Nevada State Bank, a subsidiary of Zions Bancorp, on Wednesday reported its sixth consecutive quarter of profitability as lower credit costs and improving loan quality contribute to the positive earnings results.
Net income was $4.4 million in the second quarter, compared with net income of $6.9 million for the first quarter of 2012.
“We are pleased to report our sixth consecutive quarter of profitability, highlighted by consumer loan growth and a 32 percent increase from the prior quarter in earnings before taxes and provisions for credit losses,” Dallas Haun, president and CEO, said in a statement.
Haun said the bank has seen improvement in asset quality, including a year-over-year decrease of 36 percent in nonperforming assets. He said deposits grew by $130.3 million for the 12 months ended June 30, while year-over-year growth in consumer loan balances was $26 million.
Las Vegas-based Nevada State Bank is the largest state-chartered bank, with assets of more than $4 billion.
“We continue to view consumer and small business loan production as our No. 1 priority,” Haun said. “Our unique home lending products … have produced positive results, boosting or total consumer loans outstanding (by $26 million) to $699.3 million.”
Haun said the loans allow qualified Nevada residents to “refinance and pay down their mortgages more quickly.” He said the bank has funded nearly $25 million in small-business loans in the first six months of the year.
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893.