Gary Blankenship, CEO, Bank of the West

In an interview with Invest:, Gary Blankenship, CEO of Bank of the West, highlighted the bank’s focus on strategic regional growth and community engagement in North Texas. He emphasized investments in digital innovation to match larger institutions and initiatives like partnerships with Texas Tech to nurture talent.

Could you provide us with an overview of Bank of the West in the region?

Bank of the West was established in 1986. Currently, we manage just over $800 million in assets and operate 10 locations, primarily in the Dallas-Fort Worth Metroplex. Additionally, we have branches in Marble Falls, Horseshoe Bay, Ponder, and Vernon, Texas. We’re a community bank, privately owned, and we’ve always prioritized serving our communities. It’s a mission we’ve upheld for many years, and we plan to continue doing so.

What is your perspective on the banking sector in North Texas and highlight any growth opportunities you see in the industry?

The industry has changed significantly since we started in 1986. For one, starting a new bank now requires much more capital, which has limited the emergence of new community banks. Additionally, the way customers interact with banks has shifted — there’s far less foot traffic at branches. Most transactions now happen online, whether through bill pay, treasury management services, or other digital tools.

Larger banks have been closing branches to improve efficiency, and we’ve adopted a similar strategic approach. We don’t open many new branches, but when we do, we’re deliberate about location and community needs.

Despite these changes, the North Texas market continues to offer opportunities. The region’s growth, particularly in housing and population, still demands additional banking services. Although growth may be slowing slightly, I believe the outlook for community banking remains bright over the next few years.

How do you plan to leverage North Texas growth to enhance your services and expand your market presence?

As a community bank, our focus is on serving and partnering with the communities we’re part of. That commitment runs through every level of our organization — my family and I, along with our employees, are actively involved in the communities we serve. We have no desire to become a national or international institution. Instead, we’re dedicated to growing strategically within our region.

For instance, we’ve expanded into areas like Horseshoe Bay and Marble Falls because they’re experiencing significant growth. While competition is fierce, as it has been throughout my banking career, we believe that by offering top-tier services and maintaining strong community relationships, we can effectively compete and thrive.

With the Federal Reserve cutting rates this year, how do you anticipate this will impact the broader North Texas business environment? 

Regulation remains a major concern for us. Under the prior administration, we saw a steady increase in banking regulations. However, with the new administration, there’s hope for a shift toward less regulation, which is encouraging.

As for the Federal Reserve, their decision-making seems uncertain lately. While they had signaled a potential quarter-point reduction this month and projected three to four more cuts next year, I believe that may now be delayed. Inflation continues to weigh heavily on the economy. Essentials like milk, bread, and eggs remain costly, and many people are still struggling. For instance, a jeweler friend of mine mentioned he’s seeing many customers selling their jewelry, which reflects the ongoing financial strain.

Inflation is clearly an issue, and while we can’t predict the Fed’s next steps, we’ll adapt as needed and move forward with strategies to serve our communities and customers effectively.

How is your bank, as a community institution, supporting small and mid-sized businesses in navigating these challenging times?

We stay in constant communication with our customers to help them adapt to new regulations, even those that may not directly involve banking services. By maintaining monthly or quarterly check-ins, we stay informed about their needs and challenges, whether it’s regulatory changes, operational constraints, or credit access.

Our credit services remain accessible, with no added restrictions, though we maintain a prudent approach. Ultimately, the best support we can offer is to remain flexible and attentive, helping our customers address their unique challenges and identifying ways to support their growth.

What is your assessment of the talent pool in North Texas and what strategies are you using to attract and retain talent?

Retaining talent has been one of our strengths; many of our employees have been with us for over 20 years. However, the employment pool is shrinking, and it’s become much harder to recruit experienced professionals, whether from other banks or elsewhere.

To address this, we’ve partnered with Texas Tech’s banking program to engage with recent graduates and students seeking summer or part-time work. This partnership allows us to train young talent, build a pipeline, and promote from within. Currently, we have about four trainees in our program.

This approach not only meets our growth needs but also ensures our team is well-prepared and aligned with our values. Training and nurturing talent internally has become our most effective strategy in this challenging hiring landscape.

With the increasing digitalization of financial services, how is Bank of the West adapting to meet client expectations?

We’ve made significant investments in technology over the past three to five years. Our goal has been to offer the same advanced digital services as larger banks, including online banking, bill pay, and treasury management solutions.

Staying ahead in this area is critical. We continually assess and adopt new products to ensure we’re meeting customer expectations. It’s an ongoing effort, but we’re proud to say there’s little that larger banks can offer that we can’t.

What are your top priorities for the next two to three years, and how do you see the banking sector evolving?

The last two years have been some of our best, and we’re optimistic about another strong year ahead. However, banking margins are thin, so controlling costs while maintaining excellent service is crucial.

As long as the Dallas-Fort Worth metroplex continues to grow, there will be opportunities for community banks like ours. While competition will remain intense, our advantage lies in providing personalized, hands-on service — something larger banks can’t easily replicate.

We don’t aspire to be a multi-billion-dollar bank. Our focus is on staying connected with our customers, understanding their needs, and ensuring we’re able to meet them. For the next few years, we anticipate steady growth for both our bank and the industry in this region.