Federal has expanded its presence in the rest of Nevada when it purchased 10 branches in Northern and central Nevada from Bank of America. Those came on line in May. The 10 new branches are in Beatty, Elko, Ely, Fallon, Fernley, Mesquite, Mineral County, Moapa, Pioche and Winnemucca. It was part of a deal that included Washington Federal acquiring 13 Bank of America branches in Arizona.
Another bank that saw changes in the past year was Bank of Las Vegas, a local community bank. Talmer Bancorp Inc., a Michigan bank holding company, bought Bank of Las Vegas from its bankrupt parent company, Capitol Bancorp Ltd.
In a previous interview with the Las Vegas Review-Journal in 2013, Bank of Las Vegas CEO Pete Atkinson said his bank has struggled to grow since 2010.
The Business Press could not reach Atkinson for this story.
Contact reporter Alan Snel at asnel@reviewjournal.com or 702-387-5273.
Zachary Larson
vice president and loan officer, Kirkwood Bank of Nevada
Time on job: 14 years as a banker, two at Kirkwood
Hometown: Las Vegas
High point on banking: The lessons I learned during the recession because it made me a stronger banker.
Low point on banking: Experiencing the Great Recession and seeing so many good customers fall on hard times.
Alternate career: Teacher
What is the one-year trend that will have the biggest effect on your business this year?
I think the drop in the unemployment rate will have the biggest impact. The more people that return back to work, the healthier businesses and the economy are.
What role can your bank play as Southern Nevada tries to diversify its economy?
We can play a big role because we have local management and directors that have their ears to the economy. As the economy changes and diversifies, we can change along with it. We can transition ourselves so that we’re ahead of the game.
What role do branches still play in your business as online and mobile banking seem to be the way the industry is going?
Mobile banking means two things to us. One is definitely technology — customers need technology. It helps their business. But for us it also means we’re mobile. We travel to meet them and help develop strategies and plans for growth, whether that’s at lunch or their office building or their store. Mobile banking is definitely a key component to any business now, however I think community businesses will still want a banker they can meet with face-to-face in order to properly align business needs.
We’ve been told that lending has picked up in Las Vegas. Who is borrowing?
We’ve seen lending pick up and applications are increasing. I’m seeing business professionals such as doctors and attorneys and CPAs who feel that the market has hit bottom and recovering so they’re looking for investment opportunities in the community or real estate to house their businesses. It seems you can buy a building cheaper than you can build a building, and a lot of people are looking to buy. We’re also seeing existing industrial and manufacturing companies that are expanding because there are some big projects going on such as Resorts World, the Summerlin mall and Skye Canyon, the valley’s first master-planned community that’s broke ground since the Great Recession. As those projects seem to ramp up, our existing customers are expanding as well.
Ashley Montrone
vice president/client service manager, Bank of George
Time on the job: I have been with Bank of George for almost seven years.
Hometown: I moved to Las Vegas from Boise, Idaho, when I was 3 years old; therefore, I consider myself a native.
High point in banking: Bank of George opened its door in September 2007 and I was one of the first employees hired to start the bank. I have been involved with the opening of both the bank’s locations, including hiring and training of all our wonderful employees all while helping us grow. During this time, I also have been continuing my education along with being a single mom. I am proud to be part of a strong community bank.
Low point in banking: The recession was particularly tough on Southern Nevada over the past several years. It was difficult to watch friends and family lose their jobs from other banking institutions. I am happy to see the recent improvements in the local economy and that we remain as one of the very few community banks continuing to operate in our state.
Alternative career: I would love to work for the FBI but, unfortunately, I would have to move out of Las Vegas, which would not be possible. Alternately, I would like to work in risk advisory services and audit financial institutions.
What is the one-year trend that will have the biggest effect on your business this year?
Continued economic improvement has translated to improved earnings and cash flows for our clients. This has allowed us to seek lending opportunities for businesses looking to expand. Many of these businesses have delayed asset and equipment purchases over the past three to five years and we are here to provide the loans and other banking services to help take them to the next level.
What role can your bank play as Southern Nevada tries to diversify its economy?
Bank of George is a true Southern Nevada community bank designed to provide a high level of service to our business clients. We take the time to get to know our customers and that helps us respond and even anticipate their needs. We welcome the opportunity to work with various industries and provide the lending, depository and other banking services they need to grow.
What role do branches still play in your business as online and mobile banking seem to be the way the industry is going?
Advancements in technology have provided our clients with alternative methods of accessing us as well as the services we provide. However, we believe there is no substitute for personal relationships and face-to-face interaction, whether it is at one of our branches or at their place of business. Our clients can call me directly and have their needs taken care of by an actual person. This type of banking has become increasingly rare and it provides our clients with a greater sense of security and trust.
What will a bank branch in Las Vegas look like in 10 years?
Some customers will always want to go into an actual branch for their banking needs. Technology has allowed us to do so much, but it is no replacement for face-to-face contact. Clients need access to their cash or may even need to visit their safe deposit box. I believe bank branches may be smaller in size but, with our clients, we will always be here for them.
We’ve been told that lending has picked up in Las Vegas. Who is borrowing?
In general, we’ve seen an uptick in new loan requests within all of our commercial product lines. This would include working capital lines of credit as well as equipment loans along with commercial real estate loans, for both owner occupied and investor properties. Lending to small-business owners is our niche and we continue to see improvement within this sector.
Bruce Ford
business banking manager, City National Bank
Hometown: My father was a military officer, so we moved often. I was born in Albuquerque, N.M.
Highest point in banking: Getting hired at City National Bank.
Lowest point in banking: I worked at a bank that was taken over by the FDIC.
Alternate career: A teacher or a coach. I enjoy interacting with people and helping others gain insight into topics and concepts that I am familiar with.
What is the one-year trend that will have the biggest effect on your business this year?
An improving economy.
What role can your bank play as Southern Nevada tries to diversify its economy?
We are actively seeking qualified borrowers in diverse industries. We have funds available and a willingness to lend.
What role do branches still play in your business as online and mobile banking seem to be the way the industry is going?
For many clients, a branch is their preferred delivery system for products and services. Our branches do a great job of accommodating these clients.
What will a bank branch in Las Vegas look like in 10 years?
With technology changing so rapidly and enhancing our delivery system, I am not sure.
We’ve been told that lending has picked up in Las Vegas. Who is borrowing?
Diverse industries, from legal and medical professionals to builders. We expect this to continue with the improving economy.
Mark Larson
executive vice president, regional manager, Bank of Nevada
Time on the Job: 41 years. I started in banking at First National Bank of Nevada in 1973.
Hometown: North Las Vegas
What would you call your high point in banking? 2007. Las Vegas was flying high, business was great. It was a great time to live in Las Vegas.
Low Point? Clearly, 2009-11. As we all know, the recession hit Las Vegas hard.
What is the one-year trend that will have the biggest effect on your business this year?
The greatest impact will be the continued improvements we are seeing in the local economy and the growing interest of businesses to move to Southern Nevada.
What role can your bank play as Southern Nevada tries to diversify its economy?
We will continue to be an active player in helping our economy grow — as the business bank that is a consistent, reliable and highly responsive source of credit to all-sized local businesses, professionals and nonprofit organizations.
What role do branches still play in your business as online and mobile banking seem to be the way the industry is going?
As a business bank, our bank is less reliant on branches than a consumer-focused bank and many of our customers’ day-to-day banking is handled online. Our customer contact is primarily through our relationship managers who often meet with them at their place of business.
What will a bank branch in Las Vegas look like in 10 years?
I think there will be fewer new branches opening than in past decades as technology continues to expand and new generations are more reliant on digital technology for many of their service needs. Nonetheless, I believe branches will continue to be a needed component of the industry’s delivery system, perhaps with more emphasis placed on adding value through having opportunity to having financial expertise available onsite rather than routine transactions.
We’ve been told that lending has picked up in Las Vegas. Who is borrowing?
We’ve seen an increase in commercial real estate as the market continues to improves and construction is also picking up in Las Vegas, with new opportunities with Las Vegas contractors. Downtown Las Vegas is also experiencing a surge of new businesses in the past few years and new businesses are coming here. We anticipate this trend of new businesses entering the market to continue, strengthening our economy through diversification.
Randy Boesch
vice president and director of private banking, Nevada State Bank
Time on job: 2 months at Nevada State Bank
Hometown: Newark, Ohio
Highest point in banking: Right now. I am very fortunate to be with the oldest and largest state chartered bank totally focused on Nevada business.
Lowest point in banking: Witnessing the failure of so many community banks in our state during the recent recession.
Alternate career: Working at a golf course in some capacity. Maybe a caddy.
What is the one-year trend that will have the biggest effect on your business this year? In private banking, I think the trend we’re seeing is that clients are seeking good, sound advice. It’s a trend that started a couple years ago. High net-worth individuals are looking to round out their team of advisers. They seek counsel on banking, wealth planning and investments, and they really value the relationships they have. Part of that is asking us questions — “What do you think about this?” — and those are all services that we offer.
What will a bank branch in Las Vegas look like in 10 years? When I started in banking back in the ’70s here in Las Vegas, I was with First National Bank in Nevada. At that time, there were about 40 tellers in the main office downtown. If you walk into a branch today, you’ll likely see two or three. With technology there will be more services, but unfortunately less of a need for humans. But someone will always be there. We value relationships. You may see less staff, but our brick-and-mortar branches will still be standing, and our staff will be there to help clients access new, different channels of service.
We’ve been told that lending has picked up in Las Vegas. Who is borrowing?
We’re seeing an across-the-board increase. Client confidence is growing. Areas like small-business lending are increasing. Commercial lending also is picking up, and lending to wealthy clients is increasing, too. More credit-worthy customers are coming to us saying they are ready to borrow to invest in business because they are more confident they’ll be getting a reasonable return. Our economy is headed in the right direction.
Leo A. Moschioni
senior vice president/Southern Nevada market manager, Plaza Bank
Time on the job: Four years (started at Plaza Bank July 2010)
Hometown: Las Vegas (moved from Chicago as a baby)
High point in banking: Right now. Things are going really well. I’m basically over all of the Las Vegas market.
Low point in banking: Same as everyone else — five years ago!
Alternative career: A chef. I love to cook.
What is the one-year trend that will have the biggest effect on your business this year? The general uptick in the economy moving forward. When the economy does well, banks do well, and Las Vegas does well. I don’t know if there’s one area of business that is better than others.
What role do branches still play in your business as online and mobile banking seem to be the way the industry is going? We’re a single-branch location in Las Vegas, so mobile and online banking is huge. That’s the future — It’s all about doing things on the go.
What will a bank branch in Las Vegas look like in 10 years? Very high-tech. I think you’ll see less paper being utilized, more electronic signature pads, just more tech-y. You’ll see all that filter down into banks for sure.
We’ve been told that lending has picked up in Las Vegas. Who is borrowing?
You’re seeing contractors borrowing again — businesses are growing. Professionals are borrowing again, doctors and lawyers, too. So I’m focusing on those industries.
