Nevada bank cashes in on its Wal-Mart association

Chris Jones

Monday, April 1, 2002 | 11:02 a.m.

First National Bank of Nevada has grown from a two-branch operation in 1998 to its current 10 locations mostly due to its single owner and partnership with Wal-Mart.

But with Wal-Mart capable of operating a limited number of stores in Southern Nevada, First National's latest expansion was a 9,000-square-foot freestanding branch that opened in December at Flamingo Road and Decatur Boulevard.

The new branch, which held its grand opening last week, increased the bank's employee total to about 120 statewide.

The bank's assets have risen from $47 million in December 1998 to more than $241 million at the end of February. Dave Groshong, president of community banking and First National's top local official, said the Las Vegas-based bank's early success stems from the stability and direction of its owner, chairman and chief executive officer, Nevada and Arizona businessman Raymond Lamb.

A 62-year-old attorney and entrepreneur, Lamb has sole control of the bank, as well as the 19-branch First National Bank of Arizona. Groshong said having to answer to just one owner makes it easier assist customers, who range from small retail banking clients to real estate developers financing multi-million dollar projects.

"Being privately held, we've got more autonomy as a staff to get things done," Groshong said.

Larry Hickman, deputy commissioner of the Nevada Financial Institutions Division, said he is unaware of any other individually owned bank in the state. While he believes a bank's performance is ultimately determined by the skills of its management team, he said sole ownership could offer some advantages.

"It simplifies the chain of command because the only person the manager really has to answer to is Mr. Lamb," Hickman said.

Lamb, who bought his first bank before age 30, entered the Nevada market with the 1998 purchase from developer Don Laughlin of Laughlin National Bank, a two-branch operation that had served customers primarily of that town and nearby Bullhead City, Ariz.

Lamb changed the bank's name to First National Bank of Nevada.

By the close of 2001, the bank had expanded its operations to include branches in the Las Vegas Valley and Northern Nevada, as well as mortgage operations in more than 40 states. Last year, the bank reported net income of more than $3 million.

While its June 2001 Nevada market share still represented less than 1 percent of the state's market -- well behind Wells Fargo's state-best 25.4 percent -- First National's in-state deposits had eclipsed those of some well-known banks competitors such as Washington Mutual, Sun West and Valley Bank.

Lamb's two sons, Patrick and Philip, serve as bank executives. Groshong said the stability of family ownership protected the bank during the merger craze of the late 1990s.

"The Lamb's ownership and succession plan has insulated us to changes faced by some of our competitors," Groshong said. "The mergers also helped us to hire some talented people who were forced out when their banks were taken over, so (mergers) have helped us in several ways."

Groshong said the bank also benefited from its exposure in local Wal-Mart stores, where an estimated 200,000 people walk by its four in-store branches each week.

"I can't guess how much that has helped this bank," Groshong said. "Wal-Mart has been a great partner, and the rent we pay for that space is less than what we collect on ATM fees at those locations each month."

A fifth Wal-Mart branch is scheduled to open in North Las Vegas later this year. Groshong said he hopes to add more stand-alone branches in the next 12 to 18 months.