Western Alliance Bancorporation 8K Results of Operations and Financial Condition | WAL 17 Jan 06

Exhibit 99.1


FOR IMMEDIATE RELEASE	MEDIA CONTACT:	Robert Sarver
January 17, 2006		Chairman/CEO
		858-523-4601

	INVESTOR CONTACT:	Dale Gibbons
		CFO
		702-248-4200

Western Alliance Reports Net Income of $28.1 Million or
$1.24 per share for 2005 and $8.4 Million or $0.34 per share for the Fourth
Quarter

Las Vegas — January 17, 2006 — Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for 2005 and the fourth quarter of 2005.

2005 Highlights:

	•		Net income of $28.1 million, up 39.9% from $20.1 million in 2004

	•		Diluted earnings per share of $1.24, compared to $1.09 in 2004

	•		Net revenue (sum of net interest income and non-interest income) of $114 million, up 43.3% from $80 million in 2004

	•		Loans of $1.79 billion at December 31, 2005, up 50.9% or $605 million from one year ago

	•		Deposits of $2.39 billion at December 31, 2005, up 36.3% or $638 million from one year ago

	•		Completed initial public offering on July 6, 2005 of 4.2 million shares for net proceeds of $85.1 million

Fourth Quarter 2005 Highlights:

	•		Net income of $8.4 million, up 8.9% from the third quarter 2005 and 31.3% from the fourth quarter 2004

	•		Diluted earnings per share of $0.34, compared to $0.33 in the fourth quarter 2004

	•		Net revenue of $32.0 million, up 4.8% from the third quarter 2005 and 35.1% from the fourth quarter 2004

	•		Loans of $1.79 billion at December 31, 2005, up 10.9% or $176 million from September 30, 2005

	•		Deposits of $2.39 billion at December 31, 2005, up 2.0% or $46 million from September 30, 2005

Financial Performance

Western Alliance Bancorporation reported of net income of $28.1 million for 2005, up 39.9 percent from $20.1 million for 2004. Diluted earnings per share were $1.24, compared to $1.09 for 2004. For the fourth quarter 2005, net income was $8.4 million, up 31.3 percent from $6.4 million for the fourth quarter 2004. Earnings per share were $0.34 for the fourth quarter 2005 compared to $0.33 for the same period in 2004. We closed our initial public offering of 4.2 million shares on July 6, 2005, which increased our average shares outstanding in 2005 and resulted in net proceeds of $85.1 million.

Loans grew $176 million to $1.79 billion at December 31, 2005 from September 30, 2005 and $605 million from December 31, 2004. Deposits grew $46 million to $2.39 billion from September 30, 2005 and $638 million from December 31, 2004.

Robert Sarver, chairman and chief executive officer, said, “2005 was an outstanding year for Western Alliance Bancorporation. Our team achieved all of our objectives for the year by organically growing our loans and deposits each over $600 million, hiring 28 experienced relationship managers, opening three new offices, reporting record earnings, and finally, completing our initial public offering on the New York Stock Exchange.

Mr. Sarver continued, “We started 2006 with the announcement of our merger with Intermountain First Bancorp, and earlier today announced our merger with Bank of Nevada. These transactions will substantially strengthen our position in Clark County and establish our presence in Reno. Additionally, we are on track to open eight new offices throughout our territory this year and expect to hire another 20 experienced relationship managers from other financial institutions. These actions should enable us to continue our exceptional growth and performance trend.”

Income Statement

Net interest income increased 35.4 percent to $28.6 million in the fourth quarter 2005 from $21.1 million in the fourth quarter of 2004. The interest margin remained flat at 4.43 percent in the third and fourth quarters of this year. The margin was 4.20 percent in the fourth quarter 2004.

The provision for loan losses was $2.0 million for the fourth quarter 2005 compared to $1.3 million for the third quarter 2005 and $0.8 million for the fourth quarter 2004. Non-accrual loans were $0.1 million or 0.01 percent of total loans at December 31, 2005, compared to 0.13 percent of total loans at December 31, 2004. Net loan losses were $0.1 million (0.01 percent of average loans annualized) for the fourth quarter 2005 and $0.3 million, 0.02 percent of average loans, for the full year.

Non-interest income was $3.4 million for the fourth quarter 2005, up 33.3 percent from $2.6 million for the same period in 2004. For the third quarter 2005, non-interest income was $3.2 million.

Net revenue was $32.0 million for the fourth quarter 2005, up 35.2 percent from $23.7 million for the fourth quarter 2004. Full-year 2005 net revenue of $114 million was up 43.3 percent from 79.9 million last year.

Non-interest expense was $17.1 million for the fourth quarter 2005, up 32.4 percent from $12.9 million for the same period in 2004. For the third quarter 2005, non-interest expense was $17.3 million. We had 537 full-time equivalent employees on December 31, 2005 compared to 522 on September 30, 2005 and 424 on December 31, 2004. We had 16 full-service banking offices on December 31, 2005 compared to 15 at September 30, 2005 and 13 on December 31, 2004.

Net income increased 31.3 percent to $8.4 million for the fourth quarter 2005 compared to $6.4 million for the same period last year. Diluted earnings per share were $0.34 compared with $0.33 for the fourth quarter 2004. Average diluted shares increased 28.6 percent to 25.1 million for the fourth quarter 2005 compared to 19.5 million for the fourth quarter 2004.

For 2005, net income increased 39.9 percent to $28.1 million from $20.1 million for 2004. Earnings per share increased 13.8 percent to $1.24 from $1.09 in 2004. Average diluted shares increased 23.2 percent to 22.7 million compared to 18.4 million last year.

Balance Sheet

Loans totaled $1.79 billion at December 31, 2005, an increase of 10.9 percent from September 30, 2005 and 50.9 percent from $1.19 billion at December 31, 2004. Residential real estate loans were the fastest growing segment of the portfolio, increasing $33 million or 14.0 percent since September 30, 2005 and 134.5 percent since December 31, 2004. Residential real estate and consumer loans increased to 16 percent of the portfolio compared with 11 percent one year ago.

Deposits totaled $2.39 billion at December 31, 2005, an increase of 2.0 percent or $46 million from September 30, including a decrease in title company deposits of $132 million during the period. Average deposits increased $102 million during the fourth quarter 2005 from the third quarter 2005 to $2.28 billion, including a decrease in average title company deposits of $44 million during the quarter. Non-interest bearing deposits comprised 40.9 percent of total deposits at December 31, 2005. At year end, 30.5 percent of non-interest bearing deposits were from title companies, compared to 40.7 percent at September 30, 2005. From December 31, 2004 to December 31, 2005, total deposits increased 36.3 percent or $638 million from $1.76 billion. At December 31, 2005 the company’s loan to deposit ratio was 74.9 percent compared with 67.7 percent one year earlier.

Borrowings totaled $159 million at December 31, 2005, a decrease of 36.3 percent from $249 million at December 31, 2004. Fed funds sold totaled $131 million at December 31, 2005, up nearly six fold from $23 million one year earlier.

Stockholders’ equity increased $111 million from December 31, 2004 to $244 million at December 31, 2005, due primarily to our successful initial public offering in June 2005. At December 31, 2005 tangible common equity was 8.4 percent of tangible assets and total risk-based capital was 13.8 percent of risk-weighted assets.

Total assets increased 31.3 percent to $2.86 billion at December 31, 2005 from $2.18 billion at December 31, 2004.

Operating Unit Highlights

BankWest of Nevada reported loan growth of $81 million during the fourth quarter of 2005 and $293 million for the full year to $1.08 billion at December 31, 2005. Deposits increased $20 million and $319 million to $1.61 billion during the same periods, respectively. Net income at BankWest of Nevada was

$7.2 million during the fourth quarter 2005 compared with $6.3 million during the fourth quarter 2004. For the full year, net income was $25.3 million, up 24.7% from $20.3 million in 2004.

Alliance Bank of Arizona reported loan growth of $46 million during the fourth quarter 2005 and $171 million for the full year to $405 million. Deposits decreased $3 million and increased $180 million to $457 million during the same periods, respectively. Net income at Alliance Bank of Arizona was $0.9 million during the fourth quarter 2005 compared with $0.5 million during the fourth quarter 2004. For the full year, net income was $3.0 million, up 257.6% from $0.8 million in 2004.

Torrey Pines Bank reported loan growth of $49 million during the fourth quarter 2005 and $141 million for the full year to $305 million. Deposits increased $20 million and $136 million to $335 million during the same periods, respectively. Net income at Torrey Pines Bank was $0.8 million during the fourth quarter 2005 compared with $0.3 million during the fourth quarter 2004. For the full year, net income was $2.2 million, up 116.3% from $1.0 million in 2004.

Assets under management at Miller/Russell and Associates were $1.11 billion at December 31, 2005, up 40.3 percent from $791 million at December 31, 2004. At Premier Trust, assets under management increased 65.0 percent from $80 million to $132 million from December 31, 2004 to December 31, 2005. Total trust assets increased 42.3 percent from $208 million to $296 million for the same periods, respectively.

Attached to this press release is summarized financial information for the quarter and year ended December 31, 2005.

Subsequent Events

On January 3, 2006, Western Alliance Bancorporation announced a definitive agreement to acquire Intermountain First Bancorp, the parent company of Nevada First Bank, and on January 17, Western Alliance announced a definitive agreement to acquire Bank of Nevada. These transactions are expected to close in the second quarter 2006.

Conference Call

Western Alliance Bancorporation will host a conference call to discuss its 2005 financial results at noon ET on Wednesday, January 18, 2006. Participants may access the call by dialing 888-802-2266, using the pass code 2245874. The call will be recorded and made available for replay after 5:00 p.m. ET January 18 until 11 p.m. ET January 25 by dialing 888-203-1112 using the pass code 2245874.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include: factors listed in the initial public offering registration statement as filed with the Securities and Exchange Commission; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our

loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for loan losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.

We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements set forth in this press release to reflect new information, future events or otherwise.

About Western Alliance Bancorporation

Western Alliance Bancorporation is the parent company of BankWest of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Miller/Russell & Associates, and Premier Trust. These dynamic companies provide a broad array of banking, leasing, trust, investment, and mortgage services to clients in Nevada, Arizona and California. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers’ needs than larger institutions. Additional investor information can be accessed on the Investor Relations page of the company’s website, www.westernalliancebancorp.com.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data


	At or for the three months							For the year
	ended December 31,							ended December 31,
	2005		2004		Change %			2005		2004		Change %

Selected Balance Sheet Data:
($ in millions)
Total assets	$	2,857.3	$	2,176.8		31.3	%
Gross loans, including net deferred fees		1,793.4		1,188.5		50.9
Securities		680.5		788.6		(13.7	)
Federal funds sold		131.1		23.1		467.5
Deposits		2,393.9		1,756.0		36.3
Borrowings		80.5		223.6		(64.0	)
Junior subordinated debt		30.9		30.9		0.0
Stockholders’ equity		244.2		133.6		82.8

Selected Income Statement Data:
($ in thousands)
Interest income	$	38,975	$	27,075		44.0	%	$	134,910	$	90,855		48.5	%
Interest expense		10,360		5,936		74.5			32,568		19,720		65.2

Net interest income		28,615		21,139		35.4			102,342		71,135		43.9
Provision for loan losses		1,962		751		161.3			6,179		3,914		57.9

Net interest income after provision for loan losses		26,653		20,388		30.7			96,163		67,221		43.1
Non-interest income		3,403		2,552		33.3			12,138		8,726		39.1
Non-interest expense		17,050		12,873		32.4			64,864		44,929		44.4

Income before income taxes		13,006		10,067		29.2			43,437		31,018		40.0
Income tax expense		4,564		3,638		25.5			15,372		10,961		40.2

Net Income	$	8,442	$	6,429		31.3		$	28,065	$	20,057		39.9


Common Share Data:
Net income per share:
Basic	$	0.37	$	0.35		5.7		$	1.36	$	1.17		16.2
Diluted		0.34		0.33		3.0			1.24		1.09		13.8
Book value per share		10.71		7.32		46.3
Tangible book value per share		10.48		7.02		49.3
Average shares outstanding (in thousands):
Basic		22,807		18,242		25.0			20,583		17,190		19.7
Diluted		25,095		19,518		28.6			22,666		18,405		23.2
Common shares outstanding		22,810		18,250		25.0

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)


	At or for the three months									For the year
	ended December 31,									ended December 31,
	2005			2004			Change %			2005			2004			Change %

Selected Performance Ratios:
Return on average assets (1)		1.22	%		1.20	%		1.7	%		1.13	%		1.05	%		7.6	%
Return on average stockholders’ equity (1)		13.42			19.00			(29.4	)		14.37			17.48			(17.8	)
Net interest margin (1)		4.43			4.20			5.5			4.40			4.00			10.0
Net interest spread		3.43			3.57			(3.9	)		3.54			3.44			2.9
Efficiency ratio		53.25			54.34			(2.0	)		56.66			56.26			0.7
Loan to deposit ratio		74.92			67.68			10.7

Capital Ratios:
Tangible Common Equity		8.4	%		5.9	%		42.4
Leverage ratio		10.2			7.7			32.5
Tier 1 Risk Based Capital		12.8			10.9			16.5
Total Risk Based Capital		13.8			12.0			14.2

Asset Quality Ratios:
Net charge-offs to average loans outstanding (1)		0.01	%		0.00	%		100.0			0.02	%		0.00	%		100.0
Non-accrual loans to gross loans		0.01			0.13			(92.3	)
Non-accrual loans to total assets		0.00			0.07			(100.0	)
Loans past due 90 days and still accruing to total loans		0.00			0.00			0.0
Allowance for loan losses to gross loans		1.18			1.28			(7.8	)
Allowance for loan losses to non-accrual loans	> 10 times			> 10 times


(1)		Annualized for the three- month periods ended December 31, 2005 and 2004.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Statements of Income


	Three Months Ended				Years Ended
	December 31,				December 31,
(in thousands, except per share data)	2005		2004		2005		2004

Interest income on:
Loans, including fees	$	31,215	$	18,491	$	102,481	$	59,311
Securities		7,285		8,513		30,034		31,251
Federal funds sold and other		475		71		2,395		293

Total interest income		38,975		27,075		134,910		90,855

Interest expense on:
Deposits		8,422		3,780		25,546		12,123
Borrowings		1,345		1,720		4,909		6,058
Junior subordinated debt		593		436		2,113		1,539

Total interest expense		10,360		5,936		32,568		19,720

Net interest income		28,615		21,139		102,342		71,135
Provision for loan losses		1,962		751		6,179		3,914

Net interest income after provision for loan losses		26,653		20,388		96,163		67,221

Other income:
Trust and investment advisory services		1,591		1,190		5,699		2,896
Service charges		637		531		2,495		2,333
Other		1,175		831		3,944		3,497

		3,403		2,552		12,138		8,726

Other expense:
Compensation		9,767		7,656		36,816		25,590
Occupancy		2,619		2,038		9,819		7,309
Other		4,664		3,179		18,229		12,030

		17,050		12,873		64,864		44,929


Income before income taxes		13,006		10,067		43,437		31,018

Income tax expense		4,564		3,638		15,372		10,961


Net income	$	8,442	$	6,429	$	28,065	$	20,057


Earnings per share:
Basic	$	0.37	$	0.35	$	1.36	$	1.17

Diluted	$	0.34	$	0.33	$	1.24	$	1.09

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Statements of Income


					Quarter ended
	December 31,		September 30,		June 30,		March 31,		December 31,
($ in thousands, except per share data)	2005		2005		2005		2005		2004

Interest income on:
Loans, including fees	$	31,215	$	27,343	$	23,589	$	20,334	$	18,491
Securities		7,285		7,488		7,385		7,876		8,513
Federal funds sold and other		475		869		838		213		71

Total interest income		38,975		35,700		31,812		28,423		27,075

Interest expense on:
Deposits		8,422		6,767		5,838		4,519		3,780
Borrowings		1,345		1,056		1,084		1,424		1,720
Junior subordinated debt		593		546		508		466		436

Total interest expense		10,360		8,369		7,430		6,409		5,936

Net interest income		28,615		27,331		24,382		22,014		21,139
Provision for loan losses		1,962		1,283		1,187		1,747		751

Net interest income after provision for loan losses		26,653		26,048		23,195		20,267		20,388

Other income:
Trust and investment advisory services		1,591		1,448		1,347		1,313		1,190
Service charges		637		662		641		555		531
Other		1,175		1,123		930		716		831

		3,403		3,233		2,918		2,584		2,552

Other expense:
Compensation		9,767		9,541		9,015		8,493		7,656
Occupancy		2,619		2,581		2,412		2,207		2,038
Other		4,664		5,152		4,540		3,873		3,179

		17,050		17,274		15,967		14,573		12,873

Income before income taxes		13,006		12,007		10,146		8,278		10,067

Income tax expense		4,564		4,258		3,593		2,957		3,638


Net income	$	8,442	$	7,749	$	6,553	$	5,321	$	6,429


Earnings per share:
Basic	$	0.37	$	0.34	$	0.35	$	0.29	$	0.35

Diluted	$	0.34	$	0.31	$	0.32	$	0.27	$	0.33

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets


	December 31,			September 30,			June 30,			March 31,			December 31,
($ in millions)	2005			2005			2005			2005			2004

Assets
Cash and due from banks	$	111.2		$	90.6		$	93.2		$	87.0		$	92.3
Federal funds sold		131.1			204.0			212.2			109.5			23.1

Cash and cash equivalents		242.3			294.6			305.4			196.5			115.4


Securities		680.5			713.1			695.4			729.1			788.6
Gross loans, including net deferred loan fees:
Construction and land development		432.7			397.0			381.4			362.9			323.2
Commercial real estate		727.2			655.0			598.3			544.1			491.9
Residential real estate		272.9			239.5			168.6			140.2			116.4
Commercial and industrial		342.5			307.0			286.3			266.7			241.2
Consumer		20.4			21.1			20.6			20.0			17.7
Net deferred loan fees		(2.3	)		(2.1	)		(1.9	)		(2.1	)		(1.9	)

		1,793.4			1,617.5			1,453.3			1,331.8			1,188.5
Less: Allowance for loan losses		(21.2	)		(19.3	)		(18.1	)		(17.1	)		(15.3	)

Loans, net		1,772.2			1,598.2			1,435.2			1,314.7			1,173.2

Initial public offering proceeds receivable		—			—			77.1			—			—
Premises and equipment, net		54.7			36.9			35.8			29.2			29.4
Bank owned life insurance		51.8			51.2			26.7			26.5			26.2
Goodwill and other intangibles		5.2			5.2			5.3			5.3			5.4
Other assets		50.6			45.8			40.4			37.5			38.6

Total assets	$	2,857.3		$	2,745.0		$	2,621.3		$	2,338.8		$	2,176.8


Liabilities and Stockholders’ Equity
Liabilities
Non-interest bearing demand deposits	$	980.0		$	1,048.2		$	964.3		$	864.1		$	749.6
Interest bearing deposits:
Demand		122.3			107.7			110.5			103.0			103.7
Savings and money market		949.6			893.7			820.0			783.5			665.4
Time, $100 and over		316.2			275.3			273.6			249.0			219.4
Other time		25.8			22.6			21.1			19.1			17.9

		2,393.9			2,347.5			2,189.5			2,018.7			1,756.0
Customer repurchase agreements		78.2			55.8			55.3			29.1			25.6
Borrowings		80.5			63.7			113.7			113.7			223.6
Junior subordinated debt		30.9			30.9			30.9			30.9			30.9
Accrued interest payable and other liabilities		29.6			8.9			9.4			9.3			7.1

Total liabilities		2,613.1			2,506.8			2,398.8			2,201.7			2,043.2

Stockholders’ Equity
Common stock and additional paid-in capital		167.6			167.6			157.8			81.0			80.5
Retained earnings		86.3			77.7			70.1			63.6			58.2
Accumulated other comprehensive loss		(9.7	)		(7.1	)		(5.4	)		(7.5	)		(5.1	)

Total stockholders’ equity		244.2			238.2			222.5			137.1			133.6

Total liabilities and stockholders’ equity	$	2,857.3		$	2,745.0		$	2,621.3		$	2,338.8		$	2,176.8

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Statement of
Changes in Stockholders’ Equity


	Years ended Dec. 31,
(in thousands)	2005			2004

Balance, beginning of period	$	133,571		$	97,451
Net income		28,065			20,057
Other comprehensive income (loss), net of tax:
Net unrealized holding losses on securities available for sale		(4,586	)		(1,863	)
Common stock issued		85,063			17,355
Stock options exercised		1,222			415
Stock warrants exercised		806			156
Compensation cost on restricted stock		82			—

Balance, end of period	$	244,223		$	133,571

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Loan Losses


					Quarter Ended
	December 31,		September 30,		June 30,		March 31,			December 31,
(in thousands)	2005		2005		2005		2005			2004

Balance, beginning of period	$	19,288	$	18,118	$	17,114	$	15,271		$	14,525
Provisions charged to operating expenses		1,962		1,283		1,187		1,747			751
Recoveries of loans previously charged-off:
Construction and land development		—		—		—		—			—
Commercial real estate		—		—		—		—			—
Residential real estate		—		—		—		3			6
Commercial and industrial		8		7		19		130			20
Consumer		16		6		1		5			1

Total recoveries		24		13		20		138			27
Loans charged-off:
Construction and land development		—		—		—		—			—
Commercial real estate		—		—		—		—			—
Residential real estate		—		—		—		—			—
Commercial and industrial		13		—		107		18			11
Consumer		69		126		96		24			21

Total charged-off		82		126		203		42			32
Net charge-offs (recoveries)		58		113		183		(96	)		5

Balance, end of period	$	21,192	$	19,288	$	18,118	$	17,114		$	15,271

Western Alliance Bancorporation and Subsidiaries

Average Balances, Yields and Rates Paid


						Three Months Ended December 31,
	2005								2004

						Average								Average
	Average					Yield/			Average					Yield/
	Balance			Interest		Cost			Balance			Interest		Cost
	(in			(in					(in			(in
	millions)			thousands)					millions)			thousands)
Earning Assets
Securities	$	709.7		$	7,131		3.99	%	$	835.5		$	8,360		3.98	%
Federal funds sold and other		45.7			475		4.12	%		14.9			70		1.87	%
Loans		1,791.1			31,215		6.91	%		1,135.8			18,491		6.48	%
Federal Home Loan Bank stock		14.2			154		4.31	%		15.1			153		4.03	%

Total earnings assets		2,560.7			38,975		6.04	%		2,001.3			27,074		5.38	%
Non-earning Assets
Cash and due from banks		80.4								69.8
Allowance for loan losses losses		(20.0	)							(14.9	)
Bank-owned life insurance		51.4								26.0
Other assets		75.3								54.9

Total assets	$	2,747.8							$	2,137.1

Interest Bearing Liabilities
Sources of Funds
Interest-bearing deposits:
Interest-bearing checking	$	115.4			188		0.65	%	$	88.7			66		0.30	%
Savings and money market		935.3			5,629		2.39	%		663.1			2,441		1.46	%
Time deposits		318.6			2,605		3.24	%		236.1			1,272		2.14	%

		1,369.4			8,422		2.44	%		987.9			3,779		1.52	%
Borrowings		175.2			1,345		3.05	%		284.4			1,720		2.41	%
Junior subordinated debt		30.9			593		7.61	%		30.9			436		5.61	%

Total interest-bearing liabilities		1,575.5			10,360		2.61	%		1,303.2			5,935		1.81	%
Non-interest Bearing Liabilities
Noninterest-bearing demand deposits		909.9								687.3
Other liabilities		13.0								12.0
Stockholders’ equity		249.6								134.6

Total liabilities and stockholders’ equity	$	2,747.8							$	2,137.1

Net interest income and margin				$	28,615		4.43	%				$	21,139		4.20	%

Net interest spread							3.43	%							3.57	%

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results


													Inter-
				Alliance			Torrey						segment			Consoli-
	BankWest			Bank			Pines						Elimi-			dated
(in millions)	of Nevada			of Arizona			Bank			Other			nations			Company

At December 31, 2005:
Assets	$	1,886.7		$	520.0		$	405.0		$	284.4		$	(238.8	)	$	2,857.3
Gross loans and deferred fees		1,083.7			404.6			305.1			—			—			1,793.4
Less: Allowance for loan losses		(12.3	)		(5.5	)		(3.4	)		—			—			(21.2	)

Net loans		1,071.4			399.1			301.7			—			—			1,772.2

Deposits		1,606.8			457.2			335.3			—			(5.4	)		2,393.9
Stockholders’ equity		128.0			43.6			33.4			251.3			(212.1	)		244.2

(in thousands)
Three Months Ended December 31, 2005:
Net interest income	$	18,798		$	5,409		$	4,531		$	(123	)	$	—		$	28,615
Provision for loan losses		875			623			464			—			—			1,962

Net interest income after provision for loan losses		17,923			4,786			4,067			(123	)		—			26,653
Noninterest income		1,505			376			250			10,553			(9,281	)		3,403
Noninterest expense		(8,571	)		(3,695	)		(2,952	)		(2,156	)		324			(17,050	)

Income (loss) before income taxes		10,857			1,467			1,365			8,274			(8,957	)		13,006
Income tax expense (benefit)		3,639			562			556			(193	)		—			4,564

Net income (loss)	$	7,218		$	905		$	809		$	8,467		$	(8,957	)	$	8,442


(in thousands)
Year Ended December 31, 2005:
Net interest income	$	70,004		$	18,878		$	14,646		$	(1,169	)	$	(17	)	$	102,342
Provision for loan losses		2,692			2,040			1,447			—			—			6,179

Net interest income after provision for loan losses		67,312			16,838			13,199			(1,169	)		(17	)		96,163
Noninterest income		5,335			1,359			738			36,377			(31,671	)		12,138
Noninterest expense		(34,669	)		(13,298	)		(10,234	)		(7,719	)		1,056			(64,864	)

Income (loss) before income taxes		37,978			4,899			3,703			27,489			(30,632	)		43,437
Income tax expense (benefit)		12,636			1,874			1,497			(635	)		—			15,372

Net income (loss)	$	25,342		$	3,025		$	2,206		$	28,124		$	(30,632	)	$	28,065

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results (continued)


													Inter-
				Alliance			Torrey						segment			Consoli-
	BankWest			Bank			Pines						Elimi-			dated
(in millions)	of Nevada			of Arizona			Bank			Other			nations			Company

At December 31, 2004:
Assets	$	1,578.3		$	332.8		$	257.5		$	173.7		$	(165.5	)	$	2,176.8
Gross loans and deferred fees		790.3			234.1			164.1			—			—			1,188.5
Less: Allowance for loan losses		(9.9	)		(3.4	)		(2.0	)		—			—			(15.3	)

Net loans		780.4			230.7			162.1			—			—			1,173.2

Deposits		1,287.6			277.2			199.4			—			(8.2	)		1,756.0
Stockholders’ equity		91.4			31.2			26.4			140.6			(156.0	)		133.6

(in thousands)
Three Months Ended December 31, 2004:
Net interest income	$	15,705		$	3,367		$	2,477		$	(410	)	$	—		$	21,139
Provision for loan losses		—			511			240			—			—			751

Net interest income after provision for loan losses		15,705			2,856			2,237			(410	)		—			20,388
Noninterest income		1,148			229			124			8,207			(7,156	)		2,552
Noninterest expense		(7,443	)		(2,271	)		(1,858	)		(1,441	)		140			(12,873	)

Income (loss) before income taxes		9,410			814			503			6,356			(7,016	)		10,067
Income tax expense (benefit)		3,139			341			197			(39	)		—			3,638

Net income (loss)	$	6,271		$	473		$	306		$	6,395		$	(7,016	)	$	6,429


(in thousands)
Year Ended December 31, 2004:
Net interest income	$	54,215		$	10,225		$	8,141		$	(1,444	)	$	(2	)	$	71,135
Provision for loan losses		1,417			1,657			840			—			—			3,914

Net interest income after provision for loan losses		52,798			8,568			7,301			(1,444	)		(2	)		67,221
Noninterest income		4,851			774			604			25,149			(22,652	)		8,726
Noninterest expense		(27,286	)		(8,074	)		(6,301	)		(3,705	)		437			(44,929	)

Income (loss) before income taxes		30,363			1,268			1,604			20,000			(22,217	)		31,018
Income tax expense (benefit)		10,033			422			584			(78	)		—			10,961

Net income (loss)	$	20,330		$	846		$	1,020		$	20,078		$	(22,217	)	$	20,057

Western Alliance Bancorporation (WAL) 8-KResults of Operations and Financial Condition