New community bank opening in Las Vegas

It's back to the future today for James Bradham and Claudine Williams.

For the former top executives of the defunct American Bank of Commerce, today's opening of Nevada Commerce Bank marks a return to Southern Nevada's competitive banking wars.

Located at 3200 S. Valley View Blvd., Nevada Commerce will target small to medium-sized businesses and rich people as its primary clientele.

As chief executive officer of the new bank, Bradham returns to the same role he held during his tenure at American Bank. Similarly, Williams returns to her role as bank chairwoman, the same post she filled at American.

"I just got the itch to do this again," said Bradham. "I enjoyed the golf course, but I admit it's been very gratifying to have former customers ask us 'when are you getting back into the banking business?"'

Williams says despite recent changes in the banking sector, the type of service offered by smaller community banks is always in demand.

"Our emphasis here -- as it was at American Bank -- will be to provide the absolute highest quality customer service of any bank in town," she said.

In addition to her role as chairwoman at Nevada Commerce, Williams also serves in the same capacity at Harrah's hotel-casino in Las Vegas.

"Given my other position, I understand how important customer service truly is," she said.

It's been almost three years since American Bank of Commerce was scooped up by Salt Lake City-based First Security Corp. When it was acquired in spring 1997, American had assets of about $330 million.

Bradham said one of the biggest changes he's seen since re-entering Nevada's banking industry is the application process for starting a new bank.

"It's an arduous process these days. Our board of directors had to be fingerprinted, go through a background check and were then trotted down to Metro (police headquarters)," he said.

"Not unlike the casino business," added Williams with a smile.

One dark cloud looming over the bank's opening day celebration is the recent passing of Nevada Commerce board member and former Valley Bank Chief Executive Officer Ken Sullivan.

"He passed away two weeks ago, and it was a tragic loss for all of us," said Bradham. "He was a key figure in helping to make this bank happen."

In addition to Williams and Bradham, several other former American Bank employees have joined Nevada Commerce.

"Of the 10 staff members we have here, there's only one that I haven't worked with before," said Bradham.

Nevada Commerce opens with capitalization of $6.8 million. Bradham says that's up sharply from American Bank's capitalization at its 1980 opening.

"When we opened American, our capitalization was about $2 million," he said.

Recent mega-mergers among Nevada's largest banks -- including Wells Fargo's union with Norwest Bank, and Bank of America's merger with NationsBank -- have helped transform the state's banking landscape.

Ironically, the same financial institution that purchased American Bank in 1997 is itself currently undergoing a difficult merger.

"I wish the people at First Security well," said Bradham. "I will say that when they purchased us, we were treated great. They kept their word, and did everything they said they would do."

First Security is slated to complete its merger with Salt Lake City rival Zions Bancorporation later this month. However, in the wake of several glitches, industry watchers question whether the merger will come to fruition.

Despite the current turbulence, Bradham believes that beleaguered merger will eventually take place.

"At the end of the day, I think both banks will look around (at their competition) and realize they both stand to benefit from a successful merger," he said.

Following the recent flurry of big bank mergers, a perceived lack in financial services offered to Southern Nevada's small businesses has triggered a growth in new community banks.

Over the last few years, new entrants in the community bank sector include Sun West Bank, BankWest of Nevada, Community Bank of Nevada and Nevada First Bank.

Tom Mangione, chief operating officer of Nevada Community Bancorp., said his company is experiencing great success serving the small business community and high net worth clients.

"We've seen our loan activity far surpass what we expected," Mangione said. "Although our deposits are also ahead of what we've predicted, they haven't kept up with the pace of loan growth.

"We've seen loan activity exceed our expectations by about 40 to 50 percent."

Nevada Community Bancorp. currently operates Desert Community Bank and Red Rock Community Bank, and plans to open Black Mountain Community Bank by the end of the month.

Plans are in the works for a fourth bank before year's end.

Since last fall, the company's two banks have generated a combined total of more than $30 million in loans, with an additional $13 million "awaiting loan approval."

Mangione attributed his company's success to its loan personnel.

"People don't want to have to train their loan officers," he said. "We've been very fortunate to pick up high quality people as a result of several large bank mergers.

"More than ever, clients tend to follow the person rather than the bank."

That's exactly what Bradham is counting on.

"I think both Claudine and I bring with us (to Nevada Commerce) a history of banking in this community," he said. "Along with our very high quality staff, we intend to find that personalized service banking niche in this market, and do our best to fill it."

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