Exhibit 99.1
Western Alliance Reports Results for the Third Quarter 2009
LAS VEGAS--(BUSINESS WIRE)--October 26, 2009--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the third quarter 2009.
Third Quarter 2009 Highlights:
- Record organic growth in customer deposits of $388 million during the quarter to $4.73 billion
- Record customer funds (sum of deposits and customer repurchase agreements) of $5.00 billion, including organic growth of $352 million during the quarter
- Regulatory capital of $669 million and a Total Risk-Based Capital ratio of 14.7 percent, well above the percentage considered “well capitalized” by federal banking standards
- Record liquidity of $795 million held in cash and due from banks
- Net revenue (sum of net interest income and non-interest income, excluding securities activities and losses on the sale of assets) of $57.1 million, down 1.5% from $58.0 million in the second quarter 2009 and down 0.3% from $57.3 million for the third quarter 2008
- Interest margin of 3.69% during the quarter, including 42 basis point effect from record cash position, compared to 4.17% in second quarter 2009 and 4.36% in third quarter 2008
- Incurred a net loss of $23.9 million in the third quarter 2009, compared to $14.1 million net loss in the second quarter 2009 and $94.7 million net loss in the third quarter 2008
- Diluted net loss per common share of $0.37
Financial Performance
Western Alliance Bancorporation reported a net loss of $23.9 million in the third quarter 2009, including a reserve build of $20.0 million, net losses on the sale of assets of $7.3 million, and net gains from securities activities of $5.0 million. The net loss on asset sales includes $3.4 million in write downs on four bank-owned premises. These bank-owned premises are being consolidated into other branch facilities as part of the Company’s efficiency improvement plan. The net gain from securities was primarily from sales of some adjustable rate preferred stock, which had been previously impaired.
Total loans declined $61 million to $3.97 billion at September 30, 2009 from $4.03 billion on June 30, 2009 and increased $21 million from $3.95 billion at September 30, 2008.
Customer funds increased $344 million to $5.00 billion at September 30, 2009 from June 30, 2009, comprised of a $380 million increase in deposits and a $36 million decrease in customer repurchase agreements. From September 30, 2008, customer funds increased $1.25 billion, comprised of a $1.28 billion increase in deposits and a $31 million decrease in customer repurchase agreements. Non-interest bearing title company deposits declined $33 million to $105 million during the 12 months ended September 30, 2009 and decreased $3 million from June 30, 2009.
Robert Sarver, Chairman and Chief Executive Officer of Western Alliance, remarked, “We continue to see the impact of the recession in our particularly hard hit markets on our performance. While non-performing assets continue to rise due to falling collateral values, we have increased our reserve build by $20 million, are consolidating bank branches where appropriate, and begun to execute strategic cost reduction programs. We are in process of merging four of our 41 offices into nearby facilities, as well as centralizing other operations. These efficiency improvements should be visible in the first quarter of 2010.
“These actions, coupled with the franchise value we are creating from our continued exceptional growth in deposits, which are up over $1 billion year to date, should better position the company for strong performance once economic conditions improve.”
Income Statement
Net interest income decreased 1.8 percent to $49.0 million in the third quarter 2009 from $49.9 million in the third quarter 2008. The net interest margin in the third quarter 2009 was 3.69 percent compared to 4.17 percent in the second quarter 2009 and 4.36 percent in the third quarter 2008. The decrease in the interest margin was largely due to increases in our record liquidity position. The effect of our short term investments, primarily balances on deposit at the Federal Reserve, has reduced our margin by approximately 42 basis points.
The provision for loan losses was $50.8 million for the third quarter 2009 compared to $37.6 million for the second quarter 2009 and $14.7 million for the third quarter 2008. Nonaccrual loans and repossessed assets were $239.1 million or 4.10 percent of total assets at September 30, 2009, compared with $158.5 million or 2.78 percent of total assets at June 30, 2009 and $40.6 million or 0.78 percent of total assets at September 30, 2008. Net loan charge-offs in the third quarter 2009 were $30.7 million or 3.05 percent of average loans (annualized), compared to net charge-offs of $30.6 million or 3.00 percent of average loans (annualized) for the second quarter 2009 and $16.3 million or 1.65 percent of average loans (annualized) for the third quarter 2008. Loans past due 90 days and still accruing totaled $2.5 million at quarter end, down from $36.1 million at June 30, 2009 and up from $0.7 million at September 30, 2008. Loans past due 30-89 days totaled $44.0 million at quarter end, down from $75.5 million at June 30, 2009 and up from $35.0 million at September 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 $8.1 million for the third quarter 2009, up 9.8 percent from $7.4 million for the same period in 2008. For the second quarter 2009, non-interest income was $7.2 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 $57.1 million for the third quarter 2009, down 0.3 percent from $57.3 million for the third quarter 2008. For the second quarter 2009, net revenue was $58.0 million.
Non-interest expense (excluding goodwill impairment charges) was $44.8 million for the third quarter 2009, up $4.2 from $40.6 million for the same period in 2008. For the second quarter 2009, non-interest expense was $48.6 million. The Company had 1,023 full-time equivalent employees at September 30, 2009, compared to 1,076 at June 30, 2009 and 1,017 one year ago.
The net loss increased $9.8 million to $23.9 million for the third quarter 2009 compared to a $14.1 million net loss for the second quarter 2009. Diluted loss per share was $0.37 compared with a $0.31 diluted loss per share for the second quarter 2009. Average diluted shares increased 34.7 percent to 71.7 million for the third quarter 2009 compared to 53.3 million for the second quarter primarily due to the common equity offering completed in May 2009.
Balance Sheet
Gross loans totaled $3.97 billion at September 30, 2009, a decrease of 1.5 percent from June 30, 2009 and an increase of 0.5 percent from $3.95 billion at September 30, 2008. At September 30, 2009 the allowance for loan losses was 2.62 percent of gross loans up from 2.09 percent at June 30, 2009 and 1.45 percent at September 30, 2008.
Customer funds totaled $5.00 billion at September 30, 2009, an increase of $344 million or 7.4 percent from June 30, 2009 and an increase of $1.25 billion or 33.4 percent from $3.74 billion at September 30, 2008.
Non-interest bearing deposits comprised 24.4 percent of total deposits at September 30, 2009. As of September 30, 2009, non-interest bearing deposits from title companies were 2.3 percent of total deposits, compared to 2.5 percent at June 30, 2009, and 4.0 percent at September 30, 2008.
At September 30, 2009 the Company’s loans were 79.4 percent of customer funds, compared to 105.4 percent one year earlier and 86.6 percent at June 30, 2009. Wholesale borrowings, including non-relationship brokered deposits, totaled $201 million at September 30, 2009, down $771 million from $972 million one year earlier, and down $196 million from $397 million at June 30, 2009.
Stockholders’ equity increased $125 million from September 30, 2008 and decreased $19 million from June 30, 2009 to $603 million at September 30, 2009. Our accumulated other comprehensive income increased to $6.0 million at September 30, 2009, compared to $0.9 million at June 30, 2009 due mainly to the recovery of market values of certain trust preferred securities. At September 30, 2009 tangible common equity was 7.3 percent of tangible assets and total risk-based capital was 14.7 percent of risk-weighted assets.
Total assets increased 11.5 percent to $5.83 billion at September 30, 2009 from $5.23 billion at September 30, 2008.
Operating Unit Highlights
Our Nevada banking operations, which are comprised of Bank of Nevada and First Independent Bank of Nevada, reported that loans declined $85 million during the third quarter and declined $145 million during the last 12 months to $2.49 billion at September 30, 2009. Customer funds increased $239 million and $565 million to $2.96 billion during the same periods, respectively. Net loss for our Nevada banks was $23.8 million during the third quarter 2009, compared with a net loss of $90.9 million during the third quarter 2008, including a $79.2 million goodwill impairment charge.
Our California banking operations, which are comprised of Torrey Pines Bank and Alta Alliance Bank, reported that loans declined $5 million during the third quarter 2009 and increased $56 million during the last 12 months to $768 million. Customer funds increased $44 million and $439 million to $1.12 billion during the same periods, respectively. Net income for our California banks was $0.3 million during the third quarter 2009 compared with a net loss of $2.9 million during the third quarter 2008.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported loan growth of $19 million during the third quarter 2009 and an increase of $85 million during the last 12 months to $708 million. Customer funds increased $60 million and $232 million to $928 million during the same periods, respectively. Net loss for our Arizona banks was $1.1 million during the third quarter 2009 compared with a net loss of $1.7 million during the third 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 $1.68 billion at September 30, 2009, down 14.7 percent from $1.97 billion at September 30, 2008. Assets under administration by the three entities decreased 12.0 percent from $2.16 billion at September 30, 2008 to $1.90 billion at September 30, 2009. Net loss for the Asset Management segment for the quarter ended September 30, 2009 was $0.4 million, including a goodwill impairment charge at Miller/Russell and Associates of $0.6 million.
Our affinity credit card business line, PartnersFirst, has customer receivables of $47 million, an increase of $24 million since September 30, 2008. Pretax losses incurred by PartnersFirst for the quarter ended September 30, 2009 were $3.2 million.
Attached to this press release is summarized financial information for the quarter ended September 30, 2009.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its third quarter 2009 financial results at 10:30 a.m. ET on Monday, October 26, 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 October 26 until 9 a.m. ET by dialing 1-877-344-7529 using the pass code 434903.
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 Nine Months | |||||||||||||||||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||||||||||||||||
| 2009 | 2008 | Change % | 2009 | 2008 | Change % | |||||||||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||||||||||
| ($ in millions) | ||||||||||||||||||||||||||||
| Total assets | $ | 5,831.3 | $ | 5,229.0 | 11.5 | % | ||||||||||||||||||||||
| Gross loans, including net deferred fees | 3,968.0 | 3,947.2 | 0.5 | |||||||||||||||||||||||||
| Securities and money market investments | 727.8 | 622.0 | 17.0 | |||||||||||||||||||||||||
| Federal funds sold and other | 5.0 | 35.1 | (85.8 | ) | ||||||||||||||||||||||||
| Customer funds | 4,996.3 | 3,744.4 | 33.4 | |||||||||||||||||||||||||
| Borrowings and brokered deposits | 99.4 | 865.1 | (88.5 | ) | ||||||||||||||||||||||||
| Junior subordinated and subordinated debt | 101.9 | 106.7 | (4.5 | ) | ||||||||||||||||||||||||
| Stockholders' equity | 602.9 | 477.9 | 26.2 | |||||||||||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||
| Interest income | $ | 67,746 | $ | 74,025 | (8.5 | ) | % | $ | 208,210 | $ | 223,503 | (6.8 | ) | % | ||||||||||||||
| Interest expense | 18,776 | 24,163 | (22.3 | ) | 57,709 | 78,777 | (26.7 | ) | ||||||||||||||||||||
| Net interest income | 48,970 | 49,862 | (1.8 | ) | 150,501 | 144,726 | 4.0 | |||||||||||||||||||||
| Provision for loan losses | 50,750 | 14,716 | 244.9 | 108,307 | 35,927 | 201.5 | ||||||||||||||||||||||
| Net interest income after provision for loan losses | (1,780 | ) | 35,146 | (105.1 | ) | 42,194 | 108,799 | (61.2 | ) | |||||||||||||||||||
| Securities gains (losses) and other valuation changes | 5,019 | (27,350 | ) | (118.4 | ) | (20,694 | ) | (30,338 | ) | (31.8 | ) | |||||||||||||||||
Net gain (loss) on sale of repossessed assets and bank premises | (7,283 | ) | (32 | ) | 22,659.4 | (16,193 | ) | 321 | (5,144.5 | ) | ||||||||||||||||||
| Other noninterest income | 8,142 | 7,412 | 9.8 | 22,167 | 22,429 | (1.2 | ) | |||||||||||||||||||||
| Noninterest expense | 45,428 | 119,924 | (62.1 | ) | 182,540 | 197,119 | (7.4 | ) | ||||||||||||||||||||
| Income (loss) before income taxes | (41,330 | ) | (104,748 | ) | (60.5 | ) | (155,066 | ) | (95,908 | ) | 61.7 | |||||||||||||||||
| Income tax expense (benefit) | (17,415 | ) | (10,040 | ) | 73.5 | (30,572 | ) | (7,757 | ) | 294.1 | ||||||||||||||||||
| Net income (loss) | $ | (23,915 | ) | $ | (94,708 | ) | (74.7 | ) | $ | (124,494 | ) | $ | (88,151 | ) | 41.2 | |||||||||||||
| Intangible asset amortization expense, net of tax | $ | 614 | $ | 598 | 2.7 | $ | 1,843 | $ | 1,706 | 8.0 | ||||||||||||||||||
| Diluted net income (loss) per common share | $ | (0.37 | ) | $ | (2.84 | ) | (87.0 | ) | $ | (2.42 | ) | $ | (2.86 | ) | (15.4 | ) | ||||||||||||
| Common Share Data: | ||||||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | (0.37 | ) | $ | (2.84 | ) | (87.0 | ) | % | $ | (2.42 | ) | $ | (2.86 | ) | (15.4 | ) | % | ||||||||||
| Book value per common share | 6.56 | 12.41 | (47.1 | ) | ||||||||||||||||||||||||
| Tangible book value per share (net of tax) | 5.94 | 8.44 | (29.6 | ) | ||||||||||||||||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||||||||||
| Basic | 71,697 | 33,299 | 115.3 | 54,471 | 30,867 | 76.5 | ||||||||||||||||||||||
| Diluted | 71,697 | 33,299 | 115.3 | 54,471 | 30,867 | 76.5 | ||||||||||||||||||||||
| Common shares outstanding | 72,489 | 38,499 | 88.3 | |||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
| Summary Consolidated Financial Data (continued) | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||
| At or for the Three Months | For the Nine Months | |||||||||||||||||||||||||||
| Ended Sept. 30, | Ended Sept. 30, | |||||||||||||||||||||||||||
| 2009 | 2008 | Change % | 2009 | 2008 | Change % | |||||||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||||||
| Return on average assets (1) | (1.63 | ) | % | (7.23 | ) | % | (77.5 | ) | % | (3.03 | ) | % | (2.27 | ) | % | 33.5 | % | |||||||||||
| Cash return on average tangible assets (1)(2) | (1.60 | ) | (7.43 | ) | (78.5 | ) | (3.02 | ) | (2.31 | ) | 30.7 | |||||||||||||||||
| Return on average stockholders' equity (1) | (14.78 | ) | (71.63 | ) | (79.4 | ) | (30.16 | ) | (23.06 | ) | 30.8 | |||||||||||||||||
| Cash return on average tangible stockholders' equity (1)(2) | (15.83 | ) | (104.79 | ) | (84.9 | ) | (33.23 | ) | (33.79 | ) | (1.7 | ) | ||||||||||||||||
| Net interest margin (1) | 3.69 | 4.36 | (15.4 | ) | 4.07 | 4.27 | (4.7 | ) | ||||||||||||||||||||
| Net interest spread | 3.26 | 3.87 | (15.8 | ) | 3.63 | 3.71 | (2.2 | ) | ||||||||||||||||||||
| Efficiency ratio - tax equivalent basis | 78.34 | 70.45 | 11.2 | 78.94 | 69.95 | 12.9 | ||||||||||||||||||||||
| Loan to deposit ratio | 83.50 | 112.49 | (25.8 | ) | ||||||||||||||||||||||||
| Capital Ratios: | ||||||||||||||||||||||||||||
| Tangible equity | 9.5 | % | 6.3 | % | 50.8 | % | ||||||||||||||||||||||
| Tangible common equity | 7.3 | 6.3 | 15.9 | |||||||||||||||||||||||||
| Tier 1 Leverage ratio | 9.6 | 8.3 | 15.7 | |||||||||||||||||||||||||
| Tier 1 Risk Based Capital | 12.1 | 8.9 | 36.0 | |||||||||||||||||||||||||
| Total Risk Based Capital | 14.7 | 11.4 | 28.9 | |||||||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||
| Net charge-offs to average loans outstanding (1) | 3.05 | % | 1.65 | % | 84.8 | % | 2.60 | % | 0.98 | % | 165.3 | % | ||||||||||||||||
| Nonaccrual loans to gross loans | 4.19 | 0.71 | 490.1 | |||||||||||||||||||||||||
| Nonaccrual loans and repossessed assets to total assets | 4.10 | 0.78 | 425.6 | |||||||||||||||||||||||||
| Loans past due 90 days and still accruing to total loans | 0.06 | 0.02 | 200.0 | |||||||||||||||||||||||||
| Allowance for loan losses to gross loans | 2.62 | 1.45 | 80.7 | |||||||||||||||||||||||||
| Allowance for loan losses to nonaccrual loans | 62.65 | 204.58 | (69.4 | ) | ||||||||||||||||||||||||
| =================================================== | ||||||||||||||||||||||||||||
| (1) Annualized for the three and nine-month periods ended September 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 Operations | ||||||||||||||||
| Unaudited | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | |||||||||||||||
| ($ in thousands, except per share data) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
| Interest income on: | ||||||||||||||||
| Loans, including fees | $ | 61,046 | $ | 64,977 | $ | 187,567 | $ | 193,498 | ||||||||
| Securities | 6,225 | 8,968 | 19,939 | 29,730 | ||||||||||||
| Federal funds sold and other | 475 | 80 | 704 | 275 | ||||||||||||
| Total interest income | 67,746 | 74,025 | 208,210 | 223,503 | ||||||||||||
| Interest expense on: | ||||||||||||||||
| Deposits | 15,678 | 16,844 | 46,817 | 53,566 | ||||||||||||
| Borrowings | 1,841 | 5,677 | 7,174 | 19,841 | ||||||||||||
| Junior subordinated and subordinated debt | 1,257 | 1,642 | 3,718 | 5,370 | ||||||||||||
| Total interest expense | 18,776 | 24,163 | 57,709 | 78,777 | ||||||||||||
| Net interest income | 48,970 | 49,862 | 150,501 | 144,726 | ||||||||||||
| Provision for loan losses | 50,750 | 14,716 | 108,307 | 35,927 | ||||||||||||
| Net interest income after provision for loan losses | (1,780 | ) | 35,146 | 42,194 | 108,799 | |||||||||||
| Mark-to-market gains (losses), net | 6,063 | 5,338 | 21,342 | 7,630 | ||||||||||||
| Securities impairment charges | (1,044 | ) | (32,688 | ) | (42,036 | ) | (37,968 | ) | ||||||||
| Net loss on repossessed assets and bank premises | (7,283 | ) | (32 | ) | (16,193 | ) | 321 | |||||||||
| Other income: | ||||||||||||||||
| Trust and investment advisory services | 2,369 | 2,668 | 6,967 | 8,199 | ||||||||||||
| Service charges | 2,212 | 1,586 | 5,874 | 4,424 | ||||||||||||
| Bank owned life insurance | 574 | 593 | 1,523 | 1,966 | ||||||||||||
| Other | 2,987 | 2,565 | 7,803 | 7,840 | ||||||||||||
| 8,142 | 7,412 | 22,167 | 22,429 | |||||||||||||
| Other expense: | ||||||||||||||||
| Compensation | 24,488 | 21,812 | 73,839 | 65,263 | ||||||||||||
| Occupancy | 5,428 | 5,280 | 15,953 | 15,487 | ||||||||||||
| Customer service | 2,827 | 910 | 8,777 | 3,223 | ||||||||||||
| Intangible amortization | 945 | 920 | 2,835 | 2,624 | ||||||||||||
| Goodwill impairment | 576 | 79,242 | 45,576 | 79,242 | ||||||||||||
| Other | 11,164 | 11,760 | 35,560 | 31,280 | ||||||||||||
| 45,428 | 119,924 | 182,540 | 197,119 | |||||||||||||
| Income (loss) before income taxes | (41,330 | ) | (104,748 | ) | (155,066 | ) | (95,908 | ) | ||||||||
| Income tax expense (benefit) | (17,415 | ) | (10,040 | ) | (30,572 | ) | (7,757 | ) | ||||||||
| Net income (loss) | $ | (23,915 | ) | $ | (94,708 | ) | $ | (124,494 | ) | $ | (88,151 | ) | ||||
| Preferred stock dividends | $ | 1,750 | - | 5,250 | - | |||||||||||
| Accretion on preferred stock discount | 689 | - | 2,045 | - | ||||||||||||
| Net income (loss) available to common stockholders | $ | (26,354 | ) | $ | (94,708 | ) | $ | (131,789 | ) | $ | (88,151 | ) | ||||
| Diluted earnings (loss) per share | $ | (0.37 | ) | $ | (2.84 | ) | $ | (2.42 | ) | $ | (2.86 | ) | ||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
Five Quarter Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| ($ in thousands, except per share data) | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, | |||||||||||||||
| Interest income on: | ||||||||||||||||||||
| Loans, including fees | $ | 61,046 | $ | 63,268 | $ | 63,253 | $ | 64,030 | $ | 64,977 | ||||||||||
| Securities | 6,225 | 6,822 | 6,892 | 8,011 | 8,968 | |||||||||||||||
| Federal funds sold and other | 475 | 206 | 23 | 47 | 80 | |||||||||||||||
| Total interest income | 67,746 | 70,296 | 70,168 | 72,088 | 74,025 | |||||||||||||||
| Interest expense on: | ||||||||||||||||||||
| Deposits | 15,678 | 16,026 | 15,113 | 15,185 | 16,183 | |||||||||||||||
| Borrowings | 1,841 | 2,271 | 3,062 | 4,834 | 6,338 | |||||||||||||||
| Junior subordinated and subordinated debt | 1,257 | 1,198 | 1,263 | 1,887 | �� | 1,642 | ||||||||||||||
| Total interest expense | 18,776 | 19,495 | 19,438 | 21,906 | 24,163 | |||||||||||||||
| Net interest income | 48,970 | 50,801 | 50,730 | 50,182 | 49,862 | |||||||||||||||
| Provision for loan losses | 50,750 | 37,573 | 19,984 | 32,262 | 14,716 | |||||||||||||||
| Net interest income after provision for loan losses | (1,780 | ) | 13,228 | 30,746 | 17,920 | 35,146 | ||||||||||||||
| Mark-to-market gains (losses), net | 6,063 | 11,264 | 4,015 | 3,314 | 5,251 | |||||||||||||||
| Securities impairment charges | (1,044 | ) | (2,587 | ) | (38,405 | ) | (118,864 | ) | (32,688 | ) | ||||||||||
| Net loss on repossessed assets and bank premises | (7,283 | ) | (3,974 | ) | (4,936 | ) | (1,000 | ) | (32 | ) | ||||||||||
| Other income: | ||||||||||||||||||||
| Trust and other fees | 2,369 | 2,361 | 2,237 | 2,290 | 2,668 | |||||||||||||||
| Service charges | 2,212 | 1,980 | 1,682 | 1,711 | 1,586 | |||||||||||||||
| Bank owned life insurance | 574 | 435 | 514 | 673 | 593 | |||||||||||||||
| Other | 2,987 | 2,392 | 2,424 | 2,469 | 2,601 | |||||||||||||||
| 8,142 | 7,168 | 6,857 | 7,143 | 7,448 | ||||||||||||||||
| Other expense: | ||||||||||||||||||||
| Compensation | 24,488 | 24,527 | 24,824 | 23,086 | 21,812 | |||||||||||||||
| Occupancy | 5,428 | 5,254 | 5,271 | 5,404 | 5,280 | |||||||||||||||
| Customer service | 2,827 | 3,465 | 2,485 | 934 | 910 | |||||||||||||||
| Intangible amortization | 945 | 945 | 945 | 1,007 | 920 | |||||||||||||||
| Goodwill impairment | 576 | - | 45,000 | 59,603 | 79,242 | |||||||||||||||
| Other | 11,164 | 14,425 | 9,971 | 13,197 | 11,709 | |||||||||||||||
| 45,428 | 48,616 | 88,496 | 103,231 | 119,873 | ||||||||||||||||
| Income (loss) before income taxes | (41,330 | ) | (23,517 | ) | (90,219 | ) | (194,718 | ) | (104,748 | ) | ||||||||||
| Income tax expense (benefit) | (17,415 | ) | (9,380 | ) | (3,777 | ) | (46,409 | ) | (10,040 | ) | ||||||||||
| Net income (loss) | $ | (23,915 | ) | $ | (14,137 | ) | $ | (86,442 | ) | $ | (148,309 | ) | $ | (94,708 | ) | |||||
| Preferred stock dividends | 1,750 | 1,750 | 1,750 | 778 | - | |||||||||||||||
| Accretion on preferred stock discount | 689 | 674 | 682 | 303 | - | |||||||||||||||
| Net income (loss) available to common stockholders | $ | (26,354 | ) | $ | (16,561 | ) | $ | (88,874 | ) | $ | (149,390 | ) | $ | (94,708 | ) | |||||
| Diluted earnings (loss) per share | $ | (0.37 | ) | $ | (0.31 | ) | $ | (2.33 | ) | $ | (3.94 | ) | $ | (2.84 | ) | |||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| ($ in millions) | 2009 | 2009 | 2009 | 2008 | 2008 | |||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and due from banks | $ | 752.9 | $ | 548.6 | $ | 224.3 | $ | 136.8 | $ | 137.8 | ||||||||||
| Federal funds sold and other | 5.0 | 20.3 | 3.3 | 3.2 | 35.1 | |||||||||||||||
| Cash and cash equivalents | 757.9 | 568.9 | 227.6 | 140.0 | 172.9 | |||||||||||||||
| Securities and money market investments | 727.8 | 725.7 | 583.6 | 565.4 | 622.0 | |||||||||||||||
| Gross loans, including net deferred loan fees: | ||||||||||||||||||||
| Construction and land development | 685.2 | 727.4 | 793.5 | 820.9 | 804.9 | |||||||||||||||
| Commercial real estate | 1,925.7 | 1,866.0 | 1,827.3 | 1,763.4 | 1,673.9 | |||||||||||||||
| Residential real estate | 600.4 | 595.0 | 586.5 | 589.2 | 571.9 | |||||||||||||||
| Commercial | 687.7 | 768.9 | 806.8 | 860.3 | 842.8 | |||||||||||||||
| Consumer | 77.3 | 80.5 | 71.2 | 71.1 | 62.0 | |||||||||||||||
| Net deferred fees | (8.3 | ) | (8.9 | ) | (9.5 | ) | (9.2 | ) | (8.3 | ) | ||||||||||
| 3,968.0 | 4,028.9 | 4,075.8 | 4,095.7 | 3,947.2 | ||||||||||||||||
| Less: Allowance for loan losses | (104.2 | ) | (84.1 | ) | (77.2 | ) | (74.8 | ) | (57.1 | ) | ||||||||||
| Loans, net | 3,863.8 | 3,944.8 | 3,998.6 | 4,020.9 | 3,890.1 | |||||||||||||||
| Premises and equipment, net | 128.6 | 136.7 | 138.1 | 140.9 | 142.9 | |||||||||||||||
| Bank owned life insurance | 91.8 | 91.3 | 90.8 | 90.7 | 90.0 | |||||||||||||||
| Goodwill and other intangibles | 51.6 | 53.1 | 54.1 | 100.0 | 160.6 | |||||||||||||||
| Other assets | 209.8 | 181.0 | 174.5 | 184.9 | 150.5 | |||||||||||||||
| Total assets | $ | 5,831.3 | $ | 5,701.5 | $ | 5,267.3 | $ | 5,242.8 | $ | 5,229.0 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest bearing demand deposits | $ | 1,154.8 | $ | 1,108.6 | $ | 1,039.2 | $ | 1,010.6 | $ | 985.0 | ||||||||||
| Interest bearing deposits: | ||||||||||||||||||||
| Demand | 339.4 | 296.3 | 260.6 | 253.5 | 237.4 | |||||||||||||||
| Savings and money market | 1,802.5 | 1,704.2 | 1,579.0 | 1,342.8 | 1,377.8 | |||||||||||||||
| Time, $100 and over | 875.0 | 714.7 | 642.0 | 647.4 | 590.4 | |||||||||||||||
| Other time | 560.5 | 528.4 | 500.7 | 338.1 | 258.4 | |||||||||||||||
| 4,732.2 | 4,352.2 | 4,021.5 | 3,592.4 | 3,449.0 | ||||||||||||||||
| Customer repurchase agreements | 264.1 | 300.4 | 272.3 | 321.0 | 295.4 | |||||||||||||||
| Total customer funds | 4,996.3 | 4,652.6 | 4,293.8 | 3,913.4 | 3,744.4 | |||||||||||||||
| Wholesale brokered deposits | 20.0 | 40.0 | 40.0 | 60.0 | 60.0 | |||||||||||||||
| Borrowings | 79.4 | 254.4 | 370.8 | 637.1 | 805.1 | |||||||||||||||
| Junior subordinated and subordinated debt | 101.9 | 102.3 | 102.8 | 103.0 | 106.7 | |||||||||||||||
| Accrued interest payable and other liabilities | 30.8 | 30.6 | 32.9 | 33.8 | 34.9 | |||||||||||||||
| Total liabilities | 5,228.4 | 5,079.9 | 4,840.3 | 4,747.3 | 4,751.1 | |||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Common stock and additional paid-in capital | 681.9 | 680.1 | 486.2 | 484.2 | 466.0 | |||||||||||||||
| Preferred Stock | 127.2 | 126.6 | 125.9 | 125.2 | - | |||||||||||||||
| Retained earnings (deficit) | (212.2 | ) | (186.0 | ) | (169.4 | ) | (85.4 | ) | 64.0 | |||||||||||
| Accumulated other comprehensive loss | 6.0 | 0.9 | (15.7 | ) | (28.5 | ) | (52.1 | ) | ||||||||||||
| Total stockholders' equity | 602.9 | 621.6 | 427.0 | 495.5 | 477.9 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,831.3 | $ | 5,701.5 | $ | 5,267.3 | $ | 5,242.8 | $ | 5,229.0 | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Changes in the Allowance For Loan Losses | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| ($ in thousands) | 2009 | 2009 | 2009 | 2008 | 2008 | |||||||||||||||
| Balance, beginning of period | $ | 84,143 | $ | 77,184 | $ | 74,827 | $ | 57,097 | $ | 58,688 | ||||||||||
| Provisions charged to operating expenses | 50,750 | 37,573 | 19,984 | 32,262 | 14,716 | |||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||
| Construction and land development | 608 | 212 | - | 28 | 4 | |||||||||||||||
| Commercial real estate | 139 | - | - | 3 | - | |||||||||||||||
| Residential real estate | 11 | 143 | 51 | 12 | 31 | |||||||||||||||
| Commercial and industrial | 442 | 501 | 370 | 131 | 115 | |||||||||||||||
| Consumer | 6 | 42 | 29 | 13 | 12 | |||||||||||||||
| Total recoveries | 1,206 | 898 | 450 | 187 | 162 | |||||||||||||||
Loans charged-off: | ||||||||||||||||||||
| Construction and land development | 13,717 | 10,381 | 1,850 | 2,197 | 10,113 | |||||||||||||||
| Commercial real estate | 3,125 | 6,310 | 1,117 | 1,364 | 1,366 | |||||||||||||||
| Residential real estate | 5,619 | 6,427 | 6,127 | 3,387 | 758 | |||||||||||||||
| Commercial and industrial | 8,329 | 7,355 | 7,965 | 6,975 | 4,173 | |||||||||||||||
| Consumer | 1,128 | 1,039 | 1,018 | 796 | 59 | |||||||||||||||
| Total charged-off | 31,918 | 31,512 | 18,077 | 14,719 | 16,469 | |||||||||||||||
| Net charge-offs | 30,712 | 30,614 | 17,627 | 14,532 | 16,307 | |||||||||||||||
| Balance, end of period | $ | 104,181 | $ | 84,143 | $ | 77,184 | $ | 74,827 | $ | 57,097 | ||||||||||
| Net charge-offs (annualized) to average loans outstanding | 3.05 | % | 3.00 | % | 1.72 | % | 1.45 | % | 1.66 | % | ||||||||||
| Allowance for loan losses to gross loans | 2.62 | 2.09 | 1.89 | 1.83 | 1.45 | |||||||||||||||
| Nonaccrual loans | $ | 166,286 | $ | 116,377 | $ | 98,653 | $ | 58,302 | $ | 27,909 | ||||||||||
| Repossessed assets | 72,807 | 42,137 | 15,455 | 14,545 | 12,681 | |||||||||||||||
| Loans past due 90 days, still accruing | 2,538 | 36,060 | 53,239 | 11,515 | 686 | |||||||||||||||
| Loans past due 30 to 89 days, still accruing | 43,980 | 75,480 | 53,123 | 45,193 | 34,990 | |||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2009 | 2008 | |||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||||
| Earning Assets | ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | ||||||||||||||||
| Securities (1) | $ | 600.8 | $ | 5,781 | 3.91 | % | $ | 611.5 | $ | 8,355 | 5.74 | % | ||||||||
| Federal funds sold & other | 35.6 | 475 | 5.29 | % | 15.8 | 80 | 2.01 | % | ||||||||||||
| Loans (1) | 4,027.0 | 61,046 | 6.01 | % | 3,926.0 | 64,977 | 6.58 | % | ||||||||||||
| Short term investments | 570.3 | 334 | 0.23 | % | - | - | 0.00 | % | ||||||||||||
| Restricted stock | 41.1 | 110 | 1.06 | % | 40.9 | 613 | 5.96 | % | ||||||||||||
| Total earnings assets | 5,274.8 | 67,746 | 5.11 | % | 4,594.2 | 74,025 | 6.45 | % | ||||||||||||
| Non-earning Assets | ||||||||||||||||||||
| Cash and due from banks | 220.0 | 118.2 | ||||||||||||||||||
| Allowance for loan losses | (89.5 | ) | (60.4 | ) | ||||||||||||||||
| Bank owned life insurance | 91.4 | 89.6 | ||||||||||||||||||
| Other assets | 336.9 | 467.9 | ||||||||||||||||||
| Total assets | $ | 5,833.6 | $ | 5,209.5 | ||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Sources of Funds | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Interest-bearing checking | $ | 326.9 | $ | 928 | 1.13 | % | $ | 252.9 | $ | 969 | 1.52 | % | ||||||||
| Savings and money market | 1,777.4 | 6,700 | 1.50 | % | 1,538.7 | 8,666 | 2.24 | % | ||||||||||||
| Time deposits | 1,343.5 | 8,050 | 2.38 | % | 792.9 | 6,548 | 3.29 | % | ||||||||||||
| 3,447.8 | 15,678 | 1.80 | % | 2,584.5 | 16,183 | 2.49 | % | |||||||||||||
| Borrowings | 467.8 | 1,841 | 1.56 | % | 1,020.5 | 6,338 | 2.47 | % | ||||||||||||
| Junior subordinated and subordinated debt | 102.3 | 1,257 | 4.87 | % | 114.2 | 1,642 | 5.72 | % | ||||||||||||
| Total interest-bearing liabilities | 4,017.9 | 18,776 | 1.85 | % | 3,719.2 | 24,163 | 2.58 | % | ||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,141.3 | 943.3 | ||||||||||||||||||
| Other liabilities | 32.4 | 21.0 | ||||||||||||||||||
| Stockholders’ equity | 642.0 | 526.0 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,833.6 | $ | 5,209.5 | ||||||||||||||||
| Net interest income and margin | $ | 48,970 | 3.69 | % | $ | 49,862 | 4.36 | % | ||||||||||||
| Net interest spread | 3.26 | % | 3.87 | % | ||||||||||||||||
| (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $141 and $470 for the third quarter ended 2009 and 2008, respectively. | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||
| Operating Segment Results | Inter- | |||||||||||||||||||||||||||||||
| Unaudited | segment | Consoli- | ||||||||||||||||||||||||||||||
| Asset | Credit Card | Elimi- | dated | |||||||||||||||||||||||||||||
| ($ in millions) | Nevada | California | Arizona | Management | Services | Other | nations | Company | ||||||||||||||||||||||||
| At Sept. 30, 2009: | ||||||||||||||||||||||||||||||||
| Assets | $ | 3,457.1 | $ | 1,217.5 | $ | 1,024.9 | $ | 19.3 | $ | 47.4 | $ | 118.6 | $ | (53.5 | ) | $ | 5,831.3 | |||||||||||||||
| Gross loans and deferred fees | 2,488.8 | 767.9 | 707.6 | - | 46.7 | - | (43.0 | ) | 3,968.0 | |||||||||||||||||||||||
| Less: Allowance for loan losses | (74.9 | ) | (9.4 | ) | (16.6 | ) | - | (3.3 | ) | - | - | (104.2 | ) | |||||||||||||||||||
| Net loans | 2,413.9 | 758.5 | 691.0 | - | 43.4 | - | (43.0 | ) | 3,863.8 | |||||||||||||||||||||||
| Customer deposits | 2,772.9 | 1,089.5 | 877.4 | - | - | - | (7.6 | ) | 4,732.2 | |||||||||||||||||||||||
| Stockholders' equity | 315.7 | 125.8 | 73.6 | 17.1 | (5.2 | ) | 81.4 | (5.5 | ) | 602.9 | ||||||||||||||||||||||
| No. of branches | 21 | 9 | 11 | - | - | - | - | 41 | ||||||||||||||||||||||||
| No. of FTE | 583 | 182 | 145 | 43 | 29 | 41 | - | 1,023 | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended Sept. 30, 2009: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 29,918 | $ | 10,266 | $ | 8,160 | $ | 12 | $ | 629 | $ | (15 | ) | $ | - | $ | 48,970 | |||||||||||||||
| Provision for loan losses | 41,931 | 2,028 | 4,866 | - | 1,925 | - | - | 50,750 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | (12,013 | ) | 8,238 | 3,294 | 12 | (1,296 | ) | (15 | ) | - | (1,780 | ) | ||||||||||||||||||||
Securities gains (losses) and other valuation changes | 744 | 176 | 66 | 75 | - | 1,818 | 2,140 | 5,019 | ||||||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (6,658 | ) | - | (625 | ) | - | - | - | - | (7,283 | ) | |||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 3,457 | 897 | 1,610 | 2,377 | 614 | 388 | (1,201 | ) | 8,142 | |||||||||||||||||||||||
| Noninterest expense | (23,132 | ) | (8,951 | ) | (6,319 | ) | (2,640 | ) | (2,515 | ) | (3,072 | ) | 1,201 | (45,428 | ) | |||||||||||||||||
| Income (loss) before income taxes | (37,602 | ) | 360 | (1,974 | ) | (176 | ) | (3,197 | ) | (881 | ) | 2,140 | (41,330 | ) | ||||||||||||||||||
| Income tax expense (benefit) | (13,784 | ) | 26 | (849 | ) | 217 | (1,340 | ) | (287 | ) | (1,398 | ) | (17,415 | ) | ||||||||||||||||||
| Net income (loss) | $ | (23,818 | ) | $ | 334 | $ | (1,125 | ) | $ | (393 | ) | $ | (1,857 | ) | $ | (594 | ) | $ | 3,538 | $ | (23,915 | ) | ||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Nine Months Ended Sept. 30, 2009: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 94,186 | $ | 31,781 | $ | 24,525 | $ | 43 | $ | 1,459 | $ | (1,493 | ) | $ | - | $ | 150,501 | |||||||||||||||
| Provision for loan losses | 86,580 | 4,818 | 13,081 | - | 3,828 | - | - | 108,307 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 7,606 | 26,963 | 11,444 | 43 | (2,369 | ) | (1,493 | ) | - | 42,194 | ||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (5,498 | ) | 916 | 270 | 75 | - | 825 | (17,282 | ) | (20,694 | ) | |||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (11,748 | ) | - | (4,445 | ) | - | - | - | - | (16,193 | ) | |||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 9,362 | 2,552 | 4,156 | 6,991 | 1,307 | 1,098 | (3,299 | ) | 22,167 | |||||||||||||||||||||||
| Noninterest expense | (115,812 | ) | (29,661 | ) | (20,669 | ) | (6,953 | ) | (7,829 | ) | (6,918 | ) | 5,302 | (182,540 | ) | |||||||||||||||||
| Income (loss) before income taxes | (116,090 | ) | 770 | (9,244 | ) | 156 | (8,891 | ) | (6,488 | ) | (15,279 | ) | (155,066 | ) | ||||||||||||||||||
| Income tax expense (benefit) | (25,165 | ) | 662 | (3,577 | ) | 459 | (3,726 | ) | (2,426 | ) | 3,201 | (30,572 | ) | |||||||||||||||||||
| Net income (loss) | $ | (90,925 | ) | $ | 108 | $ | (5,667 | ) | $ | (303 | ) | $ | (5,165 | ) | $ | (4,062 | ) | $ | (18,480 | ) | $ | (124,494 | ) | |||||||||
| 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 Sept. 30, 2008: | ||||||||||||||||||||||||||||||||
| Assets | $ | 3,596.2 | $ | 917.4 | $ | 853.4 | $ | 18.8 | $ | 24.2 | $ | 24.8 | $ | (205.8 | ) | $ | 5,229.0 | |||||||||||||||
| Gross loans and deferred fees | 2,633.6 | 711.6 | 622.2 | - | 22.8 | - | (43.0 | ) | 3,947.2 | |||||||||||||||||||||||
| Less: Allowance for loan losses | (40.5 | ) | (7.7 | ) | (8.2 | ) | - | (0.7 | ) | - | - | (57.1 | ) | |||||||||||||||||||
| Net loans | 2,593.1 | 703.9 | 614.0 | - | 22.1 | - | (43.0 | ) | 3,890.1 | |||||||||||||||||||||||
| Customer deposits | 2,151.0 | 666.2 | 654.6 | - | - | - | (22.8 | ) | 3,449.0 | |||||||||||||||||||||||
| Stockholders' equity | 355.0 | 73.0 | 58.7 | 17.1 | - | (25.9 | ) | - | 477.9 | |||||||||||||||||||||||
| No. of branches | 21 | 9 | 11 | - | - | - | - | 41 | ||||||||||||||||||||||||
| No. of FTE | 597 | 154 | 144 | 46 | 38 | 38 | - | 1,017 | ||||||||||||||||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended Sept. 30, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 33,069 | $ | 10,048 | $ | 7,597 | $ | 15 | $ | 139 | $ | (1,006 | ) | $ | - | $ | 49,862 | |||||||||||||||
| Provision for loan losses | 11,024 | 1,427 | 2,036 | - | 229 | - | - | 14,716 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 22,045 | 8,621 | 5,561 | 15 | (90 | ) | (1,006 | ) | - | 35,146 | ||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (23,833 | ) | (7,402 | ) | (3,757 | ) | - | - | 7,642 | - | (27,350 | ) | ||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (32 | ) | - | - | - | - | - | - | (32 | ) | ||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 2,883 | 542 | 1,510 | 2,726 | 295 | 309 | (853 | ) | 7,412 | |||||||||||||||||||||||
| Noninterest expense | (98,731 | ) | (6,707 | ) | (6,154 | ) | (2,251 | ) | (4,448 | ) | (2,486 | ) | 853 | (119,924 | ) | |||||||||||||||||
| Income (loss) before income taxes | (97,668 | ) | (4,946 | ) | (2,840 | ) | 490 | (4,243 | ) | 4,459 | - | (104,748 | ) | |||||||||||||||||||
| Income tax expense (benefit) | (6,769 | ) | (2,090 | ) | (1,149 | ) | 223 | (1,772 | ) | 1,517 | - | (10,040 | ) | |||||||||||||||||||
| Net income (loss) | $ | (90,899 | ) | $ | (2,856 | ) | $ | (1,691 | ) | $ | 267 | $ | (2,471 | ) | $ | 2,942 | $ | - | $ | (94,708 | ) | |||||||||||
| ($ in thousands) | ||||||||||||||||||||||||||||||||
| Nine Months Ended Sept. 30, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 98,106 | $ | 27,855 | $ | 22,238 | $ | 60 | $ | 73 | $ | (3,606 | ) | $ | - | $ | 144,726 | |||||||||||||||
| Provision for loan losses | 28,271 | 3,444 | 3,521 | - | 691 | - | - | 35,927 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 69,835 | 24,411 | 18,717 | 60 | (618 | ) | (3,606 | ) | - | 108,799 | ||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (33,778 | ) | (7,785 | ) | (4,332 | ) | - | - | 15,557 | - | (30,338 | ) | ||||||||||||||||||||
| Net loss on repossessed assets, bank premises | (59 | ) | - | 380 | - | - | - | - | 321 | |||||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 9,099 | 1,557 | 4,511 | 8,252 | 597 | 673 | (2,260 | ) | 22,429 | |||||||||||||||||||||||
| Noninterest expense | (137,581 | ) | (19,502 | ) | (18,787 | ) | (7,223 | ) | (9,357 | ) | (6,929 | ) | 2,260 | (197,119 | ) | |||||||||||||||||
| Income (loss) before income taxes | (92,484 | ) | (1,319 | ) | 489 | 1,089 | (9,378 | ) | 5,695 | - | (95,908 | ) | ||||||||||||||||||||
| Income tax expense (benefit) | (5,796 | ) | (576 | ) | 64 | 517 | (3,905 | ) | 1,939 | - | (7,757 | ) | ||||||||||||||||||||
| Net income (loss) | $ | (86,688 | ) | $ | (743 | ) | $ | 425 | $ | 572 | $ | (5,473 | ) | $ | 3,756 | $ | - | $ | (88,151 | ) | ||||||||||||
CONTACT:
Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO
602-952-5445
or
INVESTOR CONTACT:
Dale Gibbons, CFO
702-252-6236