Bank of Nevada owner reports loss, 3 branches to close

Published Monday, Oct. 26, 2009 | 8:21 a.m.

Updated Monday, Oct. 26, 2009 | 10:55 a.m.

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Western Alliance Bancorporation, owner of Bank of Nevada, today reported a third-quarter loss as the recession drove more loans into delinquency.

The Las Vegas-based bank holding company also said it's closing four of its 41 offices in order to cut costs. Three will be Bank of Nevada branches and one will be an Alliance Bank of Arizona branch. The Bank of Nevada branches to close by the end of next month are in the Las Vegas area at Boca Park at 950 S. Rampart Blvd.; 8275 W. Flamingo Road and 8745 W. Warm Springs Road.

Western Alliance said that for the quarter ended Sept. 30 it lost $23.9 million or 37 cents per share, an improvement from the $94.7 million or $2.84 lost in the year-ago quarter.

Net interest income of $48.9 million was down from $49.8 million in the year-earlier quarter, while the provision for loan losses of $50.8 million in the 2009 quarter was up from $14.7 million one year ago.

Loans and other assets of $5.831 billion at Sept. 30 were up from $5.229 billion in the year-ago quarter.

Besides Bank of Nevada, Western Alliance owns banks in California and Arizona.

Despite the losses, Western Alliance says it remains in solid financial shape with capital of $669 million and a strong ratio of capital to assets.

"We continue to see the impact of the recession in our particularly hard hit markets on our performance. While non-performing assets continue to rise due to falling collateral values, we have increased our (loan-loss) reserve build by $20 million, are consolidating bank branches where appropriate, and begun to execute strategic cost reduction programs. We are in process of merging four of our 41 offices into nearby facilities, as well as centralizing other operations. These efficiency improvements should be visible in the first quarter of 2010,'' Chairman and Chief Executive Robert Sarver said in a statement. "These actions, coupled with the franchise value we are creating from our continued exceptional growth in deposits, which are up over $1 billion year to date, should better position the company for strong performance once economic conditions improve."

CORRECTION: This story has been changed to correct that bank branches will be closed by the end of next month, instead of this month. | (October 26, 2009)

Discussion: 15 comments so far…

By neiman1

10/26/09 at 9:08 a.m.

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Must be all those "green shoots" in the economy we have been hearing about. Closures and more layoffs are so common they aren't even news in Reid's Nevada. Thanks for all the great economic planning harry. Now if you just pass your government health care and your "cap and tax" we can follow Europe into the abyss.
By rejco100

10/26/09 at 9:55 a.m.

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It's all collapsing right before out eyes!
By dt0702

10/26/09 at 10:32 a.m.

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Waite a minute !! is this the same Bank on Sahara that employs the teller who won't change a $20 bill after watching me use your ATM in front of your VERY eyes and PAYING YOUR $3.25 in FEES, while no other customers in the lobby at the time ?? AND NOW YOUR OUT OF A JOB !! HA HA HA HA , THIS MADE MY DAY, KARMA BABY !
By tbvegas

10/26/09 at 11 a.m.

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I thought everything was getting better, that is what the news says, lol
By mred

10/26/09 at 12:13 p.m.

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I thought they had an ad saying they were strong? is this part of Zion's Bank corp???

(If so we can Mormon Bash, then the Mormons can think there victims of bigotry and be included in the next hate crime bill)
By wizardofOz

10/26/09 at 12:21 p.m.

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"..."We continue to see the impact of the recession in our particularly hard hit markets on our performance. While non-performing assets continue to rise due to falling collateral values, we have increased our (loan-loss) reserve build by $20 million, are consolidating bank branches where appropriate, and begun to execute strategic cost reduction programs. We are in process of merging four of our 41 offices into nearby facilities, as well as centralizing other operations. These efficiency improvements should be visible in the first quarter of 2010,''..."

"..."These actions, coupled with the franchise value we are creating from our continued exceptional growth in deposits, which are up over $1 billion year to date, should better position the company for strong performance once economic conditions improve."..."

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HERE'S THE SAME MUMBO-JUMBO IN KITCHEN TABLE LANGUAGE:

We're losing money. Lots of it. People aren't making their loan payments, at all. And it keeps getting worse for us because the junk we put on our books is losing big money, too. We're trying to sock away cash by closing down one out of every ten locations, firing employees, and making everyone else who is left over pick up the slack.

And because our customers are socking away cash, too, we're hoping our cut and run actions earn us some kind of profit, and the prestige that we don't have now, maybe by next year, but all we can really do is hope we're still around and prepare for the worst.

--

See how easy this is once you can see through the B.S. artistry of a financial services and banking employee.
By lcdrmandingonamvet

10/26/09 at 1:21 p.m.

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GOP! They rob banks, don't they? My bad! I thought this was another bank that had been robbed by Neil Bush. When he robbed Denver's Silverado bank of more than $1 billion, it collapsed too. Call Colorado State Attorney General John Suthers (GOP). 303.866.4500, attorney.general@state.co.us. Calling all national angry Black "tea-baggers"!
By Harley

10/26/09 at 1:55 p.m.

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Couldn't happen to a more deserving bunch of criminals, appreciate the welcomed news.

: )
By info4you2see

10/26/09 at 3:09 p.m.

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More vacant buildings......
By stevem

10/26/09 at 11:33 p.m.

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thanks, liberals.
By Bluntfacts

10/26/09 at 11:46 p.m.

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mred

WAL is not part of Zions. WAL can easily be researched: the stock is around $5 a share.

But since you mentioned the Mormons, I think the local Credit Union that was seized 10/23 catered to the LDS folks. Must have been God's will (or that pesky alien interference).
By environprotector

10/27/09 at 6:57 a.m.

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The banking industry is experiencing a hard lesson right now. That is that they participated along with the irresponsible members of the private sector by lending to those who had no proof of income, or ability to pay back these loans. They participated in the crime of the corrupt mortgage lenders in the real estate blowout, which I refer to as the crime of the century which was sanctioned by government by their supreme lack of oversight, then with the fleecing of us the taxpayers dollars back into these same banks who now will not use the money as it was intended and given to them for, that is to lend it out to small businesses and try to protect jobs.. We are the victims and supreme suckers..
By anthemccresident

10/27/09 at 7:24 a.m.

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This is what you get for letting the "hallowed" Selma Bartlett et al run the ship for too long. For those who may not know, Bank of Nevada used to be BankWest, a bank that caters to doctors and lawyers with the much "revered" Selma Bartlett as one of their top executives. Heck, she even has an elementary school named after her.

How does it look now, Selma, handing out money left and right to doctors and lawyers who you clamored over, who, as a group, are the worst at managing their money.

Thanks for personally turning down my commercial loan 5 years ago! I'm very happy to have not made my now 60 ontime payments to your bank...

I will have a glass of champagne when the FDIC comes and shuts this bank down.
By 7pesos

10/29/09 at 3:52 p.m.

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what the u.s. needs is more republican

deregulation.

we can trust wall street and the corporations

to do the right thing for america.

ha,ha,ha.

and how about those right wing christian

evangelist that put bush in the white house?

we can trust them too.

ha,ha,ha.
By cdayton

11/8/09 at 6:05 p.m.

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I know I'm late writing a comment about this horrible article but I needed my anger to subside.

I truly hope this Bank doesn't go under. Think of all the employees that will have NO JOB and the few jobs that are out there that all of them will be fighting for. Bank of Nevada recruited my husband and gave him an offer he couldn't refuse 18 months ago, whose financials were stable at the time. He was one of the layoff's and now I have to think about how to put food on the table for my children. As much as I hate everything about that Bank, think of it's employees who depend on that job and money to support the family. I couldn't imagine anyone going through what we are.

You can blame the "higher-ups" all you want. But there are more of the scrubs than "higher-ups" that need the $$$$.

I pray for them all!!