Western Liberty Reports Smaller Second-Quarter Loss; Nonperforming Assets Rise

Posted: Aug. 15, 2012 | 11:41 a.m. Updated: Aug. 15, 2012 | 12:28 p.m.

Western Liberty Bancorp Inc., the parent company of Service1st Bank of Nevada, posted a smaller second-quarter loss than last year, despite a modest increase in nonperforming assets mostly associated with its commercial real estate portfolio.

The Las Vegas-based company lost $1.5 million, or 11 cents per share, compared with a loss of $4.6 million, or 30 cents a share, during second-quarter 2011.

Western Liberty in the quarter increased the size of its loan portfolio to $104.8 million, up from $101.5 million in the second quarter of 2011. Nonperforming assets totaled $26.5 million, up from $14.1 million in the same period last year.

"Our loan portfolio continues to stabilize, with nonperforming loans down $3.5 million from year end," said William Martin, CEO of Western Liberty. "While we still have a lot of work to do, we believe the steps we are taking will help us achieve our operating goals."

Martin said the bank's "capital remains exceptionally strong."

The company said in its quarterly financial report released late Tuesday that most problem loans were in its commercial real estate portfolio. Western Liberty's total assets were $198.7 million, compared with $223.3 million in the second quarter of 2011.

Service1st Bank operates two branches in Southern Nevada. Western Liberty also owns Las Vegas Sunset Properties, a company to manage under-performing and nonperforming loans as well as foreclosed real estate connected to the bank.

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

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Western Liberty Reports Smaller Second-Quarter Loss; Nonperforming Assets Rise