Banking on It - October 2005

Silver State Bank

Small Business Lender Poised for More Growth

by Mae Flennoy

Silver State Bank has made a name for itself by helping the small business community and has flourished in Southern Nevada’s booming economy, with more growth still on the horizon.

Led by two banking professionals, Chief Executive Officer Tod Little and President Corey Johnson, the bank opened in 1996 with $5 million in assets. Now, the bank boasts assets of around $730 million, Johnson said. Little and Johnson worked together in Utah for WestOne Bank, before it merged with U.S. Bank.

Silver State Bank began with one branch in Henderson and five employees. Its headquarters in Green Valley houses a bank branch, administrative offices and loan processing department. The bank now has 150 employees and will have 11 branches in Southern Nevada by next year. Due to the success of its small business loan program, the bank decided to expand beyond Southern Nevada. It also has loan processing centers in Reno, Phoenix, Salt Lake City, Denver and Portland, Ore.

"Our major motivation to start the bank came when we noticed there were no community banks in Henderson," Little said. "When we initially investigated the market we perceived this to be a tremendous opportunity. I think we opened at the right time in a market that was underserved. Subsequent to that, we have enjoyed a nine-year run in the best economy in the nation."

Another reason for Silver State’s success is its niche marketing. The majority of its revenue comes from providing small business loans. Silver State Bank has been the leader in Small Business Administration (SBA) loans for Southern Nevada for the last several years, Johnson said. The bank’s small business loans range from a $500,000 to $20 million.

"We understand the SBA program," Johnson said. "We can foresee changes in the government programs and understand what’s going on. We can do the smaller deals that large banks like Bank of America and Wells Fargo can’t do."

Silver State Bank is a member of the SBA’s Preferred Lender Program, developed for the most active SBA lenders. The Preferred Lender Program allows banks like Silver State to make the credit decision on most requests, subject only to a brief eligibility review by the SBA. This in turn allows banks to respond quickly to loan applications.

Silver State Bank also provides other major services including home loans, construction loans and personal banking. A large percentage of its loans go to builders creating new communities locally. It also has directed its efforts towards advancing women business owners by establishing the Silver State Bank Women’s Business Group. The bank has allocated $20 million for women-owned businesses and has several programs tailored to women business owners.

Both Little and Johnson predict a long and prosperous life for Silver State in Nevada and want to continue focusing on community and small business needs. "Our growth has been phenomenal. We are very successful because of Las Vegas’ economy," Johnson said. "Las Vegas is a very good marketplace. Other banks in the nation don’t have the opportunities for growth like Silver State. We’re committed to Clark County."

Little doesn’t discount the success of Silver State, but said most banks in Southern Nevada have reaped the rewards of the state’s strong economy and that banks help nourish that economy. He does, however, believe Silver State, because of its small size, provides more personalized service, which is attractive to customers.

"Banks are extremely important to the community," Little said. "We provide money for homes, for businesses, for new projects that generate all kinds of things like jobs and income for many people. Banks are the economic engine that makes this a great place to live."