Banking on It - June 2005

Community Bank of Nevada

Enjoying Steady Growth

by Tom Dye

When Ed Jamison opened the doors of Community Bank of Nevada 10 years ago, the operation was small – very small.

The bank operated out of a triple-wide trailer at 1400 S. Rainbow Blvd. in Las Vegas. Its total capitalization was only $8.1 million. The new financial institution faced stiff competition in a community where huge banks such as Wells Fargo and Bank of America were the big players and many smaller banks were being swallowed up by larger competitors.

The new bank saw astounding growth in its first decade of operation. By May 2005, Community Bank of Nevada had five branches, held deposits of $650 million, and had grown its staff from just a few employees to 120. Three years ago, the bank opened its City Centre branch and corporate headquarters downtown at 400 S. Fourth St. "We have been profitable since the second month of operation," pointed out Jamison, who serves as the bank’s president and CEO.

Community Bank of Nevada began expanding in September 1999 with the opening of a branch at 2887 S. Maryland Parkway. It now also has branches in Green Valley (1441 W. Warm Springs Road) and Summerlin (7676 W. Lake Mead Blvd.).

The key to the bank’s success has been the decision to focus on providing banking services to business customers, Jamison said. The bank serves a wide variety of businesses of various sizes. "We are a high-service, high-touch business bank," he said. "We go out to meet with our customers, rather than having them come to us."

Community Bank of Nevada, which had an after-tax profit of $5.6 million in 2004, raised an additional $45 million through a public offering held in December. Its holding company, Community Bancorp, which owns 100 percent of the bank’s shares, is listed on NASDAQ.

On May 19, Community Bancorp announced the signing of a definitive agreement to acquire all the common stock and equivalents of Henderson-based Bank of Commerce for approximately $40 million in cash and stock. Bank of Commerce, founded in 1997, is a commercial bank with assets of $167 million as of March 31, 2005 and three branches in Southern Nevada. It is the first acquisition for Community Bancorp.

Bank of Commerce will be merged into Community Bank of Nevada under the holding company. The combined institution will have approximately $800 million in assets and nine branches.

"This transaction is very exciting to us, as it broadens the scope of our franchise while adding a very attractive customer base," said Jamison. "Bank of Commerce has been extremely successful in attracting and servicing high-quality customers and we are looking forward to continuing that exceptional service to the combined customer base with a broader set of products and services."

The merger has been approved by the boards of directors of each company, but it must still be approved by the shareholders of Bank of Commerce and various regulatory bodies. It is expected to be completed late in the third quarter or early in the fourth quarter of 2005.

The bank plans to open another branch later this year near the Russell Road-Interstate 15 interchange. Expansion to other areas of Nevada also is being considered. "Our objective is to look for strategically located branches," Jamison said. "We have additional capital and can move forward quickly."

The bank’s long-term game plan is to expand outside Nevada and become a regional operation. "We are targeting high-growth areas," Jamison said. San Diego and San Bernardino counties in Southern California and Maricopa County in Arizona are possible sites for Community Bank’s expansion.

Tom Dye
Tom Dye is a freelance writer based in Las Vegas.