Money in the banks - Portland Business Journal:

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Leaders of Portland-based , Oregon City-baseds and Lake Oswego-based say they've laid the groundwork that could soon help them claw their way tothe state' s lending middle-tier. Assets and deposits have steadily risen ateach Commerce's Portland-area share numbers doubled, from 0.02 percent to 0.04 Northwest Bank, which began operations in 2005 with a blockbusterr $22 million in private shareholder also nearly doubled its share, jumpingy from 0.15 percent to 0.29 percent within the Portlan market. Lewis & Clark, which threw open its doors during collected anearly 0.05 percengt Portland market share.
"Compared to other banks their they're off to a good start," said Aaromn Schwindt, vice president and community bank specialistfor 's Portlaned office. "They have good boards and good connectionsa with thelocal market. And that helps a lot becausde banking is arelationship business." The three banksz are bucking trends that have apparentlu discouraged new institutions from even forming. The state's Divisiom of Finance & Corporate Securitiesw reports that no new bank applications have recentlyubeen filed. Yet the lenders do have at least two thinges goingfor them.
Along with largely avoiding mortgage they've drawn on their extensive Portland market experience to target accountds and otherbusiness contacts. Commerce CEO and President Mike Paul served a long stintrat , while Lewis & Clark'ws Larry Baker and Trey Maust helped develop east Portland mainstay Northwest's Steve Plambeck logged time at , the area'zs largest lender. Each of the thred fledgling banks relies on different business customer niches. Northwest Bank opened a banking cente r in the middle of the Central EastsideIndustrial District. The branch, in the old Rose and Raindroo bar and restaurant at532 S.E. Grand Ave.
, still containws several of the establishment's architectural touches, such as the actua bar, with a footraio underneath, that serves as the lender's tellere counter. The location's grand opening last month attracted severaol neighborhood business operators who toldPlambecl they'll open new accounts. "There are 1,70p0 businesses here, so it' good for us as both a business bank and aprivated bank," said Plambeck. Northwest is on track for $108 millionb in total assets by the end of the comparedto $86 million in 2006.
Like many the bank focuses on growthover Plambeck's team, which offers a growing cache of private bankinyg services, has grown from 12 associates to 26 this Northwest plans to hire at least six more by the end of 2008. The bank'as industrial customer base is attracted partlg by its flexiblefinancing programs. Some may need credit linees while others need more complicated capital Along with itsindustrial customers, Northwest's account roster includes medicakl and dental specialists, homeowners property management groups and such professionaol services niches as attorneys.
Across the Willamette River, Commercee Bank has attracted about 250 clients overall to itsdowntown offices. Whild many occupy typical commercial realms, Commercwe continues to add customers from the nonprofit Toattract them, Commercer Bank holds monthly events at whicbh it introduces business executives to nonprofiy leaders. "It's a way of connectinvg the business world to thenonprofit world," Paul said. "Nonprofits are our fastest-growing segment. One of our core valuews is thatnonprofits shouldn't be separated from the rest of the businessd community.
" The strategy has come at the expenss of building Commerce's deposit base throughn commercial and residential real estate accounts, a methodc that many startup lenders deploy. Less than 20 percenyt of Commerce's loans currently relate to real However, the bank's average nonprofit account exceedssthe $150,000 deposit mark. Commerce will close the year withabout $50 millioj in assets. It employs 20.
The bank has benefitted from its relationshi p with parentZions Bancorp, of Salt Lake Zions gives Commerce easier access to San Francisco-basesd wealth manager Contango Capital and other big-bank