Bank of Nevada posts third-quarter net income of $16.3 million
Bank of Nevada, a subsidiary of Western Alliance Bancorp., on Thursday reported third-quarter net income of $16.3 million, compared with $12.7 million in the second quarter and $5.8 million in the same period last year.
The Las Vegas-based bank reported loans decreased by $29 million in the third quarter but year-over-year are up $326 million to $2.39 billion.
“The decline in third-quarter loans came primarily from a decrease in commercial leases, construction and land development and residential real estate loans,” Western Alliance said in its earnings report.
Deposits decreased by $6 million in the third quarter and increased $205 million over the past twelve months to $2.61 billion.
Bank of Nevada has $3 billion in assets and 12 offices in Las Vegas, Henderson, North Las Vegas and Mesquite. The business bank, along with Western Alliance Bank, the Torrey Pines Bank and an equipment financing company, is operated by Phoenix-based Western Alliance.
Western Alliance Bank does business in Reno as First Independent Bank.
Western Alliance reported net income of $28.2 million, or 32 cents, compared with $15.5 million, or 18 cents a share, in the third quarter of 2012.
“As our performance has improved, we’re also resolved to maintain a strong risk discipline,” CEO Robert Sarver said. “Pending regulatory approval, we … anticipate integrating our three subsidiary banks into one charter at the end of the year, which will enable us to further enhance our risk management architecture.”
Sarver said key drivers of the company’s improvement include sustained organic balance sheet growth, prudent expense management and reduced legacy asset costs against the backdrop of improved economic conditions.
Total loans increased $104 million to $6.52 billion, from $6.41 billion in the second quarter, and $1.18 billion from the third quarter of 2012.
The increase over the past year was primarily driven by the acquisitions of Western Liberty Bancorp in Las Vegas and Centennial Bank in Fountain Valley, Calif., and organic growth in commercial and industrial, commercial real estate, and construction and land development loans.
Deposits increased $274 million to $7.28 billion, while year-over-year deposits jumped $1.11 billion. Revenue was $90.4 million for the third quarter, up from $87.2 million for the second quarter and a 17 percent increase from $77.3 million in the same period last year.
“Net interest income increased 17 percent from a year ago, while expense growth was held to 10 percent,” Sarver said. “Our asset quality improvement has been notable as net loan losses swung from a $9 million charge in the third quarter of 2012 to net recoveries of $1.5 million this quarter.”
Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893. Follow @sierotyfeatures on Twitter.
