Bank of Nevada owner posts profit of $2 million

By Steve Green (contact)

Thursday, Oct. 21, 2010 | 4:33 p.m.

Las Vegas-based bank operator Western Alliance Bancorporation today posted a third-quarter profit of $2 million as interest income from loans grew and delinquencies declined.

The profit was an improvement from the year-ago quarter, when the company -- owner of Bank of Nevada -- took special charges and lost $23.9 million.

After payment of preferred dividends, Western Alliance lost $457,000 or 1 cent per share in the most recent quarter vs. the 2009 third quarter when it lost $26.4 million or 37 cents per share.

Interest income from loans totaled $64.3 million in the 2010 quarter, up from $61.4 million.

Loans outstanding increased by $44 million from June 30 to $4.17 billion at Sept. 30.

Nonaccrual or bad loans and repossessed assets were $241 million or 3.9 percent of total assets at Sept. 30, compared with 4 percent in the second quarter and 4.1 percent in 2009's third quarter.

"The third quarter of 2010 was our fifth consecutive quarter of improvement in our earnings power as shown by our pre-tax, pre-provision income of $24.6 million. Loan and deposit growth remained strong compared to peers and our interest margin expanded while operating expenses were held flat," Robert Sarver, chairman and CEO, said in a statement.

Competitor Zions Bancorporation of Salt Lake City, owner of Nevada State Bank, earlier in the week said its quarterly loss narrowed as business begins to recover from the recession.

After payment of preferred dividends, Zions lost $80.5 million or 47 cents per share vs. a loss of $181.9 million or $1.43 per share in 2009's third quarter.

"Asset quality metrics improved across all major fronts and we generally expect continued improvement into the fourth quarter and beyond," said Zions Chairman and CEO Harris Simmons.