Exhibit 99.1
Western Alliance Reports Results for the First Quarter 2009
LAS VEGAS--(BUSINESS WIRE)--April 23, 2009--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the first quarter 2009.
First Quarter 2009 Highlights:
- Record customer deposits of $4.02 billion, including growth of $429 million ($311 million organic) during the quarter
- Record growth in organic customer funds (sum of deposits and customer repurchase agreements) of $263 million during the quarter to $4.18 billion
- Incurred a net operating loss of $6.5 million (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) in the first quarter 2009, compared to a $12.2 million net operating loss in the fourth quarter 2008 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge)
- Reported diluted net operating loss per common share of $0.23 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge), compared to diluted net operating loss per common share of $0.35 for fourth quarter 2008 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge)
- Included in the net loss of $86.5 million was a non-cash goodwill impairment charge of $45 million and an after tax write down of $36 million on Bank of America preferred stock, which is still performing
- Interest margin expansion to 4.39% during the quarter, compared to 4.30% in fourth quarter 2008 and 4.20% in first quarter 2008
- Reported net revenue (sum of net interest income and non-interest income, excluding securities impairment charges, net mark-to-market gains and losses on other real estate owned properties) of $57.6 million, up 0.5% from $57.3 million in the fourth quarter 2008 and up 4.9% from $54.9 million for the first quarter 2008
- Acquisition of $132 million in deposits from Security Savings Bank (Henderson, Nevada) by our Bank of Nevada subsidiary at zero premium from the FDIC
Financial Performance
Western Alliance Bancorporation reported a net operating loss of $6.5 million, excluding securities impairment charges of $36.4 million (net of tax), net mark-to-market gains of $1.8 million and a non-cash goodwill impairment charge of $45.0 million in the first quarter 2009, an improvement of $5.8 million from the fourth quarter 2008.
The Company incurred a net loss of $86.5 million for the first quarter 2009, compared to net income of $4.1 million for the first quarter 2008. First quarter 2009 results include a non-cash goodwill impairment charge of $45.0 million and a securities impairment charge of $36.4 million (net of tax), essentially comprised of a non-cash write down of its holdings of Bank of America (BofA) preferred stock, as these securities were cut to below investment grade by credit rating agencies. Notably, despite the credit downgrade, the Company’s holdings of BofA rank pari passu with the preferred stock issued by BofA to the US Treasury under the TARP program. BofA has repeatedly insisted it will repay the US Treasury in whole and has never suspended or curtailed dividend service on the Company’s holdings. At quarter end, its aggregate preferred stock holdings of Bank of America, Morgan Stanley and Zions Bancorporation have a par value of $65.1 million and a market and book value of $17.0 million. All of these holdings are paying as agreed.
Effective January 1, 2009, the Company adopted various FASB Staff Positions regarding fair value accounting issued in April 2009. However, for purposes of this earnings release, the Company has not recognized the cumulative effect of an accounting change as an adjustment to its beginning retained earnings position. The Company expects the cumulative effect may have a modest benefit to its tangible and regulatory capital position, which will be reflected in its SEC Form 10-Q filing for the first quarter 2009.
In February 2009, our Bank of Nevada subsidiary was selected to acquire the deposits of the former Security Savings Bank (Henderson, Nevada). Security Savings Bank was closed by the Nevada Financial Institutions Division, and the FDIC was named receiver. Bank of Nevada agreed to assume all of the failed bank’s deposits, totaling approximately $132 million, excluding brokered deposits. Bank of Nevada paid no premium to acquire the deposits. No loans were acquired in this transaction.
Gross loans decreased slightly to $4.08 billion at March 31, 2009 from $4.10 billion on December 31, 2008 and increased $353 million from $3.72 billion on March 31, 2008.
Customer funds increased $380 million to $4.29 billion at March 31, 2009 from December 31, 2008, comprised of a $429 million increase in deposits, offset by a $49 million decrease in customer repurchase agreements. From March 31, 2008, customer funds increased $509 million, comprised of a $461 million increase in deposits and a $48 million increase in customer repurchase agreements. Noninterest bearing title company deposits increased $30 million to $115 million during the quarter ended December 31, 2008 and decreased $71 million from March 31, 2008.
“Although obscured by non-cash charges for goodwill and securities impairment, during the quarter we made progress on our most urgent priority, returning to profitability,” said Robert Sarver, Chairman and Chief Executive of Western Alliance. “Our record deposit growth and continued interest margin expansion improved our operating performance and strengthened our earning power to address the most challenging real estate market in memory. The write down of Bank of America preferred stock, driven by rating agency downgrades, and goodwill charge resulting from lower valuations of financial institutions, have no effect on our cash flow. Bank of America has never suspended dividend service on our preferred stock and remains adamant about its ability to continue to pay its obligations. The value of this stock is up 25 percent since March 31. Despite higher credit costs, our capital levels remain strong and well in excess of the ‘well capitalized’ ratios promulgated by banking regulators. While our non-performing assets increased significantly during the quarter, we do see signs of a deceleration in the rate of contraction in our market areas, similar to other reports regarding economic conditions nationally. We remain keenly focused on proactively addressing credit issues.
“I am pleased we were able to augment our exceptional organic deposit growth during the quarter with the FDIC assisted acquisition of the deposits of Security Savings Bank. I’m proud of our team of banking professionals, who delivered record deposit market share expansion, along with good pricing and structure of new loans.”
Income Statement
Net interest income increased 8.3 percent to $50.7 million in the first quarter 2009 from $46.9 million in the first quarter 2008. The net interest margin in the first quarter 2009 was 4.39 percent, compared to 4.30 percent in the fourth quarter 2008. The net interest margin was 4.20 percent in the first quarter 2008.
The provision for loan losses was $20.0 million for the first quarter 2009 compared to $32.3 million for the fourth quarter 2008 and $8.1 million for the first quarter 2008. Nonaccrual loans and other real estate owned were $114.1 million or 2.17 percent of total assets at March 31, 2009, compared with $72.8 million or 1.40 percent of total assets at December 31, 2008 and $16.7 million or 0.32 percent of total assets at March 31, 2008. Net loan charge-offs in the first quarter 2009 were $17.6 million or 1.72 percent of average loans (annualized), compared to net charge-offs of $14.5 million or 1.45 percent of average loans (annualized) as of December 31, 2008 and $6.5 million or 0.70 percent of average loans (annualized) as of March 31, 2008. Loans past due 30-89 days totaled $53.1 million at quarter end, up from $45.2 million at December 31, 2008 and $50.7 million at March 31, 2008. Loans past due 90 days and still accruing totaled $53.2 million at quarter end, up from $11.5 million at December 31, 2008 and $3.2 million at March 31, 2008.
Noninterest income, excluding changes in fair value of financial instruments and net losses on the sale of other real estate owned, was $6.9 million for the first quarter 2009, down 14.7 percent from $8.0 million (including approximately $0.8 million from a non-recurring item) for the same period in 2008. This decrease was primarily the result of declining assets under management due to stock market deterioration. For the fourth quarter 2008, noninterest income was $7.1 million.
Net revenue (sum of net interest income and non-interest income, excluding securities impairment charges, net mark-to-market gains and net gains/losses on the sale of other real estate owned) was $57.6 million for the first quarter 2009, up 4.9 percent from $54.9 million for the first quarter 2008. For the fourth quarter 2008, net revenue was $57.3 million.
Noninterest expense (excluding a non-cash goodwill impairment charge) was $43.5 million for the first quarter 2009, up 14.5 percent from $38.0 million for the same period in 2008. For the fourth quarter 2008, noninterest expense (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) was $43.6 million.
The net loss was $86.5 million for the first quarter 2009 compared to net income of $4.1 million for the same period last year. Diluted loss per share was $2.33 compared to diluted earnings per share of $0.14 for the first quarter 2008. Average diluted shares increased 24.7 percent to 38.1 million for the first quarter 2009 compared to 30.5 million for the first quarter 2008.
Balance Sheet
Gross loans totaled $4.08 billion at March 31, 2009, a decrease of 0.5 percent from $4.10 billion at December 31, 2008 and increased 9.5 percent from $3.72 billion at March 31, 2008. At March 31, 2009 the allowance for loan losses was 1.89 percent of gross loans, compared to 1.83 percent at December 31, 2008 and 1.37 percent at March 31, 2008.
Customer funds totaled $4.29 billion at March 31, 2009, an increase of $380 million from December 31, 2008 and an increase of $509 million from $3.78 billion at March 31, 2008.
Noninterest bearing deposits comprised 25.8 percent of total deposits at March 31, 2009. As of March 31, 2009, noninterest bearing deposits from title companies were 2.9 percent of total deposits, compared to 2.4 percent at December 31, 2008, and 5.2 percent at March 31, 2008.
At March 31, 2009 the Company’s loans were 94.92 percent of customer funds compared to 98.35 percent one year earlier and 104.66 percent at December 31, 2008. Wholesale borrowings, including non-relationship brokered deposits, totaled $409 million at March 31, 2009, down $357 million from $766 million one year earlier, and down $288 million from December 31, 2008.
Stockholders’ equity decreased $69 million from December 31, 2008 to $427 million at March 31, 2009 primarily due to the securities impairment charge and non-cash goodwill impairment charge. Primarily as a result of the securities impairment charge, other comprehensive loss decreased $17.2 million from $28.5 million at December 31, 2008 to $11.3 million at March 31, 2009. At March 31, 2009 tangible common equity was 4.7 percent of tangible assets and total risk-based capital was 11.9 percent of risk-weighted assets.
Total assets increased 1.3 percent to $5.27 billion at March 31, 2009 from $5.20 billion at March 31, 2008.
Operating Unit Highlights
Our Nevada banking operations, which include Bank of Nevada and First Independent Bank of Nevada, reported gross loans of $2.64 billion during the first quarter 2009 compared to $2.66 billion in the fourth quarter 2008 and $2.57 billion during the first quarter 2008. Customer funds increased $125 million to $2.53 billion during the first quarter 2009. Net operating income for our Nevada banks was $1.0 million (excluding mark-to-market gains, securities impairment charges and non-cash goodwill impairment charges totaling $62.5 million) in the first quarter 2009. Net loss for our Nevada banks was $63.4 million during the first quarter 2009 compared with net income of $0.9 million during the first quarter 2008.
Our California banking operations, which include Torrey Pines Bank and Alta Alliance Bank, reported gross loans of $764 million during the first quarter 2009 compared to $774 million in the fourth quarter 2008 and $594 million during the first quarter 2008. Customer funds increased $141 million to $971 million during the first quarter 2009. Net operating loss for our California banks was $0.4 million (excluding mark-to-market gains and securities impairment charges of $4.4 million) in the first quarter 2009. Net loss for our California banks was $5.5 million during the first quarter 2009 compared with net income of $1.2 million during the first quarter 2008.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported gross loans of $682 million during the first quarter 2009 compared to $678 million in the fourth quarter 2008 and $597 million during the first quarter 2008. Customer funds increased $57 million to $800 million during the first quarter 2009. Net operating loss for our Arizona bank was $2.5 million (excluding mark-to-market losses and securities impairment charges of $0.8 million) in the first quarter 2009. Net loss for our Arizona bank was $4.5 million during the first quarter 2009 compared with net income of $1.3 million during the first quarter 2008.
The asset management business line, which includes Miller/Russell and Associates, Shine Investment Advisory Services and Premier Trust, had assets under management of $1.54 billion at March 31, 2009, down 27.4 percent from $2.12 billion at March 31, 2008, primarily due to valuation declines in equity securities. Assets under administration by the three entities decreased 25.5 percent from $2.31 billion at March 31, 2008 to $1.72 billion at March 31, 2009.
Our affinity card business line, PartnersFirst, launched five new affinity groups during the first quarter 2009 and as of March 31, 2009 had 17,167 open accounts. Losses incurred by PartnersFirst for the quarter ended March 31, 2009 were $1.6 million.
Attached to this press release is summarized financial information for the quarter ended March 31, 2009.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its first quarter 2009 financial results at 11:00. ET on Friday, April 24, 2009. Participants may access the call by dialing 1-800-860-2442. The call will be recorded and made available for replay after 2:00 p.m. ET April 24, until 9 a.m. ET May 8, by dialing 1-877-344-7529 using the pass code 430066#.
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 2008 Form 10-K and other documents 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 | |
| | ended Mar. 31, | |
| | | 2009 | | 2008 | | Change% | |
| | | | | | | | | | | | |
| Selected Income Statement Data: | | | | | | | | | | | | |
| ($ in thousands) | | | | | | | | | | | | |
| Interest income | | $ | 70,168 | | | $ | 76,792 | | | -8.6 | % | | |
| Interest expense | | | 19,438 | | | | 29,930 | | | -35.1 | | |
| Net interest income | | | 50,730 | | | | 46,862 | | | 8.3 | | |
| Provision for loan losses | | | 19,984 | | | | 8,059 | | | 148.0 | | |
| Net interest income after provision for loan losses | | | 30,746 | | | | 38,803 | | | -20.8 | | |
| Securities gains (losses) and other valuation changes | | | (33,829 | ) | | | (3,695 | ) | | 815.5 | | |
| Net gain (loss) on sale of OREO | | | (4,936 | ) | | | 380 | | | -1,398.9 | | |
| Other noninterest income | | | 6,858 | | | | 8,038 | | | -14.7 | | |
| Noninterest expense | | | 88,496 | | | | 38,003 | | | 132.9 | | |
| Income (loss) before income taxes | | | (89,657 | ) | | | 5,523 | | | -1,723.3 | | |
| Income tax expense (benefit) | | | (3,203 | ) | | | 1,381 | | | -331.9 | | |
| Net income (loss) | | $ | (86,454 | ) | | $ | 4,142 | | | -2,187.3 | | |
| Memo: Intangible asset amortization expense, net of tax | | $ | 614 | | | $ | 513 | | | 19.8 | | |
| Diluted net income (loss) per common share | | $ | (2.33 | ) | | $ | 0.14 | | | -1,766.6 | | |
| | | | | | | | | | | | |
| Non-GAAP Selected Income Statement Data: | | | | | | | | | | | | |
| ($ in thousands) | | | | | | | | | | | | |
| Interest income | | $ | 70,168 | | | $ | 76,792 | | | -8.6 | % | | |
| Interest expense | | | 19,438 | | | | 29,930 | | | -35.1 | | |
| Net interest income | | | 50,730 | | | | 46,862 | | | 8.3 | | |
| Provision for loan losses | | | 19,984 | | | | 8,059 | | | 148.0 | | |
| Net interest income after provision for loan losses | | | 30,746 | | | | 38,803 | | | -20.8 | | |
| Net gain (loss) on sale of OREO | | | (4,936 | ) | | | 380 | | | -1,398.9 | | |
| Other noninterest income | | | 6,858 | | | | 8,038 | | | -14.7 | | |
| Noninterest expense, excluding goodwill impairment | | | 43,496 | | | | 38,003 | | | 14.5 | | |
| Income (loss) before income taxes | | | (10,828 | ) | | | 9,218 | | | -217.5 | | |
| Income tax expense (benefit) | | | (4,358 | ) | | | 3,454 | | | -226.2 | | |
| Net operating income (loss) | | $ | (6,470 | ) | | $ | 5,764 | | | -212.2 | | |
| Diluted net operating income (loss) per common share | | $ | (0.23 | ) | | $ | 0.19 | | | -223.8 | | |
| | | | | | | | | | | | |
| Common Share Data: | | | | | | | | | | | | |
| Book value per common share | | | 7.72 | | | | 16.35 | | | -52.8 | | |
| Tangible book value per share (net of tax) | | | 6.51 | | | | 8.61 | | | -24.4 | | |
| Average shares outstanding (in thousands): | | | | | | | | | | | | |
| Basic | | | 38,096 | | | | 29,544 | | | 28.9 | | |
| Diluted | | | 38,096 | | | | 30,547 | | | 24.7 | | |
| Common shares outstanding | | | 38,956 | | | | 30,230 | | | 28.9 | | |
| | | | | | | | | | | | |
| Non-GAAP Measurements: | | | | | | | | | | | | |
| Net operating return on average assets (1) | | | (0.50 | ) | % | | 0.45 | | % | -211.1 | % | | |
Net operating cash return on average tangible assets (1) (2) | | | (0.46 | ) | | | 0.52 | | | -188.5 | | |
| Net operating return on average stockholders' equity (1) | | | (5.26 | ) | | | 4.56 | | | -215.4 | | |
| Net operating cash return on average | | | | | | | | | | | | |
| tangible stockholders' equity (1) (2) | | | (5.42 | ) | | | 9.22 | | | -158.8 | | |
| Net operating efficiency ratio - tax equivalent basis | | | 75.01 | | | | 68.70 | | | 9.2 | | |
| | | | | | | | | | | | |
| Selected Performance Ratios: | | | | | | | | | | | | |
| Net interest margin (1) | | | 4.39 | | | | 4.20 | | | 4.5 | | |
| Net interest spread | | | 3.98 | | | | 3.53 | | | 12.7 | | |
| Loan to deposit ratio | | | 101.35 | | | | 102.55 | | | -1.2 | | |
| | | | | | | | | | | | |
| Selected Balance Sheet Data: | | | | | | | | | | | | |
| ($ in millions) | | | | | | | | | | | | |
| Total assets | | $ | 5,266.9 | | | $ | 5,197.3 | | | 1.3 | % | | |
| Gross loans, including net deferred fees | | | 4,075.7 | | | | 3,722.6 | | | 9.5 | | |
| Securities | | | 585.5 | | | | 731.1 | | | -19.9 | | |
| Federal funds sold and other | | | 3.3 | | | | 59.0 | | | -94.4 | | |
| Customer funds | | | 4,293.8 | | | | 3,784.9 | | | 13.4 | | |
| Borrowings and brokered deposits | | | 409.4 | | | | 766.4 | | | -46.6 | | |
| Junior subordinated and subordinated debt | | | 102.9 | | | | 116.0 | | | -11.3 | | |
| Stockholders' equity | | | 426.5 | | | | 494.0 | | | -13.7 | | |
| | | | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | | | |
| Tangible equity | | | 7.1 | | % | | 5.1 | | % | 39.2 | % | |
| Tangible Common Equity | | | 4.7 | | | | 5.1 | | | -7.8 | | |
| Tier 1 Leverage ratio | | | 8.3 | | | | 7.4 | | | 12.2 | | |
| Tier 1 Risk Based Capital | | | 9.3 | | | | 7.7 | | | 20.8 | | |
| Total Risk Based Capital | | | 11.9 | | | | 10.1 | | | 17.8 | | |
| | | | | | | | | | | | |
| Asset Quality Ratios: | | | | | | | | | | | | |
| Net charge-offs to average loans outstanding (1) | | | 1.72 | | % | | 0.70 | | % | 145.7 | % | |
| Nonaccrual loans to gross loans | | | 2.42 | | | | 0.26 | | | 830.8 | | |
| Nonaccrual loans and OREO to total assets | | | 2.17 | | | | 0.32 | | | 578.1 | | |
| Loans past due 90 days and still accruing to total loans | | | 1.30 | | | | 0.09 | | | 1,344.4 | | |
| Allowance for loan losses to gross loans | | | 1.89 | | | | 1.37 | | | 38.0 | | |
| Allowance for loan losses to nonaccrual loans | | | 78.24 | | | | 518.13 | | | -84.9 | | |
| | | | | | | | | | |
| (1) Annualized for the three-month periods ended March 31, 2009 and 2008. | | | | | |
| (2) Cash return is defined as net income before intangible asset amortization expense. | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
Condensed Consolidated Statements of Operations |
| Unaudited |
| | Three Months Ended |
| | March 31, |
| | | | |
| ($ in thousands, except per share data) | | 2009 | | 2008 |
| Interest income on: | | | | |
| Loans, including fees | | $ | 63,145 | | | $ | 65,704 | |
| Securities | | | 6,892 | | | | 10,973 | |
| Federal funds sold and other | | | 131 | | | | 115 | |
| Total interest income | | | 70,168 | | | | 76,792 | |
| Interest expense on: | | | | |
| Deposits | | | 15,113 | | | | 19,514 | |
| Borrowings | | | 3,062 | | | | 8,295 | |
| Junior subordinated and subordinated debt | | | 1,263 | | | | 2,121 | |
| Total interest expense | | | 19,438 | | | | 29,930 | |
| Net interest income | | | 50,730 | | | | 46,862 | |
| Provision for loan losses | | | 19,984 | | | | 8,059 | |
| Net interest income after provision for loan losses | | | 30,746 | | | | 38,803 | |
| Mark-to-market gains (losses), net | | | 2,962 | | | | 1,585 | |
| Securities impairment charges | | | (36,791 | ) | | | (5,280 | ) |
| Net gain (loss) on sale of OREO | | | (4,936 | ) | | | 380 | |
| Other income: | | | | |
| Trust and investment advisory services | | | 2,237 | | | | 2,796 | |
| Service charges | | | 1,683 | | | | 1,427 | |
| Bank owned life insurance | | | 514 | | | | 800 | |
| Other | | | 2,424 | | | | 3,015 | |
| | | 6,858 | | | | 8,038 | |
| Other expense: | | | | |
| Compensation | | | 24,824 | | | | 21,934 | |
| Occupancy | | | 5,271 | | | | 5,028 | |
| Customer service | | | 1,207 | | | | 1,200 | |
| Intangible amortization | | | 945 | | | | 789 | |
| Goodwill impairment | | | 45,000 | | | | - | |
| Other | | | 11,249 | | | | 9,052 | |
| | | 88,496 | | | | 38,003 | |
| | | | |
| Income (loss) before income taxes | | | (89,657 | ) | | | 5,523 | |
| | | | |
| Income tax expense (benefit) | | | (3,203 | ) | | | 1,381 | |
| | | | |
| Net income (loss) | | | (86,454 | ) | | | 4,142 | |
| | | | |
| Preferred stock dividends | | | 1,750 | | | | - | |
| Accretion on preferred stock discount | | | 682 | | | | - | |
| | | | |
| Net income (loss) available to common stockholders | | $ | (88,886 | ) | | $ | 4,142 | |
| | | | |
| Diluted earnings (loss) per share | | $ | (2.33 | ) | | $ | 0.14 | |
| Western Alliance Bancorporation and Subsidiaries |
Five Quarter Condensed Consolidated Statements of Operations |
| Unaudited |
| |
| | Quarter ended |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, |
| ($ in thousands, except per share data) | | | 2009 | | | | 2008 | | | | 2008 | | | | 2008 | | | | 2008 | |
| Interest income on: | | | | | | | | | | |
| Loans, including fees | | $ | 63,145 | | | $ | 64,030 | | | $ | 64,977 | | | $ | 62,817 | | | $ | 65,704 | |
| Securities | | | 6,892 | | | | 8,011 | | | | 8,968 | | | | 9,789 | | | | 10,973 | |
| Federal funds sold and other | | | 131 | | | | 47 | | | | 80 | | | | 80 | | | | 115 | |
| Total interest income | | | 70,168 | | | | 72,088 | | | | 74,025 | | | | 72,686 | | | | 76,792 | |
| Interest expense on: | | | | | | | | | | |
| Deposits | | | 15,113 | | | | 15,185 | | | | 16,183 | | | | 16,490 | | | | 19,514 | |
| Borrowings | | | 3,062 | | | | 4,834 | | | | 6,338 | | | | 6,587 | | | | 8,295 | |
| Junior subordinated and subordinated debt | | | 1,263 | | | | 1,887 | | | | 1,642 | | | | 1,607 | | | | 2,121 | |
| Total interest expense | | | 19,438 | | | | 21,906 | | | | 24,163 | | | | 24,684 | | | | 29,930 | |
| Net interest income | | | 50,730 | | | | 50,182 | | | | 49,862 | | | | 48,002 | | | | 46,862 | |
| Provision for loan losses | | | 19,984 | | | | 32,262 | | | | 14,716 | | | | 13,152 | | | | 8,059 | |
| Net interest income after provision for loan losses | | | 30,746 | | | | 17,920 | | | | 35,146 | | | | 34,850 | | | | 38,803 | |
| Mark-to-market gains (losses), net | | | 2,962 | | | | 3,314 | | | | 5,251 | | | | 707 | | | | 1,585 | |
| Securities impairment charges | | | (36,791 | ) | | | (118,864 | ) | | | (32,688 | ) | | | - | | | | (5,280 | ) |
| Net gain (loss) on sale of OREO | | | (4,936 | ) | | | (1,000 | ) | | | (32 | ) | | | (27 | ) | | | 380 | |
| Other income: | | | | | | | | | | |
| Trust and investment advisory services | | | 2,237 | | | | 2,290 | | | | 2,668 | | | | 2,735 | | | | 2,796 | |
| Service charges | | | 1,683 | | | | 1,711 | | | | 1,586 | | | | 1,411 | | | | 1,427 | |
| Bank owned life insurance | | | 514 | | | | 673 | | | | 593 | | | | 573 | | | | 800 | |
| Other | | | 2,424 | | | | 2,469 | | | | 2,601 | | | | 2,260 | | | | 3,015 | |
| | | 6,858 | | | | 7,143 | | | | 7,448 | | | | 6,979 | | | | 8,038 | |
| Other expense: | | | | | | | | | | |
| Compensation | | | 24,824 | | | | 23,086 | | | | 21,812 | | | | 21,517 | | | | 21,934 | |
| Occupancy | | | 5,271 | | | | 5,404 | | | | 5,280 | | | | 5,179 | | | | 5,028 | |
| Customer service | | | 1,207 | | | | 934 | | | | 910 | | | | 1,113 | | | | 1,200 | |
| Intangible amortization | | | 945 | | | | 1,007 | | | | 920 | | | | 915 | | | | 789 | |
| Goodwill impairment | | | 45,000 | | | | 59,603 | | | | 79,242 | | | | - | | | | - | |
| Other | | | 11,249 | | | | 13,197 | | | | 11,709 | | | | 10,468 | | | | 9,052 | |
| | | 88,496 | | | | 103,231 | | | | 119,873 | | | | 39,192 | | | | 38,003 | |
| | | | | | | | | | |
| Income (loss) before income taxes | | | (89,657 | ) | | | (194,718 | ) | | | (104,748 | ) | | | 3,317 | | | | 5,523 | |
| Income tax expense (benefit) | | | (3,203 | ) | | | (46,409 | ) | | | (10,040 | ) | | | 902 | | | | 1,381 | |
| | | | | | | | | | |
| Net income (loss) | | $ | (86,454 | ) | | $ | (148,309 | ) | | $ | (94,708 | ) | | $ | 2,415 | | | $ | 4,142 | |
| | | | | | | | | | |
| Preferred stock dividends | | | 1,750 | | | | 778 | | | | - | | | | - | | | | - | |
| Accretion on preferred stock discount | | | 682 | | | | 303 | | | | - | | | | - | | | | - | |
| | | | | | | | | | |
| Net income (loss) available to common stockholders | | $ | (88,886 | ) | | $ | (149,390 | ) | | $ | (94,708 | ) | | $ | 2,415 | | | $ | 4,142 | |
| | | | | | | | | | |
| Diluted earnings (loss) per share | | $ | (2.33 | ) | | $ | (3.94 | ) | | $ | (2.84 | ) | | $ | 0.08 | | | $ | 0.14 | |
| Western Alliance Bancorporation and Subsidiaries | | | | | | | | | | |
| Five Quarter Condensed Consolidated Balance Sheets | | | | | | | | | | |
| Unaudited | | | | | | | | | | |
| | | | | | | | | | |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, |
| ($ in millions) | | 2009 | | 2008 | | 2008 | | 2008 | | 2008 |
| Assets | | | | | | | | | | |
| Cash and due from banks | | $ | 224.3 | | | $ | 136.8 | | | $ | 137.8 | | | $ | 170.3 | | | $ | 132.9 | |
| Federal funds sold | | | 3.3 | | | | 3.2 | | | | 35.1 | | | | 10.9 | | | | 59.0 | |
| Cash and cash equivalents | | | 227.6 | | | | 140.0 | | | | 172.9 | | | | 181.2 | | | | 191.9 | |
| | | | | | | | | | |
| Securities | | | 585.5 | | | | 565.4 | | | | 622.0 | | | | 621.7 | | | | 731.1 | |
| Gross loans, including net deferred loan fees: | | | | | | | | | | |
| Construction and land development | | | 793.5 | | | | 820.9 | | | | 804.9 | | | | 831.7 | | | | 805.5 | |
| Commercial real estate | | | 1,827.3 | | | | 1,763.4 | | | | 1,673.9 | | | | 1,624.5 | | | | 1,550.8 | |
| Residential real estate | | | 586.5 | | | | 589.2 | | | | 571.9 | | | | 536.0 | | | | 519.6 | |
| Commercial | | | 806.8 | | | | 860.3 | | | | 842.8 | | | | 837.0 | | | | 808.9 | |
| Consumer | | | 71.1 | | | | 71.1 | | | | 62.0 | | | | 54.1 | | | | 46.2 | |
| Net deferred fees | | | (9.5 | ) | | | (9.2 | ) | | | (8.3 | ) | | | (8.7 | ) | | | (8.4 | ) |
| | | 4,075.7 | | | | 4,095.7 | | | | 3,947.2 | | | | 3,874.6 | | | | 3,722.6 | |
| Less: Allowance for loan losses | | | (77.2 | ) | | | (74.8 | ) | | | (57.1 | ) | | | (58.7 | ) | | | (50.8 | ) |
| Loans, net | | | 3,998.5 | | | | 4,020.9 | | | | 3,890.1 | | | | 3,815.9 | | | | 3,671.8 | |
| | | | | | | | | | |
| Premises and equipment, net | | | 138.1 | | | | 140.9 | | | | 142.9 | | | | 143.4 | | | | 143.9 | |
| Bank owned life insurance | | | 90.8 | | | | 90.7 | | | | 90.0 | | | | 89.4 | | | | 88.9 | |
| Goodwill and other intangibles | | | 54.1 | | | | 100.0 | | | | 160.6 | | | | 240.7 | | | | 241.4 | |
| Other assets | | | 172.3 | | | | 184.9 | | | | 150.5 | | | | 127.0 | | | | 128.3 | |
| Total assets | | $ | 5,266.9 | | | $ | 5,242.8 | | | $ | 5,229.0 | | | $ | 5,219.3 | | | $ | 5,197.3 | |
| | | | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | | | | |
| Liabilities | | | | | | | | | | |
| Noninterest bearing demand deposits | | $ | 1,039.2 | | | $ | 1,010.6 | | | $ | 985.0 | | | $ | 1,007.6 | | | $ | 1,032.2 | |
| Interest bearing deposits: | | | | | | | | | | |
| Demand | | | 260.6 | | | | 253.5 | | | | 237.4 | | | | 263.8 | | | | 276.5 | |
| Savings and money market | | | 1,579.0 | | | | 1,342.8 | | | | 1,376.9 | | | | 1,585.4 | | | | 1,538.3 | |
| Time, $100 and over | | | 642.0 | | | | 647.4 | | | | 591.3 | | | | 622.2 | | | | 623.8 | |
| Other time | | | 500.7 | | | | 338.1 | | | | 258.4 | | | | 114.6 | | | | 89.5 | |
| | | 4,021.5 | | | | 3,592.4 | | | | 3,449.0 | | | | 3,593.6 | | | | 3,560.3 | |
| Customer repurchase agreements | | | 272.3 | | | | 321.0 | | | | 295.4 | | | | 185.6 | | | | 224.6 | |
| Total customer funds | | | 4,293.8 | | | | 3,913.4 | | | | 3,744.4 | | | | 3,779.2 | | | | 3,784.9 | |
| Wholesale brokered deposits | | | 40.0 | | | | 60.0 | | | | 60.0 | | | | 60.0 | | | | 70.0 | |
| Borrowings | | | 369.4 | | | | 637.1 | | | | 805.1 | | | | 717.0 | | | | 696.4 | |
| Junior subordinated and subordinated debt | | | 102.9 | | | | 103.0 | | | | 106.7 | | | | 114.3 | | | | 116.0 | |
| Accrued interest payable and other liabilities | | | 34.3 | | | | 33.8 | | | | 34.9 | | | | 23.4 | | | | 36.0 | |
| Total liabilities | | | 4,840.4 | | | | 4,747.3 | | | | 4,751.1 | | | | 4,693.9 | | | | 4,703.3 | |
| Stockholders' Equity | | | | | | | | | | |
| Common stock and additional paid-in capital | | | 486.2 | | | | 484.2 | | | | 466.0 | | | | 412.9 | | | | 380.4 | |
| Preferred Stock | | | 125.9 | | | | 125.2 | | | | - | | | | - | | | | - | |
| Retained earnings | | | (174.3 | ) | | | (85.4 | ) | | | 64.0 | | | | 158.7 | | | | 156.3 | |
| Accumulated other comprehensive loss | | | (11.3 | ) | | | (28.5 | ) | | | (52.1 | ) | | | (46.2 | ) | | | (42.7 | ) |
| Total stockholders' equity | | | 426.5 | | | | 495.5 | | | | 477.9 | | | | 525.4 | | | | 494.0 | |
| Total liabilities and stockholders' equity | | $ | 5,266.9 | | | $ | 5,242.8 | | | $ | 5,229.0 | | | $ | 5,219.3 | | | $ | 5,197.3 | |
| Western Alliance Bancorporation and Subsidiaries | | | | | | | | | | |
| Changes in the Allowance For Loan Losses | | | | | | | | | | |
| Unaudited | | | | | | | | | | |
| | | | | | | | | | |
| | Quarter Ended |
| | Mar. 31, | | Dec. 31, | | Sep. 30, | | Jun. 30, | | Mar. 31, |
| ($ in thousands) | | 2009 | | 2008 | | 2008 | | 2008 | | 2008 |
| | | | | | | | | | |
| Balance, beginning of period | | $ | 74,827 | | | $ | 57,097 | | | $ | 58,688 | | | $ | 50,839 | | | $ | 49,305 | |
| Acquisitions | | | - | | | | - | | | | - | | | | - | | | | - | |
| Provisions charged to operating expenses | | | 19,984 | | | | 32,262 | | | | 14,716 | | | | 13,152 | | | | 8,059 | |
| Recoveries of loans previously charged-off: | | | | | | | | | | |
| Construction and land development | | | - | | | | 28 | | | | 4 | | | | - | | | | - | |
| Commercial real estate | | | - | | | | 3 | | | | - | | | | - | | | | - | |
| Residential real estate | | | 51 | | | | 12 | | | | 31 | | | | - | | | | - | |
| Commercial and industrial | | | 370 | | | | 131 | | | | 115 | | | | 192 | | | | 95 | |
| Consumer | | | 29 | | | | 13 | | | | 12 | | | | 4 | | | | 8 | |
| Total recoveries | | | 450 | | | | 187 | | | | 162 | | | | 196 | | | | 103 | |
| Loans charged-off: | | | | | | | | | | |
| Construction and land development | | | 1,850 | | | | 2,197 | | | | 10,113 | | | | 1,082 | | | | 3,323 | |
| Commercial real estate | | | 1,117 | | | | 1,364 | | | | 1,366 | | | | - | | | | 182 | |
| Residential real estate | | | 6,127 | | | | 3,387 | | | | 758 | | | | 1,528 | | | | 970 | |
| Commercial and industrial | | | 7,965 | | | | 6,975 | | | | 4,173 | | | | 2,705 | | | | 2,084 | |
| Consumer | | | 1,018 | | | | 796 | | | | 59 | | | | 184 | | | | 69 | |
| Total charged-off | | | 18,077 | | | | 14,719 | | | | 16,469 | | | | 5,499 | | | | 6,628 | |
| Net charge-offs | | | 17,627 | | | | 14,532 | | | | 16,307 | | | | 5,303 | | | | 6,525 | |
| Balance, end of period | | $ | 77,184 | | | $ | 74,827 | | | $ | 57,097 | | | $ | 58,688 | | | $ | 50,839 | |
| | | | | | | | | | |
| Net charge-offs (annualized) to average loans outstanding | | | 1.72 | % | | | 1.45 | % | | | 1.65 | % | | | 0.55 | % | | | 0.70 | % |
| Allowance for loan losses to gross loans | | | 1.89 | | | | 1.83 | | | | 1.45 | | | | 1.51 | | | | 1.37 | |
| Nonaccrual loans | | $ | 98,653 | | | $ | 58,302 | | | $ | 27,909 | | | $ | 44,416 | | | $ | 9,750 | |
| Other real estate owned | | | 15,455 | | | | 14,545 | | | | 12,681 | | | | 6,847 | | | | 6,901 | |
| Loans past due 90 days, still accruing | | | 53,239 | | | | 11,515 | | | | 686 | | | | 3,597 | | | | 3,235 | |
| Loans past due 30 to 89 days, still accruing | | | 53,123 | | | | 45,193 | | | | 34,990 | | | | 11,893 | | | | 50,681 | |
| Western Alliance Bancorporation and Subsidiaries | | | | | | | | |
Analysis of Average Balances, Yields and Rates | | | | | | | | |
| Unaudited | | | | | | | | | | | | |
| | Three Months Ended March 31, |
| | | | | 2009 | | | | | | 2008 | | |
| | | | | | | | | | | | |
| | Average
Balance | | Interest | | Average
Yield/Cost | | Average
Balance | | Interest | | Average
Yield/Cost |
| Earning Assets | | ($ in millions) | | ($ in
thousands) | | | | ($ in millions) | | ($ in
thousands) | | |
| Securities (1) | | $ | 581.2 | | | $ | 6,892 | | 5.09 | % | | $ | 750.8 | | | $ | 10,526 | | 5.86 | % |
| Federal funds sold | | | 12.2 | | | | 131 | | 4.35 | % | | | 16.7 | | | | 115 | | 2.77 | % |
| Loans (1) | | | 4,088.2 | | | | 63,145 | | 6.26 | % | | | 3,724.2 | | | | 65,704 | | 7.10 | % |
| Restricted stock | | | 41.0 | | | | - | | 0.00 | % | | | 40.8 | | | | 447 | | 4.40 | % |
| Total earnings assets (1) | | | 4,722.6 | | | | 70,168 | | 6.06 | % | | | 4,532.5 | | | | 76,792 | | 6.85 | % |
| Non-earning Assets | | | | | | | | | | | | |
| Cash and due from banks | | | 153.5 | | | | | | | | 101.3 | | | | | |
| Allowance for loan losses | | | (77.4 | ) | | | | | | | (50.6 | ) | | | | |
| Bank-owned life insurance | | | 90.8 | | | | | | | | 88.4 | | | | | |
| Other assets | | | 381.8 | | | | | | | | 452.6 | | | | | |
| Total assets | | $ | 5,271.3 | | | | | | | $ | 5,124.2 | | | | | |
| Interest bearing liabilities | | | | | | | | | | | | |
| Sources of Funds | | | | | | | | | | | | |
| Interest bearing deposits: | | | | | | | | | | | | |
| Interest bearing checking | | $ | 248.3 | | | | 701 | | 1.14 | % | | $ | 263.6 | | | | 1,263 | | 1.93 | % |
| Savings and money market | | | 1,459.0 | | | | 7,113 | | 1.98 | % | | | 1,576.0 | | | | 10,641 | | 2.72 | % |
| Time deposits | | | 1,068.3 | | | | 7,299 | | 2.77 | % | | | 699.7 | | | | 7,610 | | 4.37 | % |
| | | 2,775.6 | | | | 15,113 | | 2.21 | % | | | 2,539.3 | | | | 19,514 | | 3.09 | % |
| Borrowings | | | 910.7 | | | | 3,062 | | 1.36 | % | | | 968.8 | | | | 8,295 | | 3.47 | % |
| Junior subordinated and subordinated debt | | | 103.0 | | | | 1,263 | | 4.97 | % | | | 122.2 | | | | 2,121 | | 7.75 | % |
| Total interest bearing liabilities | | $ | 3,789.3 | | | | 19,438 | | 2.08 | % | | $ | 3,630.3 | | | | 29,930 | | 3.32 | % |
Noninterest bearing liabilities | | | | | | | | | | | | |
| Noninterest bearing demand deposits | | | 954.8 | | | | | | | | 965.9 | | | | | |
| Other liabilities | | | 27.9 | | | | | | | | 19.8 | | | | | |
| Stockholders’ equity | | | 499.3 | | | | | | | | 508.2 | | | | | |
| Total liabilities and stockholders' equity | | $ | 5,271.3 | | | | | | | $ | 5,124.2 | | | | | |
| Net interest income and margin | | | | $ | 50,730 | | 4.39 | % | | | | $ | 46,862 | | 4.20 | % |
| Net interest spread | | | | | | 3.98 | % | | | | | | 3.54 | % |
| |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $400 and $418 for the first quarter 2009 and 2008, respectively. |
| | |
Western Alliance Bancorporation and Subsidiaries | | | | | | |
| Operating Segment Results | | | | | | | | | | | | Inter- | | |
| Unaudited | | | | | | | | | | | | | | | segment | | Consoli- |
| | | | | | | | | Asset | | Credit Card | | | | Elimi- | | dated |
| ($ in millions) | | Nevada | | California | | Arizona | | Management | | Services | | Other | | nations | | Company |
| At March 31, 2009: | | | | | | | | | | | | | | | | | |
| Assets | | $ | 3,529.7 | | | $ | 1,037.3 | | | $ | 886.0 | | | $ | 19.6 | | | $ | 31.8 | | | $ | 37.4 | | | $ | (274.9 | ) | | $ | 5,266.9 | |
| Gross loans and deferred fees | | | 2,643.0 | | | | 763.7 | | | | 682.1 | | | | - | | | | 29.9 | | | | - | | | | (43.0 | ) | | | 4,075.7 | |
| Less: Allowance for loan losses | | | (49.7 | ) | | | (12.0 | ) | | | (14.1 | ) | | | - | | | | (1.4 | ) | | | - | | | | - | | | | (77.2 | ) |
| Net loans | | | 2,593.3 | | | | 751.7 | | | | 668.0 | | | | - | | | | 28.5 | | | | - | | | | (43.0 | ) | | | 3,998.5 | |
| Deposits | | | 2,327.1 | | | | 967.0 | | | | 733.0 | | | | - | | | | - | | | | - | | | | (5.6 | ) | | | 4,021.5 | |
| Stockholders' equity | | | 279.0 | | | | 76.8 | | | | 64.2 | | | | 17.1 | | | | (1.6 | ) | | | (9.0 | ) | | | - | | | | 426.5 | |
| | | | | | | | | | | | | | | | | |
| ($ in thousands) | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2009: | | | | | | | | | | | | | |
| Net interest income | | $ | 32,647 | | | $ | 10,815 | | | $ | 7,728 | | | $ | 15 | | | $ | 361 | | | $ | (836 | ) | | $ | - | | | $ | 50,730 | |
| Provision for loan losses | | | 10,760 | | | | 3,283 | | | | 5,483 | | | | - | | | | 458 | | | | - | | | | - | | | | 19,984 | |
| Net interest income after provision for loan losses | | | | | | | | | | | | | |
| | 21,887 | | | | 7,532 | | | | 2,245 | | | | 15 | | | | (97 | ) | | | (836 | ) | | | - | | | | 30,746 | |
| Securities gains (losses) and other valuation changes | | | | | | | | | | | | | |
| | (17,370 | ) | | | (3,464 | ) | | | (884 | ) | | | - | | | | - | | | | (5,655 | ) | | | (6,456 | ) | | | (33,829 | ) |
| Net gain (loss) on sale of OREO | | | (2,561 | ) | | | - | | | | (2,375 | ) | | | - | | | | - | | | | - | | | | - | | | | (4,936 | ) |
| Noninterest income, excluding securities and fair value gains (losses) | | | | | | | | | | | | | |
| | 2,788 | | | | 808 | | | | 1,332 | | | | 2,244 | | | | 295 | | | | 349 | | | | (958 | ) | | | 6,858 | |
| Noninterest expense | | | (66,241 | ) | | | (8,703 | ) | | | (6,556 | ) | | | (2,218 | ) | | | (2,658 | ) | | | (3,078 | ) | | | 958 | | | | (88,496 | ) |
| Income (loss) before income taxes | | | (61,497 | ) | | | (3,827 | ) | | | (6,238 | ) | | | 41 | | | | (2,460 | ) | | | (9,220 | ) | | | (6,456 | ) | | | (89,657 | ) |
| Income tax expense (benefit) | | | 1,881 | | | | 1,665 | | | | (1,769 | ) | | | 85 | | | | (859 | ) | | | (1,946 | ) | | | (2,260 | ) | | | (3,203 | ) |
| Net income (loss) | | $ | (63,378 | ) | | $ | (5,492 | ) | | $ | (4,469 | ) | | $ | (44 | ) | | $ | (1,601 | ) | | $ | (7,274 | ) | | $ | (4,196 | ) | | $ | (86,454 | ) |
| Western Alliance Bancorporation and Subsidiaries | | | | |
| | | | | | | | | | | | | | | | |
| Non-GAAP Operating Segment Results | | | | | | | | | Inter- | | |
| Unaudited | | | | | | | | | | | | | | segment | | Consoli- |
| | | | | | | | Asset | | Credit Card | | | | Elimi- | | dated |
| | | Nevada | | California | | Arizona | | Management | | Services | | Other | | nations | | Company |
| ($ in thousands) | | | | | | | | | | | | | | | | |
| Three Months Ended | | | | | | | | | | | | | | | | |
| Mar. 31, 2009: | | | | | | | | | | | | | | | | |
| Net interest income (loss) | | $ | 32,647 | | | $ | 10,815 | | | $ | 7,728 | | | $ | 15 | | | $ | 361 | | | $ | (836 | ) | | $ | - | | | $ | 50,730 | |
| Provision for loan losses | | | 10,760 | | | | 3,283 | | | | 5,483 | | | | - | | | | 458 | | | | - | | | | - | | | | 19,984 | |
| Net interest income (loss) after provision for loan losses | | | | | | | | | | | | | | | | |
| | 21,887 | | | | 7,532 | | | | 2,245 | | | | 15 | | | | (97 | ) | | | (836 | ) | | | - | | | | 30,746 | |
| Noninterest income (excluding securities and fair value gains (losses) of ($34,653), net) | | | | | | | | | | | | | | | | |
| | 227 | | | | 808 | | | | (1,043 | ) | | | 2,244 | | | | 295 | | | | 349 | | | | (958 | ) | | | 1,922 | |
| Noninterest expense (excluding goodwill impairment charge of $45,000) | | | | | | | | | | | | | | | | |
| | (21,241 | ) | | | (8,703 | ) | | | (6,556 | ) | | | (2,218 | ) | | | (2,658 | ) | | | (3,078 | ) | | | 958 | | | | (43,496 | ) |
| Operating income (loss) before income taxes | | | 873 | | | | (363 | ) | | | (5,354 | ) | | | 41 | | | | (2,460 | ) | | | (3,565 | ) | | | - | | | | (10,828 | ) |
| Income tax expense (benefit) | | | (93 | ) | | | 43 | | | | (2,895 | ) | | | 107 | | | | (859 | ) | | | (661 | ) | | | - | | | | (4,358 | ) |
| Net operating income (loss) | | $ | 966 | | | $ | (406 | ) | | $ | (2,459 | ) | | $ | (66 | ) | | $ | (1,601 | ) | | $ | (2,904 | ) | | $ | - | | | $ | (6,470 | ) |
| Western Alliance Bancorporation and Subsidiaries | |
| Operating Segment Results | | | | | | | | | | Inter- | | | |
| Unaudited | | | | | | | | | | | | | | segment | | Consoli- | |
| | | | | | | | Asset | | Credit Card | | | | Elimi- | | dated | |
| ($ in millions) | | Nevada | | California | | Arizona | | Management | | Services | | Other | | nations | | Company | |
| At March 31, 2008: | | | | | | | | | | | | | | | | | |
| Assets | | $ | 3,644.6 | | | $ | 799.7 | | | $ | 769.0 | | | $ | 19.9 | | | $ | 7.2 | | | $ | 4.9 | | | $ | (48.0 | ) | | $ | 5,197.3 | | |
| Gross loans and deferred fees | | | 2,567.9 | | | | 593.9 | | | | 597.1 | | | | - | | | | 6.7 | | | | - | | | | (43.0 | ) | | | 3,722.6 | | |
| Less: Allowance for loan losses | | | (37.1 | ) | | | (6.0 | ) | | | (7.5 | ) | | | - | | | | (0.2 | ) | | | - | | | | - | | | | (50.8 | ) | |
| Net loans | | | 2,530.8 | | | | 587.9 | | | | 589.6 | | | | - | | | | 6.5 | | | | - | | | | (43.0 | ) | | | 3,671.8 | | |
| Deposits | | | 2,362.0 | | | | 533.9 | | | | 668.9 | | | | - | | | | - | | | | - | | | | (4.5 | ) | | | 3,560.3 | | |
| Stockholders' equity | | | 433.8 | | | | 65.3 | | | | 54.1 | | | | 17.5 | | | | - | | | | (76.7 | ) | | | - | | | | 494.0 | | |
| | | | | | | | | | | | | | | | | |
| ($ in thousands) | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2008: | | | | | | | | | | | | | | | | | |
| Net interest income | | $ | 32,512 | | | $ | 8,521 | | | $ | 7,297 | | | $ | 29 | | | $ | (81 | ) | | $ | (1,416 | ) | | $ | - | | | $ | 46,862 | | |
| Provision for loan losses | | | 6,573 | | | | 553 | | | | 725 | | | | - | | | | 208 | | | | - | | | | - | | | | 8,059 | | |
| Net interest income after provision for loan losses | | | | | | | | | | | | | | | | | |
| | 25,939 | | | | 7,968 | | | | 6,572 | | | | 29 | | | | (289 | ) | | | (1,416 | ) | | | - | | | | 38,803 | | |
| Securities gains (losses) and other valuation changes | | | | | | | | | | | | | | | | | |
| | (9,784 | ) | | | (122 | ) | | | (8 | ) | | | - | | | | - | | | | 6,219 | | | | - | | | | (3,695 | ) | |
| Noninterest income, excluding securities and fair value gains (losses) | | | | | | | | | | | | | | | | | |
| | 3,574 | | | | 521 | | | | 1,894 | | | | 2,807 | | | | 156 | | | | - | | | | (534 | ) | | | 8,418 | | |
| Noninterest expense | | | (19,245 | ) | | | (6,386 | ) | | | (6,465 | ) | | | (2,818 | ) | | | (2,009 | ) | | | (1,614 | ) | | | 534 | | | | (38,003 | ) | |
| Income (loss) before income taxes | | | 484 | | | | 1,981 | | | | 1,993 | | | | 18 | | | | (2,142 | ) | | | 3,189 | | | | - | | | | 5,523 | | |
| Income tax expense (benefit) | | | (390 | ) | | | 824 | | | | 707 | | | | 68 | | | | (889 | ) | | | 1,061 | | | | - | | | | 1,381 | | |
| Net income (loss) | | $ | 874 | | | $ | 1,157 | | | $ | 1,286 | | | $ | (50 | ) | | $ | (1,253 | ) | | $ | 2,128 | | | $ | - | | | $ | 4,142 | | |
CONTACT:
Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO, 602-952-5445
INVESTOR CONTACT:
Dale Gibbons, CFO, 702-248-4200
