Exhibit 99.1
Western Alliance Reports Net Income of $32.9 Million or $1.06 Per Share for 2007 and $2.4 Million or $0.08 Per Share for the Fourth Quarter 2007
LAS VEGAS--(BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for 2007 and the fourth quarter 2007.
2007 Highlights:
- Net income of $32.9 million, down 17.6% from $39.9 million in 2006
- Diluted earnings per share of $1.06, compared with $1.41 in 2006
- Net revenue (sum of net interest income and non-interest income) of $204.3 million, up 22.6% from $166.7 million in 2006
- Loans of $3.63 billion at December 31, 2007, up 21.0% or $630 million from one year ago
- Customer funds (sum of deposits and customer repurchases) of $3.82 billion at December 31, 2007, up 7.0% or $250 million from one year ago
Fourth Quarter 2007 Highlights:
- Net income of $2.4 million, including loan loss provision expense of $13.9 million, down 78.0% from $11.1 million in the third quarter 2007 and down 72.9% from $9.0 million for the fourth quarter 2006
- Diluted earnings per share of $0.08, including $0.19 per share of reserve building, down 77.1% from $0.35 in the third quarter 2007 and 74.2% from $0.31 in the fourth quarter 2006
- Net revenue (sum of net interest income and non-interest income) of $53.3 million, up 1.2% from $52.7 million in the third quarter 2007 and 16.3% from $45.8 million in the fourth quarter 2006
- Loans of $3.63 billion at December 31, 2007, up 2.4% or $87 million from September 30, 2007
- Customer funds of $3.82 billion at December 31, 2007, down 4.4% or $176 million from September 30, 2007
Financial Performance
Western Alliance Bancorporation reported net income of $32.9 million for 2007, down 17.6 percent from $39.9 million for 2006. Diluted earnings per share were $1.06. For the fourth quarter 2007, net income was $2.4 million, down 72.9 percent from $9.0 million for the fourth quarter 2006. This decline was largely attributable to an increase in loan loss provision expense of $13.2 million. Earnings per share were $0.08 for the fourth quarter 2007. Fourth quarter 2007 income includes a $2.9 million securities impairment charge offset by a $2.5 million increase in the market value of financial assets and liabilities carried at market value, including interest rate swaps, securities and trust preferred liabilities. The fourth quarter also includes a $1.3 million loss ($0.04 per share) from PartnersFirst, the Company’s affinity credit card initiative.
Loans grew $87 million or 2.4 percent to $3.63 billion at December 31, 2007 from September 30, 2007 and $630 million, including organic growth of $339 million or 11.3 percent, from December 31, 2006.
Customer funds decreased $176 million or 4.4 percent to $3.82 billion at December 31, 2007 from September 30, 2007. From December 31, 2006, customer funds grew $250 million, including an organic decline of $153 million. Non-interest title company deposits declined $170 million during the year and had a balance of $144 million at December 31, 2007.
Average customer funds for the quarter ended December 31, 2007 decreased $109 million or 2.7 percent to $3.90 billion from the quarter ended September 30, 2007. From the quarter ended December 31, 2006, average customer funds increased $485 million or 14.2 percent, including organic growth of $82 million or 2.4 percent.
“The fourth quarter 2007 was very challenging for our Company due to ongoing stress in the real estate sector in our markets, and in our ability to grow deposits due to an industry-wide lack of liquidity. The lack of deposit growth was exacerbated by further declines in our non-interest bearing title company deposits, which have been directly affected by a slow-down in real estate transactions,” said Robert Sarver, Chairman, President and Chief Executive Officer of Western Alliance. “Expense control remains a priority, and we made progress in this area as evidenced by the decline in compensation expense from the third quarter despite additional hiring at PartnersFirst.
“We look forward to 2008, but acknowledge that the real estate conditions in our markets may take some time to work through. Given this, WAL will continue to evaluate and implement strategies to improve our overall efficiencies and diversify our revenue streams so that when conditions improve, we will be poised to take full advantage of opportunities for new growth and increased shareholder value.”
Income Statement
Net interest income increased 14.4 percent to $46.4 million in the fourth quarter 2007 from $40.6 million in the fourth quarter 2006. The interest margin in the fourth quarter 2007 was 4.16 percent, compared with 4.38 percent in the third quarter 2007. The margin was 4.41 percent in the fourth quarter 2006.
The provision for loan losses was $13.9 million for the fourth quarter 2007 compared with $3.9 million for the third quarter 2007 and $0.7 million for the fourth quarter 2006. Non-accrual loans were $19.8 million representing 0.55 percent of total loans at December 31, 2007, compared with 0.05 percent of total loans at December 31, 2006. Net charge-offs were $4.5 million for the fourth quarter 2007, compared with $0.3 million for the same period in 2006.
Non-interest income was $6.9 million for the fourth quarter 2007, up 30.6 percent from $5.3 million for the same period in 2006. For the third quarter 2007, non-interest income was $5.9 million.
Net revenue was $53.3 million for the fourth quarter 2007, up 16.3 percent from $45.8 million for the fourth quarter 2006. For the third quarter 2007, net revenue was $52.7 million.
Non-interest expense was $36.0 million for the fourth quarter 2007, up 33.5 percent from $26.9 million for the same period in 2006. For the third quarter 2007, non-interest expense was $34.6 million. We had 992 full-time equivalent employees on December 31, 2007, including 14 FTE at PartnersFirst, compared with 987 on September 30, 2007 and 785 on December 31, 2006. We had 39 full-service banking offices on December 31, 2007 compared with 38 at September 30, 2007 and 31 on December 31, 2006.
Net income decreased 72.9 percent to $2.4 million for the fourth quarter 2007 compared with $9.0 million for the same period last year. Diluted earnings per share were $0.08 compared with $0.31 for the fourth quarter 2006, a decrease of 74.2 percent. Average diluted shares increased 6.9 percent to 31.3 million for the fourth quarter 2007 compared with 29.3 million for the fourth quarter 2006.
For 2007, net income decreased 17.6 percent to $32.9 million from $39.9 million for 2006. Diluted earnings per share decreased 24.1 percent to $1.06 from $1.41 in 2006. Average diluted shares increased 9.9 percent to 31.0 million compared to 28.2 million last year.
Balance Sheet
Loans totaled $3.63 billion at December 31, 2007, an increase of 2.4 percent from September 30, 2007 and 21.0 percent from $3.00 billion at December 31, 2006. Total loans acquired in the First Independent merger on March 31, 2007, were $291 million. Organic loan growth for the quarter and twelve months ended December 31, 2007 was $87 million and $339 million, respectively. At December 31, 2007 the allowance for loan losses was 1.36 percent of gross loans, compared to 1.13 percent at September 30, 2007 and 1.12 percent at December 31, 2006.
Customer funds totaled $3.82 billion at December 31, 2007, a decrease of $176 million from September 30, 2007 and an increase of $250 million from $3.57 billion at December 31, 2006. Total customer funds acquired in the First Independent merger were $403 million. Organic customer fund declines for the quarter and 12 months ended December 31, 2007 were $176 million and $153 million, respectively.
Non-interest bearing deposits, which include title company deposits for which the Company incurs non-interest expense for the benefit of the depositor, comprised 28.4 percent of total deposits at December 31, 2007. At year end, non-interest bearing deposits from title companies were 4.1 percent of total deposits compared to 5.5 percent at September 30, 2007, and 6.8 percent at December 31, 2006. Excluding non-interest bearing title company deposits, customer deposits and customer repurchase agreements totaled $3.7 billion at December 31, 2007, representing an organic decline of 3.0 percent or $113 million from September 30, 2007, and organic growth of 0.5 percent or $17 million from one year ago.
At December 31, 2007 the company’s loan to deposit ratio was 102.5 percent compared with 88.3 percent one year earlier. Fed funds sold totaled $11 million at December 30, 2007, down 90.9 percent from $121 million one year earlier.
Stockholders’ equity increased $93.0 million from December 31, 2006 to $502 million at December 31, 2007, due primarily to stock issued in connection with the First Independent Capital acquisition on March 31, 2007 and an increase in retained earnings. At December 31, 2007 tangible common equity was 5.4 percent of tangible assets and total risk-based capital was 10.3 percent of risk-weighted assets.
Western Alliance repurchased 171,100 shares of its common stock during the quarter ended December 31, 2007 under its $50 million share repurchase program effective through the end of 2008. The average per share price paid for the repurchased stock was $21.96.
Total assets increased 20.3 percent to $5.02 billion at December 31, 2007 from $4.17 billion at December 31, 2006. Of this growth, $316 million was organic, while $531 million represents the assets acquired through the First Independent merger on March 31, 2007.
Operating Unit Highlights
Bank of Nevada reported loan growth of $59 million during the fourth quarter 2007 and $121 million for the full year to $2.22 billion at December 31, 2007. Customer funds decreased $114 million and $292 million to $2.15 billion during the same periods, respectively. Bank of Nevada had a net loss of $0.5 million during the fourth quarter 2007 compared with net income of $9.4 million during the third quarter 2007 and $9.0 million for the same period one year ago. For the full year, net income was $27.3 million, down 26.4% from $37.1 million in 2006.
Alliance Bank of Arizona reported a loan increase of $22 million during the fourth quarter 2007 and $78 million for the full year to $584 million. Customer funds decreased $6 million and increased $96 million to $664 million during the same periods, respectively. Alliance Bank of Arizona had net income of $0.3 million during the fourth quarter 2007 compared with net income of $1.1 million during the third quarter 2007 and $0.9 million for the same period one year ago. For the full year, net income was $3.2 million, down 24.9% from $4.2 million in 2006.
Torrey Pines Bank, which includes PartnersFirst, reported loan growth of $34 million during the fourth quarter 2007 and $101 million for the full year to $515 million. Customer funds decreased $29 million and increased $34 million to $541 million during the same periods, respectively. Net income at Torrey Pines Bank was $0.5 million during the fourth quarter 2007 compared with $1.1 million during the third quarter 2007 and $1.0 million during the fourth quarter 2006. For the full year, net income was $3.7 million, down 18.6% from $4.5 million in 2006.
Alta Alliance Bank reported loan growth of $6 million during the fourth quarter 2007 and $39 million since its inception October 16, 2006. Customer funds increased $12 million for the quarter and grew to $69 million since inception. Alta Alliance Bank incurred a net loss of $0.4 million during the fourth quarter 2007 compared to $0.5 million during the third quarter 2007.
First Independent Bank reported a loan decline of $17 million during the fourth quarter 2007 to $322 million. Customer funds decreased $36 million to $422 million during the fourth quarter 2007. Net income at First Independent Bank was $1.4 million during both the third and fourth quarter 2007.
Assets under management at Miller/Russell and Associates, Shine Investments and Premier Trust were $2.31 billion at December 31, 2007, up 39.2 percent (14.4 percent organic) from $1.66 billion at December 31, 2006. Assets under administration by the three entities increased 37.2 percent (14.6 percent organic) from $1.83 billion to $2.51 billion at December 31, 2007.
Attached to this press release is summarized financial information for the quarter and year ended December 31, 2007.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its fourth quarter 2007 financial results at 12:00 p.m. ET on Wednesday, January 23, 2008. Participants may access the call by dialing 800-860-2442. The call will be recorded and made available for replay after 2:00 p.m. ET January 23, until 9 a.m. ET January 31, by dialing 1-877-344-7529 using the pass code 415121.
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 Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates, Shine Investment Advisory Services, Premier Trust, and PartnersFirst. These dynamic organizations provide a broad array of banking, leasing, trust, investment, and mortgage services to clients in Nevada, Arizona and California, investment services in Colorado, and bank card services nationwide. 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, westernalliancebancorp.com.
| Western Alliance Bancorporation and Subsidiaries |
| Summary Consolidated Financial Data |
| Unaudited |
| | At or for the three months | For the years |
| | ended Dec. 31, | ended Dec. 31, |
| | | 2007 | | 2006 | | Change % | 2007 | | 2006 | | Change % |
| | | | | | | | | | | | | |
Selected Balance Sheet Data:
($ in millions) | | | | | | | | | | | | | |
| Total assets | | $ | 5,016.0 | | | $ | 4,169.6 | | | 20.3 | | % | | | | | | | |
Gross loans, including net deferred fees | | | 3,633.0 | | | | 3,003.3 | | | 21.0 | | | | | | | | |
| Securities | | | 736.4 | | | | 542.0 | | | 35.9 | | | | | | | | |
| Federal funds sold | | | 11.0 | | | | 121.2 | | | (90.9 | ) | | | | | | | |
| Customer funds | | | 3,821.2 | | | | 3,571.1 | | | 7.0 | | | | | | | | |
| Borrowings | | | 544.7 | | | | 69.0 | | | 689.4 | | | | | | | | |
Junior subordinated and subordinated debt | | 122.2 | | | | 101.9 | | | 19.9 | | | | | | | | |
| Stockholders' equity | | 501.6 | | | | 408.6 | | | 22.8 | | | | | | | | |
| | | | | | | | | | | | | |
Selected Income Statement Data:
($ in thousands) | | | | | | | | | | | | | |
| Interest income | | $ | 81,190 | | | $ | 67,163 | | | 20.9 | | % | | $ | 305,822 | | | $ | 233,085 | | | 31.2 | | % | |
| Interest expense | | | 34,757 | | | | 26,588 | | | 30.7 | | | | 125,933 | | | | 84,297 | | | 49.4 | | |
| Net interest income | | 46,433 | | | | 40,575 | | | 14.4 | | | | 179,889 | | | | 148,788 | | | 20.9 | | |
Provision for loan losses | | | 13,881 | | | | 709 | | | 1,857.8 | | | | 20,259 | | | | 4,660 | | | 334.7 | | |
Net interest income after provision for loan losses | | 32,552 | | | | 39,866 | | | (18.3 | ) | | | 159,630 | | | | 144,128 | | | 10.8 | | |
Securities gains (losses) and other valuation changes | | (403 | ) | | | (4,436 | ) | | (90.9 | ) | | | (1,842 | ) | | | (4,436 | ) | | (58.5 | ) | |
| Non-interest income | | 6,872 | | | | 5,260 | | | 30.6 | | | | 24,380 | | | | 17,870 | | | 36.4 | | |
| Non-interest expense | | 35,964 | | | | 26,939 | | | 33.5 | | | | 133,780 | | | | 96,086 | | | 39.2 | | |
Income before income taxes | | | 3,057 | | | | 13,751 | | | (77.8 | ) | | | 48,388 | | | | 61,476 | | | (21.3 | ) | |
| Income tax expense | | 614 | | | | 4,744 | | | (87.1 | ) | | | 15,591 | | | | 21,587 | | | (27.8 | ) | |
| Net Income | | $ | 2,443 | | | $ | 9,007 | | | (72.9 | ) | | $ | 32,875 | | | $ | 39,889 | | | (17.6 | ) | |
Memo: intangible asset amortization expense, net of tax | | $ | 381 | | | $ | 263 | | | 44.9 | | | $ | 1,455 | | | $ | 607 | | | 139.7 | | |
| | | | | | | | | | | | | |
| Common Share Data: | | | | | | | | | | | | |
| Net income per share: | | | | | | | | | | | | |
Diluted net income per share | | 0.08 | | | | 0.31 | | | (74.2 | ) | % | | | 1.06 | | | | 1.41 | | | (24.8 | ) | % | |
Book value per share | | | 16.63 | | | | 15.09 | | | 10.2 | | | | | | | | |
Tangible book value per share (net of tax) | | 8.88 | | | | 9.81 | | | (9.5 | ) | | | | | | | |
| Average shares outstanding (in thousands): | | | | | | | | | | |
| Basic | | | 29,520 | | | | 26,790 | | | 10.2 | | | | 28,918 | | | | 25,623 | | | 12.9 | | |
| Diluted | | | 31,327 | | | | 29,317 | | | 6.9 | | | | 31,019 | | | | 28,218 | | | 9.9 | | |
Common shares outstanding | | | 30,157 | | | | 27,085 | | | 11.3 | | | | | | | | |
| | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Summary Consolidated Financial Data (continued) |
| Unaudited |
| | At or for the three months | For the years |
| | ended Dec. 31, | ended Dec. 31, |
| | | 2007 | | 2006 | | Change % | 2007 | | 2006 | | Change % |
| | | | | | | | | | | | | |
| Selected Performance Ratios: | | | | | | | | | | | | |
Return on average assets (1) | | | 0.19 | % | | | 0.87 | % | | (78.2 | ) | % | | | 0.70 | % | | | 1.09 | % | | (35.8 | ) | % | |
Cash return on average tangible assets (1) (2) | | | 0.23 | | | | 0.93 | | | (75.3 | ) | | | 0.77 | | | | 1.14 | | | (32.5 | ) | |
Return on average stockholders' equity (1) | | | 1.86 | | | | 8.94 | | | (79.2 | ) | | | 6.66 | | | | 11.45 | | | (41.8 | ) | |
Cash return on average tangible stockholders' equity (1) (2) | | | 4.04 | | | | 14.55 | | | (72.2 | ) | | | 12.48 | | | | 16.71 | | | (25.3 | ) | |
Net interest margin (1) | | | 4.16 | | | | 4.41 | | | (5.7 | ) | | | 4.40 | | | | 4.52 | | | (2.7 | ) | |
Net interest spread | | | 3.29 | | | | 3.28 | | | 0.3 | | | | 3.37 | | | | 3.40 | | | (0.9 | ) | |
Efficiency ratio - tax equivalent basis | | | 67.09 | | | | 58.58 | | | 14.5 | | | | 64.69 | | | | 57.51 | | | 12.5 | | |
Loan to deposit ratio | | | 102.45 | | | | 88.32 | | | 16.0 | | | | | | | | |
| | | | | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | | | | |
Tangible Common Equity | | 5.4 | % | | | 6.5 | % | | (16.9 | ) | | | | | | | |
Tier 1 Leverage ratio | | | 7.4 | | | | 8.2 | | | (9.8 | ) | | | | | | | |
Tier 1 Risk Based Capital | | | 7.9 | | | | 9.4 | | | (16.0 | ) | | | | | | | |
Total Risk Based Capital | | | 10.3 | | | | 11.5 | | | (10.4 | ) | | | | | | | |
| | | | | | | | | | | | | |
| Asset Quality Ratios: | | | | | | | | | | | | |
Net charge-offs to average loans outstanding (1) | | | 0.49 | % | | | 0.04 | % | | 1,125.0 | | | | 0.23 | % | | | 0.02 | % | | 1,067.6 | | |
Non-accrual loans to gross loans | | | 0.51 | | | | 0.05 | | | 920.0 | | | | | | | | |
Non-accrual loans and OREO to total assets | | | 0.46 | | | | 0.03 | | | 100.0 | | | | | | | | |
Loans past due 90 days and still accruing to total loans | | | 0.07 | | | | 0.03 | | | 100.0 | | | | | | | | |
Allowance for loan losses to gross loans | | | 1.36 | | | | 1.12 | | | 21.4 | | | | | | | | |
Allowance for loan losses to non-accrual loans | | | 267.37 | % | | | 2367.75 | % | | (88.7 | ) | | | | | | | |
| =================================================== | |
| (1) Annualized for the three-month periods ended December 31, 2007 and 2006. |
| (2) Cash return is defined as net income before intangible asset amortization expense. |
| Western Alliance Bancorporation and Subsidiaries |
| | | | |
| Condensed Consolidated Statements of Income |
| Unaudited | Three Months Ended | Years Ended |
| December 31, | December 31, |
| (in thousands, except per share data) | | | | |
| | 2007 | 2006 | 2007 | 2006 |
| Interest income on: | | | | |
| Loans, including fees | $ | 69,201 | | $ | 59,526 | | $ | 264,480 | | $ | 203,792 | |
| Securities | | 11,744 | | | 7,037 | | | 39,697 | | | 27,496 | |
Federal funds sold and other | | 245 | | | 600 | | | 1,645 | | | 1,797 | |
| Total interest income | | 81,190 | | | 67,163 | | | 305,822 | | | 233,085 | |
| Interest expense on: | | | | |
| Deposits | | 23,852 | | | 21,284 | | | 98,128 | | | 65,612 | |
| Borrowings | | 8,698 | | | 3,743 | | | 20,189 | | | 13,825 | |
Junior subordinated and subordinated debt | | 2,207 | | | 1,561 | | | 7,616 | | | 4,860 | |
| Total interest expense | | 34,757 | | | 26,588 | | | 125,933 | | | 84,297 | |
| Net interest income | | 46,433 | | | 40,575 | | | 179,889 | | | 148,788 | |
| Provision for loan losses | | 13,881 | | | 709 | | | 20,259 | | | 4,660 | |
Net interest income after provision for loan losses | | 32,552 | | | 39,866 | | | 159,630 | | | 144,128 | |
Gain (loss) on sale of securities | | (37 | ) | | (4,436 | ) | | 627 | | | (4,436 | ) |
Mark-to-market gains (losses), net | | 2,495 | | | - | | | 392 | | | - | |
Securities impairment charges | | (2,861 | ) | | - | | | (2,861 | ) | | - | |
| Other income: | | | | |
Trust and investment advisory services | | 2,889 | | | 2,011 | | | 9,764 | | | 7,346 | |
| Service charges | | 1,339 | | | 996 | | | 4,828 | | | 3,450 | |
Bank-owned life insurance | | 913 | | | 799 | | | 3,763 | | | 2,661 | |
| Other | | 1,731 | | | 1,454 | | | 6,025 | | | 4,413 | |
| | 6,872 | | | 5,260 | | | 24,380 | | | 17,870 | |
| Other expense: | | | | |
| Compensation | | 20,172 | | | 15,415 | | | 76,582 | | | 54,767 | |
| Occupancy | | 5,397 | | | 3,812 | | | 19,172 | | | 12,958 | |
| Customer service | | 1,813 | | | 1,655 | | | 6,708 | | | 6,684 | |
| Organizational costs | | - | | | 123 | | | - | | | 977 | |
| Merger expenses | | - | | | - | | | 747 | | | - | |
| Intangible amortization | | 381 | | | 263 | | | 1,455 | | | 607 | |
| Other | | 8,201 | | | 5,671 | | | 29,116 | | | 20,093 | |
| | 35,964 | | | 26,939 | | | 133,780 | | | 96,086 | |
Income before income taxes | | 3,057 | | | 13,751 | | | 48,388 | | | 61,476 | |
| | | | |
| Income tax expense | | 614 | | | 4,744 | | | 15,513 | | | 21,587 | |
| | | | |
| Net income | $ | 2,443 | | $ | 9,007 | | $ | 32,875 | | $ | 39,889 | |
| | | | |
Diluted earnings per share | $ | 0.08 | | $ | 0.31 | | $ | 1.06 | | $ | 1.41 | |
| Western Alliance Bancorporation and Subsidiaries |
| Five Quarter Condensed Consolidated Statements of Income |
| Unaudited | | | | | | | | | |
| Quarter ended |
($ in thousands, except per share data) | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, |
| 2007 | | 2007 | | 2007 | | 2007 | | 2006 |
| Interest income on: | | | | | | | | | |
| Loans, including fees | $ | 69,201 | | | $ | 69,066 | | $ | 67,193 | | | $ | 59,020 | | | $ | 59,526 | |
| Securities | | 11,744 | | | | 11,049 | | | 9,144 | | | | 7,760 | | | | 7,037 | |
Federal funds sold and other | | 245 | | | | 358 | | | 509 | | | | 533 | | | | 600 | |
| Total interest income | | 81,190 | | | | 80,473 | | | 76,846 | | | | 67,313 | | | | 67,163 | |
| Interest expense on: | | | | | | | | | |
| Deposits | | 23,852 | | | | 26,571 | | | 25,832 | | | | 21,873 | | | | 21,284 | |
Borrowings | | 8,698 | | | | 5,270 | | | 3,316 | | | | 2,905 | | | | 3,743 | |
Junior subordinated and subordinated debt | | 2,207 | | | | 1,858 | | | 1,872 | | | | 1,679 | | | | 1,561 | |
| Total interest expense | | 34,757 | | | | 33,699 | | | 31,020 | | | | 26,457 | | | | 26,588 | |
| Net interest income | | 46,433 | | | | 46,774 | | | 45,826 | | | | 40,856 | | | | 40,575 | |
| Provision for loan losses | | 13,881 | | | | 3,925 | | | 2,012 | | | | 441 | | | | 709 | |
Net interest income after provision for loan losses | | 32,552 | | | | 42,849 | | | 43,814 | | | | 40,415 | | | | 39,866 | |
Gain (loss) on sale of securities | | (37 | ) | | | 380 | | | - | | | | 284 | | | | (4,436 | ) |
Mark-to-market gains (losses), net | | 2,495 | | | | 1,676 | | | (3,766 | ) | | | (13 | ) | | | - | |
Securities impairment charges | | (2,861 | ) | | | - | | | - | | | | - | | | | - | |
| Other income: | | | | | | | | | |
| Trust and other fees | | 2,889 | | | | 2,633 | | | 2,137 | | | | 2,105 | | | | 2,011 | |
| Service charges | | 1,339 | | | | 1,253 | | | 1,167 | | | | 1,069 | | | | 996 | |
Bank-owned life insurance | | 913 | | | | 962 | | | 960 | | | | 928 | | | | 799 | |
| Other | | 1,731 | | | | 1,051 | | | 1,755 | | | | 1,488 | | | | 1,454 | |
| | 6,872 | | | | 5,899 | | | 6,019 | | | | 5,590 | | | | 5,260 | |
| Other expense: | | | | | | | | | |
| Compensation | | 20,172 | | | | 20,556 | | | 18,821 | | | | 17,033 | | | | 15,415 | |
| Occupancy | | 5,397 | | | | 4,840 | | | 4,696 | | | | 4,239 | | | | 3,812 | |
| Customer service | | 1,813 | | | | 1,675 | | | 1,897 | | | | 1,323 | | | | 1,655 | |
| Organizational costs | | - | | | | - | | | - | | | | - | | | | 123 | |
| Merger expenses | | - | | | | - | | | 747 | | | | - | | | | - | |
| Intangible amortization | | 381 | | | | 260 | | | 557 | | | | 257 | | | | 263 | |
| Other | | 8,201 | | | | 7,290 | | | 7,556 | | | | 6,069 | | | | 5,671 | |
| | 35,964 | | | | 34,621 | | | 34,274 | | | | 28,921 | | | | 26,939 | |
Income before income taxes | | 3,057 | | | | 16,183 | | | 11,793 | | | | 17,355 | | | | 13,751 | |
| Income tax expense | | 614 | | | | 5,100 | | | 3,847 | | | | 5,952 | | | | 4,744 | |
| Net income | $ | 2,443 | | | $ | 11,083 | | $ | 7,946 | | | $ | 11,403 | | | $ | 9,007 | |
| | | | | | | | | |
Diluted earnings per share | $ | 0.08 | | | $ | 0.35 | | $ | 0.25 | | | $ | 0.39 | | | $ | 0.31 | |
| Western Alliance Bancorporation and Subsidiaries |
| Five Quarter Condensed Consolidated Balance Sheets |
| Unaudited | | | | | |
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, |
| ($ in millions) | 2007 | 2007 | 2007 | 2007 | 2006 |
| Assets | | | | | |
Cash and due from banks | $ | 104.7 | | $ | 128.9 | | $ | 122.9 | | $ | 129.7 | | $ | 143.7 | |
| Federal funds sold | | 11.0 | | | 37.6 | | | 73.0 | | | 166.8 | | | 121.2 | |
Cash and cash equivalents | | 115.7 | | | 166.5 | | | 195.9 | | | 296.5 | | | 264.9 | |
| | | | | |
| Securities | | 736.4 | | | 788.4 | | | 685.6 | | | 630.9 | | | 542.0 | |
Gross loans, including net deferred loan fees: | | | | | |
Construction and land development | | 806.1 | | | 801.7 | | | 765.4 | | | 757.5 | | | 715.5 | |
Commercial real estate | | 1,515.2 | | | 1,484.1 | | | 1,437.9 | | | 1,420.6 | | | 1,232.3 | |
Residential real estate | | 477.6 | | | 466.6 | | | 436.6 | | | 403.7 | | | 384.1 | |
Commercial and industrial | | 784.4 | | | 752.1 | | | 709.2 | | | 722.6 | | | 645.5 | |
| Consumer | | 58.4 | | | 50.0 | | | 46.8 | | | 38.2 | | | 29.6 | |
Net deferred loan fees | | (8.7 | ) | | (8.0 | ) | | (7.0 | ) | | (6.6 | ) | | (3.7 | ) |
| | 3,633.0 | | | 3,546.5 | | | 3,388.9 | | | 3,336.0 | | | 3,003.3 | |
Less: Allowance for loan losses | | (49.3 | ) | | (39.9 | ) | | (36.9 | ) | | (37.5 | ) | | (33.6 | ) |
| Loans, net | | 3,583.7 | | | 3,506.6 | | | 3,352.0 | | | 3,298.5 | | | 2,969.7 | |
Premises and equipment, net | | 143.4 | | | 138.4 | | | 130.3 | | | 125.6 | | | 99.9 | |
Bank owned life insurance | | 88.1 | | | 87.1 | | | 86.2 | | | 85.2 | | | 82.1 | |
Goodwill and other intangibles | | 242.2 | | | 243.1 | | | 237.4 | | | 237.4 | | | 147.5 | |
| Other assets | | 106.5 | | | 73.3 | | | 59.4 | | | 53.5 | | | 63.5 | |
| Total assets | $ | 5,016.0 | | $ | 5,003.4 | | $ | 4,746.8 | | $ | 4,727.6 | | $ | 4,169.6 | |
| | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Five Quarter Condensed Consolidated Balance Sheets (continued) |
| | | | | |
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, |
| ($ in millions) | 2007 | 2007 | 2007 | 2007 | 2006 |
| Liabilities and Stockholders' Equity | | | | | |
| Liabilities | | | | | |
Non-interest bearing demand deposits | $ | 1,007.0 | | $ | 1,112.1 | | $ | 1,160.5 | | $ | 1,243.0 | | $ | 1,154.3 | |
| Interest bearing deposits: | | | | | |
| Demand | | 264.6 | | | 259.2 | | | 263.8 | | | 268.7 | | | 246.3 | |
Savings and money market | | 1,558.8 | | | 1,710.8 | | | 1,684.7 | | | 1,648.1 | | | 1,407.9 | |
Time, $100 and over | | 650.0 | | | 641.0 | | | 634.8 | | | 610.8 | | | 524.9 | |
| Other time | | 65.8 | | | 69.6 | | | 72.0 | | | 78.5 | | | 67.0 | |
| | 3,546.2 | | | 3,792.7 | | | 3,815.8 | | | 3,849.1 | | | 3,400.4 | |
Customer repurchase agreements | | 275.0 | | | 204.1 | | | 195.7 | | | 176.0 | | | 170.7 | |
Total customer funds | | 3,821.2 | | | 3,996.8 | | | 4,011.5 | | | 4,025.1 | | | 3,571.1 | |
| Borrowings | | 544.7 | | | 356.4 | | | 90.9 | | | 56.6 | | | 69.0 | |
Junior subordinated and subordinated debt | | 122.2 | | | 113.7 | | | 110.2 | | | 110.4 | | | 101.9 | |
Accrued interest payable and other liabilities | | 26.3 | | | 20.6 | | | 14.8 | | | 24.3 | | | 19.0 | |
| Total liabilities | | 4,514.3 | | | 4,487.5 | | | 4,227.4 | | | 4,216.4 | | | 3,761.0 | |
| Stockholders' Equity | | | | | |
Common stock and additional paid-in capital | | 378.0 | | | 379.2 | | | 383.8 | | | 381.2 | | | 287.5 | |
| Retained earnings | | 152.3 | | | 149.8 | | | 138.8 | | | 130.8 | | | 126.2 | |
Accumulated other comprehensive loss | | (28.7 | ) | | (13.1 | ) | | (3.2 | ) | | (0.8 | ) | | (5.1 | ) |
Total stockholders' equity | | 501.7 | | | 515.9 | | | 519.4 | | | 511.2 | | | 408.6 | |
Total liabilities and stockholders' equity | $ | 5,016.0 | | $ | 5,003.4 | | $ | 4,746.8 | | $ | 4,727.6 | | $ | 4,169.6 | |
| Western Alliance Bancorporation and Subsidiaries |
| Changes in the Allowance For Loan Losses |
| Unaudited | | | | | | | | | | |
| | Quarter Ended |
| | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, |
| (in thousands) | | 2007 | | 2007 | | 2007 | | 2007 | | 2006 |
| | | | | | | | | | |
Balance, beginning of period | | $ | 39,911 | | | $ | 36,946 | | | $ | 37,519 | | | $ | 33,551 | | | $ | 33,110 | |
| Acquisitions | | | - | | | | (370 | ) | | | 83 | | | | 3,706 | | | | - | |
Provisions charged to operating expenses | | | 13,881 | | | | 3,925 | | | | 2,012 | | | | 441 | | | | 709 | |
Recoveries of loans previously charged-off: | | | | | | | | | | |
Construction and land development | | | - | | | | - | | | | - | | | | - | | | | - | |
| Commercial real estate | | | - | | | | - | | | | - | | | | - | | | | - | |
| Residential real estate | | | - | | | | - | | | | - | | | | - | | | | - | |
| Commercial and industrial | | | 45 | | | | 14 | | | | 83 | | | | 71 | | | | 81 | |
| Consumer | | | 20 | | | | 12 | | | | 9 | | | | 8 | | | | 51 | |
| Total recoveries | | | 65 | | | | 26 | | | | 92 | | | | 79 | | | | 132 | |
| Loans charged-off: | | | | | | | | | | |
Construction and land development | | | 2,361 | | | | - | | | | - | | | | - | | | | 64 | |
| Commercial real estate | | | - | | | | - | | | | - | | | | - | | | | - | |
| Residential real estate | | | 49 | | | | - | | | | - | | | | - | | | | - | |
| Commercial and industrial | | | 2,023 | | | | 463 | | | | 2,727 | | | | 91 | | | | 198 | |
| Consumer | | | 119 | | | | 153 | | | | 33 | | | | 167 | | | | 138 | |
| Total charged-off | | | 4,552 | | | | 616 | | | | 2,760 | | | | 258 | | | | 400 | |
| Net charge-offs | | | 4,487 | | | | 590 | | | | 2,668 | | | | 179 | | | | 268 | |
| Balance, end of period | | $ | 49,305 | | | $ | 39,911 | | | $ | 36,946 | | | $ | 37,519 | | | $ | 33,551 | |
| | | | | | | | | | |
| Net charge-offs (annualized) to average loans outstanding | | 0.49 | % | | | 0.07 | % | | | 0.31 | % | | | 0.02 | % | | | 0.04 | % |
Allowance for loan losses to gross loans | | | 1.36 | | | | 1.13 | | | | 1.09 | | | | 1.12 | | | | 1.12 | |
| Non-accrual loans | | $ | 18,441 | | | $ | 16,271 | | | $ | 717 | | | $ | 1,775 | | | $ | 1,417 | |
Other impaired loans, acquired through merger | | | 2,760 | | | | 2,772 | | | | 816 | | | | 827 | | | | 839 | |
| Other real estate owned | | | 3,412 | | | | 149 | | | | - | | | | - | | | | - | |
Loans past due 30 to 89 days, still accruing | | | 11,879 | | | | 5,012 | | | | 26,716 | | | | 11,447 | | | | 6,795 | |
Loans past due 90 days, still accruing | | | 2,409 | | | | 18 | | | | 6,431 | | | | 331 | | | | 794 | |
Western Alliance Bancorporation and Subsidiaries |
| | | | | |
Average Balances, Yields and Rates Paid |
Unaudited | | | | | |
| | Three Months Ended December 31, |
| | | 2007 | | 2006 |
| | | | | | | | |
| | Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost |
| Earning Assets | (in millions) | (in thousands) | | | (in millions) | (in thousands) | |
| Securities (1) | $ | 785.1 | | $ | 11,494 | 5.96 | % | | $ | 584.2 | | $ | 6,805 | 4.72 | % |
| Federal funds sold | | 19.1 | | | 245 | 5.09 | % | | | 45.5 | | | 600 | 5.23 | % |
| Loans (1) | | 3,633.5 | | | 69,201 | 7.56 | % | | | 3,014.0 | | | 59,526 | 7.84 | % |
| Restricted stock | | 24.4 | | | 250 | 4.06 | % | | | 18.0 | | | 232 | 5.11 | % |
| Total earnings assets | | 4,462.1 | | | 81,190 | 7.25 | % | | | 3,661.7 | | | 67,163 | 7.29 | % |
| Non-earning Assets | | | | | | | |
Cash and due from banks | | 104.7 | | | | | | 104.4 | | | |
Allowance for loan losses | | (41.2 | ) | | | | | (33.2 | ) | | |
Bank-owned life insurance | | 87.5 | | | | | | 69.5 | | | |
| Other assets | | 438.7 | | | | | | 291.1 | | | |
| Total assets | $ | 5,051.8 | | | | | $ | 4,093.5 | | | |
| Interest Bearing Liabilities | | | | | | | |
| Sources of Funds | | | | | | | |
| Interest-bearing deposits: | | | | | | | |
Interest-bearing checking | $ | 255.5 | | | 1,458 | 2.26 | % | | $ | 248.5 | | | 1,650 | 2.63 | % |
Savings and money market | | 1,648.9 | | | 13,872 | 3.34 | % | | | 1,424.7 | | | 13,278 | 3.70 | % |
| Time deposits | | 713.2 | | | 8,522 | 4.74 | % | | | 552.7 | | | 6,356 | 4.56 | % |
| | | 2,617.6 | | | 23,852 | 3.62 | % | | | 2,225.9 | | | 21,284 | 3.79 | % |
| Borrowings | | 751.7 | | | 8,698 | 4.59 | % | | | 320.8 | | | 3,743 | 4.63 | % |
Junior subordinated and subordinated debt | | 116.1 | | | 2,207 | 7.54 | % | | | 82.9 | | | 1,561 | 7.47 | % |
Total interest-bearing liabilities | | 3,485.4 | | | 34,757 | 3.96 | % | | | 2,629.6 | | | 26,588 | 4.01 | % |
Non-interest Bearing Liabilities | | | | | | |
Non-interest bearing demand deposits | | 1,022.1 | | | | | | 1,042.2 | | | |
| Other liabilities | | 24.1 | | | | | | 21.9 | | | |
| Stockholders’ equity | | 520.2 | | | | | | 399.8 | | | |
Total liabilities and stockholders' equity | | | | | | | |
| $ | 5,051.8 | | | | | $ | 4,093.5 | | | |
Net interest income and margin | | $ | 46,433 | 4.16 | % | | | $ | 40,575 | 4.41 | % |
| Net interest spread | | | 3.29 | % | | | | 3.28 | % |
| | | | | | | | |
| (1) Yields on loans and securities have been adjusted to a tax equivalent basis. |
| Western Alliance Bancorporation and Subsidiaries |
| | | | | | | | | |
| Operating Segment Results |
| Unaudited | Bank of Nevada | Alliance Bank of Arizona | Torrey Pines Bank | Alta Alliance Bank | First Independent Bank | Other | Intersegment Eliminations | | Consolidated Company |
| |
| ($ in millions) | |
| At Dec. 31, 2007: | | | | | | | | | |
| Assets | $ | 3,041.3 | | $ | 822.6 | | $ | 759.5 | | $ | 91.0 | | $ | 549.9 | | $ | 24.7 | | $ | (273.0 | ) | | $ | 5,016.0 | |
Gross loans and deferred fees | | 2,215.7 | | | 584.2 | | | 515.4 | | | 38.5 | | | 322.2 | | | - | | | (43.0 | ) | | $ | 3,633.0 | |
Less: Allowance for loan losses | | (33.0 | ) | | (6.8 | ) | | (5.1 | ) | | (0.4 | ) | | (4.0 | ) | | - | | | - | | | | (49.3 | ) |
| Net loans | | 2,182.7 | | | 577.4 | | | 510.3 | | | 38.1 | | | 318.2 | | | - | | | (43.0 | ) | | | 3,583.7 | |
| Deposits | | 1,979.4 | | | 613.1 | | | 470.4 | | | 68.7 | | | 420.1 | | | - | | | (5.5 | ) | | | 3,546.2 | |
Stockholders' equity | | 320.4 | | | 54.5 | | | 45.6 | | | 22.1 | | | 120.5 | | | (61.5 | ) | | - | | | | 501.6 | |
| | | | | | | | | |
Number of branches | | 15 | | | 11 | | | 7 | | | 2 | | | 4 | | | - | | | - | | | | 39 | |
Number of full-time equivalent employees | | 505 | | | 139 | | | 132 | | | 32 | | | 114 | | | 70 | | | - | | | | 992 | |
| | | | | | | | | |
| (in thousands) | | | | | | | | | |
Three Months Ended Dec. 31, 2007: | | | | | | | | | |
Net interest income | $ | 27,998 | | $ | 7,065 | | $ | 6,932 | | $ | 709 | | $ | 5,055 | | $ | (1,326 | ) | $ | - | | | $ | 46,433 | |
Provision for loan losses | | 10,500 | | | 2,729 | | | 279 | | | 73 | | | 300 | | | - | | | - | | | | 13,881 | |
Net interest income after provision for loan losses | | 17,498 | | | 4,336 | | | 6,653 | | | 636 | | | 4,755 | | | (1,326 | ) | | - | | | | 32,552 | |
Securities gains (losses) and other valuation changes | | (5,403 | ) | | 334 | | | 409 | | | - | | | - | | | 4,257 | | | - | | | | (403 | ) |
Noninterest income | | 2,284 | | | 1,301 | | | 409 | | | 100 | | | 265 | | | 3,154 | | | (641 | ) | | | 6,872 | |
Noninterest expense | | (15,654 | ) | | (5,705 | ) | | (6,653 | ) | | (1,344 | ) | | (2,960 | ) | | (4,289 | ) | | 641 | | | | (35,964 | ) |
Income (loss) before income taxes | | (1,275 | ) | | 266 | | | 818 | | | (608 | ) | | 2,060 | | | 1,796 | | | - | | | | 3,057 | |
Income tax expense (benefit) | | (760 | ) | | 15 | | | 350 | | | (245 | ) | | 656 | | | 598 | | | - | | | | 614 | |
| Net income (loss) | $ | (515 | ) | $ | 251 | | $ | 468 | | $ | (363 | ) | $ | 1,404 | | $ | 1,198 | | $ | - | | | $ | 2,443 | |
| (in thousands) | | | | | | | | | |
| Year Ended Dec. 31, 2007: | | | | | | | | | |
Net interest income | $ | 113,987 | | $ | 28,260 | | $ | 25,360 | | $ | 2,127 | | $ | 15,536 | | $ | (5,381 | ) | $ | - | | | $ | 179,889 | |
Provision for loan losses | | 15,510 | | | 3,391 | | | 763 | | | 296 | | | 299 | | | - | | | - | | | | 20,259 | |
Net interest income after provision for loan losses | | 98,477 | | | 24,869 | | | 24,597 | | | 1,831 | | | 15,237 | | | (5,381 | ) | | - | | | | 159,630 | |
Securities gains (losses) and other valuation changes | | (6,786 | ) | | 88 | | | 310 | | | - | | | - | | | 4,546 | | | - | | | | (1,842 | ) |
Noninterest income | | 10,753 | | | 2,859 | | | 1,699 | | | 371 | | | 717 | | | 9,778 | | | (1,797 | ) | | | 24,380 | |
Noninterest expense | | (62,779 | ) | | (22,981 | ) | | (20,360 | ) | | (5,491 | ) | | (9,378 | ) | | (14,588 | ) | | 1,797 | | | | (133,780 | ) |
Income (loss) before income taxes | | 39,665 | | | 4,835 | | | 6,246 | | | (3,289 | ) | | 6,576 | | | (5,645 | ) | | - | | | | 48,388 | |
Income tax expense (benefit) | | 12,372 | | | 1,681 | | | 2,562 | | | (1,318 | ) | | 2,172 | | | (1,956 | ) | | - | | | | 15,513 | |
| Net income (loss) | $ | 27,293 | | $ | 3,154 | | $ | 3,684 | | $ | (1,971 | ) | $ | 4,404 | | $ | (3,689 | ) | $ | - | | | $ | 32,875 | |
| Western Alliance Bancorporation and Subsidiaries |
| | | | | | | | |
| Operating Segment Results |
| ($ in millions) | Bank of Nevada | Alliance Bank of Arizona | Torrey Pines Bank | Alta Alliance Bank | Other | Intersegment Eliminations | | Consolidated Company |
| At Dec. 31, 2006: | | | | | | | | |
| Assets | $ | 2,904.1 | | $ | 643.3 | | $ | 581.6 | | $ | 56.2 | | $ | 481.3 | | $ | (496.9 | ) | | $ | 4,169.6 | |
Gross loans and deferred fees | | 2,094.5 | | | 506.7 | | | 414.4 | | | 7.7 | | | - | | | (20.0 | ) | | | 3,003.3 | |
Less: Allowance for loan losses | | (23.2 | ) | | (5.7 | ) | | (4.6 | ) | | (0.1 | ) | | - | | | - | | | | (33.6 | ) |
| Net loans | | 2,071.3 | | | 501.0 | | | 409.8 | | | 7.6 | | | - | | | (20.0 | ) | | | 2,969.7 | |
| Deposits | | 2,326.4 | | | 552.9 | | | 491.6 | | | 31.3 | | | - | | | (1.8 | ) | | | 3,400.4 | |
Stockholders' equity | | 336.2 | | | 51.5 | | | 39.4 | | | 24.1 | | | 416.5 | | | (459.1 | ) | | | 408.6 | |
| | | | | | | | |
Number of branches | | 15 | | | 9 | | | 6 | | | 1 | | | - | | | - | | | | 31 | |
Number of full-time equivalent employees | | 472 | | | 135 | | | 110 | | | 9 | | | 59 | | | - | | | | 785 | |
| | | | | | | | |
| (in thousands) | | | | | | | | |
Three Months Ended December 31, 2006: | | | | | | | | |
Net interest income | $ | 29,230 | | $ | 6,327 | | $ | 6,005 | | $ | 226 | | $ | (1,213 | ) | $ | - | | | $ | 40,575 | |
Provision for loan losses | | 740 | | | (243 | ) | | 131 | | | 81 | | | - | | | - | | | | 709 | |
Net interest income after provision for loan losses | | 28,490 | | | 6,570 | | | 5,874 | | | 145 | | | (1,213 | ) | | - | | | | 39,866 | |
Loss from sale of securities | | (3,374 | ) | | (908 | ) | | (154 | ) | | - | | | - | | | - | | | | (4,436 | ) |
Noninterest income | | 2,360 | | | 884 | | | 382 | | | 45 | | | 12,198 | | | (10,609 | ) | | | 5,260 | |
Noninterest expense | | (13,987 | ) | | (5,109 | ) | | (4,378 | ) | | (1,859 | ) | | (2,056 | ) | | 450 | | | | (26,939 | ) |
Income (loss) before income taxes | | 13,489 | | | 1,437 | | | 1,724 | | | (1,669 | ) | | 8,929 | | | (10,159 | ) | | | 13,751 | |
Income tax expense (benefit) | | 4,496 | | | 559 | | | 718 | | | (659 | ) | | (370 | ) | | - | | | | 4,744 | |
| Net income (loss) | $ | 8,993 | | $ | 878 | | $ | 1,006 | | $ | (1,010 | ) | $ | 9,299 | | $ | (10,159 | ) | | $ | 9,007 | |
| (in thousands) | | | | | | | | |
| Year Ended Dec. 31, 2006: | | | | | | | | |
Net interest income | $ | 105,127 | | $ | 24,615 | | $ | 22,397 | | $ | 226 | | $ | (3,580 | ) | $ | 3 | | | $ | 148,788 | |
Provision for loan losses | | 3,134 | | | 340 | | | 1,105 | | | 81 | | | - | | | - | | | | 4,660 | |
Net interest income after provision for loan losses | | 101,993 | | | 24,275 | | | 21,292 | | | 145 | | | (3,580 | ) | | 3 | | | | 144,128 | |
Loss from sale of securities | | (3,374 | ) | | (908 | ) | | (154 | ) | | - | | | - | | | - | | | | (4,436 | ) |
Noninterest income | | 7,979 | | | 2,523 | | | 1,479 | | | 45 | | | 52,639 | | | (46,795 | ) | | | 17,870 | |
Noninterest expense | | (50,867 | ) | | (19,128 | ) | | (15,005 | ) | | (1,859 | ) | | (10,793 | ) | | 1,566 | | | | (96,086 | ) |
Income (loss) before income taxes | | 55,731 | | | 6,762 | | | 7,612 | | | (1,669 | ) | | 38,266 | | | (45,226 | ) | | | 61,476 | |
Income tax expense (benefit) | | 18,668 | | | 2,563 | | | 3,088 | | | (659 | ) | | (2,073 | ) | | - | | | | 21,587 | |
| Net income (loss) | $ | 37,063 | | $ | 4,199 | | $ | 4,524 | | $ | (1,010 | ) | $ | 40,339 | | $ | (45,226 | ) | | $ | 39,889 | |
CONTACT:
Western Alliance Bancorporation
Robert Sarver, 602-952-5445 (Media)
Dale Gibbons, 702-248-4200 (Investor)
