Attached files
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| 8-K - WESTERN ALLIANCE BANCORPORATION 8-K - WESTERN ALLIANCE BANCORPORATION | a6477110.htm |
| EX-99.2 - EXHIBIT 99.2 - WESTERN ALLIANCE BANCORPORATION | a6477110ex99-2.htm |
Exhibit 99.1
| FOR IMMEDIATE RELEASE | CONTACT: | Dale Gibbons |
| October 21, 2010 | CFO | |
| 602-952-5476 |
Western Alliance Reports Results for the Third Quarter 2010
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Increased Core Earnings Power, Improving Asset Quality Trends
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Deposit Growth of $98 Million, Loan Growth of $44 Million
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Phoenix – October 21, 2010 -- Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the third quarter 2010.
Third Quarter 2010 Highlights:
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Pre-tax, pre-provision operating earnings of $24.6 million, up 8.3% from $22.7 million in second quarter 2010 and 77.5% from $13.8 million in third quarter 2009 1
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Record net interest income of $59.5 million, compared to $57.5 million in prior quarter and $49.0 million in same quarter last year
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Net interest margin of 4.32%, compared to 4.16% in second quarter and 3.69% in third quarter last year
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Nonperforming assets (nonaccrual loans and repossessed assets) of 3.9% of total assets, compared to 4.0% in second quarter 2010 and 4.1% in third quarter 2009
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Total classified loans (including those on nonaccrual and watch loans) of $491 million at September 30, 2010, compared to $562 million at June 30, 2010 and $621 million at September 30, 2009
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Provision for credit losses of $23.0 million, compared to $23.1 million in second quarter and $50.8 million in third quarter last year
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Net loan charge-offs of $24.8 million, down from $25.8 million for the second quarter and $30.7 million in third quarter last year
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Net income of $2.0 million, including net securities/mark-to-market gains of $5.3 million and net loss on repossessed asset valuations/sales of $4.9 million
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Diluted net loss per common share of $0.01 compared to net loss of $0.02 for the second quarter of 2010 and $0.37 net loss for the third quarter 2009
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Tangible common equity of $449 million or 7.3% of tangible assets, up $44 million from $405 million or 6.8% of assets at June 30, 2010 due to proceeds from our equity offering 1
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Tier I Leverage capital of 9.9% and Total Risk-Based Capital ratio of 13.6%, both significantly above “Well Capitalized” thresholds
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______________________________
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 17
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·
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Completion of a debt offering contributing $72.8 million in liquidity at parent company
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Financial Performance
“The third quarter of 2010 was our fifth consecutive quarter of improvement in our earnings power as shown by our pre-tax, pre-provision income of $24.6 million. 1 Loan and deposit growth remained strong compared to peers and our interest margin expanded while operating expenses were held flat.” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. “In the third quarter, we successfully completed both an equity and a debt offering demonstrating continued investor confidence in our Company. Proceeds from these offerings bolstered our already strong capital position taking our consolidated Leverage Ratio to nearly 10% and further strengthened the ratios for each of our affiliates.”
Ken Vecchione, President and Chief Operating Officer, added, “We made additional progress in de-risking our balance sheet during the quarter as classified and criticized assets continued to decline in addition to reducing our construction loan exposure. Since the end of last year we have reported sequential improvement in several key performance metrics, including a higher net interest income, increased operating revenue, lower operating expense, and improved credit quality. An important hurdle in our return to sustained profitability is having our pre-tax, pre-provision income exceed our loan loss provision, which it did this quarter for the first time since 2008.”
Western Alliance Bancorporation reported net income of $2.0 million in the third quarter 2010, including a net loss from sales/valuation of repossessed assets of $4.9 million, a loss on discontinued operations net of tax of $0.6 million, net gains from securities/mark-to-market of $5.3 million and a net gain from sale of Premier Trust of $0.6 million.
The Company reported net loss per common share of $0.01 in the third quarter 2010. The loss included $0.06 loss from sales/valuations of repossessed assets, loss from discontinued affinity credit card operations held for sale net of tax of $0.01, and net gain from securities sales of $0.07.
Total loans increased $44 million to $4.17 billion at September 30, 2010 from $4.13 billion on June 30, 2010. This increase was driven by growth in commercial and industrial and commercial real estate loans; partially offset by reductions in construction and land loans. Geographically, loans outstanding at our Nevada affiliates decreased by $40 million and increased by $84 million at our Arizona and California affiliates during the third quarter 2010.
Total deposits increased $98 million to $5.33 billion at September 30, 2010 from $5.23 billion at June 30, 2010, with significant growth in non-interest bearing demand, interest bearing demand and money market accounts, partially offset by a decline in higher cost certificates of deposit including CDARS. Deposits increased $576 million from September 30, 2009.
Income Statement
Net interest income increased 3.5 percent to $59.5 million in the third quarter 2010 from $57.5 million in the second quarter 2010 and 21.4 percent compared to the third quarter 2009, propelled by both reductions in cost of funds and increases in interest income. The net interest margin in the third quarter 2010 was 4.32 percent compared to 4.16 percent in the second quarter 2010 and 3.69 percent in the third quarter of last year.
The provision for credit losses was $23.0 million for the third quarter 2010 compared to $23.1 million for the second quarter 2010 and $50.8 million for the third quarter 2009. Nonaccrual loans and repossessed assets were $241 million or 3.9 percent of total assets at September 30, 2010, compared with $239 million or 4 percent of total assets at June 30, 2010 and $239 million or 4.1 percent of total assets at September 30, 2009. Net loan charge-offs in the third quarter 2010 were $24.8 million or 2.41 percent of average loans (annualized), compared to net charge-offs of $25.8 million or 2.53 percent of average loans (annualized) for the second quarter 2010 and $30.7 million or 3.05 percent of average loans (annualized) for the third quarter 2009. Loans past due 90 days and still accruing totaled $5.7 million at September 30, 2010, down from $8.2 million at June 30, 2010 and up from $2.5 million at September 30, 2009. Loans past due 30-89 days totaled $20.4 million at quarter end, up from $20.3 million at June 30, 2010 and down from $44 million at September 30, 2009.
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 17
2
Operating non-interest income was $6.3 million for the third quarter 2010. This performance was a decrease from $7.5 million for the same period in 2009 and slight decrease from $6.5 million for the second quarter of 2010.1
Net revenue was $65.8 million for the third quarter 2010, an increase of 2.9 percent from $64 million for the second quarter of 2010 and 16.6 percent from net revenue of $56.4 million for the third quarter 2009.1
Operating non-interest expense was $41.3 million for the third quarter 2010, down 3.1 percent from operating non-interest expense of $42.6 million for the same period in 2009.1 For the second quarter 2010, operating non-interest expense was $41.3 million. The operating efficiency ratio was 62.4 percent for the third quarter 2010, compared to 64.4 percent for the prior quarter and 75.3 percent for the third quarter 2009.1 The Company had 907 full-time equivalent employees at September 30, 2010, compared to 961 at June 30, 2010 and 1,023 one year ago.
A key performance metric for the Company is its pre-tax, pre-provision operating earning power, which it defines as net revenue less its operating non-interest expense.1 For the third quarter 2010, the Company’s performance was $24.6 million, compared to $22.7 million in the second quarter 2010 and $13.8 million in the third quarter 2009.1
Balance Sheet
Gross loans totaled $4.17 billion at September 30, 2010, an increase of $44 million from June 30, 2010 and an increase of $206 million from $3.97 billion at September 30, 2009. At September 30, 2010 the allowance for credit losses was 2.59 percent of total loans down from 2.66 percent at June 30, 2010 and down from 2.62 percent at September 30, 2009.
Deposits totaled $5.33 billion at September 30, 2010, an increase of $98 million from $5.23 billion at June 30, 2010 and an increase of $576 million from $4.75 billion at September 30, 2009.
Non-interest bearing deposits increased by $91.4 million to $1.42 billion at September 30, 2010 from June 30, 2010 and increased $267 million from $1.15 billion at September 30, 2009. Non-interest bearing deposits comprised 26.7 percent of total deposits at September 30, 2010.
At September 30, 2010 the Company’s loans were 78.3 percent of deposits, compared to 83.5 percent one year earlier and 79.0 percent at June 30, 2010. Borrowings, including junior subordinated debt totaled $109.2 million at September 30, 2010, down $72.1 million from one year earlier, and up $72.9 million for the quarter as a result of the recent debt offering.
Stockholders’ equity increased to $619.8 million at September 30, 2010 from $575.9 million at June 30, 2010. At September 30, 2010 tangible common equity was 7.3 percent of tangible assets1 and total risk-based capital was 13.6 percent of risk-weighted assets.
Total assets increased 6 percent to $6.18 billion at September 30, 2010 from $5.83 billion at September 30, 2009 and increased 3.7 percent from $6.0 billion at June 30, 2010.
Operating Unit Highlights
Our Nevada banking operations, which are comprised of Bank of Nevada and First Independent Bank of Nevada, reported that loans declined $40 million during the third quarter and declined $174 million during the last 12 months to $2.32 billion at September 30, 2010. Deposits decreased $17 million since June 30, 2010 and increased $101 million over the last twelve months to $3.0 billion. Net loss for our Nevada banks was $5.8 million during the third quarter 2010, compared with a net loss of $9.6 million for the second quarter of 2010 and $23.8 million during the third quarter 2009.
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 17
3
Our California banking operations, which are comprised of Torrey Pines Bank and Alta Alliance Bank, reported that loans increased $29 million during the third quarter 2010 and increased $195 million during the last 12 months to $1.01 billion. Deposits increased $140 million and $143 million to $1.24 billion during the same periods, respectively. Net income for our California banks was $4.0 million during the third quarter 2010 compared with a net income of $2.6 million for the second quarter of 2010 and net loss of $0.6 million during the third quarter 2009.
Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported loan growth of $54 million during the third quarter 2010 and an increase of $184 million during the last 12 months to $891.2 million. Deposits increased $13 million in the third quarter and increased $367 million during the last 12 months to $1.23 billion. Net income for our Arizona bank was $3.2 million during the third quarter 2010 compared with net income of $2.7 million during the second quarter of 2010 and a net loss of $1.1 million during the third quarter 2009.
Attached to this press release is summarized financial information for the quarter and year to date ended September 30, 2010.
Subsequent Event
On October 20, 2010, the Company published notices of the filing of applications to merge its Alta Alliance Bank subsidiary into its Torrey Pines Bank subsidiary, and its First Independent Bank of Nevada subsidiary into its Alliance Bank of Arizona subsidiary. The Company believes that reducing the number of banking charters will mitigate its risk profile while improving its operating efficiency. Subject to regulatory approval, these mergers are expected to be completed by year end.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live audio webcast to discuss its third quarter 2010 financial results at 11.00 a.m. ET on Friday, October 22, 2010. Participants may access the call by dialing 1-866-843-0890 and using passcode: 6583041 or via live audio webcast using the website link: http://www.talkpoint.com/viewer/ starthere.asp?Pres=132697. 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 October 22 until 9 a.m. ET November 8th by dialing 1-877-344-7529 using the pass code 445061.
About Western Alliance Bancorporation
Western Alliance Bancorporation is the parent company of Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, and Shine Investment Advisory Services. These dynamic organizations provide a broad array of deposit and credit services to clients in Nevada, Arizona and California, and investment services in Colorado. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers' needs than larger institutions. Additional investor information can be accessed on the Investor Relations page of the company's website, www.westernalliancebancorp.com.
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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.
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Western Alliance Bancorporation and Subsidiaries
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Summary Consolidated Financial Data
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Unaudited
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At or for the Three Months
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For the Nine Months
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Ended September 30,
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Ended September 30,
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2010
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2009
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Change %
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2010
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2009
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Change %
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(in thousands, except per share data)
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Selected Balance Sheet Data:
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(dollars in millions)
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Total assets
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$ | 6,179.1 | $ | 5,831.3 | 6.0 | % | ||||||||||||||||||
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Loans, net of deferred fees
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4,173.5 | 3,968.0 | 5.2 | |||||||||||||||||||||
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Securities and money market investments
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929.7 | 727.8 | 27.7 | |||||||||||||||||||||
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Federal funds sold and other
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1.0 | 5.0 | (80.0 | ) | ||||||||||||||||||||
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Customer funds
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5,415.3 | 5,016.3 | 8.0 | |||||||||||||||||||||
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Borrowings
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72.9 | 79.4 | (8.2 | ) | ||||||||||||||||||||
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Junior subordinated and subordinated debt
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36.3 | 101.9 | (64.4 | ) | ||||||||||||||||||||
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Stockholders' equity
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619.8 | 603.0 | 2.8 | |||||||||||||||||||||
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Selected Income Statement Data:
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(dollars in thousands)
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Interest income
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$ | 70,705 | $ | 67,746 | 4.4 | % | $ | 209,439 | $ | 208,210 | 0.6 | % | ||||||||||||
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Interest expense
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11,237 | 18,776 | (40.2 | ) | 37,796 | 57,709 | (34.5 | ) | ||||||||||||||||
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Net interest income
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59,468 | 48,970 | 21.4 | 171,643 | 150,501 | 14.0 | ||||||||||||||||||
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Provision for loan losses
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22,965 | 50,750 | (54.7 | ) | 74,827 | 108,307 | (30.9 | ) | ||||||||||||||||
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Net interest income after provision for credit losses
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36,503 | (1,780 | ) | (2,150.7 | ) | 96,816 | 42,194 | 129.5 | ||||||||||||||||
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Non-interest income
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12,167 | 12,547 | (3.0 | ) | 47,556 | 166 | 28,548.2 | |||||||||||||||||
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Non-interest expense
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46,109 | 50,448 | (8.6 | ) | 140,213 | 191,657 | (26.8 | ) | ||||||||||||||||
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Income (loss) from continuing operations
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before income taxes
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2,561 | (39,681 | ) | (106.5 | ) | 4,159 | (149,297 | ) | (102.8 | ) | ||||||||||||||
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Income tax benefit
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(79 | ) | (16,724 | ) | (99.5 | ) | (1,830 | ) | (28,195 | ) | (93.5 | ) | ||||||||||||
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Income (loss) from continuing operations
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2,640 | (22,957 | ) | (111.5 | ) | 5,989 | (121,102 | ) | (104.9 | ) % | ||||||||||||||
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Loss on discontinued operations, net
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(631 | ) | (958 | ) | (34.1 | ) | (2,368 | ) | (3,392 | ) | ||||||||||||||
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Net income (loss)
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$ | 2,009 | $ | (23,915 | ) | (108.4 | ) % | $ | 3,621 | $ | (124,494 | ) | ||||||||||||
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Intangible asset amortization, net of tax
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$ | 586 | $ | 614 | (4.7 | ) % | $ | 1,764 | $ | 1,843 | (4.3 | ) % | ||||||||||||
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Diluted net loss from continuing operations
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$ | 0.00 | $ | (0.35 | ) | $ | (0.02 | ) | $ | (2.36 | ) | |||||||||||||
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Diluted net loss from discontinued operations, net of tax
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$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.06 | ) | ||||||||||||
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Diluted net loss per common share
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$ | (0.01 | ) | $ | (0.37 | ) | (97.3 | ) % | $ | (0.05 | ) | $ | (2.42 | ) | (97.9 | ) % | ||||||||
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Common Share Data:
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Diluted net income (loss) per common share
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$ | (0.01 | ) | $ | (0.37 | ) | (97.3 | ) % | $ | (0.05 | ) | $ | (2.42 | ) | (97.9 | ) % | ||||||||
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Book value per common share
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$ | 6.01 | $ | 6.56 | (8.4 | ) % | ||||||||||||||||||
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Tangible book value per share, net of tax (1)
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$ | 5.58 | $ | 5.94 | (6.1 | ) % | ||||||||||||||||||
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Average shares outstanding (in thousands):
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Basic
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75,554 | 71,697 | 5.4 | 73,240 | 54,471 | 34.5 | ||||||||||||||||||
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Diluted
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75,960 | 71,697 | 5.9 | 73,634 | 54,471 | 35.2 | ||||||||||||||||||
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Common shares outstanding
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81,503 | 72,489 | 12.4 | |||||||||||||||||||||
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(1) See Reconciliation of Non-GAAP Financial Measures
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Western Alliance Bancorporation and Subsidiaries
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Summary Consolidated Financial Data (continued)
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Unaudited
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At or for the Three Months
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For the Nine Months
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Ended September 30,
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Ended September 30,
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2010
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2009
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Change %
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2010
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2009
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Change %
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(in thousands, except per share data)
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Selected Performance Ratios:
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Return on average assets (1)
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0.13 | % | (1.63 | ) % | (108.0 | ) % | 0.13 | % | (3.03 | ) % | (104.3 | ) % | ||||||||||||
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Return on average stockholders' equity (1)
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1.31 | (14.78 | ) | (108.9 | ) | 1.35 | (30.16 | ) | (104.5 | ) | ||||||||||||||
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Net interest margin (1)
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4.32 | 3.69 | 17.1 | 4.22 | 4.07 | 3.7 | ||||||||||||||||||
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Net interest spread
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4.03 | 3.26 | 23.6 | 3.90 | 3.63 | 7.4 | ||||||||||||||||||
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Efficiency ratio - tax equivalent basis (2)
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62.39 | 75.29 | (17.1 | ) | ||||||||||||||||||||
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Loan to deposit ratio
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78.32 | 83.50 | (6.2 | ) | ||||||||||||||||||||
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Capital Ratios:
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Tangible equity (2)
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9.4 | % | 9.5 | % | (0.7 | ) % | ||||||||||||||||||
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Tangible common equity (2)
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7.3 | 7.3 | 0.2 | |||||||||||||||||||||
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Tier one common equity (2)
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9.0 | 8.4 | 6.0 | |||||||||||||||||||||
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Tier 1 Leverage ratio
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9.9 | 9.6 | 3.1 | |||||||||||||||||||||
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Tier 1 Risk Based Capital
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12.4 | 12.1 | 2.5 | |||||||||||||||||||||
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Total Risk Based Capital
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13.6 | 14.7 | (7.5 | ) | ||||||||||||||||||||
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Asset Quality Ratios:
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Net charge-offs to average loans outstanding (1)
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2.41 | % | 3.05 | % | (21.0 | ) % | 2.47 | % | 2.60 | % | (5.0 | ) % | ||||||||||||
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Nonaccrual loans to gross loans
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3.14 | 4.19 | (25.1 | ) | ||||||||||||||||||||
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Nonaccrual loans and repossessed assets to total assets
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3.90 | 4.10 | (4.9 | ) | ||||||||||||||||||||
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Loans past due 90 days and still accruing to total loans
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0.14 | 0.06 | 133.3 | |||||||||||||||||||||
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Allowance for credit losses to loans
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2.59 | 2.62 | (1.1 | ) | ||||||||||||||||||||
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Allowance for credit losses to nonaccrual loans
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82.63 | 62.65 | 31.9 | |||||||||||||||||||||
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(1) Annualized for the three and nine month periods ended September 30, 2010 and 2009.
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(2) See Reconciliation of Non-GAAP Financial Measures
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Western Alliance Bancorporation and Subsidiaries
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Condensed Consolidated Statements of Operations
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Unaudited
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2010
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2009
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2010
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2009
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Interest income:
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(dollars in thousands)
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Loans
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$ | 64,273 | $ | 61,380 | $ | 190,641 | $ | 187,901 | ||||||||
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Investment securities
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6,047 | 5,891 | 17,679 | 19,605 | ||||||||||||
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Federal funds sold and other
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385 | 475 | 1,119 | 704 | ||||||||||||
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Total interest income
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70,705 | 67,746 | 209,439 | 208,210 | ||||||||||||
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Interest expense:
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Deposits
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9,531 | 16,067 | 32,677 | 48,130 | ||||||||||||
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Customer repurchase agreements
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74 | 867 | 471 | 3,163 | ||||||||||||
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Borrowings
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896 | 585 | 1,714 | 2,697 | ||||||||||||
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Junior subordinated and subordinated debt
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736 | 1,257 | 2,934 | 3,719 | ||||||||||||
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Total interest expense
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11,237 | 18,776 | 37,796 | 57,709 | ||||||||||||
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Net interest income
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59,468 | 48,970 | 171,643 | 150,501 | ||||||||||||
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Provision for credit losses
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22,965 | 50,750 | 74,827 | 108,307 | ||||||||||||
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Net interest income after provision for credit losses
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36,503 | (1,780 | ) | 96,816 | 42,194 | |||||||||||
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Non-interest income
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Unrealized gains (losses) on assets
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and liabilities measured at fair value, net
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(210 | ) | 1,987 | 6,341 | 5,609 | |||||||||||
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Securities impairment charges
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- | (1,044 | ) | (1,174 | ) | (42,036 | ) | |||||||||
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Gains on sales of investment securities, net
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5,460 | 4,146 | 19,757 | 15,933 | ||||||||||||
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Gain on extinguishment of debt
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- | - | 3,000 | - | ||||||||||||
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Trust and investment advisory services
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1,001 | 2,369 | 3,395 | 6,967 | ||||||||||||
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Service charges
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2,276 | 2,212 | 6,791 | 5,874 | ||||||||||||
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Operating lease income
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998 | 1,079 | 2,928 | 2,976 | ||||||||||||
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Bank owned life insurance
|
773 | 574 | 2,271 | 1,523 | ||||||||||||
|
Other
|
1,869 | 1,224 | 4,247 | 3,320 | ||||||||||||
| 12,167 | 12,547 | 47,556 | 166 | |||||||||||||
|
Non-interest expenses:
|
||||||||||||||||
|
Salaries and employee benefits
|
21,860 | 23,694 | 65,461 | 70,697 | ||||||||||||
|
Occupancy
|
4,890 | 5,346 | 14,505 | 15,762 | ||||||||||||
|
Insurance
|
4,115 | 2,326 | 11,366 | 9,034 | ||||||||||||
|
Net loss (gain) on sales and valuations of repossessed assets
|
4,855 | 7,283 | 15,836 | 16,193 | ||||||||||||
|
Repossessed asset and loan expenses
|
1,918 | 1,430 | 5,847 | 4,585 | ||||||||||||
|
Legal, professional and director's fees
|
1,546 | 1,810 | 5,553 | 4,995 | ||||||||||||
|
Customer service
|
987 | 1,001 | 3,205 | 3,145 | ||||||||||||
|
Intangible amortization
|
901 | 945 | 2,714 | 2,835 | ||||||||||||
|
Marketing
|
878 | 543 | 3,079 | 3,122 | ||||||||||||
|
Data Processing
|
842 | 951 | 2,427 | 3,303 | ||||||||||||
|
Operating lease depreciation
|
627 | 722 | 1,963 | 2,479 | ||||||||||||
|
Goodwill impairment
|
- | 576 | - | 45,576 | ||||||||||||
|
Other
|
2,690 | 3,821 | 8,257 | 9,931 | ||||||||||||
| 46,109 | 50,448 | 140,213 | 191,657 | |||||||||||||
|
Income (loss) from continuning operations before
|
||||||||||||||||
|
income taxes
|
2,561 | (39,681 | ) | 4,159 | (149,297 | ) | ||||||||||
|
Income tax benefit
|
(79 | ) | (16,724 | ) | (1,830 | ) | (28,195 | ) | ||||||||
|
Income (loss) from continuing operations
|
2,640 | (22,957 | ) | 5,989 | (121,102 | ) | ||||||||||
|
Loss from discontined operations net of tax benefit
|
(631 | ) | (958 | ) | (2,368 | ) | (3,392 | ) | ||||||||
|
Net income (loss)
|
2,009 | (23,915 | ) | 3,621 | (124,494 | ) | ||||||||||
|
Preferred stock dividends
|
1,750 | 1,750 | 5,250 | 5,250 | ||||||||||||
|
Accretion on preferred stock discount
|
716 | 689 | 2,149 | 2,045 | ||||||||||||
|
Net loss available to common stockholders
|
$ | (457 | ) | $ | (26,354 | ) | $ | (3,778 | ) | $ | (131,789 | ) | ||||
|
Loss per share
|
$ | (0.01 | ) | $ | (0.37 | ) | $ | (0.05 | ) | $ | (2.42 | ) | ||||
8
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||
|
Five Quarter Condensed Consolidated Statements of Operations
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||||||||
|
2010
|
2010
|
2010
|
2009
|
2009
|
||||||||||||||||
|
Interest income:
|
(in thousands, except per share data)
|
|||||||||||||||||||
|
Loans
|
$ | 64,273 | $ | 64,201 | $ | 62,167 | $ | 60,532 | $ | 61,380 | ||||||||||
|
Investment securities
|
6,047 | 5,327 | 6,304 | 6,621 | 5,891 | |||||||||||||||
|
Federal funds sold and other
|
385 | 472 | 263 | 660 | 475 | |||||||||||||||
|
Total interest income
|
70,705 | 70,000 | 68,734 | 67,813 | 67,746 | |||||||||||||||
|
Interest expense:
|
||||||||||||||||||||
|
Deposits
|
9,531 | 11,067 | 12,079 | 13,785 | 16,067 | |||||||||||||||
|
Borrowings
|
970 | 483 | 733 | 992 | 1,452 | |||||||||||||||
|
Junior subordinated and subordinated debt
|
736 | 994 | 1,204 | 1,248 | 1,257 | |||||||||||||||
|
Total interest expense
|
11,237 | 12,544 | 14,016 | 16,025 | 18,776 | |||||||||||||||
|
Net interest income
|
59,468 | 57,456 | 54,718 | 51,788 | 48,970 | |||||||||||||||
|
Provision for credit losses
|
22,965 | 23,115 | 28,747 | 40,792 | 50,750 | |||||||||||||||
|
Net interest income after provision for credit losses
|
36,503 | 34,341 | 25,971 | 10,996 | (1,780 | ) | ||||||||||||||
|
Non-interest income
|
||||||||||||||||||||
|
Mark-to-market (losses) gains, net
|
(210 | ) | 6,250 | 301 | (1,874 | ) | 1,987 | |||||||||||||
|
Gains on sales of investment securities, net
|
5,460 | 6,079 | 8,218 | 167 | 4,146 | |||||||||||||||
|
Gain on extinguishment of debt
|
- | 3,000 | - | - | - | |||||||||||||||
|
Securities impairment charges
|
- | (1,071 | ) | (103 | ) | (1,748 | ) | (1,044 | ) | |||||||||||
|
Trust and investment advisory services
|
1,001 | 1,181 | 1,213 | 2,320 | 2,369 | |||||||||||||||
|
Service charges
|
2,276 | 2,319 | 2,197 | 2,298 | 2,212 | |||||||||||||||
|
Operating lease income
|
998 | 967 | 964 | 1,091 | 1,079 | |||||||||||||||
|
Bank owned life insurance
|
773 | 780 | 719 | 669 | 574 | |||||||||||||||
|
Other
|
1,869 | 1,255 | 1,120 | 1,346 | 1,224 | |||||||||||||||
| 12,167 | 20,760 | 14,629 | 4,269 | 12,547 | ||||||||||||||||
|
Non-interest expenses:
|
||||||||||||||||||||
|
Salaries and employee benefits
|
21,860 | 22,161 | 21,440 | 20,807 | 23,694 | |||||||||||||||
|
Occupancy
|
4,890 | 4,828 | 4,787 | 5,040 | 5,346 | |||||||||||||||
|
Insurance
|
4,115 | 3,759 | 3,492 | 2,991 | 2,326 | |||||||||||||||
|
Repossessed asset and loan expenses
|
1,918 | 1,564 | 2,364 | 1,779 | 1,430 | |||||||||||||||
|
Net (gain) loss on sales and valuations of repossessed assets
|
4,855 | 11,994 | (1,014 | ) | 5,081 | 7,283 | ||||||||||||||
|
Legal, professional and director's fees
|
1,546 | 2,139 | 1,868 | 3,978 | 1,810 | |||||||||||||||
|
Marketing
|
878 | 1,045 | 1,156 | 1,185 | 543 | |||||||||||||||
|
Intangible amortization
|
901 | 907 | 907 | 945 | 945 | |||||||||||||||
|
Customer service
|
987 | 1,154 | 1,065 | 1,145 | 1,001 | |||||||||||||||
|
Data Processing
|
842 | 793 | 791 | 971 | 951 | |||||||||||||||
|
Operating lease depreciation
|
627 | 647 | 689 | 750 | 722 | |||||||||||||||
|
Goodwill impairment
|
- | - | - | 4,095 | 576 | |||||||||||||||
|
Other
|
2,690 | 2,271 | 3,298 | 2,553 | 3,821 | |||||||||||||||
| 46,109 | 53,262 | 40,843 | 51,320 | 50,448 | ||||||||||||||||
|
Income (loss) from continuing operations before
|
||||||||||||||||||||
|
income taxes
|
2,561 | 1,839 | (243 | ) | (36,055 | ) | (39,681 | ) | ||||||||||||
|
Income tax benefit
|
(79 | ) | (190 | ) | (1,562 | ) | (10,258 | ) | (16,724 | ) | ||||||||||
|
Income (loss) from continuing operations
|
$ | 2,640 | $ | 2,029 | $ | 1,319 | $ | (25,797 | ) | $ | (22,957 | ) | ||||||||
|
Loss from discontinued operations, net of tax
|
(631 | ) | (802 | ) | (935 | ) | (1,115 | ) | (958 | ) | ||||||||||
|
Net income (loss)
|
$ | 2,009 | $ | 1,227 | $ | 384 | $ | (26,912 | ) | $ | (23,915 | ) | ||||||||
|
Preferred stock dividends
|
1,750 | 1,750 | 1,750 | 1,750 | 1,750 | |||||||||||||||
|
Accretion on preferred stock
|
716 | 716 | 716 | 697 | 689 | |||||||||||||||
|
Net loss available to common stockholders
|
$ | (457 | ) | $ | (1,239 | ) | $ | (2,082 | ) | $ | (29,359 | ) | $ | (26,354 | ) | |||||
|
Loss per share
|
$ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.41 | ) | $ | (0.37 | ) | |||||
9
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||
|
Five Quarter Condensed Consolidated Balance Sheets
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||||||||
|
2010
|
2010
|
2010
|
2009
|
2009
|
||||||||||||||||
|
Assets:
|
(in millions)
|
|||||||||||||||||||
|
Cash and due from banks
|
$ | 615.0 | $ | 560.6 | $ | 827.6 | $ | 393.3 | $ | 752.9 | ||||||||||
|
Federal funds sold and other
|
1.0 | - | 2.4 | 3.5 | 5.0 | |||||||||||||||
|
Cash and cash equivalents
|
616.0 | 560.6 | 830.0 | 396.8 | 757.9 | |||||||||||||||
|
Securities and money market investments
|
929.7 | 848.6 | 781.1 | 864.8 | 727.8 | |||||||||||||||
|
Loans:
|
||||||||||||||||||||
|
Commercial
|
876.8 | 832.8 | 757.9 | 802.2 | 687.7 | |||||||||||||||
|
Commercial real estate - owner occupied
|
1,227.7 | 1,234.1 | 1,209.3 | 1,091.4 | 1,095.3 | |||||||||||||||
|
Construction and land development
|
488.3 | 532.4 | 556.9 | 623.2 | 685.2 | |||||||||||||||
|
Commercial real estate - non-owner occupied
|
981.4 | 926.0 | 902.9 | 933.2 | 830.4 | |||||||||||||||
|
Residential real estate
|
533.6 | 536.1 | 560.2 | 568.3 | 600.4 | |||||||||||||||
|
Consumer
|
71.4 | 74.6 | 77.6 | 80.3 | 77.3 | |||||||||||||||
|
Deferred fees, net
|
(5.7 | ) | (6.0 | ) | (5.7 | ) | (19.0 | ) | (8.3 | ) | ||||||||||
| 4,173.5 | 4,130.0 | 4,059.1 | 4,079.6 | 3,968.0 | ||||||||||||||||
|
Allowance for credit losses
|
(108.2 | ) | (110.0 | ) | (112.7 | ) | (108.6 | ) | (104.2 | ) | ||||||||||
|
Loans, net
|
4,065.3 | 4,020.0 | 3,946.4 | 3,971.0 | 3,863.8 | |||||||||||||||
|
Premises and equipment, net
|
116.5 | 118.7 | 121.2 | 125.9 | 128.6 | |||||||||||||||
|
Other repossessed assets
|
110.1 | 104.4 | 105.6 | 83.3 | 72.8 | |||||||||||||||
|
Bank owned life insurance
|
94.8 | 94.0 | 93.2 | 92.5 | 91.8 | |||||||||||||||
|
Goodwill and other intangibles
|
40.2 | 41.3 | 42.2 | 43.1 | 51.6 | |||||||||||||||
|
Other assets
|
206.5 | 171.9 | 176.5 | 175.9 | 137.0 | |||||||||||||||
|
Total assets
|
$ | 6,179.1 | $ | 5,959.5 | $ | 6,096.2 | $ | 5,753.3 | $ | 5,831.3 | ||||||||||
|
Liabilities and Stockholders' Equity:
|
||||||||||||||||||||
|
Liabilities:
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Non-interest bearing demand deposits
|
$ | 1,421.7 | $ | 1,330.4 | $ | 1,348.7 | $ | 1,157.0 | $ | 1,154.8 | ||||||||||
|
Interest bearing
|
||||||||||||||||||||
|
Demand
|
645.4 | 611.4 | 510.2 | 362.7 | 339.4 | |||||||||||||||
|
Savings and money market
|
1,892.2 | 1,845.9 | 1,798.5 | 1,752.5 | 1,802.5 | |||||||||||||||
|
Time certificates
|
1,369.2 | 1,442.5 | 1,532.7 | 1,449.9 | 1,455.5 | |||||||||||||||
|
Total deposits
|
5,328.5 | 5,230.2 | 5,190.1 | 4,722.1 | 4,752.2 | |||||||||||||||
|
Customer repurchase agreements
|
86.8 | 87.1 | 169.1 | 223.3 | 264.1 | |||||||||||||||
|
Total customer funds
|
5,415.3 | 5,317.3 | 5,359.2 | 4,945.4 | 5,016.3 | |||||||||||||||
|
Borrowings
|
72.9 | - | 20.0 | 29.4 | 79.4 | |||||||||||||||
|
Junior subordinated and subordinated debt
|
36.3 | 36.3 | 102.3 | 102.4 | 101.9 | |||||||||||||||
|
Accrued interest payable and other liabilities
|
34.8 | 30.0 | 39.0 | 100.4 | 30.7 | |||||||||||||||
|
Total liabilities
|
5,559.3 | 5,383.6 | 5,520.5 | 5,177.6 | 5,228.3 | |||||||||||||||
|
Stockholders' Equity
|
||||||||||||||||||||
|
Common stock and additional paid-in capital
|
737.8 | 688.2 | 686.0 | 684.1 | 682.1 | |||||||||||||||
|
Preferred Stock
|
130.1 | 129.4 | 128.7 | 127.9 | 127.3 | |||||||||||||||
|
Retained earnings (deficit)
|
(245.5 | ) | (245.0 | ) | (243.7 | ) | (241.7 | ) | (212.4 | ) | ||||||||||
|
Accumulated other comprehensive income (loss)
|
(2.6 | ) | 3.3 | 4.7 | 5.4 | 6.0 | ||||||||||||||
|
Total stockholders' equity
|
619.8 | 575.9 | 575.7 | 575.7 | 603.0 | |||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 6,179.1 | $ | 5,959.5 | $ | 6,096.2 | $ | 5,753.3 | $ | 5,831.3 | ||||||||||
10
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||
|
Changes in the Allowance For Credit Losses
|
||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
Sept. 30,
|
June 30,
|
March 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||||||||
|
2010
|
2010
|
2010
|
2009
|
2009
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
|
Balance, beginning of period
|
$ | 110,013 | $ | 112,724 | $ | 108,623 | $ | 104,181 | $ | 84,143 | ||||||||||
|
Provision for credit losses
|
22,965 | 23,115 | 28,747 | 40,792 | 50,750 | |||||||||||||||
|
Recoveries of loans previously charged-off:
|
||||||||||||||||||||
|
Construction and land development
|
214 | 1,801 | 409 | 888 | 608 | |||||||||||||||
|
Commercial real estate
|
160 | 808 | 22 | 91 | 139 | |||||||||||||||
|
Residential real estate
|
1,209 | 295 | 231 | 340 | 11 | |||||||||||||||
|
Commercial and industrial
|
389 | 573 | 1,238 | 216 | 442 | |||||||||||||||
|
Consumer
|
47 | 14 | 67 | 42 | 6 | |||||||||||||||
|
Total recoveries
|
2,019 | 3,491 | 1,967 | 1,577 | 1,206 | |||||||||||||||
|
Loans charged-off:
|
||||||||||||||||||||
|
Construction and land development
|
3,843 | 7,921 | 8,638 | 9,859 | 13,717 | |||||||||||||||
|
Commercial real estate
|
12,813 | 7,827 | 5,884 | 6,204 | 3,125 | |||||||||||||||
|
Residential real estate
|
3,695 | 7,835 | 5,855 | 5,909 | 5,619 | |||||||||||||||
|
Commercial and industrial
|
5,036 | 4,602 | 4,757 | 14,924 | 8,329 | |||||||||||||||
|
Consumer
|
1,440 | 1,132 | 1,479 | 1,031 | 1,128 | |||||||||||||||
|
Total loans charged-off
|
26,827 | 29,317 | 26,613 | 37,927 | 31,918 | |||||||||||||||
|
Net loans charged-off
|
24,808 | 25,826 | 24,646 | 36,350 | 30,712 | |||||||||||||||
|
Balance, end of period
|
$ | 108,170 | $ | 110,013 | $ | 112,724 | $ | 108,623 | $ | 104,181 | ||||||||||
|
Net charge-offs (annualized) to average loans outstanding
|
2.41 | % | 2.53 | % | 2.43 | % | 3.68 | % | 3.05 | % | ||||||||||
|
Allowance for credit losses to gross loans
|
2.59 | 2.66 | 2.78 | 2.66 | 2.62 | |||||||||||||||
|
Nonaccrual loans
|
$ | 130,905 | $ | 134,264 | $ | 148,760 | $ | 153,702 | $ | 166,286 | ||||||||||
|
Repossessed assets
|
110,096 | 104,365 | 105,637 | 83,347 | 72,807 | |||||||||||||||
|
Loans past due 90 days, still accruing
|
5,667 | 8,233 | 8,437 | 5,538 | 2,538 | |||||||||||||||
|
Loans past due 30 to 89 days, still accruing
|
20,432 | 20,343 | 38,611 | 50,376 | 43,980 | |||||||||||||||
|
Classified loans
|
285,972 | 304,270 | 336,624 | 374,847 | 344,513 | |||||||||||||||
|
Watch loans
|
205,114 | 257,715 | 266,734 | 325,721 | 276,665 | |||||||||||||||
11
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||||||
|
Analysis of Average Balances, Yields and Rates
|
||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
|
2010
|
2009
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
|||||||||||||||||||
| Interest earning assets |
($ in
millions)
|
($ in
thousands)
|
($ in
millions)
|
($ in
thousands)
|
||||||||||||||||||||
|
Investment securities (1)
|
$ | 903.3 | $ | 6,075 | 2.80 | % | $ | 600.8 | $ | 5,781 | 3.91 | % | ||||||||||||
|
Federal funds sold and other
|
11.2 | 29 | 1.03 | % | 35.6 | 141 | 1.57 | % | ||||||||||||||||
|
Loans (1)
|
4,115.9 | 64,273 | 6.20 | % | 4,027.0 | 61,380 | 6.05 | % | ||||||||||||||||
|
Short term investments
|
421.2 | 299 | 0.28 | % | 570.3 | 334 | 0.23 | % | ||||||||||||||||
|
Investment in restricted stock
|
39.8 | 29 | 0.29 | % | 41.1 | 110 | 1.06 | % | ||||||||||||||||
|
Total interest earning assets
|
5,491.4 | 70,705 | 5.13 | % | 5,274.8 | 67,746 | 5.11 | % | ||||||||||||||||
|
Non-interest earning assets
|
||||||||||||||||||||||||
|
Cash and due from banks
|
121.3 | 220.0 | ||||||||||||||||||||||
|
Allowance for credit losses
|
(111.9 | ) | (89.5 | ) | ||||||||||||||||||||
|
Bank owned life insurance
|
94.3 | 91.4 | ||||||||||||||||||||||
|
Other assets
|
402.1 | 336.9 | ||||||||||||||||||||||
|
Total assets
|
$ | 5,997.2 | $ | 5,833.6 | ||||||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
Interest-bearing transaction accounts
|
$ | 659.3 | $ | 708 | 0.43 | % | $ | 326.9 | $ | 928 | 1.13 | % | ||||||||||||
|
Savings and money market
|
1,890.0 | 4,032 | 0.85 | % | 1,777.4 | 6,700 | 1.50 | % | ||||||||||||||||
|
Time certificates of deposit
|
1,341.6 | 4,791 | 1.42 | % | 1,382.9 | 8,439 | 2.42 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
3,890.9 | 9,531 | 0.97 | % | 3,487.2 | 16,067 | 1.83 | % | ||||||||||||||||
|
Borrowings
|
118.8 | 970 | 3.24 | % | 428.4 | 1,452 | 1.34 | % | ||||||||||||||||
|
Junior subordinated and subordinated debt
|
36.3 | 736 | 8.04 | % | 102.3 | 1,257 | 4.87 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
4,046.0 | 11,237 | 1.10 | % | 4,017.9 | 18,776 | 1.85 | % | ||||||||||||||||
|
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
|
Noninterest-bearing demand deposits
|
1,317.2 | 1,141.3 | ||||||||||||||||||||||
|
Other liabilities
|
27.6 | 32.4 | ||||||||||||||||||||||
|
Stockholders’ equity
|
606.4 | 642.0 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 5,997.2 | $ | 5,833.6 | ||||||||||||||||||||
|
Net interest income and margin
|
$ | 59,468 | 4.32 | % | $ | 48,970 | 3.69 | % | ||||||||||||||||
|
Net interest spread
|
4.03 | % | 3.26 | % | ||||||||||||||||||||
|
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $307 and $141 for the third quarter ended 2010 and 2009, respectively.
|
||||||||||||||||||||||||
|
(2) Net interest income and margin for the quarter ended June 30, 2010 was 4.16% as furnished in the second quarter report.
|
||||||||||||||||||||||||
12
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||||||
|
Analysis of Average Balances, Yields and Rates
|
||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||
|
Three Months Ended September 30,
|
||||||||||||||||||||||||
|
2010
|
2009
|
|||||||||||||||||||||||
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
Average
Balance
|
Interest
|
Average
Yield/
Cost
|
|||||||||||||||||||
|
Interest earning assets
|
($ in millions)
|
($ in thousands)
|
|
($ in millions)
|
($ in thousands)
|
|||||||||||||||||||
|
Investment securities (1)
|
$ | 903.3 | $ | 6,075 | 2.80 | % | $ | 600.8 | $ | 5,781 | 3.91 | % | ||||||||||||
|
Federal funds sold and other
|
11.2 | 29 | 1.03 | % | 35.6 | 141 | 1.57 | % | ||||||||||||||||
|
Loans (1)
|
4,115.9 | 64,273 | 6.20 | % | 4,027.0 | 61,380 | 6.05 | % | ||||||||||||||||
|
Short term investments
|
421.2 | 299 | 0.28 | % | 570.3 | 334 | 0.23 | % | ||||||||||||||||
|
Investment in restricted stock
|
39.8 | 29 | 0.29 | % | 41.1 | 110 | 1.06 | % | ||||||||||||||||
|
Total interest earning assets
|
5,491.4 | 70,705 | 5.13 | % | 5,274.8 | 67,746 | 5.11 | % | ||||||||||||||||
|
Non-interest earning assets
|
||||||||||||||||||||||||
|
Cash and due from banks
|
121.3 | 220.0 | ||||||||||||||||||||||
|
Allowance for credit losses
|
(111.9 | ) | (89.5 | ) | ||||||||||||||||||||
|
Bank owned life insurance
|
94.3 | 91.4 | ||||||||||||||||||||||
|
Other assets
|
402.1 | 336.9 | ||||||||||||||||||||||
|
Total assets
|
$ | 5,997.2 | $ | 5,833.6 | ||||||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
Interest-bearing transaction accounts
|
$ | 659.3 | $ | 708 | 0.43 | % | $ | 326.9 | $ | 928 | 1.13 | % | ||||||||||||
|
Savings and money market
|
1,890.0 | 4,032 | 0.85 | % | 1,777.4 | 6,700 | 1.50 | % | ||||||||||||||||
|
Time certificates of deposit
|
1,341.6 | 4,791 | 1.42 | % | 1,382.9 | 8,439 | 2.42 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
3,890.9 | 9,531 | 0.97 | % | 3,487.2 | 16,067 | 1.83 | % | ||||||||||||||||
|
Borrowings
|
118.8 | 970 | 3.24 | % | 428.4 | 1,452 | 1.34 | % | ||||||||||||||||
|
Junior subordinated and subordinated debt
|
36.3 | 736 | 8.04 | % | 102.3 | 1,257 | 4.87 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
4,046.0 | 11,237 | 1.10 | % | 4,017.9 | 18,776 | 1.85 | % | ||||||||||||||||
|
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
|
Noninterest-bearing demand deposits
|
1,317.2 | 1,141.3 | ||||||||||||||||||||||
|
Other liabilities
|
27.6 | 32.4 | ||||||||||||||||||||||
|
Stockholders’ equity
|
606.4 | 642.0 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 5,997.2 | $ | 5,833.6 | ||||||||||||||||||||
|
Net interest income and margin
|
$ | 59,468 | 4.32 | % | $ | 48,970 | 3.69 | % | ||||||||||||||||
|
Net interest spread
|
4.03 | % | 3.26 | % | ||||||||||||||||||||
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $307 and $141 for the third quarter ended 2010 and 2009, respectively.
(2) Net interest income and margin for the quarter ended June 30, 2010 was 4.16% as furnished in the second quarter report.
13
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||||||
|
Analysis of Average Balances, Yields and Rates
|
||||||||||||||||||||||||
|
Unaudited
|
||||||||||||||||||||||||
|
Nine Months Ended September 30,
|
||||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||
|
Average
Balance
|
Interest |
Average
Yield/ Cost
|
Average
Balance
|
Interest
|
Average
Yield/ Cost
|
|||||||||||||||||||
| Interest earning Assets |
($ in millions)
|
($ in thousands)
|
($ in millions)
|
($ in thousands)
|
||||||||||||||||||||
|
Investment securities (1)
|
$ | 845.2 | $ | 17,679 | 2.91 | % | $ | 586.6 | $ | 19,294 | 4.59 | % | ||||||||||||
|
Federal funds sold & other
|
22.2 | 151 | 0.91 | % | 22.8 | 370 | 2.17 | % | ||||||||||||||||
|
Loans (1)
|
4,083.4 | 190,641 | 6.24 | % | 4,066.1 | 187,901 | 6.18 | % | ||||||||||||||||
|
Short term investments
|
473.1 | 862 | 0.24 | % | 252.2 | 519 | 0.28 | % | ||||||||||||||||
|
Investment in restricted stock
|
40.7 | 106 | 0.35 | % | 41.0 | 126 | 0.41 | % | ||||||||||||||||
|
Total interest earnings assets
|
5,464.6 | 209,439 | 5.14 | % | 4,968.7 | 208,210 | 5.62 | % | ||||||||||||||||
|
Non-interest earning assets
|
||||||||||||||||||||||||
|
Cash and due from banks
|
109.7 | 175.0 | ||||||||||||||||||||||
|
Allowance for credit losses
|
(115.0 | ) | (81.5 | ) | ||||||||||||||||||||
|
Bank owned life insurance
|
93.5 | 91.1 | ||||||||||||||||||||||
|
Other assets
|
401.0 | 339.9 | ||||||||||||||||||||||
|
Total assets
|
$ | 5,953.8 | $ | 5,493.2 | ||||||||||||||||||||
|
Interest-bearing liabilities
|
||||||||||||||||||||||||
|
Interest-bearing deposits:
|
||||||||||||||||||||||||
|
Interest bearing transaction accounts
|
$ | 563.7 | $ | 2,223 | 0.53 | % | $ | 288.3 | $ | 2,463 | 1.14 | % | ||||||||||||
|
Savings and money market
|
1,837.7 | 12,894 | 0.94 | % | 1,622.3 | 20,961 | 1.73 | % | ||||||||||||||||
|
Time certificates of deposits
|
1,447.0 | 17,560 | 1.62 | % | 1,238.4 | 24,706 | 2.67 | % | ||||||||||||||||
|
Total interest-bearing deposits
|
3,848.4 | 32,677 | 1.14 | % | 3,149.0 | 48,130 | 2.04 | % | ||||||||||||||||
|
Borrowings
|
157.8 | 2,185 | 1.85 | % | 622.2 | 5,860 | 1.26 | % | ||||||||||||||||
|
Junior subordinated and subordinated debt
|
71.1 | 2,934 | 5.52 | % | 104.1 | 3,719 | 4.78 | % | ||||||||||||||||
|
Total interest-bearing liabilities
|
$ | 4,077.3 | 37,796 | 1.24 | % | $ | 3,875.3 | 57,709 | 1.99 | % | ||||||||||||||
|
Noninterest-bearing liabilities
|
||||||||||||||||||||||||
|
Noninterest-bearing demand deposits
|
1,249.4 | 1,037.2 | ||||||||||||||||||||||
|
Other liabilities
|
34.4 | 28.8 | ||||||||||||||||||||||
|
Stockholders’ equity
|
592.7 | 551.9 | ||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 5,953.8 | $ | 5,493.2 | ||||||||||||||||||||
|
Net interest income and margin
|
$ | 171,643 | 4.22 | % | $ | 150,501 | 4.07 | % | ||||||||||||||||
|
Net interest spread
|
3.90 | % | 3.63 | % | ||||||||||||||||||||
|
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $700 and $830 for the nine months ended September 30, 2010 and 2009, respectively.
|
||||||||||||||||||||||||
14
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||||||||||
|
Operating Segment Results
|
Inter-
|
|||||||||||||||||||||||||||
|
Unaudited
|
segment
|
Consoli-
|
||||||||||||||||||||||||||
|
Asset
|
Elimi-
|
dated
|
||||||||||||||||||||||||||
|
Nevada
|
California
|
Arizona
|
Management
|
Other
|
nations
|
Company
|
||||||||||||||||||||||
|
At September 30, 2010
|
(in millions)
|
|||||||||||||||||||||||||||
|
Assets
|
$ | 3,334.2 | $ | 1,404.1 | $ | 1,403.3 | $ | 3.9 | $ | 732.0 | $ | (698.4 | ) | $ | 6,179.1 | |||||||||||||
|
Gross loans and deferred fees, net
|
2,315.1 | 1,009.9 | 891.2 | - | - | (42.7 | ) | 4,173.5 | ||||||||||||||||||||
|
Less: Allowance for credit losses
|
(75.9 | ) | (16.6 | ) | (15.7 | ) | - | - | - | (108.2 | ) | |||||||||||||||||
|
Net loans
|
2,239.2 | 993.3 | 875.5 | - | - | (42.7 | ) | 4,065.3 | ||||||||||||||||||||
|
Goodwill
|
23.2 | - | - | 2.7 | - | - | 25.9 | |||||||||||||||||||||
|
Deposits
|
2,894.0 | 1,232.6 | 1,244.1 | - | - | (42.2 | ) | 5,328.5 | ||||||||||||||||||||
|
Stockholders' equity
|
365.2 | 134.6 | 110.4 | 3.5 | 622.1 | (616.0 | ) | 619.8 | ||||||||||||||||||||
|
No. of branches
|
19 | 11 | 9 | - | - | - | 39 | |||||||||||||||||||||
|
No. of FTE
|
506 | 201 | 143 | 7 | 50 | - | 907 | |||||||||||||||||||||
|
Three Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Net interest income
|
$ | 32,025 | $ | 15,830 | $ | 12,716 | $ | 2 | $ | (1,105 | ) | $ | - | $ | 59,468 | |||||||||||||
|
Provision for credit losses
|
19,349 | 2,166 | 1,450 | - | - | - | 22,965 | |||||||||||||||||||||
|
Net interest income (loss) after
|
||||||||||||||||||||||||||||
|
provision for credit losses
|
12,676 | 13,664 | 11,266 | 2 | (1,105 | ) | - | 36,503 | ||||||||||||||||||||
|
Non-interest income
|
4,355 | 1,150 | 2,462 | 1,001 | 2,809 | 390 | 12,167 | |||||||||||||||||||||
|
Non-interest expense
|
(26,386 | ) | (7,882 | ) | (8,475 | ) | (807 | ) | (3,655 | ) | 1,096 | (46,109 | ) | |||||||||||||||
|
Income (loss) from continuing
|
||||||||||||||||||||||||||||
|
operations before income taxes
|
(9,355 | ) | 6,932 | 5,253 | 196 | (1,951 | ) | 1,486 | 2,561 | |||||||||||||||||||
|
Income tax expense (benefit)
|
(3,568 | ) | 2,906 | 2,021 | 91 | (1,529 | ) | - | (79 | ) | ||||||||||||||||||
|
Income(loss) from continuing
|
||||||||||||||||||||||||||||
|
operations
|
(5,787 | ) | 4,026 | 3,232 | 105 | (422 | ) | 1,486 | 2,640 | |||||||||||||||||||
|
Loss from discontinued operations, net
|
- | - | - | - | (631 | ) | - | (631 | ) | |||||||||||||||||||
|
Net income (loss)
|
$ | (5,787 | ) | $ | 4,026 | $ | 3,232 | $ | 105 | $ | (1,053 | ) | $ | 1,486 | $ | 2,009 | ||||||||||||
|
Nine Months Ended September 30, 2010:
|
||||||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Net interest income
|
$ | 94,373 | $ | 45,401 | $ | 33,533 | $ | 6 | $ | (1,670 | ) | $ | - | $ | 171,643 | |||||||||||||
|
Provision for credit losses
|
62,626 | 7,718 | 4,483 | - | 0 | - | 74,827 | |||||||||||||||||||||
|
Net interest income (loss) after
|
||||||||||||||||||||||||||||
|
provision for credit losses
|
31,747 | 37,683 | 29,050 | 6 | (1,670 | ) | - | 96,816 | ||||||||||||||||||||
|
Non-interest income
|
19,078 | 3,449 | 6,079 | 3,399 | 14,342 | 1,209 | 47,556 | |||||||||||||||||||||
|
Non-interest expense
|
(79,400 | ) | (28,672 | ) | (23,954 | ) | (2,752 | ) | (9,957 | ) | 4,522 | (140,213 | ) | |||||||||||||||
|
Income (loss) from continuing
|
||||||||||||||||||||||||||||
|
operations before income taxes
|
(28,575 | ) | 12,460 | 11,175 | 653 | 2,715 | 5,731 | 4,159 | ||||||||||||||||||||
|
Income tax expense (benefit)
|
(10,464 | ) | 5,377 | 4,444 | 300 | (1,487 | ) | - | (1,830 | ) | ||||||||||||||||||
|
Income(loss) from continuing
|
||||||||||||||||||||||||||||
|
operations
|
(18,111 | ) | 7,083 | 6,731 | 353 | 4,202 | 5,731 | 5,989 | ||||||||||||||||||||
|
Loss from discontinued operations, net
|
- | - | - | - | (2,368 | ) | - | (2,368 | ) | |||||||||||||||||||
|
Net income (loss)
|
$ | (18,111 | ) | $ | 7,083 | $ | 6,731 | $ | 353 | $ | 1,834 | $ | 5,731 | $ | 3,621 | |||||||||||||
15
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||||||||||
|
Operating Segment Results
|
||||||||||||||||||||||||||||
|
Unaudited
|
Inter-
|
|||||||||||||||||||||||||||
|
segment
|
Consoli-
|
|||||||||||||||||||||||||||
|
Asset
|
Elimi-
|
dated
|
||||||||||||||||||||||||||
|
Nevada
|
California
|
Arizona
|
Management
|
Other
|
nations
|
Company
|
||||||||||||||||||||||
|
At September 30, 2009
|
(in millions)
|
|||||||||||||||||||||||||||
|
Assets
|
$ | 3,457.1 | $ | 1,264.9 | $ | 1,024.9 | $ | 19.4 | $ | 118.6 | $ | (53.6 | ) | $ | 5,831.3 | |||||||||||||
|
Gross loans and deferred fees
|
2,488.8 | 814.6 | 707.6 | - | - | (43.0 | ) | 3,968.0 | ||||||||||||||||||||
|
Less: Allowance for credit losses
|
(74.9 | ) | (12.7 | ) | (16.6 | ) | - | - | - | (104.2 | ) | |||||||||||||||||
|
Net loans
|
2,413.9 | 801.9 | 691.0 | - | - | (43.0 | ) | 3,863.8 | ||||||||||||||||||||
|
Goodwill
|
23.2 | - | - | 10.7 | - | - | 33.9 | |||||||||||||||||||||
|
Deposits
|
2,792.9 | 1,089.5 | 877.4 | - | - | (7.6 | ) | 4,752.2 | ||||||||||||||||||||
|
Stockholders' equity
|
315.7 | 120.6 | 73.6 | 17.0 | 81.5 | (5.4 | ) | 603.0 | ||||||||||||||||||||
|
No. of branches
|
21 | 9 | 10 | - | - | - | 40 | |||||||||||||||||||||
|
No. of FTE
|
583 | 211 | 145 | 43 | 41 | - | 1,023 | |||||||||||||||||||||
|
Three Months Ended September 30, 2009
|
||||||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Net interest income
|
$ | 29,918 | $ | 10,895 | $ | 8,160 | $ | 12 | $ | (15 | ) | $ | - | $ | 48,970 | |||||||||||||
|
Provision for credit losses
|
41,931 | 3,953 | 4,866 | - | - | - | 50,750 | |||||||||||||||||||||
|
Net interest income after provision
|
||||||||||||||||||||||||||||
|
for credit losses
|
(12,013 | ) | 6,942 | 3,294 | 12 | (15 | ) | - | (1,780 | ) | ||||||||||||||||||
|
Non-interest income
|
4,201 | 1,073 | 1,676 | 2,452 | 2,206 | 939 | 12,547 | |||||||||||||||||||||
|
Non-interest expense
|
(29,790 | ) | (9,203 | ) | (6,944 | ) | (2,640 | ) | (3,072 | ) | 1,201 | (50,448 | ) | |||||||||||||||
|
Loss from continuing operations
|
||||||||||||||||||||||||||||
|
before income taxes
|
(37,602 | ) | (1,188 | ) | (1,974 | ) | (176 | ) | (881 | ) | 2,140 | (39,681 | ) | |||||||||||||||
|
Income tax expense (benefit)
|
(13,784 | ) | (623 | ) | (849 | ) | 217 | (287 | ) | (1,398 | ) | (16,724 | ) | |||||||||||||||
|
Income(loss) from continuing
|
||||||||||||||||||||||||||||
|
operations
|
(23,818 | ) | (565 | ) | (1,125 | ) | (393 | ) | (594 | ) | 3,538 | (22,957 | ) | |||||||||||||||
|
Loss from discontinued operations, net
|
- | - | - | - | (958 | ) | - | (958 | ) | |||||||||||||||||||
|
Net income (loss)
|
$ | (23,818 | ) | $ | (565 | ) | $ | (1,125 | ) | $ | (393 | ) | $ | (1,552 | ) | $ | 3,538 | $ | (23,915 | ) | ||||||||
|
Nine Months Ended September 30, 2009
|
||||||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||
|
Net interest income
|
$ | 94,186 | $ | 33,240 | $ | 24,525 | $ | 43 | $ | (1,493 | ) | $ | - | $ | 150,501 | |||||||||||||
|
Provision for credit losses
|
86,580 | 8,646 | 13,081 | - | - | - | 108,307 | |||||||||||||||||||||
|
Net interest income after provision
|
||||||||||||||||||||||||||||
|
for credit losses
|
7,606 | 24,594 | 11,444 | 43 | (1,493 | ) | - | 42,194 | ||||||||||||||||||||
|
Non-interest income
|
3,864 | 3,468 | 4,426 | 7,066 | 1,923 | (20,581 | ) | 166 | ||||||||||||||||||||
|
Goodwill impairment charge
|
(45,000 | ) | - | - | (576 | ) | - | - | (45,576 | ) | ||||||||||||||||||
|
Non-interest expense
|
(82,560 | ) | (30,414 | ) | (25,114 | ) | (6,377 | ) | (6,918 | ) | 5,302 | (146,081 | ) | |||||||||||||||
|
Loss from continuing operations
|
||||||||||||||||||||||||||||
|
before income taxes
|
(116,090 | ) | (2,352 | ) | (9,244 | ) | 156 | (6,488 | ) | (15,279 | ) | (149,297 | ) | |||||||||||||||
|
Income tax expense (benefit)
|
(25,165 | ) | (687 | ) | (3,577 | ) | 459 | (2,426 | ) | 3,201 | (28,195 | ) | ||||||||||||||||
|
Income(loss) from continuing
|
||||||||||||||||||||||||||||
|
operations
|
(90,925 | ) | (1,665 | ) | (5,667 | ) | (303 | ) | (4,062 | ) | (18,480 | ) | (121,102 | ) | ||||||||||||||
|
Loss from discontinued operations, net
|
- | - | - | - | (3,392 | ) | - | (3,392 | ) | |||||||||||||||||||
|
Net income (loss)
|
$ | (90,925 | ) | $ | (1,665 | ) | $ | (5,667 | ) | $ | (303 | ) | $ | (7,454 | ) | $ | (18,480 | ) | $ | (124,494 | ) | |||||||
16
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
|
||||||||||||||||||||
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||||||||
|
2010
|
2010
|
2010
|
2009
|
2009
|
||||||||||||||||
|
(dollars in thousands)
|
||||||||||||||||||||
|
Total stockholder's equity
|
$ | 619,764 | $ | 575,858 | $ | 575,779 | $ | 575,725 | $ | 602,967 | ||||||||||
|
Less:
|
||||||||||||||||||||
|
Goodwill and intangible assets
|
40,180 | 41,307 | 42,214 | 43,121 | 51,589 | |||||||||||||||
|
Total tangible stockholders' equity
|
579,584 | 534,551 | 533,565 | 532,604 | 551,378 | |||||||||||||||
|
Less:
|
||||||||||||||||||||
|
Preferred stock
|
130,094 | 129,378 | 128,661 | 127,945 | 127,248 | |||||||||||||||
|
Total tangible common equity
|
449,490 | 405,173 | 404,904 | 404,659 | 424,130 | |||||||||||||||
|
Add:
|
||||||||||||||||||||
|
Deferred tax
|
5,087 | 5,400 | 5,713 | 6,026 | 6,339 | |||||||||||||||
|
Total tangible common equity, net of tax
|
$ | 454,577 | $ | 410,573 | $ | 410,617 | $ | 410,685 | $ | 430,469 | ||||||||||
|
Total assets
|
$ | 6,179,146 | $ | 5,959,479 | $ | 6,096,238 | $ | 5,753,279 | $ | 5,831,317 | ||||||||||
|
Less:
|
||||||||||||||||||||
|
Goodwill and intangible assets
|
40,180 | 41,307 | 42,214 | 43,121 | 51,589 | |||||||||||||||
|
Tangible assets
|
6,138,966 | 5,918,172 | 6,054,024 | 5,710,158 | 5,779,728 | |||||||||||||||
|
Add:
|
||||||||||||||||||||
|
Deferred tax
|
5,087 | 5,400 | 5,713 | 6,026 | 6,652 | |||||||||||||||
|
Total tangible assets, net of tax
|
$ | 6,144,053 | $ | 5,923,572 | $ | 6,059,737 | $ | 5,716,184 | $ | 5,786,380 | ||||||||||
|
Tangible equity ratio (1)
|
9.4 | % | 9.0 | % | 8.8 | % | 9.3 | % | 9.5 | % | ||||||||||
|
Tangible common equity ratio (2)
|
7.3 | % | 6.8 | % | 6.7 | % | 7.1 | % | 7.3 | % | ||||||||||
|
Quarter to date shares
|
81,503 | 73,344 | 73,031 | 72,504 | 72,489 | |||||||||||||||
|
Tangible book value per share, net of tax (3)
|
$ | 5.58 | $ | 5.60 | $ | 5.62 | $ | 5.66 | $ | 5.94 | ||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||||||||
| 2010 | 2010 | 2010 | 2009 | 2009 | ||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
|
Total non-interest income
|
$ | 12,167 | $ | 20,760 | $ | 14,629 | $ | 4,269 | $ | 12,547 | ||||||||||
|
Less:
|
||||||||||||||||||||
|
Mark-to-market (losses) gains, net
|
(210 | ) | 6,250 | 301 | (1,874 | ) | 1,987 | |||||||||||||
|
Securities impairment charges
|
- | (1,071 | ) | (103 | ) | (1,748 | ) | (1,044 | ) | |||||||||||
|
Gains on sales of investment securities, net
|
5,460 | 6,079 | 8,218 | 167 | 4,146 | |||||||||||||||
|
Gain on extinguishment of debt
|
- | 3,000 | - | - | - | |||||||||||||||
|
Gain on sale of subsidiary
|
568 | - | - | 54 | - | |||||||||||||||
|
Total operating non-interest income
|
6,349 | 6,502 | 6,213 | 7,724 | 7,458 | |||||||||||||||
|
Add: net interest income
|
59,468 | 57,456 | 54,718 | 51,788 | 48,970 | |||||||||||||||
|
Net revenue (4)
|
$ | 65,817 | $ | 63,958 | $ | 60,931 | $ | 59,512 | - | $ | 56,428 | |||||||||
|
Total non-interest expense
|
$ | 46,109 | $ | 53,262 | $ | 40,843 | $ | 51,320 | $ | 50,448 | ||||||||||
|
Less:
|
||||||||||||||||||||
|
Net loss (gain) on sales/valuations of
|
||||||||||||||||||||
|
repossessed assets
|
4,855 | 11,994 | (1,014 | ) | 5,081 | 7,283 | ||||||||||||||
|
Goodwill impairment
|
- | - | - | 4,095 | 576 | |||||||||||||||
|
Total operating non-interest expense (4)
|
$ | 41,254 | $ | 41,268 | $ | 41,857 | $ | 42,144 | $ | 42,589 | ||||||||||
|
Net revenue
|
$ | 65,817 | $ | 63,958 | $ | 60,931 | 59,512 | $ | 56,428 | |||||||||||
|
Less:
|
||||||||||||||||||||
|
Operating non-interest expense
|
41,254 | 41,268 | 41,857 | 42,144 | 42,589 | |||||||||||||||
|
Pre-tax, pre-provision operating earnings (5)
|
$ | 24,563 | $ | 22,690 | $ | 19,074 | $ | 17,368 | $ | 13,839 | ||||||||||
17
|
Western Alliance Bancorporation and Subsidiaries
|
||||||||||||||||||||
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
|
||||||||||||||||||||
|
Three Months Ended
|
||||||||||||||||||||
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
Sept. 30,
|
||||||||||||||||
|
2010
|
2010
|
2010
|
2009
|
2009
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||
|
Total operating non-interest expense
|
$ | 41,254 | $ | 41,268 | $ | 41,857 | $ | 42,144 | $ | 42,589 | ||||||||||
|
Divided by:
|
||||||||||||||||||||
|
Total net interest income
|
$ | 59,468 | $ | 57,456 | $ | 54,718 | $ | 51,788 | $ | 48,970 | ||||||||||
|
Add:
|
||||||||||||||||||||
|
Tax equivalent interest adjustment
|
307 | 149 | 244 | 265 | 141 | |||||||||||||||
|
Operating non-interest income
|
6,349 | 6,502 | 6,213 | 7,724 | 7,458 | |||||||||||||||
| $ | 66,124 | $ | 64,107 | $ | 61,175 | $ | 59,777 | $ | 56,569 | |||||||||||
|
Efficiency ratio - tax equivalent basis (6)
|
62.4 | % | 64.4 | % | 68.4 | % | 70.5 | % | 75.3 | % | ||||||||||
|
Three Months Ended
|
||||||||
|
Sept. 30,
|
Sept. 30,
|
|||||||
|
2010
|
2009
|
|||||||
|
Stockholder's equity
|
619,764 | 602,967 | ||||||
|
Less:
|
||||||||
|
Accumulated other comprehensive (loss) income
|
(2,598 | ) | 6,034 | |||||
|
Non-qualifying goodwill and intangibles
|
35,837 | 46,042 | ||||||
|
Other non-qualifying assets
|
28,919 | 39,110 | ||||||
|
Add:
|
||||||||
|
Qualifying trust preferred securities
|
34,326 | 39,862 | ||||||
|
Tier 1 capital (regulatory) (7)
|
591,932 | 551,643 | ||||||
|
Less:
|
||||||||
|
Qualifying non-controlling interests
|
218 | 150 | ||||||
|
Qualifying trust preferred securities
|
34,326 | 39,862 | ||||||
|
Preferred stock
|
130,094 | 127,248 | ||||||
|
Estimated Tier 1 common equity (8)
|
427,294 | 384,383 | ||||||
|
Divided by:
|
||||||||
|
Estimated risk-weighted assets (regulatory (8)
|
4,773,075 | 4,550,647 | ||||||
|
Tier 1 common equity ratio (8)
|
9.0 | % | 8.4 | % | ||||
(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 September 30, 2010, 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 his 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.
18