Strong economy boosts LV bank profits

Wednesday, Feb. 28, 2001 | 11:16 a.m.

Southern Nevada's small and mid-sized banks closed out 2000 with a bang, with several companies reporting double-digit percentage increases in earnings for the quarter ending in December.

Salt Lake City-based Zions Bancorporation, parent company of Nevada State Bank, reported fourth-quarter earnings of $74.7 million, 85 cents a share, compared with $65.9 million, 76 cents a share, for the same quarter a year earlier.

Zions executives said the rebound was welcome news after the company's failed merger with First Security Bank.

"Despite the challenges with the failed merger with First Security, which was very trying on our employees and shareholders, by the end of the year, our stock price had recovered and our total return for 2000 exceeded that of the (Standard & Poors) 500 and several financial services industry indices," said Harris Simmons, president and chief executive officer of Zions.

The company reported outstanding loans and other assets at the end of 2000 at $22.1 billion, compared with $21.1 billion at the end of 1999.

Separately, Nevada State Bank, the third-largest commercial bank operating in Nevada, opened a Small Business Administration and Rural Development Lending Department at its McCarran Center office, 750 E. Warm Springs Road.

Zions also announced it is buying a 24.5 percent stake in Roth Capital Partners LLC, Newport Beach, Calif., for $16.5 million. Roth is an investment firm that specializes in high-tech stock offerings.

Several other banks, cashing in on the strong Las Vegas and Nevada economies, posted generally strong earnings:

Edward Jamison, president and chief executive officer of Community Bank, said a fourth branch that opened in Green Valley last year contributed to the company's growth.

In the company's fourth quarter, the bank reported net income of $614,000, 48 cents a share, compared with $499,000, 38 cents a share, for the fourth quarter of 1999.

Tod W. Little, chairman and chief executive officer of Silver State, said earnings for the year were up 63 percent to $2.2 million.

Separately, Silver State entered an alliance with Financial Independence Group, 8560 S. Eastern Ave. Suite 100, a local branch office of Linsco/Private Ledger Corp., San Diego. The alliance allows the bank to offer investment services to its customers.

Dennis Guldin, president and chief executive officer, said the bank reported net income of $278,000 for the quarter compared with $325,000 for the last three months of 1999. For the year, net income rose from $1 million in 1999 to $1.4 million in 2000.

Loans and other assets also increased for Nevada First, from $95.8 million at the end of 1999 to $137.6 million at the end of 2000.

The bank said annual earnings increased 11.9 percent to $1 million.

The bank's assets as of Dec. 31 were $177.1 million, compared with $127.9 million on Dec. 31, 1999.

"While we are very pleased with last year's performance, we recognize that there is still more room for improvement before this bank is performing at a level that is representative of the bank's full potential," Chief Executive John Guedry said.

Separately, the bank introduced a new Visa-branded debit and automated teller machine card and new technology to make records more accessible to customers.

The bank also began the rollout of new imaging technology that will digitize paper-based transactions and statement documents, including checks, deposit slips and monthly account statements, to make them more accessible to customers.

Jackie DeLaney, president and chief executive officer, said income rose from $113,500 in the fourth quarter of 1999 to $222,700 in the last three months of 2000. Profits for 2000 climbed to $850,300, and total assets were up 66 percent to $113 million over last year's total.