Community bankers praise fourth-quarter profit

When local bankers celebrated New Year's Eve, some could only be glad that 2010 was over, but others took pride that they ended the year in the black instead of the red.

In recession-racked Southern Nevada, community bankers applaud even a small fourth-quarter profit, because many of their peers suffered stinging losses, data compiled by analysis firm SNL Financial show.

Meadows Bank earned $1.3 million in the fourth quarter, up from a profit of $145,000 in the third quarter. Service1st rebounded from a $1.4 million third-quarter loss to make a $143,000 profit in the fourth quarter. Bank of George reported $80,000 in net income in the fourth quarter versus a $1.1 million loss in the third.

The other 11 community banks in Southern Nevada weren't cheering when they closed their books last year.

Some are struggling with large amounts of nonperforming assets, including nonperforming loans and foreclosed real estate.

First Security led this group with 34.5 percent, or more than one-third of its assets, in the nonperforming category. First Security could take some comfort in knowing its risk-based capital, a measure of net worth or equity, represented 16.8 percent of assets.

Nevada Commerce Bank reported that 29.8 percent of its assets were nonperforming and showed a paper-thin risk-based capital ratio at 4.5 percent of total assets.

Bank of North Las Vegas ranked third, with nonperforming assets accounting for 26 percent of its assets. Its risk-based capital ratio registered at 12.2 percent.

Bank of Las Vegas, third largest in assets among Southern Nevada-based banks, reported 24.6 percent of its assets were nonperforming. It has a slim capital base equal to 4.3 percent of total assets.

1st Commerce Bank, which lawyer and businessman Jason Awad agreed to buy and recapitalize, has 5.2 percent in risk-based assets. Nonperforming loans were 16 percent of total assets.

Of the 14 banks, only three increased total loans and leases outstanding at the end of the quarter. Town & Country boosted its total loans and leases by 6 percent, and Meadows raised its total loans and leases by 5 percent. First Security Bank's loans and leases grew by less than 1 percent.

The Federal Deposit Insurance Corp. insures up to $250,000 per account at banks. Noninterest-bearing accounts have unlimited FDIC coverage.

Contact reporter John G. Edwards at jedwards@reviewjournal.com or 702-383-0420.