Exhibit 99.1
Western Alliance Reports Results for the First Quarter 2010
LAS VEGAS--(BUSINESS WIRE)--April 22, 2010--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the first quarter 2010.
Highlights:
- Net income of $384,000, including reserve build of $4.1 million and net gain from securities activities of $8.4 million
- Diluted net loss per common share of $0.03 compared to net loss of $0.41 for the fourth quarter of 2009 and $2.33 net loss for the first quarter 2009
- Record growth in deposits of $468 million for the quarter to $5.19 billion and year-over-year growth of $1.13 billion
- Modest decline in loans to $4.06 billion compared to fourth quarter 2009 and first quarter last year
- Record net interest income of $54.7 million compared to $51.8 million for fourth quarter 2009
- Substantially improved interest margin of 4.17% during the quarter compared to 3.84% for fourth quarter 2009
- Non-accrual loans of $149 million and repossessed assets of $106 million at March 31, 2010, compared to $154 million and $83 million at December 31, 2009, respectively
- Net loan charge-offs declined to $24.6 million from $36.4 million for fourth quarter 2009
- Provision for credit losses declined significantly to $28.7 million from $40.8 million for fourth quarter 2009
- Tangible common equity of $405 million, or 6.7 percent of tangible assets
- Total regulatory capital of $666 million and a Total Risk-Based Capital ratio of 14.5 percent
Financial Performance
Western Alliance Bancorporation reported a net income of $0.4 million in the first quarter 2010, including a reserve build of $4.1 million, loss on discontinued operations held for sale net of tax of $0.9 million, net gains from securities activities of $8.4 million, and gain on sale/valuation of repossessed assets of $1.0 million.
Net of preferred dividends and accretion of discount on preferred stock the Company reported net loss per common share of $0.03 in the first quarter 2010, including a reserve build of $0.04, loss from discontinued affinity credit card operations held for sale net of tax of $0.01, net gain from securities activities of $0.08, and gain from sale/valuation of repossessed assets of $0.01.
Total loans decreased $21 million to $4.06 billion at March 31, 2010 from $4.08 billion on December 31, 2009. This net decrease was primarily driven by a decline in construction and land development loans.
Total deposits increased $468 million to $5.19 billion at March 31, 2010 from $4.72 billion at December 31, 2009, with increases in all major deposit categories and led by $192 million increase in non-interest bearing deposits. Deposits increased $1.13 billion from March 31, 2009.
“I am delighted by our extraordinary growth in low-cost, stable deposits during the quarter and continued improvement in our key performance areas,” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance. “During the quarter, we increased our margin by 33 basis points, expanded our market share with $468 million in deposit growth, improved credit quality, and made significant enhancements to our risk management structure. Although non-recurring revenue augmented our stronger fundamentals to achieve positive income during the quarter, we are well-positioned to continue to improve our performance and report core operating earnings during the year.”
Income Statement
Net interest income increased 7.9 percent to $54.7 million in the first quarter 2010 from $50.7 million in the first quarter 2009. The net interest margin in the first quarter 2010 was 4.17 percent compared to 3.84 percent in the fourth quarter 2009 and 4.39 percent in the first quarter of last year. The increase in the interest margin from the previous quarter was largely due to higher yields from loans and decreased deposit costs.
The provision for credit losses was $28.7 million for the first quarter 2010 compared to $40.8 million for the fourth quarter 2009 and $20.0 million for the first quarter 2009. Nonaccrual loans and repossessed assets were $254 million or 4.17 percent of total assets at March 31, 2010, compared with $237 million or 4.12 percent of total assets at December 31, 2009 and $115 million or 2.19 percent of total assets at March 31, 2009. Net loan charge-offs in the first quarter 2010 were $24.6 million or 2.43 percent of average loans (annualized), compared to net charge-offs of $36.4 million or 3.68 percent of average loans (annualized) for the fourth quarter 2009 and $17.6 million or 1.72 percent of average loans (annualized) for the first quarter 2009. Loans past due 90 days and still accruing totaled $8.4 million at March 31, 2010, up from $5.5 million at December 31, 2009 and down from $53.2 million at March 31, 2009. Loans past due 30-89 days totaled $38.6 million at quarter end, down from $50.4 million at December 31, 2009 and down from $53.1 million at March 31, 2009.
Operating non-interest income (excluding increases in fair values of financial instruments measured at fair value of $0.3 million, securities impairment charges of $0.1 million, and gains from securities sales of $8.2 million) was $6.2 million for the first quarter 2010. This performance was a decrease of 4.6 percent from $6.5 million for the same period in 2009 due to the sale of a majority interest in Miller/Russell and Associates in 2009 (excluding increases in fair values of financial instruments measured at fair value of $4.1 million and securities impairment charges of $38.4 million). For the fourth quarter 2009, non-interest income was $7.7 million (excluding decreases in fair values of financial instruments of $1.9 million, securities impairment charges of $1.7 million, and $0.2 million gains from securities sales).
Net revenue (sum of net interest income and operating non-interest income) was $61.0 million for the first quarter 2010. This performance was an increase of 6.6 percent from net revenue of $57.2 million for the first quarter 2009. For the fourth quarter 2009, net revenue was $59.5 million.
Operating non-interest expense (excluding net gains on sales/valuations of repossessed assets of $1.0 million) was $41.9 million for the first quarter 2010, up 1.9 percent from non-interest expense (excluding goodwill impairment charges of $45.0 million and net losses on sales of repossessed assets of $4.9 million) of $41.1 million for the same period in 2009. For the fourth quarter 2009, non-interest expense (excluding goodwill impairment charges of $4.1 million and net losses on sales/valuations of repossessed assets of $5.1 million) was $42.1 million. The Company had 948 full-time equivalent employees at March 31, 2010, compared to 930 at December 31, 2009 and 1,084 one year ago.
A key performance metric for the Company is its pre-tax, pre-provision operating earning power, which it defines as net revenue described above less its operating non-interest expense. For the first quarter 2010, the Company’s performance was $19.1 million, compared to $17.4 million in the fourth quarter 2009 and $16.1 million in the first quarter 2009.
Balance Sheet
Gross loans totaled $4.06 billion at March 31, 2010, a decrease of $20.5 million from December 31, 2009 and a decrease of $16.7 million from $4.08 billion at March 31, 2009. At March 31, 2010 the allowance for credit losses was 2.78 percent of total loans up from 2.66 percent at December 31, 2009 and up from 1.89 percent at March 31, 2009.
Customer funds totaled $5.36 billion at March 31, 2010, an increase of $414 million or 8.3 percent from $4.95 billion at December 31, 2009 and an increase of $1.03 billion or 23.6 percent from $4.33 billion at March 31, 2009.
Non-interest bearing deposits increased to $1.35 billion at March 31, 2010 up $192 million from December 31, 2009 and up $310 million from $1.04 billion at March 31, 2009. Non-interest bearing deposits comprised 25.9 percent of total deposits at March 31, 2010.
At March 31, 2010 the Company’s loans were 78.2 percent of deposits, compared to 100.4 percent one year earlier and 86.4 percent at December 31, 2009. Borrowings, including junior and subordinated debt totaled $122 million at March 31, 2010, down $352 million from $474 million one year earlier, and down $10 million from $132 million at December 31, 2009.
Stockholders’ equity increased $149 million from March 31, 2009 and increased slightly from December 31, 2009 to $576 million at March 31, 2010. Accumulated other comprehensive income totaled $4.7 million at March 31, 2010, compared to $5.4 million at December 30, 2009. At March 31, 2010 tangible common equity was 6.7 percent of tangible assets and total risk-based capital was 14.5 percent of risk-weighted assets.
Total assets increased 15.7 percent to $6.09 billion at March 31, 2010 from $5.27 billion at March 31, 2009.
Operating Unit Highlights
Our Nevada banking operations, which are comprised of Bank of Nevada and First Independent Bank of Nevada, reported that loans declined $68 million during the first quarter and declined $258 million during the last 12 months to $2.38 billion at March 31, 2010. Deposits increased $374 million to $2.74 billion since March 31, 2009. Net loss for our Nevada banks was $2.7 million during the first quarter 2010, compared with a net loss of $64.1 million during the first quarter 2009, which included a $45.0 million goodwill impairment charge.
Our California banking operations, which are comprised of Torrey Pines Bank and Alta Alliance Bank, reported that loans increased $60 million during the first quarter 2010 and increased $141 million during the last 12 months to $935 million. Deposits increased $134 million and $249 million to $1.22 billion during the same periods, respectively. Net income for our California banks was $0.5 million during the first quarter 2010 compared with a net loss of $5.5 million during the first quarter 2009.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported loan growth of $37 million during the first quarter 2010 and an increase of $101 million during the last 12 months to $783 million. Deposits increased $253 million and $504 million to $1.24 billion during the same periods, respectively. Net income for our Arizona bank was $0.8 million during the first quarter 2010 compared with a net loss of $4.0 million during the first quarter 2009.
Our Asset Management business line, which includes Shine Investments Advisory Services and Premier Trust, had assets under management of $872 million at March 31, 2010, compared to $865 million at December 31, 2009, excluding Miller/Russell and Associates, which was divested. Net income for the Asset Management segment for the quarter ended March 31, 2010 was $0.1 million, compared with net income of $35,000 during the first quarter 2009, excluding Miller/Russell and Associates.
Attached to this press release is summarized financial information for the quarter ended March 31, 2010.
Subsequent Event
On April 21, 2010 the Company executed a definitive agreement to sell its entire equity interest in Premier Trust to an unrelated party. The transaction is expected to close in the second quarter 2010. Terms of the agreement were not disclosed. The Company’s bank affiliates will continue to provide banking services to Premier Trust and a number of its clients.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its first quarter 2010 financial results at 11.00 a.m. ET on Friday, April 23, 2010. Participants may access the call by dialing 1-866-524-3160. The call will be recorded and made available for replay after 2:00 p.m. ET April 23 until 9 a.m. ET May 10th by dialing 1-877-344-7529 using the pass code 439744.
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 credit 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, and Shine Investment Advisory Services. These dynamic organizations provide a broad array of deposit and credit services to clients in Nevada, Arizona and California, and investment services in Colorado. 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 | ||||||||||||||
Ended March 31, | ||||||||||||||
2010 | 2009 | Change % | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Selected Balance Sheet Data: | ||||||||||||||
(dollars in millions) | ||||||||||||||
Total assets | $ | 6,096.2 | $ | 5,267.3 | 15.7 | % | ||||||||
Loans, net of deferred fees | 4,059.1 | 4,075.7 | (0.4 | ) | ||||||||||
Securities and money market investments | 781.1 | 583.6 | 33.8 | |||||||||||
Federal funds sold and other | 2.4 | 3.3 | (27.3 | ) | ||||||||||
Customer funds | 5,359.2 | 4,333.8 | 23.7 | |||||||||||
Borrowings | 20.0 | 370.8 | (94.6 | ) | ||||||||||
Junior subordinated and subordinated debt | 102.3 | 102.8 | (0.5 | ) | ||||||||||
Stockholders' equity | 575.7 | 426.9 | 34.9 | |||||||||||
Selected Income Statement Data: | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Interest income | $ | 68,734 | $ | 70,168 | (2.0 | ) | % | |||||||
Interest expense | 14,016 | 19,438 | (27.9 | ) | ||||||||||
Net interest income | 54,718 | 50,730 | 7.9 | |||||||||||
Provision for loan losses | 28,747 | 19,984 | 43.9 | |||||||||||
Net interest income after provision for credit losses | 25,971 | 30,746 | (15.5 | ) | ||||||||||
Non-interest income | 14,629 | (27,828 | ) | (152.6 | ) | |||||||||
Non-interest expense | 40,843 | 91,036 | (55.1 | ) | ||||||||||
Loss from continuing operations before income taxes | (243 | ) | (88,118 | ) | (99.7 | ) | ||||||||
Income tax benefit | (1,562 | ) | (3,044 | ) | (48.7 | ) | ||||||||
Income (loss) from continuing operations | 1,319 | (85,074 | ) | (101.6 | ) | |||||||||
Loss on discontinued operations, net | (935 | ) | (1,368 | ) | (31.7 | ) | ||||||||
Net income (loss) | $ | 384 | $ | (86,442 | ) | (100.4 | ) | % | ||||||
Intangible asset amortization, net of tax | $ | 590 | $ | 614 | (4.0 | ) | % | |||||||
Diluted net loss from continuing operations | $ | (0.02 | ) | $ | (2.30 | ) | ||||||||
Diluted net loss from discontinued operations, net of tax | $ | (0.01 | ) | $ | (0.04 | ) | ||||||||
Diluted net loss per common share | $ | (0.03 | ) | $ | (2.33 | ) | (98.7 | ) | % | |||||
Common Share Data: | ||||||||||||||
Diluted net income (loss) per common share | $ | (0.03 | ) | $ | (2.33 | ) | (98.7 | ) | % | |||||
Book value per common share | $ | 6.12 | $ | 7.73 | (20.8 | ) | % | |||||||
Tangible book value per share (net of tax) (1) | $ | 5.62 | $ | 6.52 | (13.8 | ) | % | |||||||
Average shares outstanding (in thousands): | ||||||||||||||
Basic | 71,965 | 38,096 | 88.9 | |||||||||||
Diluted | 71,965 | 38,096 | 88.9 | |||||||||||
Common shares outstanding | 73,031 | 38,956 | 87.5 | |||||||||||
(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 March 31, 2010 and March 31, 2009, adjusted for deferred taxes, were $6.06 billion and $5.22 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. | ||||||||||||||
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Western Alliance Bancorporation and Subsidiaries | ||||||||||||||
Summary Consolidated Financial Data (continued) | ||||||||||||||
Unaudited | ||||||||||||||
At or for the Three Months | ||||||||||||||
Ended March 31, | ||||||||||||||
2010 | 2009 | Change % | ||||||||||||
(in thousands, except per share data) | ||||||||||||||
Selected Performance Ratios: | ||||||||||||||
Return on average assets (1) | 0.03 | % | (6.65 | ) | % | (100.5 | ) | % | ||||||
Return on average stockholders' equity (1) | 0.27 | (70.21 | ) | (100.4 | ) | |||||||||
Net interest margin (1) | 4.17 | 4.39 | (5.0 | ) | ||||||||||
Net interest spread | 3.84 | 3.98 | (3.5 | ) | ||||||||||
Efficiency ratio - tax equivalent basis | 68.42 | 75.00 | (8.8 | ) | ||||||||||
Loan to deposit ratio | 78.21 | 100.35 | (22.1 | ) | ||||||||||
Capital Ratios: | ||||||||||||||
Tangible equity (non-GAAP) (2) | 8.8 | % | 7.1 | % | 23.9 | % | ||||||||
Tangible common equity (non-GAAP) (3) | 6.7 | 4.7 | 42.6 | |||||||||||
Tier 1 Leverage ratio | 9.5 | 8.4 | 13.1 | |||||||||||
Tier 1 Risk Based Capital | 11.9 | 9.4 | 26.6 | |||||||||||
Total Risk Based Capital | 14.5 | 12.0 | 20.8 | |||||||||||
Asset Quality Ratios: | ||||||||||||||
Net charge-offs to average loans outstanding (1) | 2.43 | % | 1.72 | % | 41.3 | % | ||||||||
Nonaccrual loans to gross loans | 3.66 | 2.42 | 51.2 | |||||||||||
Nonaccrual loans and repossessed assets to total assets | 4.17 | 2.19 | 90.4 | |||||||||||
Loans past due 90 days and still accruing to total loans | 0.21 | 1.30 | (83.8 | ) | ||||||||||
Allowance for credit losses to loans | 2.78 | 1.89 | 47.1 | |||||||||||
Allowance for credit losses to nonaccrual loans | 75.78 | 78.24 | (3.1 | ) | ||||||||||
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(1) Annualized for the three month periods ended March 31, 2010 and 2009. | ||||||||||||||
(2) Tangible equity is a non-GAAP ratio of tangible equity to tangible assets. Tangible equity as of March 31, 2010 and March 31, 2009 was $534 million and $373 million, respectively. Tangible assets as of March 31, 2010 and March 31, 2009 were $6.05 billion and $5.21 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 March 31, 2010 and March 31, 2009 was $405 million and $247 million, respectively. Tangible assets as of March 31, 2010 and March 31, 2009, were $6.05 billion and $5.21 billion, respectively. We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength. | ||||||||||||||
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Western Alliance Bancorporation and Subsidiaries | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
Unaudited | Three Months Ended | |||||||
March 31, | ||||||||
2010 | 2009 | |||||||
Interest income: | (dollars in thousands) | |||||||
Loans | $ | 62,167 | $ | 63,253 | ||||
Investment securities | 6,304 | 6,892 | ||||||
Federal funds sold and other | 263 | 23 | ||||||
Total interest income | 68,734 | 70,168 | ||||||
Interest expense: | ||||||||
Deposits | 12,079 | 15,650 | ||||||
Customer repurchase agreements | 284 | 1,250 | ||||||
Borrowings | 449 | 1,275 | ||||||
Junior subordinated and subordinated debt | 1,204 | 1,263 | ||||||
Total interest expense | 14,016 | 19,438 | ||||||
Net interest income | 54,718 | 50,730 | ||||||
Provision for credit losses | 28,747 | 19,984 | ||||||
Net interest income after provision for credit losses | 25,971 | 30,746 | ||||||
Non-interest income | ||||||||
Unrealized gains (losses) on assets and liabilities measured at fair value, net | ||||||||
301 | 4,071 | |||||||
Securities impairment charges | (103 | ) | (38,405 | ) | ||||
Gains on sales of investment securities, net | 8,218 | 7 | ||||||
Trust and investment advisory services | 1,213 | 2,237 | ||||||
Service charges | 2,197 | 1,682 | ||||||
Operating lease income | 964 | 1,003 | ||||||
Bank owned life insurance | 719 | 514 | ||||||
Other | 1,120 | 1,063 | ||||||
14,629 | (27,828 | ) | ||||||
Non-interest expenses: | ||||||||
Salaries and employee benefits | 21,440 | 23,619 | ||||||
Occupancy | 4,787 | 5,220 | ||||||
Insurance | 3,492 | 1,647 | ||||||
Repossessed asset and loan expenses | 2,364 | 1,077 | ||||||
Net (gain) loss on sales and valuations of repossessed assets | (1,014 | ) | 4,936 | |||||
Legal, professional and director's fees | 1,868 | 1,364 | ||||||
Marketing | 1,156 | 1,211 | ||||||
Customer service | 1,065 | 1,017 | ||||||
Intangible amortization | 907 | 945 | ||||||
Data Processing | 791 | 1,137 | ||||||
Operating lease depreciation | 689 | 919 | ||||||
Goodwill impairment | - | 45,000 | ||||||
Other | 3,298 | 2,944 | ||||||
40,843 | 91,036 | |||||||
Loss from continuing operations before income taxes | (243 | ) | (88,118 | ) | ||||
Income tax benefit | (1,562 | ) | (3,044 | ) | ||||
Income (loss) from continuing operations | 1,319 | (85,074 | ) | |||||
Loss from discontinued operations net of tax benefit | (935 | ) | (1,368 | ) | ||||
Net income (loss) | 384 | (86,442 | ) | |||||
Preferred stock dividends | 1,750 | 1,750 | ||||||
Accretion on preferred stock discount | 716 | 682 | ||||||
Net loss available to common stockholders | $ | (2,082 | ) | $ | (88,874 | ) | ||
Loss per share | $ | (0.03 | ) | $ | (2.33 | ) | ||
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
Five Quarter Condensed Consolidated Statements of Operations | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||
2010 | 2009 | 2009 | 2009 | 2009 | ||||||||||||||||
Interest income: | (in thousands, except per share data) | |||||||||||||||||||
Loans | $ | 62,167 | $ | 60,532 | $ | 61,380 | $ | 63,268 | $ | 63,253 | ||||||||||
Investment securities | 6,304 | 6,621 | 5,891 | 6,822 | 6,892 | |||||||||||||||
Federal funds sold and other | 263 | 660 | 475 | 206 | 23 | |||||||||||||||
Total interest income | 68,734 | 67,813 | 67,746 | 70,296 | 70,168 | |||||||||||||||
Interest expense: | ||||||||||||||||||||
Deposits | 12,079 | 13,785 | 16,067 | 16,413 | 15,650 | |||||||||||||||
Borrowings | 733 | 992 | 1,452 | 1,883 | 2,525 | |||||||||||||||
Junior subordinated and subordinated debt | 1,204 | 1,248 | 1,257 | 1,199 | 1,263 | |||||||||||||||
Total interest expense | 14,016 | 16,025 | 18,776 | 19,495 | 19,438 | |||||||||||||||
Net interest income | 54,718 | 51,788 | 48,970 | 50,801 | 50,730 | |||||||||||||||
Provision for credit losses | 28,747 | 40,792 | 50,750 | 37,573 | 19,984 | |||||||||||||||
Net interest income after provision for credit losses | 25,971 | 10,996 | (1,780 | ) | 13,228 | 30,746 | ||||||||||||||
Non-interest income | ||||||||||||||||||||
Mark-to-market (losses) gains, net | 301 | (1,874 | ) | 1,987 | (449 | ) | 4,071 | |||||||||||||
Securities impairment charges | (103 | ) | (1,748 | ) | (1,044 | ) | (1,674 | ) | (38,405 | ) | ||||||||||
Gains on sales of investment securities, net | 8,218 | 167 | 4,146 | 10,867 | 7 | |||||||||||||||
Trust and investment advisory services | 1,213 | 2,320 | 2,369 | 2,361 | 2,237 | |||||||||||||||
Service charges | 2,197 | 2,298 | 2,212 | 1,980 | 1,682 | |||||||||||||||
Operating lease income | 964 | 1,091 | 1,079 | 894 | 1,003 | |||||||||||||||
Bank owned life insurance | 719 | 669 | 574 | 435 | 514 | |||||||||||||||
Other | 1,120 | 1,346 | 1,224 | 1,033 | 1,063 | |||||||||||||||
14,629 | 4,269 | 12,547 | 15,447 | (27,828 | ) | |||||||||||||||
Non-interest expenses: | ||||||||||||||||||||
Salaries and employee benefits | 21,440 | 20,807 | 23,694 | 23,384 | 23,619 | |||||||||||||||
Occupancy | 4,787 | 5,040 | 5,346 | 5,196 | 5,220 | |||||||||||||||
Insurance | 3,492 | 2,991 | 2,326 | 5,061 | 1,647 | |||||||||||||||
Repossessed asset and loan expenses | 2,364 | 1,779 | 1,430 | 2,078 | 1,077 | |||||||||||||||
Net (gain) loss on sales and valuations of repossessed assets | (1,014 | ) | 5,081 | 7,283 | 3,974 | 4,936 | ||||||||||||||
Legal, professional and director's fees | 1,868 | 3,978 | 1,810 | 1,821 | 1,364 | |||||||||||||||
Marketing | 1,156 | 1,185 | 543 | 1,368 | 1,211 | |||||||||||||||
Intangible amortization | 907 | 945 | 945 | 945 | 945 | |||||||||||||||
Customer service | 1,065 | 1,145 | 1,001 | 1,127 | 1,017 | |||||||||||||||
Data Processing | 791 | 971 | 951 | 1,215 | 1,137 | |||||||||||||||
Operating lease depreciation | 689 | 750 | 722 | 838 | 919 | |||||||||||||||
Goodwill impairment | - | 4,095 | 576 | - | 45,000 | |||||||||||||||
Other | 3,298 | 2,553 | 3,821 | 3,166 | 2,944 | |||||||||||||||
40,843 | 51,320 | 50,448 | 50,173 | 91,036 | ||||||||||||||||
Loss from continuing operations before income taxes | (243 | ) | (36,055 | ) | (39,681 | ) | (21,498 | ) | (88,118 | ) | ||||||||||
Income tax benefit | (1,562 | ) | (10,258 | ) | (16,724 | ) | (8,427 | ) | (3,044 | ) | ||||||||||
Income (loss) from continuing operations | $ | 1,319 | $ | (25,797 | ) | $ | (22,957 | ) | $ | (13,071 | ) | $ | (85,074 | ) | ||||||
Loss from discontinued operations, net of tax | (935 | ) | (1,115 | ) | (958 | ) | (1,066 | ) | (1,368 | ) | ||||||||||
Net income (loss) | $ | 384 | $ | (26,912 | ) | $ | (23,915 | ) | $ | (14,137 | ) | $ | (86,442 | ) | ||||||
Preferred stock dividends | 1,750 | 1,750 | 1,750 | 1,750 | 1,750 | |||||||||||||||
Accretion on preferred stock | 716 | 697 | 689 | 674 | 682 | |||||||||||||||
Net loss available to common stockholders | $ | (2,082 | ) | $ | (29,359 | ) | $ | (26,354 | ) | $ | (16,561 | ) | $ | (88,874 | ) | |||||
Loss per share | $ | (0.03 | ) | $ | (0.41 | ) | $ | (0.37 | ) | $ | (0.31 | ) | $ | (2.33 | ) | |||||
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||
2010 | 2009 | 2009 | 2009 | 2009 | ||||||||||||||||
Assets: | (in millions) | |||||||||||||||||||
Cash and due from banks | $ | 827.6 | $ | 393.3 | $ | 752.9 | $ | 548.6 | $ | 224.3 | ||||||||||
Federal funds sold and other | 2.4 | 3.5 | 5.0 | 20.3 | 3.3 | |||||||||||||||
Cash and cash equivalents | 830.0 | 396.8 | 757.9 | 568.9 | 227.6 | |||||||||||||||
Securities and money market investments | 781.1 | 864.8 | 727.8 | 725.7 | 583.6 | |||||||||||||||
Loans: | ||||||||||||||||||||
Construction and land development | 556.9 | 623.2 | 685.2 | 727.4 | 793.5 | |||||||||||||||
Commercial real estate - owner occupied | 1,209.3 | 1,091.4 | 1,095.3 | 1,071.1 | 1,074.6 | |||||||||||||||
Commercial real estate - non-owner occupied | 902.9 | 933.2 | 830.4 | 794.9 | 752.6 | |||||||||||||||
Residential real estate | 560.2 | 568.3 | 600.4 | 595.0 | 586.5 | |||||||||||||||
Commercial | 757.9 | 802.2 | 687.7 | 768.9 | 806.8 | |||||||||||||||
Consumer | 77.6 | 80.3 | 77.3 | 80.5 | 71.2 | |||||||||||||||
Deferred fees, net | (5.7 | ) | (19.0 | ) | (8.3 | ) | (8.9 | ) | (9.5 | ) | ||||||||||
4,059.1 | 4,079.6 | 3,968.0 | 4,028.9 | 4,075.7 | ||||||||||||||||
Allowance for credit losses | (112.7 | ) | (108.6 | ) | (104.2 | ) | (84.1 | ) | (77.2 | ) | ||||||||||
Loans, net | 3,946.4 | 3,971.0 | 3,863.8 | 3,944.8 | 3,998.5 | |||||||||||||||
Premises and equipment, net | 121.2 | 125.9 | 128.6 | 136.7 | 138.1 | |||||||||||||||
Other repossessed assets | 105.6 | 83.3 | 72.8 | 42.1 | 15.5 | |||||||||||||||
Bank owned life insurance | 93.2 | 92.5 | 91.8 | 91.3 | 90.8 | |||||||||||||||
Goodwill and other intangibles | 42.2 | 43.1 | 51.6 | 53.1 | 54.1 | |||||||||||||||
Other assets | 176.5 | 175.9 | 137.0 | 138.9 | 159.1 | |||||||||||||||
Total assets | $ | 6,096.2 | $ | 5,753.3 | $ | 5,831.3 | $ | 5,701.5 | $ | 5,267.3 | ||||||||||
Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Non-interest bearing demand deposits | $ | 1,348.7 | $ | 1,157.0 | $ | 1,154.8 | $ | 1,108.6 | $ | 1,039.2 | ||||||||||
Interest bearing | ||||||||||||||||||||
Demand | 510.2 | 362.7 | 339.4 | 296.3 | 260.6 | |||||||||||||||
Savings and money market | 1,798.5 | 1,752.5 | 1,802.5 | 1,704.2 | 1,579.0 | |||||||||||||||
Time certificates | 1,532.7 | 1,449.9 | 1,455.5 | 1,283.1 | 1,182.7 | |||||||||||||||
Total deposits | 5,190.1 | 4,722.1 | 4,752.2 | 4,392.2 | 4,061.5 | |||||||||||||||
Customer repurchase agreements | 169.1 | 223.3 | 264.1 | 300.4 | 272.3 | |||||||||||||||
Total customer funds | 5,359.2 | 4,945.4 | 5,016.3 | 4,692.6 | 4,333.8 | |||||||||||||||
Borrowings | 20.0 | 29.4 | 79.4 | 254.4 | 370.8 | |||||||||||||||
Junior subordinated and subordinated debt | 102.3 | 102.4 | 101.9 | 102.3 | 102.8 | |||||||||||||||
Accrued interest payable and other liabilities | 39.0 | 100.4 | 30.8 | 30.6 | 33.0 | |||||||||||||||
Total liabilities | 5,520.5 | 5,177.6 | 5,228.4 | 5,079.9 | 4,840.4 | |||||||||||||||
Stockholders' Equity | ||||||||||||||||||||
Common stock and additional paid-in capital | 686.0 | 684.1 | 682.0 | 680.1 | 486.2 | |||||||||||||||
Preferred Stock | 128.7 | 127.9 | 127.3 | 126.6 | 125.9 | |||||||||||||||
Retained earnings (deficit) | (243.7 | ) | (241.7 | ) | (212.4 | ) | (186.0 | ) | (169.5 | ) | ||||||||||
Accumulated other comprehensive income (loss) | 4.7 | 5.4 | 6.0 | 0.9 | (15.7 | ) | ||||||||||||||
Total stockholders' equity | 575.7 | 575.7 | 602.9 | 621.6 | 426.9 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 6,096.2 | $ | 5,753.3 | $ | 5,831.3 | $ | 5,701.5 | $ | 5,267.3 | ||||||||||
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
Changes in the Allowance For Credit Losses | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
Mar. 31, | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | ||||||||||||||||
2010 | 2009 | 2009 | 2009 | 2009 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 108,623 | $ | 104,181 | $ | 84,143 | $ | 77,184 | $ | 74,827 | ||||||||||
Provision for credit losses | 28,747 | 40,792 | 50,750 | 37,573 | 19,984 | |||||||||||||||
Recoveries of loans previously charged-off: | ||||||||||||||||||||
Construction and land development | 409 | 888 | 608 | 212 | - | |||||||||||||||
Commercial real estate | 22 | 91 | 139 | - | - | |||||||||||||||
Residential real estate | 231 | 340 | 11 | 143 | 51 | |||||||||||||||
Commercial and industrial | 1,238 | 216 | 442 | 501 | 370 | |||||||||||||||
Consumer | 67 | 42 | 6 | 96 | 29 | |||||||||||||||
Total recoveries | 1,967 | 1,577 | 1,206 | 952 | 450 | |||||||||||||||
Loans charged-off: | ||||||||||||||||||||
Construction and land development | 8,638 | 9,859 | 13,717 | 10,381 | 1,850 | |||||||||||||||
Commercial real estate | 5,884 | 6,204 | 3,125 | 6,310 | 1,117 | |||||||||||||||
Residential real estate | 5,855 | 5,909 | 5,619 | 6,427 | 6,127 | |||||||||||||||
Commercial and industrial | 4,757 | 14,924 | 8,329 | 7,355 | 7,965 | |||||||||||||||
Consumer | 1,479 | 1,031 | 1,128 | 1,093 | 1,018 | |||||||||||||||
Total loans charged-off | 26,613 | 37,927 | 31,918 | 31,566 | 18,077 | |||||||||||||||
Net loans charged-off | 24,646 | 36,350 | 30,712 | 30,614 | 17,627 | |||||||||||||||
Balance, end of period | $ | 112,724 | $ | 108,623 | $ | 104,181 | $ | 84,143 | $ | 77,184 | ||||||||||
Net charge-offs (annualized) to average loans outstanding | 2.43 | % | 3.68 | % | 3.05 | % | 3.00 | % | 1.72 | % | ||||||||||
Allowance for credit losses to gross loans | 2.78 | 2.66 | 2.62 | 2.09 | 1.89 | |||||||||||||||
Nonaccrual loans | $ | 148,760 | $ | 153,702 | $ | 166,286 | $ | 116,377 | $ | 98,653 | ||||||||||
Repossessed assets | 105,637 | 83,347 | 72,795 | 42,137 | 16,455 | |||||||||||||||
Loans past due 90 days, still accruing | 8,437 | 5,538 | 2,538 | 36,060 | 53,239 | |||||||||||||||
Loans past due 30 to 89 days, still accruing | 38,611 | 50,376 | 43,980 | 75,480 | 53,123 | |||||||||||||||
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||||
Interest earning assets | ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | ||||||||||||||||
Investment securities (1) | $ | 823.5 | $ | 6,304 | 3.22 | % | $ | 579.2 | $ | 6,892 | 5.11 | % | ||||||||
Federal funds sold and other | 32.6 | 53 | 0.66 | % | 12.2 | 23 | 0.76 | % | ||||||||||||
Loans (1) | 4,053.5 | 62,167 | 6.22 | % | 4,088.2 | 63,253 | 6.27 | % | ||||||||||||
Short term investments | 389.8 | 183 | 0.19 | % | - | - | 0.00 | % | ||||||||||||
Investment in restricted stock | 41.4 | 27 | 0.26 | % | 41.0 | - | 0.00 | % | ||||||||||||
Total interest earning assets | 5,340.8 | 68,734 | 5.24 | % | 4,720.6 | 70,168 | 6.06 | % | ||||||||||||
Non-interest earning assets | ||||||||||||||||||||
Cash and due from banks | 98.2 | 153.5 | ||||||||||||||||||
Allowance for credit losses | (117.7 | ) | (77.4 | ) | ||||||||||||||||
Bank owned life insurance | 92.8 | 90.8 | ||||||||||||||||||
Other assets | 400.5 | 383.8 | ||||||||||||||||||
Total assets | $ | 5,814.6 | $ | 5,271.3 | ||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Interest-bearing transaction accounts | $ | 450.0 | $ | 783 | 0.71 | % | $ | 248.3 | $ | 701 | 1.14 | % | ||||||||
Savings and money market | 1,784.2 | 4,676 | 1.06 | % | 1,459.0 | 7,113 | 1.98 | % | ||||||||||||
Time certificates of deposit | 1,482.6 | 6,620 | 1.81 | % | 1,108.3 | 7,836 | 2.87 | % | ||||||||||||
3,716.8 | 12,079 | 1.32 | % | 2,815.6 | 15,650 | 2.25 | % | |||||||||||||
Borrowings | 229.5 | 733 | 1.30 | % | 870.7 | 2,525 | 1.18 | % | ||||||||||||
Junior subordinated and subordinated debt | 102.4 | 1,204 | 4.77 | % | 103.0 | 1,263 | 4.97 | % | ||||||||||||
Total interest-bearing liabilities | 4,048.7 | 14,016 | 1.40 | % | 3,789.3 | 19,438 | 2.08 | % | ||||||||||||
Noninterest-bearing liabilities | ||||||||||||||||||||
Noninterest-bearing demand deposits | 1,150.2 | 954.8 | ||||||||||||||||||
Other liabilities | 28.8 | 27.9 | ||||||||||||||||||
Stockholders’ equity | 586.9 | 499.3 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ | 5,814.6 | $ | 5,271.3 | ||||||||||||||||
Net interest income and margin | $ | 54,718 | 4.17 | % | $ | 50,730 | 4.39 | % | ||||||||||||
Net interest spread | 3.84 | % | 3.99 | % | ||||||||||||||||
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $244 and $400 for the first quarter ended 2010 and 2009, respectively. |
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
Operating Segment Results | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
| Inter- | Consoli- | ||||||||||||||||||||||||||
Asset | Elimi- | dated | ||||||||||||||||||||||||||
Nevada | California | Arizona | Management | Other | nations | Company | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||
At March 31, 2010 | ||||||||||||||||||||||||||||
Assets | $ | 3,317.4 | $ | 1,393.5 | $ | 1,369.7 | $ | 6.2 | $ | 615.3 | $ | (605.9 | ) | $ | 6,096.2 | |||||||||||||
Gross loans and deferred fees, net | 2,384.6 | 934.7 | 782.8 | - | - | (43.0 | ) | 4,059.1 | ||||||||||||||||||||
Less: Allowance for credit losses | (78.8 | ) | (16.7 | ) | (17.2 | ) | - | - | - | (112.7 | ) | |||||||||||||||||
Net loans | 2,305.8 | 918.0 | 765.6 | - | - | (43.0 | ) | 3,946.4 | ||||||||||||||||||||
Goodwill | 23.2 | - | - | 2.7 | - | - | 25.9 | |||||||||||||||||||||
Deposits | 2,740.8 | 1,215.7 | 1,237.0 | - | - | (3.4 | ) | 5,190.1 | ||||||||||||||||||||
Stockholders' equity | 346.7 | 127.7 | 79.7 | 5.3 | 575.6 | (559.3 | ) | 575.7 | ||||||||||||||||||||
No. of branches | 19 | 9 | 10 | - | - | - | 38 | |||||||||||||||||||||
No. of FTE | 541 | 206 | 138 | 24 | 39 | - | 948 | |||||||||||||||||||||
Three Months Ended March 31, 2010: | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Net interest income | $ | 30,979 | $ | 14,314 | $ | 9,564 | $ | 2 | $ | (141 | ) | $ | - | $ | 54,718 | |||||||||||||
Provision for credit losses | 23,989 | 2,725 | 2,033 | - | 0 | - | 28,747 | |||||||||||||||||||||
Net interest income (loss) after provision for credit losses | ||||||||||||||||||||||||||||
6,990 | 11,589 | 7,531 | 2 | (141 | ) | - | 25,971 | |||||||||||||||||||||
Non-interest income | 8,225 | 896 | 1,605 | 1,219 | 2,227 | 457 | 14,629 | |||||||||||||||||||||
Non-interest expense | (19,336 | ) | (11,368 | ) | (7,595 | ) | (945 | ) | (3,303 | ) | 1,704 | (40,843 | ) | |||||||||||||||
Income (loss) from continuing operations before income taxes | ||||||||||||||||||||||||||||
(4,121 | ) | 1,117 | 1,541 | 276 | (1,217 | ) | 2,161 | (243 | ) | |||||||||||||||||||
Income tax expense (benefit) | (1,426 | ) | 628 | 704 | 132 | (1,600 | ) | - | (1,562 | ) | ||||||||||||||||||
Income (loss) from continuing operations | ||||||||||||||||||||||||||||
(2,695 | ) | 489 | 837 | 144 | 383 | 2,161 | 1,319 | |||||||||||||||||||||
Loss from discontinued operations, net | - | - | - | - | (935 | ) | - | (935 | ) | |||||||||||||||||||
Net income (loss) | $ | (2,695 | ) | $ | 489 | $ | 837 | $ | 144 | $ | 383 | $ | 2,161 | $ | 384 | |||||||||||||
Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
Operating Segment Results | ||||||||||||||||||||||||||||
Unaudited | ||||||||||||||||||||||||||||
Inter- | Consoli- | |||||||||||||||||||||||||||
Asset | Elimi- | dated | ||||||||||||||||||||||||||
Nevada | California | Arizona | Management | Other | nations | Company | ||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||
At March 31, 2009 | ||||||||||||||||||||||||||||
Assets | $ | 3,529.8 | $ | 1,069.1 | $ | 886.3 | $ | 19.6 | $ | 37.4 | $ | (274.9 | ) | $ | 5,267.3 | |||||||||||||
Gross loans and deferred fees | 2,643.0 | 793.6 | 682.1 | - | - | (43.0 | ) | 4,075.7 | ||||||||||||||||||||
Less: Allowance for credit losses | (49.7 | ) | (13.3 | ) | (14.1 | ) | - | - | - | (77.1 | ) | |||||||||||||||||
Net loans | 2,593.3 | 780.3 | 668.0 | - | - | (43.0 | ) | 3,998.6 | ||||||||||||||||||||
Goodwill | 23.2 | - | - | 10.7 | - | - | 33.9 | |||||||||||||||||||||
Deposits | 2,367.0 | 967.0 | 733.0 | - | - | (5.6 | ) | 4,061.4 | ||||||||||||||||||||
Stockholders' equity | 279.0 | 75.3 | 64.5 | 17.1 | (9.0 | ) | - | 426.9 | ||||||||||||||||||||
No. of branches | 21 | 9 | 11 | - | - | - | 41 | |||||||||||||||||||||
No. of FTE | 616 | 227 | 150 | 48 | 43 | - | 1,084 | |||||||||||||||||||||
Three Months Ended March 31, 2009 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Net interest income | $ | 32,647 | $ | 11,176 | $ | 7,728 | $ | 15 | $ | (836 | ) | $ | - | $ | 50,730 | |||||||||||||
Provision for credit losses | 10,760 | 3,741 | 5,483 | - | - | - | 19,984 | |||||||||||||||||||||
Net interest income after provision for credit losses | ||||||||||||||||||||||||||||
21,887 | 7,435 | 2,245 | 15 | (836 | ) | - | 30,746 | |||||||||||||||||||||
Non-interest income | (15,776 | ) | (2,383 | ) | 807 | 2,244 | (5,306 | ) | (7,414 | ) | (27,828 | ) | ||||||||||||||||
Goodwill impairment charge | (45,000 | ) | - | - | - | - | - | (45,000 | ) | |||||||||||||||||||
Non-interest expense | (23,802 | ) | (8,965 | ) | (8,931 | ) | (2,218 | ) | (3,078 | ) | 958 | (46,036 | ) | |||||||||||||||
Loss from continuing operations before income taxes | ||||||||||||||||||||||||||||
(62,691 | ) | (3,913 | ) | (5,879 | ) | 41 | (9,220 | ) | (6,456 | ) | (88,118 | ) | ||||||||||||||||
Income tax expense (benefit) | 1,446 | 1,539 | (1,907 | ) | 85 | (1,947 | ) | (2,260 | ) | (3,044 | ) | |||||||||||||||||
Income(loss) from continuing operations | ||||||||||||||||||||||||||||
(64,137 | ) | (5,452 | ) | (3,972 | ) | (44 | ) | (7,273 | ) | (4,196 | ) | (85,074 | ) | |||||||||||||||
Loss from discontinued operations, net | - | - | - | - | (1,368 | ) | - | (1,368 | ) | |||||||||||||||||||
Net income (loss) | $ | (64,137 | ) | $ | (5,452 | ) | $ | (3,972 | ) | $ | (44 | ) | $ | (7,273 | ) | $ | (4,196 | ) | $ | (86,442 | ) | |||||||
CONTACT:
Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO
602-952-5445
INVESTOR CONTACT:
Dale Gibbons, CFO
702-252-6236