Exhibit 99.1
Western Alliance Reports Results for the Second Quarter 2009
LAS VEGAS--(BUSINESS WIRE)--July 23, 2009--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the second quarter 2009.
Second Quarter 2009 Highlights:
- Regulatory capital of $732 million, up $178 million from March 31, 2009 due to a second quarter public offering which further strengthened our “well capitalized” status by federal banking standards with a Total Risk-Based Capital ratio of 15.7 percent
- Record customer deposits of $4.35 billion, including organic growth of $331 million during the quarter
- Record growth in customer funds (sum of deposits and customer repurchase agreements) of $359 million during the quarter to $4.65 billion
- Record liquidity of $716 million held in cash and mutual funds
- Net revenue (sum of net interest income and non-interest income, excluding securities activities and losses on the sale of repossessed assets) of $58.0 million, up 0.7% from $57.6 million in the first quarter 2009 and up 5.4% from $55.0 million for the second quarter 2008
- Interest margin of 4.17% during the quarter including 20 basis point reduction due to the record liquidity position, compared to 4.39% in first quarter 2009 and 4.25% in second quarter 2008
- Retired one half of TARP warrants (787,106 warrants) issued to U.S. Treasury without any payments made due to successful qualified equity offering
- Incurred a net loss of $14.1 million in the second quarter 2009, compared to $86.4 million net loss in the first quarter 2009
- Diluted net loss per common share of $0.31
Financial Performance
Western Alliance Bancorporation reported a net loss of $14.1 million, including net gains from securities activities of $8.7 million in the second quarter 2009, up from an $86.4 million net loss for the first quarter 2009. The net gain from securities was primarily from sales of some adjustable rate preferred stock, which had been previously impaired.
Second quarter results include a $37.6 million loan loss provision expense, as compared to $20.0 million in the first quarter 2009. Losses on sale of repossessed assets were $4.0 million and $4.9 million in the second and first quarters, respectively.
Gross loans decreased slightly to $4.03 billion at June 30, 2009 from $4.08 billion on March 31, 2009 and increased $154 million from $3.87 billion on June 30, 2008.
Customer funds increased $359 million to $4.65 billion at June 30, 2009 from March 31, 2009, comprised of a $331 million increase in deposits and a $28 million increase in customer repurchase agreements. From June 30, 2008, customer funds increased $873 million, comprised of a $758 million increase in deposits and a $115 million increase in customer repurchase agreements. Non-interest bearing title company deposits declined $57 million to $108 million during the 12 months ended June 30, 2009 and decreased $7 million from March 31, 2009.
“Once again, I am delighted with our extraordinary deposit growth during the quarter, which has strengthened our liquidity and provides further evidence that our customers see the quality and safety of our banks,” said Robert Sarver, Chairman, President and Chief Executive Officer of Western Alliance. “This view is shared by investors as demonstrated with our successful $200 million equity raise during the quarter, which has raised our capital levels to among the highest in the industry.”
Sarver continued, “Although I am disappointed by the increase in non-performing assets and charge-off levels during the current quarter, we continue to see evidence that market contraction has slowed. We now have higher levels of liquidity and capital than ever before and are well-positioned to take advantage of the current market turmoil through continued select relationship manager hiring and new customer recruitment.”
Income Statement
Net interest income increased 5.8 percent to $50.8 million in the second quarter 2009 from $48.0 million in the second quarter 2008. The net interest margin in the second quarter 2009 was 4.17 percent compared to 4.39 percent in the first quarter 2009. The net interest margin was 4.25 percent in the second quarter 2008.
During the quarter, the Company substantially increased its liquidity position by increasing cash kept at the affiliate level, as well as short term investment of proceeds at the parent from its common equity offering. This increase in cash reduced the Company’s interest margin by 20 basis points from the first quarter 2009 as $247 million was invested in interest bearing bank balances and money market funds yielding 0.27 percent for the quarter.
The provision for loan losses was $37.6 million for the second quarter 2009 compared to $20.0 million for the first quarter 2009 and $13.2 million for the second quarter 2008. Nonaccrual loans and other real estate owned were $158.5 million or 2.78 percent of total assets at June 30, 2009, compared with $114.1 million or 2.17 percent of total assets at March 31, 2009 and $51.3 million or 0.98 percent of total assets at June 30, 2008. Net loan charge-offs in the second quarter 2009 were $30.6 million or 3.00 percent of average loans (annualized), compared to net charge-offs of $17.6 million or 1.72 percent of average loans (annualized) for the first quarter 2009 and $5.3 million or 0.55 percent of average loans (annualized) for the second quarter 2008. Loans past due 90 days and still accruing totaled $36.1 million at quarter end, down from $53.2 million at March 31, 2009 and up from $3.6 million at June 30, 2008. Loans past due 30-89 days totaled $75.5 million at quarter end, up from $53.1 million at March 31, 2009 and $11.9 million at June 30, 2008.
Non-interest income, excluding increases in fair value of financial instruments measured at fair value and net losses on the sale of repossessed assets, was $7.2 million for the second quarter 2009, up 2.7 percent from $7.0 million for the same period in 2008. For the first quarter 2009, non-interest income was $6.9 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 repossessed assets) was $58.0 million for the second quarter 2009, up 5.4 percent from $55.0 million for the second quarter 2008. For the first quarter 2009, net revenue was $57.6 million.
Non-interest expense (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) was $48.6 million for the second quarter 2009 including a $2.6 million special assessment from the FDIC, up 24.0 percent from $39.2 million for the same period in 2008. For the first quarter 2009, non-interest expense was $88.5 million, including a $45.0 million goodwill impairment charge.
The net loss decreased 83.6 percent to $14.1 million for the second quarter 2009 compared to an $86.5 million net loss for the first quarter 2009. Net income was $2.4 million for the same period last year. Diluted loss per share was $0.31 compared with a $2.33 diluted loss per share for the first quarter 2009 and a $0.08 diluted earnings per share for the second quarter 2008. Average diluted shares increased 76.3 percent to 53.3 million for the second quarter 2009 compared to 30.2 million for the second quarter 2008 due primarily to the second quarter public offering.
As provided for in the contract with U.S. Treasury regarding warrants issued in connection with TARP preferred stock, half of the Company’s warrants were retired without charge since an offering in excess of total TARP proceeds was completed.
Balance Sheet
Gross loans totaled $4.03 billion at June 30, 2009, a decrease of 1.2 percent from March 31, 2009 and an increase of 4.0 percent from $3.87 billion at June 30, 2008. At June 30, 2009 the allowance for loan losses was 2.09 percent of gross loans up from 1.89 percent at March 31, 2009 and 1.51 percent at June 30, 2008.
Customer funds totaled $4.65 billion at June 30, 2009, an increase of $359 million or 8.4 percent from March 31, 2009 and an increase of $873 million or 23.1 percent from $3.78 billion at June 30, 2008.
Non-interest bearing deposits, which include title company deposits for which the Company incurs non-interest expense for the benefit of the depositor, comprised 25.5 percent of total deposits at June 30, 2009. As of June 30, 2009, non-interest bearing deposits from title companies were 2.5 percent of total deposits, compared to 2.9 percent at March 31, 2009, and 4.6 percent at June 30, 2008.
At June 30, 2009 the Company’s loans were 86.6 percent of customer funds compared to 102.5 percent one year earlier and 94.9 percent at March 31, 2009. Wholesale borrowings, including non-relationship brokered deposits, totaled $294 million at June 30, 2009, down $483 million from $777 million one year earlier, and down $115 million from $409 million from March 31, 2009.
Stockholders’ equity increased $194.6 million from March 31, 2009 to $621.6 million at June 30, 2009, primarily from a public placement of 33.3 million shares of common stock with gross proceeds totaling approximately $200 million. Our accumulated other comprehensive income increased to $0.9 million at June 30, 2009, compared to a loss of $15.7 million at March 31, 2009 due mainly to the recovery of some of its adjustable-rate preferred stock holdings and the sale of approximately one half of its Bank of America adjustable-rate preferred stock. At June 30, 2009 tangible common equity was 7.7 percent of tangible assets and total risk-based capital was 15.7 percent of risk-weighted assets.
Total assets increased 8.2 percent to $5.70 billion at June 30, 2009 from $5.22 billion at June 30, 2008.
Operating Unit Highlights
Our Nevada banking operations, which include Bank of Nevada and First Independent Bank of Nevada, reported a loan decline of $69 million during the second quarter 2009 and $46 million during the last 12 months to $2.57 billion at June 30, 2009. Customer funds increased $191 million and $237 million to $2.72 billion during the same periods, respectively. Net loss for our Nevada banks was $3.0 million during the second quarter 2009 compared with net income of $3.3 million during the second quarter 2008.
Our California banking operations, which include Torrey Pines Bank and Alta Alliance Bank, reported loan growth of $9 million during the second quarter 2009 and $108 million during the last 12 months to $773 million. Customer funds increased $103 million and $445 million to $1.07 billion during the same periods, respectively. Net income for our California banks was $5.0 million during the second quarter 2009 compared with $1.0 million during the second quarter 2008.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported loan growth of $6 million during the second quarter 2009 and an increase of $70 million during the last 12 months to $688 million. Customer funds increased $68 million and $186 million to $868 million during the same periods, respectively. Net loss for our Arizona banks was $0.6 million during the second quarter 2009 compared with net income of $0.8 million during the second quarter 2008.
Our Asset Management business line, which includes Miller/Russell and Associates, Shine Investments Advisory Services and Premier Trust, had assets under management of $1.63 billion at June 30, 2009, down 20.5 percent from $2.05 billion at June 30, 2008. Assets under administration by the three entities decreased 17.0 percent from $2.24 billion at June 30, 2008 to $1.86 billion at June 30, 2009. Net income for the Asset Management segment for the quarter ended June 30, 2009 was $0.1 million.
Our affinity credit card business line, PartnersFirst, has opened 3,727 new accounts during the second quarter 2009. Total receivables increased $22 million to $37 million at June 30, 2009 from $15 million at June 30, 2008. Losses incurred by PartnersFirst for the quarter ended June 30, 2009 were $1.7 million.
Attached to this press release is summarized financial information for the quarter ended June 30, 2009.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its second quarter 2009 financial results at 11 a.m. ET on Friday, July 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 July 24 until 9 a.m. ET August 10 by dialing 1-877-344-7529 using the pass code 432300.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include: factors listed in the Form 10-K as filed with the Securities and Exchange Commission; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for loan losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.
We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements set forth in this press release to reflect new information, future events or otherwise.
About Western Alliance Bancorporation
Western Alliance Bancorporation is the parent company of Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates, Shine Investment Advisory Services, Premier Trust, and PartnersFirst. These dynamic organizations provide a broad array of banking, leasing, trust, investment, and mortgage services to clients in Nevada, Arizona and California, investment services in Colorado, and bank card services nationwide. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers' needs than larger institutions. Additional investor information can be accessed on the Investor Relations page of the company's website, www.westernalliancebancorp.com.
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||
| Summary Consolidated Financial Data | |||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||
| At or for the three months | For the six months | ||||||||||||||||||||||||||||
| ended Jun. 30, | ended Jun. 30, | ||||||||||||||||||||||||||||
| 2009 | 2008 | Change % | 2009 | 2008 | Change % | ||||||||||||||||||||||||
| Selected Balance Sheet Data: | |||||||||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||||||||
| Total assets | $ | 5,701.5 | $ | 5,219.3 | 9.2 | % | |||||||||||||||||||||||
| Gross loans, including net deferred fees | 4,028.9 | 3,874.6 | 4.0 | ||||||||||||||||||||||||||
Securities and money market investments | 724.7 | 621.7 | 16.6 | ||||||||||||||||||||||||||
| Federal funds sold and other | 20.3 | 10.9 | 86.2 | ||||||||||||||||||||||||||
| Customer funds | 4,652.6 | 3,779.2 | 23.1 | ||||||||||||||||||||||||||
| Borrowings and brokered deposits | 294.4 | 777.0 | (62.1 | ) | |||||||||||||||||||||||||
| Junior subordinated and subordinated debt | 102.3 | 114.3 | (10.5 | ) | |||||||||||||||||||||||||
| Stockholders' equity | 621.6 | 525.4 | 18.3 | ||||||||||||||||||||||||||
| Selected Income Statement Data: | |||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||
| Interest income | $ | 70,296 | $ | 72,686 | (3.3 | ) | % | $ | 140,464 | $ | 149,478 | (6.0 | ) | % | |||||||||||||||
| Interest expense | 19,495 | 24,684 | (21.0 | ) | 38,933 | 54,614 | (28.7 | ) | |||||||||||||||||||||
| Net interest income | 50,801 | 48,002 | 5.8 | 101,531 | 94,864 | 7.0 | |||||||||||||||||||||||
| Provision for loan losses | 37,573 | 13,152 | 185.7 | 57,557 | 21,211 | 171.4 | |||||||||||||||||||||||
| Net interest income after provision for loan losses | 13,228 | 34,850 | (62.0 | ) | 43,974 | 73,653 | (40.3 | ) | |||||||||||||||||||||
| Securities gains (losses) and other valuation changes | 8,677 | 707 | 1,127.3 | (25,713 | ) | (2,988 | ) | 760.5 | |||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (3,974 | ) | (27 | ) | 14,618.5 | (8,910 | ) | 353 | (2,624.1 | ) | |||||||||||||||||||
| Other noninterest income | 7,168 | 6,979 | 2.7 | 14,025 | 15,017 | (6.6 | ) | ||||||||||||||||||||||
| Noninterest expense | 48,616 | 39,192 | 24.0 | 137,112 | 77,195 | 77.6 | |||||||||||||||||||||||
| Income (loss) before income taxes | (23,517 | ) | 3,317 | (809.0 | ) | (113,736 | ) | 8,840 | (1,386.6 | ) | |||||||||||||||||||
| Income tax expense (benefit) | (9,380 | ) | 902 | (1,139.9 | ) | (13,157 | ) | 2,283 | (676.3 | ) | |||||||||||||||||||
| Net income (loss) | $ | (14,137 | ) | $ | 2,415 | (685.4 | ) | $ | (100,579 | ) | $ | 6,557 | (1,633.9 | ) | |||||||||||||||
| Intangible asset amortization expense, net of tax | $ | 614 | $ | 595 | 3.3 | $ | 1,229 | $ | 1,108 | 10.9 | |||||||||||||||||||
| Diluted net income (loss) per common share | $ | (0.31 | ) | $ | 0.08 | (487.5 | ) | $ | (2.31 | ) | $ | 0.21 | (1,200.0 | ) | |||||||||||||||
| Common Share Data: | |||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (0.31 | ) | $ | 0.08 | (487.5 | ) | % | $ | (2.31 | ) | $ | 0.21 | (1,200.0 | ) | % | |||||||||||||
| Book value per common share | 6.83 | 15.43 | (55.7 | ) | |||||||||||||||||||||||||
| Tangible book value per share (net of tax) | 6.13 | 8.59 | (28.6 | ) | |||||||||||||||||||||||||
| Average shares outstanding (in thousands): | |||||||||||||||||||||||||||||
| Basic | 53,252 | 29,759 | 78.9 | 45,716 | 29,948 | 52.7 | |||||||||||||||||||||||
| Diluted | 53,252 | 30,211 | 76.3 | 45,716 | 30,676 | 49.0 | |||||||||||||||||||||||
| Common shares outstanding | 72,429 | 34,059 | 112.7 | ||||||||||||||||||||||||||
| Selected Performance Ratios: | |||||||||||||||||||||||||||||
| Return on average assets (1) | (1.07 | ) | % | 0.19 | % | (663.2 | ) | % | (3.81 | ) | % | 0.26 | % | (1,565.4 | ) | % | |||||||||||||
| Cash return on average tangible assets (1) (2) | (1.03 | ) | 0.24 | (529.2 | ) | (3.81 | ) | 0.31 | (1,329.0 | ) | |||||||||||||||||||
| Return on average stockholders' equity (1) | (10.94 | ) | 1.95 | (661.0 | ) | (40.33 | ) | 2.62 | (1,639.3 | ) | |||||||||||||||||||
| Cash return on average tangible stockholders' equity (1)(2) | (11.94 | ) | 4.87 | (345.2 | ) | (45.75 | ) | 6.07 | (853.7 | ) | |||||||||||||||||||
| Net interest margin (1) | 4.17 | 4.25 | (1.9 | ) | 4.24 | 4.22 | 0.5 | ||||||||||||||||||||||
| Net interest spread | 3.69 | 3.53 | 4.5 | 3.80 | 3.63 | 4.7 | |||||||||||||||||||||||
| Efficiency ratio - tax equivalent basis | 83.45 | 70.67 | 18.1 | 79.24 | 69.69 | 13.7 | |||||||||||||||||||||||
| Loan to deposit ratio | 91.73 | 106.05 | (13.5 | ) | |||||||||||||||||||||||||
| Capital Ratios: | |||||||||||||||||||||||||||||
| Tangible equity | 10.0 | % | 5.7 | % | 75.4 | % | |||||||||||||||||||||||
| Tangible Common Equity | 7.7 | 5.7 | 35.1 | ||||||||||||||||||||||||||
| Tier 1 Leverage ratio | 11.7 | 8.2 | 42.7 | ||||||||||||||||||||||||||
| Tier 1 Risk Based Capital | 13.1 | 8.9 | 47.2 | ||||||||||||||||||||||||||
| Total Risk Based Capital | 15.7 | 10.7 | 46.7 | ||||||||||||||||||||||||||
| Asset Quality Ratios: | |||||||||||||||||||||||||||||
| Net charge-offs to average loans outstanding (1) | 3.00 | % | 0.55 | % | 445.5 | % | 2.39 | % | 0.18 | % | 1,227.8 | % | |||||||||||||||||
| Nonaccrual loans to gross loans | 2.89 | 1.15 | 151.3 | ||||||||||||||||||||||||||
| Nonaccrual loans and OREO to total assets | 2.78 | 0.98 | 183.7 | ||||||||||||||||||||||||||
| Loans past due 90 days and still accruing to total loans | 0.88 | 0.09 | 877.8 | ||||||||||||||||||||||||||
| Allowance for loan losses to gross loans | 2.09 | 1.51 | 38.4 | ||||||||||||||||||||||||||
| Allowance for loan losses to nonaccrual loans | 72.30 |
| 132.13 |
| (45.3 | ) | |||||||||||||||||||||||
| =================================================== | |||||||||||||||||||||||||||||
| (1) Annualized for the three and six-month periods ended June 30, 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 Income | ||||||||||||||||||||||
| Unaudited | Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| ($ in thousands, except per share data) | 2009 | 2008 | 2009 | 2008 | ||||||||||||||||||
| Interest income on: | ||||||||||||||||||||||
| Loans, including fees | $ | 63,268 | $ | 62,817 | $ | 126,521 | $ | 128,521 | ||||||||||||||
| Securities | 6,822 | 9,789 | 13,714 | 20,762 | ||||||||||||||||||
| Federal funds sold and other | 206 | 80 | 229 | 195 | ||||||||||||||||||
| Total interest income | 70,296 | 72,686 | 140,464 | 149,478 | ||||||||||||||||||
| Interest expense on: | ||||||||||||||||||||||
| Deposits | 16,026 | 16,490 | 31,139 | 36,004 | ||||||||||||||||||
| Borrowings | 2,271 | 6,587 | 5,333 | 14,882 | ||||||||||||||||||
| Junior subordinated and subordinated debt | 1,198 | 1,607 | 2,461 | 3,728 | ||||||||||||||||||
| Total interest expense | 19,495 | 24,684 | 38,933 | 54,614 | ||||||||||||||||||
| Net interest income | 50,801 | 48,002 | 101,531 | 94,864 | ||||||||||||||||||
| Provision for loan losses | 37,573 | 13,152 | 57,557 | 21,211 | ||||||||||||||||||
| Net interest income after provision for loan losses | 13,228 | 34,850 | 43,974 | 73,653 | ||||||||||||||||||
| Mark-to-market gains (losses), net | 10,351 | 707 | 14,366 | 2,292 | ||||||||||||||||||
| Securities impairment charges | (1,674 | ) | - | (40,079 | ) | (5,280 | ) | |||||||||||||||
| Net gain (loss) on sale of repossessed assets | (3,974 | ) | (27 | ) | (8,910 | ) | 353 | |||||||||||||||
| Other income: | ||||||||||||||||||||||
| Trust and investment advisory services | 2,361 | 2,735 | 4,598 | 5,531 | ||||||||||||||||||
| Service charges | 1,980 | 1,411 | 3,662 | 2,838 | ||||||||||||||||||
| Bank owned life insurance | 435 | 573 | 949 | 1,373 | ||||||||||||||||||
| Other | 2,392 | 2,260 | 4,816 | 5,275 | ||||||||||||||||||
| 7,168 | 6,979 | 14,025 | 15,017 | |||||||||||||||||||
| Other expense: | ||||||||||||||||||||||
| Compensation | 24,527 | 21,517 | 49,351 | 43,451 | ||||||||||||||||||
| Occupancy | 5,254 | 5,179 | 10,525 | 10,207 | ||||||||||||||||||
| Customer service | 3,465 | 1,113 | 5,950 | 2,313 | ||||||||||||||||||
| Intangible amortization | 945 | 915 | 1,890 | 1,704 | ||||||||||||||||||
| Goodwill impairment | - | - | 45,000 | - | ||||||||||||||||||
| Other | 14,425 | 10,468 | 24,396 | 19,520 | ||||||||||||||||||
| 48,616 | 39,192 | 137,112 | 77,195 | |||||||||||||||||||
| Income (loss) before income taxes | (23,517 | ) | 3,317 | (113,736 | ) | 8,840 | ||||||||||||||||
| Income tax expense (benefit) | (9,380 | ) | 902 | (13,157 | ) | 2,283 | ||||||||||||||||
| Net income (loss) | $ | (14,137 | ) | $ | 2,415 | $ | (100,579 | ) | $ | 6,557 | ||||||||||||
| Preferred stock dividends | $ | 1,750 | - | 3,500 | - | |||||||||||||||||
| Accretion on preferred stock discount | 674 | - | 1,356 | - | ||||||||||||||||||
| Net income (loss) available to common stockholders | $ | (16,561 | ) | $ | 2,415 | $ | (105,435 | ) | $ | 6,557 | ||||||||||||
| Diluted earnings (loss) per share | $ | (0.31 | ) | $ | 0.08 | $ | (2.31 | ) | $ | 0.21 | ||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Five Quarter Condensed Consolidated Statements of Income | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| Quarter ended | ||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||||||
| ($ in thousands, except per share data) | 2009 | 2009 | 2008 | 2008 | 2008 | |||||||||||||||||||||
| Interest income on: | ||||||||||||||||||||||||||
| Loans, including fees | $ | 63,268 | $ | 63,253 | $ | 64,030 | $ | 64,977 | $ | 62,817 | ||||||||||||||||
Securities | 6,822 | 6,892 | 8,011 | 8,968 | 9,789 | |||||||||||||||||||||
| Federal funds sold and other | 206 | 23 | 47 | 80 | 80 | |||||||||||||||||||||
| Total interest income | 70,296 | 70,168 | 72,088 | 74,025 | 72,686 | |||||||||||||||||||||
| Interest expense on: | ||||||||||||||||||||||||||
| Deposits | 16,026 | 15,113 | 15,185 | 16,183 | 16,490 | |||||||||||||||||||||
| Borrowings | 2,271 | 3,062 | 4,834 | 6,338 | 6,587 | |||||||||||||||||||||
| Junior subordinated and subordinated debt | 1,198 | 1,263 | 1,887 | 1,642 | 1,607 | |||||||||||||||||||||
| Total interest expense | 19,495 | 19,438 | 21,906 | 24,163 | 24,684 | |||||||||||||||||||||
| Net interest income | 50,801 | 50,730 | 50,182 | 49,862 | 48,002 | |||||||||||||||||||||
| Provision for loan losses | 37,573 | 19,984 | 32,262 | 14,716 | 13,152 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 13,228 | 30,746 | 17,920 | 35,146 | 34,850 | |||||||||||||||||||||
| Mark-to-market gains (losses), net | 10,351 | 4,015 | 3,314 | 5,251 | 707 | |||||||||||||||||||||
| Securities impairment charges | (1,674 | ) | (38,405 | ) | (118,864 | ) | (32,688 | ) | - | |||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (3,974 | ) | (4,936 | ) | (1,000 | ) | (32 | ) | (27 | ) | ||||||||||||||||
| Other income: | ||||||||||||||||||||||||||
| Trust and other fees | 2,361 | 2,237 | 2,290 | 2,668 | 2,735 | |||||||||||||||||||||
| Service charges | 1,980 | 1,682 | 1,711 | 1,586 | 1,411 | |||||||||||||||||||||
| Bank owned life insurance | 435 | 514 | 673 | 593 | 573 | |||||||||||||||||||||
| Other | 2,392 | 2,424 | 2,469 | 2,601 | 2,260 | |||||||||||||||||||||
| 7,168 | 6,857 | 7,143 | 7,448 | 6,979 | ||||||||||||||||||||||
| Other expense: | ||||||||||||||||||||||||||
| Compensation | 24,527 | 24,824 | 23,086 | 21,812 | 21,517 | |||||||||||||||||||||
| Occupancy | 5,254 | 5,271 | 5,404 | 5,280 | 5,179 | |||||||||||||||||||||
| Customer service | 3,465 | 2,485 | 934 | 910 | 1,113 | |||||||||||||||||||||
| Intangible amortization | 945 | 945 | 1,007 | 920 | 915 | |||||||||||||||||||||
| Goodwill impairment | - | 45,000 | 59,603 | 79,242 | - | |||||||||||||||||||||
| Other | 14,425 | 9,971 | 13,197 | 11,709 | 10,468 | |||||||||||||||||||||
| 48,616 | 88,496 | 103,231 | 119,873 | 39,192 | ||||||||||||||||||||||
| Income (loss) before income taxes | (23,517 | ) | (90,219 | ) | (194,718 | ) | (104,748 | ) | 3,317 | |||||||||||||||||
| Income tax expense (benefit) | (9,380 | ) | (3,777 | ) | (46,409 | ) | (10,040 | ) | 902 | |||||||||||||||||
| Net income (loss) | $ | (14,137 | ) | $ | (86,442 | ) | $ | (148,309 | ) | $ | (94,708 | ) | $ | 2,415 | ||||||||||||
| Preferred stock dividends | 1,750 | 1,750 | 778 | - | - | |||||||||||||||||||||
| Accretion on preferred stock discount | 674 | 682 | 303 | - | - | |||||||||||||||||||||
| Net income (loss) available to common stockholders | $ | (16,561 | ) | $ | (88,874 | ) | $ | (149,390 | ) | $ | (94,708 | ) | $ | 2,415 | ||||||||||||
| Diluted earnings (loss) per share | $ | (0.31 | ) | $ | (2.33 | ) | $ | (3.94 | ) | $ | (2.84 | ) | $ | 0.08 | ||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||||||
| ($ in millions) | 2009 | 2009 | 2008 | 2008 | 2008 | |||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Cash and due from banks | $ | 548.6 | $ | 224.3 | $ | 136.8 | $ | 137.8 | $ | 170.3 | ||||||||||||||||
| Federal funds sold and other | 20.3 | 3.3 | 3.2 | 35.1 | 10.9 | |||||||||||||||||||||
| Cash and cash equivalents | 568.9 | 227.6 | 140.0 | 172.9 | 181.2 | |||||||||||||||||||||
Securities and money market investments | 724.7 | 583.6 | 565.4 | 622.0 | 621.7 | |||||||||||||||||||||
| Gross loans, including net deferred loan fees: | ||||||||||||||||||||||||||
| Construction and land development | 727.4 | 793.5 | 820.9 | 804.9 | 831.7 | |||||||||||||||||||||
| Commercial real estate | 1,866.0 | 1,827.3 | 1,763.4 | 1,673.9 | 1,624.5 | |||||||||||||||||||||
| Residential real estate | 595.0 | 586.5 | 589.2 | 571.9 | 536.0 | |||||||||||||||||||||
| Commercial | 768.9 | 806.8 | 860.3 | 842.8 | 837.0 | |||||||||||||||||||||
| Consumer | 80.5 | 71.2 | 71.1 | 62.0 | 54.1 | |||||||||||||||||||||
| Net deferred fees | (8.9 | ) | (9.5 | ) | (9.2 | ) | (8.3 | ) | (8.7 | ) | ||||||||||||||||
| 4,028.9 | 4,075.8 | 4,095.7 | 3,947.2 | 3,874.6 | ||||||||||||||||||||||
| Less: Allowance for loan losses | (84.1 | ) | (77.2 | ) | (74.8 | ) | (57.1 | ) | (58.7 | ) | ||||||||||||||||
| Loans, net | 3,944.8 | 3,998.6 | 4,020.9 | 3,890.1 | 3,815.9 | |||||||||||||||||||||
| Premises and equipment, net | 136.7 | 138.1 | 140.9 | 142.9 | 143.4 | |||||||||||||||||||||
| Bank owned life insurance | 91.3 | 90.8 | 90.7 | 90.0 | 89.4 | |||||||||||||||||||||
| Goodwill and other intangibles | 57.9 | 54.1 | 100.0 | 160.6 | 240.7 | |||||||||||||||||||||
| Other assets | 177.2 | 174.5 | 184.9 | 150.5 | 127.0 | |||||||||||||||||||||
| Total assets | $ | 5,701.5 | $ | 5,267.3 | $ | 5,242.8 | $ | 5,229.0 | $ | 5,219.3 | ||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||
| Noninterest bearing demand deposits | $ | 1,108.6 | $ | 1,039.2 | $ | 1,010.6 | $ | 985.0 | $ | 1,007.6 | ||||||||||||||||
| Interest bearing deposits: | ||||||||||||||||||||||||||
| Demand | 296.3 | 260.6 | 253.5 | 237.4 | 263.8 | |||||||||||||||||||||
| Savings and money market | 1,704.2 | 1,579.0 | 1,342.8 | 1,376.9 | 1,585.4 | |||||||||||||||||||||
| Time, $100 and over | 714.7 | 642.0 | 647.4 | 591.3 | 622.2 | |||||||||||||||||||||
| Other time | 528.4 | 500.7 | 338.1 | 258.4 | 114.6 | |||||||||||||||||||||
| 4,352.2 | 4,021.5 | 3,592.4 | 3,449.0 | 3,593.6 | ||||||||||||||||||||||
| Customer repurchase agreements | 300.4 | 272.3 | 321.0 | 295.4 | 185.6 | |||||||||||||||||||||
| Total customer funds | 4,652.6 | 4,293.8 | 3,913.4 | 3,744.4 | 3,779.2 | |||||||||||||||||||||
| Wholesale brokered deposits | 40.0 | 40.0 | 60.0 | 60.0 | 60.0 | |||||||||||||||||||||
| Borrowings | 254.4 | 370.8 | 637.1 | 805.1 | 717.0 | |||||||||||||||||||||
| Junior subordinated and subordinated debt | 102.3 | 102.8 | 103.0 | 106.7 | 114.3 | |||||||||||||||||||||
| Accrued interest payable and other liabilities | 30.6 | 32.9 | 33.8 | 34.9 | 23.4 | |||||||||||||||||||||
| Total liabilities | 5,079.9 | 4,840.3 | 4,747.3 | 4,751.1 | 4,693.9 | |||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||||
| Common stock and additional paid-in capital | 680.1 | 486.2 | 484.2 | 466.0 | 412.9 | |||||||||||||||||||||
| Preferred Stock | 126.6 | 125.9 | 125.2 | - | - | |||||||||||||||||||||
| Retained earnings | (186.0 | ) | (169.4 | ) | (85.4 | ) | 64.0 | 158.7 | ||||||||||||||||||
| Accumulated other comprehensive loss | 0.9 | (15.7 | ) | (28.5 | ) | (52.1 | ) | (46.2 | ) | |||||||||||||||||
| Total stockholders' equity | 621.6 | 427.0 | 495.5 | 477.9 | 525.4 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,701.5 | $ | 5,267.3 | $ | 5,242.8 | $ | 5,229.0 | $ | 5,219.3 | ||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Changes in the Allowance For Loan Losses | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||||||||
| Jun. 30, | Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | ||||||||||||||||||||||
| ($ in thousands) | 2009 | 2009 | 2008 | 2008 | 2008 | |||||||||||||||||||||
| Balance, beginning of period | $ | 77,184 | $ | 74,827 | $ | 57,097 | $ | 58,688 | $ | 50,839 | ||||||||||||||||
| Provisions charged to operating expenses | 37,573 | 19,984 | 32,262 | 14,716 | 13,152 | |||||||||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||||||||
| Construction and land development | 212 | - | 28 | 4 | - | |||||||||||||||||||||
| Commercial real estate | - | - | 3 | - | - | |||||||||||||||||||||
| Residential real estate | 143 | 51 | 12 | 31 | - | |||||||||||||||||||||
| Commercial and industrial | 501 | 370 | 131 | 115 | 192 | |||||||||||||||||||||
| Consumer | 42 | 29 | 13 | 12 | 4 | |||||||||||||||||||||
| Total recoveries | 898 | 450 | 187 | 162 | 196 | |||||||||||||||||||||
| Loans charged-off: | ||||||||||||||||||||||||||
| Construction and land development | 10,381 | 1,850 | 2,197 | 10,113 | 1,082 | |||||||||||||||||||||
| Commercial real estate | 6,310 | 1,117 | 1,364 | 1,366 | - | |||||||||||||||||||||
| Residential real estate | 6,427 | 6,127 | 3,387 | 758 | 1,528 | |||||||||||||||||||||
| Commercial and industrial | 7,355 | 7,965 | 6,975 | 4,173 | 2,705 | |||||||||||||||||||||
| Consumer | 1,039 | 1,018 | 796 | 59 | 184 | |||||||||||||||||||||
| Total charged-off | 31,512 | 18,077 | 14,719 | 16,469 | 5,499 | |||||||||||||||||||||
| Net charge-offs | 30,614 | 17,627 | 14,532 | 16,307 | 5,303 | |||||||||||||||||||||
| Balance, end of period | $ | 84,143 | $ | 77,184 | $ | 74,827 | $ | 57,097 | $ | 58,688 | ||||||||||||||||
| Net charge-offs (annualized) to average loans outstanding | 3.00 | % | 1.72 | % | 1.45 | % | 1.66 | % | 0.55 | % | ||||||||||||||||
| Allowance for loan losses to gross loans | 2.09 | 1.89 | 1.83 | 1.45 | 1.51 | |||||||||||||||||||||
| Nonaccrual loans | $ | 116,377 | $ | 98,653 | $ | 58,302 | $ | 27,909 | $ | 44,416 | ||||||||||||||||
| Other real estate owned | 42,137 | 15,455 | 14,545 | 12,681 | 6,847 | |||||||||||||||||||||
| Loans past due 90 days, still accruing | 36,060 | 53,239 | 11,515 | 686 | 3,597 | |||||||||||||||||||||
| Loans past due 30 to 89 days, still accruing | 75,480 | 53,123 | 45,193 | 34,990 | 11,893 | |||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||||||||||
| 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) | $ | 578.1 | $ | 6,639 | 4.86 | % | $ | 690.0 | $ | 9,167 | 5.62 | % | ||||||||||||||||
| Federal funds sold | 20.5 | 206 | 4.08 | % | 14.3 | 80 | 2.25 | % | ||||||||||||||||||||
| Loans (1) | 4,083.8 | 63,268 | 6.28 | % | 3,840.0 | 62,817 | 6.58 | % | ||||||||||||||||||||
| Short term investments | 247.2 | 167 | 0.27 | % | - | - | 0.00 | % | ||||||||||||||||||||
| Restricted stock | 41.0 | 16 | 0.16 | % | 42.8 | 622 | 5.85 | % | ||||||||||||||||||||
| Total earnings assets | 4,970.6 | 70,296 | 5.76 | % | 4,587.1 | 72,686 | 6.41 | % | ||||||||||||||||||||
| Non-earning Assets | ||||||||||||||||||||||||||||
| Cash and due from banks | 95.0 | 104.6 | ||||||||||||||||||||||||||
| Allowance for loan losses | (77.5 | ) | (53.5 | ) | ||||||||||||||||||||||||
| Bank owned life insurance | 91.0 | 89.1 | ||||||||||||||||||||||||||
| Other assets | 301.6 | 473.3 | ||||||||||||||||||||||||||
| Total assets | $ | 5,380.7 | $ | 5,200.6 | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||
| Sources of Funds | ||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||
| Interest-bearing checking | $ | 288.7 | $ | 835 | 1.17 | % | $ | 264.4 | $ | 967 | 1.47 | % | ||||||||||||||||
| Savings and money market | 1,630.2 | 7,148 | 1.78 | % | 1,584.6 | 8,790 | 2.23 | % | ||||||||||||||||||||
| Time deposits | 1,180.6 | 8,043 | 2.76 | % | 722.3 | 6,733 | 3.75 | % | ||||||||||||||||||||
| 3,099.5 | 16,026 | 2.10 | % | 2,571.3 | 16,490 | 2.58 | % | |||||||||||||||||||||
| Borrowings | 613.6 | 2,271 | 1.50 | % | 1,012.7 | 6,587 | 2.62 | % | ||||||||||||||||||||
| Junior subordinated and subordinated debt | 104.0 | 1,198 | 4.67 | % | 116.0 | 1,607 | 5.57 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,817.1 | 19,495 | 2.07 | % | 3,700.0 | 24,684 | 2.68 | % | ||||||||||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,013.0 | 976.1 | ||||||||||||||||||||||||||
| Other liabilities | 26.4 | 27.0 | ||||||||||||||||||||||||||
| Stockholders’ equity | 524.2 | 497.5 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,380.7 | $ | 5,200.6 | ||||||||||||||||||||||||
| Net interest income and margin | $ | 50,801 | 4.17 | % | $ | 48,002 | 4.25 | % | ||||||||||||||||||||
| Net interest spread | 3.69 | % | 3.73 | % | ||||||||||||||||||||||||
| (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $289 and $477 for the second quarter ended 2009 and 2008, respectively. | ||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||||||||||||||
| Operating Segment Results | Inter- | ||||||||||||||||||||||||||||||||||||||||
| Unaudited | segment | Consoli- | |||||||||||||||||||||||||||||||||||||||
| Asset | Credit Card | Elimi- | dated | ||||||||||||||||||||||||||||||||||||||
| ($ in millions) | Nevada | California | Arizona | Management | Services | Other | nations | Company | |||||||||||||||||||||||||||||||||
| At Jun. 30, 2009: | |||||||||||||||||||||||||||||||||||||||||
| Assets | $ | 3,418.7 | $ | 1,159.7 | $ | 964.4 | $ | 19.5 | $ | 39.8 | $ | 192.1 | $ | (92.7 | ) | $ | 5,701.5 | ||||||||||||||||||||||||
| Gross loans and deferred fees | 2,573.8 | 773.0 | 688.2 | - | 36.9 | - | (43.0 | ) | 4,028.9 | ||||||||||||||||||||||||||||||||
| Less: Allowance for loan losses | (60.4 | ) | (8.1 | ) | (13.4 | ) | - | (2.2 | ) | - | - | (84.1 | ) | ||||||||||||||||||||||||||||
| Net loans | 2,513.4 | 764.9 | 674.8 | - | 34.7 | - | (43.0 | ) | 3,944.8 | ||||||||||||||||||||||||||||||||
| Deposits | 2,510.1 | 1,046.5 | 804.0 | - | - | - | (8.4 | ) | 4,352.2 | ||||||||||||||||||||||||||||||||
| Stockholders' equity | 283.5 | 103.6 | 74.5 | 17.3 | (3.3 | ) | 152.9 | (6.9 | ) | 621.6 | |||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended Jun. 30, 2009: | |||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 31,621 | $ | 10,700 | $ | 8,637 | $ | 16 | $ | 469 | $ | (642 | ) | $ | - | $ | 50,801 | ||||||||||||||||||||||||
| Provision for loan losses | 33,889 | (493 | ) | 2,732 | - | 1,445 | - | - | 37,573 | ||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | (2,268 | ) | 11,193 | 5,905 | 16 | (976 | ) | (642 | ) | - | 13,228 | ||||||||||||||||||||||||||||||
Securities gains (losses) and other valuation changes | 12,321 | 3,931 | 729 | - | - | 4,661 | (12,965 | ) | 8,677 | ||||||||||||||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (2,529 | ) | - | (1,445 | ) | - | - | - | - | (3,974 | ) | ||||||||||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 3,118 | 847 | 1,214 | 2,370 | 398 | 361 | (1,140 | ) | 7,168 | ||||||||||||||||||||||||||||||||
| Noninterest expense | (26,439 | ) | (12,007 | ) | (7,794 | ) | (2,095 | ) | (2,656 | ) | (768 | ) | 3,143 | (48,616 | ) | ||||||||||||||||||||||||||
| Income (loss) before income taxes | (15,797 | ) | 3,964 | (1,391 | ) | 291 | (3,234 | ) | 3,612 | (10,962 | ) | (23,517 | ) | ||||||||||||||||||||||||||||
| Income tax expense (benefit) | (12,827 | ) | (1,029 | ) | (821 | ) | 157 | (1,527 | ) | (192 | ) | 6,859 | (9,380 | ) | |||||||||||||||||||||||||||
| Net income (loss) | $ | (2,970 | ) | $ | 4,993 | $ | (570 | ) | $ | 134 | $ | (1,707 | ) | $ | 3,804 | $ | (17,821 | ) | $ | (14,137 | ) | ||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended Jun. 30, 2009: | |||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 64,268 | $ | 21,515 | $ | 16,365 | $ | 31 | $ | 829 | $ | (1,477 | ) | $ | - | $ | 101,531 | ||||||||||||||||||||||||
| Provision for loan losses | 44,648 | 2,790 | 8,216 | - | 1,903 | - | - | 57,557 | |||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 19,620 | 18,725 | 8,149 | 31 | (1,074 | ) | (1,477 | ) | - | 43,974 | |||||||||||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (6,242 | ) | 739 | 204 | - | - | (993 | ) | (19,421 | ) | (25,713 | ) | |||||||||||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (5,091 | ) | - | (3,819 | ) | - | - | - | - | (8,910 | ) | ||||||||||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 5,907 | 1,656 | 2,546 | 4,613 | 694 | 707 | (2,098 | ) | 14,025 | ||||||||||||||||||||||||||||||||
| Noninterest expense | (92,680 | ) | (18,250 | ) | (14,351 | ) | (4,314 | ) | (5,314 | ) | (6,304 | ) | 4,101 | (137,112 | ) | ||||||||||||||||||||||||||
| Income (loss) before income taxes | (78,486 | ) | 2,870 | (7,271 | ) | 330 | (5,694 | ) | (8,067 | ) | (17,418 | ) | (113,736 | ) | |||||||||||||||||||||||||||
| Income tax expense (benefit) | (11,381 | ) | (892 | ) | (2,729 | ) | 242 | (2,386 | ) | (612 | ) | 4,601 | (13,157 | ) | |||||||||||||||||||||||||||
| Net income (loss) | $ | (67,105 | ) | $ | 3,762 | $ | (4,542 | ) | $ | 88 | $ | (3,308 | ) | $ | (7,455 | ) | $ | (22,019 | ) | $ | (100,579 | ) | |||||||||||||||||||
| 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 Jun. 30, 2008: | |||||||||||||||||||||||||||||||||||||||||
| Assets | $ | 3,668.7 | $ | 863.0 | $ | 797.0 | $ | 18.4 | $ | 20.6 | $ | 16.5 | $ | (164.9 | ) | $ | 5,219.3 | ||||||||||||||||||||||||
| Gross loans and deferred fees | 2,619.7 | 664.7 | 618.1 | - | 15.1 | - | (43.0 | ) | 3,874.6 | ||||||||||||||||||||||||||||||||
| Less: Allowance for loan losses | (42.6 | ) | (7.4 | ) | (8.2 | ) | - | (0.5 | ) | - | - | (58.7 | ) | ||||||||||||||||||||||||||||
| Net loans | 2,577.1 | 657.3 | 609.9 | - | 14.6 | - | (43.0 | ) | 3,815.9 | ||||||||||||||||||||||||||||||||
| Deposits | 2,328.1 | 622.8 | 656.9 | - | - | - | (14.2 | ) | 3,593.6 | ||||||||||||||||||||||||||||||||
| Stockholders' equity | 426.3 | 67.9 | 54.1 | 16.7 | - | (39.6 | ) | - | 525.4 | ||||||||||||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended Jun. 30, 2008: | |||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 32,525 | $ | 9,287 | $ | 7,345 | $ | 16 | $ | 15 | $ | (1,186 | ) | $ | - | $ | 48,002 | ||||||||||||||||||||||||
| Provision for loan losses | 10,674 | 1,464 | 760 | - | 254 | - | - | 13,152 | |||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 21,851 | 7,823 | 6,585 | 16 | (239 | ) | (1,186 | ) | - | 34,850 | |||||||||||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (161 | ) | (261 | ) | (567 | ) | - | - | 1,696 | 707 | |||||||||||||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | |||||||||||||||||||||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 2,614 | 496 | 1,487 | 2,720 | 147 | 361 | (873 | ) | 6,952 | ||||||||||||||||||||||||||||||||
| Noninterest expense | (19,606 | ) | (6,410 | ) | (6,169 | ) | (2,219 | ) | (2,901 | ) | (2,760 | ) | 873 | (39,192 | ) | ||||||||||||||||||||||||||
| Income (loss) before income taxes | 4,698 | 1,648 | 1,336 | 517 | (2,993 | ) | (1,889 | ) | - | 3,317 | |||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 1,363 | 690 | 506 | 226 | (1,245 | ) | (638 | ) | - | 902 | |||||||||||||||||||||||||||||||
| Net income (loss) | $ | 3,335 | $ | 958 | $ | 830 | $ | 291 | $ | (1,748 | ) | $ | (1,251 | ) | $ | - | $ | 2,415 | |||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||
| Six Months Ended Jun. 30, 2008: | |||||||||||||||||||||||||||||||||||||||||
| Net interest income | $ | 65,037 | $ | 17,807 | $ | 14,641 | $ | 45 | $ | (66 | ) | $ | (2,600 | ) | $ | - | $ | 94,864 | |||||||||||||||||||||||
| Provision for loan losses | 17,247 | 2,017 | 1,485 | - | 462 | - | - | 21,211 | |||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 47,790 | 15,790 | 13,156 | 45 | (528 | ) | (2,600 | ) | - | 73,653 | |||||||||||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (9,945 | ) | (383 | ) | (575 | ) | - | - | 7,915 | - | (2,988 | ) | |||||||||||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | |||||||||||||||||||||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 6,189 | 1,015 | 3,381 | 5,526 | 302 | 364 | (1,407 | ) | 15,370 | ||||||||||||||||||||||||||||||||
| Noninterest expense | (38,850 | ) | (12,795 | ) | (12,633 | ) | (4,972 | ) | (4,909 | ) | (4,443 | ) | 1,407 | (77,195 | ) | ||||||||||||||||||||||||||
| Income (loss) before income taxes | 5,184 | 3,627 | 3,329 | 599 | (5,135 | ) | 1,236 | - | 8,840 | ||||||||||||||||||||||||||||||||
| Income tax expense (benefit) | 973 | 1,514 | 1,213 | 294 | (2,133 | ) | 422 | - | 2,283 | ||||||||||||||||||||||||||||||||
| Net income (loss) | $ | 4,211 | $ | 2,113 | $ | 2,116 | $ | 305 | $ | (3,002 | ) | $ | 814 | $ | - | $ | 6,557 | ||||||||||||||||||||||||
CONTACT:
Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO
602-952-5445
or
INVESTOR CONTACT:
Dale Gibbons, CFO
702-252-6236