As a de novo bank in a turbulent financial
environment, what are 1st Commerce Bank’s
biggest challenges and how has it overcome
them?
1st Commerce Bank opened its doors for business in October 2006. Not long
afterward, the initial signs of what would later be classified as a mortgage crisis
began to surface. What was initially planned to be a steady growing market,
listed as the second-fastest growing city in the country in 2006, was about to
experience some of the highest foreclosure rates in the country. Although 1st
Commerce Bank did not directly participate in risky or subprime mortgage
lending, the impact was felt across the community. As a result, the bank has
had to navigate through turbulent financial times early in its business cycle. The
biggest of these challenges initially was liquidity.
As a community bank, 1st Commerce Bank addressed the challenge of lack of
liquidity in the market with the core of our business model, relationship banking.
We recognized that as liquidity became scarce in the market, developing and
maintaining true business relationships would be key to our success. Our
dedication and commitment to building the bank through core deposits and
business relationships has allowed the bank to sustain healthy levels of liquidity
and remain in the business of lending, even through tough financial times. The
ability to be there for our community and stand strong among our peers is a
cornerstone of our bank and a testament to our commitment and the essence
of community banking.
— Al G. Gourrier, President