In August, the board of Business Bank of Nevada received an unsolicited offer from City National Bank to purchase their financial institution, which was founded in 1995.
Jason Awad, who became chairman of the board of Business Bank of Nevada in December, 1999, said the bank has made an impressive turnaround in the last six years. “It was known as a ‘troubled bank’ and was under regulatory supervision prior to my becoming board chairman,” he said. Under Awad’s leadership, the board dismissed most of the bank’s executive team and began the process of rebuilding. “I give credit to all the directors who supported me in this new vision for the bank,” said Awad. “Our challenge was to transform the company from a troubled institution to a company that out-serviced many of its competitors in the state. Our goal was achieved by hiring the right people for the right jobs and changing the culture from the typical bank bureaucracy with excessive control of its employees, to one of self-disciplined respect and trust, focused on client services. Our ultimate goal is service, and once you work together as a team to give good service, success follows.”
Awad said he appreciates the stockholders who stuck with the bank during the lean years, when stock prices fell from the initial price of $10.00 to a low of $7.00. Persistence will pay off for these investors, since a $10,000 investment in the initial public offering in 1995 will be worth nearly $80,000 if the acquisition goes through.
Awad said the bank had reached a large enough size to appear on the radar screen of larger banks looking for a foothold in the thriving Nevada market. “It’s difficult to hire the proper personnel and management to start up a new bank,” he said. “City National was looking for a safe and sound institution with community ties, a good market share and a great management team.” Bank officials said the merger will allow the Nevada bank to make loans for as much as $100 million, giving them the ability to make loans to the casino industry, add residential home mortgage products and provide asset management services to wealthy clients.
Existing employees will still have a place in the new bank, said Awad, and senior executives, including President John Guedry, have signed contracts to stay with the bank.
