Rapidly growing Silver State Bancorp of Henderson in Wednesday said fourth-quarter earnings grew from a year ago.
The bank holding company on Wednesday reported fourth-quarter net income increased to $5.9 million, up from $5.7 million in the last quarter of the prior year. Earnings per share slipped to 38 cents from 40 cents a year ago, but that appears to stem from the $26 million initial public offering of stock that diluted previously outstanding shares in July.
Silver State’s net income increased every quarter during 2007.
The fourth-quarter results for Silver State contrast those of the other two publicly traded bank holding company based in Southern Nevada.
Western Alliance Bancorp, which operates Bank of Nevada as well as institutions in Arizona and California, last week reported that net income plunged 72.9 percent to $2.4 million in the fourth quarter. Community Bancorp said its fourth-quarter earnings dropped to $3.8 million from $5.4 million as nonaccrual loans and provisions for loan losses increased.
Western Alliance’s fourth-quarter earnings plummeted primarily because of a $13.9 million increase in reserves for loan losses.
Silver State, meanwhile, boosted its provision for loan losses to $3.6 million, up from $2.4 million for the third quarter and $804,000 for year-end 2006. Nonperforming loans totaled $13.1 million or 0.84 percent of total loans, compared with 0.01 percent of total loans a year earlier.
"There is virtually no question at this point that the fourth-quarter results, as well as those of the full year, were impacted by a weakening economy," Chief Executive Officer Corey Johnson in a statement.
Johnson called Silver State’s operations "exemplary" and said the company is closely watching credit quality for "what now appears to be the outset of a recessionary economic environment."
He added: "We are well-positioned for the current operating environment."
Silver State continued its brisk growth pace in the fourth quarter, boosting totals for construction and land loans by $79.8 million or 8.1 percent in the fourth quarter.
Construction and land loans grew by $445.4 million or 71.8 percent for the year. The average yield for earning assets in the fourth quarter dipped to 9.3 percent from 9.8 percent a year ago.
Total assets soared by 45.8 percent to $1.76 billion over the last year.
The holding company reported 14.84 percent annualized return on equity and 1.33 percent return on assets for the quarter.
For the year, Silver State earnings increased to $24.8 million, or $1.68 per share from $20.9 million, or $1.52 a share in the previous year.
Silver State shares rose 6 cents, or 0.47 percent, Wednesday to close at $12.75 on the Nasdaq National Market.
Contact reporter John G. Edwards at email@example.com or (702) 383-0420.