Bank of Nevada owner says loss narrowed in fourth quarter

By Steve Green

Wednesday, Jan. 26, 2011 | 4:04 p.m.

Regional bank operator Western Alliance Bancorporation, owner of Bank of Nevada, today said its fourth quarter loss narrowed as loan losses declined.

After preferred stock dividends, the company lost $13.3 million or 17 cents per share vs. the $29.4 million or 41 cents lost in the year-ago quarter.

Net loan charge-offs of $15.9 million were down from $24.8 million for the third quarter and $36.4 million in fourth quarter of 2009.

Nonperforming assets -- bad loans and repossessed assets -- equaled 3.6 percent of total assets, compared to 3.9 percent in the third quarter and 4.1 percent in the fourth quarter of 2009.

"2010 culminated with Western Alliance well along the road to recovery from the global recession," Robert Sarver, chairman and CEO, said in a statement. "We had record net interest income ($60.9 million), expanded our interest margin and improved our operating efficiency. Each of the leading indicators of future non-performing assets of delinquent, watch and classified loans declined every quarter last year, which resulted in our credit loss provision dropping by more than one third from 2009. As additions to impaired assets have slowed and property valuations stabilize, we expect more modest charges in the future than the losses on repossessed real estate we have recently incurred."

Total loans increased $67 million to $4.24 billion as of Dec. 31 -- including $1.91 billion at Bank of Nevada, the company said.

Late last year the parent company's headquarters and a few jobs moved from Las Vegas to Phoenix, where Sarver owns the Phoenix Suns.

Besides Bank of Nevada in the Las Vegas area and Mesquite, the company has Alliance Bank of Arizona, First Independent Bank in Northern Nevada and Torrey Pines Bank in California.