Vectra Bank President and CEO Bruce Alexander has doubled his institution’s assets in his nearly 20 years at its helm. The bank has now enjoyed four consecutive years of increased profitability and holds more than $3 billion in assets.
This Q&A has been edited for style, clarity and brevity.
You recently talked to DBJ about banking-market turmoil. Tell us a little bit more about that, what it means for the state and how Vectra will continue to leverage it. There has been turmoil in Denver banking as of late: Smaller community banks are merging in order to create enough critical mass to survive. Midsize banks are being purchased by larger organizations, which usually means the business models of those banks being acquired can change, which can result in disruption to customers. The largest banks are focused on efficiency and in many cases are shrinking staff — especially in smaller markets.
Our focus at Vectra has been to leverage the size and strength of our balance sheet, yet be certain that we make decisions close to our customers to ensure we understand what they need. This big-enough-to-count-but-small-enough-to-care model resonates with our staff because they know they can truly make a difference. This also seems to resonate with employees of other banks and has been part of our success in recruiting them to become a part of our team.
And this isn’t the first time you’ve capitalized on a climate of high M&A activity. Vectra Bank Colorado is the result of the merger of 21 independent community banks nearly 20 years ago, and you led the charge. What did you learn then that you’re applying now? Merging 21 different community banks into one was a fascinating and challenging endeavor. Each bank had a different culture and a different operating mode. We learned that we needed: a clear a vision of what the new consolidated model would look like and that every decision we made would stay true to that vision; we needed to respect the uniqueness of each organization and the community it served, yet we also had to have the courage to make those changes needed to move forward; we needed to identify the talent in each organization and find a meaningful role for them in the new organization; [we needed] over-communication on everything we did — without clear and transparent communication, change is almost impossible.
You also worked closely with Gov. Bill Ritter to address financial and economic challenges during the Great Recession. As the “R” word creeps up in more and more news reports along with stories about the inverted yield curve and tariffs, how is Vectra Bank preparing for the next one? As bankers, we need to be students of the economy. We need to anticipate what changes are ahead of us and help our customers understand those changes as well.
We anticipate low interest rates will be the norm for a while and we all need to adapt to this new environment. A slowing economy puts pressure on our customers. They and we need to closely monitor operating expenses and begin to trim those expenses if revenues are also slowing.
Your philanthropic work extends beyond Vectra’s annual $700M in donations to local communities and into personal work with the Fed, Denver Housing Authority, Nature Conservancy and Colorado Health Foundation. How do you decide where you’ll devote your time, and how do you make time to do it? I support those organizations that I believe can truly make a difference. Denver Health, for example, is a public hospital that is critical for providing care to low- and moderate-income patients. They created a disciplined and effective operating model and their staff are all passionate about serving their patient base.
I make time for those organizations that have a positive and energized culture that is inspiring and empowering.
What’s the next big trend in banking our readers should keep an eye on headed into 2020? The big issue for banking in the next decade will be technology. I ask all my customers, “What will be the Uber of your business?” and, “What forces can disrupt your business in the future?”
Rock-star extra
Favorite musician: U2 — incredible performers, wonderful inventory of songs over the years and they are committed to making a positive impact in the world
Walk-up track: "Beautiful Day" by U2
Favorite music venue: Red Rocks
Most recent show: John Hiatt and Lyle Lovett
Dream backstage pass: Grateful Dead: They are cultural icons, are great performers and have been successful for decades.
Rider demands: I am pretty easy going; probably nothing.
Backing band: The backing band is what it is all about. They create the color, the energy, the timing, the creativity and the discipline of playing well. The operations team which is all our support group are our roadies — we can't get anywhere without them. Our sales team and bankers are the dancers — they create connection with our customers or our audience. The members of the C-suite are the musicians. They write the music, lay down the tracks and inspire others to perform. It only works if the entire band works together
Keeps him grounded: My children. They help me not take myself too seriously. My community involvement helps me keep a balanced perspective on the issues facing all of us.
Who he'll thank at Grammys: My team, my parents and my family
Traits of rising stars in office: They are bright, driven, compassionate and have a bright vision for the future. They are willing to ask questions and make a difference in everything they touch.
Words of advice for those rising stars: Be inquisitive. The greatest leadership skill one can have is the ability to listen, to ask good questions, to gather good information. This empowers others and engages other team members and helps ensure the right answers.
Proudest accomplishment of past year: My work on building coalitions between business and environmental communities to help address climate change
Focus of future biography: My commitment to community and all the organizations I have supported. That we built Vectra Bank into a highly performing company with a strong and engaged culture. That I made a difference in every organization I touched, and that I positively impacted the lives of those around me
Title of that biography: "Make a Difference!"
Currently reading: Denver Business Journal, Wall Street Journal
