First quarter earnings mixed for Southern Nevada banks


First-quarter earnings reported this week show varying results for a trio of Southern Nevada’s biggest regional banks.

City National Corp., parent of City National Bank, on Thursday posted first-quarter earnings of $54.5 million, up 6 percent from $51.5 million a year ago.

That amounts to earnings of 90 cents per share, which matches last year’s first- quarter earnings per share for the Los Angeles-based bank with nine branches in Nevada.

CEO Russell Goldsmith pointed to double-digit increases in loans, deposits and investment fee income, “as the company continued to invest in additional, people products and technology.”

“This year is off to a good start,” Goldsmith told analysts.

“I’m pleased that first-quarter net income grew six percent despite low interest rates and the run-off of covered assets. This growth underscores the fact that the fundamentals and momentum of our business remain positive.”

Shares of City National fell $1.26, or 1.65 percent, to close Thursday at $75.19 on the New York Stock Exchange.

Meanwhile, Bank of Nevada reported a gross loan balance of $1.72 billion, a drop of $31 million during the quarter, according to parent company Western Alliance Bancorp.

The 11 branches in Las Vegas, Henderson, North Las Vegas and Mesquite posted combined earnings of $14.8 million during the first quarter.

Western Alliance, which also operates banks in Arizona and California, reported income of $31.1 million, compared with $31.4 million for the fourth quarter of 2013 and $20.9 million for the first quarter of 2013.

Western Alliance CEO Robert Sarver told analysts that loans and deposits each grew more than $300 million in the first quarter this year.

“Our company is off to a strong start for 2014,” Sarver said. “Asset quality continued to improve with net loan recoveries and a reduction in nonperforming assets during the period.”

Shares of Western Alliance fell 62 cents, or 2.58 percent, to close Thursday at $23.39 on the New York Stock Exchange.

Earlier this week, Zions Bancorp, the parent company of Nevada State Bank, reported first-quarter earnings that fell about 8.6 percent in 2014.

 

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