Banks’ quarterly results strong

Tuesday, July 20, 2004 | 10:43 a.m.

SUN STAFF AND WIRE REPORTS

Several banks with a significant local presence continue to post strong earnings.

U.S. Bancorp, the sixth-largest U.S. bank by assets, today said second-quarter profit rose 13 percent, boosted by fees from consumer banking and fewer provisions for bad loans.

Net income climbed to $1.04 billion, or 54 cents a share, from $919.9 million, or 48 cents, a year earlier, the Minneapolis-based bank said today. Revenue dropped 7.7 percent to $3.02 billion.

U.S. Bancorp Chief Executive Jerry Grundhofer has focused on consumer banking growth after spinning off the Piper Jaffray Cos. securities unit in December. U.S. Bancorp joins rivals including Wachovia Corp. and Fifth Third Bancorp that have benefited from an increase in revenue from consumer credit cards and loans.

"Across the industry, a lot of institutions have been dependent on consumer lending over the past 12 months," said Ross Demmerle, an analyst at Hilliard Lyons Inc. The bank has 2,275 branches in 24 states, the fifth-largest network in the U.S., and expects to have about 2,400 by the end of the year.

In the Las Vegas Valley, U.S. Bank has 33 branches and 247 employees.

U.S. Bancorp's profit rose for the 10th straight quarter year-on-year, and topped the 53-cent-a-share average estimate of 26 analysts polled by Thomson Financial.

Profit from consumer banking rose 18 percent to $394.5 million in the quarter, while investment banking earnings climbed 26 percent to $265.7 million. Wealth management profit rose 12 percent to $109 million, and earnings from electronic-payment services climbed 23 percent to $176.8 million.

Also, Henderson-based Silver State Bancorp reported second-quarter net income of $1.7 million, or 28 cents per share, up from $898,000, or 17 cents per share, reported in the same 2003 quarter.

Silver State, which has nine Southern Nevada Silver State Bank branches, said its total assets reached $599 million at the end of the second quarter. That's up from $430 million a year ago.

In addition to opening its ninth branch in the second quarter, the company also opened a fourth loan production office in Phoenix.

Also, Colonial BancGroup Inc. announced second-quarter net income of $43.3 million or 33 cents share, up from the $37.7 million, or 30 cents per share, from the same 2003 period.

The Alabama-based company operates seven Las Vegas-area Colonial Bank branches. Nationwide the company has $17.6 billion in assets and 297 branches in five states.

Colonial BancGroup Chief Executive Robert E. Lowder credited the company's nonperforming assets ratio of 0.38 percent and the acquisition of P.C.B. Bancorp of Florida with bolstering the quarterly results.

Las Vegas-based Bank of Nevada reported second-quarter earnings of $1.3 million, or $1.53 per share. That's an improvement from the $605,000, or 73 cents per share, reported a year ago.

The bank, which has two branches in the Las Vegas Valley and one in Mesquite, said total assets reached $209 million, up from $164 million a year ago.

Bank of Nevada also said it is planning a fourth branch for North Las Vegas.

Also, Business Bank Corp., which operates three Business Bank of Nevada branches in the Las Vegas area and two in Northern Nevada, reported second-quarter net income of $710,011, or 38 cents per share. That's up from $676,648, or 37 cents per share, for the same 2003 quarter.

Assets for Business Bank were $309 million at quarter's end, up from $246 million a year ago.

And Oakland, Calif.-based Golden West Financial Corp., which operates two World Savings Bank branches in the Las Vegas area, reported second-quarter net income of $316.7 million, or $2.04 a share. That's up from from $272.5 million, or $1.76 a share, a year earlier.