Meadows Bank on Monday attributed its profitable 2013 to Nevada’s improving economy as the community bank benefits financially from its focus on Small Business Administration loans as well as other financial services.
The Las Vegas-based community bank posted net income of $3.1 million last year, compared with $2.79 million in 2012, an increase of 11 percent.
Also, the bank’s loan portfolio grew by $38.5 million while deposits increased by $108.2 million, according to the bank’s chief executive.
“We are pleased that we were able to grow the bottom line in 2013 despite having a full year of expenses related to two new branches opened in late 2012,” said Arvind Menon, president and CEO of Meadows Bank.
The bank opened branches in late 2012 in Reno and Henderson, joining the roster of branches in Las Vegas and Pahrump and loan production offices in Salt Lake City, Phoenix, Denver, San Antonio and Sacramento, Calif.
Menon said he was happy with the performance of both the Henderson and Reno branches. He said it usually takes about $15 million in deposits before a branch breaks even, with Henderson “well over that mark,” and Reno “is there.”
The bank, which was founded in March 2008, has been profitable since 2010. Meadows Bank has assets of $406 million, loans of $279 million and deposits of $349 million.
“While the economy continued to improve in 2013, small businesses and consumers remained cautious and demand for credit was muted,” Menon said. “We anticipate that the recovery will gain momentum in 2014 and drive demand for banking products and services as business expand and grow.”
Meadows Bank reported fourth-quarter earnings of $946,000,compared with $473,000 for the same period in 2012.
In November, Meadows Bank was named the largest SBA 7(a) lender in Nevada in fiscal year 2012-13 with $25.4 million in loans, according to the SBA. Nevada State Bank was second with $4.77 million in loans, the agency said.
Those loans are used to finance a variety of business uses, including long-term or short-term working capital, equipment purchases, construction or renovation of buildings, to refinance existing debt or to establish a new business or assist in an acquisition.
Meadows Bank also specializes in U.S. Agriculture Department Rural Development loans. These loans provide assistance to businesses through direct or guaranteed loans, grants or technical assistance.
Contact reporter Chris Sieroty at email@example.com or 702-477-3893. Follow @sierotyfeatures on Twitter.