Service1st Bank parent posts quarterly loss

Western Liberty Bancorp Inc., as anticipated, on Friday posted a significant loss for the second quarter because of loan defaults.

The Las Vegas-based owner of Service1st Bank of Nevada also said it continues to look at strategic alternatives such as a sale or merger.

The company reported a loss of $4.6 million, or 30 cents a share, compared to a loss of $409,000, or 3 cents a share, in the first quarter.

Western Liberty reported a loss of $1.7 million, of 15 cents a share for the second quarter last year, when it was solely a shell company.

Most of the second-quarter loss was attributed to a $4.4 million provision for loan losses.

For the first six months of 2011, Western Liberty reported a loss of $5 million, or 33 cents a share, which included a $5.7 million provision for loan losses.

At the end of the second quarter, the company had $223.3 million in loans, cash and other assets; and $131.6 million in deposits. Nonperforming assets, including bad loans, totaled $14.1 million, or 6.3 percent of assets, up from $13.8 million, or 5.4 percent, on Dec. 31