Exhibit 99.1
Western Alliance Reports Fourth Quarter 2011 Net Income of $7.1 million, or $0.07 per share
Full Year Net Income of $31.5 million, or $0.19 per share
Fourth Quarter Loan Growth of $254 million
2011 Loan Growth of $540 million, Deposit Growth of $320 million
Fourth Quarter Net Interest Margin of 4.51 percent
Full Year Net Interest Margin of 4.37 percent
PHOENIX--(BUSINESS WIRE)--January 19, 2012--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the fourth quarter 2011.
Fourth Quarter 2011 Highlights:
- Net income of $7.1 million, including loss on repossessed assets valuations/sales of $5.0 million, net of tax
- Earnings per share of $0.07, compared to $0.04 per share for the third quarter 2011
- Pre-tax, pre-provision operating earnings of $31.5 million, up 12.1% from $28.1 million in third quarter 2011 and up 26.0% from $25.0 million in fourth quarter 20101
- Net interest margin of 4.51% compared to 4.29% in the third quarter 2011 and 4.26% in the fourth quarter 2010
- Total loans of $4.78 billion, up $254 million from September 30, 2011 and up $540 million from December 31, 2010
- Total deposits of $5.66 billion, up $26 million from September 30, 2011 and up $320 million from December 31, 2010
- Nonperforming assets (nonaccrual loans and repossessed assets) declined to 2.6% of total assets from 3.1% in third quarter 2011 and 3.6% in fourth quarter 2010
- Net loan charge-offs of $14.1 million, down from $15.3 million for the third quarter 2011 and from $15.9 million in fourth quarter 2010
- Tier I Leverage capital of 9.8% and Total Risk-Based Capital ratio of 12.6%, compared to 9.5% and 13.2% a year ago
- Total equity of $636.7 million, up $4.4 million from September 30, 2011 and up $34.5 million from December 31, 2010
Financial Performance
Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation, commented, “We are very pleased with our 2011 results as we substantially increased loans to small businesses, produced consistent quarterly net income while growing net interest margin and improving our efficiency ratio. Asset quality improved throughout the year as nonaccrual, watch, and classified loans all declined from the prior year. I am proud of the people at Western Alliance Bancorporation and the leadership they demonstrated in accomplishing these results.” Mr. Sarver also noted, “Fourth quarter results will position the Company for success in 2012 by riding the momentum of higher loan growth, along with a stable net interest margin, expense management, and continued improvement in asset quality.”
Ken Vecchione, President and Chief Operating Officer, added, “As the economy continues to recover, Western Alliance Bancorporation stands ready to support the businesses and communities we serve by providing continued access to credit. Our capital strength and commitment to serve our customers leads us to be optimistic regarding our loan and deposit pipelines in 2012.” Mr. Vecchione further added, “Our disciplined approach to pricing both loans and deposits, and the management of our investment portfolio produced a fourth quarter net interest margin of 4.51 percent and full year net interest margin of 4.37 percent. Higher net interest income and contained expenses supported our record $31.5 million pre-tax, pre-credit income.1 Our core earnings momentum and favorable trends in asset quality, position us for increased operating net income in future quarters.”
Western Alliance Bancorporation reported net income of $7.1 million, or $0.7 per share in the fourth quarter 2011. Income from continuing operations before income tax was $9.6 million, including pre-tax net unrealized losses from assets/liabilities measured at fair value of $0.6 million. The income included a $0.06 per common share charge from repossessed assets valuations/sales.
Full year net income was $31.5 million compared to a $7.2 million loss in 2010. Full year earnings per share were $0.19 compared to a $0.23 per share loss for 2010.
Total loans increased $254 million to $4.78 billion at December 31, 2011 from $4.53 billion on September 30, 2011. This increase was driven by growth in commercial and industrial loans and commercial real estate loans. Loans increased $540 million, or 12.7 percent from December 31, 2010.
Total deposits increased $26 million to $5.66 billion at December 31, 2011 from $5.63 billion at September 30, 2011, with growth primarily in non-interest bearing demand, interest bearing demand and savings and money market accounts, partially offset by declines in certificates of deposit. Deposits increased $320 million, or 6.0 percent from December 31, 2010.
Income Statement
Net interest income of $68.7 million in the fourth quarter 2011 increased by 6.4 percent compared to the third quarter 2011 and 12.8 percent compared to the fourth quarter 2010. The net interest margin in the fourth quarter 2011 was 4.51 percent compared to 4.29 percent in the third quarter 2011 and 4.26 percent in the fourth quarter of 2010.
Operating non-interest income was $5.6 million for the fourth quarter 2011,1 a decrease from $5.9 million for the third quarter of 2011 and $6.0 million for the fourth quarter of 2010.1
Net revenue was $74.3 million for the fourth quarter 2011, a 5.4 percent increase from $70.5 million for the third quarter of 2011 and 11.1 percent from $66.9 million for the fourth quarter 2010.1
Operating non-interest expense was $42.8 million for the fourth quarter 2011, compared to $42.4 million for the third quarter of 2011 and $41.9 million for the fourth quarter of 2010.1 The Company’s operating efficiency ratio on a tax equivalent basis was 56.5 percent for the fourth quarter 2011, improved from 62.2 percent for the fourth quarter 2010.1
The Company had 942 full-time equivalent employees at December 31, 2011, compared to 908 one year ago.
A key performance metric for the Company is its pre-tax, pre-provision operating earnings, which it defines as net operating revenue less its operating non-interest expense.1 For the fourth quarter 2011, the Company’s performance on this metric was $31.5 million, up from $28.1 million in the third quarter 2011 and $25.0 million in the fourth quarter 2010.1
The provision for credit losses was $13.1 million for the fourth quarter 2011 compared to $11.2 million for the third quarter 2011. The provision for the fourth quarter of 2010 was $18.4 million. Net loan charge-offs in the fourth quarter 2011 were $14.1 million or 1.24 percent of average loans (annualized), down from $15.3 million or 1.40 percent of average loans (annualized) for the third quarter 2011 due to decreased residential real estate loan charge-offs. Net charge-offs for the fourth quarter 2010 were $15.9 million or 1.52% of average loans (annualized).
Nonaccrual loans and repossessed assets decreased to $179.5 million or 2.6 percent of total assets at December 31, 2011, from $200.4 million or 3.1 percent of total assets at September 30, 2011, and from $224.7 million or 3.6 percent of total assets at December 31, 2010. Loans past due 90 days and still accruing totaled $2.6 million at December 31, 2011, up from $2.1 million at September 30, 2011 and $1.5 million at December 31, 2010. Loans past due 30-89 days totaled $13.7 million at quarter end, up slightly from $12.4 million at September 30, 2011 and down from $18.2 million at December 31, 2010.
Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 39 percent at December 31, 2011 from 52 percent at December 31, 2010.1
Net loss on sales and valuation of repossessed assets (primarily other real estate) was $7.7 million for the fourth quarter 2011 compared to $2.1 million in the prior quarter. At December 31, 2011, other repossessed assets were valued at $89 million compared to $87 million at September 30, 2011 and $108 million one year ago.
Balance Sheet
Gross loans totaled $4.78 billion at December 31, 2011, an increase of $254 million from September 30, 2011 and an increase of $540 million from $4.24 billion at December 31, 2010. At December 31, 2011 the allowance for credit losses was 2.07 percent of total loans down from 2.21 percent at September 30, 2011 and 2.61 percent at December 31, 2010.
Deposits totaled $5.66 billion at December 31, 2011, an increase of $26 million from $5.63 billion at September 30, 2011 and an increase of $320 million from $5.34 billion at December 31, 2010.
Non-interest bearing deposits increased $39 million at December 31, 2011 from September 30, 2011 and increased $115 million from $1.44 billion at December 31, 2010. Non-interest bearing deposits comprised 27.5 percent of total deposits at December 31, 2011, compared to 27.0 percent a year ago.
At December 31, 2011, the Company’s loans were 84.5 percent of deposits compared to 80.4 percent at September 30, 2011 and 79.4 percent at December 31, 2010.
Stockholders’ equity at December 31, 2011 increased to $636.7 million from $632.3 million at September 30, 2011. At December 31, 2011, tangible common equity was 6.8 percent of tangible assets1 and total risk-based capital was 12.6 percent of risk-weighted assets.
Total assets increased to $6.84 billion at December 31, 2011 from $6.55 billion at September 30, 2011 and increased 11 percent from $6.19 billion at December 31, 2010.
Operating Unit Highlights
Bank of Nevada reported that loans increased by $7 million during the fourth quarter of 2011 and declined $55 million during the last 12 months to $1.86 billion at December 31, 2011. Deposits decreased $89 million in the fourth quarter of 2011 and decreased $11 million over the last twelve months to $2.38 billion. Net income for Bank of Nevada was $1.2 million for the fourth quarter 2011, compared with net income of $1.7 million for the third quarter of 2011 and net loss of $5.8 million during the fourth quarter 2010.
Western Alliance Bank reported loan growth of $160 million during the fourth quarter 2011 and $340 million during the last 12 months to $1.64 billion. Deposits increased $109 million in the fourth quarter and $206 million during the last 12 months to $1.88 billion. Net income for Western Alliance Bank was $5.6 million during the fourth quarter 2011 compared with net income of $5.5 million during the third quarter of 2011 and net income of $3.6 million during the fourth quarter 2010.
The Torrey Pines Bank segment, which excludes discontinued operations, reported that loans increased $86 million during the fourth quarter 2011 and $255 million during the last 12 months to $1.32 billion. Deposits increased $17 million in the fourth quarter 2011 and $135 million over the last 12 months to $1.42 billion. Net income for Torrey Pines Bank was $5.9 million during the fourth quarter 2011 compared with net income of $5.4 million for the third quarter of 2011 and net income of $3.2 million during the fourth quarter 2010.
Attached to this press release is summarized financial information for the quarter ended December 31, 2011.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter 2011 financial results at 12:00 p.m. ET on Friday, January 20, 2012. Participants may access the call by dialing 1-866-843-0890 and using passcode: 2758674 or via live audio webcast using the website link: https://services.choruscall.com/links/wal120120.html. The webcast is also available via our website at www.westernalliancebancorp.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 2:00 p.m. ET January 20th through January 31st at 2:00 p.m. ET by dialing 1-877-344-7529 using the conference number 10008804.
About Western Alliance Bancorporation
Western Alliance Bancorporation is the parent company of Bank of Nevada, Western Alliance Bank doing business as Alliance Bank of Arizona and First Independent Bank, Torrey Pines 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.
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.
This press release contains both financial measures based on accounting principles generally accepted in the United States (“GAAP”) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Western Alliance Bancorporation’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 16
| | | | | | | | | | | | | | | | | | | | | |
| 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, | |
| | | | 2011 | | | | 2010 | | | | Change % | | | | 2011 | | | | 2010 | | | | Change % | |
| | | | (in thousands, except per share data) | |
| Selected Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in millions) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | | | $ | 6,844.5 | | | | | $ | 6,193.9 | | | | | 10.5 | | % | | | | | | | | | | | | |
| Loans, net of deferred fees | | | | | 4,780.1 | | | | | | 4,240.5 | | | | | 12.7 | | | | | | | | | | | | | | |
| Securities and money market investments | | | | | 1,490.5 | | | | | | 1,273.1 | | | | | 17.1 | | | | | | | | | | | | | | |
| Federal funds sold | | | | | - | | | | | | 0.9 | | | | | | | | | | | | | | | | | | |
| Total deposits | | | | | 5,658.5 | | | | | | 5,338.4 | | | | | 6.0 | | | | | | | | | | | | | | |
| Borrowings | | | | | 476.9 | | | | | | 182.4 | | | | | 161.5 | | | | | | | | | | | | | | |
| Junior subordinated debt | | | | | 37.0 | | | | | | 43.0 | | | | | (14.0 | ) | | | | | | | | | | | | | |
| Stockholders' equity | | | | | 636.7 | | | | | | 602.2 | | | | | 5.7 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Selected Income Statement Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
| (dollars in thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest income | | | | $ | 76,846 | | | | | $ | 72,374 | | | | | 6.2 | | % | | | $ | 296,591 | | | | | $ | 281,813 | | | | | 5.2 | | % |
| Interest expense | | | | | 8,147 | | | | | | 11,463 | | | | | (28.9 | ) | | | | | 38,923 | | | | | | 49,260 | | | | | (21.0 | ) | |
| Net interest income | | | | | 68,699 | | | | | | 60,911 | | | | | 12.8 | | | | | | 257,668 | | | | | | 232,553 | | | | | 10.8 | | |
| Provision for loan losses | | | | | 13,076 | | | | | | 18,384 | | | | | (28.9 | ) | | | | | 46,188 | | | | | | 93,211 | | | | | (50.4 | ) | |
| Net interest income after provision for credit losses | | | | | 55,623 | | | | | | 42,527 | | | | | 30.8 | | | | | | 211,480 | | | | | | 139,342 | | | | | 51.8 | | |
| Non-interest income (loss) | | | | | 4,948 | | | | | | (720 | ) | | | | (787.2 | ) | | | | | 34,457 | | | | | | 46,836 | | | | | (26.4 | ) | |
| Non-interest expense | | | | | 50,963 | | | | | | 56,545 | | | | | (9.9 | ) | | | | | 195,598 | | | | | | 196,758 | | | | | (0.6 | ) | |
Income (loss) from continuing operations before income taxes | | | | | 9,608 | | | | | | (14,738 | ) | | | | (165.2 | ) | | | | | 50,339 | | | | | | (10,580 | ) | | | | (575.8 | ) | |
| Income tax expense (benefit) | | | | | 2,011 | | | | | | (4,580 | ) | | | | 143.9 | | | | | | 16,849 | | | | | | (6,410 | ) | | | | 362.9 | | |
| Income (loss) from continuing operations | | | | | 7,597 | | | | | | (10,158 | ) | | | | (174.8 | ) | | | | | 33,490 | | | | | | (4,170 | ) | | | | (903.1 | ) | % |
| Loss on discontinued operations, net | | | | | (496 | ) | | | | | (657 | ) | | | | 24.5 | | | | | | (1,996 | ) | | | | | (3,025 | ) | | | | | |
| Net income (loss) | | | | $ | 7,101 | | | | | $ | (10,815 | ) | | | | (165.7 | ) | % | | | $ | 31,494 | | | | | $ | (7,195 | ) | | | | | |
| Diluted net income (loss) from continuing operations | | | | $ | 0.07 | | | | | $ | (0.16 | ) | | | | | | | | $ | 0.21 | | | | | $ | (0.19 | ) | | | | | |
| Diluted net loss from discontinued operations, net of tax | | | | $ | (0.01 | ) | | | | $ | (0.01 | ) | | | | | | | | $ | (0.02 | ) | | | | $ | (0.04 | ) | | | | | |
| Diluted net income (loss) per common share | | | | $ | 0.07 | | | | | $ | (0.17 | ) | | | | 141.2 | | % | | | $ | 0.19 | | | | | $ | (0.23 | ) | | | | 181.9 | | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Share Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Diluted net income (loss) per common share | | | | $ | 0.07 | | | | | $ | (0.17 | ) | | | | 141.2 | | % | | | $ | 0.19 | | | | | $ | (0.23 | ) | | | | 181.9 | | % |
| Book value per common share | | | | $ | 6.02 | | | | | $ | 5.77 | | | | | 4.3 | | % | | | | | | | | | | | | |
| Tangible book value per share, net of tax (1) | | | | $ | 5.63 | | | | | $ | 5.35 | | | | | 5.2 | | % | | | | | | | | | | | | |
| Average shares outstanding (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | |
| Basic | | | | | 81,026 | | | | | | 80,522 | | | | | 0.6 | | | | | | 80,909 | | | | | | 75,083 | | | | | 7.8 | | |
| Diluted | | | | | 81,368 | | | | | | 80,522 | | | | | 1.1 | | | | | | 81,183 | | | | | | 75,083 | | | | | 8.1 | | |
| Common shares outstanding | | | | | 82,362 | | | | | | 81,669 | | | | | 0.8 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) See Reconciliation of Non-GAAP Financial Measures | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| 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, | |
| | | | 2011 | | | | 2010 | | | | Change % | | | | 2011 | | | | 2010 | | | | Change % | |
| | | | (in thousands, except per share data) |
| Selected Performance Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (1) | | | | 0.42 | % | | | (0.69 | ) | % | | | (160.9 | ) | % | | | 0.49 | % | | | (0.12 | ) | % | | | (508.3 | ) | % |
| Return on average stockholders' equity (1) | | | | 4.34 | | | | (6.85 | ) | | | | (163.4 | ) | | | | 4.99 | | | | (1.20 | ) | | | | (515.8 | ) | |
| Net interest margin (1) | | | | 4.51 | | | | 4.26 | | | | | 5.9 | | | | | 4.37 | | | | 4.23 | | | | | 3.3 | | |
| Net interest spread | | | | 4.30 | | | | 3.97 | | | | | 8.3 | | | | | 4.12 | | | | 3.92 | | | | | 5.1 | | |
| Efficiency ratio - tax equivalent basis (2) | | | | 56.49 | | | | 62.19 | | | | | (9.2 | ) | | | | | | | | | | | | | |
| Loan to deposit ratio | | | | 84.48 | | | | 79.43 | | | | | 6.4 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tangible equity (2) | | | | 8.8 | % | | | 9.1 | | % | | | (3.5 | ) | % | | | | | | | | | | | | |
| Tangible common equity (2) | | | | 6.8 | | | | 7.0 | | | | | (3.7 | ) | | | | | | | | | | | | | |
| Tier one common equity (2) | | | | 8.1 | | | | 8.5 | | | | | (4.9 | ) | | | | | | | | | | | | | |
| Tier 1 Leverage ratio (3) | | | | 9.8 | | | | 9.5 | | | | | 3.2 | | | | | | | | | | | | | | |
| Tier 1 Risk Based Capital (3) | | | | 11.3 | | | | 12.0 | | | | | (5.8 | ) | | | | | | | | | | | | | |
| Total Risk Based Capital (3) | | | | 12.6 | | | | 13.2 | | | | | (4.5 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net charge-offs to average loans outstanding (1) | | | | 1.24 | % | | | 1.52 | | % | | | (18.4 | ) | % | | | 1.32 | % | | | 2.22 | | % | | | (40.5 | ) | % |
| Nonaccrual loans to gross loans | | | | 1.89 | | | | 2.76 | | | | | (31.5 | ) | | | | | | | | | | | | | |
| Nonaccrual loans and repossessed assets to total assets | | | | 2.62 | | | | 3.63 | | | | | (27.8 | ) | | | | | | | | | | | | | |
| Loans past due 90 days and still accruing to total loans | | | | 0.05 | | | | 0.03 | | | | | 66.7 | | | | | | | | | | | | | | |
| Allowance for credit losses to loans | | | | 2.07 | | | | 2.61 | | | | | (20.7 | ) | | | | | | | | | | | | | |
| Allowance for credit losses to nonaccrual loans | | | | 109.71 | | | | 94.62 | | | | | 15.9 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) Annualized for the three month periods ended December 31, 2011 and 2010. |
| (2) See Reconciliation of Non-GAAP Financial Measures. |
| (3) Capital ratios are preliminary until Call Reports are filed. |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Condensed Consolidated Statements of Operations |
Unaudited |
| | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended | | | | | | Twelve Months Ended |
| | | | December 31, | | | | | | December 31, |
| | | | 2011 | | | | 2010 | | | | | | 2011 | | | | 2010 |
| | | | (dollars in thousands) |
| Interest income: | | | | | | | | | | | | | | |
| Loans | | | | $ | 67,102 | | | | | $ | 64,985 | | | | | | | $ | 261,443 | | | | | $ | 255,626 | |
| Investment securities | | | | | 9,591 | | | | | | 7,054 | | | | | | | | 34,419 | | | | | | 24,916 | |
| Federal funds sold and other | | | | | 153 | | | | | | 335 | | | | | | | | 729 | | | | | | 1,271 | |
| Total interest income | | | | | 76,846 | | | | | | 72,374 | | | | | | | | 296,591 | | | | | | 281,813 | |
| Interest expense: | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | 5,549 | | | | | | 8,652 | | | | | | | | 27,977 | | | | | | 41,329 | |
| Customer repurchase agreements | | | | | 73 | | | | | | 65 | | | | | | | | 336 | | | | | | 538 | |
| Borrowings | | | | | 2,053 | | | | | | 2,032 | | | | | | | | 8,282 | | | | | | 3,745 | |
| Junior subordinated and subordinated debt | | | | | 472 | | | | | | 714 | | | | | | | | 2,328 | | | | | | 3,648 | |
| Total interest expense | | | | | 8,147 | | | | | | 11,463 | | | | | | | | 38,923 | | | | | | 49,260 | |
| Net interest income | | | | | 68,699 | | | | | | 60,911 | | | | | | | | 257,668 | | | | | | 232,553 | |
| Provision for credit losses | | | | | 13,076 | | | | | | 18,384 | | | | | | | | 46,188 | | | | | | 93,211 | |
| Net interest income after provision for credit losses | | | | | 55,623 | | | | | | 42,527 | | | | | | | | 211,480 | | | | | | 139,342 | |
| Non-interest income (loss) | | | | | | | | | | | | | | | | | | |
| Unrealized gains (losses) on assets/liabilities measured at fair value,net | | | | | (626 | ) | | | | | (6,710 | ) | | | | | | | 5,621 | | | | | | (369 | ) |
| Securities impairment charges | | | | | - | | | | | | (12 | ) | | | | | | | (226 | ) | | | | | (1,186 | ) |
| Gains on sales of investment securities, net | | | | | (28 | ) | | | | | - | | | | | | | | 4,798 | | | | | | 19,757 | |
| Trust and investment advisory services | | | | | 583 | | | | | | 608 | | | | | | | | 2,537 | | | | | | 4,003 | |
| Service charges | | | | | 2,238 | | | | | | 2,177 | | | | | | | | 9,102 | | | | | | 8,969 | |
| Operating lease income | | | | | 274 | | | | | | 864 | | | | | | | | 1,878 | | | | | | 3,793 | |
| Bank owned life insurance | | | | | 1,177 | | | | | | 1,027 | | | | | | | | 5,372 | | | | | | 3,299 | |
| Gain on extinguishment of debt | | | | | - | | | | | | - | | | | | | | | - | | | | | | 3,000 | |
| Other | | | | | 1,330 | | | | | | 1,326 | | | | | | | | 5,375 | | | | | | 5,570 | |
| | | | | 4,948 | | | | | | (720 | ) | | | | | | | 34,457 | | | | | | 46,836 | |
| Non-interest expenses: | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | | | 24,021 | | | | | | 21,125 | | | | | | | | 93,140 | | | | | | 86,586 | |
| Occupancy | | | | | 4,948 | | | | | | 5,075 | | | | | | | | 19,972 | | | | | | 19,580 | |
| Insurance | | | | | 2,166 | | | | | | 4,109 | | | | | | | | 11,045 | | | | | | 15,475 | |
| Repossessed asset and loan expenses | | | | | 1,661 | | | | | | 2,230 | | | | | | | | 8,126 | | | | | | 8,076 | |
| Net loss on sales and valuations of repossessed assets | | | | | 7,702 | | | | | | 12,991 | | | | | | | | 24,592 | | | | | | 28,826 | |
| Legal, professional and director's fees | | | | | 2,039 | | | | | | 2,038 | | | | | | | | 7,678 | | | | | | 7,591 | |
| Marketing | | | | | 1,294 | | | | | | 982 | | | | | | | | 4,676 | | | | | | 4,061 | |
| Intangible amortization | | | | | 889 | | | | | | 889 | | | | | | | | 3,559 | | | | | | 3,604 | |
| Customer service | | | | | 716 | | | | | | 1,050 | | | | | | | | 3,336 | | | | | | 4,256 | |
| Data Processing | | | | | 895 | | | | | | 948 | | | | | | | | 3,566 | | | | | | 3,374 | |
| Operating lease depreciation | | | | | 208 | | | | | | 542 | | | | | | | | 1,201 | | | | | | 2,506 | |
| Merger/restructure expense | | | | | 482 | | | | | | 1,651 | | | | | | | | 1,564 | | | | | | 1,651 | |
| Other | | | | | 3,942 | | | | | | 2,915 | | | | | | | | 13,143 | | | | | | 11,172 | |
| | | | | 50,963 | | | | | | 56,545 | | | | | | | | 195,598 | | | | | | 196,758 | |
| Income from continuing operations before income taxes | | | | | 9,608 | | | | | | (14,738 | ) | | | | | | | 50,339 | | | | | | (10,580 | ) |
| Income tax expense (benefit) | | | | | 2,011 | | | | | | (4,580 | ) | | | | | | | 16,849 | | | | | | (6,410 | ) |
| Income (loss) from continuing operations | | | | | 7,597 | | | | | | (10,158 | ) | | | | | | | 33,490 | | | | | | (4,170 | ) |
| Loss from discontinued operations net of tax benefit | | | | | (496 | ) | | | | | (657 | ) | | | | | | | (1,996 | ) | | | | | (3,025 | ) |
| Net income (loss) | | | | | 7,101 | | | | | | (10,815 | ) | | | | | | | 31,494 | | | | | | (7,195 | ) |
| Preferred stock dividends | | | | | 1,781 | | | | | | 1,750 | | | | | | | | 7,033 | | | | | | 7,000 | |
| Accretion on preferred stock discount | | | | | - | | | | | | 734 | | | | | | | | 9,173 | | | | | | 2,882 | |
| Net income (loss) available to common stockholders | | | | $ | 5,320 | | | | | $ | (13,299 | ) | | | | | | $ | 15,288 | | | | | $ | (17,077 | ) |
| Diluted net income (loss) per share | | | | $ | 0.07 | | | | | $ | (0.17 | ) | | | | | | $ | 0.19 | | | | | $ | (0.23 | ) |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Five Quarter Condensed Consolidated Statements of Operations |
Unaudited |
| | | | | | | | | | | | | | | | |
| | | | Three Months Ended |
| | | | December 31, | | | | September 30, | | | | June 30, | | | | March 31, | | | | December 31, |
| | | | 2011 | | | | 2011 | | | | 2011 | | | | 2011 | | | | 2010 |
| | | | (in thousands, except per share data) |
| Interest income: | | | | | | | | | | | | | | | | | | | | |
| Loans | | | | $ | 67,102 | | | | | $ | 65,540 | | | | | $ | 64,919 | | | | | $ | 63,882 | | | | | $ | 64,985 | |
| Investment securities | | | | | 9,591 | | | | | | 8,356 | | | | | | 8,542 | | | | | | 7,930 | | | | | | 7,054 | |
| Federal funds sold and other | | | | | 153 | | | | | | 237 | | | | | | 185 | | | | | | 154 | | | | | | 335 | |
| Total interest income | | | | | 76,846 | | | | | | 74,133 | | | | | | 73,646 | | | | | | 71,966 | | | | | | 72,374 | |
| Interest expense: | | | | | | | | | | | | | | | | | | | | |
| Deposits | | | | | 5,549 | | | | | | 6,982 | | | | | | 7,548 | | | | | | 7,898 | | | | | | 8,652 | |
| Borrowings and customer repurchase agreements | | | | | 2,126 | | | | | | 2,101 | | | | | | 2,123 | | | | | | 2,268 | | | | | | 2,097 | |
| Junior subordinated and subordinated debt | | | | | 472 | | | | | | 465 | | | | | | 689 | | | | | | 702 | | | | | | 714 | |
| Total interest expense | | | | | 8,147 | | | | | | 9,548 | | | | | | 10,360 | | | | | | 10,868 | | | | | | 11,463 | |
| Net interest income | | | | | 68,699 | | | | | | 64,585 | | | | | | 63,286 | | | | | | 61,098 | | | | | | 60,911 | |
| Provision for credit losses | | | | | 13,076 | | | | | | 11,180 | | | | | | 11,891 | | | | | | 10,041 | | | | | | 18,384 | |
| Net interest income after provision for credit losses | | | | | 55,623 | | | | | | 53,405 | | | | | | 51,395 | | | | | | 51,057 | | | | | | 42,527 | |
| Non-interest income | | | | | | | | | | | | | | | | | | | | |
| Mark-to-market gains (losses), net | | | | | (626 | ) | | | | | 6,420 | | | | | | 336 | | | | | | (509 | ) | | | | | (6,710 | ) |
| Securities impairment charges | | | | | - | | | | | | - | | | | | | (226 | ) | | | | | - | | | | | | (12 | ) |
| Gains on sales of investment securities, net | | | | | (28 | ) | | | | | 781 | | | | | | 2,666 | | | | | | 1,379 | | | | | | - | |
| Trust and investment advisory services | | | | | 583 | | | | | | 661 | | | | | | 657 | | | | | | 636 | | | | | | 608 | |
| Service charges | | | | | 2,238 | | | | | | 2,337 | | | | | | 2,243 | | | | | | 2,284 | | | | | | 2,177 | |
| Operating lease income | | | | | 274 | | | | | | 353 | | | | | | 580 | | | | | | 671 | | | | | | 864 | |
| Bank owned life insurance | | | | | 1,177 | | | | | | 1,189 | | | | | | 1,822 | | | | | | 1,184 | | | | | | 1,027 | |
| Other | | | | | 1,330 | | | | | | 1,341 | | | | | | 1,519 | | | | | | 1,185 | | | | | | 1,326 | |
| | | | | 4,948 | | | | | | 13,082 | | | | | | 9,597 | | | | | | 6,830 | | | | | | (720 | ) |
| Non-interest expenses: | | | | | | | | | | | | | | | | | | | | |
| Salaries and employee benefits | | | | | 24,021 | | | | | | 23,319 | | | | | | 22,960 | | | | | | 22,840 | | | | | | 21,125 | |
| Occupancy | | | | | 4,948 | | | | | | 5,126 | | | | | | 5,044 | | | | | | 4,854 | | | | | | 5,075 | |
| Insurance | | | | | 2,166 | | | | | | 2,664 | | | | | | 2,352 | | | | | | 3,863 | | | | | | 4,109 | |
| Repossessed asset and loan expenses | | | | | 1,661 | | | | | | 2,059 | | | | | | 2,284 | | | | | | 2,122 | | | | | | 2,230 | |
| Net loss on sales and valuations of repossessed assets | | | | | 7,702 | | | | | | 2,128 | | | | | | 8,633 | | | | | | 6,129 | | | | | | 12,991 | |
| Legal, professional and director's fees | | | | | 2,039 | | | | | | 1,912 | | | | | | 2,361 | | | | | | 1,366 | | | | | | 2,038 | |
| Marketing | | | | | 1,294 | | | | | | 1,090 | | | | | | 1,135 | | | | | | 1,157 | | | | | | 982 | |
| Intangible amortization | | | | | 889 | | | | | | 890 | | | | | | 890 | | | | | | 890 | | | | | | 889 | |
| Customer service | | | | | 716 | | | | | | 900 | | | | | | 828 | | | | | | 892 | | | | | | 1,050 | |
| Data Processing | | | | | 895 | | | | | | 895 | | | | | | 928 | | | | | | 848 | | | | | | 948 | |
| Operating lease depreciation | | | | | 208 | | | | | | 245 | | | | | | 327 | | | | | | 421 | | | | | | 542 | |
| Merger/restructure expense | | | | | 482 | | | | | | 974 | | | | | | (109 | ) | | | | | 217 | | | | | | 1,651 | |
| Other | | | | | 3,942 | | | | | | 3,279 | | | | | | 3,375 | | | | | | 2,547 | | | | | | 2,915 | |
| | | | | 50,963 | | | | | | 45,481 | | | | | | 51,008 | | | | | | 48,146 | | | | | | 56,545 | |
| Income (loss) from continuing operations before income taxes | | | | | 9,608 | | | | | | 21,006 | | | | | | 9,984 | | | | | | 9,741 | | | | | | (14,738 | ) |
| Income tax expense (benefit) | | | | | 2,011 | | | | | | 7,514 | | | | | | 3,295 | | | | | | 4,029 | | | | | | (4,580 | ) |
| Income (loss) from continuing operations | | | | $ | 7,597 | | | | | $ | 13,492 | | | | | $ | 6,689 | | | | | $ | 5,712 | | | | | $ | (10,158 | ) |
| Loss from discontinued operations, net of tax | | | | | (496 | ) | | | | | (481 | ) | | | | | (460 | ) | | | | | (559 | ) | | | | | (657 | ) |
| Net income (loss) | | | | $ | 7,101 | | | | | $ | 13,011 | | | | | $ | 6,229 | | | | | $ | 5,153 | | | | | $ | (10,815 | ) |
| Preferred stock dividends | | | | | 1,781 | | | | | | 1,752 | | | | | | 1,750 | | | | | | 1,750 | | | | | | 1,750 | |
| Accretion on preferred stock | | | | | - | | | | | | 7,667 | | | | | | 753 | | | | | | 753 | | | | | | 734 | |
| Net Income (loss) available to common stockholders | | | | $ | 5,320 | | | | | $ | 3,592 | | | | | $ | 3,726 | | | | | $ | 2,650 | | | | | $ | (13,299 | ) |
| Diluted net income (loss) per share | | | | $ | 0.07 | | | | | $ | 0.04 | | | | | $ | 0.05 | | | | | $ | 0.03 | | | | | $ | (0.17 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Five Quarter Condensed Consolidated Balance Sheets |
| Unaudited |
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, | | | | September 30, | | | | June 30, | | | | March 31, | | | | December 31, |
| | | | 2011 | | | | 2011 | | | | 2011 | | | | 2011 | | | | 2010 |
| | | | (in millions) |
| Assets: | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | $ | 155.0 | | | | | $ | 306.0 | | | | | $ | 534.6 | | | | | $ | 363.3 | | | | | $ | 215.8 | |
| Federal funds sold | | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | 0.9 | |
| Cash and cash equivalents | | | | | 155.0 | | | | | | 306.0 | | | | | | 534.6 | | | | | | 363.3 | | | | | | 216.7 | |
| | | | | | | | | | | | | | | | | | | | |
| Securities and money market investments | | | | | 1,490.5 | | | | | | 1,304.6 | | | | | | 1,138.2 | | | | | | 1,319.6 | | | | | | 1,273.1 | |
| Loans: | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | | | 1,336.6 | | | | | | 1,152.9 | | | | | | 1,029.5 | | | | | | 935.9 | | | | | | 934.6 | |
| Commercial real estate - owner occupied | | | | | 1,252.2 | | | | | | 1,225.4 | | | | | | 1,285.3 | | | | | | 1,299.5 | | | | | | 1,223.1 | |
| Construction and land development | | | | | 381.7 | | | | | | 404.4 | | | | | | 396.3 | | | | | | 391.7 | | | | | | 451.5 | |
| Commercial real estate - non-owner occupied | | | | | 1,301.2 | | | | | | 1,239.8 | | | | | | 1,170.0 | | | | | | 1,086.9 | | | | | | 1,038.5 | |
| Residential real estate | | | | | 443.0 | | | | | | 450.2 | | | | | | 473.9 | | | | | | 504.5 | | | | | | 527.3 | |
| Consumer | | | | | 72.5 | | | | | | 60.3 | | | | | | 62.6 | | | | | | 65.7 | | | | | | 71.5 | |
| Deferred fees, net | | | | | (7.1 | ) | | | | | (6.5 | ) | | | | | (5.9 | ) | | | | | (6.2 | ) | | | | | (6.0 | ) |
| | | | | 4,780.1 | | | | | | 4,526.5 | | | | | | 4,411.7 | | | | | | 4,278.0 | | | | | | 4,240.5 | |
| Allowance for credit losses | | | | | (99.2 | ) | | | | | (100.2 | ) | | | | | (104.4 | ) | | | | | (106.1 | ) | | | | | (110.7 | ) |
| Loans, net | | | | | 4,680.9 | | | | | | 4,426.3 | | | | | | 4,307.3 | | | | | | 4,171.9 | | | | | | 4,129.8 | |
| | | | | | | | | | | | | | | | | | | | |
| Premises and equipment, net | | | | | 105.5 | | | | | | 106.2 | | | | | | 109.2 | | | | | | 112.0 | | | | | | 114.4 | |
| Other repossessed assets | | | | | 89.1 | | | | | | 86.7 | | | | | | 85.7 | | | | | | 98.3 | | | | | | 107.7 | |
| Bank owned life insurance | | | | | 133.9 | | | | | | 132.7 | | | | | | 131.5 | | | | | | 131.0 | | | | | | 129.8 | |
| Goodwill and other intangibles | | | | | 35.7 | | | | | | 36.6 | | | | | | 37.5 | | | | | | 38.4 | | | | | | 39.3 | |
| Other assets | | | | | 153.9 | | | | | | 146.8 | | | | | | 164.1 | | | | | | 170.3 | | | | | | 183.1 | |
| Total assets | | | | $ | 6,844.5 | | | | | $ | 6,545.9 | | | | | $ | 6,508.1 | | | | | $ | 6,404.8 | | | | | $ | 6,193.9 | |
| Liabilities and Stockholders' Equity: | | | | | | | | | | | | | | | | | | | | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | | | $ | 1,558.2 | | | | | $ | 1,519.0 | | | | | $ | 1,516.8 | | | | | $ | 1,455.1 | | | | | $ | 1,443.3 | |
| Interest bearing | | | | | | | | | | | | | | | | | | | | |
| Demand | | | | | 482.7 | | | | | | 466.0 | | | | | | 456.5 | | | | | | 521.2 | | | | | | 523.8 | |
| Savings and money market | | | | | 2,166.6 | | | | | | 2,151.9 | | | | | | 2,105.4 | | | | | | 2,100.6 | | | | | | 1,926.1 | |
| Time certificates | | | | | 1,451.0 | | | | | | 1,496.0 | | | | | | 1,509.6 | | | | | | 1,420.6 | | | | | | 1,445.2 | |
| Total deposits | | | | | 5,658.5 | | | | | | 5,632.9 | | | | | | 5,588.3 | | | | | | 5,497.5 | | | | | | 5,338.4 | |
| Customer repurchase agreements | | | | | 123.6 | | | | | | 142.6 | | | | | | 148.7 | | | | | | 163.4 | | | | | | 109.4 | |
| Total customer funds | | | | | 5,782.1 | | | | | | 5,775.5 | | | | | | 5,737.0 | | | | | | 5,660.9 | | | | | | 5,447.8 | |
| Borrowings | | | | | 353.3 | | | | | | 73.2 | | | | | | 73.1 | | | | | | 73.0 | | | | | | 73.0 | |
| Junior subordinated debt | | | | | 37.0 | | | | | | 36.3 | | | | | | 42.7 | | | | | | 43.0 | | | | | | 43.0 | |
| Accrued interest payable and other liabilities | | | | | 35.4 | | | | | | 28.6 | | | | | | 39.6 | | | | | | 26.3 | | | | | | 27.9 | |
| Total liabilities | | | | | 6,207.8 | | | | | | 5,913.6 | | | | | | 5,892.4 | | | | | | 5,803.2 | | | | | | 5,591.7 | |
| Stockholders' Equity | | | | | | | | | | | | | | | | | | | | |
| Common stock and additional paid-in capital | | | | | 743.8 | | | | | | 743.0 | | | | | | 741.6 | | | | | | 740.9 | | | | | | 739.6 | |
| Preferred Stock | | | | | 141.0 | | | | | | 141.0 | | | | | | 132.3 | | | | | | 131.6 | | | | | | 130.8 | |
| Retained earnings (deficit) | | | | | (243.5 | ) | | | | | (248.8 | ) | | | | | (252.4 | ) | | | | | (256.2 | ) | | | | | (258.8 | ) |
| Accumulated other comprehensive income (loss) | | | | | (4.6 | ) | | | | | (2.9 | ) | | | | | (5.8 | ) | | | | | (14.7 | ) | | | | | (9.4 | ) |
| Total stockholders' equity | | | | | 636.7 | | | | | | 632.3 | | | | | | 615.7 | | | | | | 601.6 | | | | | | 602.2 | |
| Total liabilities and stockholders' equity | | | | $ | 6,844.5 | | | | | $ | 6,545.9 | | | | | $ | 6,508.1 | | | | | $ | 6,404.8 | | | | | $ | 6,193.9 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Changes in the Allowance For Credit Losses |
| Unaudited |
| |
| | | | Three Months Ended |
| | | | December 31, | | | | September 30, | | | | June 30, | | | | March 31, | | | | December 31, |
| | | | 2011 | | | | 2011 | | | | 2011 | | | | 2011 | | | | 2010 |
| | | | (in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| Balance, beginning of period | | | | $ | 100,216 | | | | | $ | 104,375 | | | | | $ | 106,133 | | | | | $ | 110,699 | | | | | $ | 108,170 | |
| Provision for credit losses | | | | | 13,076 | | | | | | 11,180 | | | | | | 11,891 | | | | | | 10,041 | | | | | | 18,384 | |
| Recoveries of loans previously charged-off: | | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | | | | 354 | | | | | | 707 | | | | | | 677 | | | | | | 416 | | | | | | 773 | |
| Commercial real estate | | | | | 755 | | | | | | 127 | | | | | | 804 | | | | | | 471 | | | | | | 13 | |
| Residential real estate | | | | | 179 | | | | | | 440 | | | | | | 172 | | | | | | 269 | | | | | | 304 | |
| Commercial and industrial | | | | | 603 | | | | | | 1,243 | | | | | | 726 | | | | | | 829 | | | | | | 800 | |
| Consumer | | | | | 64 | | | | | | 41 | | | | | | 44 | | | | | | 25 | | | | | | 36 | |
| Total recoveries | | | | | 1,955 | | | | | | 2,558 | | | | | | 2,423 | | | | | | 2,010 | | | | | | 1,926 | |
| Loans charged-off: | | | | | | | | | | | | | | | | | | | | |
| Construction and land development | | | | | 3,155 | | | | | | 2,369 | | | | | | 1,516 | | | | | | 4,198 | | | | | | 3,221 | |
| Commercial real estate | | | | | 9,244 | | | | | | 2,484 | | | | | | 4,286 | | | | | | 6,114 | | | | | | 7,297 | |
| Residential real estate | | | | | 1,895 | | | | | | 10,555 | | | | | | 3,339 | | | | | | 3,282 | | | | | | 3,278 | |
| Commercial and industrial | | | | | 1,004 | | | | | | 1,420 | | | | | | 5,926 | | | | | | 1,407 | | | | | | 2,823 | |
| Consumer | | | | | 779 | | | | | | 1,069 | | | | | | 1,005 | | | | | | 1,616 | | | | | | 1,162 | |
| Total loans charged-off | | | | | 16,077 | | | | | | 17,897 | | | | | | 16,072 | | | | | | 16,617 | | | | | | 17,781 | |
| Net loans charged-off | | | | | 14,122 | | | | | | 15,339 | | | | | | 13,649 | | | | | | 14,607 | | | | | | 15,855 | |
| Balance, end of period | | | | $ | 99,170 | | | | | $ | 100,216 | | | | | $ | 104,375 | | | | | $ | 106,133 | | | | | $ | 110,699 | |
| | | | | | | | | | | | | | | | | | | | |
| Net charge-offs (annualized) to average loans outstanding | | | | | 1.24 | % | | | | | 1.40 | % | | | | | 1.26 | % | | | | | 1.39 | % | | | | | 1.52 | % |
| Allowance for credit losses to gross loans | | | | | 2.07 | | | | | | 2.21 | | | | | | 2.37 | | | | | | 2.48 | | | | | | 2.61 | |
| Nonaccrual loans | | | | $ | 90,392 | | | | | $ | 113,713 | | | | | $ | 112,750 | | | | | $ | 114,246 | | | | | $ | 116,999 | |
| Repossessed assets | | | | | 89,104 | | | | | | 86,692 | | | | | | 85,732 | | | | | | 98,312 | | | | | | 107,655 | |
| Loans past due 90 days, still accruing | | | | | 2,589 | | | | | | 2,096 | | | | | | 1,134 | | | | | | 1,087 | | | | | | 1,458 | |
| Loans past due 30 to 89 days, still accruing | | | | | 13,731 | | | | | | 12,414 | | | | | | 11,581 | | | | | | 30,689 | | | | | | 18,164 | |
| Classified loans on accrual | | | | | 112,147 | | | | | | 110,654 | | | | | | 126,681 | | | | | | 128,434 | | | | | | 140,377 | |
| Watch loans | | | | | 147,112 | | | | | | 167,571 | | | | | | 190,045 | | | | | | 204,470 | | | | | | 194,905 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Analysis of Average Balances, Yields and Rates |
| Unaudited |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended December 31, |
| | | | 2011 | | | | 2010 |
| | | | Average Balance | | | | Interest | | | | Average
Yield/
Cost | | | | Average
Balance | | | | Interest | | | | Average
Yield/
Cost |
| | | | ($ in millions) | | | | ($ in thousands) | | | | | | | | ($ in millions) | | | | ($ in thousands) | | | | |
| Interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (1) | | | | $ | 1,452.8 | | | | | $ | 9,591 | | | | 3.01 | % | | | | $ | 1,122.8 | | | | | $ | 7,054 | | | | 2.66 | % |
| Federal funds sold and other | | | | | 2.4 | | | | | | - | | | | 0.00 | % | | | | | 3.0 | | | | | | 9 | | | | 1.19 | % |
| Loans (1) | | | | | 4,557.0 | | | | | | 67,102 | | | | 5.84 | % | | | | | 4,169.3 | | | | | | 64,985 | | | | 6.18 | % |
| Short term investments | | | | | 125.1 | | | | | | 127 | | | | 0.40 | % | | | | | 376.7 | | | | | | 269 | | | | 0.28 | % |
| Investment in restricted stock | | | | | 34.1 | | | | | | 26 | | | | 0.30 | % | | | | | 38.5 | | | | | | 57 | | | | 0.59 | % |
| Total interest earning assets | | | | | 6,171.4 | | | | | | 76,846 | | | | 5.03 | % | | | | | 5,710.3 | | | | | | 72,374 | | | | 5.06 | % |
| Non-interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | | 113.4 | | | | | | | | | | | | | | 137.1 | | | | | | | | | |
| Allowance for credit losses | | | | | (100.8 | ) | | | | | | | | | | | | | (111.4 | ) | | | | | | | | |
| Bank owned life insurance | | | | | 133.1 | | | | | | | | | | | | | | 117.0 | | | | | | | | | |
| Other assets | | | | | 351.9 | | | | | | | | | | | | | | 406.9 | | | | | | | | | |
| Total assets | | | | $ | 6,669.0 | | | | | | | | | | | | | $ | 6,259.9 | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing transaction accounts | | | | $ | 475.8 | | | | | $ | 333 | | | | 0.28 | % | | | | $ | 632.5 | | | | | $ | 676 | | | | 0.42 | % |
| Savings and money market | | | | | 2,174.4 | | | | | | 2,431 | | | | 0.44 | % | | | | | 1,930.8 | | | | | | 3,830 | | | | 0.79 | % |
| Time certificates of deposit | | | | | 1,463.9 | | | | | | 2,785 | | | | 0.75 | % | | | | | 1,408.3 | | | | | | 4,146 | | | | 1.17 | % |
| Total interest-bearing deposits | | | | | 4,114.1 | | | | | | 5,549 | | | | 0.54 | % | | | | | 3,971.6 | | | | | | 8,652 | | | | 0.86 | % |
| Borrowings | | | | | 266.8 | | | | | | 2,126 | | | | 3.16 | % | | | | | 160.0 | | | | | | 2,097 | | | | 5.20 | % |
| Junior subordinated and subordinated debt | | 36.4 | | | | | | 472 | | | | 5.14 | % | | | | | 36.4 | | | | | | 714 | | | | 7.78 | % |
| Total interest-bearing liabilities | | | | | 4,417.3 | | | | | | 8,147 | | | | 0.73 | % | | | | | 4,168.0 | | | | | | 11,463 | | | | 1.09 | % |
| Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | | | 1,575.0 | | | | | | | | | | | | | | 1,434.4 | | | | | | | | | |
| Other liabilities | | | | | 27.9 | | | | | | | | | | | | | | 31.4 | | | | | | | | | |
| Stockholders’ equity | | | | | 648.8 | | | | | | | | | | | | | | 626.1 | | | | | | | | | |
| Total liabilities and stockholders' equity | $ | 6,669.0 | | | | | | | | | | | | | $ | 6,259.9 | | | | | | | | | |
| Net interest income and margin | | | | | | | | $ | 68,699 | | | | 4.51 | % | | | | | | | | $ | 60,911 | | | | 4.26 | % |
| Net interest spread | | | | | | | | | | | | 4.30 | % | | | | | | | | | | | | 3.97 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $1,425 and $464 for the fourth quarter ended 2011 and 2010, respectively. |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Analysis of Average Balances, Yields and Rates |
| Unaudited |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Twelve Months Ended December 31, |
| | | | 2011 | | | | 2010 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Average
Balance | | | | Interest | | | | Average
Yield/Cost | | | | Average
Balance | | | | Interest | | | | Average
Yield/Cost |
| | | | ($ in millions) | | | | ($ in thousands) | | | | | | | | ($ in millions) | | | | ($ in thousands) | | | | |
| Interest earning Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Investment securities (1) | | | | $ | 1,307.1 | | | | | $ | 34,419 | | | | 2.86 | % | | | | $ | 915.2 | | | | | $ | 24,753 | | | | 2.83 | % |
| Federal funds sold & other | | | | | 0.9 | | | | | | 1 | | | | 0.00 | % | | | | | 17.3 | | | | | | 141 | | | | 0.82 | % |
| Loans (1) | | | | | 4,373.5 | | | | | | 261,443 | | | | 5.98 | % | | | | | 4,105.0 | | | | | | 255,626 | | | | 6.23 | % |
| Short term investments | | | | | 247.0 | | | | | | 629 | | | | 0.25 | % | | | | | 448.8 | | | | | | 1,130 | | | | 0.25 | % |
| Investment in restricted stock | | | | | 35.6 | | | | | | 99 | | | | 0.28 | % | | | | | 40.2 | | | | | | 163 | | | | 0.41 | % |
| Total interest earnings assets | | | | | 5,964.1 | | | | | | 296,591 | | | | 5.02 | % | | | | | 5,526.5 | | | | | | 281,813 | | | | 5.12 | % |
| Non-interest earning assets | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | | | | 119.5 | | | | | | | | | | | | | | 116.6 | | | | | | | | | |
| Allowance for credit losses | | | | | (105.9 | ) | | | | | | | | | | | | | (114.1 | ) | | | | | | | | |
| Bank owned life insurance | | | | | 131.6 | | | | | | | | | | | | | | 99.4 | | | | | | | | | |
| Other assets | | | | | 377.1 | | | | | | | | | | | | | | 402.2 | | | | | | | | | |
| Total assets | | | | $ | 6,486.4 | | | | | | | | | | | | | $ | 6,030.6 | | | | | | | | | |
| Interest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest bearing transaction accounts | | | | $ | 478.3 | | | | | $ | 1,759 | | | | 0.37 | % | | | | $ | 581.1 | | | | | $ | 2,898 | | | | 0.50 | % |
| Savings and money market | | | | | 2,105.3 | | | | | | 12,858 | | | | 0.61 | % | | | | | 1,861.7 | | | | | | 16,724 | | | | 0.90 | % |
| Time certificates of deposits | | | | | 1,460.7 | | | | | | 13,360 | | | | 0.91 | % | | | | | 1,437.2 | | | | | | 21,707 | | | | 1.51 | % |
| Total interest-bearing deposits | | | | | 4,044.3 | | | | | | 27,977 | | | | 0.69 | % | | | | | 3,880.0 | | | | | | 41,329 | | | | 1.07 | % |
| Borrowings | | | | | 234.8 | | | | | | 8,618 | | | | 3.67 | % | | | | | 158.4 | | | | | | 4,283 | | | | 2.70 | % |
| Junior subordinated and subordinated debt | | | | | 41.3 | | | | | | 2,328 | | | | 5.64 | % | | | | | 62.3 | | | | | | 3,648 | | | | 5.86 | % |
| Total interest-bearing liabilities | | | | $ | 4,320.4 | | | | | | 38,923 | | | | 0.90 | % | | | | $ | 4,100.7 | | | | | | 49,260 | | | | 1.20 | % |
| Noninterest-bearing liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
| Noninterest-bearing demand deposits | | | | | 1,509.4 | | | | | | | | | | | | | | 1,296.6 | | | | | | | | | |
| Other liabilities | | | | | 25.3 | | | | | | | | | | | | | | 32.1 | | | | | | | | | |
| Stockholders’ equity | | | | | 631.3 | | | | | | | | | | | | | | 601.2 | | | | | | | | | |
| Total liabilities and stockholders' equity | | | | $ | 6,486.4 | | | | | | | | | | | | | $ | 6,030.6 | | | | | | | | | |
| Net interest income and margin | | | | | | | | $ | 257,668 | | | | 4.37 | % | | | | | | | | $ | 232,553 | | | | 4.23 | % |
| Net interest spread | | | | | | | | | | | | 4.12 | % | | | | | | | | | | | | 3.92 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $3,014 and $1,164 for the twelve months December 31, 2011 and 2010, respectively. |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Operating Segment Results |
Unaudited |
| |
| | | | | | | | | | | | | | | | | | | | Inter- | | | | |
| | | | | | | | | | | | | | | | | | | | segment | | | | Consoli- |
| | | | Bank | | | | Western | | | | Torrey | | | | | | | | elimi- | | | | dated |
| | | | of Nevada | | | | Alliance Bank | | | | Pines Bank* | | | | Other | | | | nations | | | | Company |
| At December 31, 2011 | | | | (dollars in millions) |
| Assets | | | | $ | 2,877.6 | | | | | $ | 2,234.7 | | | | | $ | 1,728.4 | | | | | $ | 762.3 | | | | | $ | (758.5 | ) | | | | $ | 6,844.5 | |
| Gross loans and deferred fees, net | | | | | 1,859.1 | | | | | | 1,644.9 | | | | | | 1,318.9 | | | | | | - | | | | | | (42.8 | ) | | | | | 4,780.1 | |
| Less: Allowance for credit losses | | | | | (61.0 | ) | | | | | (21.7 | ) | | | | | (16.5 | ) | | | | | - | | | | | | - | | | | | | (99.2 | ) |
| Net loans | | | | | 1,798.1 | | | | | | 1,623.2 | | | | | | 1,302.4 | | | | | | - | | | | | | (42.8 | ) | | | | | 4,680.9 | |
| Goodwill | | | | | 23.2 | | | | | | - | | | | | | - | | | | | | 2.7 | | | | | | - | | | | | | 25.9 | |
| Deposits | | | | | 2,377.3 | | | | | | 1,877.5 | | | | | | 1,416.8 | | | | | | - | | | | | | (13.1 | ) | | | | | 5,658.5 | |
| Stockholders' equity | | | | | 320.8 | | | | | | 192.7 | | | | | | 152.8 | | | | | | 644.0 | | | | | | (673.6 | ) | | | | | 636.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| No. of branches | | | | | 11 | | | | | | 16 | | | | | | 12 | | | | | | - | | | | | | - | | | | | | 39 | |
| No. of FTE | | | | | 405 | | | | | | 222 | | | | | | 214 | | | | | | 101 | | | | | | - | | | | | | 942 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2011: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (in thousands) |
| Net interest income | | | | $ | 27,734 | | | | | $ | 22,499 | | | | | $ | 20,554 | | | | | $ | (2,088 | ) | | | | $ | - | | | | | $ | 68,699 | |
| Provision for credit losses | | | | | 9,000 | | | | | | 3,470 | | | | | | 606 | | | | | | - | | | | | | - | | | | | | 13,076 | |
Net interest income (loss) after provision for credit losses | | | | | 18,734 | | | | | | 19,029 | | | | | | 19,948 | | | | | | (2,088 | ) | | | | | - | | | | | | 55,623 | |
| Non-interest income | | | | | 3,450 | | | | | | 1,491 | | | | | | 1,028 | | | | | | 1,248 | | | | | | (2,269 | ) | | | | | 4,948 | |
| Non-interest expense | | | | | (21,159 | ) | | | | | (12,070 | ) | | | | | (10,970 | ) | | | | | (9,033 | ) | | | | | 2,269 | | | | | | (50,963 | ) |
Income (loss) from continuing operations before income taxes | | | | | 1,025 | | | | | | 8,450 | | | | | | 10,006 | | | | | | (9,873 | ) | | | | | - | | | | | | 9,608 | |
| Income tax expense (benefit) | | | | | (142 | ) | | | | | 2,807 | | | | | | 4,078 | | | | | | (4,732 | ) | | | | | - | | | | | | 2,011 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | | | | 1,167 | | | | | | 5,643 | | | | | | 5,928 | | | | | | (5,141 | ) | | | | | - | | | | | | 7,597 | |
| Loss from discontinued operations, net | | | | | - | | | | | | - | | | | | | - | | | | | | (496 | ) | | | | | - | | | | | | (496 | ) |
| Net income (loss) | | | | $ | 1,167 | | | | | $ | 5,643 | | | | | $ | 5,928 | | | | | $ | (5,637 | ) | | | | $ | - | | | | | $ | 7,101 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, 2011: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (in thousands) |
| Net interest income | | | | $ | 107,316 | | | | | $ | 82,949 | | | | | $ | 76,143 | | | | | $ | (8,740 | ) | | | | $ | - | | | | | $ | 257,668 | |
| Provision for credit losses | | | | | 29,623 | | | | | | 10,076 | | | | | | 6,489 | | | | | | - | | | | | | - | | | | | | 46,188 | |
Net interest income (loss) after provision for credit losses | | | | | 77,693 | | | | | | 72,873 | | | | | | 69,654 | | | | | | (8,740 | ) | | | | | - | | | | | | 211,480 | |
| Non-interest income | | | | | 17,221 | | | | | | 7,378 | | | | | | 5,085 | | | | | | 12,781 | | | | | | (8,008 | ) | | | | | 34,457 | |
| Non-interest expense | | | | | (85,813 | ) | | | | | (49,517 | ) | | | | | (41,559 | ) | | | | | (26,717 | ) | | | | | 8,008 | | | | | | (195,598 | ) |
Income (loss) from continuing operations before income taxes | | | | | 9,101 | | | | | | 30,734 | | | | | | 33,180 | | | | | | (22,676 | ) | | | | | - | | | | | | 50,339 | |
| Income tax expense (benefit) | | | | | 1,626 | | | | | | 10,890 | | | | | | 13,676 | | | | | | (9,343 | ) | | | | | - | | | | | | 16,849 | |
Income(loss) from continuing operations | | | | | 7,475 | | | | | | 19,844 | | | | | | 19,504 | | | | | | (13,333 | ) | | | | | - | | | | | | 33,490 | |
| Loss from discontinued operations, net | | | | | - | | | | | | - | | | | | | - | | | | | | (1,996 | ) | | | | | - | | | | | | (1,996 | ) |
| Net income (loss) | | | | $ | 7,475 | | | | | $ | 19,844 | | | | | $ | 19,504 | | | | | $ | (15,329 | ) | | | | $ | - | | | | | $ | 31,494 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * Excludes discontinued operations |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Operating Segment Results |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Inter- | | | | |
| | | | | | | | | | | | | | | | | | | | segment | | | | Consoli- |
| | | | Bank | | | | Western | | | | Torrey | | | | | | | | elimi- | | | | dated |
| | | | of Nevada | | | | Alliance Bank | | | | Pines Bank* | | | | Other | | | | nations | | | | Company |
| At December 31, 2010: | | | | (dollars in millions) |
| Assets | | | | $ | 2,771.4 | | | | | $ | 1,927.5 | | | | | $ | 1,452.2 | | | | | $ | 731.0 | | | | | $ | (714.2 | ) | | | | $ | 6,167.9 | |
| Gross loans and deferred fees, net | | | | | 1,914.1 | | | | | | 1,305.4 | | | | | | 1,063.8 | | | | | | - | | | | | | (42.8 | ) | | | | | 4,240.5 | |
| Less: Allowance for credit losses | | | | | (73.5 | ) | | | | | (20.4 | ) | | | | | (16.8 | ) | | | | | - | | | | | | - | | | | | | (110.7 | ) |
| Net loans | | | | | 1,840.6 | | | | | | 1,285.0 | | | | | | 1,047.0 | | | | | | - | | | | | | (42.8 | ) | | | | | 4,129.8 | |
| Goodwill | | | | | 23.2 | | | | | | - | | | | | | - | | | | | | 2.7 | | | | | | - | | | | | | 25.9 | |
| Deposits | | | | | 2,388.3 | | | | | | 1,671.1 | | | | | | 1,281.6 | | | | | | - | | | | | | (2.6 | ) | | | | | 5,338.4 | |
| Stockholders' equity | | | | | 310.6 | | | | | | 163.3 | | | | | | 135.5 | | | | | | 609.6 | | | | | | (616.8 | ) | | | | | 602.2 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| No. of branches | | | | | 12 | | | | | | 16 | | | | | | 11 | | | | | | - | | | | | | - | | | | | | 39 | |
| No. of FTE | | | | | 421 | | | | | | 225 | | | | | | 203 | | | | | | 59 | | | | | | - | | | | | | 908 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended December 31, 2010: | | | | |
| | | | (in thousands) |
| Net interest income | | | | $ | 26,857 | | | | | $ | 18,997 | | | | | $ | 17,311 | | | | | $ | (2,254 | ) | | | | $ | - | | | | | $ | 60,911 | |
| Provision for credit losses | | | | | 15,935 | | | | | | - | | | | | | 2,449 | | | | | | - | | | | | | - | | | | | | 18,384 | |
Net interest income after provision for credit losses | | | | | 10,922 | | | | | | 18,997 | | | | | | 14,862 | | | | | | (2,254 | ) | | | | | - | | | | | | 42,527 | |
| Non-interest income | | | | | 3,506 | | | | | | 1,760 | | | | | | 1,040 | | | | | | (4,853 | ) | | | | | (2,173 | ) | | | | | (720 | ) |
| Noninterest expense | | | | | (23,414 | ) | | | | | (14,840 | ) | | | | | (10,220 | ) | | | | | (10,244 | ) | | | | | 2,173 | | | | | | (56,545 | ) |
Income (loss) from continuing operations before income taxes | | | | | (8,986 | ) | | | | | 5,917 | | | | | | 5,682 | | | | | | (17,351 | ) | | | | | - | | | | | | (14,738 | ) |
| Income tax expense (benefit) | | | | | (3,206 | ) | | | | | 2,361 | | | | | | 2,449 | | | | | | (6,184 | ) | | | | | - | | | | | | (4,580 | ) |
Income(loss) from continuing operations | | | | | (5,780 | ) | | | | | 3,556 | | | | | | 3,233 | | | | | | (11,167 | ) | | | | | - | | | | | | (10,158 | ) |
| Loss from discontinued operations, net | | | | | - | | | | | | - | | | | | | - | | | | | | (657 | ) | | | | | - | | | | | | (657 | ) |
| Net income (loss) | | | | $ | (5,780 | ) | | | | $ | 3,556 | | | | | $ | 3,233 | | | | | $ | (11,824 | ) | | | | $ | - | | | | | $ | (10,815 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, 2010: | | | | |
| | | | (in thousands) |
| Net interest income | | | | $ | 104,536 | | | | | $ | 69,223 | | | | | $ | 62,714 | | | | | $ | (3,920 | ) | | | | $ | - | | | | | $ | 232,553 | |
| Provision for credit losses | | | | | 76,669 | | | | | | 6,374 | | | | | | 10,168 | | | | | | - | | | | | | - | | | | | | 93,211 | |
Net interest income after provision for credit losses | | | | | 27,867 | | | | | | 62,849 | | | | | | 52,546 | | | | | | (3,920 | ) | | | | | - | | | | | | 139,342 | |
| Non-interest income | | | | | 21,053 | | | | | | 9,369 | | | | | | 4,489 | | | | | | 13,598 | | | | | | (1,673 | ) | | | | | 46,836 | |
| Noninterest expense | | | | | (90,336 | ) | | | | | (51,270 | ) | | | | | (38,893 | ) | | | | | (17,932 | ) | | | | | 1,673 | | | | | | (196,758 | ) |
Income (loss) from continuing operations before income taxes | | | | | (41,416 | ) | | | | | 20,948 | | | | | | 18,142 | | | | | | (8,254 | ) | | | | | - | | | | | | (10,580 | ) |
| Income tax expense (benefit) | | | | | (15,010 | ) | | | | | 8,147 | | | | | | 7,825 | | | | | | (7,372 | ) | | | | | - | | | | | | (6,410 | ) |
Income(loss) from continuing operations | | | | | (26,406 | ) | | | | | 12,801 | | | | | | 10,317 | | | | | | (882 | ) | | | | | - | | | | | | (4,170 | ) |
| Loss from discontinued operations, net | | | | | - | | | | | | - | | | | | | - | | | | | | (3,025 | ) | | | | | - | | | | | | (3,025 | ) |
| Net income (loss) | | | | $ | (26,406 | ) | | | | $ | 12,801 | | | | | $ | 10,317 | | | | | $ | (3,907 | ) | | | | $ | - | | | | | $ | (7,195 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| * Excludes discontinued operations | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Reconciliation of Non-GAAP Financial Measures (Unaudited) |
| | | | | | | | | | | | | | | | |
| | | | December 31, | | | | September 30, | | | | June 30, | | | | March 31, | | | | December 31, |
| | | | 2011 | | | | 2011 | | | | 2011 | | | | 2011 | | | | 2010 |
| | | | (dollars in thousands) |
| | | | | | | | | | | | | | | | |
| Total stockholder's equity | | | | $ | 636,683 | | | | | $ | 632,255 | | | | | $ | 615,653 | | | | | $ | 601,576 | | | | | $ | 602,174 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Goodwill and intangible assets | | | | | 35,732 | | | | | | 36,622 | | | | | | 37,511 | | | | | | 38,401 | | | | | | 39,291 | |
| Total tangible stockholders' equity | | | | | 600,951 | | | | | | 595,633 | | | | | | 578,142 | | | | | | 563,175 | | | | | | 562,883 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Preferred stock | | | | | 141,000 | | | | | | 141,000 | | | | | | 132,333 | | | | | | 131,580 | | | | | | 130,827 | |
| Total tangible common equity | | | | | 459,951 | | | | | | 454,633 | | | | | | 445,809 | | | | | | 431,595 | | | | | | 432,056 | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Deferred tax | | | | | 3,522 | | | | | | 3,835 | | | | | | 4,148 | | | | | | 4,461 | | | | | | 4,774 | |
| Total tangible common equity, net of tax | | | | $ | 463,473 | | | | | $ | 458,468 | | | | | $ | 449,957 | | | | | $ | 436,056 | | | | | $ | 436,830 | |
| Total assets | | | | $ | 6,844,541 | | | | | $ | 6,545,890 | | | | | $ | 6,508,089 | | | | | $ | 6,404,838 | | | | | $ | 6,193,883 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Goodwill and intangible assets | | | | | 35,732 | | | | | | 36,622 | | | | | | 37,511 | | | | | | 38,401 | | | | | | 39,291 | |
| Tangible assets | | | | | 6,808,809 | | | | | | 6,509,268 | | | | | | 6,470,578 | | | | | | 6,366,437 | | | | | | 6,154,592 | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Deferred tax | | | | | 3,522 | | | | | | 3,835 | | | | | | 4,148 | | | | | | 4,461 | | | | | | 4,774 | |
| Total tangible assets, net of tax | | | | $ | 6,812,331 | | | | | $ | 6,513,103 | | | | | $ | 6,474,726 | | | | | $ | 6,370,898 | | | | | $ | 6,159,366 | |
| Tangible equity ratio (1) | | | | | 8.8 | % | | | | | 9.1 | % | | | | | 8.9 | % | | | | | 8.8 | % | | | | | 9.1 | % |
| Tangible common equity ratio (2) | | | | | 6.8 | % | | | | | 7.0 | % | | | | | 6.9 | % | | | | | 6.8 | % | | | | | 7.0 | % |
| Common shares outstanding | | | | | 82,362 | | | | | | 82,263 | | | | | | 82,139 | | | | | | 82,237 | | | | | | 81,669 | |
| Tangible book value per share, net of tax (3) | | | | $ | 5.63 | | | | | $ | 5.57 | | | | | $ | 5.48 | | | | | $ | 5.30 | | | | | $ | 5.35 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended |
| | | | December 31, | | | | September 30, | | | | June 30, | | | | March 31, | | | | December 31, |
| | | | 2011 | | | | 2011 | | | | 2011 | | | | 2011 | | | | 2010 |
| | | | (in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| Total non-interest income | | | | $ | 4,948 | | | | | $ | 13,082 | | | | | $ | 9,597 | | | | | $ | 6,830 | | | | | $ | (720 | ) |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Mark-to-market (losses) gains, net | | | | | (626 | ) | | | | | 6,420 | | | | | | 336 | | | | | | (509 | ) | | | | | (6,710 | ) |
| Securities impairment charges | | | | | - | | | | | | - | | | | | | (226 | ) | | | | | - | | | | | | (12 | ) |
| Gains on sales of investment securities, net | | | | | (28 | ) | | | | | 781 | | | | | | 2,666 | | | | | | 1,379 | | | | | | - | |
| Total operating non-interest income | | | | | 5,602 | | | | | | 5,881 | | | | | | 6,821 | | | | | | 5,960 | | | | | | 6,002 | |
| Add: net interest income | | | | | 68,699 | | | | | | 64,585 | | | | | | 63,286 | | | | | | 61,098 | | | | | | 60,911 | |
| Net revenue (4) | | | | $ | 74,301 | | | | | $ | 70,466 | | | | | $ | 70,107 | | | | | $ | 67,058 | | | | | $ | 66,913 | |
| | | | | | | | | | | | | | | | | | | | |
| Total non-interest expense | | | | $ | 50,963 | | | | | $ | 45,481 | | | | | $ | 51,008 | | | | | $ | 48,146 | | | | | $ | 56,545 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
Net loss (gain) on sales/valuations of repossessed assets | | | | | 7,702 | | | | | | 2,128 | | | | | | 8,633 | | | | | | 6,129 | | | | | | 12,991 | |
| Merger/restructure | | | | | 482 | | | | | | 974 | | | | | | (109 | ) | | | | | 217 | | | | | | 1,651 | |
| Total operating non-interest expense (4) | | | | $ | 42,779 | | | | | $ | 42,379 | | | | | $ | 42,484 | | | | | $ | 41,800 | | | | | $ | 41,903 | |
| | | | | | | | | | | | | | | | | | | | |
| Net revenue | | | | $ | 74,301 | | | | | $ | 70,466 | | | | | $ | 70,107 | | | | | $ | 67,058 | | | | | $ | 66,913 | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Operating non-interest expense | | | | | 42,779 | | | | | | 42,379 | | | | | | 42,484 | | | | | | 41,800 | | | | | | 41,903 | |
| Pre-tax, pre-provision operating earnings (5) | | | | $ | 31,522 | | | | | $ | 28,087 | | | | | $ | 27,623 | | | | | $ | 25,258 | | | | | $ | 25,010 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Western Alliance Bancorporation and Subsidiaries |
| Reconciliation of Non-GAAP Financial Measures (Unaudited) |
| | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended |
| | | | December 31, | | | | September 30, | | | | June 30, | | | | March 31, | | | | December 31, |
| | | | 2011 | | | | 2011 | | | | 2011 | | | | 2011 | | | | 2010 |
| | | | (in thousands) |
| | | | | | | | | | | | | | | | | | | | |
| Total operating non-interest expense | | | | $ | 42,779 | | | | | $ | 42,379 | | | | | $ | 42,484 | | | | | $ | 41,800 | | | | | $ | 41,903 | |
| Divided by: | | | | | | | | | | | | | | | | | | | | |
| Total net interest income | | | | $ | 68,699 | | | | | $ | 64,585 | | | | | $ | 63,286 | | | | | $ | 61,098 | | | | | $ | 60,911 | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Tax equivalent interest adjustment | | | | | 1,425 | | | | | | 634 | | | | | | 473 | | | | | | 481 | | | | | | 464 | |
| Operating non-interest income | | | | | 5,602 | | | | | | 5,881 | | | | | | 6,821 | | | | | | 5,960 | | | | | | 6,002 | |
| | | | $ | 75,726 | | | | | $ | 71,100 | | | | | $ | 70,580 | | | | | $ | 67,539 | | | | | $ | 67,377 | |
| Efficiency ratio - tax equivalent basis (6) | | | | | 56.5 | % | | | | | 59.6 | % | | | | | 60.2 | % | | | | | 61.9 | % | | | | | 62.2 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | Three Months Ended | | | | | | | | | | | | |
| | | | December 31, | | | | December 31, | | | | | | | | | | | | |
| | | | 2011 | | | | 2010 | | | | | | | | | | | | |
| | | | (in thousands) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| Stockholder's equity | | | | $ | 636,683 | | | | | $ | 602,174 | | | | | | | | | | | | | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Accumulated other comprehensive (loss) income | | | | | (4,593 | ) | | | | | (9,422 | ) | | | | | | | | | | | | |
| Non-qualifying goodwill and intangibles | | | | | 32,914 | | | | | | 35,269 | | | | | | | | | | | | | |
| Other non-qualifying assets | | | | | 3 | | | | | | 25,730 | | | | | | | | | | | | | |
| Disallowed unrealized losses on equity securities | | | | | 2,572 | | | | | | - | | | | | | | | | | | | | |
| Add: | | | | | | | | | | | | | | | | | | | | |
| Qualifying trust preferred securities | | | | | 45,317 | | | | | | 41,037 | | | | | | | | | | | | | |
| Tier 1 capital (regulatory) (7) (10) | | | | | 651,104 | | | | | | 591,634 | | | | | | | | | | | | | |
| Less: | | | | | | | | | | | | | | | | | | | | |
| Qualifying non-controlling interests | | | | | 61 | | | | | | 214 | | | | | | | | | | | | | |
| Qualifying trust preferred securities | | | | | 45,317 | | | | | | 41,037 | | | | | | | | | | | | | |
| Preferred stock | | | | | 141,000 | | | | | | 130,827 | | | | | | | | | | | | | |
| Estimated Tier 1 common equity (8) (10) | | | | $ | 464,726 | | | | | $ | 419,556 | | | | | | | | | | | | | |
| Divided by: | | | | | | | | | | | | | | | | | | | | |
| Estimated risk-weighted assets (regulatory (8) (10) | | | | $ | 5,752,981 | | | | | $ | 4,940,918 | | | | | | | | | | | | | |
| Tier 1 common equity ratio (8) (10) | | | | | 8.1 | % | | | | | 8.5 | % | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | December 31, | | | | December 31, | | | | | | | | | | | | |
| | | | 2011 | | | | 2010 | | | | | | | | | | | | |
| | | | (in thousands) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Classified assets | | | | $ | 292,628 | | | | | $ | 366,915 | | | | | | | | | | | | | |
| Divide: | | | | | | | | | | | | | | | | | | | | |
| Tier 1 capital (regulatory) (7) (10) | | | | | 651,104 | | | | | | 591,634 | | | | | | | | | | | | | |
| Plus: Allowance for credit losses | | | | | 99,170 | | | | | | 110,699 | | | | | | | | | | | | | |
| Total Tier 1 capital plus allowance for credit losses | | | | $ | 750,274 | | | | | $ | 702,333 | | | | | | | | | | | | | |
| Classified assets to Tier 1 capital plus allowance (9) (10) | | | | | 39 | % | | | | | 52 | % | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| |
(1) We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength. |
(2) We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength. |
(3) We believe this non-GAAP ratio improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. |
| (4) We believe this non-GAAP measurement is better indicative of the cash generating capacity of the Company. |
(5) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company which is otherwise obscured by the asset quality issues. |
| (6) We believe this non-GAAP ratio provides understanding of the operating efficiency of the Company. |
(7) Under the guidelines of the Federal Reserve and the FDIC in effect at December 31, 2011, Tier 1 capital consisted of common stock, retained earnings, non-cumulative perpetual preferred stock, trust preferred securities up to a certain limit, and minority interests in certain subsidiaries, less most other intangible assets. |
(8) Tier 1 common equity is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a bank's balance sheet assets and credit equivalent amounts of off-balance sheet items, are assigned to one of four broad risk categories. The aggregated dollar amount in each category is then multiplied by the risk weighting assigned to that category. The resulting weighted values from each of the four categories are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator (risk-weighted assets) to determine the Tier 1 capital ratio. Adjustments are made to Tier 1 capital to arrive at Tier 1 common equity. Tier 1 common equity is also divided by the risk-weighted assets to determine the Tier 1 common equity ratio. We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength. |
| (9) We believe this non-GAAP ratio provides a critical regulatory metric in which to analyze asset quality. |
| (10) Preliminary until Call Reports are filed. | | |
CONTACT:
Western Alliance Bancorporation
Dale Gibbons, 602-952-5476
