SVP, Director of Operations and Compliance
Overseeing compliance at a bank can be difficult in the best of circumstances. Doing it for an institution headquartered in Sin City can make the task downright daunting.
But Hilary Nelson, director of operations and compliance at Lexicon Bank, takes it all in stride.
"I was born and raised here so it's just normal for me," she said.
Nelson, who started in banking as a teller in high school, oversees compliance, Community Reinvestment Act, Bank Secrecy Act and anti-money-laundering operations, and federal and state examinations and audits for the bank. Operating in Las Vegas draws additional scrutiny from regulators because more of its economy is cash-based compared with other places. Las Vegas is also considered higher risk because of the potential for human trafficking and drugs.
"When it comes to BSA and AML, you have to be on top of it," she said. "You have to have the appropriate systems then on top of that, you are monitoring. Not everything is bad, though, so we make sure we have a good understanding of our customers, and we have to be comfortable with any behavior too."
"You learn what looks normal for a normal person and what doesn't," Nelson added. "If it sticks out, we have to dig down deeper. If something doesn't make sense, you have to reach out and ask questions."
Still, Lexicon Bank has some fun activities due to it being located in one of the few places in the U.S. where gambling is embraced and an integral part of the local economy. The bank has served as the onsite sponsor for the World Series of Poker for the last few years. Lexicon's chairman, Russell Rosenblum, plays the game himself, and Nelson said it's been a good way to recruit customers for its business line that serves professional poker players.
"We signed two clients this year that have won bracelets, which is a big thing," Nelson said, referring to a coveted non-monetary prize that players can win during the tournament.
Nelson said her biggest challenge this year has been keeping up with Lexicon's growth. The bank received its charter in August 2019 and has grown to $268 million of assets as of the first quarter. She has needed to ensure that the bank's policies and procedures have remained relevant.
"We have the policies in place for our size and not just our age," Nelson said. "It's become more formal."
Nelson said her biggest success has been helping to lead the institution through its de novo period. The bank managed to become profitable after just six quarters, when it usually takes a typical de novo nine. Originally, Lexicon was undergoing annual exams by regulators with periodic check-ins but now that the bank is more than three years old, it will be on an 18-month exam cycle. Nelson is excited to have the extra breathing room.
Overall, Nelson said she gets a sense of satisfaction working at Lexicon by looking at "what we have accomplished, and the number of clients we have served and kept in business during the pandemic."
