LAS VEGAS - Las Vegas is a dream world for community banks these days.
The economy is booming. The oasis of red-roofed houses blooming in this desert valley grows daily. The local big banks have all had their own problems or been clumsily run by new owners in California - creating opportunities as grumbling business clients seek new bankers.
State officials estimate that 6,000 people are relocating to Clark County a month, most of them from California. The most oft-cited reason for the relocations is the bleak job picture in Southern California and the massive growth of casino jobs, which have grown 8% in the past year, employing 203,000 people. In the next six months, 1,200 new hotel rooms will be built.
Homebuying Frenzy
The top five home builders in Clark County closed on more than 1,800 homes in the first half of 1993.
The situation is topped off with acquisition activity. First Security Corp. in Utah just bought two local community banks for decent prices, an analyst reports. And bankers here report a fairly steady stream of inquiries from banks across the country interested in buying a subsidiary in Nevada.
"Well, it's just been exceptional," said Edward Jamison, chief executive of Nevada Community Bank. The bank, formed in 1990 and profitable almost from the start, was sold in August to First Security. "There's always been concern about this economy overheating, but the dips seem to be short and less of a burden than everyone fears."
It's easy to see why big interstate banks are interested in Las Vegas.
"We're finally starting to see some market share down here," said John Dedolph, chief executive of Sun State Bank, an $83 million-asset bank in Las Vegas. "You're going to see more people being acquired, I think."
Mr. Dedolph says he has received informal inquiries from acquisitive bankers elsewhere, but he and his board are relatively young and want to stay independent, he said.
State bank officials say four groups have applications. on file to start new banks, and Mr. Dedolph says he knows of several more investment groups that are interested.
