Bank of Nevada’s parent company’s stock slips

By Sun Staff (contact)

Published Wednesday, May 13, 2009 | 8:38 a.m.

Updated Wednesday, May 13, 2009 | 1:43 p.m.

The stock of Western Alliance Bancorporation, parent of Bank of Nevada, fell 22 percent Wednesday after the company announced plans to bolster its balance sheet by selling $150 million of common stock to the public.

With extra shares outstanding, the value of existing shares could be diluted. The company's stock closed down $1.82 at $6.24. The decline came amid a broad stock market decline caused by weak retail sales numbers.

The Las Vegas-based company on Tuesday said it would use proceeds from the stock offering ``for general corporate purposes, including to increase liquidity and to provide for additional capital and growth.''

Western Alliance Bancorporation last month 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.

The quarterly results included 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.

Western Alliance 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.