Exhibit 99.1
Western Alliance Reports Net Income of $11.1 Million or $0.35 Per
Share for the Third Quarter 2007 and Announces Election of New Director
LAS VEGAS--(BUSINESS WIRE)--Oct. 18, 2007--Western Alliance
Bancorporation (NYSE:WAL) announced today its financial results for
the third quarter 2007.
Third Quarter 2007 Highlights:
-- Net income of $11.1 million, up 39.5% from $7.9 million in the
second quarter 2007 and down 4.2% from $11.6 million for the
third quarter 2006
-- Diluted earnings per share of $0.35, up 40% from $0.25 in the
second quarter 2007 and down 12.5% from $0.40 in the third
quarter 2006
-- Net revenue (sum of net interest income and non-interest
income) of $52.7 million, up 1.6% from $51.8 million in the
second quarter 2007 and 20.0% from $43.9 million for the third
quarter 2006
-- Loans of $3.55 billion at September 30, 2007, up 4.7% or $158
million from June 30, 2007, and 21.5% or $627 million from one
year ago, including organic growth of $158 million and $334
million, respectively
-- Deposits of $3.79 billion at September 30, 2007, down 0.6% or
$23 million from June 30, 2007, and up 16.7% or $542 million
from one year ago, including an organic decline of $23 million
and an organic increase of $140 million, respectively
-- Acquired a majority interest in Shine Investment Advisory
Services, Inc. on July 31, 2007.
New Director
Kenneth A. Vecchione has been elected Director of Western
Alliance. He is the former Vice Chairman and Chief Financial Officer
of MBNA Corporation with prior work experience at AT&T Universal Card,
First Data Corp and Citicorp Credit Card Services. He will commence
his new responsibilities as Chief Financial Officer of Apollo Global
Management, L.P. on October 29, 2007. Vecchione is a graduate of the
State University of New York.
Acquisition Activity
On July 31, 2007, we acquired a majority interest in Shine
Investment Advisory Services (Shine). At the time of the acquisition,
Shine had $410 million in assets under management, primarily in the
state of Colorado. No income from Shine's operations was recognized by
Western Alliance prior to August 1, 2007.
Financial Performance
Western Alliance Bancorporation reported net income of $11.1
million for the third quarter 2007, up 39.5 percent from $7.9 million
for the second quarter 2007 and down 4.2 percent from $11.6 million
for the third quarter 2006. Diluted earnings per share were $0.35.
Third quarter 2007 income includes a $1.3 million ($0.04 per share)
after-tax gain primarily due to valuation adjustments and realized
gains in our securities portfolio, a $0.5 million ($0.02 per share)
loss from the de novo bank subsidiary, Alta Alliance Bank, and a $0.6
million loss ($0.02 per share) from PartnersFirst, the Company's
affinity credit card initiative.
Effective January 1, 2007 the Company adopted Financial Accounting
Standard 159, which permitted the election of fair value measurement
of certain assets and liabilities. Western Alliance elected this
option for $252 million of securities with an estimated average
remaining duration of three years. Under FAS 159, the book value of
these securities floats with market valuations as a non-cash
adjustment to earnings. In 2006, these securities were classified as
"available for sale" or "held to maturity" and changes in valuations
were either reflected as a direct adjustment to equity or disclosed
but not recognized, depending on their classification. The valuation
increase in this portfolio resulting from the decrease in market rates
in the third quarter 2007 was $1.1 million, net of tax.
Loans organically grew $158 million to $3.55 billion at September
30, 2007 from June 30, 2007 and increased $627 million, including
organic growth of $334 million, from September 30, 2006. Deposits
decreased $23 million to $3.79 billion from June 30, 2007 and
increased $542 million, including organic growth of $140 million, from
September 30, 2006.
"Our performance again reflected some of the challenges facing our
primary markets, particularly in the real estate sector. Despite our
substantial increase in nonaccrual loans during the quarter from $1
million to $16 million as delinquent loans became nonperforming, I am
pleased that delinquent loans decreased by an additional $12 million
for a total decline of $28 million in this category," said Robert
Sarver, Chairman and Chief Executive Officer of Western Alliance. "We
also made progress on decelerating our expense growth by reducing our
staff count to 987 from 1,000 at June 30, even though we opened three
new offices during the quarter. In the future we expect our branch
expansion to slow significantly, which should facilitate continued
improvement in this area and a lower efficiency ratio.
"We were pleased to complete our acquisition of a majority
interest in Shine Investment Advisory Services during the quarter,
expanding our financial services franchise into Colorado by joining
forces with an established team of proven professionals.
PartnersFirst's marketing efforts are off to a strong start with 10
affinity relationships, and we continue to benefit from high interest
in our program from a number of prospect organizations nationwide. We
will be issuing our first affinity cards next month and begin
executing our strategy to ensure our product becomes the card of
choice for our customers.
"Finally, I'm delighted Ken Vecchione has joined our company as a
Director. Ken's long and exceptional career with credit card
organizations provides considerable additional strength to the WAL
Board and our PartnersFirst team. In particular, his leadership as CFO
of MBNA will be invaluable to our operation as MBNA was easily the
most successful affinity card company worldwide."
Income Statement
Net interest income increased 19.1 percent to $46.8 million in the
third quarter 2007 from $39.3 million in the third quarter 2006. The
interest margin in the third quarter 2007 was 4.38 percent, compared
to 4.52 percent in the second quarter 2007. The margin was 4.42
percent in the third quarter 2006.
The provision for loan losses was $3.9 million for the third
quarter 2007 compared to $2.0 million for the second quarter 2007 and
$1.0 million for the third quarter 2006. Non-accrual loans were $16.3
million or 0.46 percent of total loans at September 30, 2007, compared
to $0.6 million or 0.02 percent of total loans at September 30, 2006.
Net charge offs were $0.6 million for the third quarter 2007, compared
to $0.4 million for the same period in 2006.
Non-interest income was $5.9 million for the third quarter 2007,
up 27.4 percent from $4.6 million for the same period in 2006. For the
second quarter 2007, non-interest income was $6.0 million.
Net revenue was $52.7 million for the third quarter 2007, up 20.0
percent from $43.9 million for the third quarter 2006. For the second
quarter 2007, net revenue was $51.8 million.
Non-interest expense was $34.6 million for the third quarter 2007,
up 38.0 percent from $25.1 million for the same period in 2006. For
the second quarter 2007, non-interest expense was $33.7 million. We
had 987 full-time equivalent employees on September 30, 2007 compared
to 1,000 on June 30, 2007 and 763 on September 30, 2006. We had 38
full-service banking offices on September 30, 2007 compared to 35 on
June 30, 2007 and 29 on September 30, 2006.
Net income decreased 4.2 percent to $11.1 million for the third
quarter 2007 compared to $11.6 million for the same period last year.
Diluted earnings per share were $0.35 compared with $0.40 for the
third quarter 2006, a decrease of 12.5 percent. Average diluted shares
increased 8.7 percent to 31.7 million for the third quarter 2007
compared to 29.2 million for the third quarter 2006.
For the first nine months of 2007 compared to 2006, net income
decreased 1.5 percent from $30.9 million to $30.4 million and
fully-diluted earnings per share decreased 10.8 percent from $1.11 to
$0.99.
Balance Sheet
Loans totaled $3.55 billion at September 30, 2007, an increase of
$158 million or 4.7 percent from June 30, 2007 and 21.5 percent from
$2.92 billion at September 30, 2006. Total loans acquired in the First
Independent merger on March 31, 2007, were $293 million. Organic loan
growth for the quarter and nine months ended September 30, 2007 was
$158 million and $252 million, respectively. At September 30, 2007 the
allowance for loan losses was 1.13 percent of gross loans, compared to
1.09 percent at June 30, 2007 and 1.13 percent at September 30, 2006.
Deposits totaled $3.79 billion at September 30, 2007, a decrease
of $23 million from June 30, 2007 and an increase of $542 million from
$3.25 billion at September 30, 2006. Total deposits acquired in the
First Independent merger were $403 million. Organic deposit growth for
the quarter and 12 months ended September 30, 2007 was a decline of
$56 million and an increase of $140 million, respectively.
Non-interest bearing deposits, which include title company
deposits for which the Company incurs non-interest expense for the
benefit of the depositor, comprised 29.3 percent of total deposits at
September 30, 2007. At September 30, 2007, non-interest bearing
deposits from title companies were 5.5 percent of total deposits
compared to 6.4 percent at June 30, 2007, and 8.4 percent at September
30, 2006. Excluding non-interest bearing title company deposits,
customer deposits and customer repurchase agreements totaled $3.81
billion at September 30, 2007, representing organic growth of 1.0
percent or $38 million from June 30, 2007, and organic growth of 8.9
percent or $278 million from one year ago.
At September 30, 2007 the company's loan to deposit ratio was 93.5
percent compared to 89.8 percent one year earlier. Fed funds sold
totaled $38 million at September 30, 2007, down 63.8 percent from $104
million one year earlier.
Stockholders' equity increased $123 million from September 30,
2006 to $516 million at September 30, 2007, due primarily to stock
issued in connection with the acquisition of First Independent Capital
and an increase in retained earnings. At September 30, 2007 tangible
common equity was 5.7 percent of tangible assets and total risk-based
capital was 10.3 percent of risk-weighted assets.
Western Alliance repurchased 559,900 shares of its common stock
during the quarter ended September 30, 2007 under its $50 million
share repurchase program effective through the end of 2008. The
average per share price paid for the repurchased stock was $26.41.
Total assets increased 25.0 percent to $5.00 billion at September
30, 2007 from $4.00 billion at September 30, 2006. Of this growth,
$470 million was organic, while $531 million represents the assets
acquired through the First Independent merger on March 31, 2007.
Operating Unit Highlights
Bank of Nevada reported a loan increase of $39 million during the
third quarter 2007 and an increase of $154 million during the last 12
months to $2.16 billion at September 30, 2007. Deposits decreased $53
million and $184 million to $2.12 billion during the same periods,
respectively. Net income at Bank of Nevada was $9.4 million during the
third quarter 2007 compared with $7.3 million during the second
quarter 2007 and $10.9 million for the same period last year.
Alliance Bank of Arizona reported loan growth of $38 million
during the third quarter 2007 and $27 million during the last 12
months to $562 million. Deposits decreased $34 million and increased
$156 million to $628 million during the same periods, respectively.
Net income at Alliance Bank of Arizona was $1.1 million during the
third quarter 2007 compared with $0.7 million during the second
quarter 2007 and $1.3 million for the same period one year ago.
Torrey Pines Bank, which includes PartnersFirst, reported loan
growth of $46 million during the third quarter 2007 and $80 million
during the last 12 months to $481 million. Deposits increased $10
million and $37 million to $534 million during the same periods,
respectively. Net income at Torrey Pines Bank was $1.1 million during
the third quarter 2007 compared with $1.0 million during the second
quarter 2007 and $1.3 million during the third quarter 2006.
Alta Alliance Bank reported loan growth of $11 million during the
third quarter 2007 and $33 million since its inception October 16,
2006. Deposits increased $9 million for the quarter and grew to $57
million since inception. Alta Alliance Bank incurred a net loss of
$0.5 million during the third quarter 2007 compared to $0.6 million
during the second quarter 2007.
First Independent Bank reported loan growth of $29 million during
the third quarter 2007 to $339 million. Deposits increased $44 million
to $458 million during the third quarter 2007. Net income at First
Independent Bank was $1.4 million during the third quarter.
Assets under management at Miller/Russell and Associates, Shine
and Premier Trust were $2.33 billion at September 30, 2007, up 53.3
percent (24.8 percent organic) from $1.52 billion at September 30,
2006. Assets under administration by the three entities increased 49.4
percent (23.9 percent organic) from $1.70 billion to $2.54 billion at
September 30, 2007.
Attached to this press release is summarized financial information
for the quarter ended September 30, 2007.
Conference Call
Western Alliance Bancorporation will host a conference call to
discuss its third quarter 2007 financial results at 12:30 p.m. ET on
Friday, October 19, 2007. Participants may access the call by dialing
888-713-4495 using the pass code 4231550. The call will be recorded
and made available for replay after 5:00 p.m. October 19 until 11 p.m.
October 26 by dialing 888-203-1112 using the pass code 4231550.
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 annual report on Form 10-K as
filed with the Securities and Exchange Commission; changes in general
economic conditions, either nationally or locally in the areas in
which we conduct or will conduct our business; inflation, interest
rate, market and monetary fluctuations; increases in competitive
pressures among financial institutions and businesses offering similar
products and services; higher defaults on our loan portfolio than we
expect; changes in management's estimate of the adequacy of the
allowance for loan losses; legislative or regulatory changes or
changes in accounting principles, policies or guidelines; management's
estimates and projections of interest rates and interest rate policy;
the execution of our business plan; and other factors affecting the
financial services industry generally or the banking industry in
particular.
We do not intend and disclaim any duty or obligation to update or
revise any industry information or forward-looking statements set
forth in this press release to reflect new information, future events
or otherwise.
About Western Alliance Bancorporation
Western Alliance Bancorporation is the parent company of Bank of
Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona,
Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates,
Shine Investment Advisory Services, Premier Trust, and PartnersFirst.
These dynamic organizations provide a broad array of banking, leasing,
trust, investment, and mortgage services to clients in Nevada, Arizona
and California, investment services in Colorado, and bank card
services nationwide. Staffed with experienced financial professionals,
these organizations deliver a broader product array and larger credit
capacity than community banks, yet are empowered to be more responsive
to customers' needs than larger institutions. Additional investor
information can be accessed on the Investor Relations page of the
company's website, westernalliancebancorp.com.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
At or for the three months For the nine months
ended September 30, ended September 30,
2007 2006 Change % 2007 2006 Change %
- ----------------------------------------------------------------------
Selected
Balance Sheet
Data:
($ in
millions)
Total assets $5,003.4 $ 4,002.8 25.0%
Gross loans,
including net
deferred fees 3,546.5 2,919.6 21.5
Securities 788.4 554.1 42.3
Federal funds
sold 37.6 103.8 (63.8)
Deposits 3,792.7 3,250.3 16.7
Borrowings 560.5 259.2 116.2
Junior
subordinated
and
subordinated
debt 113.7 81.9 38.8
Stockholders'
equity 515.9 393.1 31.2
Selected
Income
Statement
Data:
($ in
thousands)
Interest
income $ 80,473 $ 64,344 25.1%$224,632 $165,923 35.4%
Interest
expense 33,699 25,068 34.4 91,176 57,710 58.0
-------- --------- -------- --------
Net interest
income 46,774 39,276 19.1 133,456 108,213 23.3
Provision for
loan losses 3,925 953 311.9 6,378 3,950 61.5
-------- --------- -------- --------
Net interest
income after
provision for
loan losses 42,849 38,323 11.8 127,078 104,263 21.9
Gain on sale
of securities 380 - 100.0 664 - 100.0
Mark-to-market
gains
(losses)
(net) 1,676 - 100.0 (2,103) - 100.0
Non-interest
income 5,899 4,631 27.4 17,508 12,609 38.9
Non-interest
expense 34,621 25,057 38.2 97,816 69,147 41.5
-------- --------- -------- --------
Income before
income taxes 16,183 17,897 (9.6) 45,331 47,725 (5.0)
Income tax
expense 5,100 6,330 (19.4) 14,899 16,844 (11.5)
-------- --------- -------- --------
Net Income $ 11,083 $ 11,567 (4.2) $ 30,432 $ 30,881 (1.5)
======== ========= ======== ========
Memo:
intangible
asset
amortization
expense, net
of tax $ 260 $ 242 7.4 $ 1,074 $ 499 100.0
-------- --------- -------- --------
Common Share
Data:
Net income per
share:
Diluted net
income per
share 0.35 0.40 (12.5) 0.98 1.11 (11.7)
Book value per
share 17.21 14.57 18.1
Tangible book
value per
share (net of
tax) 9.38 9.31 0.8
Average shares
outstanding
(in
thousands):
Basic 29,501 26,471 11.4 28,715 25,216 13.9
Diluted 31,703 29,161 8.7 30,916 27,833 11.1
Common shares
outstanding 29,982 26,977 11.1
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)
Unaudited
At or for the three months For the nine months
ended September 30, ended September 30,
2007 2006 Change % 2007 2006 Change %
- ----------------------------------------------------------------------
Selected
Performance
Ratios:
Return on
average
assets (1) 0.90% 1.16% (22.4)% 0.90% 1.17% (23.1)%
Cash return on
average
tangible
assets (1)
(2) 0.97 1.23 (21.1) 0.97 1.22 (20.5)
Return on
average
stockholders'
equity (1) 8.46 12.09 (30.0) 8.40 12.48 (32.7)
Cash return on
average
tangible
stockholders'
equity (1)
(2) 16.37 19.96 (18.0) 15.37 17.63 (12.8)
Net interest
margin (1) 4.38 4.42 (0.9) 4.49 4.56 (1.5)
Net interest
spread 3.36 3.29 2.1 3.39 3.45 (1.7)
Efficiency
ratio - tax
equivalent
basis 65.14 57.04 14.2 63.85 57.10 11.8
Loan to
deposit ratio 93.51 89.83 4.1
Capital
Ratios:
Tangible
Common
Equity 5.7% 6.4% (10.9)%
Tier 1
leverage
ratio 7.7 8.4 (8.3)
Tier 1 Risk
Based
Capital 8.0 9.5 (15.8)
Total Risk
Based
Capital 10.3 11.0 (6.4)
Asset Quality
Ratios:
Net charge-
offs to
average loans
outstanding
(1) 0.07% 0.05% 40.0% 0.14% (0.01)%(1,500.0)%
Non-accrual
loans to
gross loans 0.46 0.02 2,200.0
Non-accrual
loans and
OREO to total
assets 0.33 0.02 1,550.0
Loans past due
90 days and
still
accruing to
total loans 0.01 0.00 100.0
Allowance for
loan losses
to gross
loans 1.13 1.13 0.0
Allowance for
loan losses
to non-
accrual loans 245.29% 5481.79% (95.5)
===================================================
(1) Annualized for the three and nine-month periods ended September
30, 2007 and 2006.
(2) Cash return is defined as net income before intangible asset
amortization expense.
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Statements of Income
Unaudited Three Months Ended Nine Months Ended
September 30, September 30,
(in thousands, except per share
data) 2007 2006 2007 2006
- ----------------------------------------------------------------------
Interest income on:
Loans, including fees $ 69,066 $ 57,508 $195,279 $144,266
Securities 11,049 6,541 27,953 20,459
Federal funds sold and other 358 295 1,400 1,198
-------------------------------------
Total interest income 80,473 64,344 224,632 165,923
-------------------------------------
Interest expense on:
Deposits 26,571 18,987 74,276 44,329
Borrowings 5,270 4,487 11,491 10,082
Junior subordinated and
subordinated debt 1,858 1,594 5,409 3,299
-------------------------------------
Total interest expense 33,699 25,068 91,176 57,710
-------------------------------------
Net interest income 46,774 39,276 133,456 108,213
Provision for loan losses 3,925 953 6,378 3,950
-------------------------------------
Net interest income after
provision for loan
losses 42,849 38,323 127,078 104,263
-------------------------------------
Gain from sale of securities 380 - 664 -
Mark-to-market gains (losses),
net 1,676 - (2,103) -
Other income:
Trust and investment advisory
services 2,633 1,897 6,875 5,335
Service charges 1,253 918 3,489 2,453
Bank-owned life insurance 962 641 2,850 1,862
Other 1,051 1,175 4,294 2,959
-------------------------------------
5,899 4,631 17,508 12,609
-------------------------------------
Other expense:
Compensation 20,556 14,243 56,410 39,352
Occupancy 5,240 3,556 14,351 9,146
Customer service 1,675 1,817 4,895 5,029
Merger expenses - - 747 -
Intangible amortization 260 242 1,074 499
Other 6,890 5,199 20,339 15,121
-------------------------------------
34,621 25,057 97,816 69,147
-------------------------------------
Income before income taxes 16,183 17,897 45,331 47,725
Income tax expense 5,100 6,330 14,899 16,844
-------------------------------------
Net income $ 11,083 $ 11,567 $ 30,432 $ 30,881
=====================================
Diluted earnings per share $ 0.35 $ 0.40 $ 0.98 $ 1.11
=====================================
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Statements of Income
Unaudited
Quarter ended
----------------------------------------------
September June March December September
($ in thousands, except 30, 30, 31, 31, 30,
per share data) 2007 2007 2007 2006 2006
- ----------------------------------------------------------------------
Interest income on:
Loans, including fees $69,066 $67,193 $59,020 $59,526 $57,508
Securities 11,049 9,144 7,760 7,037 6,541
Federal funds sold and
other 358 509 533 600 295
----------------------------------------------
Total interest
income 80,473 76,846 67,313 67,163 64,344
----------------------------------------------
Interest expense on:
Deposits 26,571 25,832 21,873 21,284 18,987
Borrowings 5,270 3,316 2,905 3,743 4,487
Junior subordinated and
subordinated debt 1,858 1,872 1,679 1,561 1,594
----------------------------------------------
Total interest
expense 33,699 31,020 26,457 26,588 25,068
----------------------------------------------
Net interest income 46,774 45,826 40,856 40,575 39,276
Provision for loan
losses 3,925 2,012 441 709 953
----------------------------------------------
Net interest
income after
provision 42,849 43,814 40,415 39,866 38,323
----------------------------------------------
Gain (loss) from sale of
securities 380 - 284 (4,436) -
Mark-to-market gains
(losses), net 1,676 (3,766) (13) - -
Other income:
Trust and other fees 2,633 2,137 2,105 2,011 1,897
Service charges 1,253 1,167 1,069 996 918
Bank-owned life
insurance 962 960 928 799 641
Other 1,051 1,755 1,488 1,454 1,175
----------------------------------------------
5,899 6,019 5,590 5,260 4,631
----------------------------------------------
Other expense:
Compensation 20,556 18,821 17,033 15,415 14,243
Occupancy 5,240 4,872 4,239 3,812 3,556
Customer service 1,675 1,897 1,323 1,655 1,817
Merger expenses - 747 - - -
Intangible amortization 260 557 257 263 242
Other 6,890 7,380 6,069 5,794 5,199
----------------------------------------------
34,621 34,274 28,921 26,939 25,057
----------------------------------------------
Income before income
taxes 16,183 11,793 17,355 13,751 17,897
Income tax expense 5,100 3,847 5,952 4,744 6,330
----------------------------------------------
Net income $11,083 $ 7,946 $11,403 $ 9,007 $11,567
==============================================
Diluted earnings per
share $ 0.35 $ 0.25 $ 0.39 $ 0.31 $ 0.40
==============================================
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
September June March December September
30, 30, 31, 31, 30,
($ in millions) 2007 2007 2007 2006 2006
- ----------------------------------------------------------------------
Assets
Cash and due from banks $ 128.9 $ 122.9 $ 129.7 $ 143.7 $ 103.3
Federal funds sold 37.6 73.0 166.8 121.2 103.8
---------------------------------------------
Cash and cash
equivalents 166.5 195.9 296.5 264.9 207.1
---------------------------------------------
Securities 788.4 685.6 630.9 542.0 554.1
Gross loans, including
net deferred loan fees:
Construction and land
development 801.7 765.4 757.5 715.5 768.7
Real estate:
Commercial 1,484.1 1,437.9 1,420.6 1,232.3 1,168.8
Residential 466.6 436.6 403.7 384.1 385.4
Commercial and
industrial 752.1 709.2 722.6 645.5 574.2
Consumer 50.0 46.8 38.2 29.6 26.1
Net deferred fees (8.0) (7.0) (6.6) (3.7) (3.6)
---------------------------------------------
3,546.5 3,388.9 3,336.0 3,003.3 2,919.6
Less: Allowance for loan
losses (39.9) (36.9) (37.5) (33.6) (33.1)
---------------------------------------------
Loans, net 3,506.6 3,352.0 3,298.5 2,969.7 2,886.5
---------------------------------------------
Premises and equipment,
net 138.4 130.3 125.6 99.9 93.8
Bank owned life insurance 87.1 86.2 85.2 82.1 56.3
Goodwill and other
intangibles 243.1 237.4 237.4 147.5 146.7
Other assets 73.3 59.4 53.5 63.5 58.3
---------------------------------------------
Total assets $5,003.4 $4,746.8 $4,727.6 $4,169.6 $4,002.8
=============================================
Liabilities and
Stockholders' Equity
Liabilities
Non-interest bearing
demand deposits $1,112.1 $1,160.5 $1,243.0 $1,158.2 $1,058.7
Interest bearing
deposits:
Demand 259.2 263.8 268.7 242.4 249.3
Savings and money market 1,710.8 1,684.7 1,648.1 1,407.9 1,403.6
Time, $100 and over 641.0 634.8 610.8 524.9 460.4
Other time 69.6 72.0 78.5 67.0 78.3
---------------------------------------------
3,792.7 3,815.8 3,849.1 3,400.4 3,250.3
Customer repurchase
agreements 204.1 195.7 176.0 170.7 149.2
Borrowings 356.4 90.9 56.6 69.0 110.0
Junior subordinated and
subordinated debt 113.7 110.2 110.4 101.9 81.9
Accrued interest payable
and other liabilities 20.6 14.8 24.3 19.0 18.3
---------------------------------------------
Total liabilities 4,487.5 4,227.4 4,216.4 3,761.0 3,609.7
---------------------------------------------
Stockholders' Equity
Common stock and
additional paid-in
capital 379.2 383.8 381.2 287.5 285.4
Retained earnings 149.8 138.8 130.8 126.2 117.2
Accumulated other
comprehensive loss (13.1) (3.2) (0.8) (5.1) (9.5)
---------------------------------------------
Total stockholders'
equity 515.9 519.4 511.2 408.6 393.1
---------------------------------------------
Total liabilities
and stockholders'
equity $5,003.4 $4,746.8 $4,727.6 $4,169.6 $4,002.8
=============================================
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Loan Losses
Unaudited
Quarter Ended
September June March December September
30, 30, 31, 31, 30,
(in thousands) 2007 2007 2007 2006 2006
- ----------------------------------------------------------------------
Balance, beginning of
period $36,946 $37,519 $33,551 $33,110 $32,158
Acquisitions (370) 83 3,706 - 403
Provisions charged to
operating expenses 3,925 2,012 441 709 953
Recoveries of loans
previously charged-
off:
Construction and
land development - - - - -
Commercial real
estate - - - - -
Residential real
estate - - - - -
Commercial and
industrial 14 83 71 81 16
Consumer 12 9 8 51 5
----------------------------------------------
Total
recoveries 26 92 79 132 21
Loans charged-off:
Construction and
land development - - - 64 -
Commercial real
estate - - - - -
Residential real
estate - - - - -
Commercial and
industrial 328 2,727 91 198 398
Consumer 288 33 167 138 27
----------------------------------------------
Total
charged-off 616 2,760 258 400 425
Net charge-offs 590 2,668 179 268 404
----------------------------------------------
Balance, end of period $39,911 $36,946 $37,519 $33,551 $33,110
==============================================
Net charge-offs
(annualized) to average
loans outstanding 0.07% 0.31% 0.02% 0.04% 0.05%
Allowance for loan
losses to gross loans 1.13 1.09 1.12 1.12 1.13
Non-accrual loans $16,271 $ 717 $ 1,775 $ 1,417 $ 604
Other impaired loans,
acquired through
merger 2,772 816 827 839 1,351
Other real estate owned 149 - - - -
Loans past due 30 to 89
days, still accruing 5,012 26,716 11,447 6,795 7,292
Loans past due 90 days,
still accruing 321 6,431 331 794 18
Western Alliance Bancorporation and Subsidiaries
Average Balances, Yields and Rates Paid
Unaudited
Three Months Ended September 30,
2007
- ----------------------------------------------------------------------
Average
Average Yield/
Balance Interest Cost
Earning Assets (in millions)(in thousands)
Securities (1) $ 736.4 $10,807 6.08%
Federal funds sold 26.1 358 5.44%
Loans (1) 3,502.1 69,066 7.82%
Restricted stock 19.1 242 5.03%
-----------------------------------
Total earnings assets 4,283.7 80,473 7.50%
Non-earning Assets
Cash and due from banks 103.8
Allowance for loan losses (39.0)
Bank-owned life insurance 86.5
Other assets 434.1
-------------
Total assets $4,869.1
=============
Interest Bearing Liabilities
Sources of Funds
Interest-bearing deposits:
Interest-bearing checking $ 263.5 1,658 2.50%
Savings and money market 1,728.1 16,335 3.75%
Time deposits 704.6 8,578 4.83%
-----------------------------------
2,696.2 26,571 3.91%
Borrowings 432.6 5,270 4.83%
Junior subordinated and
subordinated debt 98.7 1,858 7.47%
-----------------------------------
Total interest-bearing liabilities 3,227.5 33,699 4.14%
Non-interest Bearing Liabilities
Noninterest-bearing demand deposits 1,096.2
Other liabilities 25.9
Stockholders' equity 519.5
-------------
Total liabilities and
stockholders' equity $4,869.1
=============
Net interest income and margin $46,774 4.38%
==============
Net interest spread 3.36%
Three Months Ended September 30,
2006
- ----------------------------------------------------------------------
Average
Average Yield/
Balance Interest Cost
Earning Assets (in millions)(in thousands)
Securities (1) $ 577.7 $ 6,280 4.32%
Federal funds sold 19.0 295 6.15%
Loans (1) 2,914.7 57,508 7.83%
Restricted stock 17.2 261 6.02%
----------------------------------
Total earnings assets 3,528.7 64,344 7.24%
Non-earning Assets
Cash and due from banks 109.7
Allowance for loan losses (32.6)
Bank-owned life insurance 55.8
Other assets 288.4
-------------
Total assets $3,950.0
=============
Interest Bearing Liabilities
Sources of Funds
Interest-bearing deposits:
Interest-bearing checking $ 255.1 1,747 2.72%
Savings and money market 1,277.3 11,492 3.57%
Time deposits 518.3 5,748 4.40%
----------------------------------
2,050.7 18,987 3.67%
Borrowings 382.6 4,487 4.65%
Junior subordinated and
subordinated debt 81.9 1,594 7.73%
----------------------------------
Total interest-bearing liabilities 2,515.1 25,068 3.95%
Non-interest Bearing Liabilities
Noninterest-bearing demand
deposits 1,027.4
Other liabilities 28.0
Stockholders' equity 379.5
-------------
Total liabilities and
stockholders' equity $3,950.0
=============
Net interest income and margin $39,276 4.42%
==============
Net interest spread 3.29%
(1) Yields on loans and securities have been adjusted to a tax
equivalent basis.
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
($ in millions) Alliance Torrey Alta
Bank Bank Pines Alliance
of Nevada of Arizona Bank Bank
- ----------------------------------------------------------------------
At September 30, 2007:
Assets $3,046.1 $ 775.5 $ 686.0 $ 78.9
Gross loans and deferred fees 2,156.5 562.3 481.0 32.8
Less: Allowance for loan losses (24.5) (6.4) (4.9) (0.3)
---------------------------------------
Net loans 2,132.0 555.9 476.1 32.5
---------------------------------------
Deposits 2,118.8 628.4 533.8 57.1
Stockholders' equity 340.4 55.8 40.5 22.6
Number of branches 15 10 7 2
Number of full-time equivalent
employees 520 138 128 32
(in thousands)
Three Months Ended September
30, 2007:
Net interest income $ 28,697 $ 7,222 $ 6,396 $ 566
Provision for loan losses 3,296 117 317 87
---------------------------------------
Net interest income after
provision for loan losses 25,401 7,105 6,079 479
Gain on sale of securities 380 - - -
Mark-to-market gains (net) 1,163 194 319 -
Noninterest income 2,527 416 392 98
Noninterest expense (15,742) (6,035) (4,966) (1,379)
---------------------------------------
Income (loss) before income
taxes 13,729 1,680 1,824 (802)
Income tax expense (benefit)
4,280 557 715 (321)
---------------------------------------
Net income (loss) $ 9,449 $ 1,123 $ 1,109 $ (481)
=======================================
(in thousands)
Nine Months Ended September 30,
2007:
Net interest income $ 85,989 $ 21,195 $ 18,428 $ 1,418
Provision for loan losses 5,010 662 484 223
---------------------------------------
Net interest income after
provision for loan losses 80,979 20,533 17,944 1,195
Gain on sale of securities 375 - - -
Mark-to-market losses (net) (1,758) (246) (99) -
Noninterest income 8,469 1,558 1,290 271
Noninterest expense (47,125) (17,276) (13,707) (4,147)
---------------------------------------
Income (loss) before income
taxes 40,940 4,569 5,428 (2,681)
Income tax expense (benefit) 13,132 1,666 2,212 (1,073)
---------------------------------------
Net income (loss) $ 27,808 $ 2,903 $ 3,216 $(1,608)
=======================================
($ in millions) First
Independent Intersegment Consolidated
Bank Other Eliminations Company
- ----------------------------------------------------------------------
At September 30, 2007:
Assets $ 586.0 $ 18.4 $(187.5) $5,003.4
Gross loans and
deferred fees 338.9 - (25.0) $3,546.5
Less: Allowance for
loan losses (3.8) - - (39.9)
-----------------------------------------------
Net loans 335.1 - (25.0) 3,506.6
-----------------------------------------------
Deposits 458.0 - (3.4) 3,792.7
Stockholders' equity 119.8 (63.2) - 515.9
Number of branches 4 - - 38
Number of full-time
equivalent employees 106 63 - 987
(in thousands)
Three Months Ended
September 30, 2007:
Net interest income $ 5,176 $ (1,283) $ - $ 46,774
Provision for loan
losses 108 - - 3,925
-----------------------------------------------
Net interest income
after provision for
loan losses 5,068 (1,283) - 42,849
Gain on sale of
securities - - - 380
Mark-to-market gains
(net) - - - 1,676
Noninterest income 232 2,637 (403) 5,899
Noninterest expense (3,145) (3,757) 403 (34,621)
-----------------------------------------------
Income (loss) before
income taxes 2,155 (2,403) - 16,183
Income tax expense
(benefit) 723 (854) - 5,100
-----------------------------------------------
Net income (loss) $ 1,432 $ (1,549) $ - $ 11,083
===============================================
(in thousands)
Nine Months Ended
September 30, 2007:
Net interest income $10,298 $ (3,872) $ - $133,456
Provision for loan
losses (1) - - 6,378
-----------------------------------------------
Net interest income
after provision for
loan losses 10,299 (3,872) - 127,078
Gain on sale of
securities - 289 - 664
Mark-to-market losses
(net) - - - (2,103)
Noninterest income 452 6,624 (1,156) 17,508
Noninterest expense (6,418) (10,299) 1,156 (97,816)
-----------------------------------------------
Income (loss) before
income taxes 4,333 (7,258) - 45,331
Income tax expense
(benefit) 1,453 (2,491) - 14,899
-----------------------------------------------
Net income (loss) $ 2,880 $ (4,767) $ - $ 30,432
===============================================
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Alliance Torrey
Bank Bank Pines
($ in millions) of Nevada of Arizona Bank
- ----------------------------------------------------------------------
At September 30, 2006:
Assets $2,847.4 $ 646.2 $ 598.9
Gross loans and deferred fees 2,002.7 535.4 401.5
Less: Allowance for loan losses (22.7) (6.0) (4.4)
-------------------------------
Net loans 1,980.0 529.4 397.1
-------------------------------
Deposits 2,303.1 472.1 497.0
Stockholders' equity 333.7 49.8 38.1
Number of branches 15 8 6
Number of full-time equivalent
employees 470 130 105
(in thousands)
Three Months Ended September 30, 2006:
Net interest income $ 28,540 $ 6,110 $ 5,864
Provision for loan losses 680 (99) 372
-------------------------------
Net interest income after provision for
loan losses 27,860 6,209 5,492
Noninterest income 2,129 608 422
Noninterest expense (13,722) (4,784) (3,842)
Income (loss) before income taxes 16,267 2,033 2,072
Income tax expense (benefit) 5,398 720 808
-------------------------------
Net income (loss) $ 10,869 $ 1,313 $ 1,264
===============================
(in thousands)
Nine Months Ended September 30, 2006:
Net interest income $ 75,897 $ 18,288 $ 16,393
Provision for loan losses 2,393 583 974
-------------------------------
Net interest income after provision for
loan losses 73,504 17,705 15,419
Noninterest income 5,618 1,639 1,097
Noninterest expense (36,880) (14,019) (10,627)
Income (loss) before income taxes 42,242 5,325 5,889
Income tax expense (benefit) 14,172 2,004 2,370
-------------------------------
Net income (loss) $ 28,070 $ 3,321 $ 3,519
===============================
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Intersegment Consolidated
($ in millions) Other Eliminations Company
- ----------------------------------------------------------------------
At September 30, 2006:
Assets $ 464.8 $ (554.5) $4,002.8
Gross loans and deferred fees - (20.0) 2,919.6
Less: Allowance for loan losses - - (33.1)
-----------------------------------
Net loans - (20.0) 2,886.5
-----------------------------------
Deposits - (21.9) 3,250.3
Stockholders' equity 400.7 (429.2) 393.1
Number of branches - - 29
Number of full-time equivalent
employees 58 - 763
(in thousands)
Three Months Ended September 30,
2006:
Net interest income $(1,238) $ - $ 39,276
Provision for loan losses - - 953
-----------------------------------
Net interest income after provision
for loan losses (1,238) - 38,323
Noninterest income 15,344 (13,872) 4,631
Noninterest expense (3,164) 455 (25,057)
Income (loss) before income taxes 10,942 (13,417) 17,897
Income tax expense (benefit) (596) - 6,330
-----------------------------------
Net income (loss) $11,538 $(13,417) $ 11,567
===================================
(in thousands)
Nine Months Ended September 30,
2006:
Net interest income $(2,368) $ 3 $108,213
Provision for loan losses - - 3,950
-----------------------------------
Net interest income after provision
for loan losses (2,368) 3 104,263
Noninterest income 40,441 (36,186) 12,609
Noninterest expense (8,737) 1,116 (69,147)
Income (loss) before income taxes 29,336 (35,067) 47,725
Income tax expense (benefit) (1,702) - 16,844
-----------------------------------
Net income (loss) $31,038 $(35,067) $ 30,881
===================================
CONTACT: Western Alliance Bancorporation
Robert Sarver, 602-952-5445 (Media)
Dale Gibbons, 702-248-4200 (Investor)