If he had it to do over again, Grant Markham might not launch a bank at a time when interest rates were dropping rapidly to levels that hadn't been seen in 40 years.
But the way things turned out, falling interest rates and the way they squeezed banks' margins really isn't much of a regret.
First Independent Bank, the Reno-based institution where Markham serves as president posted a $1.4 million profit in 2002, its third full year in business.
That's more than double the $525,000 earned by First Independent Bank in 2001.
Even in its first full calendar year of business 2000 - the bank earned $25,000.
In fact, Markham noted with some pride a few days ago, the bank has been profitable since its eighth month and hasn't shown a monthly loss since then.
One of the gaggle of new independent banks to sprout in northern Nevada during the past few years, First Independent Bank seeks to carve a niche for itself as a commercial bank, one focused primarily on serving
businesses.
It doesn't, for instance, provide an automated teller machine at its headquarters branch at 6518 South McCarran Boulevard.
(Customers who need teller machines get fee-free access to the Wells Fargo network.) At the same time, however, three fulltime couriers made 1,000 pickups from businesses last month.
Most of the bank's loans which totaled $88 million on Sept.
30, according to its most recent filing with the Federal Deposit Insurance Corp.
are business loans.
And even with that specialty, some 70 percent of the loans are for real estate, said Jim DeVolld, the bank's executive vice president and chief credit officer.
First Independent's depth in commercial real estate lending grew substantially deeper late last year year when First Independent Capital of Nevada, the bank's parent, purchased Smith Realty Finance, a 14-year-old real estate commercial brokerage firm based in Reno.
The division handles packages for the purchase and refinance of commercial real estate in northern Nevada.
The upshot of the acquisition? "If a deal comes along, we don't have to say, 'Sorry, we can't handle it,'" Markham said.
The bank's profits also reflect the willingness of its investors 94 percent of them from Nevada, with northern Nevada residents owning more than 70 percent of the stock to spend money early in the game.
The bank raised $10 million in start-up capital, then quickly raised another $4.5 million from investors when its early success became apparent.
Investors agreed with Markham's proposal, for instance, to spend relatively heavily on back-office technology even before the bank became profitable.
That paid off in customer service.
Commercial customers, for instance, can regularly receive a compact disc that contains copies of all their checks.
Equally important, Markham said, was the efficiency of making the big investment early.
"It's easier and less expensive for us to do it now than when we're bigger and have more customers," he said.
In almost the same breath, however, Markham said investments in technology aren't the secret to success.
"You can have all the technology in the world, but what really has fueled the bank is that we've been able to attract some experienced local people who believe in what we're doing," he said.
In fact, First Independent which has a staff of about 45 sometimes has been moderately overstaffed because the bank wanted to grab good people as they became available.
Those employees are pointed toward growth targets that Markham acknowledged to be aggressive.
The bank's big job this year is construction of a headquarters building on South Kietzke Lane.
Last year's job was opening a branch office at 725 Sparks Boulevard.
The timetable includes some sort of expansion in northern Nevada each year, Markham said.
