Exhibit 99.1
Western Alliance Reports Net Income of $11.3 Million or $0.39 Per Share for the
Second Quarter 2006
LAS VEGAS--(BUSINESS WIRE)--July 18, 2006--Western Alliance Bancorporation
(NYSE:WAL) announced today its financial results for the second quarter 2006.
Second Quarter 2006 Highlights:
-- Net income of $11.3 million, up 34.1% from $8.4 million in the first
quarter 2006 and 72.6% in the second quarter 2005
-- Diluted earnings per share of $0.39, compared to $0.33 in the first
quarter 2006 and $0.32 in the second quarter 2005
-- Net revenue (sum of net interest income and non-interest income) of
$44.2 million, up 34.3% from $32.9 million in the first quarter 2006
and 61.8% from the second quarter 2005
-- Loans of $2.77 billion at June 30, 2006, up 17.8% or $419 million from
March 31, 2006, and 90.8% or $1.32 billion from one year ago,
including organic growth of $185 million and $678 million,
respectively
-- Deposits of $3.20 billion at June 30, 2006, up 8.1% or $241 million
from March 31, 2006, and 46.1% or $1.01 billion from one year ago,
including organic growth of $57 million and $403 million, respectively
-- Completed merger with Bank of Nevada on April 28, 2006
Acquisition Activity
On April 28, 2006, and March 31, 2006, we completed our mergers with Bank
of Nevada and Intermountain First Bancorporation (Nevada First Bank),
respectively. Total assets, loans and deposits of acquired banks at June 30,
2006, were $845 million, $642 million and $606 million, respectively. We added a
total of seven full service branches in Las Vegas, Henderson, Reno and Mesquite,
Nev., through these mergers.
Financial Performance
Western Alliance Bancorporation reported net income of $11.3 million for
the second quarter 2006, up 34.1 percent from $8.4 million for the first quarter
2006 and 72.6 percent from $6.6 million for the second quarter 2005. Diluted
earnings per share were $0.39, an increase of 18.2% from $0.33 for the first
quarter 2006 and 21.9 percent from $0.32 for the same period one year ago. Net
income and fully-diluted earnings per share are net of $0.3 million and $0.01,
respectively, of organizational costs related to our proposed expansion into
Northern California. Our fully-diluted shares outstanding were 29.0 million for
the second quarter of 2006, compared to 20.5 million for the same period last
year. A significant factor in the 41.6 percent increase in our fully-diluted
shares outstanding was the issuance of 4.2 million shares in our IPO which took
place on June 30, 2005.
Loans grew $419 million, including organic growth of $185 million, to $2.77
billion at June 30, 2006, from March 31, 2006, and $1.32 billion, including
organic growth of $678 million, from June 30, 2005. Deposits grew $241 million,
including organic growth of $57 million, to $3.20 billion from March 31, 2006,
and $1.01 billion, including organic growth of $403 million, from June 30, 2005.
"Despite the challenges facing the banking industry of a flat yield curve
and shrinking liquidity, we continued our exceptional balance sheet growth and
earnings performance in the second quarter," said Robert Sarver, chairman and
chief executive officer of Western Alliance. "Strong organic loan growth for the
quarter of $185 million again exceeded our expectations. Although our organic
deposit growth of $57 million was shy of our $100 million quarterly goal, our
lower-cost funding was augmented by a $48 million increase in repurchase
agreements from customers. Our earnings per share were up over 20 percent in the
second quarter compared to last year, even though the 4.2 million shares from
our initial public offering were not in last year's share count."
Sarver continued, "In part benefited by our accretive acquisitions, our
interest margin increased 21 basis points and our efficiency ratio improved by
nearly four percentage points compared to last quarter. Importantly, our asset
quality remains exceptional with virtually zero non-performing assets and
delinquent loans, and net recoveries year-to-date. Our expansion plans remain
robust with entry into the East Bay and Northern Arizona in the coming months
and continued rollout of new offices in our existing markets. Our Service Center
in Las Vegas is expected to open by the end of this quarter, enabling us to
increase our product array to our client base."
Income Statement
Net interest income increased 62.7 percent to $39.7 million in the second
quarter 2006 from $24.4 million in the second quarter 2005. The interest margin
in the second quarter 2006 was 4.74 percent, compared to 4.53 percent in the
first quarter 2006. The margin was 4.39 percent in the second quarter 2005.
The provision for loan losses was $1.9 million for the second quarter 2006
compared to $0.5 million for the first quarter 2006 and $1.2 million for the
second quarter 2005. Non-accrual loans were $0.02 million or less than 0.01
percent of total loans at June 30, 2006, compared to 0.03 percent of total loans
at June 30, 2005. Net loan recoveries were $0.08 million for the second quarter
2006, compared to net loans charged off of $0.2 million for the same period in
2005.
Non-interest income was $4.5 million for the second quarter 2006, up 53.6
percent from $2.9 million for the same period in 2005. For the first quarter
2006, non-interest income was $3.5 million.
Net revenue was $44.2 million for the second quarter 2006, up 61.8 percent
from $27.3 million for the second quarter 2005. For the first quarter 2006, net
revenue was $32.9 million.
Non-interest expense was $24.6 million for the second quarter 2006, up 53.8
percent from $16.0 million for the same period in 2005. For the first quarter
2006, non-interest expense was $19.5 million. Second quarter 2006 non-interest
expense includes $0.4 million of organizational costs related to our proposed
expansion into Northern California. We had 717 full-time equivalent employees on
June 30, 2006, compared to 660 on March 31, 2006, and 497 on June 30, 2005. We
had 26 full-service banking offices on June 30, 2006, compared to 21 at March
31, 2006, and 13 on June 30, 2005.
Net income increased 72.6 percent to $11.3 million for the second quarter
2006 compared to $6.6 million for the same period last year. Diluted earnings
per share were $0.39 compared with $0.32 for the second quarter 2005. Average
diluted shares increased 41.6 percent to 28.9 million for the second quarter
2006 compared to 20.5 million for the second quarter 2005.
For the first half of 2006 compared to 2005, net income increased 66.3
percent from $11.9 million to $19.8 million and fully-diluted earnings per share
increased 23.7 percent from $0.59 to $0.73.
Balance Sheet
Loans totaled $2.77 billion at June 30, 2006, an increase of 17.8 percent
from March 31, 2006, and 90.8 percent from $1.45 billion at June 30, 2005. At
June 30, 2006, total loans acquired in the Intermountain and Bank of Nevada
mergers were $642 million. Organic loan growth for the quarter ended June 30,
2006, totaled $185 million. At June 30, 2006, the allowance for loan losses was
1.16 percent of gross loans, compared to 1.18 percent at March 31, 2006, and
1.25 percent at June 30, 2005.
Deposits totaled $3.20 billion at June 30, 2006, an increase of 8.1 percent
or $241 million from March 31, 2006 and 46.1 percent from $2.19 billion at June
30, 2005. At June 30, 2006, total deposits acquired in the Intermountain and
Bank of Nevada mergers were $606 million. Organic deposit growth for the quarter
ended June 30, 2006 totaled $57 million. Non-interest bearing deposits comprised
37.2 percent of total deposits at June 30, 2006. At June 30, 2006, 30.8 percent
of non-interest bearing deposits were from title companies, compared to 31.9
percent at March 31, 2006. At June 30, 2006 the company's loan to deposit ratio
was 86.7 percent compared with 66.4 percent one year earlier.
Wholesale borrowings totaled $88.1 million at June 30, 2006, a decrease of
22.5 percent from $114 million at June 30, 2005. Customer repurchase agreements
increased $48 million from March 31, 2006, to $139 million at June 30, 2006.
Customer repurchase agreements were $55 million at June 30, 2005. Junior
subordinated and subordinated debt increased $50 million from one year ago, due
to a combination of debt issuances and debt acquired through mergers. Fed funds
sold totaled $87 million at June 30, 2006, down 59.1 percent from $212 million
one year earlier.
Stockholders' equity increased $145 million from June 30, 2005, to $368
million at June 30, 2006, due primarily to the issuance of 3.4 million shares in
connection with the Intermountain acquisition on March 31, 2006. At June 30,
2006, tangible common equity was 5.9 percent of tangible assets and total
risk-based capital was 11.0 percent of risk-weighted assets.
Total assets increased 48.4 percent to $3.90 billion at June 30, 2006, from
$2.62 billion at June 30, 2005. Of this growth, $424 million was organic, while
$845 million represents the June 30, 2006, assets acquired through the Bank of
Nevada and Intermountain mergers on April 28, 2006, and March 31, 2006,
respectively.
Operating Unit Highlights
Bank of Nevada (formerly BankWest of Nevada) reported loan growth of $349
million during the second quarter 2006 and $978 million during the last 12
months to $1.91 billion at June 30, 2006. Deposits increased $200 million and
$851 million to $2.32 billion during the same periods, respectively. Net of
acquisitions, loans increased $105 million and $325 million and deposits
increased $3 million and $233 million for the three and twelve month periods
ended June 30, 2006, respectively. Net income at Bank of Nevada was $10.6
million during the second quarter 2006 compared with $7.0 million during the
first quarter 2006 and $6.0 million for the same period one year ago.
Alliance Bank of Arizona reported loan growth of $47 million during the
second quarter 2006 and $187 million during the last 12 months to $494 million.
Deposits decreased $16 million and increased $67 million to $494 million during
the same periods, respectively. Net income at Alliance Bank of Arizona was $1.2
million during the second quarter 2006 compared with $0.8 million during the
first quarter 2006 and $0.7 for the same period one year ago.
Torrey Pines Bank reported loan growth of $33 million during the second
quarter 2006 and $166 million during the last 12 months to $381 million.
Deposits increased $70 million and $103 million to $398 million during the same
periods, respectively. Net income at Torrey Pines Bank was $1.2 million during
the second quarter 2006 compared with $1.1 million during the first quarter 2006
and $0.4 million during the second quarter 2005.
Assets under management at Miller/Russell and Associates were $1.29 billion
at June 30, 2006, up 41.4 percent from $911 million at June 30, 2005. At Premier
Trust, assets under management increased 55.8 percent from $104 million to $162
million from June 30, 2005, to June 30, 2006. Total trust assets increased 43.6
percent from $236 million to $339 million for the same periods, respectively.
Attached to this press release is summarized financial information for the
quarter ended June 30, 2006.
Conference Call
Western Alliance Bancorporation will host a conference call to discuss its
second quarter 2006 financial results at noon ET on Wednesday, July 19, 2006.
Participants may access the call by dialing 800-817-4887, using the pass code
9416364. The call will be recorded and made available for replay after 5 p.m. ET
July 19 until 11 p.m. ET July 26 by dialing 888-203-1112 using the pass code
9416364.
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 initial public offering registration statement as filed
with the Securities and Exchange Commission; changes in general economic
conditions, either nationally or locally in the areas in which we conduct or
will conduct our business; inflation, interest rate, market and monetary
fluctuations; increases in competitive pressures among financial institutions
and businesses offering similar products and services; higher defaults on our
loan portfolio than we expect; changes in management's estimate of the adequacy
of the allowance for loan losses; legislative or regulatory changes or changes
in accounting principles, policies or guidelines; management's estimates and
projections of interest rates and interest rate policy; the execution of our
business plan; and other factors affecting the financial services industry
generally or the banking industry in particular.
We do not intend and disclaim any duty or obligation to update or revise
any industry information or forward-looking statements set forth in this press
release to reflect new information, future events or otherwise.
About Western Alliance Bancorporation
Western Alliance Bancorporation is the parent company of Bank of Nevada,
Alliance Bank of Arizona, Torrey Pines Bank, Miller/Russell & Associates, and
Premier Trust. These dynamic companies provide a broad array of banking,
leasing, trust, investment, and mortgage services to clients in Nevada, Arizona
and California. 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 Web site, westernalliancebancorp.com.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
At or for the three months
ended Jun. 30,
2006 2005 Change %
- ----------------------------------------------------------------------
Selected Balance Sheet Data:
($ in millions)
Total assets $3,889.9 $2,621.3 48.4 %
Gross loans, including net
deferred fees 2,773.5 1,453.3 90.8
Securities 587.0 695.4 (15.6)
Federal funds sold 86.8 212.2 (59.1)
Deposits 3,198.4 2,189.5 46.1
Borrowings 88.1 113.7 (22.5)
Junior subordinated and subordinated
debt 81.2 30.9 162.8
Stockholders' equity 367.5 222.5 65.2
Selected Income Statement Data:
($ in thousands)
Interest income $59,382 $31,812 86.7 %
Interest expense 19,701 7,430 165.2
----------- -----------
Net interest income 39,681 24,382 62.7
Provision for loan losses 1,929 1,187 62.5
----------- -----------
Net interest income after provision
for loan losses 37,752 23,195 62.8
Non-interest income 4,482 2,918 53.6
Non-interest expense 24,553 15,967 53.8
----------- -----------
Income before income taxes 17,681 10,146 74.3
Income tax expense 6,368 3,593 77.2
----------- -----------
Net Income $11,313 $6,553 72.6
=========== ===========
Common Share Data:
Net income per share:
Basic $0.42 $0.35 20.0
Diluted 0.39 0.32 21.9
Book value per share 13.82 9.99 38.3
Tangible book value per share 8.36 9.75 (14.3)
Average shares outstanding (in
thousands):
Basic 26,295 18,498 42.2
Diluted 28,983 20,467 41.6
Common shares outstanding 26,586 22,274 19.4
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)
Unaudited
At or for the three months
ended Jun. 30,
2006 2005 Change %
- ----------------------------------------------------------------------
Selected Performance Ratios:
Return on average assets (1) 1.21 % 1.10 % 10.0 %
Return on average stockholders'
equity (1) 12.50 17.71 (29.4)
Return on average tangible
stockholders' equity (1) 19.38 18.37 5.5
Net interest margin (1) 4.74 4.39 8.0
Net interest spread 3.64 3.59 1.4
Efficiency ratio 55.60 58.49 (4.9)
Loan to deposit ratio 86.72 66.38 30.6
Capital Ratios:
Tangible Common Equity 5.9 % 8.3 % (28.9)%
Leverage ratio 8.3 10.6 (21.7)
Tier 1 Risk Based Capital 9.3 13.5 (31.1)
Total Risk Based Capital 11.0 14.5 (24.1)
Asset Quality Ratios:
Net charge-offs to average loans
outstanding (1) (0.01)% 0.05 % NA
Non-accrual loans to gross loans 0.00 0.03 NA
Non-accrual loans to total assets 0.00 0.02 NA
Loans past due 90 days and still
accruing to total loans 0.00 0.00 0.0
Allowance for loan losses to gross
loans 1.16 1.25 (7.2)
Allowance for loan losses to non- greater greater
accrual loans than 10 than 10
times times
===================================================
(1) Annualized for the three and six-month periods ended June 30, 2006
and 2005.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
For the six months
ended Jun. 30,
2006 2005 Change %
- ----------------------------------------------------------------------
Selected Balance Sheet Data:
($ in millions)
Total assets
Gross loans, including net
deferred fees
Securities
Federal funds sold
Deposits
Borrowings
Junior subordinated and subordinated
debt
Stockholders' equity
Selected Income Statement Data:
($ in thousands)
Interest income $101,578 $60,235 68.6 %
Interest expense 32,503 13,839 134.9
----------- -----------
Net interest income 69,075 46,396 48.9
Provision for loan losses 2,471 2,934 (15.8)
----------- -----------
Net interest income after provision
for loan losses 66,604 43,462 53.2
Non-interest income 7,979 5,502 45.0
Non-interest expense 44,073 30,540 44.3
----------- -----------
Income before income taxes 30,510 18,424 65.6
Income tax expense 10,759 6,550 64.3
----------- -----------
Net Income $19,751 $11,874 66.3
=========== ===========
Common Share Data:
Net income per share:
Basic $0.80 $0.65 23.1 %
Diluted 0.73 0.59 23.7
Book value per share
Tangible book value per share
Average shares outstanding (in
thousands):
Basic 24,745 18,396 34.5
Diluted 27,116 20,243 34.0
Common shares outstanding
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)
Unaudited
For the six months
ended Jun. 30,
2006 2005 Change %
- ----------------------------------------------------------------------
Selected Performance Ratios:
Return on average assets (1) 1.20 % 1.05 % 14.3 %
Return on average stockholders'
equity (1) 13.01 16.54 (21.3)
Return on average tangible
stockholders' equity (1) 16.67 17.16 (2.9)
Net interest margin (1) 4.65 4.38 6.2
Net interest spread 3.57 3.62 (1.4)
Efficiency ratio 57.20 58.85 (2.8)
Loan to deposit ratio
Capital Ratios:
Tangible Common Equity
Leverage ratio
Tier 1 Risk Based Capital
Total Risk Based Capital
Asset Quality Ratios:
Net charge-offs to average loans
outstanding (1) (0.01)% 0.01 % NA
Non-accrual loans to gross loans
Non-accrual loans to total assets
Loans past due 90 days and still
accruing to total loans
Allowance for loan losses to gross
loans
Allowance for loan losses to non-
accrual loans
==============================================
(1) Annualized for the three and six-month periods ended June 30, 2006
and 2005.
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Statements of Income
Unaudited Three Months Ended Six Months Ended
June 30, June 30,
(in thousands, except per share data)
2006 2005 2006 2005
- ----------------------------------------------------------------------
Interest income on:
Loans, including fees $52,004 $23,589 $86,758 $43,923
Securities 6,759 7,385 13,918 15,261
Federal funds sold and other 619 838 902 1,051
------------------------------------
Total interest income 59,382 31,812 101,578 60,235
------------------------------------
Interest expense on:
Deposits 15,417 5,838 25,341 10,357
Borrowings 3,284 1,084 5,595 2,508
Junior subordinated debt 1,000 508 1,567 974
------------------------------------
Total interest expense 19,701 7,430 32,503 13,839
------------------------------------
Net interest income 39,681 24,382 69,075 46,396
Provision for loan losses 1,929 1,187 2,471 2,934
Net interest income after ------------------------------------
provision for loan losses 37,752 23,195 66,604 43,462
------------------------------------
Other income:
Trust and investment advisory
services 1,862 1,347 3,438 2,660
Service charges 867 641 1,536 1,196
Bank owned life insurance 609 293 1,221 582
Other 1,144 637 1,784 1,064
------------------------------------
4,482 2,918 7,979 5,502
------------------------------------
Other expense:
Compensation 13,748 9,015 25,325 17,508
Occupancy 3,140 2,450 5,590 4,695
Customer service 1,963 965 3,212 1,673
Organizational costs 428 - 428 -
Other 5,274 3,537 9,518 6,664
------------------------------------
24,553 15,967 44,073 30,540
------------------------------------
Income before income taxes 17,681 10,146 30,510 18,424
Income tax expense 6,368 3,593 10,759 6,550
------------------------------------
Net income $11,313 $6,553 $19,751 $11,874
====================================
Earnings per share:
Basic $0.42 $0.35 $0.80 $0.65
====================================
Diluted $0.39 $0.32 $0.73 $0.59
====================================
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Statements of Income
Unaudited
Quarter ended
Jun. Mar. Dec. Sep. Jun.
($ in thousands, 30, 31, 31, 30, 30,
except per share data) 2006 2006 2005 2005 2005
- ----------------------------------------------------------------------
Interest income on:
Loans, including fees $52,004 $34,754 $31,215 $27,343 $23,589
Securities 6,759 7,159 7,285 7,489 7,385
Federal funds sold and
other 619 283 475 868 838
---------------------------------------------
Total interest income 59,382 42,196 38,975 35,700 31,812
---------------------------------------------
Interest expense on:
Deposits 15,417 9,924 8,422 6,767 5,838
Borrowings 3,284 2,311 1,345 1,056 1,084
Junior subordinated debt 1,000 567 593 546 508
---------------------------------------------
Total interest expense 19,701 12,802 10,360 8,369 7,430
---------------------------------------------
Net interest income 39,681 29,394 28,615 27,331 24,382
Provision for loan losses 1,929 542 1,962 1,283 1,187
Net interest income
after provision for ---------------------------------------------
loan losses 37,752 28,852 26,653 26,048 23,195
---------------------------------------------
Other income:
Trust and investment
advisory services 1,862 1,576 1,591 1,448 1,347
Service charges 867 669 637 662 641
Bank owned life
insurance 609 612 619 463 293
Other 1,144 640 556 660 637
---------------------------------------------
4,482 3,497 3,403 3,233 2,918
---------------------------------------------
Other expense:
Compensation 13,748 11,577 9,767 9,541 9,015
Occupancy 3,140 2,450 2,619 2,619 2,450
Customer service 1,963 1,249 790 1,257 965
Organizational costs 428 - - - -
Other 5,274 4,244 3,874 3,857 3,537
---------------------------------------------
24,553 19,520 17,050 17,274 15,967
---------------------------------------------
Income before income
taxes 17,681 12,829 13,006 12,007 10,146
Income tax expense 6,368 4,391 4,564 4,258 3,593
---------------------------------------------
Net income $11,313 $8,438 $8,442 $7,749 $6,553
=============================================
Earnings per share:
Basic $0.42 $0.37 $0.37 $0.34 $0.35
=============================================
Diluted $0.39 $0.33 $0.34 $0.31 $0.32
=============================================
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Jun. Mar. Dec. Sep. Jun.
30, 31, 31, 30, 30,
($ in millions) 2006 2006 2005 2005 2005
- ----------------------------------------------------------------------
Assets
Cash and due from banks $137.5 $141.7 $111.2 $90.6 $93.2
Federal funds sold 86.8 221.6 63.2 204.0 212.2
Cash and cash ---------------------------------------------
equivalents 224.3 363.3 174.4 294.6 305.4
---------------------------------------------
Securities 587.0 624.9 748.5 713.1 695.4
Gross loans, including
net deferred loan fees:
Construction and land
development 769.2 631.0 432.7 397.0 381.4
Commercial real estate 1,061.0 886.2 727.2 655.0 598.3
Residential real estate 350.6 315.9 272.9 239.5 168.6
Commercial and
industrial 569.7 501.6 342.5 307.0 286.3
Consumer 26.7 23.3 20.4 21.1 20.6
Net deferred loan fees (3.7) (3.8) (2.3) (2.1) (1.9)
---------------------------------------------
2,773.5 2,354.2 1,793.4 1,617.5 1,453.3
Less: Allowance for loan
losses (32.2) (27.7) (21.2) (19.3) (18.1)
---------------------------------------------
Loans, net 2,741.3 2,326.5 1,772.2 1,598.2 1,435.2
---------------------------------------------
Initial public offering
proceeds receivable - - - - 77.1
Premises and equipment,
net 68.7 71.9 58.4 36.9 35.8
Bank owned life insurance 55.6 52.4 51.8 51.2 26.7
Goodwill and other
intangibles 145.3 92.0 5.2 5.2 5.3
Other assets 67.7 49.1 46.8 45.8 40.4
---------------------------------------------
Total assets $3,889.9 $3,580.1 $2,857.3 $2,745.0 $2,621.3
=============================================
Liabilities and
Stockholders' Equity
Liabilities
Non-interest
bearing demand
deposits $1,188.8 $1,186.6 $980.0 $1,048.2 $964.3
Interest bearing
deposits:
Demand 261.4 240.6 122.3 107.7 110.5
Savings and money
market 1,231.2 1,086.3 949.6 893.7 820.0
Time, $100 and over 429.2 380.9 316.2 275.3 273.6
Other time 87.8 63.0 25.8 22.6 21.1
---------------------------------------------
3,198.4 2,957.4 2,393.9 2,347.5 2,189.5
Customer repurchase
agreements 138.5 90.4 78.2 55.8 55.3
Borrowings 88.1 108.6 80.5 63.7 113.7
Junior subordinated debt 81.2 41.2 30.9 30.9 30.9
Accrued interest payable
and other liabilities 16.2 26.2 29.6 8.9 9.4
---------------------------------------------
Total liabilities 3,522.4 3,223.8 2,613.1 2,506.8 2,398.8
---------------------------------------------
Stockholders' Equity
Common stock and
additional paid-in
capital 274.7 271.9 167.6 167.6 157.8
Retained earnings 105.9 94.7 86.3 77.7 70.1
Accumulated other
comprehensive loss (13.1) (10.3) (9.7) (7.1) (5.4)
---------------------------------------------
Total stockholders'
equity 367.5 356.3 244.2 238.2 222.5
---------------------------------------------
Total liabilities and
stockholders' equity $3,889.9 $3,580.1 $2,857.3 $2,745.0 $2,621.3
=============================================
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Statement of Changes in Stockholders' Equity
Unaudited Six Months Ended Six Months Ended
Jun. 30, 2006 Jun. 30, 2005
Shares
(in thousands) Outstanding Amount
- ----------------------------------------------------------------------
Balance, beginning of period 22,810 $244,223 $133,571
Net income - 19,751 11,874
Other comprehensive income
(loss), net of tax:
Net unrealized holding losses
on securities available for
sale - (3,370) (301)
Common stock issued through IPO - - 75,898
Common stock and options issued
in acquisition 3,390 104,412 -
Common stock issued to WAL 401(k)
Plan 4 143
Stock options exercised 132 1,083 603
Stock warrants exercised 48 364 806
Restricted stock granted, net 201 - -
Stock-based compensation expense - 947 38
-------------------------------------
Balance, end of period 26,585 $367,553 $222,489
=====================================
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Loan Losses
Unaudited
Quarter Ended
Jun. Mar. Dec. Sep. Jun.
30, 31, 31, 30, 30,
(in thousands) 2006 2006 2005 2005 2005
- ---------------------------------------------------------------------
Balance, beginning of
period $27,689 $21,192 $19,288 $18,118 $17,114
Acquisitions 2,488 5,877 - - -
Provisions charged to
operating expenses 1,929 542 1,962 1,283 1,187
Recoveries of loans
previously charged-off:
Construction and land
development - - - - -
Commercial real estate - - - - -
Residential real
estate - 5 - - -
Commercial and
industrial 99 128 8 7 19
Consumer 21 30 16 6 1
--------------------------------------------
Total recoveries 120 163 24 13 20
Loans charged-off:
Construction and land
development - - - - -
Commercial real estate - - - - -
Residential real
estate - - - - -
Commercial and
industrial 44 83 13 - 107
Consumer 1 2 69 126 96
--------------------------------------------
Total charged-off 45 85 82 126 203
Net charge-offs
(recoveries) (75) (78) 58 113 183
--------------------------------------------
Balance, end of period $32,181 $27,689 $21,192 $19,288 $18,118
============================================
Net charge-offs
(recoveries)
(annualized) to average
loans outstanding -0.01% -0.02% 0.01% 0.03% 0.05%
Allowance for loan
losses to gross loans 1.16 1.18 1.18 1.19 1.25
Non-accrual loans $20 $29 $107 $175 $503
Loans past due 90 days,
still accruing 13 394 34 2,503 9
Western Alliance Bancorporation and Subsidiaries
Average Balances, Yields and Rates Paid
Unaudited
Three Months Ended June 30,
2006 2005
- ----------------------------------------------------------------------
Average Interest Average Average Interest Average
Balance Yield/ Balance Yield/
Cost Cost
Earning Assets (in (in (in (in
millions) thousands) millions) thousands)
Securities $609.4 $6,545 4.34% $724.4 $7,201 4.01%
Federal funds sold
and other 47.8 619 5.19% 109.6 838 3.07%
Loans 2,688.4 52,004 7.76% 1,383.0 23,589 6.84%
Federal Home Loan
Bank stock 18.4 214 4.66% 13.0 184 5.68%
------------------------- --------------------------
Total earnings
assets 3,364.0 59,382 7.09% 2,230.0 31,812 5.73%
Non-earning Assets
Cash and due from
banks 109.5 79.6
Allowance for
loan losses (30.0) (17.5)
Bank-owned
life insurance 54.4 26.6
Other assets 249.0 64.3
----------- -----------
Total assets $3,746.9 $2,383.0
=========== ===========
Interest Bearing
Liabilities
Sources of Funds
Interest-bearing
deposits:
Interest-bearing
checking $265.2 1,704 2.58% $109.6 162 0.59%
Savings and
money market 1,176.4 8,817 3.01% 804.5 3,866 1.93%
Time deposits 484.6 4,896 4.05% 278.8 1,810 2.60%
------------------------- --------------------------
1,926.2 15,417 3.21% 1,192.9 5,838 1.96%
Borrowings 308.6 3,284 4.27% 165.9 1,084 2.62%
Junior
subordinated
debt 56.4 1,000 7.11% 30.9 508 6.59%
------------------------- --------------------------
Total interest-
bearing
liabilities 2,291.2 19,701 3.45% 1,389.7 7,430 2.14%
Non-interest
Bearing
Liabilities
Non-interest
bearing demand
deposits 1,063.8 836.7
Other liabilities 29.0 8.2
Stockholders'
equity 362.9 148.4
Total liabilities
and
stockholders' ----------- -----------
equity $3,746.9 $2,383.0
=========== ===========
Net interest
income and margin $39,681 4.74% $24,382 4.39%
========== ==========
Net interest spread 3.64% 3.59%
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited Alliance Torrey
Bank Bank Pines
($ in millions) of Nevada of Arizona Bank
- ----------------------------------------------------------------------
At Jun. 30, 2006:
Assets $2,842.5 $605.3 $478.1
Gross loans and deferred
fees 1,908.0 494.4 381.1
Less: Allowance for loan
losses (22.1) (6.1) (4.0)
--------------------------------------------
Net loans 1,885.9 488.3 377.1
--------------------------------------------
Deposits 2,320.8 494.0 397.7
Stockholders' equity 319.4 47.9 36.5
Number of branches 14 7 5
Number of full-time
equivalent employees 441 136 96
(in thousands)
Three Months Ended Jun.
30, 2006:
Net interest
income $28,801 $6,382 $5,551
Provision for
loan losses 1,401 148 380
--------------------------------------------
Net interest income
after provision for loan
losses 27,400 6,234 5,171
Noninterest income 1,873 665 408
Noninterest expense (13,116) (4,849) (3,598)
--------------------------------------------
Income (loss) before
income taxes 16,157 2,050 1,981
Income tax expense
(benefit) 5,560 807 816
--------------------------------------------
Net income (loss) $10,597 $1,243 $1,165
============================================
(in thousands)
Six Months Ended Jun. 30,
2006:
Net interest income $47,495 $12,177 $10,528
Provision for loan losses 1,187 682 602
--------------------------------------------
Net interest income
after provision for loan
losses 46,308 11,495 9,926
Noninterest income 3,491 1,031 675
Noninterest expense (23,141) (9,235) (6,785)
--------------------------------------------
Income (loss) before
income taxes 26,658 3,291 3,816
Income tax expense
(benefit) 9,021 1,284 1,562
--------------------------------------------
Net income (loss) $17,637 $2,007 $2,254
============================================
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Alliance Torrey
Bank Bank Pines
($ in millions) of Nevada of Arizona Bank
- ----------------------------------------------------------------------
At Jun. 30, 2005:
Assets $1,727.1 $447.7 $334.0
Gross loans and deferred
fees 930.6 307.4 215.3
Less: Allowance for loan
losses (11.2) (4.3) (2.6)
--------------------------------------------
Net loans 919.4 303.1 212.7
--------------------------------------------
Deposits 1,469.7 426.6 295.0
Stockholders' equity 103.9 37.4 27.0
Number of branches 5 5 3
Number of full-time
equivalent employees 285 107 70
(in thousands)
Three Months Ended Jun.
30, 2005:
Net interest income $16,961 $4,523 $3,376
Provision for
loan losses 482 424 281
--------------------------------------------
Net interest income
after provision
for loan losses 16,479 4,099 3,095
Noninterest income 1,232 403 152
Noninterest expense (8,644) (3,209) (2,548)
--------------------------------------------
Income (loss) before
income taxes 9,067 1,293 699
Income tax expense
(benefit) 3,099 520 294
--------------------------------------------
Net income (loss) $5,968 $773 $405
============================================
(in thousands)
Six Months Ended Jun. 30,
2005:
Net interest income $32,793 $8,341 $6,185
Provision for loan losses 1,441 902 591
--------------------------------------------
Net interest income after
provision for loan
losses 31,352 7,439 5,594
Noninterest income 2,455 529 276
Noninterest expense (16,752) (5,896) (4,817)
--------------------------------------------
Income (loss) before
income taxes 17,055 2,072 1,053
Income tax expense
(benefit) 5,770 828 424
--------------------------------------------
Net income (loss) $11,285 $1,244 $629
============================================
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Intersegment Consolidated
($ in millions) Other Eliminations Company
- ----------------------------------------------------------------------
At Jun. 30, 2006:
Assets $438.2 $(474.2) $3,889.9
Gross loans and
deferred fees - (10.0) $2,773.5
Less: Allowance
for loan losses - - (32.2)
--------------------------------------------
Net loans - (10.0) 2,741.3
--------------------------------------------
Deposits - (14.1) 3,198.4
Stockholders' equity 374.9 (411.2) 367.5
Number of branches - - 26
Number of full-time
equivalent employees 44 - 717
(in thousands)
Three Months Ended Jun.
30, 2006:
Net interest income $(1,054) $1 $39,681
Provision for loan losses - - 1,929
--------------------------------------------
Net interest income
after provision for loan
losses (1,054) 1 37,752
Noninterest income 15,033 (13,497) 4,482
Noninterest expense (3,320) 330 (24,553)
--------------------------------------------
Income (loss) before
income taxes 10,659 (13,166) 17,681
Income tax expense
(benefit) (815) - 6,368
--------------------------------------------
Net income (loss) $11,474 $(13,166) $11,313
============================================
(in thousands)
Six Months Ended Jun. 30,
2006:
Net interest income $(1,128) $3 $69,075
Provision for loan losses - - 2,471
--------------------------------------------
Net interest income
after provision for loan
losses (1,128) 3 66,604
Noninterest income 25,533 (22,751) 7,979
Noninterest expense (5,574) 662 (44,073)
--------------------------------------------
Income (loss) before
income taxes 18,831 (22,086) 30,510
Income tax expense
(benefit) (1,108) - 10,759
--------------------------------------------
Net income (loss) $19,939 $(22,086) $19,751
============================================
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Intersegment Consolidated
($ in millions) Other Eliminations Company
- ----------------------------------------------------------------------
At Jun. 30, 2005:
Assets $262.2 $(149.7) $2,621.3
Gross loans and
deferred fees - - 1,453.3
Less: Allowance
for loan losses - - (18.1)
--------------------------------------------
Net loans - - 1,435.2
--------------------------------------------
Deposits - (1.7) 2,189.6
Stockholders' equity 229.4 (175.2) 222.5
Number of branches - - 13
Number of full-time
equivalent employees 35 - 497
(in thousands)
Three Months Ended Jun.
30, 2005:
Net interest income $(478) $- $24,382
Provision for
loan losses - - 1,187
--------------------------------------------
Net interest income
after provision for loan
losses (478) - 23,195
Noninterest income 8,381 (7,250) 2,918
Noninterest expense (1,819) 253 (15,967)
--------------------------------------------
Income (loss) before
income taxes 6,084 (6,997) 10,146
Income tax expense
(benefit) (320) - 3,593
--------------------------------------------
Net income (loss) $6,404 $(6,997) $6,553
============================================
(in thousands)
Six Months Ended Jun. 30,
2005:
Net interest income $(923) $- $46,396
Provision for loan losses - - 2,934
--------------------------------------------
Net interest income
after provision for loan
losses (923) - 43,462
Noninterest income 15,766 (13,524) 5,502
Noninterest expense (3,528) 453 (30,540)
--------------------------------------------
Income (loss) before
income taxes 11,315 (13,071) 18,424
Income tax expense
(benefit) (472) - 6,550
--------------------------------------------
Net income (loss) $11,787 $(13,071) $11,874
============================================
CONTACT: Western Alliance Bancorporation
Robert Sarver, 858-523-4601 (Media)
Dale Gibbons, 702-248-4200 (Investor)