Western Liberty Bancorp announces losses

Western Liberty Bancorp, parent of Service1st Bank of Nevada, announced Monday that it lost $2.4 million in the fourth quarter and $14.2 million for the full year as the bank holding company deals with more bad real estate loans.

"While the national and local economic indicators are starting to improve, we are continuing to see asset quality decline, although at a slower pace than in past quarters," said Patricia Ochal, Western Liberty's chief financial officer, in an earnings statement.

Western Liberty said the fourth-quarter loss amounted to 17 cents a share. Net interest income totaled $1.8 million during the quarter.

The quarterly loss includes a $1.3 million provision for loan losses. There are no comparable numbers for the fourth quarter of 2010 since Western Liberty acquired the bank in that quarter.

Officials with the Las Vegas-based company said the company's nonperforming assets more than doubled year over year, to $28.1 million, and that its percentage of nonperforming assets to total assets jumped to 14.2 percent from 5.4 percent a year earlier.

In January, Western Liberty formed a nonbank subsidiary to house problem assets and ease disposal of troubled loans.

The company transferred $4 million in foreclosed properties into Las Vegas Sunset Properties from Service1st Bank in the fourth quarter. In January, Western Liberty moved another $11.5 million in nonperforming loans to Las Vegas Sunset Properties.

Western Liberty acquired Service1st in October 2010. Since then, Western Liberty has shrunk the bank's assets by 23 percent to $198.3 million at Dec. 31 and has continued to repurchase the bank's shares.

Western Liberty CEO William Martin said the company repurchased 934,987 shares in the fourth quarter at an average cost of $2.34 per share. For the past six month of 2011, the company repurchased 1.6 million shares at an average cost of $2.59 per share.

Total loans were $101.9 million, compared with $106.3 million for 2010. For the year, Western Liberty reported an $8.7 million provision for loan losses.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.