Las Vegas Sun

March 28, 2024

Bank of Nevada parent reports fall in profit

Western Alliance Bancorporation of Las Vegas, parent company of Bank of Nevada, today reported a first quarter loss of $86.5 million, or $2.33 per share vs. a profit in the year-ago quarter of $4.14 million or 14 cents per share.

Today's results include a provision for loan losses of $19.98 million, up from $8.06 million in the 2008 quarter, a securities impairment charge of $36.4 million and a noncash goodwill impairment charge of $45 million. Some of the charges relate to credit agency downgrades of stock in other banks held by Western Alliance.

Gross loans decreased slightly to $4.08 billion at March 31, from $4.10 billion on Dec. 31; and increased $353 million from $3.72 billion on March 31, 2008. Net interest income of $50.7 million was up from $46.9 million.

"Although obscured by non-cash charges for goodwill and securities impairment, during the quarter we made progress on our most urgent priority, returning to profitability," said Robert Sarver, chairman and chief executive of Western Alliance. "Our record deposit growth and continued interest margin expansion improved our operating performance and strengthened our earning power to address the most challenging real estate market in memory. The write down of Bank of America preferred stock, driven by rating agency downgrades, and goodwill charge resulting from lower valuations of financial institutions, have no effect on our cash flow. Bank of America has never suspended dividend service on our preferred stock and remains adamant about its ability to continue to pay its obligations. The value of this stock is up 25 percent since March 31. Despite higher credit costs, our capital levels remain strong and well in excess of the 'well capitalized' ratios promulgated by banking regulators. While our non-performing assets increased significantly during the quarter, we do see signs of a deceleration in the rate of contraction in our market areas, similar to other reports regarding economic conditions nationally. We remain keenly focused on proactively addressing credit issues.''

Western Alliance Bancorporation is the parent company of Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates, Shine Investment Advisory Services, Premier Trust and PartnersFirst.

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