Exhibit 99.1
Western Alliance Reports Results for the Fourth Quarter 2008
LAS VEGAS--(BUSINESS WIRE)--January 29, 2009--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for 2008 and the fourth quarter 2008.
2008 Highlights:
- Raised $220 million in equity through two common stock capital raises totaling $80 million and a preferred stock capital raise through the United States Treasury Department Troubled Asset Relief Program’s (TARP) Capital Purchase Program of $140 million, bringing total risk-based regulatory capital to $576 million, increasing the total risk-based capital ratio to 12.2% at December 31, 2008 from 10.3% at December 31, 2007
- Grew loans to $4.10 billion at December 31, 2008, up 12.7% or $463 million from year-end 2007
- Grew customer funds (sum of deposits and customer repurchase agreements) to $3.92 billion at December 31, 2008, up 2.6% or $100 million from year-end 2007
- Maintained an interest margin of 4.28%, well in excess of industry norms
- Held non-accrual loans and other real estate to 1.39% of total assets, among the best in our market
- Achieved net revenue (sum of net interest income and non-interest income, excluding securities impairment charges and net mark-to-market gains) of $223.8 million, up 9.6% from $204.3 million in 2007
- Incurred a net operating loss of $2.1 million (excluding securities impairment charges, net mark-to-market gains and non-cash goodwill impairment charges), down from net operating income of $34.1 million in 2007
- Reported diluted net operating loss per share of $0.06 (excluding securities impairment charges, net mark-to-market gains and non-cash goodwill impairment charges), down from net operating income per share of $1.10 for 2007
- Wrote down the Company’s entire CDO portfolio to 1% of its $121.3 million par value
- Incurred a net loss of $236.5 million, including securities impairment charges of $99.5 million (net of tax), provision for loan losses of $43.4 million (net of tax) and non-cash goodwill impairment charges of $138.8 million
- Reported diluted loss per share of $7.28, including securities impairment charges of $3.05 per diluted share (net of tax), loan loss provision expense of $1.33 per diluted share (net of tax) and non-cash goodwill impairment charges of $4.25 per diluted share
Fourth Quarter 2008 Highlights:
- Incurred a net operating loss of $12.2 million (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) in the fourth quarter 2008, down $13.9 million from the third quarter 2008 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge)
- Reported diluted net operating loss per share of $0.32 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge), down $0.37 from net operating income per share of $0.05 for third quarter 2008 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge)
- Incurred a net loss of $148.3 million, including securities impairment charges of $75.3 million (net of tax), provision for loan losses of $20.4 million (net of tax) and a non-cash goodwill impairment charge of $59.6 million
- Reported diluted loss per share of $3.94, including securities impairment charges of $1.99 per diluted share (net of tax), provision for loan losses of $0.54 per diluted share (net of tax) and a non-cash goodwill impairment charge of $1.57 per diluted share
- Increased interest margin from 4.16% in the fourth quarter 2007 to 4.30% in the fourth quarter 2008
- Reported net revenue (sum of net interest income and non-interest income, excluding securities impairment charges and net mark-to-market gains) of $56.3 million, down 1.7% from $57.3 million in the third quarter 2008 and up 5.7% from $53.3 million for the fourth quarter 2007
- Grew loans to $4.10 billion at December 31, 2008, up $149 million from September 30, 2008
- Grew customer funds to $3.92 billion, up $177 million from last quarter, including deposits of $3.60 billion at December 31, 2008, up 4.4% or $152 million from September 30, 2008 and customer repurchase agreements of $321 million, up 8.7% or $25 million from September 30, 2008
Financial Performance
Western Alliance Bancorporation reported a net operating loss of $12.2 million, excluding securities impairment charges of $75.3 million (net of tax), net mark-to-market gains of $3.3 million and a non-cash goodwill impairment charge of $59.6 million in the fourth quarter 2008, down $13.9 million from the third quarter 2008.
Net loss of $148.3 million for the fourth quarter 2008, which increased $53.6 million from a net loss of $94.7 million for the third quarter 2008. Fourth quarter results include securities impairment charges of $75.3 million (net of tax) and an estimated non-cash goodwill impairment charge of $59.6 million, and the third quarter results include a non-cash goodwill impairment charge of $79.2 million and securities impairment charges of $20.9 million (net of tax). Given the rapidly changing market conditions, the Company continues to evaluate its remaining securities and goodwill for impairment. The fourth quarter also includes a $2.8 million after-tax loss ($0.07 per share) from PartnersFirst, the Company’s affinity credit card initiative.
Gross loans grew $149 million to $4.10 billion at December 31, 2008 from September 30, 2008 and increased $463 million from December 31, 2007.
Customer funds increased $177 million to $3.92 billion at December 31, 2008 from September 30, 2008, comprised of a $152 million increase in deposits and a $25 million increase in customer repurchase agreements. From December 31, 2007, customer funds increased $100 million, comprised of a $54 million increase in deposits and a $46 million increase in customer repurchase agreements. Non-interest bearing title company deposits declined $59 million to $85 million during the year ended December 31, 2008 and decreased $53 million from September 30, 2008.
“This past year has been very challenging for our Company due to unprecedented turmoil in the financial industry and housing markets. Despite this difficult operating environment, we succeeded in substantially boosting our capital position, maintaining strong margins, and addressing our most troubled asset class by writing off virtually our entire trust preferred CDO portfolio,” said Robert Sarver, Chairman, President and Chief Executive Officer of Western Alliance.
“Looking forward to 2009, WAL is focused on actively managing credit risk and aggressively addressing nonperforming assets, continuing to recruit local bankers with a strong customer following and increasing our deposit market share, as we take advantage of the economic dislocations and integration risk assumed by a number of our competitors. However, we recognize the U.S. economy will take some time to recover from the current recession.”
Income Statement
Net interest income increased 8.1 percent to $50.2 million in the fourth quarter 2008 from $46.4 million in the fourth quarter 2007. The net interest margin in the fourth quarter 2008 was 4.30 percent, compared to 4.36 percent in the third quarter 2008. The net interest margin was 4.16 percent in the fourth quarter 2007.
The provision for loan losses was $32.3 million for the fourth quarter 2008 compared to $14.7 million for the third quarter 2008 and $13.9 million for the fourth quarter 2007. Non-accrual loans and other real estate owned were $72.9 million or 1.39 percent of total assets at December 31, 2008, compared with $21.3 million or 0.42 percent of total assets at December 31, 2007. Net loan charge-offs in the fourth quarter 2008 were $14.5 million or 1.45 percent of average loans (annualized), compared to net charge-offs of $4.5 million or 0.49 percent of average loans (annualized) for the same period in 2007. Loans past due 30-89 days totaled $45.2 million at quarter end, up from $35.0 million at September 30, 2008. Loans past due 90 days and still accruing totaled $12.3 million at quarter end, up from $0.7 million at September 30, 2008.
During the fourth quarter 2008, the Company determined that its portfolio of collateralized debt obligations (“CDOs”) was other-than-temporarily impaired under generally accepted accounting principles due to the continued expected weakness of the U.S. economy, the decline in the market value of these CDOs and the increase in deferrals and defaults by the issuers of the underlying securities. These CDOs represent interests in various trusts, each of which is collateralized with trust preferred debt issued by other financial institutions. This $108 million portfolio has been written down to $1.4 million, which approximates market value. However, $77 million of these CDOs were current in payments of interest as of December 31, 2008. A significant majority of the security impairment charges were from this CDO portfolio.
Non-interest income, excluding changes in fair value of financial instruments measured at fair value, was $6.1 million for the fourth quarter 2008, down 10.6 percent from $6.9 million for the same period in 2007. This decrease was the result of declining assets under management due to stock market deterioration. For the third quarter 2008, non-interest income was $7.4 million.
Net revenue (sum of net interest income and non-interest income, excluding securities impairment charges and net mark-to-market gains) was $56.3 million for the fourth quarter 2008, up 5.7 percent from $53.3 million for the fourth quarter 2007. For the third quarter 2008, net revenue was $57.3 million.
Non-interest expense (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) was $43.6 million for the fourth quarter 2008, up 21.3 percent from $36.0 million for the same period in 2007. For the third quarter 2008, non-interest expense was $40.6 million, excluding a non-cash goodwill impairment charge of $79.2 million. We had 1,020 full-time equivalent (FTE) employees and 41 banking offices on December 31, 2008, compared to 1,017 and 41, respectively, on September 30, 2008 and 992 and 39, respectively, on December 31, 2007. During the fourth quarter 2008, we hired 11 team members to serve the Los Angeles market.
Net income decreased $150.8 million to a net loss of $148.3 million for the fourth quarter 2008 compared with net income of $2.4 million for the same period last year. Net loss was $94.7 million for the third quarter 2008. Diluted loss per share was $3.94 compared with a $2.84 diluted loss per share for the third quarter 2008 and diluted earnings per share of $0.08 for the fourth quarter 2007. Average diluted shares increased 24.8 percent to 39.1 million for the fourth quarter 2008 compared with 31.3 million for the fourth quarter 2007.
For 2008, net income decreased $269.3 million to a net loss of $236.5 million from net income of $32.9 million for 2007. Diluted loss per share was $7.28 compared to earnings per share of $1.06 in 2007. Average diluted shares increased 8.0 percent to 33.5 million compared to 31.0 million last year.
Balance Sheet
Gross loans totaled $4.10 billion at December 31, 2008, an increase of 3.8 percent from September 30, 2008 and 12.7 percent from $3.63 billion at December 31, 2007. At December 31, 2008 the allowance for loan losses was 1.83 percent of gross loans, compared to 1.45 percent at September 30, 2008 and 1.36 percent at December 31, 2007.
Customer funds totaled $3.92 billion at December 31, 2008, an increase of $177 million from September 30, 2008 and an increase of $100 million from $3.82 billion at December 31, 2007.
Non-interest bearing deposits, which include title company deposits for which the Company incurs non-interest expense for the benefit of the depositor, comprised 28.3 percent of total deposits at December 31, 2008. As of December 31, 2008, non-interest bearing deposits from title companies were 2.4 percent of total deposits, compared to 4.0 percent at September 30, 2008, and 4.1 percent at December 31, 2007.
At December 31, 2008 the company’s loan to deposit ratio was 113.8 percent compared with 102.4 percent one year earlier. Borrowings, including non-relationship brokered deposits, totaled $697 million at December 31, 2008, up $152 million from $545 million one year earlier. The majority of these borrowings represent overnight advances from the Federal Home Loan Bank of San Francisco.
Stockholders’ equity increased $17 million from September 30, 2008 to $495 million at December 31, 2008, due to capital raised through preferred stock issued to the United States Treasury, largely offset by securities impairment charges and a non-cash goodwill impairment charge. Our accumulated other comprehensive loss has increased only marginally since December 2007 due mainly to the Company’s decision to recognize impairment charges caused by widening of credit spreads, which negatively affected the market values of our trust preferred CDO and adjustable rate preferred stock portfolios, decreasing our other comprehensive loss by $24.6 million to $27.5 million for the quarter ended December 31, 2008. At December 31, 2008 tangible equity was 7.7 percent of tangible assets and total risk-based capital was 12.2 percent of risk-weighted assets.
Total assets increased 4.5 percent to $5.24 billion at December 31, 2008 from $5.02 billion at December 31, 2007.
Operating Unit Highlights
Our Nevada banking operations, which include Bank of Nevada and First Independent Bank of Nevada, reported loan growth of $25 million during the fourth quarter 2008 and $121 million during the full year to $2.66 billion at December 31, 2008. Customer funds decreased $49 million and increased $211 million to $2.34 billion during the same periods, respectively. Net operating loss for our Nevada banks was $4.3 million (excluding $6.2 million mark-to-market gains and securities impairment charges of $55.4 million (net of tax) and a non-cash goodwill impairment charge of $59.6 million) in the fourth quarter 2008 compared with net operating income of $1.3 million (excluding securities impairment charges of $1.9 million, net of tax) during the fourth quarter 2007. Net loss for our Nevada banks was $122.8 million during the fourth quarter 2008 compared with net income of $0.9 million during the fourth quarter 2007.
Our California banking operations, which include Torrey Pines Bank and Alta Alliance Bank, reported loan growth of $63 million during the fourth quarter 2008 and $220 million during the full year to $774 million. Customer funds increased $160 million and $228 million to $838 million during the same periods, respectively. Net operating income for our California banks was $0.2 million (excluding $3.0 million mark-to-market gains and securities impairment charges of $11.2 million, net of tax) in the fourth quarter 2008. Net loss for our California banks was $12.3 million during the fourth quarter 2008 compared with net income of $1.4 million during the fourth quarter 2007.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported loan growth of $56 million during the fourth quarter 2008 and an increase of $94 million during the full year to $678 million. Customer funds increased $48 million and $80 million to $744 million during the same periods, respectively. Net operating loss for our Arizona bank was $2.3 million (excluding $0.8 million mark-to-market gains and securities impairment charges of $8.7 million, net of tax) in the fourth quarter 2008. Net loss for our Arizona bank was $10.7 million during the fourth quarter 2008 compared with net income of $0.3 million during the fourth quarter 2007.
The asset management business line, which includes Miller/Russell and Associates, Shine Investment Advisory Services and Premier Trust, had assets under management of $1.66 billion at December 31, 2008, down 28.1 percent from $2.31 billion at December 31, 2007, primarily due to valuation declines in equity securities. Assets under administration by the three entities decreased 27.1 percent from $2.51 billion at December 31, 2007 to $1.83 billion at December 31, 2008.
Our affinity credit card business line, PartnersFirst, launched 11 new affinity groups and opened 1,836 accounts during the fourth quarter 2008. Losses incurred by PartnersFirst for the quarter ended December 31, 2008 were $2.8 million.
Attached to this press release is summarized financial information for the quarter and year ended December 31, 2008.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its fourth quarter 2008 financial results at 10:00 a.m. ET on Friday, January 30, 2009. 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 30, until 9:00 a.m. ET February 6, by dialing 1-877-344-7529 using the pass code 427266.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “assume,” “intend,” ”believe,” “expect,” “estimate,” “plan,” “will,” “look forward,” and similar expressions are generally intended to identify forward-looking statements. 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: 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; other factors affecting the financial services industry generally or the banking industry in particular; and other factors described in our 2007 Form 10-K and documents subsequently filed by us with the Securities and Exchange Commission.
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 year | |||||||||||||||||||||||||||
| ended Dec. 31, | ended Dec. 31, | |||||||||||||||||||||||||||
| 2008 | 2007 | Change % | 2008 | 2007 | Change % | |||||||||||||||||||||||
Selected Income Statement Data: | ||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||
| Interest income | $ | 72,088 | $ | 81,190 | -11.2 | % | $ | 295,591 | $ | 305,822 | -3.3 | % | ||||||||||||||||
| Interest expense | 21,906 | 34,757 | -37.0 | 100,683 | 125,933 | -20.1 | ||||||||||||||||||||||
| Net interest income | 50,182 | 46,433 | 8.1 | 194,908 | 179,889 | 8.3 | ||||||||||||||||||||||
| Provision for loan losses | 32,262 | 13,881 | 132.4 | 68,189 | 20,259 | 236.6 | ||||||||||||||||||||||
| Net interest income after provision for loan losses | 17,920 | 32,552 | -44.9 | 126,719 | 159,630 | -20.6 | ||||||||||||||||||||||
Securities gains/(losses) and other valuation changes | (115,550 | ) | (403 | ) | 28,572.5 | (145,975 | ) | (1,842 | ) | 7,824.8 | ||||||||||||||||||
| Other non-interest income | 6,143 | 6,872 | -10.6 | 28,929 | 24,380 | 18.7 | ||||||||||||||||||||||
| Non-interest expense | 103,231 | 35,964 | 187.0 | 300,299 | 133,780 | 124.5 | ||||||||||||||||||||||
| Income (loss) before income taxes | (194,718 | ) | 3,057 | -6,469.6 | (290,626 | ) | 48,388 | -700.6 | ||||||||||||||||||||
| Income tax expense (benefit) | (46,409 | ) | 614 | -7,658.5 | (54,166 | ) | 15,513 | -449.2 | ||||||||||||||||||||
| Net income (loss) | $ | (148,309 | ) | $ | 2,443 | -6,170.8 | $ | (236,460 | ) | $ | 32,875 | -819.3 | ||||||||||||||||
| Memo: intangible asset amortization, net of tax | $ | 655 | $ | 381 | 71.8 | $ | 2,360 | $ | 1,455 | 62.2 | ||||||||||||||||||
| Diluted earnings (loss) per share | $ | (3.94 | ) | $ | 0.08 | -5,025.0 | $ | (7.28 | ) | $ | 1.06 | -786.8 | ||||||||||||||||
Non-GAAP Selected Income Statement Data: | ||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||
| Interest income | $ | 72,088 | $ | 81,190 | -11.2 | % | $ | 295,591 | $ | 305,822 | -3.3 | % | ||||||||||||||||
| Interest expense | 21,906 | 34,757 | -37.0 | 100,683 | 125,933 | -20.1 | ||||||||||||||||||||||
| Net interest income | 50,182 | 46,433 | 8.1 | 194,908 | 179,889 | 8.3 | ||||||||||||||||||||||
| Provision for loan losses | 32,262 | 13,881 | 132.4 | 68,189 | 20,259 | 236.6 | ||||||||||||||||||||||
| Net interest income after provision for loan losses | 17,920 | 32,552 | -44.9 | 126,719 | 159,630 | -20.6 | ||||||||||||||||||||||
| Other non-interest income | 6,143 | 6,872 | -10.6 | 28,929 | 24,380 | 18.7 | ||||||||||||||||||||||
| Non-interest expense, excluding goodwill impairment | 43,628 | 35,964 | 21.3 | 161,454 | 133,780 | 20.7 | ||||||||||||||||||||||
| Operating income (loss) before income taxes | (19,565 | ) | 3,460 | -665.5 | (5,806 | ) | 50,230 | -111.6 | ||||||||||||||||||||
| Income tax expense (benefit) | (7,319 | ) | 755 | -1,069.3 | (3,707 | ) | 16,158 | -122.9 | ||||||||||||||||||||
| Net operating income (loss) | $ | (12,246 | ) | $ | 2,705 | -552.7 | $ | (2,099 | ) | $ | 34,072 | -106.2 | ||||||||||||||||
| Memo: intangible asset amortization, net of tax | $ | 655 | $ | 381 | 71.8 | $ | 2,360 | $ | 1,455 | 62.2 | ||||||||||||||||||
| Diluted net operating income (loss) per share | $ | (0.32 | ) | $ | 0.09 | -473.8 | $ | (0.06 | ) | $ | 1.10 | -105.9 | ||||||||||||||||
| Common Share Data: | ||||||||||||||||||||||||||||
| Book value per share | 9.20 | 16.63 | -44.7 | % | ||||||||||||||||||||||||
| Tangible book value per share (net of tax) | 6.79 | 8.88 | -23.5 | |||||||||||||||||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||||||||||
| Basic | 37,939 | 29,520 | 28.5 | 32,652 | 28,918 | 12.9 | ||||||||||||||||||||||
| Diluted | 39,087 | 31,327 | 24.8 | 33,512 | 31,019 | 8.0 | ||||||||||||||||||||||
| Common shares outstanding | 38,601 | 30,157 | 28.0 | |||||||||||||||||||||||||
| Non-GAAP Measurements: | ||||||||||||||||||||||||||||
| Net operating return on average assets (1) | (0.93 | ) | % | 0.21 | % | -542.9 | % | (0.04 | ) | % | 0.73 | % | -105.5 | % | ||||||||||||||
Net operating cash return on average tangible assets (1) (2) | (0.90 | ) | 0.25 | -460.0 | 0.01 | 0.78 | -98.7 | |||||||||||||||||||||
Net operating return on average stockholders' equity (1) | (9.38 | ) | 2.06 | -555.3 | (0.41 | ) | 6.91 | -105.9 | ||||||||||||||||||||
Net operating cash return on average tangible stockholders' equity (1) (2) | (12.83 | ) | 4.44 | -389.0 | 0.09 | 8.87 | -99.0 | |||||||||||||||||||||
Net operating efficiency ratio - tax equivalent basis | 76.81 | 67.09 | 14.5 | 71.54 | 64.69 | 10.6 | ||||||||||||||||||||||
| (1) Annualized for the three and twelve-month periods ended December 31, 2008 and 2007. | ||||||||||||||||||||||||||||
| (2) Cash return is defined as net income before intangible asset amortization expense. | ||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
| Summary Consolidated Financial Data (continued) | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||
| At or for the three months | For the year | |||||||||||||||||||||||||||
| ended Dec. 31, | ended Dec. 31, | |||||||||||||||||||||||||||
| 2008 | 2007 | Change % | 2008 | 2007 | Change % | |||||||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||||||
| Net interest margin (1) | 4.30 | % | 4.16 | % | 3.4 | % | 4.28 | % | 4.40 | % | -2.7 | % | ||||||||||||||||
| Net interest spread | 3.85 | 3.29 | 17.0 | 3.75 | 3.37 | 11.3 | ||||||||||||||||||||||
| Loan to deposit ratio | 113.75 | 102.42 | 11.1 | |||||||||||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Total assets | $ | 5,243.7 | $ | 5,016.1 | 4.5 | % | ||||||||||||||||||||||
| Gross loans, including net deferred fees | 4,095.7 | 3,633.0 | 12.7 | |||||||||||||||||||||||||
| Securities | 567.8 | 736.2 | -22.9 | |||||||||||||||||||||||||
| Federal funds sold | 3.2 | 11.0 | -70.9 | |||||||||||||||||||||||||
| Customer funds | 3,921.7 | 3,822.0 | 2.6 | |||||||||||||||||||||||||
Borrowings | 637.1 | 544.7 | 17.0 | |||||||||||||||||||||||||
| Junior subordinated and subordinated debt | 103.0 | 122.2 | -15.7 | |||||||||||||||||||||||||
| Stockholders' equity | 494.7 | 501.5 | -1.4 | |||||||||||||||||||||||||
| Capital Ratios: | ||||||||||||||||||||||||||||
| Tangible equity | 7.7 | % | 5.4 | % | 42.6 | % | ||||||||||||||||||||||
| Tangible common equity | 5.0 | 5.4 | -7.4 | |||||||||||||||||||||||||
| Tier 1 leverage ratio | 8.9 | 7.4 | 20.3 | |||||||||||||||||||||||||
| Tier 1 risk-based capital | 9.7 | 7.9 | 22.8 | |||||||||||||||||||||||||
| Total risk-based capital | 12.2 | 10.3 | 18.4 | |||||||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||
| Net charge-offs to average loans outstanding (1) | 1.45 | % | 0.49 | % | 195.9 | % | 1.10 | % | 0.23 | % | 379.0 | % | ||||||||||||||||
| Non-accrual loans to gross loans | 1.42 | 0.49 | 189.8 | |||||||||||||||||||||||||
| Non-accrual loans and OREO to total assets | 1.39 | 0.42 | 231.0 | |||||||||||||||||||||||||
Loans past due 90 days and still accruing to total loans | 0.31 | 0.02 | 1,450.0 | |||||||||||||||||||||||||
| Allowance for loan losses to gross loans | 1.83 | 1.36 | 34.6 | |||||||||||||||||||||||||
| Allowance for loan losses to non-accrual loans | 128.34 | 275.86 | -53.5 | |||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| (1) Annualized for the three-month periods ended December 31, 2008 and 2007. | ||||||||||||||||||||||||||||
| (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) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Interest income on: | ||||||||||||||||
| Loans, including fees | $ | 64,030 | $ | 69,201 | $ | 257,528 | $ | 264,480 | ||||||||
| Securities | 8,011 | 11,744 | 37,741 | 39,698 | ||||||||||||
| Federal funds sold and other | 47 | 245 | 322 | 1,644 | ||||||||||||
| Total interest income | 72,088 | 81,190 | 295,591 | 305,822 | ||||||||||||
| Interest expense on: | ||||||||||||||||
| Deposits | 15,185 | 23,852 | 67,372 | 98,128 | ||||||||||||
| Borrowings | 4,834 | 8,698 | 26,054 | 20,189 | ||||||||||||
| Junior subordinated and subordinated debt | 1,887 | 2,207 | 7,257 | 7,616 | ||||||||||||
| Total interest expense | 21,906 | 34,757 | 100,683 | 125,933 | ||||||||||||
| Net interest income | 50,182 | 46,433 | 194,908 | 179,889 | ||||||||||||
| Provision for loan losses | 32,262 | 13,881 | 68,189 | 20,259 | ||||||||||||
| Net interest income after provision for loan losses | 17,920 | 32,552 | 126,719 | 159,630 | ||||||||||||
| Mark-to-market gains, net | 3,314 | 2,458 | 10,857 | 1,019 | ||||||||||||
| Securities impairment charges | (118,864 | ) | (2,861 | ) | (156,832 | ) | (2,861 | ) | ||||||||
| Other income: | ||||||||||||||||
| Trust and investment advisory services | 2,290 | 2,889 | 10,489 | 9,764 | ||||||||||||
| Service charges | 1,711 | 1,339 | 6,135 | 4,828 | ||||||||||||
| Bank owned life insurance | 673 | 913 | 2,639 | 3,763 | ||||||||||||
| Other | 1,469 | 1,731 | 9,666 | 6,025 | ||||||||||||
| 6,143 | 6,872 | 28,929 | 24,380 | |||||||||||||
| Other expense: | ||||||||||||||||
| Compensation | 23,086 | 20,172 | 88,349 | 76,582 | ||||||||||||
| Occupancy | 5,404 | 3,769 | 20,891 | 18,120 | ||||||||||||
| Customer service | 934 | 1,813 | 4,157 | 6,708 | ||||||||||||
| Merger expenses | - | - | - | 747 | ||||||||||||
| Intangible amortization | 1,007 | 381 | 3,631 | 1,455 | ||||||||||||
| Goodwill impairment | 59,603 | - | 138,845 | - | ||||||||||||
| Other | 13,197 | 9,829 | 44,426 | 30,168 | ||||||||||||
103,231 | 35,964 | 300,299 | 133,780 | |||||||||||||
| Income (loss) before income taxes | (194,718 | ) | 3,057 | (290,626 | ) | 48,388 | ||||||||||
| Income tax expense (benefit) | (46,409 | ) | 614 | (54,166 | ) | 15,513 | ||||||||||
| Net income (loss) | (148,309 | ) | 2,443 | (236,460 | ) |
| 32,875 | |||||||||
| Preferred stock dividends | 778 | - | 778 | - | ||||||||||||
| Net income (loss) available to common stockholders | $ | (149,087 | ) | $ | 2,443 | $ | (237,238 | ) | $ | 32,875 | ||||||
| Diluted earnings (loss) per share | $ | (3.94 | ) | $ | 0.08 | $ | (7.28 | ) | $ | 1.06 | ||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||
| Five Quarter Condensed Consolidated Statements of Income | |||||||||||||||||||
| Unaudited | |||||||||||||||||||
| Quarter ended | |||||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | |||||||||||||||
| ($ in thousands, except per share data) | 2008 | 2008 | 2008 | 2008 | 2007 | ||||||||||||||
| Interest income on: | |||||||||||||||||||
| Loans, including fees | $ | 64,030 | $ | 64,977 | $ | 62,817 | $ | 65,704 | $ | 69,201 | |||||||||
| Securities | 8,011 | 8,968 | 9,789 | 10,973 | 11,744 | ||||||||||||||
| Federal funds sold and other | 47 | 80 | 80 | 115 | 245 | ||||||||||||||
| Total interest income | 72,088 | 74,025 | 72,686 | 76,792 | 81,190 | ||||||||||||||
| Interest expense on: | |||||||||||||||||||
| Deposits | 15,185 | 16,183 | 16,490 | 19,514 | 23,852 | ||||||||||||||
| Borrowings | 4,834 | 6,338 | 6,587 | 8,295 | 8,698 | ||||||||||||||
| Junior subordinated and subordinated debt | 1,887 | 1,642 | 1,607 | 2,121 | 2,207 | ||||||||||||||
| Total interest expense | 21,906 | 24,163 | 24,684 | 29,930 | 34,757 | ||||||||||||||
| Net interest income | 50,182 | 49,862 | 48,002 | 46,862 | 46,433 | ||||||||||||||
| Provision for loan losses | 32,262 | 14,716 | 13,152 | 8,059 | 13,881 | ||||||||||||||
| Net interest income after provision for loan losses | 17,920 | 35,146 | 34,850 | 38,803 | 32,552 | ||||||||||||||
| Mark-to-market gains, net | 3,314 | 5,251 | 707 | 1,585 | 2,458 | ||||||||||||||
| Securities impairment charges | (118,864 | ) | (32,688 | ) | - | (5,280 | ) | (2,861 | ) | ||||||||||
| Other income: | |||||||||||||||||||
| Trust and other fees | 2,290 | 2,668 | 2,735 | 2,796 | 2,889 | ||||||||||||||
| Service charges | 1,711 | 1,586 | 1,411 | 1,427 | 1,339 | ||||||||||||||
| Bank owned life insurance | 673 | 593 | 573 | 800 | 913 | ||||||||||||||
| Other | 1,469 | 2,569 | 2,233 | 3,395 | 1,731 | ||||||||||||||
| 6,143 | 7,416 | 6,952 | 8,418 | 6,872 | |||||||||||||||
| Other expense: | |||||||||||||||||||
| Compensation | 23,086 | 21,812 | 21,517 | 21,934 | 20,172 | ||||||||||||||
| Occupancy | 5,404 | 5,280 | 5,179 | 5,028 | 3,769 | ||||||||||||||
| Customer service | 934 | 910 | 1,113 | 1,200 | 1,813 | ||||||||||||||
| Intangible amortization | 1,007 | 920 | 915 | 789 | 381 | ||||||||||||||
| Goodwill impairment | 59,603 | 79,242 | - | - | - | ||||||||||||||
| Other | 13,197 | 11,709 | 10,468 | 9,052 | 9,829 | ||||||||||||||
103,231 | 119,873 | 39,192 | 38,003 | 35,964 | |||||||||||||||
| Income (loss) before income taxes | (194,718 | ) | (104,748 | ) | 3,317 | 5,523 | 3,057 | ||||||||||||
| Income tax expense (benefit) | (46,409 | ) | (10,040 | ) | 902 | 1,381 | 614 | ||||||||||||
| Net income (loss) | (148,309 | ) | (94,708 | ) | 2,415 | 4,142 | 2,443 | ||||||||||||
| Preferred stock dividends | 778 | - | - | - | - | ||||||||||||||
| Net income (loss) available to common stockholders | $ | (149,087 | ) | $ | (94,708 | ) | $ | 2,415 | $ | 4,142 | $ | 2,443 | |||||||
| Diluted earnings (loss) per share | $ | (3.94 | ) | $ | (2.84 | ) | $ | 0.08 | $ | 0.14 | $ | 0.08 | |||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
| ($ in millions) | 2008 | 2008 | 2008 | 2008 | 2007 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 136.8 | $ | 137.8 | $ | 170.3 | $ | 132.9 | $ | 104.6 | ||||||||||
| Federal funds sold | 3.2 | 35.1 | 10.9 | 59.0 | 11.0 | |||||||||||||||
| Cash and cash equivalents | 140.0 | 172.9 | 181.2 | 191.9 | 115.6 | |||||||||||||||
| Securities | 567.8 | 622.0 | 621.7 | 731.1 | 736.2 | |||||||||||||||
| Gross loans, including net deferred loan fees: | ||||||||||||||||||||
| Construction and land development | 820.9 | 804.9 | 831.7 | 805.5 | 806.1 | |||||||||||||||
| Commercial real estate | 1,763.4 | 1,673.9 | 1,624.5 | 1,550.8 | 1,514.5 | |||||||||||||||
| Residential real estate | 589.2 | 571.9 | 536.0 | 519.6 | 492.6 | |||||||||||||||
| Commercial and industrial | 860.3 | 842.8 | 837.0 | 808.9 | 784.4 | |||||||||||||||
| Consumer | 71.1 | 62.0 | 54.1 | 46.2 | 43.5 | |||||||||||||||
| Net deferred loan fees | (9.2 | ) | (8.3 | ) | (8.7 | ) | (8.4 | ) | (8.1 | ) | ||||||||||
| 4,095.7 | 3,947.2 | 3,874.6 | 3,722.6 | 3,633.0 | ||||||||||||||||
| Less: Allowance for loan losses | (74.8 | ) | (57.1 | ) | (58.7 | ) | (50.8 | ) | (49.3 | ) | ||||||||||
| Loans, net | 4,020.9 | 3,890.1 | 3,815.9 | 3,671.8 | 3,583.7 | |||||||||||||||
| Premises and equipment, net | 141.0 | 142.9 | 143.4 | 143.9 | 143.4 | |||||||||||||||
| Bank owned life insurance | 90.7 | 90.0 | 89.4 | 88.9 | 88.1 | |||||||||||||||
| Goodwill and other intangibles | 100.0 | 160.6 | 240.7 | 241.4 | 242.2 | |||||||||||||||
| Other assets | 183.3 | 150.5 | 127.0 | 128.3 | 106.9 | |||||||||||||||
| Total assets | $ | 5,243.7 | $ | 5,229.0 | $ | 5,219.3 | $ | 5,197.3 | $ | 5,016.1 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,019.1 | $ | 985.0 | $ | 1,007.6 | $ | 1,032.2 | $ | 1,007.6 | ||||||||||
| Interest bearing deposits: | ||||||||||||||||||||
| Demand | 253.5 | 237.4 | 263.8 | 276.5 | 264.6 | |||||||||||||||
| Savings and money market | 1,342.8 | 1,376.9 | 1,585.4 | 1,538.3 | 1,558.9 | |||||||||||||||
| Time, $100 and over | 647.4 | 591.3 | 622.2 | 623.8 | 649.4 | |||||||||||||||
| Other time | 337.9 | 258.4 | 114.6 | 89.5 | 66.5 | |||||||||||||||
| 3,600.7 | 3,449.0 | 3,593.6 | 3,560.3 | 3,547.0 | ||||||||||||||||
| Customer repurchase agreements | 321.0 | 295.4 | 185.6 | 224.6 | 275.0 | |||||||||||||||
| Total customer funds | 3,921.7 | 3,744.4 | 3,779.2 | 3,784.9 | 3,822.0 | |||||||||||||||
| Wholesale brokered deposits | 60.0 | 60.0 | 60.0 | 70.0 | - | |||||||||||||||
| Borrowings | 637.1 | 805.1 | 717.0 | 696.4 | 544.7 | |||||||||||||||
| Junior subordinated and subordinated debt | 103.0 | 106.7 | 114.3 | 116.0 | 122.2 | |||||||||||||||
| Accrued interest payable and other liabilities | 27.2 | 34.9 | 23.4 | 36.0 | 25.7 | |||||||||||||||
| Total liabilities | 4,749.0 | 4,751.1 | 4,693.9 | 4,703.3 | 4,514.6 | |||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Common Stock and additional paid-in capital | 469.4 | 466.0 | 412.9 | 380.4 | 378.0 | |||||||||||||||
| Preferred Stock and additional paid-in capital | 140.0 | - | - | - | - | |||||||||||||||
| Retained earnings | (87.2 | ) | 64.0 | 158.7 | 156.3 | 152.3 | ||||||||||||||
| Accumulated other comprehensive loss | (27.5 | ) | (52.1 | ) | (46.2 | ) | (42.7 | ) | (28.8 | ) | ||||||||||
| Total stockholders' equity | 494.7 | 477.9 | 525.4 | 494.0 | 501.5 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,243.7 | $ | 5,229.0 | $ | 5,219.3 | $ | 5,197.3 | $ | 5,016.1 | ||||||||||
| 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) | 2008 | 2008 | 2008 | 2008 | 2007 | |||||||||||||||
| Balance, beginning of period | $ | 57,097 | $ | 58,688 | $ | 50,839 | $ | 49,305 | $ | 39,911 | ||||||||||
| Provisions charged to operating expenses | 32,262 | 14,716 | 13,152 | 8,059 | 13,881 | |||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||
| Construction and land development | 28 | 4 | - | - | - | |||||||||||||||
| Commercial real estate | 3 | - | - | - | - | |||||||||||||||
| Residential real estate | 12 | 31 | - | - | - | |||||||||||||||
| Commercial and industrial | 131 | 115 | 192 | 95 | 45 | |||||||||||||||
| Consumer | 13 | 12 | 4 | 8 | 20 | |||||||||||||||
| Total recoveries | 187 | 162 | 196 | 103 | 65 | |||||||||||||||
| Loans charged-off: | ||||||||||||||||||||
| Construction and land development | 2,197 | 10,113 | 1,082 | 3,323 | 2,361 | |||||||||||||||
| Commercial real estate | 1,364 | 1,366 | - | 182 | - | |||||||||||||||
| Residential real estate | 3,387 | 758 | 1,528 | 970 | 49 | |||||||||||||||
| Commercial and industrial | 6,975 | 4,173 | 2,705 | 2,084 | 2,023 | |||||||||||||||
| Consumer | 796 | 59 | 184 | 69 | 119 | |||||||||||||||
| Total charged-off | 14,719 | 16,469 | 5,499 | 6,628 | 4,552 | |||||||||||||||
| Net charge-offs | 14,532 | 16,307 | 5,303 | 6,525 | 4,487 | |||||||||||||||
| Balance, end of period | $ | 74,827 | $ | 57,097 | $ | 58,688 | $ | 50,839 | $ | 49,305 | ||||||||||
| Net charge-offs (annualized) to average loans outstanding | 1.45 | % | 1.65 | % | 0.55 | % | 0.70 | % | 0.49 | % | ||||||||||
| Allowance for loan losses to gross loans | 1.83 | 1.45 | 1.51 | 1.37 | 1.36 | |||||||||||||||
| Non-accrual loans | $ | 58,302 | $ | 27,909 | $ | 44,416 | $ | 9,750 | $ | 17,873 | ||||||||||
| Other real estate owned | 14,643 | 12,681 | 6,847 | 6,901 | 3,412 | |||||||||||||||
| Loans past due 90 days, still accruing | 12,272 | 686 | 3,597 | 3,235 | 779 | |||||||||||||||
| Loans past due 30 to 89 days, still accruing | 45,193 | 34,990 | 11,893 | 50,681 | 11,879 | |||||||||||||||
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
Average Balances, Yields and Rates Paid | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | |||||||||||||||||||
Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | |||||||||||||||
| Earning Assets | (in millions) | (in thousands) | (in millions) | (in thousands) | ||||||||||||||||
| Securities (1) | $ | 622.2 | $ | 7,758 | 5.27 | % | $ | 785.1 | $ | 11,494 | 5.96 | % | ||||||||
| Federal funds sold | 24.1 | 47 | 0.78 | % | 19.1 | 245 | 5.09 | % | ||||||||||||
| Loans (1) | 3,999.4 | 64,030 | 6.37 | % | 3,633.5 | 69,201 | 7.56 | % | ||||||||||||
| Restricted stock | 41.3 | 253 | 2.44 | % | 24.4 | 250 | 4.06 | % | ||||||||||||
| Total earnings assets | 4,687.0 | 72,088 | 6.16 | % | 4,462.1 | 81,190 | 7.25 | % | ||||||||||||
| Non-earning Assets | ||||||||||||||||||||
| Cash and due from banks | 129.3 | 104.7 | ||||||||||||||||||
| Allowance for loan losses | (59.8 | ) | (41.2 | ) | ||||||||||||||||
| Bank-owned life insurance | 90.3 | 87.5 | ||||||||||||||||||
| Other assets | 411.1 | 438.7 | ||||||||||||||||||
| Total assets | $ | 5,257.9 | $ | 5,051.8 | ||||||||||||||||
| Interest Bearing Liabilities | ||||||||||||||||||||
| Sources of Funds | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Interest-bearing checking | $ | 234.4 | 766 | 1.30 | % | $ | 255.5 | 1,458 | 2.26 | % | ||||||||||
| Savings and money market | 1,370.9 | 7,378 | 2.14 | % | 1,648.9 | 13,872 | 3.34 | % | ||||||||||||
| Time deposits | 915.5 | 7,041 | 3.06 | % | 713.2 | 8,522 | 4.74 | % | ||||||||||||
| 2,520.8 | 15,185 | 2.40 | % | 2,617.6 | 23,852 | 3.62 | % | |||||||||||||
| Borrowings | 1,145.3 | 4,834 | 1.68 | % | 751.7 | 8,698 | 4.59 | % | ||||||||||||
| Junior subordinated and subordinated debt | 106.6 | 1,887 | 7.04 | % | 116.1 | 2,207 | 7.54 | % | ||||||||||||
| Total interest-bearing liabilities | 3,772.7 | 21,906 | 2.31 | % | 3,485.4 | 34,757 | 3.96 | % | ||||||||||||
Non-interest Bearing Liabilities | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 961.8 | 1,022.1 | ||||||||||||||||||
| Other liabilities | 3.8 | 24.1 | ||||||||||||||||||
| Stockholders’ equity | 519.6 | 520.2 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,257.9 | $ | 5,051.8 | ||||||||||||||||
| Net interest income and margin | $ | 50,182 | 4.30 | % | $ | 46,433 | 4.16 | % | ||||||||||||
| Net interest spread | 3.85 | % | 3.29 | % | ||||||||||||||||
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $478 and $304 for the fourth quarter 2008 and 2007, respectively. | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||||||||||
| Unaudited | Nevada | California | Arizona | Asset Management | Credit Card Services | Other | Intersegment Eliminations | Consolidated Company | ||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||||||
| 2008: | ||||||||||||||||||||||||||||||||
| Assets | $ | 3,490.6 | $ | 971.2 | $ | 867.2 | $ | 18.9 | $ | 29.2 | $ | 63.6 | $ | (197.0 | ) | $ | 5,243.7 | |||||||||||||||
| Gross loans and deferred fees | 2,659.0 | 774.1 | 677.8 | - | 27.8 | - | (43.0 | ) | 4,095.7 | |||||||||||||||||||||||
| Less: Allowance for loan losses | (49.7 | ) | (10.9 | ) | (12.9 | ) | - | (1.3 | ) | - | - | (74.8 | ) | |||||||||||||||||||
| Net loans | 2,609.3 | 763.2 | 664.9 | - | 26.5 | - | (43.0 | ) | 4,020.9 | |||||||||||||||||||||||
| Deposits | 2,096.3 | 828.7 | 679.9 | - | - | - | (4.2 | ) | 3,600.7 | |||||||||||||||||||||||
| Stockholders' equity | 324.1 | 74.5 | 62.9 | 17.2 | (2.4 | ) | 18.4 | - | 494.7 | |||||||||||||||||||||||
| Number of branch locations | 21 | 9 | 11 | - | - | - | - | 41 | ||||||||||||||||||||||||
| Full-time equivalent employees | 604 | 141 | 150 | 47 | 37 | 41 | - | 1,020 | ||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended Dec. 31, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 32,640 | $ | 10,709 | $ | 7,688 | $ | 14 | $ | 267 | $ | (1,136 | ) | $ | - | $ | 50,182 | |||||||||||||||
| Provision for loan losses | 22,108 | 3,385 | 5,929 | - | 840 | - | - | 32,262 | ||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | 10,532 | 7,324 | 1,759 | 14 | (573 | ) | (1,136 | ) | - | 17,920 | ||||||||||||||||||||||
Securities gains/(losses) and other valuation changes | (90,579 | ) | (21,390 | ) | (13,683 | ) | - | - | 3,646 | 6,456 | (115,550 | ) | ||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 2,456 | 619 | 1,004 | 2,298 | 294 | 372 | (900 | ) | 6,143 | |||||||||||||||||||||||
| Noninterest expense | (79,853 | ) | (7,960 | ) | (6,578 | ) | (2,160 | ) | (3,685 | ) | (3,895 | ) | 900 | (103,231 | ) | |||||||||||||||||
| Income (loss) before income taxes | (157,444 | ) | (21,407 | ) | (17,498 | ) | 152 | (3,964 | ) | (1,013 | ) | 6,456 | (194,718 | ) | ||||||||||||||||||
| Income tax expense (benefit) | (34,646 | ) | (9,156 | ) | (6,830 | ) | 106 | (1,197 | ) | 3,054 | 2,260 | (46,409 | ) | |||||||||||||||||||
| Net income (loss) | $ | (122,798 | ) | $ | (12,251 | ) | $ | (10,668 | ) | $ | 46 | $ | (2,767 | ) | $ | (4,067 | ) | $ | 4,196 | $ | (148,309 | ) | ||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Year Ended Dec. 31, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income (loss) | $ | 130,746 | $ | 38,564 | $ | 29,926 | $ | 74 | $ | 340 | $ | (4,742 | ) | $ | - | $ | 194,908 | |||||||||||||||
| Provision for loan losses | 50,379 | 6,829 | 9,450 | - | 1,531 | - | - | 68,189 | ||||||||||||||||||||||||
Net interest income (loss) after provision for loan losses | 80,367 | 31,735 | 20,476 | 74 | (1,191 | ) | (4,742 | ) | - | 126,719 | ||||||||||||||||||||||
Securities gains/(losses) and other valuation changes | (124,390 | ) | (29,175 | ) | (18,069 | ) | - | - | 19,203 | 6,456 | (145,975 | ) | ||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 11,529 | 2,176 | 5,949 | 10,499 | 891 | 1,045 | (3,160 | ) | 28,929 | |||||||||||||||||||||||
| Noninterest expense | (217,434 | ) | (27,462 | ) | (25,365 | ) | (9,332 | ) | (13,042 | ) | (10,824 | ) | 3,160 | (300,299 | ) | |||||||||||||||||
| Income (loss) before income taxes | (249,928 | ) | (22,726 | ) | (17,009 | ) | 1,241 | (13,342 | ) | 4,682 | 6,456 | (290,626 | ) | |||||||||||||||||||
| Income tax expense (benefit) | (40,442 | ) | (9,732 | ) | (6,766 | ) | 623 | (5,102 | ) | 4,993 | 2,260 | (54,166 | ) | |||||||||||||||||||
| Net income (loss) | $ | (209,486 | ) | $ | (12,994 | ) | $ | (10,243 | ) | $ | 618 | $ | (8,240 | ) | $ | (311 | ) | $ | 4,196 | $ | (236,460 | ) | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||||||||||
| Unaudited | Nevada | California | Arizona | Asset Management | Credit Card Services | Other | Intersegment Eliminations | Consolidated Company | ||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||||||
| 2007: | ||||||||||||||||||||||||||||||||
| Assets | $ | 3,591.2 | $ | 850.1 | $ | 822.6 | $ | 19.5 | $ | 0.4 | $ | 5.2 | $ | (272.8 | ) | $ | 5,016.1 | |||||||||||||||
| Gross loans and deferred fees | 2,537.8 | 553.7 | 584.2 | - | 0.2 | - | (43.0 | ) | 3,633.0 | |||||||||||||||||||||||
| Less: Allowance for loan losses | (37.0 | ) | (5.51 | ) | (6.77 | ) | - | - | - | - | (49.3 | ) | ||||||||||||||||||||
| Net loans | 2,500.8 | 548.2 |
| 577.5 | - | 0.2 | - | (43.0 | ) | 3,583.7 | ||||||||||||||||||||||
| Deposits | 2,399.6 | 539.1 | 613.1 | - | - | - | (4.8 | ) | 3,547.0 | |||||||||||||||||||||||
| Stockholders' equity | 440.9 | 67.7 | 54.5 | 17.5 | - | (79.1 | ) | - | 501.5 | |||||||||||||||||||||||
| Number of branch locations | 19 | 9 | 11 | - | - | - | - | 39 | ||||||||||||||||||||||||
| Full-time equivalent employees | 619 | 150 | 139 | 42 | 14 | 28 | - | 992 | ||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended Dec. 31, 2007: | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 33,053 | $ | 7,680 | $ | 7,065 | $ | 26 | $ | (39 | ) | $ | (1,352 | ) | $ | - | $ | 46,433 | ||||||||||||||
| Provision for loan losses | 10,800 | 352 | 2,729 | - | - | - | - | 13,881 | ||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | 22,253 | 7,328 | 4,336 | 26 | (39 | ) | (1,352 | ) | - | 32,552 | ||||||||||||||||||||||
Securities gains/(losses) and other valuation changes | (5,403 | ) | 409 | 334 | 33 | - | 4,224 | - | (403 | ) | ||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 2,549 | 504 | 1,301 | 2,866 | 5 | 288 | (641 | ) | 6,872 | |||||||||||||||||||||||
| Noninterest expense | (18,614 | ) | (5,899 | ) | (5,705 | ) | (13,557 | ) | (2,098 | ) | 9,268 | 641 | (35,964 | ) | ||||||||||||||||||
| Income (loss) before income taxes | 785 | 2,342 | 266 | (10,632 | ) | (2,132 | ) | 12,428 | - | 3,057 | ||||||||||||||||||||||
| Income tax expense (benefit) | (104 | ) | 986 | 15 | 345 | (881 | ) | 253 | - | 614 | ||||||||||||||||||||||
| Net income (loss) | $ | 889 | $ | 1,356 | $ | 251 | $ | (10,977 | ) | $ | (1,251 | ) | $ | 12,175 | $ | - | $ | 2,443 | ||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Year Ended Dec. 31, 2007: | ||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 129,523 | $ | 27,526 | $ | 28,260 | $ | 77 | $ | (39 | ) | $ | (5,458 | ) | $ | - | $ | 179,889 | ||||||||||||||
| Provision for loan losses | 15,809 | 1,059 | 3,391 | - | - | - | - | 20,259 | ||||||||||||||||||||||||
Net interest income (expense) after provision for loan losses | 113,714 | 26,467 | 24,869 | 77 | (39 | ) | (5,458 | ) | - | 159,630 | ||||||||||||||||||||||
Securities gains/(losses) and other valuation changes | (7,111 | ) | 728 | 28 | 33 | - | 4,480 | - | (1,842 | ) | ||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 11,470 | 2,065 | 2,859 | 9,777 | 5 | 1 | (1,797 | ) | 24,380 | |||||||||||||||||||||||
| Noninterest expense | (72,157 | ) | (22,992 | ) | (22,981 | ) | (7,834 | ) | (2,859 | ) | (6,754 | ) | 1,797 | (133,780 | ) | |||||||||||||||||
| Income (loss) before income taxes | 45,916 | 6,268 | 4,775 | 2,053 | (2,893 | ) | (7,731 | ) | - | 48,388 | ||||||||||||||||||||||
| Income tax expense (benefit) | 14,544 | 2,444 | 1,681 | 884 | (1,200 | ) | (2,840 | ) | - | 15,513 | ||||||||||||||||||||||
| Net income (loss) | $ | 31,372 | $ | 3,824 | $ | 3,094 | $ | 1,169 | $ | (1,693 | ) | $ | (4,891 | ) | $ | - | $ | 32,875 | ||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||
| Non-GAAP Operating Segment Results | ||||||||||||||||||||||||||||||||
| Unaudited |
| |||||||||||||||||||||||||||||||
| Nevada | California | Arizona | Asset Management | Credit Card Services | Other | Intersegment Eliminations | Consolidated Company | |||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended Dec. 31, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income (loss) | $ | 32,640 | $ | 10,709 | $ | 7,688 | $ | 14 | $ | 267 | $ | (1,136 | ) | $ | - | $ | 50,182 | |||||||||||||||
| Provision for loan losses | 22,108 | 3,385 | 5,929 | - | 840 | - | - | 32,262 | ||||||||||||||||||||||||
Net interest income (loss) after provision for loan losses | 10,532 | 7,324 | 1,759 | 14 | (573 | ) | (1,136 | ) | - | 17,920 | ||||||||||||||||||||||
Noninterest income (excluding securities and fair value gains (losses) of ($76,460), net) | 2,456 | 619 | 1,004 | 2,298 | 294 | 372 | (900 | ) | 6,143 | |||||||||||||||||||||||
| Noninterest expense | (20,250 | ) | (7,960 | ) | (6,578 | ) | (2,160 | ) | (3,685 | ) | (3,895 | ) | 900 | (43,628 | ) | |||||||||||||||||
| Operating income (loss) before income taxes | (7,262 | ) | (17 | ) | (3,815 | ) | 152 | (3,964 | ) | (4,659 | ) | - | (19,565 | ) | ||||||||||||||||||
| Income tax expense (benefit) | (2,943 | ) | (172 | ) | (1,494 | ) | 106 | (1,197 | ) | (1,619 | ) | - | (7,319 | ) | ||||||||||||||||||
| Net operating income (loss) | $ | (4,319 | ) | $ | 155 | $ | (2,321 | ) | $ | 46 | $ | (2,767 | ) | $ | (3,040 | ) | $ | - | $ | (12,246 | ) | |||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Year Ended Dec. 31, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income (loss) | $ | 130,746 | $ | 38,564 | $ | 29,926 | $ | 74 | $ | 340 | $ | (4,742 | ) | $ | - | $ | 194,908 | |||||||||||||||
| Provision for loan losses | 50,379 | 6,829 | 9,450 | - | 1,531 | - | - | 68,189 | ||||||||||||||||||||||||
Net interest income (loss) after provision for loan losses | 80,367 | 31,735 | 20,476 | 74 | (1,191 | ) | (4,742 | ) | - | 126,719 | ||||||||||||||||||||||
Noninterest income (excluding securities and fair value gains (losses) of ($95,516), net) | 11,529 | 2,176 | 5,949 | 10,499 | 891 | 1,045 | (3,160 | ) | 28,929 | |||||||||||||||||||||||
Noninterest expense (excluding goodwill impairment charge of $79,242) | (78,589 | ) | (27,462 | ) | (25,365 | ) | (9,332 | ) | (13,042 | ) | (10,824 | ) | 3,160 | (161,454 | ) | |||||||||||||||||
| Operating income (loss) before income taxes | 13,307 | 6,449 | 1,060 | 1,241 | (13,342 | ) | (14,521 | ) | - | (5,806 | ) | |||||||||||||||||||||
| Income tax expense (benefit) | 3,095 | 2,522 | 281 | 623 | (5,102 | ) | (5,126 | ) | - | (3,707 | ) | |||||||||||||||||||||
| Net operating income (loss) | $ | 10,212 | $ | 3,927 | $ | 779 | $ | 618 | $ | (8,240 | ) | $ | (9,395 | ) | $ | - | $ | (2,099 | ) | |||||||||||||
CONTACT:
Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO, 602-952-5445
or
INVESTOR CONTACT:
Dale Gibbons, CFO, 702-248-4200