Parkway Bank Reports Profit, Re-opens Monticello Branch

by Arkansas Business Staff  on Monday, Apr. 8, 2013 12:00 am  

Things are looking up for Parkway Bank.

The bank — originally Portland Bank in Ashley County — lost money pretty consistently after moving to Rogers and changing its name in 2004. Yes, there was net income of $190,000 in 2005, but Parkway then had four straight years of red ink that eventually totaled more than $9 million.

And that’s a lot of money for a bank whose average equity has never been much above $15 million.

In 2009, Parkway was on a national list of banks with the highest ratios of problem loans.

The payroll that topped out at almost 80 full-time equivalents back in 2006 was gradually cut to its current level of about 35, and assets that exceeded $170 million in 2007 dropped by a third and stayed there.

But that was then.

Parkway has clawed its way back to profitability with net incomes of $326,000 in 2010, $526,000 in 2011 and $1.26 million in 2012.

And last week, the bank got approval from state regulators to undo one of the money-saving moves it made during the bad times.

It will be reopening a branch on Highway 425 North in Monticello that was closed about three years ago, CEO Bob Taylor told Whispers.

Parkway has continued to use the branch for administrative functions and has maintained an ATM there.

However, in a month or so, it will reopen as a drive-in facility. And that will require creating a couple of jobs, Taylor said.

It’s easy to think of Parkway as one of those northwest Arkansas banks — the single Rogers office is the headquarters.

But three-quarters of its $90 million in deposits continue to be housed in its three southeast Arkansas branches. Those locations are in Ashley County (Portland and Crossett) and in Drew County (Monticello).

 

 

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