Silver State Takes RE-Linked 1Q Loss

Silver State Bancorp, Henderson, Nev., has reported a net loss of $14.4 million ($0.95 per share) for the first quarter, citing an increase in its loan loss reserve related to faltering real estate markets. In the first quarter of 2007, the company reported net income of $5.6 million ($0.39 per share). The loss reflects a $31.0 million provision for loan losses that was attributed to first-quarter chargeoffs of $9.7 million and nonperforming loans that grew from $13.1 million to $78.0 million. "The impact of the deterioration of the Nevada and Arizona economies and real estate markets on certain segments of our loan portfolio, namely our residential construction and land loans, began to be realized toward the end of the first quarter of 2008 as project delays mounted and updated appraisals showing significant[ly] lower valuations were received," said Corey L. Johnson, Silver State's president and chief executive officer. The company can be found online at http://www.silverstatebancorp.com.