Attached files
| file | filename |
|---|---|
| 8-K - WESTERN ALLIANCE BANCORPORATION 8-K - WESTERN ALLIANCE BANCORPORATION | a50344852.htm |
| EX-99.2 - EXHIBIT 99.2 - WESTERN ALLIANCE BANCORPORATION | a50344852_ex992.htm |
Exhibit 99.1
Western Alliance Reports Second Quarter 2012 Net Income of $14.0 Million, or $0.15 Per Share
- Loan Growth of $239 Million
- Deposit Growth of $102 Million
- SBLF Dividend Rate to Decline to 1% in Third Quarter
PHOENIX--(BUSINESS WIRE)--July 19, 2012--Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the second quarter 2012.
Second Quarter 2012 Highlights:
- Net income of $14.0 million, an increase of 23.9% compared to $11.3 million for the first quarter 2012 and an increase of 126% compared to $6.2 million for the second quarter 2011
- Earnings per share of $0.15, an increase of 25% compared to $0.12 per share for the first quarter 2012 and an increase of three times compared to $0.05 per share in the second quarter 2011
- Pre-tax, pre-provision operating earnings of $32.1 million, up from $31.7 million in first quarter 2012 and up 16.3% from $27.6 million in second quarter 20111
- Net interest margin of 4.46% compared to 4.53% in the first quarter of 2012 and 4.34% in the second quarter 2011
- Total loans of $5.16 billion, up $239 million from March 31, 2012, and up $753 million from June 30, 2011
- Total deposits of $6.0 billion, up $102 million from March 31, 2012 and up $413 million from June 30, 2011
- Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 2.5% of total assets from 2.7% in first quarter 2012 and 3.1% in second quarter 2011
- Net loan charge-offs (annualized) to average loans outstanding declined to 1.11% from 1.18% in the first quarter 2012 and 1.26% in the second quarter of 2011
- Tier I Leverage capital of 9.7% and Total Risk-Based Capital ratio of 12.3%, compared to 9.5% and 13.1% a year ago
- Total equity of $672.1 million, up $18.0 million from March 31, 2012 and up $35.4 million from December 31, 2011
Financial Performance
“Our strong growth trends continued in the second quarter with record revenue during the period and tripling our earnings per share from a year ago,” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. “With over $300 million in both loan and deposit growth in 2012, we have maintained our earnings power momentum while continuing to improve the asset quality composition of our balance sheet. From our success in achieving the goals as a participant in the Small Business Lending Fund, we expect to see the dividend rate on our preferred stock fall to one percent this quarter from 3.7 percent during the second.”
Ken Vecchione, President and Chief Operating Officer, added, “Our record revenue, coupled with improved efficiency, drove our pre-tax, pre-credit income to $32.1 million during the second quarter, a new high.1 This quarter, REO valuations/losses declined to less than $1 million as some properties in our REO portfolio experienced increases in appraised values. Offsetting the good news this quarter, charge-offs and the provision for loan losses remained flat to the prior quarter. Nevada asset quality has not exhibited the same rate of improvement as California or Arizona.”
Western Alliance Bancorporation reported net income of $14.0 million, or $0.15 per share, in the second quarter 2012 including a $0.6 million after-tax charge from repossessed assets valuations/sales and a $1.1 million after tax gain from securities sales.
Total loans increased $239 million, or 4.9 percent, to $5.16 billion at June 30, 2012 from $4.93 billion on March 31, 2012. This increase was primarily driven by growth in commercial and industrial loans, commercial leases and commercial real estate loans. Loans increased $753 million from June 30, 2011.
Total deposits increased $102 million, or 1.7 percent, to $6.0 billion at June 30, 2012 from $5.90 billion at March 31, 2012, with growth primarily in money market accounts, non-interest bearing demand and interest bearing demand partially offset by declines in certificates of deposit. Deposits increased $413 million from June 30, 2011.
Income Statement
Net interest income was $70.8 million in the second quarter 2012, an increase of 1.0 percent compared to the first quarter 2012 and 11.9 percent compared to the second quarter 2011. The Company’s net interest margin in the second quarter 2012 was 4.46 percent compared to 4.53 percent in the first quarter 2012 and 4.34 percent in the second quarter 2011.
Operating non-interest income was $5.8 million for the second quarter 2012, almost flat from $5.9 million for the first quarter of 2012 and a decrease from $6.8 million for the second quarter of 2011.1
Net revenue was $76.6 million for the second quarter 2012, a 1.0 percent increase from $75.9 million for the first quarter of 2012 and 9.3 percent from $70.1 million for the second quarter 2011.1
Operating non-interest expense was $44.5 million for the second quarter 2012, compared to $44.2 million for the first quarter of 2012 and $42.3 million for the second quarter of 2011.1 The Company’s operating efficiency ratio on a tax equivalent basis was 56.4 percent for the second quarter 2012, improved from 60.2 percent for the second quarter 2011.1
The Company had 953 full-time equivalent employees June 30, 2012, compared to 908 one year ago.
A key performance metric for the Company is its pre-tax, pre-provision operating earnings, which it defines as net operating revenue less its operating non-interest expense. For the second quarter 2012, the Company’s performance on this metric was $32.1 million, up from $31.7 million in the first quarter 2012 and $27.6 million in the second quarter 2011.1
The provision for credit losses was $13.3 million for the second quarter 2012 compared to $13.1 million for the first quarter 2012. The provision for the second quarter of 2011 was $11.9 million. Net loan charge-offs in the second quarter 2012 were $13.9 million, or 1.11 percent of average loans (annualized), down from 1.18 percent of average loans (annualized) for the first quarter 2012. Net charge-offs for the second quarter 2011 were $13.6 million or 1.26% of average loans (annualized).
Nonaccrual loans increased slightly to $104.3 million during the quarter. Loans past due 90 days and still accruing interest totaled $0.8 million at June 30, 2012, down from $1.0 million at March 31, 2012 and $1.1 million at June 30, 2011. Loans past due 30-89 days totaled $13.8 million at quarter end, up from $12.0 million at March 31, 2012 and from $11.6 million at June 30, 2011.
Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 42 percent at June 30, 2012 from 46 percent at June 30, 2011.1
Net loss on sales and valuation of repossessed assets (primarily other real estate) was $0.9 million for the second quarter of 2012 compared to $2.7 million for the first quarter 2012 and $8.6 million in the second quarter 2011. At June 30, 2012, other repossessed assets were valued at $77 million compared to $81 million at March 31, 2012 and $86 million one year ago.
Balance Sheet
Gross loans totaled $5.16 billion at June 30, 2012, an increase of $239 million from March 31, 2012 and an increase of $753 million from $4.41 billion at June 30, 2011. At June 30, 2012 the allowance for credit losses was 1.89 percent of total loans, down from 1.99 percent at March 31, 2012 and 2.37 percent at June 30, 2011.
Deposits totaled $6.0 billion at June 30, 2012, an increase of $102 million from $5.90 billion at March 31, 2012 and an increase of $413 million from $5.59 billion at June 30, 2011.
Non-interest bearing deposits increased $84 million at June 30, 2012 from March 31, 2012 and increased $325 million from $1.52 billion at June 30, 2011. Non-interest bearing deposits comprised 30.7 percent of total deposits at June 30, 2012, compared to 27.1 percent a year ago.
At June 30, 2012, the Company’s loans were 86.1 percent of deposits compared to 83.5 percent at March 31, 2012 and 79.0 percent at June 30, 2011.
Stockholders’ equity at June 30, 2012 increased to $672.1 million from $654.1 million at March 31, 2012. At June 30, 2012, tangible common equity was 7.0 percent of tangible assets1 and total risk-based capital was 12.3 percent of risk-weighted assets.
Total assets increased to $7.16 billion at June 30, 2012 from $6.93 billion at March 31, 2012 and increased 10.0 percent from $6.51 billion at June 30, 2011.
Operating Unit Highlights
Bank of Nevada reported that loans increased by $76 million during the second quarter of 2012, primarily due to intercompany transfers from Western Alliance Bank, and increased $147 million during the last 12 months to $2.0 billion at June 30, 2012. Deposits decreased slightly in the second quarter of 2012 and decreased $18 million over the last twelve months to $2.43 billion. Net income for Bank of Nevada was $3.8 million for the second quarter 2012, compared with net income of $1.0 million for the first quarter of 2012 and net income of $3.7 million during the second quarter 2011.
Western Alliance Bank reported loan growth of $74 million during the second quarter 2012 and $354 million during the last 12 months to $1.78 billion. Deposits increased $45 million in the second quarter and $238 million during the last 12 months to $2.0 billion. Net income for Western Alliance Bank was $7.8 million during the second quarter 2012 compared with net income of $9.8 million during the first quarter of 2012 and net income of $3.8 million during the second quarter 2011.
The Torrey Pines Bank segment, which excludes discontinued operations, reported that loans increased $89 million during the second quarter 2012 and $251 million during the last 12 months to $1.42 billion. Deposits increased $62 million in the second quarter 2012 and $211 million over the last 12 months to $1.59 billion. Net income for Torrey Pines Bank was $5.3 million during the second quarter 2012 compared with net income of $5.8 million for the first quarter of 2012 and net income of $4.2 million during the second quarter 2011.
Attached to this press release is summarized financial information for the quarter ended June 30, 2012.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2012 financial results at 12:00 p.m. ET on Friday, July 20, 2012. Participants may access the call by dialing 1-866-843-0890 and using passcode: 9684410 or via live audio webcast using the website link: https://services.choruscall.com/links/wal120720.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 July 20th through September 4th at 9:00 a.m. ET by dialing 1-877-344-7529 using the conference number 10016260.
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 Six Months | |||||||||||||||||||||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||||||||||||||||||||
| 2012 | 2011 | Change % | 2012 | 2011 | Change % | |||||||||||||||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||||
| Total assets | $ | 7,163.6 | $ | 6,508.1 | 10.1 | % | ||||||||||||||||||||||||||||
| Loans, net of deferred fees | 5,164.8 | 4,411.7 | 17.1 | |||||||||||||||||||||||||||||||
| Securities and money market investments | 1,401.5 | 1,138.2 | 23.1 | |||||||||||||||||||||||||||||||
| Total deposits | 6,001.4 | 5,588.3 | 7.4 | |||||||||||||||||||||||||||||||
| Borrowings | 390.4 | 221.8 | 76.0 | |||||||||||||||||||||||||||||||
| Junior subordinated debt | 36.7 | 42.7 | (14.1 | ) | ||||||||||||||||||||||||||||||
| Stockholders' equity | 672.1 | 615.7 | 9.2 | |||||||||||||||||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||
| Interest income | $ | 77,846 | $ | 73,646 | 5.7 | % | $ | 155,283 | $ | 145,612 | 6.6 | % | ||||||||||||||||||||||
| Interest expense | 7,041 | 10,360 | (32.0 | ) | 14,421 | 21,227 | (32.1 | ) | ||||||||||||||||||||||||||
| Net interest income | 70,805 | 63,286 | 11.9 | 140,862 | 124,385 | 13.2 | ||||||||||||||||||||||||||||
| Provision for loan losses | 13,330 | 11,891 | 12.1 | 26,411 | 21,932 | 20.4 | ||||||||||||||||||||||||||||
| Net interest income after provision for credit losses | 57,475 | 51,395 | 11.8 | 114,451 | 102,453 | 11.7 | ||||||||||||||||||||||||||||
| Non-interest income | 7,397 | 9,597 | (22.9 | ) | 13,281 | 16,427 | (19.2 | ) | ||||||||||||||||||||||||||
| Non-interest expense | 45,431 | 51,008 | (10.9 | ) | 92,328 | 99,155 | (6.9 | ) | ||||||||||||||||||||||||||
|
Income from continuing operations before income taxes |
19,441 | 9,984 | 94.7 | 35,404 | 19,725 | 79.5 | ||||||||||||||||||||||||||||
| Income tax expense | 5,259 | 3,295 | 59.6 | 9,700 | 7,324 | 32.4 | ||||||||||||||||||||||||||||
| Income from continuing operations | 14,182 | 6,689 | 112.0 | 25,704 | 12,401 | 107.3 | % | |||||||||||||||||||||||||||
| Loss on discontinued operations, net | (221 | ) | (460 | ) | 52.0 | (443 | ) | (1,019 | ) | |||||||||||||||||||||||||
| Net income | $ | 13,961 | $ | 6,229 | 124.1 | % | $ | 25,261 | $ | 11,382 | ||||||||||||||||||||||||
| Diluted net income per common share from continuing operations | $ | 0.16 | $ | 0.05 | $ | 0.28 | $ | 0.09 | ||||||||||||||||||||||||||
| Diluted net loss per common share from discontinued operations, net of tax | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | |||||||||||||||||||||||
| Diluted net income per common share | $ | 0.15 | $ | 0.05 | 200.0 | % | $ | 0.27 | $ | 0.08 | 243.6 | % | ||||||||||||||||||||||
| Common Share Data: | ||||||||||||||||||||||||||||||||||
| Diluted net income per common share | $ | 0.15 | $ | 0.05 | 200.0 | % | $ | 0.27 | $ | 0.08 | 243.6 | % | ||||||||||||||||||||||
| Book value per common share | $ | 6.39 | $ | 5.89 | 8.5 | % | ||||||||||||||||||||||||||||
| Tangible book value per share, net of tax (1) | $ | 6.01 | $ | 5.48 | 9.7 | % | ||||||||||||||||||||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||||
| Basic | 81,590 | 80,883 | 0.9 | 81,475 | 80,838 | 0.8 | ||||||||||||||||||||||||||||
| Diluted | 81,955 | 81,223 | 0.9 | 82,091 | 81,119 | 1.2 | ||||||||||||||||||||||||||||
| Common shares outstanding | 83,157 | 82,139 | 1.2 | |||||||||||||||||||||||||||||||
| (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 Six Months | |||||||||||||||||||||||||||||||||
| Ended June 30, |
Ended June 30, |
|||||||||||||||||||||||||||||||||
| 2012 | 2011 | Change % | 2012 | 2011 | Change % | |||||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||||||||||||
| Return on average assets (1) | 0.80 | % | 0.39 | % | 105.1 | % | 0.74 | % | 0.36 | % | 105.6 | % | ||||||||||||||||||||||
| Return on average stockholders' equity (1) | 8.48 | 3.98 | 113.1 | 7.73 | 3.70 | 108.9 | ||||||||||||||||||||||||||||
| Net interest margin (1) | 4.46 | 4.34 | 2.8 | 4.49 | 4.34 | 3.5 | ||||||||||||||||||||||||||||
| Net interest spread | 4.27 | 4.08 | 4.7 | 4.31 | 4.07 | 5.9 | ||||||||||||||||||||||||||||
| Efficiency ratio - tax equivalent basis (2) | 56.44 | 60.19 | (6.2 | ) | ||||||||||||||||||||||||||||||
| Loan to deposit ratio | 86.06 | 78.95 | 9.0 | |||||||||||||||||||||||||||||||
| Capital Ratios: | ||||||||||||||||||||||||||||||||||
| Tangible equity (2) | 8.9 | % | 8.9 | % | 0.2 | % | ||||||||||||||||||||||||||||
| Tangible common equity (2) | 7.0 | 6.9 | 1.2 | |||||||||||||||||||||||||||||||
| Tier one common equity (2) | 8.0 | 8.4 | (4.7 | ) | ||||||||||||||||||||||||||||||
| Tier 1 Leverage ratio (3) | 9.7 | 9.5 | 2.1 | |||||||||||||||||||||||||||||||
| Tier 1 Risk Based Capital (3) | 11.0 | 11.8 | (6.8 | ) | ||||||||||||||||||||||||||||||
| Total Risk Based Capital (3) | 12.3 | 13.1 | (6.1 | ) | ||||||||||||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans outstanding (1) | 1.11 | % | 1.26 | % | (11.9 | ) | % | 1.15 | % | 1.32 | % | (12.9 | ) | % | ||||||||||||||||||||
| Nonaccrual loans to gross loans | 2.02 | 2.56 | (21.1 | ) | ||||||||||||||||||||||||||||||
| Nonaccrual loans and repossessed assets to total assets | 2.53 | 3.05 | (17.0 | ) | ||||||||||||||||||||||||||||||
| Loans past due 90 days and still accruing to total loans | 0.02 | 0.03 | (33.3 | ) | ||||||||||||||||||||||||||||||
| Allowance for credit losses to loans | 1.89 | 2.37 | (20.3 | ) | ||||||||||||||||||||||||||||||
| Allowance for credit losses to nonaccrual loans | 93.47 | 92.57 | 1.0 | |||||||||||||||||||||||||||||||
| (1) Annualized for the three and six month periods ended June 30, 2012 and 2011. See tables on page 12 and 13. | ||||||||||||||||||||||||||||||||||
| (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 Income Statements | ||||||||||||||||||||||
| Unaudited | Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||
| Interest income: | (dollars in thousands) | |||||||||||||||||||||
| Loans | $ | 68,342 | $ | 64,919 | $ | 136,102 | $ | 128,801 | ||||||||||||||
| Investment securities | 9,389 | 8,542 | 18,974 | 16,472 | ||||||||||||||||||
| Federal funds sold and other | 115 | 185 | 207 | 339 | ||||||||||||||||||
| Total interest income | 77,846 | 73,646 | 155,283 | 145,612 | ||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||
| Deposits | 4,168 | 7,548 | 8,930 | 15,446 | ||||||||||||||||||
| Customer repurchase agreements | 58 | 100 | 122 | 186 | ||||||||||||||||||
| Borrowings | 2,328 | 2,023 | 4,398 | 4,204 | ||||||||||||||||||
| Junior subordinated debt | 487 | 689 | 971 | 1,391 | ||||||||||||||||||
| Total interest expense | 7,041 | 10,360 | 14,421 | 21,227 | ||||||||||||||||||
| Net interest income | 70,805 | 63,286 | 140,862 | 124,385 | ||||||||||||||||||
| Provision for credit losses | 13,330 | 11,891 | 26,411 | 21,932 | ||||||||||||||||||
| Net interest income after provision for credit losses | 57,475 | 51,395 | 114,451 | 102,453 | ||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||
|
Unrealized gains (losses) on assets/liabilities measured at fair value, net |
564 | 336 | 232 | (173 | ) | |||||||||||||||||
| Securities impairment charges | - | (226 | ) | - | (226 | ) | ||||||||||||||||
| Gains on sales of investment securities, net | 1,110 | 2,666 | 1,471 | 4,045 | ||||||||||||||||||
| Service charges | 2,317 | 2,243 | 4,602 | 4,527 | ||||||||||||||||||
| Bank owned life insurance | 1,120 | 1,822 | 2,243 | 3,006 | ||||||||||||||||||
| Other | 2,286 | 2,756 | 4,733 | 5,248 | ||||||||||||||||||
| 7,397 | 9,597 | 13,281 | 16,427 | |||||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||||
| Salaries and employee benefits | 25,995 | 22,960 | 52,659 | 45,800 | ||||||||||||||||||
| Occupancy | 4,669 | 5,044 | 9,391 | 9,898 | ||||||||||||||||||
| Net loss on sales and valuations of repossessed assets | 901 | 8,633 | 3,552 | 14,762 | ||||||||||||||||||
| Insurance | 2,152 | 2,352 | 4,202 | 6,214 | ||||||||||||||||||
| Loan and repossessed asset expenses | 1,653 | 2,284 | 3,337 | 4,406 | ||||||||||||||||||
| Legal, professional and director's fees | 2,517 | 2,361 | 4,089 | 3,727 | ||||||||||||||||||
| Marketing | 1,459 | 1,135 | 2,830 | 2,292 | ||||||||||||||||||
| Data Processing | 1,293 | 928 | 2,288 | 1,776 | ||||||||||||||||||
| Intangible amortization | 890 | 890 | 1,779 | 1,779 | ||||||||||||||||||
| Customer service | 682 | 828 | 1,274 | 1,720 | ||||||||||||||||||
| Merger/restructure expense | - | (109 | ) | - | 109 | |||||||||||||||||
| Other | 3,220 | 3,702 | 6,927 | 6,672 | ||||||||||||||||||
| 45,431 | 51,008 | 92,328 | 99,155 | |||||||||||||||||||
| Income from continuing operations before income taxes | 19,441 | 9,984 | 35,404 | 19,725 | ||||||||||||||||||
| Income tax expense | 5,259 | 3,295 | 9,700 | 7,324 | ||||||||||||||||||
| Income from continuing operations | 14,182 | 6,689 | 25,704 | 12,401 | ||||||||||||||||||
| Loss from discontinued operations net of tax benefit | (221 | ) | (460 | ) | (443 | ) | (1,019 | ) | ||||||||||||||
| Net income | 13,961 | 6,229 | 25,261 | 11,382 | ||||||||||||||||||
| Preferred stock dividends | 1,325 | 1,750 | 3,088 | 3,500 | ||||||||||||||||||
| Accretion on preferred stock discount | - | 753 | - | 1,506 | ||||||||||||||||||
| Net income available to common stockholders | $ | 12,636 | $ | 3,726 | $ | 22,173 | $ | 6,376 | ||||||||||||||
| Diluted net income per share | $ | 0.15 | $ | 0.05 | $ | 0.27 | $ | 0.08 | ||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Five Quarter Condensed Consolidated Income Statements | ||||||||||||||||||||||||||
| Unaudited | Three Months Ended | |||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
| Interest income: | (in thousands, except per share data) | |||||||||||||||||||||||||
| Loans | $ | 68,342 | $ | 67,760 | $ | 67,102 | $ | 65,540 | $ | 64,919 | ||||||||||||||||
| Investment securities | 9,389 | 9,585 | 9,591 | 8,356 | 8,542 | |||||||||||||||||||||
| Federal funds sold and other | 115 | 92 | 153 | 237 | 185 | |||||||||||||||||||||
| Total interest income | 77,846 | 77,437 | 76,846 | 74,133 | 73,646 | |||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||
| Deposits | 4,168 | 4,762 | 5,549 | 6,982 | 7,548 | |||||||||||||||||||||
| Borrowings and customer repurchase agreements | 2,386 | 2,134 | 2,126 | 2,101 | 2,123 | |||||||||||||||||||||
| Junior subordinated and subordinated debt | 487 | 484 | 472 | 465 | 689 | |||||||||||||||||||||
| Total interest expense | 7,041 | 7,380 | 8,147 | 9,548 | 10,360 | |||||||||||||||||||||
| Net interest income | 70,805 | 70,057 | 68,699 | 64,585 | 63,286 | |||||||||||||||||||||
| Provision for credit losses | 13,330 | 13,081 | 13,076 | 11,180 | 11,891 | |||||||||||||||||||||
| Net interest income after provision for credit losses | 57,475 | 56,976 | 55,623 | 53,405 | 51,395 | |||||||||||||||||||||
| Non-interest income | ||||||||||||||||||||||||||
| Mark-to-market gains (losses), net | 564 | (333 | ) | (626 | ) | 6,420 | 336 | |||||||||||||||||||
| Securities impairment charges | - | - | - | - | (226 | ) | ||||||||||||||||||||
| Gains on sales of investment securities, net | 1,110 | 361 | (28 | ) | 781 | 2,666 | ||||||||||||||||||||
| Service charges | 2,317 | 2,285 | 2,238 | 2,337 | 2,243 | |||||||||||||||||||||
| Bank owned life insurance | 1,120 | 1,123 | 1,177 | 1,189 | 1,822 | |||||||||||||||||||||
| Other | 2,286 | 2,448 | 2,187 | 2,355 | 2,756 | |||||||||||||||||||||
| 7,397 | 5,884 | 4,948 | 13,082 | 9,597 | ||||||||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||||||||
| Salaries and employee benefits | 25,995 | 26,664 | 24,021 | 23,319 | 22,960 | |||||||||||||||||||||
| Occupancy | 4,669 | 4,722 | 4,948 | 5,126 | 5,044 | |||||||||||||||||||||
| Insurance | 2,152 | 2,050 | 2,166 | 2,664 | 2,352 | |||||||||||||||||||||
| Loan and repossessed asset expenses | 1,653 | 1,684 | 1,661 | 2,059 | 2,284 | |||||||||||||||||||||
| Net loss on sales and valuations of repossessed assets | 901 | 2,651 | 7,702 | 2,128 | 8,633 | |||||||||||||||||||||
| Legal, professional and director's fees | 2,517 | 1,572 | 2,039 | 1,912 | 2,361 | |||||||||||||||||||||
| Marketing | 1,459 | 1,371 | 1,294 | 1,090 | 1,135 | |||||||||||||||||||||
| Intangible amortization | 890 | 890 | 889 | 890 | 890 | |||||||||||||||||||||
| Customer service | 682 | 591 | 716 | 900 | 828 | |||||||||||||||||||||
| Data Processing | 1,293 | 995 | 895 | 895 | 928 | |||||||||||||||||||||
| Merger/restructure expense | - | - | 482 | 974 | (109 | ) | ||||||||||||||||||||
| Other | 3,220 | 3,707 | 4,150 | 3,524 | 3,702 | |||||||||||||||||||||
| 45,431 | 46,897 | 50,963 | 45,481 | 51,008 | ||||||||||||||||||||||
| Income from continuing operations before income taxes | 19,441 | 15,963 | 9,608 | 21,006 | 9,984 | |||||||||||||||||||||
| Income tax expense | 5,259 | 4,441 | 2,011 | 7,514 | 3,295 | |||||||||||||||||||||
| Income from continuing operations | $ | 14,182 | $ | 11,522 | $ | 7,597 | $ | 13,492 | $ | 6,689 | ||||||||||||||||
| Loss from discontinued operations, net of tax | (221 | ) | (222 | ) | (496 | ) | (481 | ) | (460 | ) | ||||||||||||||||
| Net income | $ | 13,961 | $ | 11,300 | $ | 7,101 | $ | 13,011 | $ | 6,229 | ||||||||||||||||
| Preferred stock dividends | 1,325 | 1,763 | 1,781 | 1,752 | 1,750 | |||||||||||||||||||||
| Accretion on preferred stock | - | - | - | 7,667 | 753 | |||||||||||||||||||||
| Net Income available to common stockholders | $ | 12,636 | $ | 9,537 | $ | 5,320 | $ | 3,592 | $ | 3,726 | ||||||||||||||||
| Diluted net income per share | $ | 0.15 | $ | 0.12 | $ | 0.07 | $ | 0.04 | $ | 0.05 | ||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
| Assets: | (in millions) | |||||||||||||||||||||||||
| Cash and due from banks | $ | 178.9 | $ | 179.8 | $ | 155.0 | $ | 306.0 | $ | 534.6 | ||||||||||||||||
| Securities and money market investments | 1,401.5 | 1,423.2 | 1,490.5 | 1,304.6 | 1,138.2 | |||||||||||||||||||||
| Loans: | ||||||||||||||||||||||||||
| Commercial | 1,573.6 | 1,436.5 | 1,336.6 | 1,152.9 | 1,029.5 | |||||||||||||||||||||
| Commercial real estate - owner occupied | 1,310.3 | 1,289.9 | 1,252.2 | 1,225.4 | 1,285.3 | |||||||||||||||||||||
| Construction and land development | 360.6 | 347.7 | 381.7 | 404.4 | 396.3 | |||||||||||||||||||||
| Commercial real estate - non-owner occupied | 1,440.4 | 1,365.6 | 1,301.2 | 1,239.8 | 1,170.0 | |||||||||||||||||||||
| Residential real estate | 430.4 | 434.5 | 443.0 | 450.2 | 473.9 | |||||||||||||||||||||
| Consumer | 55.8 | 58.7 | 72.5 | 60.3 | 62.6 | |||||||||||||||||||||
| Deferred fees, net | (6.3 | ) | (6.7 | ) | (7.1 | ) | (6.5 | ) | (5.9 | ) | ||||||||||||||||
| 5,164.8 | 4,926.2 | 4,780.1 | 4,526.5 | 4,411.7 | ||||||||||||||||||||||
| Allowance for credit losses | (97.5 | ) | (98.1 | ) | (99.2 | ) | (100.2 | ) | (104.4 | ) | ||||||||||||||||
| Loans, net | 5,067.3 | 4,828.1 | 4,680.9 | 4,426.3 | 4,307.3 | |||||||||||||||||||||
| Premises and equipment, net | 106.9 | 105.1 | 105.5 | 106.2 | 109.2 | |||||||||||||||||||||
| Other repossessed assets | 77.0 | 81.4 | 89.1 | 86.7 | 85.7 | |||||||||||||||||||||
| Bank owned life insurance | 136.1 | 135.0 | 133.9 | 132.7 | 131.5 | |||||||||||||||||||||
| Goodwill and other intangibles | 34.0 | 34.8 | 35.7 | 36.6 | 37.5 | |||||||||||||||||||||
| Other assets | 161.9 | 137.9 | 153.9 | 146.8 | 164.1 | |||||||||||||||||||||
| Total assets | $ | 7,163.6 | $ | 6,925.3 | $ | 6,844.5 | $ | 6,545.9 | $ | 6,508.1 | ||||||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,842.1 | $ | 1,757.7 | $ | 1,558.2 | $ | 1,519.0 | $ | 1,516.8 | ||||||||||||||||
| Interest bearing | ||||||||||||||||||||||||||
| Demand | 540.6 | 527.2 | 482.7 | 466.0 | 456.5 | |||||||||||||||||||||
| Savings and money market | 2,438.4 | 2,224.1 | 2,166.6 | 2,151.9 | 2,105.4 | |||||||||||||||||||||
| Time certificates | 1,180.3 | 1,390.1 | 1,451.0 | 1,496.0 | 1,509.6 | |||||||||||||||||||||
| Total deposits | 6,001.4 | 5,899.1 | 5,658.5 | 5,632.9 | 5,588.3 | |||||||||||||||||||||
| Customer repurchase agreements | 86.9 | 114.4 | 123.6 | 142.6 | 148.7 | |||||||||||||||||||||
| Total customer funds | 6,088.3 | 6,013.5 | 5,782.1 | 5,775.5 | 5,737.0 | |||||||||||||||||||||
| Borrowings | 303.5 | 193.4 | 353.3 | 73.2 | 73.1 | |||||||||||||||||||||
| Junior subordinated debt | 36.7 | 37.3 | 37.0 | 36.3 | 42.7 | |||||||||||||||||||||
| Accrued interest payable and other liabilities | 63.0 | 27.0 | 35.4 | 28.6 | 39.6 | |||||||||||||||||||||
| Total liabilities | 6,491.5 | 6,271.2 | 6,207.8 | 5,913.6 | 5,892.4 | |||||||||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||||||||
| Common stock and additional paid-in capital | 748.1 | 746.2 | 743.8 | 743.0 | 741.6 | |||||||||||||||||||||
| Preferred Stock | 141.0 | 141.0 | 141.0 | 141.0 | 132.3 | |||||||||||||||||||||
| Accumulated deficit | (221.3 | ) | (234.0 | ) | (243.5 | ) | (248.8 | ) | (252.4 | ) | ||||||||||||||||
| Accumulated other comprehensive income (loss) | 4.3 | 0.9 | (4.6 | ) | (2.9 | ) | (5.8 | ) | ||||||||||||||||||
| Total stockholders' equity | 672.1 | 654.1 | 636.7 | 632.3 | 615.7 | |||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,163.6 | $ | 6,925.3 | $ | 6,844.5 | $ | 6,545.9 | $ | 6,508.1 | ||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Changes in the Allowance For Credit Losses | ||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Balance, beginning of period | $ | 98,122 | $ | 99,170 | $ | 100,216 | $ | 104,375 | $ | 106,133 | ||||||||||||||||
| Provision for credit losses | 13,330 | 13,081 | 13,076 | 11,180 | 11,891 | |||||||||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||||||||
| Construction and land development | 217 | 86 | 354 | 707 | 677 | |||||||||||||||||||||
| Commercial real estate | 561 | 1,705 | 755 | 127 | 804 | |||||||||||||||||||||
| Residential real estate | 274 | 340 | 179 | 440 | 172 | |||||||||||||||||||||
| Commercial and industrial | 1,417 | 777 | 603 | 1,243 | 726 | |||||||||||||||||||||
| Consumer | 214 | 38 | 64 | 41 | 44 | |||||||||||||||||||||
| Total recoveries | 2,683 | 2,946 | 1,955 | 2,558 | 2,423 | |||||||||||||||||||||
| Loans charged-off: | ||||||||||||||||||||||||||
| Construction and land development | 3,185 | 5,087 | 3,155 | 2,369 | 1,516 | |||||||||||||||||||||
| Commercial real estate | 5,641 | 4,912 | 9,244 | 2,484 | 4,286 | |||||||||||||||||||||
| Residential real estate | 2,094 | 1,420 | 1,895 | 10,555 | 3,339 | |||||||||||||||||||||
| Commercial and industrial | 4,933 | 3,654 | 1,004 | 1,420 | 5,926 | |||||||||||||||||||||
| Consumer | 770 | 2,002 | 779 | 1,069 | 1,005 | |||||||||||||||||||||
| Total loans charged-off | 16,623 | 17,075 | 16,077 | 17,897 | 16,072 | |||||||||||||||||||||
| Net loans charged-off | 13,940 | 14,129 | 14,122 | 15,339 | 13,649 | |||||||||||||||||||||
| Balance, end of period | $ | 97,512 | $ | 98,122 | $ | 99,170 | $ | 100,216 | $ | 104,375 | ||||||||||||||||
| Net charge-offs (annualized) to average loans outstanding | 1.11 | % | 1.18 | % | 1.24 | % | 1.40 | % | 1.26 | % | ||||||||||||||||
| Allowance for credit losses to gross loans | 1.89 | 1.99 | 2.07 | 2.21 | 2.37 | |||||||||||||||||||||
| Nonaccrual loans | $ | 104,324 | $ | 103,486 | $ | 90,392 | $ | 113,713 | $ | 112,750 | ||||||||||||||||
| Repossessed assets | 76,994 | 81,445 | 89,104 | 86,692 | 85,732 | |||||||||||||||||||||
| Loans past due 90 days, still accruing | 795 | 1,011 | 2,589 | 2,096 | 1,134 | |||||||||||||||||||||
| Loans past due 30 to 89 days, still accruing | 13,848 | 12,040 | 13,731 | 12,414 | 11,581 | |||||||||||||||||||||
| Classified loans on accrual | 135,913 | 98,170 | 112,147 | 110,654 | 126,681 | |||||||||||||||||||||
| Watch loans | 91,924 | 132,829 | 147,112 | 167,571 | 190,045 | |||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||||||||||
|
2012 (2) |
2011 | |||||||||||||||||||||||||||
|
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||||
| Interest earning assets |
($ in |
($ in |
($ in |
($ in |
||||||||||||||||||||||||
| Investment securities (1) | $ | 1,417.1 | $ | 9,389 | 3.15 | % | $ | 1,272.1 | $ | 8,542 | 2.84 | % | ||||||||||||||||
| Federal funds sold and other | 18.8 | 1 | 0.01 | % | - | - | 0.00 | % | ||||||||||||||||||||
| Loans (1) | 5,014.1 | 68,342 | 5.50 | % | 4,336.3 | 64,919 | 6.00 | % | ||||||||||||||||||||
| Short term investments | 80.9 | 60 | 0.30 | % | 248.1 | 157 | 0.25 | % | ||||||||||||||||||||
| Investment in restricted stock | 33.4 | 54 | 0.65 | % | 36.2 | 28 | 0.31 | % | ||||||||||||||||||||
| Total interest earning assets | 6,564.3 | 77,846 | 4.88 | % | 5,892.7 | 73,646 | 5.05 | % | ||||||||||||||||||||
| Non-interest earning assets | ||||||||||||||||||||||||||||
| Cash and due from banks | 113.1 | 126.0 | ||||||||||||||||||||||||||
| Allowance for credit losses | (97.5 | ) | (107.2 | ) | ||||||||||||||||||||||||
| Bank owned life insurance | 135.4 | 131.3 | ||||||||||||||||||||||||||
| Other assets | 346.9 | 387.7 | ||||||||||||||||||||||||||
| Total assets | $ | 7,062.2 | $ | 6,430.5 | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 518.4 | $ | 310 | 0.24 | % | $ | 470.4 | $ | 484 | 0.41 | % | ||||||||||||||||
| Savings and money market | 2,296.0 | 1,956 | 0.34 | % | 2,108.7 | 3,676 | 0.70 | % | ||||||||||||||||||||
| Time certificates of deposit | 1,320.7 | 1,902 | 0.58 | % | 1,440.0 | 3,388 | 0.94 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 4,135.1 | 4,168 | 0.40 | % | 4,019.1 | 7,548 | 0.75 | % | ||||||||||||||||||||
| Borrowings | 425.7 | 2,386 | 2.24 | % | 230.4 | 2,123 | 3.70 | % | ||||||||||||||||||||
| Junior subordinated debt | 37.3 | 487 | 5.22 | % | 43.0 | 689 | 6.43 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | 4,598.1 | 7,041 | 0.61 | % | 4,292.5 | 10,360 | 0.97 | % | ||||||||||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,744.1 | 1,486.4 | ||||||||||||||||||||||||||
| Other liabilities | 52.1 | 24.1 | ||||||||||||||||||||||||||
| Stockholders’ equity | 667.9 | 627.4 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 7,062.2 | $ | 6,430.4 | ||||||||||||||||||||||||
| Net interest income and margin | $ | 70,805 | 4.46 | % | $ | 63,286 | 4.34 | % | ||||||||||||||||||||
| Net interest spread | 4.27 | % | 4.08 | % | ||||||||||||||||||||||||
|
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $2,310 and $473 for the second quarter ended 2012 and 2011, respectively. |
| (2) Yields for 2012 calculated on a 30-day month 360 days per year basis. |
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||||||||||
|
2012 (2) |
2011 | |||||||||||||||||||||||||||
|
Average |
Interest |
Average |
Average |
Interest |
Average |
|||||||||||||||||||||||
|
Interest earning assets |
($ in |
($ in |
($ in |
($ in |
||||||||||||||||||||||||
| Investment securities (1) | $ | 1,420.2 | $ | 18,974 | 3.14 | % | $ | 1,274.9 | $ | 16,472 | 2.76 | % | ||||||||||||||||
| Federal funds sold & other | 9.5 | 1 | 0.02 | % | 0.1 | 1 | 1.56 | % | ||||||||||||||||||||
| Loans (1) | 4,898.5 | 136,102 | 5.59 | % | 4,270.1 | 128,801 | 6.08 | % | ||||||||||||||||||||
| Short term investments | 89.4 | 110 | 0.25 | % | 241.6 | 288 | 0.24 | % | ||||||||||||||||||||
| Investment in restricted stock | 33.4 | 96 | 0.57 | % | 36.5 | 50 | 0.28 | % | ||||||||||||||||||||
|
Total interest earning assets |
6,451.0 | 155,283 | 4.94 | % | 5,823.2 | 145,612 | 5.08 | % | ||||||||||||||||||||
| Non-interest earning assets | ||||||||||||||||||||||||||||
| Cash and due from banks | 113.3 | 120.5 | ||||||||||||||||||||||||||
| Allowance for credit losses | (99.1 | ) | (108.9 | ) | ||||||||||||||||||||||||
| Bank owned life insurance | 134.8 | 130.7 | ||||||||||||||||||||||||||
| Other assets | 352.4 | 398.1 | ||||||||||||||||||||||||||
| Total assets | $ | 6,952.4 | $ | 6,363.6 | ||||||||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||
| Interest bearing transaction accounts | $ | 511.3 | $ | 624 | 0.24 | % | $ | 485.8 | $ | 1,017 | 0.42 | % | ||||||||||||||||
| Savings and money market | 2,264.8 | 4,124 | 0.36 | % | 2,058.8 | 7,242 | 0.71 | % | ||||||||||||||||||||
| Time certificates of deposits | 1,372.5 | 4,182 | 0.61 | % | 1,439.5 | 7,187 | 1.01 | % | ||||||||||||||||||||
| Total interest-bearing deposits | 4,148.6 | 8,930 | 0.44 | % | 3,984.1 | 15,446 | 0.78 | % | ||||||||||||||||||||
| Borrowings | 360.3 | 4,520 | 2.51 | % | 225.6 | 4,390 | 3.92 | % | ||||||||||||||||||||
| Junior subordinated debt | 37.1 | 971 | 5.23 | % | 43.0 | 1,391 | 6.52 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | $ | 4,546.0 | 14,421 | 0.63 | % | $ | 4,252.7 | 21,227 | 1.01 | % | ||||||||||||||||||
| Noninterest-bearing liabilities | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 1,694.9 | 1,464.0 | ||||||||||||||||||||||||||
| Other liabilities | 48.7 | 26.7 | ||||||||||||||||||||||||||
| Stockholders’ equity | 662.8 | 620.2 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 6,952.4 | $ | 6,363.6 | ||||||||||||||||||||||||
| Net interest income and margin | $ | 140,862 | 4.49 | % | $ | 124,385 | 4.34 | % | ||||||||||||||||||||
| Net interest spread | 4.31 | % | 4.07 | % | ||||||||||||||||||||||||
|
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $4,071 and $954 for the six months ended June 30, 2012 and 2011, respectively. |
|
| (2) Yields for 2012 were calculated on a 30-day month 360 days per year basis. | |
| 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 June 30, 2012 | (dollars in millions) | ||||||||||||||||||||||||||||||
| Assets | $ | 2,920.2 | $ | 2,349.6 | $ | 1,895.9 | $ | 800.7 | $ | (802.8 | ) | $ | 7,163.6 | ||||||||||||||||||
| Gross loans and deferred fees, net | 2,002.1 | 1,783.6 | 1,422.0 | - | (42.9 | ) | 5,164.8 | ||||||||||||||||||||||||
| Less: Allowance for credit losses | (60.5 | ) | (20.3 | ) | (16.7 | ) | - | - | (97.5 | ) | |||||||||||||||||||||
| Net loans | 1,941.6 | 1,763.3 | 1,405.3 | - | (42.9 | ) | 5,067.3 | ||||||||||||||||||||||||
| Goodwill | 23.2 | - | - | 2.7 | - | 25.9 | |||||||||||||||||||||||||
| Deposits | 2,430.9 | 1,998.2 | 1,592.5 | - | (20.2 | ) | 6,001.4 | ||||||||||||||||||||||||
| FHLB advances and other | 100.0 | 70.0 | 72.0 | - | (12.0 | ) | 230.0 | ||||||||||||||||||||||||
| Stockholders' equity | 329.5 | 208.7 | 161.6 | 680.4 | (708.1 | ) | 672.1 | ||||||||||||||||||||||||
| No. of branches | 11 | 16 | 12 | - | - | 39 | |||||||||||||||||||||||||
| No. of FTE | 386 | 239 | 228 | 100 | - | 953 | |||||||||||||||||||||||||
| Three Months Ended June 30, 2012: | (in thousands) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 27,498 | $ | 24,060 | $ | 21,374 | $ | (2,127 | ) | $ | - | $ | 70,805 | ||||||||||||||||||
| Provision for credit losses | 8,747 | 2,100 | 2,483 | - | - | 13,330 | |||||||||||||||||||||||||
|
Net interest income (loss) after provision for credit losses |
18,751 | 21,960 | 18,891 | (2,127 | ) | - | 57,475 | ||||||||||||||||||||||||
| Non-interest income | 4,291 | 1,994 | 1,079 | 19,833 | (19,800 | ) | 7,397 | ||||||||||||||||||||||||
| Non-interest expense | (18,140 | ) | (12,086 | ) | (11,338 | ) | (5,763 | ) | 1,896 | (45,431 | ) | ||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
4,902 | 11,868 | 8,632 | 11,943 | (17,904 | ) | 19,441 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 1,137 | 4,091 | 3,340 | (3,309 | ) | - | 5,259 | ||||||||||||||||||||||||
| Income (loss) from continuing operations | 3,765 | 7,777 | 5,292 | 15,252 | (17,904 | ) | 14,182 | ||||||||||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (221 | ) | - | (221 | ) | |||||||||||||||||||||||
| Net income (loss) | $ | 3,765 | $ | 7,777 | $ | 5,292 | $ | 15,031 | $ | (17,904 | ) | $ | 13,961 | ||||||||||||||||||
| Six Months Ended June 30, 2012: | (in thousands) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 55,337 | $ | 47,116 | $ | 42,610 | $ | (4,201 | ) | $ | - | $ | 140,862 | ||||||||||||||||||
| Provision for credit losses | 22,229 | 103 | 4,079 | - | - | 26,411 | |||||||||||||||||||||||||
|
Net interest income (loss) after provision for credit losses |
33,108 | 47,013 | 38,531 | (4,201 | ) | - | 114,451 | ||||||||||||||||||||||||
| Non-interest income | 7,874 | 3,847 | 2,256 | 38,289 | (38,985 | ) | 13,281 | ||||||||||||||||||||||||
| Non-interest expense | (36,970 | ) | (24,005 | ) | (22,410 | ) | (13,532 | ) | 4,589 | (92,328 | ) | ||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
4,012 | 26,855 | 18,377 | 20,556 | (34,396 | ) | 35,404 | ||||||||||||||||||||||||
| Income tax expense (benefit) | (714 | ) | 9,263 | 7,297 | (6,146 | ) | - | 9,700 | |||||||||||||||||||||||
| Income (loss) from continuing operations | 4,726 | 17,592 | 11,080 | 26,702 | (34,396 | ) | 25,704 | ||||||||||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (443 | ) | - | (443 | ) | |||||||||||||||||||||||
| Net income (loss) | $ | 4,726 | $ | 17,592 | $ | 11,080 | $ | 26,259 | $ | (34,396 | ) | $ | 25,261 | ||||||||||||||||||
| * 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 June 30, 2011 | (dollars in millions) | ||||||||||||||||||||||||||||||
| Assets | $ | 2,842.6 | $ | 2,055.6 | $ | 1,565.3 | $ | 748.7 | $ | (704.1 | ) | $ | 6,508.1 | ||||||||||||||||||
| Gross loans and deferred fees, net | 1,854.8 | 1,429.2 | 1,170.6 | - | (42.9 | ) | 4,411.7 | ||||||||||||||||||||||||
| Less: Allowance for credit losses | (66.8 | ) | (21.2 | ) | (16.4 | ) | - | - | (104.4 | ) | |||||||||||||||||||||
| Net loans | 1,788.0 | 1,408.0 | 1,154.2 | - | (42.9 | ) | 4,307.3 | ||||||||||||||||||||||||
| Goodwill | 23.2 | - | - | 2.7 | - | 25.9 | |||||||||||||||||||||||||
| Deposits | 2,449.2 | 1,760.2 | 1,382.0 | - | (3.1 | ) | 5,588.3 | ||||||||||||||||||||||||
| Stockholders' equity | 317.4 | 181.5 | 143.3 | 622.6 | (649.1 | ) | 615.7 | ||||||||||||||||||||||||
| No. of branches | 12 | 16 | 11 | - | - | 39 | |||||||||||||||||||||||||
| No. of FTE | 411 | 217 | 208 | 73 | - | 908 | |||||||||||||||||||||||||
| Three Months Ended June 30, 2011: | (in thousands) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 26,856 | $ | 20,110 | $ | 18,611 | $ | (2,291 | ) | $ | - | $ | 63,286 | ||||||||||||||||||
| Provision for credit losses | 5,300 | 3,731 | 2,860 | - | - | 11,891 | |||||||||||||||||||||||||
|
Net interest income (loss) after provision for credit losses |
21,556 | 16,379 | 15,751 | (2,291 | ) | - | 51,395 | ||||||||||||||||||||||||
| Non-interest income | 5,982 | 2,351 | 1,235 | 1,816 | (1,787 | ) | 9,597 | ||||||||||||||||||||||||
| Non-interest expense | (22,738 | ) | (12,680 | ) | (9,998 | ) | (7,379 | ) | 1,787 | (51,008 | ) | ||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
4,800 | 6,050 | 6,988 | (7,854 | ) | - | 9,984 | ||||||||||||||||||||||||
| Income tax expense (benefit) | 1,076 | 2,224 | 2,812 | (2,817 | ) | - | 3,295 | ||||||||||||||||||||||||
|
Income (loss) from continuing operations |
3,724 | 3,826 | 4,176 | (5,037 | ) | - | 6,689 | ||||||||||||||||||||||||
| Loss from discontinued operations, net | - | - | - | (460 | ) | - | (460 | ) | |||||||||||||||||||||||
| Net income (loss) | $ | 3,724 | $ | 3,826 | $ | 4,176 | $ | (5,497 | ) | $ | - | $ | 6,229 | ||||||||||||||||||
| Six Months Ended June 30, 2011: | (in thousands) | ||||||||||||||||||||||||||||||
| Net interest income | $ | 53,284 | $ | 39,767 | $ | 35,928 | $ | (4,594 | ) | $ | - | $ | 124,385 | ||||||||||||||||||
| Provision for credit losses | 12,303 | 5,331 | 4,298 | - | - | 21,932 | |||||||||||||||||||||||||
|
Net interest income (loss) after provision for credit losses |
40,981 | 34,436 | 31,630 | (4,594 | ) | - | 102,453 | ||||||||||||||||||||||||
| Non-interest income | 9,374 | 4,383 | 2,974 | (304 | ) | - | 16,427 | ||||||||||||||||||||||||
| Non-interest expense | (44,410 | ) | (25,064 | ) | (20,487 | ) | (12,677 | ) | 3,483 | (99,155 | ) | ||||||||||||||||||||
|
Income (loss) from continuing operations before income taxes |
5,945 | 13,755 | 14,117 | (17,575 | ) | 3,483 | 19,725 | ||||||||||||||||||||||||
|
Income tax expense (benefit) |
1,327 | 5,074 | 5,918 | (4,995 | ) | - | 7,324 | ||||||||||||||||||||||||
|
Income (loss) from continuing operations |
4,618 |
8,681 |
8,199 | (12,580 | ) | 3,483 | 12,401 | ||||||||||||||||||||||||
| Loss from discontinued operations, net | - |
- |
- | (1,019 | ) | - | (1,019 | ) | |||||||||||||||||||||||
| Net income (loss) | $ | 4,618 | $ | 8,681 | $ | 8,199 | $ | (13,599 | ) | $ | 3,483 | $ | 11,382 | ||||||||||||||||||
| * Excludes discontinued operations | |||||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||
| Total stockholder's equity | $ | 672,120 | $ | 654,045 | $ | 636,683 | $ | 632,255 | $ | 615,653 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Goodwill and intangible assets | 33,953 | 34,843 | 35,732 | 36,622 | 37,511 | |||||||||||||||||||||
| Total tangible stockholders' equity | 638,167 | 619,202 | 600,951 | 595,633 | 578,142 | |||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Preferred stock | 141,000 | 141,000 | 141,000 | 141,000 | 132,333 | |||||||||||||||||||||
| Total tangible common equity | 497,167 | 478,202 | 459,951 | 454,633 | 445,809 | |||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Deferred tax | 2,896 | 3,209 | 3,522 | 3,835 | 4,148 | |||||||||||||||||||||
| Total tangible common equity, net of tax | $ | 500,063 | $ | 481,411 | $ | 463,473 | $ | 458,468 | $ | 449,957 | ||||||||||||||||
| Total assets | $ | 7,163,572 | $ | 6,925,292 | $ | 6,844,541 | $ | 6,545,890 | $ | 6,508,089 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Goodwill and intangible assets | 33,953 | 34,843 | 35,732 | 36,622 | 37,511 | |||||||||||||||||||||
| Tangible assets | 7,129,619 | 6,890,449 | 6,808,809 | 6,509,268 | 6,470,578 | |||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Deferred tax | 2,896 | 3,209 | 3,522 | 3,835 | 4,148 | |||||||||||||||||||||
| Total tangible assets, net of tax | $ | 7,132,515 | $ | 6,893,658 | $ | 6,812,331 | $ | 6,513,103 | $ | 6,474,726 | ||||||||||||||||
| Tangible equity ratio (1) | 8.9 | % | 9.0 | % | 8.8 | % | 9.1 | % | 8.9 | % | ||||||||||||||||
| Tangible common equity ratio (2) | 7.0 | % | 6.9 | % | 6.8 | % | 7.0 | % | 6.9 | % | ||||||||||||||||
| Common shares outstanding | 83,157 | 83,145 | 82,362 | 82,263 | 82,139 | |||||||||||||||||||||
| Tangible book value per share, net of tax (3) | $ | 6.01 | $ | 5.79 | $ | 5.63 | $ | 5.57 | $ | 5.48 | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Total non-interest income | $ | 7,397 | $ | 5,884 | $ | 4,948 | $ | 13,082 | $ | 9,597 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Mark-to-market (losses) gains, net | 564 | (333 | ) | (626 | ) | 6,420 | 336 | |||||||||||||||||||
| Securities impairment charges | - | - | - | - | (226 | ) | ||||||||||||||||||||
| Loss on LIHTC investments | (59 | ) | - | - | - | - | ||||||||||||||||||||
| Gains on sales of investment securities, net | 1,110 | 361 | (28 | ) | 781 | 2,666 | ||||||||||||||||||||
| Total operating non-interest income | 5,782 | 5,856 | 5,602 | 5,881 | 6,821 | |||||||||||||||||||||
| Add: net interest income | 70,805 | 70,057 | 68,699 | 64,585 | 63,286 | |||||||||||||||||||||
| Net revenue (4) | $ | 76,587 | $ | 75,913 | $ | 74,301 | $ | 70,466 | $ | 70,107 | ||||||||||||||||
| Total non-interest expense | $ | 45,431 | $ | 46,897 | $ | 50,963 | $ | 45,481 | $ | 51,008 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||||
|
Net loss (gain) on sales/valuations of repossessed assets |
901 | 2,651 | 7,702 | 2,128 | 8,633 | |||||||||||||||||||||
| Merger/restructure | - | - | 482 | 974 | (109 | ) | ||||||||||||||||||||
| Total operating non-interest expense (4) | $ | 44,530 | $ | 44,246 | $ | 42,779 | $ | 42,379 | $ | 42,484 | ||||||||||||||||
| Net revenue | $ | 76,587 | $ | 75,913 | $ | 74,301 | $ | 70,466 | $ | 70,107 | ||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Operating non-interest expense | 44,530 | 44,246 | 42,779 | 42,379 | 42,484 | |||||||||||||||||||||
| Pre-tax, pre-provision operating earnings (5) | $ | 32,057 | $ | 31,667 | $ | 31,522 | $ | 28,087 | $ | 27,623 | ||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||||
| 2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Total operating non-interest expense | $ | 44,530 | $ | 44,246 | $ | 42,779 | $ | 42,379 | $ | 42,484 | ||||||||||||||||
| Divided by: | ||||||||||||||||||||||||||
| Total net interest income | $ | 70,805 | $ | 70,057 | $ | 68,699 | $ | 64,585 | $ | 63,286 | ||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Tax equivalent interest adjustment | 2,310 | 1,761 | 1,425 | 634 | 473 | |||||||||||||||||||||
| Operating non-interest income | 5,782 | 5,856 | 5,602 | 5,881 | 6,821 | |||||||||||||||||||||
| $ | 78,897 | $ | 77,674 | $ | 75,726 | $ | 71,100 | $ | 70,580 | |||||||||||||||||
| Efficiency ratio - tax equivalent basis (6) | 56.4 | % | 57.0 | % | 56.5 | % | 59.6 | % | 60.2 | % | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Stockholder's equity | $ | 672,120 | $ | 615,653 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Accumulated other comprehensive (loss) income | 4,291 | (5,795 | ) | |||||||||||||||||||||||
| Non-qualifying goodwill and intangibles | 31,748 | 34,080 | ||||||||||||||||||||||||
| Other non-qualifying assets | 3 | 24,057 | ||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||
| Qualifying trust preferred securities | 45,123 | 40,737 | ||||||||||||||||||||||||
| Tier 1 capital (regulatory) (7) (10) | 681,201 | 604,048 | ||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||
| Qualifying non-controlling interests | 423 | 104 | ||||||||||||||||||||||||
| Qualifying trust preferred securities | 45,123 | 40,737 | ||||||||||||||||||||||||
| Preferred stock | 141,000 | 132,333 | ||||||||||||||||||||||||
| Estimated Tier 1 common equity (8) (10) | $ | 494,655 | $ | 430,874 | ||||||||||||||||||||||
| Divided by: | ||||||||||||||||||||||||||
|
Estimated risk-weighted assets (regulatory) (8) (10) |
$ | 6,181,246 | $ | 5,110,812 | ||||||||||||||||||||||
| Tier 1 common equity ratio (8) (10) | 8.0 | % | 8.4 | % | ||||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||||||
| 2012 | 2011 | |||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||
| Classified assets | $ | 325,165 | $ | 325,760 | ||||||||||||||||||||||
| Divide: | ||||||||||||||||||||||||||
| Tier 1 capital (regulatory) (7) (10) | 681,201 | 604,048 | ||||||||||||||||||||||||
| Plus: Allowance for credit losses | 97,512 | 104,375 | ||||||||||||||||||||||||
| Total Tier 1 capital plus allowance for credit losses | $ | 778,713 | $ | 708,423 | ||||||||||||||||||||||
| Classified assets to Tier 1 capital plus allowance (9) (10) | 42 | % | 46 | % | ||||||||||||||||||||||
|
(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 a critical metric 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 provides a useful indication 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 a useful metric to measure the operating efficiency of the Company. |
|
(7) Under the guidelines of the Federal Reserve and the FDIC in effect at December 31, 2011, Tier 1 capital consisted of common stock, retained earnings, non-cumulative perpetual preferred stock, trust preferred securities up to a certain limit, and minority interests in certain subsidiaries, less most other intangible assets. |
|
(8) Tier 1 common equity is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a bank's balance sheet assets and credit equivalent amounts of off-balance sheet items, are assigned to one of four broad risk categories. The aggregated dollar amount in each category is then multiplied by the risk weighting assigned to that category. The resulting weighted values from each of the four categories are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator (risk-weighted assets) to determine the Tier 1 capital ratio. Adjustments are made to Tier 1 capital to arrive at Tier 1 common equity. Tier 1 common equity is also divided by the risk-weighted assets to determine the Tier 1 common equity ratio. We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength. |
| (9) We believe this non-GAAP ratio provides a critical regulatory metric in which to analyze asset quality. |
| (10) Preliminary until Call Reports are filed. |
CONTACT:
Western Alliance Bancorporation
Dale Gibbons, 602-952-5476