Independent Banker - February 2018 - 36

hard. Approximately a dozen local
banks failed. Construction came to an
abrupt halt. Property values plunged.
The unemployment rate nearly
tripled from an average of 4.5 percent
in 2007 to an average of 13.2 percent
in 2011. The population that once
soared by more than 38,000 residents
between 2002 and 2004 increased by
less than 5,000 people between 2007
and 2009.
But since then, the city has been
holding a winning hand. Last year,
more than 12,000 businesses were
formed, unemployment dropped to an
average of 4.6 percent and population
growth has picked up speed. Las
Vegas grew by nearly 11,000 new
residents between 2015 and 2016.
Despite the area's fierce competition,
local community bankers say things
are looking up. They are taking
advantage of the city's expanding
market to reconnect with borrowers,
strengthen existing relationships and
venture into retail banking.
Construction comeback
Loan demand for commercial projects
is increasing throughout the city.
A Strip mega-resort, a $1.4 billion
expansion of the Las Vegas Convention
Center, and a 65,000-seat
stadium for the Raiders football team
(which will relocate from Oakland,
Calif., in 2020) and the University of
Nevada, Las Vegas are just a sampling
of projects in the city's pipeline.
Construction has become one of the
largest industries behind gaming.
" We see a lot of construction
demand, a lot of loan demand for
either new apartments or rehab loans
for apartments, " says Justin Cabeza,
senior vice president at Town &
Country Bank.
He references a third-quarter 2017
report by Colliers International, an
organization that focuses on global
real estate market research and
property trends. It states that 5,789
multifamily units were under
construction last year in mostly
northwest/southwest Nevada, while
another 6,208 units will begin construction
this year.
Likewise, the Nevada Governor's
Office of Economic Development
(GOED) states that Nevada is " about
25 percent above the national average
for construction workers. " The construction
industry is also expected
to grow 19.5 percent in Nevada in
two years, from employing 82,637
Nevadans in 2016 to 98,718 workers
in 2019.
Meanwhile, Small explains that the
Las Vegas banking market is comparable
to other large-population areas
he has worked in, including Seattle.
He says his bank currently secures
much of its commercial business
through customer
referrals.
" There's no marketing
program, no
bells or whistles, " he
says. " By being conservative
and taking
care of our customers
... they refer us
to others no matter
what type of business
it is. This is just
community banking
at its finest. "
Small credits the
bank's recent success
to its management
and staff, who not
only have weathered
recessions throughout
their careers
but are also adept at
getting people back
on their feet. " If it's
a loss, it's a loss, but
we try to work out
some type of compromise
that's good
for both the bank and the customer, "
Small says.
If nothing else, Las Vegas is resilient.
But the city's growth appears
to be a double-edged sword. Jeremy
Aguero, a principal at Las Vegasbased
Applied Analysis, is predicting
a shortfall of 10,000 construction
Little-known Las Vegas
1. The Las Vegas Strip is
actually located in the
unincorporated communities
of Paradise and Winchester,
not Las Vegas.
36 ICBA Independent Banker February 2018
2. The Moulin Rouge, which
opened in 1955, was the first
racially integrated resortcasino
in Las Vegas.
Independent Banker - February 2018

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