The Hollywood-based bank that gave Frank Sinatra the ransom money to get back his kidnapped son made a strong move into Nashville this summer.
And in doing so, entertainment bankers City National caused a huge stir by hiring top staffers from competing SunTrust bank, which has Nashville’s biggest Music Row operation.
“I feel so bad for my friend, (SunTrust Music Row chief) Andrew Kintz,” says Fifth Third Music Row banker Will Byrd.
“I don’t even drink, but I took him out for drinks.”
Oddly, there doesn’t seem to be any lingering animosity among Nashville bankers with special music industry operations.
And that guy from SunTrust who had seven staffers poached by City National? Kintz says he feels nothing but gratitude for the SunTrust bankers who went over to City National.
“I came into this situation new to the music industry [two years ago],” Kintz says. “They helped me so much when I arrived here.
“They chose to take a new step in their career. I’m for them doing that. I do think there’s enough business for all of us.
“You can only live life gratefully,” he adds. “All I can see is the amount I received is so great; all you can do is cheer for somebody who helped you along the way.”
Gracious words for a guy who lost a big chunk of his industry-leading staff to a new competitor. But ask around Music Row and most folks find a surprising friendliness among the five or so banks that cater to Nashville’s highest-profile clientele.
Those bankers subscribe to the rising-tide-lifts-all-boats aphorism.
“I truly believes what is good for someone else in the music business – even my competitor – is good for the music industry overall,” Kintz says. “It’s not the same in L.A. or NY.
Simply put, says Regions Bank’s Lisa Harless, who has worked with Music Row for more than 20 years, “We are very friendly competitors.”
But, she adds, “We are competitors.”
To that end, City National recruited veteran SunTrust Music Row bankers Lori Badgett, Diane Pearson and Mandy Gallagher and others. The feeling is that, like in politics, all relationship banking is local.
“If you send Beverly Hills bankers to Tennessee, that would never work,” Badgett says.
City National also threw in some toys and perks to attract Music Row customers from other banks. There are no ATM fees anywhere for City National cards, for example. There will only be one physical location – Music Row – for City National, so the bank is providing couriers to pick up deposits from customers.
City National customers also can get scanner machines at their homes or offices to deposit checks, which will be processed by the next morning.
SunTrust, even with its defections, remains far and away the biggest Music Row operation, the competition concedes.
“I think there will always be small differences in product offering. But it’s totally a relationship business,” Kintz says.
“It’s about looking people in the eye and trusting one another. At the end of the day, that’s the most important thing: trust and affinity. Products are secondary.”
To that end, SunTrust replaced staff with some folks straight from Music Row. ASCAP membership director Earle Simmons and singer-songwriter Bryan Bolton are now SunTrust bankers, hired after several Music Row insiders suggested them to Kintz.
Fifth Third bank reached out to longtime Music Row events and TV producer Will Byrd for its Music Row operations.
“Well, I’ve never been a banker,” Byrd says, recalling his first reaction to becoming a banker. “I can’t remember the last time I’ve been in a bank.”
But he brings in business because of his relationships and the trust he has developed with Music Row types over two decades.
“The biggest adjustment?” Byrd says, laughing. “I’ve never mentally prepared myself for having a weekend off.”
The reason banks have special Music Row branches is, of course, the potential that an artist or record label president hits big, which literally could mean millions of dollars of business for those banks. So when a talented aspiring songwriter with bad credit needs some rent money, he or she might find Music Row bankers to be more cooperative than others.
And it’s sexy to say that Alan Jackson is one of your clients – even though confidentiality regulations prevent banks from naming names.
And while Music Row bankers might be a little more creative than usual with lending money, there are limits.
“Yes, there’s a sizzle factor with having an entertainment division,” Harless says, “but as we all know, it all comes down to: Do the numbers work?”
Adds Badgett: “We’re not leading with crazy credit deals, we’re leading with relationships. Sometimes no is the best answer.”