Start-up resurrecting 'Bank of Nevada' name

The Bank of Nevada, a well-known player in the industry in the 1970s, is making a comeback in the state.

Or, at least the name is returning.

John Gaynor, who started up Commercial Bank of Nevada in October 1994 and helped grow it to $130 million in assets before selling to Colonial Bank Group of Montgomery, Ala., in late 1997, said he will adopt the Bank of Nevada name with his newest venture.

Gaynor has applied for state certification as chief executive officer of Premier Commercial Bank in Organization. Recently, Gaynor learned that the corporate name of Bank of Nevada was available through the Secretary of State's office. He contacted the holder of the name and acquired the rights. Now, the new bank will take on the old name.

"I think it's great because many people remember the name and the policies of the old Bank of Nevada," Gaynor said. "I think it connotes a feeling of longevity. It's just a name, but it's a name that a lot of banks have tied onto."

Gaynor said the original Bank of Nevada dated to 1931 and was a well-respected bank based in Las Vegas. In the mid- to late '70s, Gaynor said the bank was combined with First National Bank in an acquisition by Western Bancorp, a predecessor to First Interstate Bank. It eventually became a part of the First Interstate empire that was taken over by Wells Fargo Bank.

The rights to the name were held by Bill Martin, now the president and chief executive officer of Nevada State Bank and a former executive with Pioneer Citizens Bank of Nevada. Gaynor said Martin was considering changing the Pioneer Citizens name to Bank of Nevada, but never did. Gaynor had a handshake agreement with Martin that he could take on the name when it became available.

"It's just a name, but look at all the banks that have 'Bank of Nevada' as part of their own names," Gaynor said. "We think it will be popular and some will remember the old Bank of Nevada."

One of those existing banks that uses a portion of the name -- Business Bank of Nevada -- isn't worried that there will be any confusion among consumers.

"I don't think there will be any name recognition problems," said Paul Stowell, a spokesman for Business Bank of Nevada. "I'm sure they will be formidable competitors in the community bank arena. They've clearly done their homework."

Stowell believes Business Bank of Nevada, which has been in operation for about five years, has a name that denotes its niche, but because of customer fallout from big bank mergers, there are plenty of customers to go around for the area's community banks.

L. Scott Walshaw, commissioner for the Financial Institutions Division of the Nevada Department of Business and Industry, concurs.

"The vast majority of these commercial banks are staffed with people who are longtime bankers in Nevada," Walshaw said.

"It's the continuation of a trend that has been around since the early '90s," he said. "Since that point in time, we have had a cycle of mergers and acquisitions followed by a succession of formations of community banks.

"This is the third time around for John Gaynor, but that's not unusual. Most of those bank executives see it as an opportunity to get back to what they were doing in the first place."

That's the case for Gaynor.

In his banking career, Gaynor has seen both sides of the industry. He was part of a large corporate bank when he worked for First National Bank in Reno, which became part of the First Interstate Bank chain, now Wells Fargo.

After a stint managing the loan portfolio for Continental National Bank, Gaynor took on starting up Commercial Bank. He said he enjoyed his stint with the small bank, but he couldn't argue with shareholders who wanted to sell out -- he said they made a 250 percent profit on their investments.

Gaynor said he made the decision to start a new community bank because his heart is in that type of banking.

"My personality fits the style of the community bank," Gaynor said. "I'm more of a people person.

"But in a community bank, you're also much more visible when you make the wrong decision. You can't hide behind the bureaucracy."

As the head of a bank-in-organization, Gaynor will be responsible for raising about $7 million to capitalize the institution.

The process began earlier this year when Gaynor formed a board of directors to manage the startup. The board drew a plan and applied to the state for certification. In addition, the bank board agreed to become chartered by the FDIC and applied for member status.

The application requires a series of background checks of bank officers and a joint field examination by the state and the FDIC. Once those agencies review and approve the bank's formal business plan, it can begin selling stock in the company.

Gaynor said the state has received a large number of small bank applications, which he also attributes to a backlash to the merger mania that has swept the banking industry as well as a general population increase in Las Vegas.

"I think the upheaval (in the industry) continues to drive customers to the community banks," Gaynor said.

Walshaw said there currently are three community banks in organization before his office.

The field examination has been completed on Gaynor's bank so he has begun formulating plans to sell stock.

Gaynor said he will target large investors. He hopes to sell 70 units at $100,000 apiece to raise the $7 million to capitalize the bank. More than 20 percent will be invested by bank officers.

Gaynor said some of his contacts were with former Commercial Bank customers who "were pleased to see me."

The new Bank of Nevada will start with a single 6,000-square-foot branch, occupying the ground floor of an 11,000-square-foot office building on West Flamingo Road, between Buffalo and Durango drives.

Gaynor will serve as president and chief executive officer and the bank will start with 14 employees. Profits will dictate the speed of growth of the bank or whether new branches will be opened, Gaynor said.

"One of the problems is the larger you get, the harder it is to maintain the close relationship customers associate with a community bank," Gaynor said.

Gaynor said that while he feels using the Bank of Nevada name will help the success of the institution and he's looking forward to the new association, it has an even greater significance for one of his officers.

Chief Financial Officer Pat Kirkwood started her career with the Bank of Nevada. Now, she hopes to end it with a bank of the same name.

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