Nevada State Bank comes off the ropes with fourth-quarter profit
Nevada State Bank on Tuesday reported a strong return to profitability last year, compared with a sizable loss in 2010. The Las Vegas-based bank even showed a modest profit in the fourth quarter, reversing a year-ago loss.
Lower credit costs and improving loan quality were responsible for the improvement in quarterly and year-to-date profits, a Nevada State Bank executive said.
The bank, a subsidiary of Zions Bancorporation, reported net income of $8.9 million for the quarter, compared with a loss of $19.3 million for the fourth quarter of 2010.
Net income for 2011 was $46.6 million, compared with a net loss of $70.3 million in 2010.
"We are very pleased with our 2011 results, which are highlighted by a strong return to profitability," Nevada State Bank President and CEO Dallas Haun said.
In a statement, Nevada State Bank reported $150 million in overall loan growth in its commercial, small business and consumer loan balances last year. The bank ended 2011 with a loan portfolio valued at $1.5 billion.
Nonperforming assets also decreased significantly last year. The bank reported a 54 percent decline in nonperforming assets, to $109.2 million as of Dec. 31.
Haun said more important was the "strong growth in loan balances to our commercial, small-business and consumer clients." He said growth reflected a commitment to those sectors of the Nevada economy "as we emerge together from this difficult economic environment."
Nevada State Bank, with assets of more than $4.1 billion, is the largest state-chartered bank in Nevada with 53 branches.
Zions Bancorp shares lost $1.40, or 7.55 percent, Tuesday to close at $17.15 on heavy volume of 10.05 million shares traded on the Nasdaq Global Select Market. On average, the Salt Lake City-based bank holding company trades 3.4 million shares per day.
The decline of Zion Bancorp's stock price came one day after the company reported fourth-quarter net income of $44.4 million, or 24 cents a share, compared with a loss of $110.3 million, or 62 cents a share, a year earlier.
Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.
