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