New bank applications for Northern Colorado appear to have slowed down compared to the past few years, and the number of banks in the pipeline is about to shrink with the impending opening of Loveland's newest institution.

John Busby is preparing to have a soft opening of Loveland Bank of Commerce between Sept. 17 and Oct. 1.

"Somewhere within that two-week window, we will officially open Loveland Bank of Commerce," he said.

The bank is testing its systems and finishing staff training, but has already held its first organizational meeting and board meeting.

Loveland Bank of Commerce will open with six employees, including Busby. His senior staff members are Troy Meissner and Stephanie Rankin. Meissner previously served as a senior credit officer at Centennial Bank of the West and will hold the position of senior vice president and chief credit officer at Loveland Bank of Commerce. Rankin, who previously worked at Bank of the West in Berthoud, will serve as vice president of operations.

Loveland Bank of Commerce is a sister bank to Fort Collins Commerce Bank and Larimer Bank of Commerce. But Busby wants to make one thing clear:

"We're a free-standing bank, not a branch," he explained.

Loveland Bank of Commerce operates under the Capitol Bancorp Ltd. model, just as Fort Collins Commerce Bank and Larimer Bank of Commerce. Capitol Bancorp is technically a bank holding company but acts more as a behind-the-scenes support system for community banks throughout the nation. It provides early startup capital, backroom operations and a slew of products to 54 banks under the Capitol umbrella.

A vast majority of the shareholders at the banks operating under Capitol Bancorp's model live in the community that bank serves. Loveland Bank of Commerce has more than 150 shareholders - most of whom live in Larimer County.

Additionally, each bank elects a local board of directors to make credit and operational decisions. Joseph Reid, CEO of Capitol Bancorp, also holds a board position. Loveland Bank of Commerce, like its sister banks in Fort Collins, chose a diverse board with varying areas of expertise. The Loveland bank's board consists of:

• Jon Patterson, an attorney with Patterson Tabert Law Offices in Loveland;

• Leon McCauley, president and CEO of McCauley Constructors Inc. in Windsor;

• Ken Larson, owner of property management firm Riverstone Management Co. in Estes Park;

• Eric Holsapple, a principal of Loveland Commercial LLC;

• Ryan Ferrero, owner of Ferrero I-25 Chrysler Dodge Jeep;

• Nanci Garnand, a broker with Re/Max Alliance;

• Gerard Nalezny, president of Fort Collins Commerce Bank;

• Mark Kross, president of Larimer Bank of Commerce.

Having the board in place and meeting is one step closer to being open, a milestone that Busby has been long awaiting.

"It took longer than any of us thought to get to this point," he said. Originally he hoped to have the bank open in June. Much of the delay was due to increased scrutiny on the part of the regulators due to current market conditions.

According to the Second Quarter State Profile from the Federal Deposit Insurance Corp., growth in slowing in several areas of the Colorado economy. Employment growth during the second quarter was still positive at 1.9 percent but slower than second quarter 2006 when employment growth stood at 2.6 percent.

Residential building is showing a definite slowdown with a 25.4 percent decrease in single-family home permits compared to the same period last year. Multifamily building permits were up 2.9 percent from last year, but that follows a first quarter were permits were down 12.9 percent.

"The economic conditions really don't bother me at this time," Busby said.

The bank is opening with a well-established customer base. Additionally, with a focus on providing personal service to small and medium-sized businesses, Busby feels well insulated from the direct impacts of the region's struggling mortgage market. Busby feels that this softened economy actually presents an opportunity for the bank.

"In this sort of market, it allows us to be very selective about doing business with the right customers on the right projects."

Even with slower growth in the region, Busby feels confident that the bank will be successful. He expects to reach profitability in six to nine months.



Kristen Tatti covers the banking industry for the Northern Colorado Business Report. She can be reached at 970-221-5400, ext. 219 or ktatti@ncbr.com.