Attached files
| file | filename |
|---|---|
| 8-K - WESTERN ALLIANCE BANCORPORATION 8-K - WESTERN ALLIANCE BANCORPORATION | a50030574.htm |
| EX-99.2 - EXHIBIT 99.2 - WESTERN ALLIANCE BANCORPORATION | a50030574_ex992.htm |
Exhibit 99.1
Western Alliance Reports Third Quarter 2011 Earnings of $13.0 million
- Loan Growth of $115 million, Deposit Growth of $45 million
- Stockholders’ Equity Growth $17 million
- TARP Repaid, SBLF Participant
PHOENIX--(BUSINESS WIRE)--October 17, 2011--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the third quarter 2011.
Third Quarter 2011 Highlights:
- Net income of $13.0 million, including after tax unrealized gains from assets/liabilities measured at fair value of $4.2 million
- Net income of $0.04 per common share, including a one-time charge of $0.09 per common share from accelerated preferred stock accretion from TARP repayment and $0.05 unrealized gain from assets measured at fair value
- Pre-tax, pre-provision operating earnings of $28.1 million, up 1.8% from $27.6 million in second quarter 2011 and up 14.2% from $24.6 million in third quarter 20101
- Net interest margin of 4.29% compared to 4.34% in the second quarter 2011 and 4.32% in the third quarter 2010
- Total loans of $4.53 billion, up $115 million from June 30, 2011 and up $353 million from September 30, 2010
- Total deposits of $5.63 billion, up $45 million from June 30, 2011 and up $304 million from September 30, 2010
- Nonperforming assets (nonaccrual loans and repossessed assets) remained at 3.1% of total assets compared to second quarter 2011 and declined from 3.9% in third quarter 2010
- Net loan charge-offs of $15.3 million, up from $13.6 million for the second quarter 2011 and down from $24.8 million in third quarter 2010
- Tier I Leverage capital of 9.7% and Total Risk-Based Capital ratio of 13.1%, compared to 10.0% and 13.7% a year ago
- Total equity of $632.3 million, up $16.6 million from June 30, 2011 and up $12.5 million from September 30, 2010
- Receipt of $141 million from participation in the U.S. Department of Treasury’s Small Business Lending Fund (SBLF)
- Repayment of $140 million Troubled Asset Relief Program (TARP), which resulted in additional $6.9 million charge to net income available to common shareholders
Financial Performance
“We are pleased to announce another quarter of strong growth in loans and deposits, increasing pre-tax pre-credit earnings, stable net interest margin, and improving asset quality,” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. “Also, as announced on September 27, 2011, we are excited to participate in the SBLF Program. As one of the largest lenders to small businesses in our markets, this Program will facilitate our ability to continue to service the credit needs of this important segment.”
Ken Vecchione, President and Chief Operating Officer, added, “We continue to focus on creating shareholder value by increasing our earning power as our pre-tax pre-credit income rose for the ninth consecutive quarter, thus contributing to our strong capital position. This increase was driven by growth in market share of both loans and deposits, while maintaining a stable expense base since 2009.”
Western Alliance Bancorporation reported net income of $13.0 million in the third quarter 2011. Income from continuing operations before income tax was $21.1 million, including pre-tax net unrealized gains from assets/liabilities measured at fair value of $6.4 million.
The Company reported net income per common share of $0.04 in the third quarter 2011. The income included a one-time $0.09 charge from accelerated preferred stock accretion as a result of TARP repayment and $0.05 net unrealized gains from assets/liabilities measured at fair value after tax.
Total loans increased $115 million to $4.53 billion at September 30, 2011 from $4.41 billion on June 30, 2011. This increase was driven by growth in commercial and industrial loans and commercial leases. Loans increased $353 million, or 8.5 percent from September 30, 2010.
Total deposits increased $45 million to $5.63 billion at September 30, 2011 from $5.59 billion at June 30, 2011, with growth primarily in savings, money market and interest bearing demand deposits, partially offset by a decline in certificates of deposit. Deposits increased $304 million, or 5.7 percent from September 30, 2010.
Income Statement
Net interest income of $64.6 million in the third quarter 2011 increased by 2.1 percent compared to the second quarter 2011 and 8.6 percent compared to the third quarter 2010. The net interest margin in the third quarter 2011 was 4.29 percent compared to 4.34 percent in the second quarter 2011 and 4.32 percent in the third quarter of 2010.
Operating non-interest income was $5.9 million for the third quarter 2011.1 This performance was a decrease from $6.8 million for the second quarter of 2011 and $6.3 million for the third quarter of 2010.1
Net revenue was $70.5 million for the third quarter 2011, a one percent increase from $70.1 million for the second quarter of 2011 and 7.1 percent from $65.8 million for the third quarter 2010.1
Other non-interest income included a $6.4 million unrealized gain from the write-down of the Company’s liabilities due to credit spreads widening and a net gain on investment securities sales of $0.8 million.
Operating non-interest expenses have been relatively flat at $42.4 million for the third quarter 2011, compared to $42.5 million for the second quarter of 2011 and $41.3 million for the third quarter of 2010.1 The Company’s operating efficiency ratio was 59.6 percent for the third quarter 2011, improved from 62.4 percent for the third quarter 2010.1 The Company had 911 full-time equivalent employees at September 30, 2011, compared to 907 one year ago.
A key performance metric for the Company is its pre-tax, pre-provision operating earnings, which it defines as net operating revenue less its operating non-interest expense.1 For the second quarter 2011, the Company’s performance was $28.1 million, up from $27.6 million in the second quarter 2011 and $24.6 million in the third quarter 2010.1
The provision for credit losses was $11.2 million for the third quarter 2011 compared to $11.9 million for the second quarter 2011. The provision for the third quarter of 2010 was $23.0 million. Net loan charge-offs in the third quarter 2011 were $15.3 million or 1.40 percent of average loans (annualized), up from $13.6 million or 1.26 percent of average loans (annualized) for the second quarter 2011 due to increased residential real estate loan charge-offs. Net charge-offs for the third quarter 2010 were $24.8 million or 2.41% of average loans (annualized).
Nonaccrual loans and repossessed assets remained flat at $200.4 million or 3.1 percent of total assets at September 30, 2011, compared to the second quarter 2011 and decreased from $241 million or 3.9 percent of total assets at September 30, 2010. Loans past due 90 days and still accruing totaled $2.1 million at September 30, 2011, up from $1.1 million at June 30, 2011 and down from $5.7 million at September 30, 2010. Loans past due 30-89 days totaled $12.4 million at quarter end, up slightly from $11.6 million at June 30, 2011 and down from $20.4 million at September 30, 2010.
Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 42 percent at September 30, 2011 from 57 percent at September 30, 2010.1
Net loss on sales and valuation of repossessed assets (primarily other real estate) was $2.1 million for the third quarter 2011 compared to $8.6 million in the prior quarter. At September 30, 2011, other repossessed assets were valued at $87 million compared to $86 million at June 30, 2011 and $110 million one year ago.
Balance Sheet
Gross loans totaled $4.53 billion at September 30, 2011, an increase of $115 million from June 30, 2011 and an increase of $353 million from $4.17 billion at September 30, 2010. At September 30, 2011 the allowance for credit losses was 2.21 percent of total loans down from 2.37 percent at June 30, 2011 and 2.59 percent at September 30, 2010.
Deposits totaled $5.63 billion at September 30, 2011, an increase of $45 million from $5.59 billion at June 30, 2011 and an increase of $304 million from $5.33 billion at September 30, 2010.
Non-interest bearing deposits increased slightly at September 30, 2011 from June 30, 2011 and increased $97.3 million from $1.42 billion at September 30, 2010. Non-interest bearing deposits comprised 27.0 percent of total deposits at September 30, 2011, compared to 26.7 percent a year ago.
At September 30, 2011, the Company’s loans were 80.4 percent of deposits compared to 79.0 percent at June 30, 2011 and 78.3 percent at September 30, 2010.
Stockholders’ equity at September 30, 2011 increased to $632.3 million from $615.7 million at June 30, 2011. At September 30, 2011, tangible common equity was 7.0 percent of tangible assets1 and total risk-based capital was 13.1 percent of risk-weighted assets.
Total assets increased one percent to $6.55 billion at September 30, 2011 from $6.51 billion at June 30, 2011 and increased 6.0 percent from $6.18 billion at September 30, 2010.
Operating Unit Highlights
Bank of Nevada reported that loans declined slightly during the third quarter of 2011 and declined $88 million during the last 12 months to $1.85 billion at September 30, 2011. Deposits increased $17 million in the third quarter of 2011 and increased $59 million over the last twelve months to $2.47 billion. Net income for Bank of Nevada was $1.7 million for the third quarter 2011, compared with net income of $3.7 million for the second quarter of 2011 and net loss of $6.9 million during the third quarter 2010.
Western Alliance Bank reported loan growth of $56 million during the third quarter 2011 and $218 million during the last 12 months to $1.48 billion. Deposits increased $8 million in the third quarter and increased $38 million during the last 12 months to $1.77 billion. Net income for Western Alliance Bank was $5.5 million during the third quarter 2011 compared with net income of $3.8 million during the second quarter of 2011 and a net income of $4.3 million during the third quarter 2010.
The Torrey Pines Bank segment, which excludes discontinued operations, reported that loans increased $62 million during the third quarter 2011 and increased $223 million during the last 12 months to $1.23 billion. Deposits increased $18 million in the third quarter 2011 and $168 million over the last 12 months to $1.40 billion. Net income for Torrey Pines Bank was $5.4 million during the third quarter 2011 compared with net income of $4.2 million for the second quarter of 2011 and net income of $4.0 million during the third quarter 2010.
Attached to this press release is summarized financial information for the quarter ended September 30, 2011.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2011 financial results at 12:00 p.m. ET on Tuesday, October 18, 2011.
Participants may access the call by dialing 1-866-843-0890 and using passcode: 4530713 or via live audio webcast using the website link: https://services.choruscall.com/links/wal111018.html. The webcast is also available via our website at www.westernalliancebancorp.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 2:00 p.m. ET October 18 until 9 a.m. ET October 26th by dialing 1-877-344-7529 using the pass code 10005379.
About Western Alliance Bancorporation
Western Alliance Bancorporation is the parent company of Bank of Nevada, Western Alliance Bank doing business as Alliance Bank of Arizona and First Independent Bank, Torrey Pines Bank, and Shine Investment Advisory Services. These dynamic organizations provide a broad array of deposit and credit services to clients in Nevada, Arizona and California, and investment services in Colorado. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers' needs than larger institutions. Additional investor information can be accessed on the Investor Relations page of the company's website, www.westernalliancebancorp.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include: factors listed in the Form 10-K as filed with the Securities and Exchange Commission; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.
We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements set forth in this press release to reflect new information, future events or otherwise.
This press release contains both financial measures based on accounting principles generally accepted in the United States (“GAAP”) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Western Alliance Bancorporation’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 16
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Summary Consolidated Financial Data | ||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| At or for the Three Months | For the Nine Months | |||||||||||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||||||||||
| 2011 | 2010 |
Change % |
2011 | 2010 |
Change % |
|||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||
| Total assets | $ | 6,545.9 | $ | 6,179.1 | 5.9 | % | ||||||||||||||||||
| Loans, net of deferred fees | 4,526.5 | 4,173.5 | 8.5 | |||||||||||||||||||||
| Securities and money market investments | 1,304.6 | 929.7 | 40.3 | |||||||||||||||||||||
| Federal funds sold | - | 1.0 | ||||||||||||||||||||||
| Total deposits | 5,632.9 | 5,328.5 | 5.7 | |||||||||||||||||||||
| Borrowings | 215.8 | 159.7 | 35.1 | |||||||||||||||||||||
| Junior subordinated and subordinated debt | 36.3 | 36.3 | 0.0 | |||||||||||||||||||||
| Stockholders' equity | 632.3 | 619.8 | 2.0 | |||||||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Interest income | $ | 74,133 | $ | 70,705 | 4.8 | % | $ | 219,745 | $ | 209,439 | 4.9 | % | ||||||||||||
| Interest expense | 9,548 | 11,237 | (15.0 | ) | 30,776 | 37,796 | (18.6 | ) | ||||||||||||||||
| Net interest income | 64,585 | 59,468 | 8.6 | 188,969 | 171,643 | 10.1 | ||||||||||||||||||
| Provision for loan losses | 11,180 | 22,965 | (51.3 | ) | 33,112 | 74,827 | (55.7 | ) | ||||||||||||||||
| Net interest income after provision for credit losses | 53,405 | 36,503 | 46.3 | 155,857 | 96,816 | 61.0 | ||||||||||||||||||
| Non-interest income | 13,082 | 12,167 | 7.5 | 29,509 | 47,556 | (37.9 | ) | |||||||||||||||||
| Non-interest expense | 45,481 | 46,109 | (1.4 | ) | 144,635 | 140,213 | 3.2 | |||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
21,006 | 2,561 | 720.2 | 40,731 | 4,159 | 879.3 | ||||||||||||||||||
| Income tax expense (benefit) | 7,514 | (79 | ) | 9,611.4 | 14,838 | (1,830 | ) | 910.8 | ||||||||||||||||
| Income from continuing operations | 13,492 | 2,640 | 411.1 | 25,893 | 5,989 | 332.3 | % | |||||||||||||||||
| Loss on discontinued operations, net | (481 | ) | (631 | ) | 23.8 | (1,500 | ) | (2,368 | ) | |||||||||||||||
| Net income | $ | 13,011 | $ | 2,009 | 547.6 | % | $ | 24,393 | $ | 3,621 | ||||||||||||||
| Diluted net income (loss) from continuing operations | $ | 0.05 | $ | 0.00 | $ | 0.14 | $ | (0.02 | ) | |||||||||||||||
|
Diluted net loss from discontinued operations, net of tax |
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||||||||||
| Diluted net income (loss) per common share | $ | 0.04 | $ | (0.01 | ) | 500.0 | % | $ | 0.12 | $ | (0.05 | ) | 345.8 | % | ||||||||||
| Common Share Data: | ||||||||||||||||||||||||
| Diluted net income (loss) per common share | $ | 0.04 | $ | (0.01 | ) | 500.0 | % | $ | 0.12 | $ | (0.05 | ) | 345.8 | % | ||||||||||
| Book value per common share | $ | 5.97 | $ | 6.01 | (0.7 | ) | % | |||||||||||||||||
| Tangible book value per share, net of tax (1) | $ | 5.57 | $ | 5.58 | (0.1 | ) | % | |||||||||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||||||
| Basic | 80,931 | 75,554 | 7.1 | 80,870 | 73,240 | 10.4 | ||||||||||||||||||
| Diluted | 81,125 | 75,554 | 7.4 | 81,121 | 73,240 | 10.8 | ||||||||||||||||||
| Common shares outstanding | 82,263 | 81,503 | 0.9 | |||||||||||||||||||||
| (1) See Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||
| Summary Consolidated Financial Data (continued) | ||||||||||||||||
| Unaudited | ||||||||||||||||
| At or for the Three Months | For the Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2011 | 2010 |
Change % |
2011 | 2010 | Change % | |||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||
| Return on average assets (1) | 0.79 | % | 0.13 | % | 507.7 | % | 0.51 | % | 0.08 | % | 537.5 | % | ||||
| Return on average stockholders' equity (1) | 8.13 | 1.31 | 520.6 | 5.22 | 0.82 | 536.6 | ||||||||||
| Net interest margin (1) | 4.29 | 4.32 | (0.7 | ) | 4.32 | 4.22 | 2.4 | |||||||||
| Net interest spread | 4.05 | 4.03 | 0.5 | 4.06 | 3.90 | 4.1 | ||||||||||
| Efficiency ratio - tax equivalent basis (2) | 59.60 | 62.39 | (4.5 | ) | ||||||||||||
| Loan to deposit ratio | 80.36 | 78.32 | 2.6 | |||||||||||||
| Capital Ratios: | ||||||||||||||||
| Tangible equity (2) | 9.1 | % | 9.4 | % | (3.1 | ) | % | |||||||||
| Tangible common equity (2) | 7.0 | 7.3 | (4.6 | ) | ||||||||||||
| Tier one common equity (2) | 8.6 | 9.0 | (4.4 | ) | ||||||||||||
| Tier 1 Leverage ratio (3) | 9.7 | 10.0 | (3.0 | ) | ||||||||||||
| Tier 1 Risk Based Capital (3) | 11.8 | 12.4 | (4.8 | ) | ||||||||||||
| Total Risk Based Capital (3) | 13.1 | 13.7 | (4.4 | ) | ||||||||||||
| Asset Quality Ratios: | ||||||||||||||||
| Net charge-offs to average loans outstanding (1) | 1.40 | % | 2.41 | % | (41.9 | ) | % | 1.35 | % | 2.47 | % | (45.3 | ) | % | ||
| Nonaccrual loans to gross loans | 2.51 | 3.14 | (20.1 | ) | ||||||||||||
| Nonaccrual loans and repossessed assets to total assets | 3.06 | 3.90 | (21.5 | ) | ||||||||||||
| Loans past due 90 days and still accruing to total loans | 0.05 | 0.14 | (64.3 | ) | ||||||||||||
| Allowance for credit losses to loans | 2.21 | 2.59 | (14.7 | ) | ||||||||||||
| Allowance for credit losses to nonaccrual loans | 88.13 | 82.63 | 6.7 | |||||||||||||
| (1) Annualized for the three and nine month periods ended September 30, 2011 and 2010. | ||||||||||||||||
| (2) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||||||
| (3) Capital ratios are preliminary until Call Reports are filed. | ||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| Unaudited | Three Months Ended | Nine Months Ended | ||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Interest income: | (dollars in thousands) | |||||||||||||||
| Loans | $ | 65,540 | $ | 64,273 | $ | 194,341 | $ | 190,641 | ||||||||
| Investment securities | 8,356 | 6,104 | 24,828 | 17,679 | ||||||||||||
| Federal funds sold and other | 237 | 328 | 576 | 1,119 | ||||||||||||
| Total interest income | 74,133 | 70,705 | 219,745 | 209,439 | ||||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 6,982 | 9,531 | 22,428 | 32,677 | ||||||||||||
| Customer repurchase agreements | 77 | 74 | 263 | 471 | ||||||||||||
| Borrowings | 2,024 | 896 | 6,229 | 1,714 | ||||||||||||
| Junior subordinated and subordinated debt | 465 | 736 | 1,856 | 2,934 | ||||||||||||
| Total interest expense | 9,548 | 11,237 | 30,776 | 37,796 | ||||||||||||
| Net interest income | 64,585 | 59,468 | 188,969 | 171,643 | ||||||||||||
| Provision for credit losses | 11,180 | 22,965 | 33,112 | 74,827 | ||||||||||||
| Net interest income after provision for credit losses | 53,405 | 36,503 | 155,857 | 96,816 | ||||||||||||
| Non-interest income | ||||||||||||||||
| Unrealized gains (losses) on assets/liabilities measured at fair value,net | 6,420 | (210 | ) | 6,247 | 6,341 | |||||||||||
| Securities impairment charges | - | - | (226 | ) | (1,174 | ) | ||||||||||
| Gains on sales of investment securities, net | 781 | 5,460 | 4,826 | 19,757 | ||||||||||||
| Trust and investment advisory services | 661 | 1,001 | 1,955 | 3,395 | ||||||||||||
| Service charges | 2,337 | 2,276 | 6,864 | 6,791 | ||||||||||||
| Operating lease income | 353 | 998 | 1,605 | 2,928 | ||||||||||||
| Bank owned life insurance | 1,189 | 773 | 4,195 | 2,271 | ||||||||||||
| Gain on extinguishment of debt | - | - | - | 3,000 | ||||||||||||
| Other | 1,341 | 1,869 | 4,043 | 4,247 | ||||||||||||
| 13,082 | 12,167 | 29,509 | 47,556 | |||||||||||||
| Non-interest expenses: | ||||||||||||||||
| Salaries and employee benefits | 23,319 | 21,860 | 69,119 | 65,461 | ||||||||||||
| Occupancy | 5,126 | 4,890 | 15,024 | 14,505 | ||||||||||||
| Insurance | 2,664 | 4,115 | 8,878 | 11,366 | ||||||||||||
| Repossessed asset and loan expenses | 2,059 | 1,918 | 6,465 | 5,847 | ||||||||||||
| Net loss on sales and valuations of repossessed assets | 2,128 | 4,855 | 16,890 | 15,836 | ||||||||||||
| Legal, professional and director's fees | 1,912 | 1,546 | 5,639 | 5,553 | ||||||||||||
| Marketing | 1,090 | 878 | 3,382 | 3,079 | ||||||||||||
| Intangible amortization | 890 | 901 | 2,669 | 2,714 | ||||||||||||
| Customer service | 900 | 987 | 2,620 | 3,205 | ||||||||||||
| Data Processing | 895 | 842 | 2,671 | 2,427 | ||||||||||||
| Operating lease depreciation | 245 | 627 | 993 | 1,963 | ||||||||||||
| Merger/restructure expense | 974 | - | 1,082 | - | ||||||||||||
| Other | 3,279 | 2,690 | 9,203 | 8,257 | ||||||||||||
| 45,481 | 46,109 | 144,635 | 140,213 | |||||||||||||
| Income from continuing operations before income taxes | 21,006 | 2,561 | 40,731 | 4,159 | ||||||||||||
| Income tax expense (benefit) | 7,514 | (79 | ) | 14,838 | (1,830 | ) | ||||||||||
| Income from continuing operations | 13,492 | 2,640 | 25,893 | 5,989 | ||||||||||||
| Loss from discontinued operations net of tax benefit | (481 | ) | (631 | ) | (1,500 | ) | (2,368 | ) | ||||||||
| Net income | 13,011 | 2,009 | 24,393 | 3,621 | ||||||||||||
| Preferred stock dividends | 1,752 | 1,750 | 5,252 | 5,250 | ||||||||||||
| Accretion on preferred stock discount | 7,667 | 716 | 9,173 | 2,149 | ||||||||||||
| Net income (loss) available to common stockholders | $ | 3,592 | $ | (457 | ) | $ | 9,968 | $ | (3,778 | ) | ||||||
| Diluted net income (loss) per share | $ | 0.04 | $ | (0.01 | ) | $ | 0.12 | $ | (0.05 | ) | ||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| Unaudited | Three Months Ended | |||||||||||||||||||
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| Interest income: | (in thousands, except per share data) | |||||||||||||||||||
| Loans | $ | 65,540 | $ | 64,919 | $ | 63,882 | $ | 64,985 | $ | 64,273 | ||||||||||
| Investment securities | 8,356 | 8,542 | 7,930 | 7,054 | 6,104 | |||||||||||||||
| Federal funds sold and other | 237 | 185 | 154 | 335 | 328 | |||||||||||||||
| Total interest income | 74,133 | 73,646 | 71,966 | 72,374 | 70,705 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 6,982 | 7,548 | 7,898 | 8,652 | 9,531 | |||||||||||||||
| Borrowings and customer repurchase agreements | 2,101 | 2,123 | 2,268 | 2,097 | 970 | |||||||||||||||
| Junior subordinated and subordinated debt | 465 | 689 | 702 | 714 | 736 | |||||||||||||||
| Total interest expense | 9,548 | 10,360 | 10,868 | 11,463 | 11,237 | |||||||||||||||
| Net interest income | 64,585 | 63,286 | 61,098 | 60,911 | 59,468 | |||||||||||||||
| Provision for credit losses | 11,180 | 11,891 | 10,041 | 18,384 | 22,965 | |||||||||||||||
| Net interest income after provision for credit losses | 53,405 | 51,395 | 51,057 | 42,527 | 36,503 | |||||||||||||||
| Non-interest income | ||||||||||||||||||||
| Mark-to-market gains (losses), net | 6,420 | 336 | (509 | ) | (6,710 | ) | (210 | ) | ||||||||||||
| Securities impairment charges | - | (226 | ) | - | (12 | ) | - | |||||||||||||
| Gains on sales of investment securities, net | 781 | 2,666 | 1,379 | - | 5,460 | |||||||||||||||
| Trust and investment advisory services | 661 | 657 | 636 | 608 | 1,001 | |||||||||||||||
| Service charges | 2,337 | 2,243 | 2,284 | 2,177 | 2,276 | |||||||||||||||
| Operating lease income | 353 | 580 | 671 | 864 | 998 | |||||||||||||||
| Bank owned life insurance | 1,189 | 1,822 | 1,184 | 1,027 | 773 | |||||||||||||||
| Other | 1,341 | 1,519 | 1,185 | 1,326 | 1,869 | |||||||||||||||
| 13,082 | 9,597 | 6,830 | (720 | ) | 12,167 | |||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 23,319 | 22,960 | 22,840 | 21,125 | 21,860 | |||||||||||||||
| Occupancy | 5,126 | 5,044 | 4,854 | 5,075 | 4,890 | |||||||||||||||
| Insurance | 2,664 | 2,352 | 3,863 | 4,109 | 4,115 | |||||||||||||||
| Repossessed asset and loan expenses | 2,059 | 2,284 | 2,122 | 2,230 | 1,918 | |||||||||||||||
| Net loss on sales and valuations of repossessed assets | 2,128 | 8,633 | 6,129 | 12,991 | 4,855 | |||||||||||||||
| Legal, professional and director's fees | 1,912 | 2,361 | 1,366 | 2,038 | 1,546 | |||||||||||||||
| Marketing | 1,090 | 1,135 | 1,157 | 982 | 878 | |||||||||||||||
| Intangible amortization | 890 | 890 | 890 | 889 | 901 | |||||||||||||||
| Customer service | 900 | 828 | 892 | 1,050 | 987 | |||||||||||||||
| Data Processing | 895 | 928 | 848 | 948 | 842 | |||||||||||||||
| Operating lease depreciation | 245 | 327 | 421 | 542 | 627 | |||||||||||||||
| Merger/restructure expense | 974 | (109 | ) | 217 | 1,651 | - | ||||||||||||||
| Other | 3,279 | 3,375 | 2,547 | 2,915 | 2,690 | |||||||||||||||
| 45,481 | 51,008 | 48,146 | 56,545 | 46,109 | ||||||||||||||||
| Income (loss) from continuing operations before income taxes | 21,006 | 9,984 | 9,741 | (14,738 | ) | 2,561 | ||||||||||||||
| Income tax expense (benefit) | 7,514 | 3,295 | 4,029 | (4,580 | ) | (79 | ) | |||||||||||||
| Income (loss) from continuing operations | $ | 13,492 | $ | 6,689 | $ | 5,712 | $ | (10,158 | ) | $ | 2,640 | |||||||||
| Loss from discontinued operations, net of tax | (481 | ) | (460 | ) | (559 | ) | (657 | ) | (631 | ) | ||||||||||
| Net income (loss) | $ | 13,011 | $ | 6,229 | $ | 5,153 | $ | (10,815 | ) | $ | 2,009 | |||||||||
| Preferred stock dividends | 1,752 | 1,750 | 1,750 | 1,750 | 1,750 | |||||||||||||||
| Accretion on preferred stock | 7,667 | 753 | 753 | 734 | 716 | |||||||||||||||
| Net Income (loss) available to common stockholders | $ | 3,592 | $ | 3,726 | $ | 2,650 | $ | (13,299 | ) | $ | (457 | ) | ||||||||
| Diluted net income (loss) per share | $ | 0.04 | $ | 0.05 | $ | 0.03 | $ | (0.17 | ) | $ | (0.01 | ) | ||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| Assets: | (in millions) | |||||||||||||||||||
| Cash and due from banks | $ | 306.0 | $ | 534.6 | $ | 363.3 | $ | 215.8 | $ | 615.0 | ||||||||||
| Federal funds sold | - | - | - | 0.9 | 1.0 | |||||||||||||||
| Cash and cash equivalents | 306.0 | 534.6 | 363.3 | 216.7 | 616.0 | |||||||||||||||
| Securities and money market investments | 1,304.6 | 1,138.2 | 1,319.6 | 1,273.1 | 929.7 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | 1,152.9 | 1,029.5 | 935.9 | 934.6 | 876.8 | |||||||||||||||
| Commercial real estate - owner occupied | 1,225.4 | 1,285.3 | 1,299.5 | 1,223.1 | 1,227.7 | |||||||||||||||
| Construction and land development | 404.4 | 396.3 | 391.7 | 451.5 | 488.3 | |||||||||||||||
| Commercial real estate - non-owner occupied | 1,239.8 | 1,170.0 | 1,086.9 | 1,038.5 | 981.4 | |||||||||||||||
| Residential real estate | 450.2 | 473.9 | 504.5 | 527.3 | 533.6 | |||||||||||||||
| Consumer | 60.3 | 62.6 | 65.7 | 71.5 | 71.4 | |||||||||||||||
| Deferred fees, net | (6.5 | ) | (5.9 | ) | (6.2 | ) | (6.0 | ) | (5.7 | ) | ||||||||||
| 4,526.5 | 4,411.7 | 4,278.0 | 4,240.5 | 4,173.5 | ||||||||||||||||
| Allowance for credit losses | (100.2 | ) | (104.4 | ) | (106.1 | ) | (110.7 | ) | (108.2 | ) | ||||||||||
| Loans, net | 4,426.3 | 4,307.3 | 4,171.9 | 4,129.8 | 4,065.3 | |||||||||||||||
| Premises and equipment, net | 106.2 | 109.2 | 112.0 | 114.4 | 116.5 | |||||||||||||||
| Other repossessed assets | 86.7 | 85.7 | 98.3 | 107.7 | 110.1 | |||||||||||||||
| Bank owned life insurance | 132.7 | 131.5 | 131.0 | 129.8 | 94.8 | |||||||||||||||
| Goodwill and other intangibles | 36.6 | 37.5 | 38.4 | 39.3 | 40.2 | |||||||||||||||
| Other assets | 146.8 | 164.1 | 170.3 | 183.1 | 206.5 | |||||||||||||||
| Total assets | $ | 6,545.9 | $ | 6,508.1 | $ | 6,404.8 | $ | 6,193.9 | $ | 6,179.1 | ||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,519.0 | $ | 1,516.8 | $ | 1,455.1 | $ | 1,443.3 | $ | 1,421.7 | ||||||||||
| Interest bearing | ||||||||||||||||||||
| Demand | 466.0 | 456.5 | 521.2 | 523.8 | 645.4 | |||||||||||||||
| Savings and money market | 2,151.9 | 2,105.4 | 2,100.6 | 1,926.1 | 1,892.2 | |||||||||||||||
| Time certificates | 1,496.0 | 1,509.6 | 1,420.6 | 1,445.2 | 1,369.2 | |||||||||||||||
| Total deposits | 5,632.9 | 5,588.3 | 5,497.5 | 5,338.4 | 5,328.5 | |||||||||||||||
| Customer repurchase agreements | 142.6 | 148.7 | 163.4 | 109.4 | 86.8 | |||||||||||||||
| Total customer funds | 5,775.5 | 5,737.0 | 5,660.9 | 5,447.8 | 5,415.3 | |||||||||||||||
| Borrowings | 73.2 | 73.1 | 73.0 | 73.0 | 72.9 | |||||||||||||||
| Junior subordinated debt | 36.3 | 42.7 | 43.0 | 43.0 | 36.3 | |||||||||||||||
| Accrued interest payable and other liabilities | 28.6 | 39.6 | 26.3 | 27.9 | 34.8 | |||||||||||||||
| Total liabilities | 5,913.6 | 5,892.4 | 5,803.2 | 5,591.7 | 5,559.3 | |||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Common stock and additional paid-in capital | 743.0 | 741.6 | 740.9 | 739.6 | 737.8 | |||||||||||||||
| Preferred Stock | 141.0 | 132.3 | 131.6 | 130.8 | 130.1 | |||||||||||||||
| Retained earnings (deficit) | (248.8 | ) | (252.4 | ) | (256.2 | ) | (258.8 | ) | (245.5 | ) | ||||||||||
| Accumulated other comprehensive income (loss) | (2.9 | ) | (5.8 | ) | (14.7 | ) | (9.4 | ) | (2.6 | ) | ||||||||||
| Total stockholders' equity | 632.3 | 615.7 | 601.6 | 602.2 | 619.8 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,545.9 | $ | 6,508.1 | $ | 6,404.8 | $ | 6,193.9 | $ | 6,179.1 | ||||||||||
| 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, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Balance, beginning of period | $ | 104,375 | $ | 106,133 | $ | 110,699 | $ | 108,170 | $ | 110,013 | ||||||||||
| Provision for credit losses | 11,180 | 11,891 | 10,041 | 18,384 | 22,965 | |||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||
| Construction and land development | 707 | 677 | 416 | 773 | 214 | |||||||||||||||
| Commercial real estate | 127 | 804 | 471 | 13 | 160 | |||||||||||||||
| Residential real estate | 440 | 172 | 269 | 304 | 1,209 | |||||||||||||||
| Commercial and industrial | 1,243 | 726 | 829 | 800 | 389 | |||||||||||||||
| Consumer | 41 | 44 | 25 | 36 | 47 | |||||||||||||||
| Total recoveries | 2,558 | 2,423 | 2,010 | 1,926 | 2,019 | |||||||||||||||
| Loans charged-off: | ||||||||||||||||||||
| Construction and land development | 2,369 | 1,516 | 4,198 | 3,221 | 3,843 | |||||||||||||||
| Commercial real estate | 2,484 | 4,286 | 6,114 | 7,297 | 12,813 | |||||||||||||||
| Residential real estate | 10,555 | 3,339 | 3,282 | 3,278 | 3,695 | |||||||||||||||
| Commercial and industrial | 1,420 | 5,926 | 1,407 | 2,823 | 5,036 | |||||||||||||||
| Consumer | 1,069 | 1,005 | 1,616 | 1,162 | 1,440 | |||||||||||||||
| Total loans charged-off | 17,897 | 16,072 | 16,617 | 17,781 | 26,827 | |||||||||||||||
| Net loans charged-off | 15,339 | 13,649 | 14,607 | 15,855 | 24,808 | |||||||||||||||
| Balance, end of period | $ | 100,216 | $ | 104,375 | $ | 106,133 | $ | 110,699 | $ | 108,170 | ||||||||||
| Net charge-offs (annualized) to average loans outstanding | 1.40 | % | 1.26 | % | 1.39 | % | 1.52 | % | 2.41 | % | ||||||||||
| Allowance for credit losses to gross loans | 2.21 | 2.37 | 2.48 | 2.61 | 2.59 | |||||||||||||||
| Nonaccrual loans | $ | 113,713 | $ | 112,750 | $ | 114,246 | $ | 116,999 | $ | 130,905 | ||||||||||
| Repossessed assets | 86,692 | 85,732 | 98,312 | 107,655 | 110,096 | |||||||||||||||
| Loans past due 90 days, still accruing | 2,096 | 1,134 | 1,087 | 1,458 | 5,667 | |||||||||||||||
| Loans past due 30 to 89 days, still accruing | 12,414 | 11,581 | 30,689 | 18,164 | 20,432 | |||||||||||||||
| Classified loans on accrual | 110,654 | 126,681 | 128,434 | 140,377 | 156,295 | |||||||||||||||
| Watch loans | 167,571 | 190,045 | 204,470 | 194,905 | 205,114 | |||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Three Months Ended September 30, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| 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) | $ | 1,224.7 | $ | 8,356 | 2.91 | % | $ | 903.3 | $ | 6,075 | 2.80 | % | ||||||||
| Federal funds sold and other | 0.9 | 1 | 0.44 | % | 11.2 | 29 | 1.03 | % | ||||||||||||
| Loans (1) | 4,393.2 | 65,540 | 5.92 | % | 4,115.9 | 64,273 | 6.20 | % | ||||||||||||
| Short term investments | 380.8 | 213 | 0.22 | % | 421.2 | 299 | 0.28 | % | ||||||||||||
| Investment in restricted stock | 35.4 | 23 | 0.26 | % | 39.8 | 29 | 0.29 | % | ||||||||||||
| Total interest earning assets | 6,035.0 | 74,133 | 4.92 | % | 5,491.4 | 70,705 | 5.13 | % | ||||||||||||
| Non-interest earning assets | ||||||||||||||||||||
| Cash and due from banks | 121.7 | 121.3 | ||||||||||||||||||
| Allowance for credit losses | (105.3 | ) | (111.9 | ) | ||||||||||||||||
| Bank owned life insurance | 131.9 | 94.3 | ||||||||||||||||||
| Other assets | 375.0 | 402.1 | ||||||||||||||||||
| Total assets | $ | 6,558.3 | $ | 5,997.2 | ||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 466.2 | $ | 410 | 0.35 | % | $ | 659.3 | $ | 708 | 0.43 | % | ||||||||
| Savings and money market | 2,127.8 | 3,184 | 0.59 | % | 1,890.0 | 4,032 | 0.85 | % | ||||||||||||
| Time certificates of deposit | 1,499.2 | 3,388 | 0.90 | % | 1,341.6 | 4,791 | 1.42 | % | ||||||||||||
| Total interest-bearing deposits | 4,093.2 | 6,982 | 0.68 | % | 3,890.9 | 9,531 | 0.97 | % | ||||||||||||
| Borrowings | 220.7 | 2,101 | 3.78 | % | 118.8 | 970 | 3.24 | % | ||||||||||||
| Junior subordinated and subordinated debt | 42.7 | 465 | 4.32 | % | 36.3 | 736 | 8.04 | % | ||||||||||||
| Total interest-bearing liabilities | 4,356.6 | 9,548 | 0.87 | % | 4,046.0 | 11,237 | 1.10 | % | ||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,532.9 | 1,317.2 | ||||||||||||||||||
| Other liabilities | 33.9 | 27.6 | ||||||||||||||||||
| Stockholders’ equity | 634.9 | 606.4 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,558.3 | $ | 5,997.2 | ||||||||||||||||
| Net interest income and margin | $ | 64,585 | 4.29 | % | $ | 59,468 | 4.32 | % | ||||||||||||
| Net interest spread | 4.05 | % | 4.03 | % | ||||||||||||||||
|
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $634 and $307 for the third quarter ended 2011 and 2010, respectively. |
||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| Average Balance | Interest | Average Yield/ Cost | Average Balance | Interest | Average Yield/ Cost | |||||||||||||||
| Interest earning Assets | ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | ||||||||||||||||
| Investment securities (1) | $ | 1,258.0 | $ | 24,828 | 2.81 | % | $ | 845.2 | $ | 17,679 | 2.91 | % | ||||||||
| Federal funds sold & other | - | 2 | 0.00 | % | 22.2 | 151 | 0.91 | % | ||||||||||||
| Loans (1) | 4,311.6 | 194,341 | 6.03 | % | 4,083.4 | 190,641 | 6.24 | % | ||||||||||||
| Short term investments | 288.0 | 502 | 0.23 | % | 473.1 | 862 | 0.24 | % | ||||||||||||
| Investment in restricted stock | 36.1 | 72 | 0.27 | % | 40.7 | 106 | 0.35 | % | ||||||||||||
| Total interest earnings assets | 5,893.7 | 219,745 | 5.02 | % | 5,464.6 | 209,439 | 5.14 | % | ||||||||||||
| Non-interest earning assets | ||||||||||||||||||||
| Cash and due from banks | 121.4 | 109.7 | ||||||||||||||||||
| Allowance for credit losses | (107.7 | ) | (115.0 | ) | ||||||||||||||||
| Bank owned life insurance | 131.1 | 93.5 | ||||||||||||||||||
| Other assets | 390.6 | 401.0 | ||||||||||||||||||
| Total assets | $ | 6,429.1 | $ | 5,953.8 | ||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||
| Interest bearing transaction accounts | $ | 479.2 | $ | 1,427 | 0.40 | % | $ | 563.7 | $ | 2,223 | 0.53 | % | ||||||||
| Savings and money market | 2,082.0 | 10,426 | 0.67 | % | 1,837.7 | 12,894 | 0.94 | % | ||||||||||||
| Time certificates of deposits | 1,459.7 | 10,575 | 0.97 | % | 1,447.0 | 17,560 | 1.62 | % | ||||||||||||
| Total interest-bearing deposits | 4,020.9 | 22,428 | 0.75 | % | 3,848.4 | 32,677 | 1.14 | % | ||||||||||||
| Borrowings | 224.0 | 6,492 | 3.87 | % | 157.8 | 2,185 | 1.85 | % | ||||||||||||
| Junior subordinated and subordinated debt | 42.9 | 1,856 | 5.78 | % | 71.1 | 2,934 | 5.52 | % | ||||||||||||
| Total interest-bearing liabilities | $ | 4,287.8 | 30,776 | 0.96 | % | $ | 4,077.3 | 37,796 | 1.24 | % | ||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,487.2 | 1,249.4 | ||||||||||||||||||
| Other liabilities | 28.8 | 34.4 | ||||||||||||||||||
| Stockholders’ equity | 625.3 | 592.7 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,429.1 | $ | 5,953.8 | ||||||||||||||||
| Net interest income and margin | $ | 188,969 | 4.32 | % | $ | 171,643 | 4.22 | % | ||||||||||||
| Net interest spread | 4.06 | % | 3.90 | % | ||||||||||||||||
|
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $1,588 and $700 for the nine months September 30, 2011 and 2010, respectively. |
||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||
| Unaudited | Inter- | |||||||||||||||||||||||
| segment | Consoli- | |||||||||||||||||||||||
| Bank | Western | Torrey | elimi- | dated | ||||||||||||||||||||
| of Nevada | Alliance Bank | Pines Bank* | Other | nations | Company | |||||||||||||||||||
| At September 30, 2011 | (dollars in millions) | |||||||||||||||||||||||
| Assets | $ | 2,853.0 | $ | 2,073.1 | $ | 1,623.9 | $ | 752.6 | $ | (756.7 | ) | $ | 6,545.9 | |||||||||||
| Gross loans and deferred fees, net | 1,851.9 | 1,484.8 | 1,232.6 | - | (42.8 | ) | 4,526.5 | |||||||||||||||||
| Less: Allowance for credit losses | (63.4 | ) | (20.2 | ) | (16.6 | ) | - | - | (100.2 | ) | ||||||||||||||
| Net loans | 1,788.5 | 1,464.6 | 1,216.0 | - | (42.8 | ) | 4,426.3 | |||||||||||||||||
| Goodwill | 23.2 | - | - | 2.7 | - | 25.9 | ||||||||||||||||||
| Deposits | 2,466.5 | 1,768.4 | 1,400.3 | - | (2.3 | ) | 5,632.9 | |||||||||||||||||
| Stockholders' equity | 320.2 | 189.2 | 149.2 | 639.5 | (665.8 | ) | 632.3 | |||||||||||||||||
| No. of branches | 12 | 16 | 11 | - | - | 39 | ||||||||||||||||||
| No. of FTE | 409 | 215 | 209 | 78 | - | 911 | ||||||||||||||||||
| Three Months Ended September 30, 2011: | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Net interest income | $ | 26,297 | $ | 20,684 | $ | 19,660 | $ | (2,056 | ) | $ | - | $ | 64,585 | |||||||||||
| Provision for credit losses | 8,319 | 1,275 | 1,586 | - | - | 11,180 | ||||||||||||||||||
| Net interest income (loss) after | ||||||||||||||||||||||||
| provision for credit losses | 17,978 | 19,409 | 18,074 | (2,056 | ) | - | 53,405 | |||||||||||||||||
| Non-interest income | 4,397 | 1,504 | 1,083 | 8,281 | (2,183 | ) | 13,082 | |||||||||||||||||
| Non-interest expense | (20,245 | ) | (12,383 | ) | (10,099 | ) | (4,937 | ) | 2,183 | (45,481 | ) | |||||||||||||
|
Income (loss) from continuing operations before income taxes |
2,130 | 8,530 | 9,058 | 1,288 | - | 21,006 | ||||||||||||||||||
| Income tax expense (benefit) | 441 | 3,009 | 3,680 | 384 | - | 7,514 | ||||||||||||||||||
|
Income(loss) from continuing operations |
1,689 | 5,521 | 5,378 | 904 | - | 13,492 | ||||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (481 | ) | - | (481 | ) | ||||||||||||||||
| Net income (loss) | $ | 1,689 | $ | 5,521 | $ | 5,378 | $ | 423 | $ | - | $ | 13,011 | ||||||||||||
| Nine Months Ended September 30, 2011: |
(in thousands) |
|||||||||||||||||||||||
| Net interest income | $ | 79,582 | $ | 60,450 | $ | 55,588 | $ | (6,651 | ) | $ | 188,969 | |||||||||||||
| Provision for credit losses | 20,622 | 6,606 | 5,883 | - | - | 33,112 | ||||||||||||||||||
| Net interest income (loss) after | ||||||||||||||||||||||||
| provision for credit losses | 58,960 | 53,844 | 49,705 | (6,651 | ) | - | 155,857 | |||||||||||||||||
| Non-interest income | 13,772 | 5,887 | 4,057 | 11,531 | (5,738 | ) | 29,509 | |||||||||||||||||
| Non-interest expense | (64,656 | ) | (37,446 | ) | (30,588 | ) | (17,683 | ) | 5,738 | (144,635 | ) | |||||||||||||
|
Income (loss) from continuing operations before income taxes |
8,076 | 22,285 | 23,174 | (12,803 | ) | - | 40,731 | |||||||||||||||||
| Income tax expense (benefit) | 1,768 | 8,083 | 9,597 | (4,610 | ) | 14,838 | ||||||||||||||||||
|
Income(loss) from continuing operations |
6,308 |
14,202 |
13,577 | (8,193 | ) | - | 25,893 | |||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (1,500 | ) | - | (1,500 | ) | ||||||||||||||||
| Net income (loss) | $ | 6,308 | $ | 14,202 | $ | 13,577 | $ | (9,693 | ) | $ | - | $ | 24,393 | |||||||||||
| * Excludes discontinued operations | ||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||
| Unaudited | Inter- | |||||||||||||||||||||||
| segment | Consoli- | |||||||||||||||||||||||
| Bank | Western | Torrey | elimi- | dated | ||||||||||||||||||||
| of Nevada | Alliance Bank | Pines Bank* | Other | nations | Company | |||||||||||||||||||
| At September 30, 2010: | (dollars in millions) | |||||||||||||||||||||||
| Assets | $ | 2,775.4 | $ | 1,962.1 | $ | 1,404.1 | $ | 735.9 | $ | (698.4 | ) | $ | 6,179.1 | |||||||||||
| Gross loans and deferred fees, net | 1,939.5 | 1,266.8 | 1,009.9 | - | (42.7 | ) | 4,173.5 | |||||||||||||||||
| Less: Allowance for credit losses | (68.2 | ) | (23.4 | ) | (16.6 | ) | - | - | (108.2 | ) | ||||||||||||||
| Net loans | 1,871.3 | 1,243.4 | 993.3 | - | (42.7 | ) | 4,065.3 | |||||||||||||||||
| Goodwill | 23.2 | - | - | 2.7 | - | 25.9 | ||||||||||||||||||
| Deposits | 2,407.5 | 1,730.6 | 1,232.6 | - | (42.2 | ) | 5,328.5 | |||||||||||||||||
| Stockholders' equity | 312.8 | 162.8 | 134.6 | 625.6 | (616.0 | ) | 619.8 | |||||||||||||||||
| No. of branches | 12 | 16 | 11 | - | - | 39 | ||||||||||||||||||
| No. of FTE | 414 | 235 | 201 | 57 | - | 907 | ||||||||||||||||||
| Three Months Ended September 30, 2010: | (in thousands) | |||||||||||||||||||||||
| Net interest income | $ | 26,373 | $ | 18,368 | $ | 15,830 | $ | (1,103 | ) | $ | - | $ | 59,468 | |||||||||||
| Provision for credit losses | 19,600 | 1,199 | 2,166 | - | - | 22,965 | ||||||||||||||||||
|
Net interest income after provision for credit losses |
6,773 | 17,169 | 13,664 | (1,103 | ) | - | 36,503 | |||||||||||||||||
| Non-interest income | 3,435 | 3,382 | 1,150 | 3,810 | 390 | 12,167 | ||||||||||||||||||
| Noninterest expense | (21,154 | ) | (13,707 | ) | (7,882 | ) | (4,462 | ) | 1,096 | (46,109 | ) | |||||||||||||
|
Income (loss) from continuing operations before income taxes |
(10,946 | ) | 6,844 | 6,932 | (1,755 | ) | 1,486 | 2,561 | ||||||||||||||||
| Income tax expense (benefit) | (4,064 | ) | 2,517 | 2,906 | (1,438 | ) | - | (79 | ) | |||||||||||||||
|
Income(loss) from continuing operations |
(6,882 | ) | 4,327 | 4,026 | (317 | ) | 1,486 | 2,640 | ||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (631 | ) | - | (631 | ) | ||||||||||||||||
| Net income (loss) | $ | (6,882 | ) | $ | 4,327 | $ | 4,026 | $ | (948 | ) | $ | 1,486 | $ | 2,009 | ||||||||||
| Nine Months Ended September 30, 2010: |
(in thousands) |
|||||||||||||||||||||||
| Net interest income | $ | 77,680 | $ | 50,226 | $ | 45,401 | $ | (1,664 | ) | $ | - | $ | 171,643 | |||||||||||
| Provision for credit losses | 60,734 | 6,375 | 7,718 | - | - | 74,827 | ||||||||||||||||||
| Net interest income (loss) after | ||||||||||||||||||||||||
| provision for credit losses | 16,946 | 43,851 | 37,683 | (1,664 | ) | - | 96,816 | |||||||||||||||||
| Non-interest income | 17,547 | 7,610 | 3,449 | 17,741 | 1,209 | 47,556 | ||||||||||||||||||
| Non-interest expense | (66,923 | ) | (36,431 | ) | (28,672 | ) | (12,709 | ) | 4,522 | (140,213 | ) | |||||||||||||
|
Income (loss) from continuing operations before income taxes |
(32,430 | ) | 15,030 | 12,460 | 3,368 | 5,731 | 4,159 | |||||||||||||||||
| Income tax expense (benefit) | (11,804 | ) | 5,784 | 5,377 | (1,187 | ) | - | (1,830 | ) | |||||||||||||||
|
Income(loss) from continuing operations |
(20,626 | ) |
9,246 |
7,083 | 4,555 | 5,731 | 5,989 | |||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (2,368 | ) | - | (2,368 | ) | ||||||||||||||||
| Net income (loss) | $ | (20,626 | ) | $ | 9,246 | $ | 7,083 | $ | 2,187 | $ | 5,731 | $ | 3,621 | |||||||||||
| * Excludes discontinued operations | ||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Total stockholder's equity | $ | 632,255 | $ | 615,653 | $ | 601,576 | $ | 602,174 | $ | 619,764 | ||||||||||
| Less: | ||||||||||||||||||||
| Goodwill and intangible assets | 36,622 | 37,511 | 38,401 | 39,291 | 40,180 | |||||||||||||||
| Total tangible stockholders' equity | 595,633 | 578,142 | 563,175 | 562,883 | 579,584 | |||||||||||||||
| Less: | ||||||||||||||||||||
| Preferred stock | 141,000 | 132,333 | 131,580 | 130,827 | 130,094 | |||||||||||||||
| Total tangible common equity | 454,633 | 445,809 | 431,595 | 432,056 | 449,490 | |||||||||||||||
| Add: | ||||||||||||||||||||
| Deferred tax | 3,835 | 4,148 | 4,461 | 4,774 | 5,087 | |||||||||||||||
| Total tangible common equity, net of tax | $ | 458,468 | $ | 449,957 | $ | 436,056 | $ | 436,830 | $ | 454,577 | ||||||||||
| Total assets | $ | 6,545,890 | $ | 6,508,089 | $ | 6,404,838 | $ | 6,193,883 | $ | 6,179,146 | ||||||||||
| Less: | ||||||||||||||||||||
| Goodwill and intangible assets | 36,622 | 37,511 | 38,401 | 39,291 | 40,180 | |||||||||||||||
| Tangible assets | 6,509,268 | 6,470,578 | 6,366,437 | 6,154,592 | 6,138,966 | |||||||||||||||
| Add: | ||||||||||||||||||||
| Deferred tax | 3,835 | 4,148 | 4,461 | 4,774 | 5,087 | |||||||||||||||
| Total tangible assets, net of tax | $ | 6,513,103 | $ | 6,474,726 | $ | 6,370,898 | $ | 6,159,366 | $ | 6,144,053 | ||||||||||
| Tangible equity ratio (1) | 9.1 | % | 8.9 | % | 8.8 | % | 9.1 | % | 9.4 | % | ||||||||||
| Tangible common equity ratio (2) | 7.0 | % | 6.9 | % | 6.8 | % | 7.0 | % | 7.3 | % | ||||||||||
| Common shares outstanding | 82,263 | 82,139 | 82,237 | 81,669 | 81,503 | |||||||||||||||
| Tangible book value per share, net of tax (3) | $ | 5.57 | $ | 5.48 | $ | 5.30 | $ | 5.35 | $ | 5.58 | ||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Total non-interest income | $ | 13,082 | $ | 9,597 | $ | 6,830 | $ | (720 | ) | $ | 12,167 | |||||||||
| Less: | ||||||||||||||||||||
| Mark-to-market (losses) gains, net | 6,420 | 336 | (509 | ) | (6,710 | ) | (210 | ) | ||||||||||||
| Securities impairment charges | - | (226 | ) | - | (12 | ) | - | |||||||||||||
| Gains on sales of investment securities, net | 781 | 2,666 | 1,379 | - | 5,460 | |||||||||||||||
| Gain on extinguishment of debt | - | - | - | - | - | |||||||||||||||
| Gain on sale of subsidiary | - | - | - | - | 568 | |||||||||||||||
| Total operating non-interest income | 5,881 | 6,821 | 5,960 | 6,002 | 6,349 | |||||||||||||||
| Add: net interest income | 64,585 | 63,286 | 61,098 | 60,911 | 59,468 | |||||||||||||||
| Net revenue (4) | $ | 70,466 | $ | 70,107 | $ | 67,058 | $ | 66,913 | $ | 65,817 | ||||||||||
| Total non-interest expense | $ | 45,481 | $ | 51,008 | $ | 48,146 | $ | 56,545 | $ | 46,109 | ||||||||||
| Less: | ||||||||||||||||||||
|
Net loss (gain) on sales/valuations of repossessed assets |
2,128 | 8,633 | 6,129 | 12,991 | 4,855 | |||||||||||||||
| Merger/restructure | 974 | (109 | ) | 217 | 1,651 | - | ||||||||||||||
| Goodwill impairment | - | - | - | - | - | |||||||||||||||
| Total operating non-interest expense (4) | $ | 42,379 | $ | 42,484 | $ | 41,800 | $ | 41,903 | $ | 41,254 | ||||||||||
| Net revenue | $ | 70,466 | $ | 70,107 | $ | 67,058 | $ | 66,913 | $ | 65,817 | ||||||||||
| Less: | ||||||||||||||||||||
| Operating non-interest expense | 42,379 | 42,484 | 41,800 | 41,903 | 41,254 | |||||||||||||||
| Pre-tax, pre-provision operating earnings (5) | $ | 28,087 | $ | 27,623 | $ | 25,258 | $ | 25,010 | $ | 24,563 | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, | June 30, | March 31, | Dec. 31, | Sept. 30, | ||||||||||||||||
| 2011 | 2011 | 2011 | 2010 | 2010 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Total operating non-interest expense | $ | 42,379 | $ | 42,484 | $ | 41,800 | $ | 41,903 | $ | 41,254 | ||||||||||
| Divided by: | ||||||||||||||||||||
| Total net interest income | $ | 64,585 | $ | 63,286 | $ | 61,098 | $ | 60,911 | $ | 59,468 | ||||||||||
| Add: | ||||||||||||||||||||
| Tax equivalent interest adjustment | 634 | 473 | 481 | 464 | 307 | |||||||||||||||
| Operating non-interest income | 5,881 | 6,821 | 5,960 | 6,002 | 6,349 | |||||||||||||||
| $ | 71,100 | $ | 70,580 | $ | 67,539 | $ | 67,377 | $ | 66,124 | |||||||||||
| Efficiency ratio - tax equivalent basis (6) | 59.6 | % | 60.2 | % | 61.9 | % | 62.2 | % | 62.4 | % | ||||||||||
| Three Months Ended | ||||||||||||||||||||
| Sept. 30, | Sept. 30, | |||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Stockholder's equity | $ | 632,255 | $ | 619,764 | ||||||||||||||||
| Less: | ||||||||||||||||||||
| Accumulated other comprehensive (loss) income | (2,945 | ) | (2,598 | ) | ||||||||||||||||
| Non-qualifying goodwill and intangibles | 33,497 | 35,837 | ||||||||||||||||||
| Other non-qualifying assets | 3,038 | 28,919 | ||||||||||||||||||
| Disallowed unrealized losses on equity securities | - | - | ||||||||||||||||||
| Add: | ||||||||||||||||||||
| Qualifying trust preferred securities | 34,348 | 34,326 | ||||||||||||||||||
| Tier 1 capital (regulatory) (7) (10) | 633,013 | 591,932 | ||||||||||||||||||
| Less: | ||||||||||||||||||||
| Qualifying non-controlling interests | 90 | 218 | ||||||||||||||||||
| Qualifying trust preferred securities | 34,348 | 34,326 | ||||||||||||||||||
| Preferred stock | 141,000 | 130,094 | ||||||||||||||||||
| Estimated Tier 1 common equity (8) (10) | $ | 457,575 | $ | 427,294 | ||||||||||||||||
| Divided by: | ||||||||||||||||||||
| Estimated risk-weighted assets (regulatory (8) (10) | $ | 5,345,928 | $ | 4,773,075 | ||||||||||||||||
| Tier 1 common equity ratio (8) (10) | 8.6 | % | 9.0 | % | ||||||||||||||||
| Sept. 30, | Sept. 30, | |||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Classified assets | $ | 311,392 | $ | 398,897 | ||||||||||||||||
| Divide: | ||||||||||||||||||||
| Tier 1 capital (regulatory) (7) (10) | 633,013 | 591,932 | ||||||||||||||||||
| Plus: Allowance for credit losses | 100,216 | 108,170 | ||||||||||||||||||
| Total Tier 1 capital plus allowance for credit losses | $ | 733,229 | $ | 700,102 | ||||||||||||||||
| Classified assets to Tier 1 capital plus allowance (9) (10) | 42 | % | 57 | % | ||||||||||||||||
|
(1) We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength. |
|
(2) We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength. |
|
(3) We believe this non-GAAP ratio improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles. |
| (4) We believe this non-GAAP measurement is better indicative of the cash generating capacity of the Company. |
|
(5) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company which is otherwise obscured by the asset quality issues. |
| (6) We believe this non-GAAP ratio provides understanding of the operating efficiency of the Company. |
|
(7) Under the guidelines of the Federal Reserve and the FDIC in effect at December 31, 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 this sum is the risk-weighted assets total that, as adjusted, comprises the denominator (risk-weighted assets) to determine the Tier 1 capital ratio. Adjustments are made to Tier 1 capital to arrive at Tier 1 common equity. Tier 1 common equity is also divided by the risk-weighted assets to determine the Tier 1 common equity ratio. We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength. |
| (9) We believe this non-GAAP ratio provides a critical regulatory metric in which to analyze asset quality. |
| (10) Preliminary until Call Reports are filed. |
CONTACT:
Western Alliance Bancorporation
Dale Gibbons, 602-952-5476