Silver State Bancorp in Henderson, Nev., said Wednesday that it lost $14.4 million in the first quarter as a result of taking a $31 million provision for losses on residential construction and land development loans.
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In the first quarter of 2007, the $1.9 billion-asset Silver State's provision was $1.3 million, and net income was $5.6 million.
The company charged off $9.7 million of loans in the quarter, compared to no chargeoffs a year earlier. Nonperforming loans rose sixfold from a year earlier, to $78 million, or 4.79% of gross loans.
Despite the loss, Silver State said that it remains well-capitalized. Its total risk-based capital ratio was 11.4% at March 31.
By late Wednesday Silver State's shares had plunged 28%, to $4.01.
