2013 Rising Stars in Banking: Ty Lucas

Few lenders are as creative in workout situations as they are in funding deals. Ty Lucas is one of those few, according to Mike Jacobson, president of NebraskaLand National Bank, North Platte, Neb..Eight months ago, Jacobson was worried. In 2008, the bank had made a loan to a developer for $6 million on real estate worth $7.5 million. When the bottom fell out of the housing market the developer had no buyers for its newly constructed homes. "If the deal had gone south, we would have lost $1 million on the loan," Jacobson said. "Fortunately, I have a Ty Lucas on board to make the right decisions.".When the customer approached the bank about exiting the loan, the bank knew things weren't as bad they seemed. "At the end of the day, it all started with the underwriting. The ground was in a great location and had many uses, and was tied to higher value houses. They are a capable and experienced borrower and the land was a good investment; extraordinary economic conditions were the only source of the problems," Lucas said. "We decided we just needed to wait for the economy to come back.".Both the bank and the borrower had the staying power to wait, Lucas said. "This borrower had millions in debt through various entities to other lenders and we had one of their smallest projects. So, we decided to defer payments for a few years to give them time to deal with the issues they had with their other banks," he said..Later the developer approached the bank about walking away. But Lucas rejected the notion. Instead he used the bank's leverage to keep the borrower involved while at the same time keeping the relationship from turning sour. "We told them from day one that we want every nickel; but Ty didn't make it personal. When it becomes personal, as a rule you will lose more money," Jacobson said. "Ty found a way to keep them and get them to the next stage.".Lucas also didn't give in as the borrower became more experienced at getting banks to cut their losses and settle at a discount. At one point the borrower had settled with every lender besides NebraskaLand. "We had to have honest, hard conversations with customers early on, but it really did help us through many of the issues," he said. "But, I am fortunate because I genuinely like 90 percent of the people we do business with. It was easier for me to see that they had just fallen on a bad turn of luck.".This ability proved pivotal for the bank. Lucas helped craft a deal between the borrower and another construction company that allowed the land to be developed and sold. The idea was that as demand returned in the housing market, this new construction company could section off parcels of land, build the needed amount of houses and sell them. The sale then paid the borrower and ultimately repaid the bank..NebraskaLand could not have done it without the borrower's expertise. "Developers have the knowledge about how the local municipality works," Lucas explained. "If our relationship with them had gone south we could not have accessed that knowledge. By keeping them as a partner, we worked together for a win-win conclusion."."Now, we expect to collect every dollar we're owed, including legal fees," Jacobson said. "I have seen many lenders; many get intellectually lazy in workout. Ty doesn't get lazy.".Jacobson said he credits Ty as one of the major players who is safely growing the bank, which has charged off less than $300,000 in bad loans to date, has no OREO properties, no loans past due by 30 days or more and no loans on non-accrual..Jacobson is quick to point out that Lucas is a highly-skilled lender..When Lucas returned to North Platte after completing a bachelor's of science degree in management from the University of Florida, Gainesville, and after working for three years in Idaho as a lender for Cleveland-based KeyBank, he had multiple job offers from local banks. "He took my offer, even though the other banks had offered more in starting salary," Jacobson said. "He saw the growth potential of NebraskaLand.".Joining NebraskaLand as a commercial lender in 2002, Lucas's gut instinct about the bank proved correct. The bank had $40 million in assets when he started; it expects to top $500 million in the next month. Now the senior loan officer of the bank, Lucas manages $90 million of those assets.."Ty Lucas has played a major role in our growth. In the time that he has been with bank, we have grown from the smallest in market share to the largest in market share. And, that's with 15 other banking organizations that operate in North Platte," Jacobson said. "I can think of no one more deserving of recognition than Ty. He is a superb lender and has allowed us to grow larger, faster."."In the end, I couldn't have done without the support and opportunity provided to me by others," said Lucas, who is a graduate of the Graduate School of Banking at Madison, Wis. "The support of my spouse and children through all the long hours over the last few years has been a big reason for my success."Other 2013 Rising Stars in Banking include:Chris Conrad, First Bank & Trust, Sioux Falls, S.D.Karen Brekke, Frandsen Bank & Trust, East Grand Forks, Minn.James Klein, Cedar Rapids Bank & Trust, Cedar Rapids, IowaKorey Schow, Bank of Keystone, Neb.Christie Obenauer, Union State Bank, Hazen, N.D.Jeff Gilbert, Frontenac Bank, St. Charles, Mo.Matthew Howrey, North Salem State Bank, North Salem, Ind.