New Nevada bank association chief has eye on future

Phyllis Gurgevich earned a bachelor’s degree in sociology with a concentration in criminal justice and an English minor from Purdue University. But instead of interviewing criminals or possibly writing true crime novels, Gurgevich built her career around writing and publishing for trade magazines and running associations, specifically focusing on technical innovation, intellectual property consideration and positive consumer messaging.

Before joining Nevada Bankers Association, Gurgevich was general manager for Access, a secure records and information company in Las Vegas.

“I’ve enjoyed many years of working with industries in fostering growth through association, community relations and advocacy,” Gurgevich said.

Gurgevich said she understands “the challenges and opportunities that lie before us.” She might have only been on the job four months, but she is moving the Nevada Bankers Association to rebrand its website, launch a social media presence and expand its educational offerings and community relationships.

Gurgevich replaced Bill Uffleman on July 1. Uffleman spent 10 years as the association’s president and CEO, replacing Ted Wehking, who stepped down in 2004.

“We are very grateful to … William Uffleman for the association’s achievements during his tenure,” Nevada Bankers Association board Chairman Ray Specht said. “We are fortunate … to have recruited an exceptional leader and manager as his successor.”

Gurgevich recently took some time to talk to the Las Vegas Business Press about the Nevada banking industry’s health.

Q: What is the outlook for Nevada banks?

A: The state of the industry right now is interesting. Most call it OK and getting better, perhaps still a ways from great. Banks as a whole are getting stronger; they do remain extremely secure. (In the history of the Federal Deposit Insurance Corp., no depositor has ever lost a penny.) Earnings are up, capital is high and banks have a lot of liquidity. Yet there are some frustrating hindrances impacting the ability for banks to fully serve their communities.

Q: What do you feel are some of the opportunities and challenges for Nevada banks?

A: Regulatory overload is one challenge impacting banks. The escalated costs and personnel time required for compliance with all of the new regulations is taking away from the ability to invest in consumer-focused efforts. Overly tight regulation is impacting a bank’s ability to roll out new products and services as well as limiting their ability to write the loans customers need to get local community economies growing again. It has also hindered new entries into the market.

Q: What specifically in Nevada is a problem for banks?

A: In Nevada, we are watching the HOA superpriority lien issue closely. The idea that these liens can sell a multimillion-dollar home for a few thousand dollars and extinguish the purchase money creditor’s lien entirely is staggering. The concept disrupts the basic premise of secured lending and adds massive risk. Homeowners who may want to sell, new buyers looking to invest in the Nevada market, homebuilders: They all stand to lose through reduced access to loans and stand to be penalized with higher rates and fees to offset the higher risk created by those who may default on the loans.

Q: What effect are the near-zero interest rates having on bank earnings?

A: Interest rates do remain low, and the federal regulators are a bit vague about when they may change it. Banks can only wait, watch and offer the best they reasonably can to their clients under the regulated rates. Banks are looking to increase their lending portfolios. While borrowers can expect good rates and terms right now, the demand could be stronger. Some bankers see the strict regulation limiting lending. Others see there is still some uncertainty and hesitation due to the potential of a margin tax.

Q: And what lines of business are banks investing their dollars in?

A: Banks are investing heavily in the technology that makes accessing your money and making secure transactions as simple as flipping a light switch. Simultaneously they are investing heavily in security and safeguards to keep people and their money protected. Online and mobile banking offerings are on the rise, and there is no indication the technological advances will slow down.