Q and A with Jerry Aldape 

Since Jerry Aldape became president of Syringa Bank in February 2000, the Boise-based institution has grown from one branch to five and increased total assets from $32 million to just over $200 million — a milestone reached last week.
Syringa opened a new branch office this week in Middleton, and plans new offices in southeast Meridian and in Lewiston. Syringa also operates offices in downtown and central Boise, as well as in Meridian and Eagle.
Aldape, 57, grew up in Boise and graduated from Boise State University. He started his banking career in 1979 in Boise with the old United First Federal Savings, which Washington Federal Savings later acquired.
He served as president of Pioneer Bank in Baker City, Ore., from 1994 to 2000.
Pioneer later was acquired by Clarkston, Wash.-based First Bank.
Syringa Bank opened in February 1997. Aldape took over as president three years later after Bud Wood retired.
The bank now employs 66.

What do you like most about Syringa Bank?
I work with some of the best people in the Treasure Valley, and I really enjoy that. I get a bigger kick out of a customer who thanks me for an experience he had at the bank than I do from a stockholder who compliments me on management of the balance sheet.
Banking is a dynamic business, and we are going to make our success through hiring the right employees. If we hire the right people in the right positions, the balance sheet and profit and loss will take care of itself.

What is the bank’s market niche? Has it changed recently?
It always has been small commercial business, both on the loan side and the deposit side. We also do everything for the consumer, from boat loans and car loans to home equity loans.
Our bread and butter is small commercial banking. Our legal lending limit in 2000 was about $300,000. Now it’s up to $4 million. Our sweet spot on the low side is still at $50,000. We do a lot of commercial lending and can go up to $1.5 million very comfortably and as high as $4 million.
We are a community bank that specializes in small commercial lines of credit and deposits. We’ve been very successful at that and we don’t plan to change that.

What banking products and services are in greatest demand now? Where is demand slowing?
The Treasure Valley is a very positive economic climate. We still see a lot of demand for small commercial banking. The entrepreneurs are still here, and we are going to continue to provide capital to grow the Treasure Valley. The economy may stabilize, but it’s not going to implode.
We’ve had a challenge growing our demand deposit accounts. That’s normal in a high-growth area, where you see more demand for growth capital. Every bank in the Valley is growing on the earning-asset side.

How is the competitive environment? Does southwest Idaho have too many banks?
This is a very competitive environment and the future is going to bring more competition. This is the most economically dynamic area in the state.
I feel that there are too many branch banks around here, and that it’s going to be difficult for all of us to be extremely successful. No one is going to lose money or go under, but if you’re looking to have 25 to 30 percent growth each year, that’s going to be difficult for all financial institutions.

Syringa Bank has been adding branch offices at a fairly fast pace. Why is the bank in growth mode now?
Our business model works. We hire the right people, we pay them over the market rate, and we treat our customers like they are really important to us. We take nothing for granted in every business relationship we have.
We’ve been growing 25 percent, and our balance sheet is probably better than most. As long as we can have quality growth and we don’t do something stupid, we will continue to aggressively grow.
Many mortgage companies have entered southwest Idaho or expanded here in recent years. Is that particularly challenging for community banks?
Our mortgage department in the last three months has been extremely successful. We will exceed our 2006 budget target in our mortgage department. We have had a good year, and the last three months have been exceptional. Most of our mortgage business is repeat business.
We know the market has been extremely competitive. Is this particularly challenging for community banks? I don’t think so. One thing about a community bank is that if we get a customer in the door, no matter what type of loan they are looking for, we are there to help them out. We are a relationship-based bank.
As long as we are able to sell mortgages into the secondary market, we can be very aggressive on our pricing because they are not going into a portfolio.

When should a business consider working with a community bank? When is a large bank a better option?
I meet people all the time and ask them who they bank with. And they tell me large banks, small banks … I ask them, “Do they understand you and the risk you have personally and professionally?” If the answer is yes, I tell them they should stay there.
Sometimes, large commercial customers need a large financial institution, and are not looking for understanding, they are looking the lowest bid.
Every institution has a loan-to-one-borrower restriction. To us, it’s 20 percent of capital. The largest loan we can make to one entity is $4 million.

What is the best part of Syringa Bank’s balance sheet? Where are the opportunities for growth or improvement?
The best part of the balance sheet right now is our quality loan portfolio. We have one of the lowest loan delinquencies, and one of the most conservative balance sheets.

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