Silver State completes $26 million IPO
Silver State Bancorp of Henderson completed a $26.3 million initial public offering of stock Monday, giving it additional capital needed for growth.
The holding company for Silver State Bank sold 1.5 million shares at $20 a share and started trading under the symbol SSBX on the Nasdaq Global Market. Shares in Silver State previously traded over the counter.
If the underwriters purchase an additional 225,000 shares as allowed, Silver State will receive net proceeds of $30.5 million. Otherwise, net proceeds will total $26.3 million.
The $1.5 billion asset bank holding company intends to use the proceeds to repay a $20 million, revolving-term loan. Also, it may use the proceeds to form new banks, acquire banks, add branches or develop products and services.
The bank holding company originally planned to raise as much as $90 million in capital. But the timing of the offering was bad. Shares in regional banks have slumped this year, and investors are becoming increasingly worried about potential problem loans in the residential real estate market.
Shares in Silver State dropped 5.85 percent or $1.20 to close at $19.30.
Sandler O’Neill & Partners was the lead underwriter.
Tentative pact seen as averting strike
Shoppers and workers on Wednesday welcomed a tentative contract deal that could keep major supermarkets open and avert a replay of a lengthy 2004 strike and lockout that sent consumers scurrying to find groceries.
Workers in Southern California were expected to ratify the tentative four-year agreement that would increase wages and benefits for workers at Supervalu’s Albertsons, Kroger Co.’s Ralphs and Safeway’s Vons and Pavilions.
“I want to work. Nobody likes to go out” on strike, said John Baatz, a produce manager at a Ralphs store in the Venice area of Los Angeles. “The last time was no fun.”
Details of the deal announced late Tuesday between the United Food and Commercial Workers and the grocers were not disclosed.
Bancorp reports net income decreased
Western Alliance Bancorporation, the holding company for Bank of Nevada, reported net income decreased 30 percent to $7.9 million as it recorded loan losses, absorbed acquisition costs and marked down the value of securities it holds.
The company earned $7.9 million or 25 cents a share, down from $11.4 million or 38 cents a year ago.
The bank set aside $2 million for loan losses, compared to $400,000 a year ago. The increase resulted from $2.2 million in loan losses at an unidentified bank it acquired last year.
The bank holding company took a $500,000 after-tax charge for consolidation and termination of a lease in Reno. Its Bank of Nevada affiliated moved into the Reno headquarters of First Independent Bank.
Western Alliance also marked down securities it holds to their market value.
The $4.7 billion asset company operates banks in Arizona, California and Nevada.
Shares in Western Alliance declined 1.7 percent or 44 cents to $26.14 on the New York Stock Exchange.
EBay reports profit jumped 50 percent
EBay reported Wednesday that second-quarter profit surged 50 percent, easily beating Wall Street expectations.
But analysts remained concerned about the declining number of items for sale on the site. EBay shares fell 26 cents in extended trading after losing 20 cents to $34.05 in Wednesday’s regular trading session.
The San Jose-based company earned $375.8 million, or 27 cents per share, compared with $249.9 million, or 17 cents per share, in the second quarter of 2006.
Revenue for the period ended June 30 was $1.83 billion, up 30 percent from $1.41 billion in the year-ago quarter.
Not including $79.6 million in stock-based compensation expenses and other one-time charges, eBay earned $471.1 million, or 34 cents per share, up 34 percent from a year ago.
On that basis, which does not comply with generally accepted accounting principles, analysts polled by Thomson Financial expected eBay to earn $447.18 million, or 32 cents per share, on revenue of $1.78 billion.
Macy’s stock price leaps on takeover talk
Macy’s stock price surged Tuesday night and Wednesday after an industry publication reported that a group of private investors has offered $24 billion, or about $52 per share, for the troubled department store chain.
The stock, which closed Tuesday at $40.03, traded as high as $45.50 Wednesday before settling to a $43.09 close.
Manhattan-based Kohlberg Kravis & Roberts Co. and Goldman Sachs Group made the offer, which represents a premium of 25 percent over Friday’s closing price, according to Women’s Wear Daily.
Rumors about a possible takeover have swirled for weeks around Macy’s, but Tuesday’s report was more credible because it contained more specific information, according to Stephanie Hoff, an analyst with the St. Louis-based investment bank Edward Jones.
U.S. Treasury prices rise on growth outlook
U.S. treasury bond prices rose on Wednesday as Federal Reserve Chairman Ben Bernanke pared back economic growth projections for this year and 2008.
At 5 p.m. EDT, the 10-year Treasury note was up $2.50 per $1,000 in face value, or 0.250 points, from its level at 5 p.m. Tuesday. Its yield, which moves in the opposite direction, fell to 5.03 percent from 5.06 percent.
The 30-year bond rose 0.31 points. Its yield fell to 5.12 percent from 5.14 percent.
The 2-year note rose 1.06 point. Its yield fell to 4.86 percent from 4.89 percent.
Yields on 3-month Treasury bills were 4.96 percent as the discount rate fell 0.01 percentage point to 4.82 percent.