Business realty loans boost Northern Nevada Bank net
Much of the fuel for the strong earnings growth at Northern Nevada Bank comes from the strong desire of small business owners to buy instead of rent space.
The bank last week reported that it earned $174,000 in the first quarter, an increase of 332 percent over the same period a year ago.
Total assets grew to $66.1 million on March 31, a 45 percent increase from the $45.7 million a year earlier.
Net loans the biggest piece of the bank’s assets grew by 50 percent in the past year and stood at $51.8 million at the end of the quarter.
Chief Executive Robert Hemsath said much of the loan demand continues to come from business owners particularly professionals who want to buy their own buildings.
That activity has been spurred by continued low interest rates, which mean business owners can build equity in buildings they own without dramatically increasing the amount they pay for space each month.
Demand for residential construction loans is another a bright spot, Hemsath said.
“The housing front is very, very strong right now,” he said.
He said Northern Nevada Bank hasn’t seen any weakening in the quality of its loans despite fast growth of the portfolio.
“The quality of the borrowers has just been outstanding,” Hemsath said.
“Northern Nevada seems to be doing very well.” Deposits at Northern Nevada Bank during the first quarter grew 47 percent just a hair more slowly than total assets and stood at $57.6 million on March 31.
The Reno-based bank is owned by local shareholders.
“We are huge fans of doing business in Northern Nevada. We love the location. We love the potential for employees. And, frankly, we love how easy it is to work with the business community,” says Havelock Wool CEO Andrew Legge.