Two of the largest regional banks in Southern Nevada posted quarterly profits Thursday, as both companies attributed their double-digit growth to increased demand for new loans, sound credit quality and success in keeping expenses in check.
City National Corp. and Western Alliance Bancorp posted earnings that surpassed analyst expectations.
“Net income, earnings per share, revenue, loans and deposits all continued to grow at double-digit rates, and for the first time assets exceeded $26 billion,” said Russell Goldsmith, president and CEO of City National, parent company of City National Bank.
City National reported third-quarter net income of $59.8 million, or $1.10 per share, a 44 percent increase from the $41.4 million, or 77 cents per share for the same period last year.
Analysts surveyed by Yahoo Finance expected earnings of 92 cents a share.
Western Alliance, parent of Las Vegas-based Bank of Nevada, reported net income of $15.5 million, or 18 cents per share, an 18.8 percent increase from the $13 million, or 4 cents per share, in the third quarter of 2011.
Analysts expected the Phoenix-based bank holding company to post earnings of 17 cents a share.
Revenue for the third quarter fell just short of expectations at $77.3 million. Analysts expected $78.6 million .
“We held our expenses in check and our credit costs fell, propelling a substantial rise in earnings per share,” said Robert Sarver, chairman and CEO of Western Alliance.
Western Alliance on Wednesday completed its $55 million acquisition of Las Vegas-based Western Liberty Bancorp, parent of Service1st Bank of Nevada. Sarver said he expects to merge Service1st with Bank of Nevada at the end of the month, with complete “systems integration” in December.
Bank of Nevada reported that loans increased by $59 million to $2.06 billion, while deposits decreased by $22 million to $2.41 billion. The bank reported net income of $5.8 million, compared with $1.7 million for the same period last year .
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893.