Exhibit 99.1
Western Alliance Reports Results for the Fourth Quarter 2009
LAS VEGAS--(BUSINESS WIRE)--January 21, 2010--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the fourth quarter 2009.
Full Year Highlights:
- Record growth in customer deposits of $1.11 billion for the year to $4.70 billion
- Modest decline in loans of $16 million to $4.08 billion
- Tangible common equity of $405 million, or 7.1 percent of tangible assets
- Total regulatory capital of $666 million and a Total Risk-Based Capital ratio of 14.4 percent
- Net interest income increase of $7.4 million to $202.3 million compared to $194.9 million for 2008
- Interest margin of 3.97% for the year, compared to 4.28% for 2008
- Incurred a net loss of $151.4 million for 2009, driven by credit costs and goodwill and securities impairments, compared to a $236.5 million net loss for 2008
- Diluted net loss per common share of $2.74 compared to diluted net loss of $7.27 for 2008
Fourth Quarter Highlights:
- Growth in loans of $112 million in the fourth quarter, compared to $61 million decline in third quarter 2009
- Modest decline in customer deposits of $30 million in the fourth quarter, compared to growth of $380 million in third quarter 2009
- Total non-accrual loans and repossessed assets of $237 million at December 31, 2009 marginally declined from $239 million at September 30
- Record net interest income of $51.8 million, up 5.8 percent from $49.0 for the third quarter 2009
- Interest margin of 3.84% during the quarter, compared to 3.69% for third quarter 2009
- Sale of the majority interest in Miller/Russell and Associates, Inc. for $2.7 million, retaining 25 percent minority interest and marketing relationship
- Reduction in full-time equivalent employees of 9 percent to 930, including 18 from Miller/Russell, compared to 1,023 at September 30, 2009
- Incurred a net loss of $26.9 million in the fourth quarter of 2009, including non-cash goodwill impairment of Shine Investment Advisory Services of $4.1 million, compared to net loss of $148.3 million for the fourth quarter of 2008 and $23.9 million loss for the third quarter 2009
- Diluted net loss per common share of $0.41 for the quarter compared to $3.94 diluted net loss per common share for the fourth of 2008 and $0.37 for the third quarter 2009
Financial Performance
Western Alliance Bancorporation reported a net loss of $26.9 million in the fourth quarter 2009, including a reserve build of $4.4 million, net losses on the sale of repossessed assets of $5.1 million, goodwill impairment of $4.1 million and net losses from securities activities of $3.6 million. The goodwill impairment was the result of our annual goodwill impairment testing which determined a decline in fair value of Shine Investment Advisory Services. At the end of December, the Company sold 75 percent of its ownership in Miller/Russell and Associates. The Company incurred a goodwill impairment of $0.6 million in the third quarter 2009 in anticipation of this transaction.
Total loans increased $112 million to $4.08 billion at December 31, 2009 from $3.97 billion on September 30, 2009. However, average loans declined $74 million to $3.95 billion during the fourth quarter from the third quarter 2009 as fourth quarter growth occurred in December.
Customer funds (sum of deposits and customer repurchase agreements) decreased $71 million to $4.93 billion at December 31, 2009 from September 30, 2009, comprised of a $30 million decrease in deposits and $41 million decrease in repurchase agreements. From December 31, 2008, customer funds increased $1.01 billion, comprised of a $1.11 billion increase in deposits and a $98 million decrease in customer repurchase agreements. Non-interest bearing title company deposits declined $25 million to $81 million during the quarter ended December 31, 2009 and decreased $4.5 million from December 31, 2008.
Robert Sarver, Chairman and Chief Executive Officer of Western Alliance, remarked, “Despite continued economic weakness in our markets, we made progress toward our performance improvement goals during the quarter by holding non-performing assets flat, posting record net interest income, reducing our expenses, and improving our core earning power as measured by our pretax, pre-provision operating income.
With our strong capital position and ample liquidity, we are strategically positioned to take advantage of quality loan and deposit opportunities in the new year as the economy continues to improve.”
Income Statement
Net interest income increased 3.2 percent to $51.8 million in the fourth quarter 2009 from $50.2 million in the fourth quarter 2008. The net interest margin in the fourth quarter 2009 was 3.84 percent compared to 3.69 percent in the third quarter 2009 and 4.30 percent in the fourth quarter 2008. The increase in the interest margin from the previous quarter was largely due to decreased deposit costs in the fourth quarter.
The provision for credit losses was $40.8 million for the fourth quarter 2009 compared to $50.8 million for the third quarter 2009 and $32.3 million for the fourth quarter 2008. Nonaccrual loans and repossessed assets were $237.0 million or 4.12 percent of total assets at December 31, 2009, compared with $239.1 million or 4.10 percent of total assets at September 30, 2009 and $72.8 million or 1.39 percent of total assets at December 31, 2008. Net loan charge-offs in the fourth quarter 2009 were $36.4 million or 3.68 percent of average loans (annualized), compared to net charge-offs of $30.7 million or 3.05 percent of average loans (annualized) for the third quarter 2009 and $14.5 million or 1.45 percent of average loans (annualized) for the fourth quarter 2008. Loans past due 90 days and still accruing totaled $5.5 million at year end, up from $2.5 million at September 30, 2009 and down from $11.5 million at December 31, 2008. Loans past due 30-89 days totaled $50.4 million at quarter end, up from $44.0 million at September 30, 2009 and up from $45.2 million at December 31, 2008.
Non-interest income, excluding decreases in fair values of financial instruments measured at fair value of $1.9 million, securities impairment charges of $1.7 million and losses on sales of repossessed assets of $5.1 million, was $8.4 million for the fourth quarter 2009. This performance was an increase of 17.7 percent from $7.1 million for the same period in 2008, excluding increases in fair values of financial instruments measured at fair value of $3.3 million, securities impairment charges of $118.9 million and losses on sales of repossessed assets of $1.0 million. For the third quarter 2009, non-interest income was $8.1 million, excluding increases in fair values of financial instruments of $6.1 million, securities impairment charges of $1.0 million and losses on sale of repossessed assets of $7.3 million. Revenue from Miller/Russell and Associates, which was divested at year end, was $1.2 million during the fourth quarter 2009.
Net revenue (sum of net interest income and non-interest income, excluding securities impairment charges of $1.7 million, net mark to market decreases of $1.9 million and net losses on sales of repossessed assets of $5.1 million) was $60.2 million for the fourth quarter 2009. This performance was an increase of 5.0 percent from net revenue of $57.3 million (sum of net interest income and non-interest income, excluding securities impairment charges of $118.9 million, net mark to market increases of $3.3 million and net losses on sales of repossessed assets of $1.0 million) for the fourth quarter 2008. For the third quarter 2009, net revenue (sum of net interest income and non-interest income, excluding securities impairment charges of $1.0 million, net mark to market increases of $6.1 million and net losses on sales of repossessed assets of $7.3 million) was $57.1 million.
Non-interest expense (excluding goodwill impairment charges of $4.1 million) was $44.6 million for the fourth quarter 2009, up 2.1 percent from non-interest expense (excluding goodwill impairment charges of $59.6 million) of $43.6 million for the same period in 2008. For the third quarter 2009, non-interest expense (excluding goodwill impairment charges of $0.6 million) was $44.9 million. The Company had 930 full-time equivalent employees at December 31, 2009, compared to 1,023 at September 30, 2009 and 1,020 one year ago. Eighteen of the fourth quarter decline in employees is due to the sale of Miller/Russell. Expense at Miller/Russell was $1.1 million during the quarter.
The net loss increased $3.0 million to $26.9 million for the fourth quarter 2009 compared to a $23.9 million net loss for the third quarter 2009. Diluted loss per share was $0.41 compared with a $0.37 diluted loss per share for the third quarter 2009. Six cents of the diluted loss per share was due to the goodwill impairment charge for Shine Investment Advisory Services.
Balance Sheet
Gross loans totaled $4.08 billion at December 31, 2009, an increase of 2.8 percent from September 30, 2009 and a decrease of 0.4 percent from $4.1 billion at December 31, 2008. At December 31, 2009 the allowance for loan losses was 2.66 percent of gross loans up from 2.62 percent at September 30, 2009 and up from 1.83 percent at December 31, 2008.
Customer funds totaled $4.93 billion at December 31, 2009, a decrease of $70.8 million or 1.4 percent from September 30, 2009 and an increase of $1.01 billion or 25.9 percent from $3.91 billion at December 31, 2008.
Non-interest bearing deposits increased to $1.12 billion at December 31, 2009 up $2.2 million from September 30, 2009 and up $146.4 million from December 31, 2008. Non-interest bearing deposits comprised 24.6 percent of total deposits at December 31, 2009. As of December 31, 2009, non-interest bearing deposits from title companies were 1.7 percent of total deposits, compared to 2.3 percent at September 30, 2009, and 2.4 percent at December 31, 2008.
At December 31, 2009 the Company’s loans were 82.8 percent of customer funds, compared to 104.7 percent one year earlier and 79.4 percent at September 30, 2009. Wholesale borrowings, including non-relationship brokered deposits, totaled $152 million at December 31, 2009, down $648 million from $800.1 million one year earlier, and down $49 million from $201 million at September 30, 2009.
Stockholders’ equity increased $80 million from December 31, 2008 and decreased $27 million from September 30, 2009 to $576 million at December 31, 2009. Our accumulated other comprehensive income decreased slightly to $5.4 million at December 31, 2009, compared to $6.0 million at September 30, 2009. At December 31, 2009 tangible common equity was 7.1 percent of tangible assets and total risk-based capital was 14.4 percent of risk-weighted assets.
Total assets increased 9.7 percent to $5.75 billion at December 31, 2009 from $5.24 billion at December 31, 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 $36.5 million during the fourth quarter and declined $206.6 million during the last 12 months to $2.45 billion at December 31, 2009. Customer funds increased $379.7 million to $2.78 billion since December 31, 2008. Net loss for our Nevada banks was $15.4 million during the fourth quarter 2009, compared with a net loss of $122.8 million during the fourth quarter 2008, which included a $59.6 million goodwill impairment charge.
Our California banking operations, which are comprised of Torrey Pines Bank and Alta Alliance Bank, reported that loans increased $106.7 million during the fourth quarter 2009 and increased $100.5 million during the last 12 months to $874.6 million. Customer funds decreased $2.7 million and increased $285.2 million to $1.12 billion during the same periods, respectively. Net loss for our California banks was $0.9 million during the fourth quarter 2009 compared with a net loss of $12.3 million during the fourth quarter 2008.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported loan growth of $37.9 million during the fourth quarter 2009 and an increase of $67.7 million during the last 12 months to $745.5 million. Customer funds increased $102.2 million and $286.6 million to $1.03 billion during the same periods, respectively. Net loss for our Arizona banks was $1.2 million during the fourth quarter 2009 compared with a net loss of $10.7 million during the fourth quarter 2008.
Our Asset Management business line, which includes the former Miller/Russell and Associates, Shine Investments Advisory Services and Premier Trust, had assets under management of $1.72 billion at December 31, 2009, up 3.6 percent from $1.66 billion at December 31, 2008. Assets under administration by the three entities increased 6.6 percent from $1.83 billion at December 31, 2008 to $1.96 billion at December 31, 2009. Net loss for the Asset Management segment for the quarter ended December 31, 2009 was $4.0 million, including a goodwill impairment charge at Shine Investment Advisory Services of $4.1 million.
Our affinity credit card business line, PartnersFirst, has customer receivables of $50.2 million, an increase of $22.4 million since December 31, 2008. Pretax losses incurred by PartnersFirst for the quarter ended December 31, 2009 were $3.0 million.
Attached to this press release is summarized financial information for the quarter ended December 31, 2009.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its fourth quarter 2009 financial results at 10:30 a.m. ET on Friday, January 22, 2010. 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 January 22 until 9 a.m. ET February 5th by dialing 1-877-344-7529 using the pass code 437111.
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, Shine Investment Advisory Services, Premier Trust, and PartnersFirst. These dynamic organizations provide a broad array of banking, leasing, trust, investment, and lending 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 Twelve Months | ||||||||||||||||||||||
| Ended December 31, | Ended December 31, | ||||||||||||||||||||||
| 2009 | 2008 | Change % | 2009 | 2008 | Change % | ||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| Selected Balance Sheet Data: | |||||||||||||||||||||||
| ($ in millions) | |||||||||||||||||||||||
| Total assets | $ | 5,753.2 | $ | 5,242.8 | 9.7 | % | |||||||||||||||||
| Loans, net of deferred fees | 4,079.6 | 4,095.7 | (0.4 | ) | |||||||||||||||||||
| Securities and money market investments | 864.8 | 565.4 | 53.0 | ||||||||||||||||||||
| Federal funds sold and other | 4.4 | 3.2 | 38.7 | ||||||||||||||||||||
| Customer funds | 4,925.5 | 3,913.4 | 25.9 | ||||||||||||||||||||
| Borrowings and brokered deposits | 49.4 | 697.1 | (92.9 | ) | |||||||||||||||||||
| Junior subordinated and subordinated debt | 102.4 | 103.0 | (0.5 | ) | |||||||||||||||||||
| Stockholders' equity | 575.7 | 495.5 | 16.2 | ||||||||||||||||||||
| Selected Income Statement Data: | |||||||||||||||||||||||
| ($ in thousands) | |||||||||||||||||||||||
| Interest income | $ | 67,813 | $ | 72,088 | (5.9 | ) | % | $ | 276,023 | $ | 295,591 | (6.6 | ) | % | |||||||||
| Interest expense | 16,025 | 21,906 | (26.8 | ) | 73,734 | 100,683 | (26.8 | ) | |||||||||||||||
| Net interest income | 51,789 | 50,182 | 3.2 | 202,290 | 194,908 | 3.8 | |||||||||||||||||
| Provision for loan losses | 40,792 | 32,262 | 26.4 | 149,099 | 68,189 | 118.7 | |||||||||||||||||
| Net interest income after provision for credit losses | 10,997 | 17,920 | (38.6 | ) | 53,191 | 126,719 | (58.0 | ) | |||||||||||||||
| Securities gains (losses) and other valuation changes | (3,622 | ) | (115,550 | ) | (96.9 | ) | (24,316 | ) | (146,054 | ) | (83.4 | ) | |||||||||||
| Net loss on sale of repossessed assets and bank premises | (5,081 | ) | (1,000 | ) | 408.1 | (21,274 | ) | (679 | ) | 3,033.1 | |||||||||||||
| Other non-interest income | 8,406 | 7,143 | 17.7 | 30,573 | 29,687 | 3.0 | |||||||||||||||||
| Non-interest expense | 48,646 | 103,231 | (52.9 | ) | 231,186 | 300,299 | (23.0 | ) | |||||||||||||||
| Loss before income taxes | (37,946 | ) | (194,718 | ) | (80.5 | ) | (193,012 | ) | (290,626 | ) | (33.6 | ) | |||||||||||
| Income tax benefit | (11,033 | ) | (46,409 | ) | (76.2 | ) | (41,605 | ) | (54,166 | ) | (23.2 | ) | |||||||||||
| Net loss | $ | (26,912 | ) | $ | (148,309 | ) | (81.9 | ) | % | $ | (151,406 | ) | $ | (236,460 | ) | (36.0 | ) | % | |||||
| Intangible asset amortization, net of tax | $ | 614 | $ | 655 | (6.1 | ) | % | $ | 2,457 | $ | 2,360 | 4.1 | % | ||||||||||
| Diluted net loss per common share | $ | (0.41 | ) | $ | (3.94 | ) | (89.6 | ) | % | $ | (2.74 | ) | $ | (7.27 | ) | (62.3 | ) | % | |||||
| Common Share Data: | |||||||||||||||||||||||
Diluted net loss per common share | $ | (0.41 | ) | $ | (3.94 | ) | (89.6 | ) | % | $ | (2.74 | ) | $ | (7.27 | ) | (62.3 | ) | % | |||||
| Book value per common share | $ | 6.18 | $ | 9.20 | (32.8 | ) | % | ||||||||||||||||
Tangible book value per share, net of tax (non-GAAP) (1) | $ | 5.66 | $ | 6.79 | (16.6 | ) | % | ||||||||||||||||
| Average shares outstanding (in thousands): | |||||||||||||||||||||||
| Basic | 71,788 | 37,939 | 89.2 | 58,836 | 32,652 | 80.2 | |||||||||||||||||
| Diluted | 71,788 | 39,087 | 83.7 | 58,836 | 32,652 | 80.2 | |||||||||||||||||
| Common shares outstanding | 72,504 | 38,601 | 87.8 | ||||||||||||||||||||
(1) Tangible book value per share (net of tax) is a non-GAAP ratio that represents stockholders' equity less intangibles, adjusted for deferred taxes related to intangibles, divided by the shares outstanding at the end of the period. Tangible assets as of December 31, 2009 and December 31, 2008, adjusted for deferred taxes, were $5.72 billion and $5.15 billion, respectively. We believe this ratio improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. | |||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||
| Summary Consolidated Financial Data (continued) | |||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||
| At or for the Three Months | For the Twelve Months | ||||||||||||||||||||||
| Ended December 31, | Ended December 31, | ||||||||||||||||||||||
| 2009 | 2008 | Change % | 2009 | 2008 | Change % | ||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| Selected Performance Ratios: | |||||||||||||||||||||||
| Return on average assets (1) | (1.83 | ) | % | (11.22 | ) | % | (83.7 | ) | % | (2.72 | ) | % | (4.55 | ) | % | (40.2 | ) | % | |||||
| Return on average stockholders' equity (1) | (17.57 | ) | (113.55 | ) | (84.5 | ) | (26.75 | ) | (46.11 | ) | (42.0 | ) | |||||||||||
| Net interest margin (1) | 3.84 | 4.30 | (10.7 | ) | 3.97 | 4.28 | (7.2 | ) | |||||||||||||||
| Net interest spread | 3.45 | 3.85 | (10.4 | ) | 3.53 | 3.75 | (5.9 | ) | |||||||||||||||
| Efficiency ratio - tax equivalent basis | 73.69 | 75.48 | (2.4 | ) | 77.55 | 71.30 | 8.8 | ||||||||||||||||
| Loan to deposit ratio | 86.39 | 112.14 | (23.0 | ) | |||||||||||||||||||
| Capital Ratios: | |||||||||||||||||||||||
| Tangible equity (non-GAAP) (2) | 9.3 | % | 7.7 | % | 20.8 | % | |||||||||||||||||
| Tangible common equity (non-GAAP) (3) | 7.1 | 5.3 | 34.0 | ||||||||||||||||||||
| Tier 1 Leverage ratio | 9.3 | 8.9 | 4.5 | ||||||||||||||||||||
| Tier 1 Risk Based Capital | 11.8 | 9.8 | 20.4 | ||||||||||||||||||||
| Total Risk Based Capital | 14.4 | 12.3 | 17.1 | ||||||||||||||||||||
| Asset Quality Ratios: | |||||||||||||||||||||||
| Net charge-offs to average loans outstanding (1) | 3.68 | % | 1.45 | % | 153.8 | % | 3.24 | % | 1.10 | % | 194.5 | % | |||||||||||
| Nonaccrual loans to gross loans | 3.77 | 1.42 | 165.5 | ||||||||||||||||||||
| Nonaccrual loans and repossessed assets to total assets | 4.12 | 1.39 | 196.4 | ||||||||||||||||||||
| Loans past due 90 days and still accruing to total loans | 0.14 | 0.31 | (54.8 | ) | |||||||||||||||||||
| Allowance for loan losses to gross loans | 2.66 | 1.83 | 45.4 | ||||||||||||||||||||
| Allowance for loan losses to nonaccrual loans | 70.67 | 128.34 | (44.9 | ) | |||||||||||||||||||
| |||||||||||||||||||||||
| (1) Annualized for the three month periods ended December 31, 2009 and 2008. | |||||||||||||||||||||||
(2) Tangible equity is a non-GAAP ratio of tangible equity to tangible assets. Tangible equity as of December 31, 2009 and December 31, 2008 was $532.5 million and $395.5 million, respectively. Tangible assets as of December 31, 2009 and December 31, 2008 were $5.72 billion and $5.15 billion, respectively. We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength. | |||||||||||||||||||||||
(3) Tangible common equity is a non-GAAP ratio of tangible equity to tangible assets, excluding our preferred stock. Tangible common equity as of December 31, 2009 and December 31, 2008 was $404.7 million and $270.3 million, respectively. Tangible assets as of December 31, 2009 and December 31, 2008 were $5.72 billion and $5.15 billion, respectively. We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength. | |||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| Unaudited | Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Loans | $ | 60,532 | $ | 64,030 | $ | 248,433 | $ | 257,528 | ||||||||
| Investment securities | 6,621 | 8,011 | 26,560 | 37,741 | ||||||||||||
| Federal funds sold and other | 660 | 47 | 1,030 | 322 | ||||||||||||
| Total interest income | 67,813 | 72,088 | 276,023 | 295,591 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 13,588 | 15,185 | 60,794 | 69,136 | ||||||||||||
| Borrowings | 1,189 | 4,834 | 7,974 | 24,290 | ||||||||||||
| Junior subordinated and subordinated debt | 1,248 | 1,887 | 4,966 | 7,257 | ||||||||||||
| Total interest expense | 16,025 | 21,906 | 73,734 | 100,683 | ||||||||||||
| Net interest income | 51,789 | 50,182 | 202,290 | 194,908 | ||||||||||||
| Provision for credit losses | 40,792 | 32,262 | 149,099 | 68,189 | ||||||||||||
| Net interest income after provision for credit losses | 10,997 | 17,920 | 53,191 | 126,719 | ||||||||||||
| Mark-to-market gains (losses), net | (1,874 | ) | 3,314 | 19,468 | 10,778 | |||||||||||
| Securities impairment charges | (1,748 | ) | (118,864 | ) | (43,784 | ) | (156,832 | ) | ||||||||
| Net loss on repossessed assets and bank premises | (5,081 | ) | (1,000 | ) | (21,274 | ) | (679 | ) | ||||||||
| Other non-interest income: | ||||||||||||||||
| Trust and investment advisory services | 2,320 | 2,290 | 9,287 | 10,489 | ||||||||||||
| Service charges | 2,298 | 1,711 | 8,172 | 6,135 | ||||||||||||
| Bank owned life insurance | 669 | 673 | 2,192 | 2,639 | ||||||||||||
| Other | 3,120 | 2,469 | 10,923 | 10,424 | ||||||||||||
| 8,406 | 7,143 | 30,573 | 29,687 | |||||||||||||
| Non-interest expenses: | ||||||||||||||||
| Compensation | 21,627 | 23,086 | 95,466 | 88,349 | ||||||||||||
| Occupancy | 5,096 | 5,404 | 21,049 | 20,891 | ||||||||||||
| Customer service | 3,339 | 934 | 12,116 | 6,817 | ||||||||||||
| Intangible amortization | 945 | 1,007 | 3,780 | 3,631 | ||||||||||||
| Goodwill impairment | 4,095 | 59,603 | 49,671 | 138,844 | ||||||||||||
| Other | 13,544 | 13,197 | 49,104 | 41,767 | ||||||||||||
| 48,646 | 103,231 | 231,186 | 300,299 | |||||||||||||
| Loss before income taxes | (37,946 | ) | (194,718 | ) | (193,012 | ) | (290,626 | ) | ||||||||
| Income tax benefit | (11,033 | ) | (46,409 | ) | (41,605 | ) | (54,166 | ) | ||||||||
| Net loss | $ | (26,912 | ) | $ | (148,309 | ) | $ | (151,406 | ) | $ | (236,460 | ) | ||||
| Preferred stock dividends | 1,750 | 778 | 7,000 | 778 | ||||||||||||
| Accretion on preferred stock discount | 697 | 303 | 2,742 | 303 | ||||||||||||
| Net loss available to common stockholders | $ | (29,359 | ) | $ | (149,390 | ) | $ | (161,148 | ) | $ | (237,541 | ) | ||||
| Loss per share | $ | (0.41 | ) | $ | (3.94 | ) | $ | (2.74 | ) | $ | (7.27 | ) | ||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
| 2009 | 2009 | 2009 | 2009 | 2008 | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 60,532 | $ | 61,380 | $ | 63,268 | $ | 63,253 | $ | 64,030 | ||||||||||
| Investment securities | 6,621 | 6,225 | 6,822 | 6,892 | 8,011 | |||||||||||||||
| Federal funds sold and other | 660 | 141 | 206 | 23 | 47 | |||||||||||||||
| Total interest income | 67,813 | 67,746 | 70,296 | 70,168 | 72,088 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 13,588 | 16,067 | 16,026 | 15,113 | 15,185 | |||||||||||||||
| Borrowings | 1,189 | 1,452 | 2,271 | 3,062 | 4,834 | |||||||||||||||
| Junior subordinated and subordinated debt | 1,248 | 1,257 | 1,198 | 1,263 | 1,887 | |||||||||||||||
| Total interest expense | 16,025 | 18,776 | 19,495 | 19,438 | 21,906 | |||||||||||||||
| Net interest income | 51,789 | 48,970 | 50,801 | 50,730 | 50,182 | |||||||||||||||
| Provision for credit losses | 40,792 | 50,750 | 37,573 | 19,984 | 32,262 | |||||||||||||||
| Net interest income after provision for credit losses | 10,997 | (1,780 | ) | 13,228 | 30,746 | 17,920 | ||||||||||||||
| Mark-to-market (losses) gains, net | (1,874 | ) | 6,063 | 11,264 | 4,015 | 3,314 | ||||||||||||||
| Securities impairment charges | (1,748 | ) | (1,044 | ) | (2,587 | ) | (38,405 | ) | (118,864 | ) | ||||||||||
| Net loss on repossessed assets and bank premises | (5,081 | ) | (7,283 | ) | (3,974 | ) | (4,936 | ) | (1,000 | ) | ||||||||||
| Other non-interest income: | ||||||||||||||||||||
| Trust and investment advisory services | 2,320 | 2,369 | 2,361 | 2,237 | 2,290 | |||||||||||||||
| Service charges | 2,298 | 2,212 | 1,980 | 1,682 | 1,711 | |||||||||||||||
| Bank owned life insurance | 669 | 574 | 435 | 514 | 673 | |||||||||||||||
| Other | 3,120 | 2,987 | 2,392 | 2,424 | 2,469 | |||||||||||||||
| 8,406 | 8,142 | 7,168 | 6,857 | 7,143 | ||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Compensation | 21,627 | 24,488 | 24,527 | 24,824 | 23,086 | |||||||||||||||
| Occupancy | 5,096 | 5,428 | 5,254 | 5,271 | 5,404 | |||||||||||||||
| Customer service | 3,339 | 2,827 | 3,465 | 2,485 | 934 | |||||||||||||||
| Intangible amortization | 945 | 945 | 945 | 945 | 1,007 | |||||||||||||||
| Goodwill impairment | 4,095 | 576 | - | 45,000 | 59,603 | |||||||||||||||
| Other | 13,544 | 11,164 | 14,425 | 9,971 | 13,197 | |||||||||||||||
| 48,646 | 45,428 | 48,616 | 88,496 | 103,231 | ||||||||||||||||
| Loss before income taxes | (37,946 | ) | (41,330 | ) | (23,517 | ) | (90,219 | ) | (194,718 | ) | ||||||||||
| Income tax benefit | (11,033 | ) | (17,415 | ) | (9,380 | ) | (3,777 | ) | (46,409 | ) | ||||||||||
Net loss | $ | (26,912 | ) | $ | (23,915 | ) | $ | (14,137 | ) | $ | (86,442 | ) | $ | (148,309 | ) | |||||
| Preferred stock dividends | 1,750 | 1,750 | 1,750 | 1,750 | 778 | |||||||||||||||
| Accretion on preferred stock | 697 | 689 | 674 | 682 | 303 | |||||||||||||||
| Net loss available to common stockholders | $ | (29,359 | ) | $ | (26,354 | ) | $ | (16,561 | ) | $ | (88,874 | ) | $ | (149,390 | ) | |||||
| Loss per share | $ | (0.41 | ) | $ | (0.37 | ) | $ | (0.31 | ) | $ | (2.33 | ) | $ | (3.94 | ) | |||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
| 2009 | 2009 | 2009 | 2009 | 2008 | ||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Cash and due from banks | $ | 392.4 | $ | 752.9 | $ | 548.6 | $ | 224.3 | $ | 136.8 | ||||||||||
| Federal funds sold and other | 4.4 | 5.0 | 20.3 | 3.3 | 3.2 | |||||||||||||||
| Cash and cash equivalents | 396.8 | 757.9 | 568.9 | 227.6 | 140.0 | |||||||||||||||
| Securities and money market investments | 864.8 | 727.8 | 725.7 | 583.6 | 565.4 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Construction and land development | 623.2 | 685.2 | 727.4 | 793.5 | 820.9 | |||||||||||||||
| Commercial real estate - owner occupied | 1,091.4 | 1,095.3 | 1,071.1 | 1,074.6 | 1,024.9 | |||||||||||||||
| Commercial real estate - non-owner occupied | 933.2 | 830.4 | 794.9 | 752.7 | 738.5 | |||||||||||||||
| Residential real estate | 568.3 | 600.4 | 595.0 | 586.5 | 589.2 | |||||||||||||||
| Commercial | 802.2 | 687.7 | 768.9 | 806.8 | 860.3 | |||||||||||||||
| Consumer | 80.3 | 77.3 | 80.5 | 71.2 | 71.1 | |||||||||||||||
| Deferred fees, net | (19.0 | ) | (8.3 | ) | (8.9 | ) | (9.5 | ) | (9.2 | ) | ||||||||||
| 4,079.6 | 3,968.0 | 4,028.9 | 4,075.8 | 4,095.7 | ||||||||||||||||
| Allowance for credit losses | (108.6 | ) | (104.2 | ) | (84.1 | ) | (77.2 | ) | (74.8 | ) | ||||||||||
| Loans, net | 3,971.0 | 3,863.8 | 3,944.8 | 3,998.6 | 4,020.9 | |||||||||||||||
| Premises and equipment, net | 125.9 | 128.6 | 136.7 | 138.1 | 140.9 | |||||||||||||||
| Bank owned life insurance | 92.5 | 91.8 | 91.3 | 90.8 | 90.7 | |||||||||||||||
| Goodwill and other intangibles | 43.1 | 51.6 | 53.1 | 54.1 | 100.0 | |||||||||||||||
| Other assets | 259.1 | 209.8 | 181.0 | 174.5 | 184.9 | |||||||||||||||
| Total assets | $ | 5,753.2 | $ | 5,831.3 | $ | 5,701.5 | $ | 5,267.3 | $ | 5,242.8 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Noninterest bearing demand deposits | $ | 1,157.0 | $ | 1,154.8 | $ | 1,108.6 | $ | 1,039.2 | $ | 1,010.6 | ||||||||||
| Interest bearing deposits: | ||||||||||||||||||||
| Demand | 362.7 | 339.4 | 296.3 | 260.6 | 253.5 | |||||||||||||||
| Savings and money market | 1,752.5 | 1,802.5 | 1,704.2 | 1,579.0 | 1,342.8 | |||||||||||||||
| Time certificates $100 and over | 889.5 | 875.0 | 714.7 | 642.0 | 647.4 | |||||||||||||||
| Other time certificates | 540.5 | 560.5 | 528.4 | 500.7 | 338.1 | |||||||||||||||
| Total deposits | 4,702.2 | 4,732.2 | 4,352.2 | 4,021.5 | 3,592.4 | |||||||||||||||
| Customer repurchase agreements | 223.3 | 264.1 | 300.4 | 272.3 | 321.0 | |||||||||||||||
| Total customer funds | 4,925.5 | 4,996.3 | 4,652.6 | 4,293.8 | 3,913.4 | |||||||||||||||
| Wholesale brokered deposits | 20.0 | 20.0 | 40.0 | 40.0 | 60.0 | |||||||||||||||
| Borrowings | 29.4 | 79.4 | 254.4 | 370.8 | 637.1 | |||||||||||||||
| Junior subordinated and subordinated debt | 102.4 | 101.9 | 102.3 | 102.8 | 103.0 | |||||||||||||||
| Accrued interest payable and other liabilities | 100.3 | 30.8 | 30.6 | 32.9 | 33.8 | |||||||||||||||
| Total liabilities | 5,177.6 | 5,228.4 | 5,079.9 | 4,840.3 | 4,747.3 | |||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Common stock and additional paid-in capital | 683.8 | 681.9 | 680.1 | 486.2 | 484.2 | |||||||||||||||
| Preferred Stock | 127.9 | 127.2 | 126.6 | 125.9 | 125.2 | |||||||||||||||
| Retained earnings (deficit) | (241.6 | ) | (212.2 | ) | (186.0 | ) | (169.4 | ) | (85.4 | ) | ||||||||||
| Accumulated other comprehensive income (loss) | 5.4 | 6.0 | 0.9 | (15.7 | ) | (28.5 | ) | |||||||||||||
| Total stockholders' equity | 575.7 | 602.9 | 621.6 | 427.0 | 495.5 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,753.2 | $ | 5,831.3 | $ | 5,701.5 | $ | 5,267.3 | $ | 5,242.8 | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Changes in the Allowance For Credit Losses | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Quarter Ended | ||||||||||||||||||||
| Dec. 31, | Sept. 30, | Jun. 30, | Mar. 31, | Dec. 31, | ||||||||||||||||
| 2009 | 2009 | 2009 | 2009 | 2008 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Balance, beginning of period | $ | 104,181 | $ | 84,143 | $ | 77,184 | $ | 74,827 | $ | 57,097 | ||||||||||
| Provision for credit losses | 40,792 | 50,750 | 37,573 | 19,984 | 32,262 | |||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||
| Construction and land development | 888 | 608 | 212 | - | 28 | |||||||||||||||
| Commercial real estate | 91 | 139 | - | - | 3 | |||||||||||||||
| Residential real estate | 340 | 11 | 143 | 51 | 12 | |||||||||||||||
| Commercial and industrial | 216 | 442 | 501 | 370 | 131 | |||||||||||||||
| Consumer | 42 | 6 | 96 | 29 | 13 | |||||||||||||||
| Total recoveries | 1,577 | 1,206 | 952 | 450 | 187 | |||||||||||||||
| Loans charged-off: | ||||||||||||||||||||
| Construction and land development | 9,859 | 13,717 | 10,381 | 1,850 | 2,197 | |||||||||||||||
| Commercial real estate | 6,204 | 3,125 | 6,310 | 1,117 | 1,364 | |||||||||||||||
| Residential real estate | 5,909 | 5,619 | 6,427 | 6,127 | 3,387 | |||||||||||||||
| Commercial and industrial | 14,925 | 8,329 | 7,355 | 7,965 | 6,975 | |||||||||||||||
| Consumer | 1,031 | 1,128 | 1,093 | 1,018 | 796 | |||||||||||||||
| Total loans charged-off | 37,927 | 31,918 | 31,566 | 18,077 | 14,719 | |||||||||||||||
| Net loans charged-off | 36,350 | 30,712 | 30,614 | 17,627 | 14,532 | |||||||||||||||
| Balance, end of period | $ | 108,623 | $ | 104,181 | $ | 84,143 | $ | 77,184 | $ | 74,827 | ||||||||||
| Net charge-offs (annualized) to average loans outstanding | 3.68 | % | 3.05 | % | 3.00 | % | 1.72 | % | 1.45 | % | ||||||||||
| Allowance for credit losses to gross loans | 2.66 | 2.62 | 2.09 | 1.89 | 1.83 | |||||||||||||||
| Nonaccrual loans | $ | 153,702 | $ | 166,286 | $ | 116,377 | $ | 98,653 | $ | 58,302 | ||||||||||
| Repossessed assets | 83,347 | 72,807 | 42,137 | 15,455 | 14,545 | |||||||||||||||
| Loans past due 90 days, still accruing | 5,538 | 2,538 | 36,060 | 53,239 | 11,515 | |||||||||||||||
| Loans past due 30 to 89 days, still accruing | 50,376 | 43,980 | 75,480 | 53,123 | 45,193 | |||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||||||||
| 2009 | 2008 | |||||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||||||
| Interest earning assets | ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | ||||||||||||||||||
| Investment securities (1) | $ | 806.0 | $ | 6,621 | 3.39 | % | $ | 622.2 | $ | 7,758 | 5.27 | % | ||||||||||
| Federal funds sold and other | 54.4 | 277 | 2.02 | % | 24.1 | 47 | 0.78 | % | ||||||||||||||
| Loans (1) | 3,953.4 | 60,532 | 6.07 | % | 3,999.4 | 64,030 | 6.37 | % | ||||||||||||||
| Short term investments | 516.1 | 376 | 0.29 | % | - | - | 0.00 | % | ||||||||||||||
| Investment in restricted stock | 41.4 | 7 | 0.07 | % | 41.3 | 253 | 2.44 | % | ||||||||||||||
| Total interest earning assets | 5,371.3 | 67,813 | 5.03 | % | 4,687.0 | 72,088 | 6.16 | % | ||||||||||||||
| Non-interest earning assets | ||||||||||||||||||||||
| Cash and due from banks | 161.1 | 129.3 | ||||||||||||||||||||
| Allowance for credit losses | (108.3 | ) | (59.8 | ) | ||||||||||||||||||
| Bank owned life insurance | 92.1 | 90.3 | ||||||||||||||||||||
| Other assets | 303.7 | 411.1 | ||||||||||||||||||||
| Total assets | $ | 5,819.9 | $ | 5,257.9 | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 348.2 | $ | 753 | 0.86 | % | $ | 234.4 | $ | 766 | 1.30 | % | ||||||||||
| Savings and money market | 1,793.4 | 5,463 | 1.21 | % | 1,370.9 | 7,378 | 2.14 | % | ||||||||||||||
| Time certificates of deposit | 1,462.5 | 7,372 | 2.00 | % | 915.5 | 7,041 | 3.06 | % | ||||||||||||||
| 3,604.1 | 13,588 | 1.50 | % | 2,520.8 | 15,185 | 2.40 | % | |||||||||||||||
| Borrowings | 308.2 | 1,189 | 1.53 | % | 1,145.3 | 4,834 | 1.68 | % | ||||||||||||||
| Junior subordinated and subordinated debt | 101.9 | 1,248 | 4.86 | % | 106.6 | 1,887 | 7.04 | % | ||||||||||||||
| Total interest-bearing liabilities | 4,014.2 | 16,025 | 1.58 | % | 3,772.7 | 21,906 | 2.31 | % | ||||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,166.7 | 961.8 | ||||||||||||||||||||
| Other liabilities | 31.4 | 3.8 | ||||||||||||||||||||
| Stockholders’ equity | 607.6 | 519.6 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,819.9 | $ | 5,257.9 | ||||||||||||||||||
| Net interest income and margin | $ | 51,789 | 3.84 | % | $ | 50,182 | 4.30 | % | ||||||||||||||
| Net interest spread | 3.45 | % | 3.85 | % | ||||||||||||||||||
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $265 and $478 for the third quarter ended 2009 and 2008, respectively. | ||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||
| Unaudited | ||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||
| 2009 | 2008 | |||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||
| Earning Assets | ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | ||||||||||
| Securities (1) | $ 692.4 | $ 25,553 | 3.87% | $ 669.4 | $ 36,788 | 5.77% | ||||||||
| Federal funds sold & other | 37.7 | 1,030 | 2.73% | 16.7 | 322 | 1.93% | ||||||||
| Loans (1) | 4,037.7 | 248,433 | 6.15% | 3,872.9 | 257,528 | 6.65% | ||||||||
| Short term investments | 318.6 | 874 | 0.27% | - | - | 0.00% | ||||||||
| Restricted stock | 41.1 | 133 | 0.32% | 41.5 | 953 | 2.30% | ||||||||
| Total earnings assets (1) | 5,127.5 | 276,023 | 5.41% | 4,600.5 | 295,591 | 6.47% | ||||||||
| Non-earning Assets | ||||||||||||||
| Cash and due from banks | 178.4 | 113.4 | ||||||||||||
| Allowance for loan losses | (88.2) | (56.1) | ||||||||||||
| Bank owned life insurance | 91.3 | 89.3 | ||||||||||||
| Other assets | 266.0 | 451.1 | ||||||||||||
| Total assets | $ 5,575.0 | $ 5,198.2 | ||||||||||||
| Interest-bearing liabilities | ||||||||||||||
| Sources of Funds | ||||||||||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest checking | $ 303.4 | $ 3,216 | 1.06% | $ 253.8 | $ 3,966 | 1.56% | ||||||||
| Savings and money market | 1,666.7 | 26,903 | 1.61% | 1,517.2 | 35,537 | 2.34% | ||||||||
| Time deposits | 1,260.8 | 30,675 | 2.43% | 781.8 | 27,869 | 3.56% | ||||||||
| Total interest-bearing deposits | 3,230.9 | 60,794 | 1.88% | 2,552.8 | 67,372 | 2.64% | ||||||||
| Borrowings | 578.0 | 7,974 | 1.38% | 1,038.3 | 26,054 | 2.51% | ||||||||
| Junior subordinated and subordinated debt | 103.0 | 4,966 | 4.82% | 114.7 | 7,257 | 6.33% | ||||||||
| Total interest-bearing liabilities | $ 3,911.9 | 73,734 | 1.88% | $ 3,705.8 | 100,683 | 2.72% | ||||||||
| Noninterest-bearing liabilities | ||||||||||||||
| Noninterest-bearing demand deposits | 1,070.0 | 961.7 | ||||||||||||
| Other liabilities | 27.1 | 17.8 | ||||||||||||
| Stockholders’ equity | 566.0 | 512.9 | ||||||||||||
| Total liabilities and stockholders' equity | $ 5,575.0 | $ 5,198.2 | ||||||||||||
| Net interest income and margin | $ 202,290 | 3.97% | $ 194,908 | 4.28% | ||||||||||
| Net interest spread | 3.53% | 3.75% | ||||||||||||
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $1,210 and $1,843 for the Twelve Months ended December 31, 2009 and 2008, respectively. | ||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||
| Operating Segment Results | Inter- | |||||||||||||||||||||||||||||||
| Unaudited | segment | Consoli- | ||||||||||||||||||||||||||||||
| Asset | Credit Card | Elimi- | dated | |||||||||||||||||||||||||||||
| ($ in millions) | Nevada | California | Arizona | Management | Services | Other | nations | Company | ||||||||||||||||||||||||
| At Dec. 31, 2009: | ||||||||||||||||||||||||||||||||
| Assets | $ | 3,297.0 | $ | 1,288.8 | $ | 1,122.9 | $ | 6.7 | $ | 49.2 | $ | 126.0 | $ | (137.4 | ) | $ | 5,753.2 | |||||||||||||||
| Gross loans and deferred fees, net | 2,452.3 | 874.6 | 745.5 | - | 50.2 | - | (43.0 | ) | 4,079.6 | |||||||||||||||||||||||
| Less: Allowance for credit losses | (77.2 | ) | (10.3 | ) | (16.9 | ) | - | (4.2 | ) | - | - | (108.6 | ) | |||||||||||||||||||
| Net loans | 2,375.1 | 864.3 | 728.6 | - | 46.0 | - | (43.0 | ) | 3,971.0 | |||||||||||||||||||||||
| Customer deposits | 2,639.3 | 1,081.9 | 984.4 | - | - | - | (3.4 | ) | 4,702.2 | |||||||||||||||||||||||
| Stockholders' equity | 301.6 | 128.9 | 72.0 | 5.2 | (6.9 | ) | 80.5 | (5.6 | ) | 575.7 | ||||||||||||||||||||||
| No. of branches | 18 | 9 | 10 | - | - | - | - | 37 | ||||||||||||||||||||||||
| No. of FTE | 530 | 178 | 132 | 23 | 27 | 40 | - | 930 | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended Dec. 31, 2009: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 31,141 | $ | 11,185 | $ | 8,683 | $ | 9 | $ | 781 | $ | (10 | ) | $ | - | $ | 51,789 | |||||||||||||||
| Provision for credit losses | 31,530 | 3,497 | 4,117 | - | 1,647 | 0 | - | 40,792 | ||||||||||||||||||||||||
Net interest income after provision for credit losses | (389 | ) | 7,688 | 4,566 | 9 | (866 | ) | (10 | ) | - | 10,997 | |||||||||||||||||||||
Securities gains (losses) and other valuation changes | (1,702 | ) | (141 | ) | (297 | ) | - | - | (1,482 | ) | - | (3,622 | ) | |||||||||||||||||||
| Net loss on sale of repossessed assets | (4,545 | ) | (180 | ) | (356 | ) | - | - | - | - | (5,081 | ) | ||||||||||||||||||||
Non-interest income, excluding securities and fair value gains (losses) | 3,868 | 991 | 1,550 | 2,298 | 516 | 468 | (1,285 | ) | 8,406 | |||||||||||||||||||||||
| Noninterest expense | (20,452 | ) | (9,529 | ) | (6,782 | ) | (6,164 | ) | (2,666 | ) | (4,338 | ) | 1,285 | (48,646 | ) | |||||||||||||||||
| Income (loss) before income taxes | (23,220 | ) | (1,171 | ) | (1,319 | ) | (3,856 | ) | (3,016 | ) | (5,362 | ) | - | (37,945 | ) | |||||||||||||||||
| Income tax expense (benefit) | (7,737 | ) | (237 | ) | (137 | ) | 175 | (1,237 | ) | (1,860 | ) | (11,033 | ) | |||||||||||||||||||
| Net income (loss) | $ | (15,483 | ) | $ | (934 | ) | $ | (1,182 | ) | $ | (4,031 | ) | $ | (1,779 | ) | $ | (3,502 | ) | $ | - | $ | (26,912 | ) | |||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| Twelve Months Ended Dec. 31, 2009: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 125,327 | $ | 42,966 | $ | 33,208 | $ | 52 | $ | 2,239 | $ | (1,502 | ) | $ | - | $ | 202,290 | |||||||||||||||
| Provision for credit losses | 118,110 | 8,315 | 17,199 | - | 5,475 | 0 | - | 149,099 | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 7,217 | 34,651 | 16,009 | 52 | (3,236 | ) | (1,502 | ) | - | 53,191 | ||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (7,200 | ) | 774 | (93 | ) | 75 | - | (657 | ) | (17,215 | ) | (24,316 | ) | |||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (16,293 | ) | (180 | ) | (4,801 | ) | - | - | - | - | (21,274 | ) | ||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 13,230 | 3,543 | 5,773 | 9,289 | 1,824 | 1,565 | (4,651 | ) | 30,573 | |||||||||||||||||||||||
| Noninterest expense | (136,264 | ) | (39,190 | ) | (27,451 | ) | (13,117 | ) | (10,495 | ) | (11,256 | ) | 6,587 | (231,186 | ) | |||||||||||||||||
| Income (loss) before income taxes | (139,310 | ) | (402 | ) | (10,563 | ) | (3,700 | ) | (11,907 | ) | (11,850 | ) | (15,279 | ) | (193,011 | ) | ||||||||||||||||
| Income tax expense (benefit) | (32,902 | ) | 425 | (3,714 | ) | 634 | (4,963 | ) | (4,286 | ) | 3,201 | (41,605 | ) | |||||||||||||||||||
| Net income (loss) | $ | (106,408 | ) | $ | (827 | ) | $ | (6,849 | ) | $ | (4,334 | ) | $ | (6,944 | ) | $ | (7,564 | ) | $ | (18,480 | ) | $ | (151,406 | ) | ||||||||
| 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 Dec 31, 2008: | ||||||||||||||||||||||||||||||||
| Assets | $ | 3,490.6 | $ | 971.2 | $ | 867.2 | $ | 18.9 | $ | 29.2 | $ | 62.7 | $ | (197.0 | ) | $ | 5,242.8 | |||||||||||||||
| Gross loans and deferred fees | 2,658.9 | 774.1 | 677.8 | - | 27.9 | - | (43.0 | ) | 4,095.7 | |||||||||||||||||||||||
| Less: Allowance for credit losses | (49.7 | ) | (10.9 | ) | (12.9 | ) | - | (1.3 | ) | - | - | (74.8 | ) | |||||||||||||||||||
| Net loans | 2,609.2 | 763.2 | 664.9 | - | 26.6 | - | (43.0 | ) | 4,020.9 | |||||||||||||||||||||||
| Customer deposits | 2,156.1 | 820.5 | 679.8 | - | - | - | (4.1 | ) | 3,652.3 | |||||||||||||||||||||||
| Stockholders' equity | 324.1 | 74.5 | 62.9 | 17.3 | (2.4 | ) | 19.1 | - | 495.5 | |||||||||||||||||||||||
| No. of branches | 21 | 9 | 11 | - | - | - | - | 41 | ||||||||||||||||||||||||
| No. of FTE | 604 | 141 | 150 | 47 | 37 | 41 | - | 1,020 | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||||
| Three Months Ended Dec. 31, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 32,640 | $ | 10,709 | $ | 7,688 | $ | 14 | $ | 267 | $ | (1,136 | ) | $ | - | $ | 50,182 | |||||||||||||||
| Provision for loan losses | 22,108 | 3,385 | 5,929 | - | 840 | - | - | 32,262 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 10,532 | 7,324 | 1,759 | 14 | (573 | ) | (1,136 | ) | - | 17,920 | ||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (90,579 | ) | (21,390 | ) | (13,683 | ) | - | - | 3,646 | 6,456 | (115,550 | ) | ||||||||||||||||||||
| Net gain (loss) on sale of repossessed assets | (486 | ) | - | (514 | ) | - | - | - | - | (1,000 | ) | |||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 2,942 | 619 | 1,518 | 2,298 | 294 | 372 | (900 | ) | 7,143 | |||||||||||||||||||||||
| Noninterest expense | (79,853 | ) | (7,960 | ) | (6,578 | ) | (2,160 | ) | (3,685 | ) | (3,895 | ) | 900 | (103,231 | ) | |||||||||||||||||
| Income (loss) before income taxes | (157,444 | ) | (21,407 | ) | (17,498 | ) | 152 | (3,964 | ) | (1,013 | ) | 6,456 | (194,718 | ) | ||||||||||||||||||
| Income tax expense (benefit) | (34,646 | ) | (9,156 | ) | (6,830 | ) | 106 | (1,197 | ) | 3,054 | 2,260 | (46,409 | ) | |||||||||||||||||||
| Net income (loss) | $ | (122,798 | ) | $ | (12,251 | ) | $ | (10,668 | ) | $ | 46 | $ | (2,767 | ) | $ | (4,067 | ) | $ | 4,196 | $ | (148,309 | ) | ||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
| Twelve Months Ended Dec. 31, 2008: | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 130,746 | $ | 38,564 | $ | 29,926 | $ | 74 | $ | 340 | $ | (4,742 | ) | $ | - | $ | 194,908 | |||||||||||||||
| Provision for loan losses | 50,379 | 6,829 | 9,450 | - | 1,531 | - | - | 68,189 | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 80,367 | 31,735 | 20,476 | 74 | (1,191 | ) | (4,742 | ) | - | 126,719 | ||||||||||||||||||||||
Securities gains (losses) and other valuation changes | (124,377 | ) | (29,175 | ) | (18,161 | ) | - | - | 19,203 | 6,456 | (146,054 | ) | ||||||||||||||||||||
| Net loss on repossessed assets, bank premises | (545 | ) | - | (134 | ) | - | - | - | - | (679 | ) | |||||||||||||||||||||
Noninterest income, excluding securities and fair value gains (losses) | 12,061 | 2,176 | 6,175 | 10,499 | 891 | 1,045 | (3,160 | ) | 29,687 | |||||||||||||||||||||||
| Noninterest expense | (217,434 | ) | (27,462 | ) | (25,365 | ) | (9,332 | ) | (13,042 | ) | (10,824 | ) | 3,160 | (300,299 | ) | |||||||||||||||||
| Income (loss) before income taxes | (249,928 | ) | (22,726 | ) | (17,009 | ) | 1,241 | (13,342 | ) | 4,682 | 6,456 | (290,626 | ) | |||||||||||||||||||
| Income tax expense (benefit) | (40,442 | ) | (9,732 | ) | (6,766 | ) | 623 | (5,102 | ) | 4,993 | 2,260 | (54,166 | ) | |||||||||||||||||||
| Net income (loss) | $ | (209,486 | ) | $ | (12,994 | ) | $ | (10,243 | ) | $ | 618 | $ | (8,240 | ) | $ | (311 | ) | $ | 4,196 | $ | (236,460 | ) | ||||||||||
CONTACT:
Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO
602-952-5445
or
INVESTOR CONTACT:
Dale Gibbons, CFO
702-252-6236