 Barry Uzel describes how this community bank combines good people with the right technology to create value for customers.
In 2006, Independent Community Bankers of America (ICBA) named the National Bank of California as a Top 20 performer according to industry earnings in the $250 million to $500 million category. The bank was also recognized in recent years by the US Small Business Administration (SBA) as one of the top lenders in California. Not bad for a $350 million Los Angeles-based community bank with five regional offices and less than 100 employees.
 Barry Uzel, President and CEO
For National Bank of California, attracting good people is a matter of maintaining a supportive, professional culture. Uzel said that pride and respect are commonly used words throughout the bank. “Even though we are a small bank, when our employees are at a social occasion and someone asks what they do for a living, I want them to take pride in saying they work for National Bank of California.”
Uzel also cites an open-door policy and managerial support as a reason for the bank’s healthy culture, as well as a wealth of career development opportunities. National Bank of California supports its employees as they seek professional designations and educational opportunities at local colleges and universities. In fact, it sets aside an education budget each year and encourages employees to use every penny. “We attract quality people and create an environment for them that is rewarding,” said Uzel. “As a result, a good portion of our employees have long tenures.”
Trimming down, shaping up
To keep a healthy efficiency ratio, given the size of the bank and economies of scale, National Bank of California focuses on offering its customers, mainly small to mid-sized businesses, value. As a result, the bank is deposit driven, putting core deposits such as demand accounts and money market accounts in the fore. The bank also maintains a fairly high loan-deposit ratio while maintaining enough liquidity to remain sound.
Simpler efforts to keep costs low include using standard mail as opposed to a dedicated courier service. “Businesses get in the habit of using these services thinking they are getting important documents to clients more quickly, but they don’t arrive much sooner than if they used standard mail—especially when you consider that the documents probably sit on someone’s desk for a day or two anyway,” Uzel chuckled. This strategy has saved the bank thousands of dollars.
National Bank of California uses a courier service occasionally, but remote deposit capture has almost eliminated the need. Almost two years ago, the bank began installing remote deposit capture capabilities at client sites, and it has been a boon for all involved. “It has not only made the customers’ business more efficient because they are collecting their money sooner, but it also saves us a great deal of money,” said Uzel.
The remote deposit system allows National Bank of California to send deposit check images to the Federal Reserve digitally. In fact, it was a pilot site for the technology. As a result, the bank has been able to keep staffing numbers level as it continues to grow throughout Southern California.
Uzel estimated that national Bank of California spends in the low six digits every year on technology upgrades. In October 2006, it upgraded to the latest version of Internet Banking, which features the Advanced Authorization security feature. The multi-layer security system authenticates users’ computers, displays a security image and caption prior to the user signing in, and asks three challenge questions determined by the user.
Several years ago, National Bank of California also introduced e-Vue statements to allow customers to receive their banking statements online instead of waiting several days for them to arrive in the mail. Not only can customers view cleared checks, they can also download details of their statements into an Excel spreadsheet or onto a disc.
Community banking
Uzel explained that each of the five offices throughout Los Angeles, Orange, and Ventura counties are run by regional vice presidents who are given the authority to grow the business as they see fit. Simultaneously, Uzel is always looking for the right expansion opportunities—organic of course. “Acquisitions are not only hard to come by, they are hard to achieve. You get better returns through organic growth.”
For instance, National Bank of California recently developed a factoring division to handle a different kind of lending than the bank has done traditionally. “We are looking forward to its future success,” said Uzel, adding that the bank also formed a merchant card subsidiary this year. “It is a passive investment, at least for the foreseeable future, and we hope it will complement our existing services.”
As a community bank, National Bank of California is always seeking opportunities to give back. Uzel leaves it up to his regional vice presidents to decide what charitable activities will benefit their respective communities. For instance, the regional vice president for the San Gabriel Valley Regional office is heavily involved with a major healthcare facility.
“Not only do we have a limited number of people, but we are limited in size, as well. We can’t be all things to all people, so we try to address the most poignant issues in each of the communities we serve,” he concluded.
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