Negocios Now

www.negociosnow.com NegociosNow Diciembre 2008 17 Octubre 2012 OPENING THE CREDIT GATES "Where Community Needs Intersect with Banking Innovation" By Clemente Nicado Carlos X. Montoya has been increasingly instrumental in the banking industry ever since he first began to study and act upon the Latino community's financial cir- cumstances—having realized early on that the credit needs of neither consumers nor small businesses in that community were being served. From his own extensive small- business lending experience at Repu- blic Bank and at Steel City National Bank, he clearly grasped the nature of that unmet need. Ever since, Montoya has tried to create a unique and innovative banking environment where people would feel comfortable and where a bank could provide needed products and services, be they lines of cre- dit, capital equipment and accounts receivable loans on the business side, or consumer loans, home equity loans and mortgages on the consu- mer side—all within a financial ser- vices framework that had never been truly focused on Latino or Hispanic- community needs. With more than 20 years of mana- gement experience in community banking (including serving as CEO of Republic Bank of Chicago), Montoya, who is one of the few Latino bank CEOs in the United States, founded AztecAmerica Bancorp Inc. and its wholly owned subsidiary AztecAme- rica Bank, which today has branches in Chicago and in Berwyn, Illinois. AztecAmerica Bank, as with many institutions across the country, has successfully tackled severe industry challenges that, given the breadth of economic conditions, have for- ced many others off the playing field. Yet while other banks have been shuttered, AztecAmerica Bank has remained vibrant and forward thinking as it employs unique and innovative solutions such as its Azte- cAmerica Business Infrastructure Group, a virtual community-banking "gateway" for providing business cre- dit access, education, and advoca- cy to the increasingly under-served Hispanic marketplace. Other recent developments include the certifica- tion of AztecAmerica Bank, by the Department of the Treasury, as a Community Development Financial Institution (CDFI), based on its his- torical track record of community- based lending. As a related result, the Bank is now recognized as a Com- munity Development Entity (CDE). The CDE is capable, based on qua- lified investments, of issuing federal income tax credits (New Market Tax Credits) for ongoing lending activities directed in the area of Disadvantaged Businesses and Communities. While speaking to business advo- cacy groups, as he does on regular occasion, Montoya often reminds audiences that his primary business objective has been to position Azte- cAmerica "Where Community Needs Intersect with Banking Innovation". owe your survival at a time when so many banks are being pounded by heavy storms? CARLOS MONTOYA: AztecAme- NEGOCIOSNOW: To what do you rica Bank has always stayed true to its founding principles of treating people with dignity and respect. This goes beyond speaking to customers in Spanish. It means not putting people or their businesses at risk by providing them with products or services that they cannot afford or do not understand. In avoiding the subprime lending markets for exam- ple, we accepted the fact that we would be passing up on quick pro- fit-taking. In the end, however, the decision to stick to our core princi- ples helped assure that we would be one of the institutions still standing after the inevitable financial industry shakeout. NN: Your executive experience in the banking industry is well known. How has that experience played a role in helping AztecAmerica weather the Great Recession? CM: I have been through several economic cycles — none of which were as bad as this particular one. My experience in South Chicago during the massive steel industry layoffs of the mid-1980's taught me that you need to be passionate about what you do; to believe in the fact that most people, despite their current problems, truly want to pay off their debts; and to know that, but for the grace of God, all of us could be there in the place of those facing difficult circumstances for whatever reasons beyond their control. NN: How do you define leadership as you've provided at AztecAmerica? CM: I have learned that when you are the captain of the ship, people look to you for answers, for critical support, for emotional relief. In a rapidly evolving regulatory environ- ment, it is your responsibility to keep up with the changing requirements and conditions. Our desire to serve, and serve well, at the intersection of human needs and hardcore business reality, is one that must be balanced, and is one that we cannot shrink from. Beyond that, it must be said, capital is king! NN: Years ago, businesspeople said it was easier to get a loan from a smaller bank. Is that still the case? CM: Community banks have always been able to differentiate themselves from the larger money- center banks — many of which now have asset bases in excess of one trillion dollars or more— that is sim- ply huge and extremely difficult to Continue on Page 18 Carlos X. Montoya, CEO and President of AztecAmerica Bank in Berwyn. Foto Brian Morowczynski

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