Western Alliance Bancorporation (NYSE:WAL) (the "Company") announced today its financial results for the first quarter 2015.
First Quarter 2015 Highlights:
- Net income of $40.2 million, compared to $40.4 million for the fourth quarter 2014, and $31.1 million for the first quarter 2014
- Earnings per share of $0.45, compared to $0.46 per share in the fourth quarter 2014, and $0.35 per share in the first quarter 2014
- Pre-tax, pre-provision operating earnings of $54.5 million, up from $52.0 million in the fourth quarter 2014, and up 22.9% from $44.4 million in the first quarter 20141
- Net interest margin of 4.35%, compared to 4.44% in the fourth quarter 2014, and 4.41% in the first quarter 2014
- Total loans of $8.82 billion, an increase of $420 million from December 31, 2014, and an increase of $1.71 billion from March 31, 2014
- Total deposits of $9.66 billion, an increase of $731 million from December 31, 2014, and an increase of $1.51 billion from March 31, 2014
- Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 1.11% of total assets, from 1.18% at December 31, 2014, and from 1.30% at March 31, 2014
- Net loan recoveries (annualized) to average loans outstanding of 0.06%, compared to 0.04% in the fourth quarter 2014, and 0.02% in the first quarter 2014
- Tier I Leverage ratio of 9.8% and Total Capital ratio of 11.3% under Basel III federal regulatory standards, which became effective on January 1, 2015
- Stockholders' equity of $1.05 billion, an increase of $50 million from December 31, 2014, and an increase of $156 million from March 31, 2014
- Tangible book value per share, net of tax, of $10.72, an increase of 5.0% from $10.21 at December 31, 2014, and an increase of 28.8% from $8.32 at March 31, 20141
Financial Performance
"We are pleased with our strong start to 2015. Our balance sheet momentum continued with loan growth of $420 million and record deposit growth of $731 million, half of which was non-interest bearing DDA," remarked Robert Sarver, Chairman and CEO of Western Alliance Bancorporation. "This growth drove net income to $40.2 million for the first quarter of 2015, an increase of 29.3% from the same period last year. Our efficiency ratio improved to 46.7% as our 13% revenue growth was three times as fast as the 4% increase in expenses. Our asset quality metrics remain strong as we experienced our fifth straight quarter of net recoveries."
Sarver continued, "On March 9th, we announced a definitive agreement to acquire Bridge Capital Holdings, headquartered in San Jose, California. This profitable and well-run bank provides new growth opportunities while improving our risk profile through expanded products and geographic diversification. In addition, it will also increase our low-cost funding sources for the organization. Both Bridge and Western Alliance have local teams of highly experienced, knowledgeable bankers who deliver unmatched personalized service and we look forward to combining our teams in the second half of the year."
Income Statement
Net interest income was $103.1 million in the first quarter 2015, an increase of $1.0 million from $102.1 million in the fourth quarter 2014, and an increase of $12.3 million, or 13.6%, compared to the first quarter 2014. The Company’s net interest margin decreased in the first quarter 2015 to 4.35%, compared to 4.44% in the fourth quarter 2014, and 4.41% in the first quarter 2014.
Operating non-interest income was $5.7 million for the first quarter 2015, compared to $6.7 million in the fourth quarter 2014, and $5.5 million for the first quarter 2014.1
Net operating revenue was $108.8 million for the first quarter 2015, compared to $108.8 million for the fourth quarter 2014, and an increase of $12.5 million compared to $96.3 million for the first quarter 2014.1
Operating non-interest expense was $54.2 million for the first quarter 2015, compared to $56.8 million for the fourth quarter 2014, and $51.9 million for the first quarter 2014.1 The Company’s operating efficiency ratio1 on a tax equivalent basis was 46.7% for the first quarter 2015, an improvement from 49.3% for the fourth quarter 2014, and from 50.9% for the first quarter 2014.
Non-operating items for the first quarter 2015 consisted of a net gain on sales and valuations of repossessed and other assets of $0.4 million, net unrealized losses on assets and liabilities measured at fair value of $0.3 million, gains on sales of investment securities of $0.6 million, and merger / restructure expense of $0.2 million incurred in connection with the proposed acquisition of Bridge Capital Holdings.
The Company had 1,131 full-time equivalent employees and 40 offices at March 31, 2015, compared to 1,105 employees and 39 offices at March 31, 2014.
The Company views its pre-tax, pre-provision operating earnings as a key metric for assessing the Company’s earnings power, which it defines as net operating revenue less operating non-interest expense. For the first quarter 2015, the Company’s pre-tax, pre-provision operating earnings were $54.5 million, up from $52.0 million in the fourth quarter 2014, and up 22.9% from $44.4 million in the first quarter 2014.1
Balance Sheet
Gross loans totaled $8.82 billion at March 31, 2015, an increase of $420 million from $8.40 billion at December 31, 2014, and an increase of $1.71 billion from $7.11 billion at March 31, 2014. At March 31, 2015, the allowance for credit losses was 1.27% of total loans, compared to 1.31% at December 31, 2014, and 1.46% at March 31, 2014, reflecting an improvement in the Company’s asset quality profile and historical losses.
Deposits totaled $9.66 billion at March 31, 2015, an increase of approximately $731 million from $8.93 billion at December 31, 2014, and an increase of $1.51 billion from $8.15 billion at March 31, 2014. Non-interest bearing deposits were $2.66 billion at March 31, 2015, compared to $2.29 billion at December 31, 2014, and $2.09 billion at March 31, 2014. Non-interest bearing deposits comprised 27.5% of total deposits at March 31, 2015, compared to 25.6% at December 31, 2014, and 25.7% at March 31, 2014. The proportion of savings and money market accounts decreased to 42.6% from 43.3% at December 31, 2014, and from 45.1% at March 31, 2014. Certificates of deposit as a percentage of total deposits were 20.2% at March 31, 2015, compared to 21.5% at December 31, 2014, and 20.0% at March 31, 2014. The Company’s ratio of loans to deposits was 91.3% at March 31, 2015, compared to 94.0% at December 31, 2014, and 87.2% at March 31, 2014.
Other borrowings totaled $275 million at March 31, 2015, a decrease of $115 million from $390 million at December 31, 2014, and a decrease of $68 million from $343 million at March 31, 2014.
Stockholders’ equity at March 31, 2015 was $1.05 billion, compared to $1.00 billion at December 31, 2014, and $895 million at March 31, 2014.
At March 31, 2015, tangible common equity, net of tax, was 8.5% of tangible assets1 and total capital under Basel III federal regulatory standards was 11.3% of risk-weighted assets. The Company’s tangible book value per share1 was $10.72 at March 31, 2015, up 28.8% from March 31, 2014.
Total assets increased 6.1% to $11.25 billion at March 31, 2015, from $10.60 billion at December 31, 2014, and increased 15.4% from $9.75 billion at March 31, 2014.
Asset Quality
The provision for credit losses was $0.7 million for the first quarter 2015, compared to $0.3 million in the fourth quarter 2014, and $3.5 million for the first quarter 2014. Net loan recoveries in the first quarter 2015 were $1.2 million, or 0.06% of average loans (annualized), compared to $0.8 million, or 0.04%, in the fourth quarter 2014, respectively, and $0.3 million, or 0.02% for the first quarter 2014, respectively.
Nonaccrual loans decreased $6.9 million to $60.7 million during the quarter. Loans past due 90 days and still accruing interest totaled $3.7 million at March 31, 2015, compared to $5.1 million at December 31, 2014, and $0.2 million at March 31, 2014. Loans past due 30-89 days and still accruing interest totaled $14.1 million at quarter end, an increase from $9.8 million at December 31, 2014, and an increase from $11.1 million at March 31, 2014.
As the Company’s asset quality improved and its capital increased, the ratio of classified assets to Tier I capital plus the allowance for credit losses, a common regulatory measure of asset quality, improved to 20% at March 31, 2015 and December 31, 2014, from 24% at March 31, 2014.1
Segment Highlights
The Company's reportable segments are aggregated primarily based on geographic location, services offered, and markets served. The Arizona, Nevada, and California segments provide full service banking and related services to their respective markets. The Company's Central Business Lines (CBL) segment provides banking services to niche markets. These CBLs are managed centrally and are broader in geographic scope compared to our other segments, though still predominately located within our core market areas. The Corporate & Other segment consists of corporate-related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.
Key management metrics for evaluating the performance of the Company's Arizona, Nevada, California, and CBL segments include loan and deposit growth, asset quality, and pre-tax income.
Arizona reported a gross loan balance of $2.38 billion at March 31, 2015, an increase of $42 million during the quarter, and an increase of $351 million during the last 12 months. Deposits were $2.34 billion at March 31, 2015, an increase of $166 million during the quarter, and an increase of $178 million during the last 12 months. Pre-tax income was $15.8 million and $12.6 million for the three months ended March 31, 2015 and March 31, 2014, respectively.
Nevada reported a gross loan balance of $1.81 billion at March 31, 2015, an increase of $137 million during the quarter, and an increase of $82 million during the last 12 months. Deposits were $3.36 billion at March 31, 2015, an increase of $132 million during the quarter, and an increase of $338 million during the last 12 months. Pre-tax income was $16.7 million and $16.5 million for the three months ended March 31, 2015 and March 31, 2014, respectively.
California reported a gross loan balance of $1.80 billion at March 31, 2015, an increase of $48 million during the quarter, and an increase of $137 million during the last 12 months. Deposits were $2.51 billion at March 31, 2015, an increase of $186 million during the quarter, and an increase of $647 million during the last 12 months. Pre-tax income was $14.4 million and $10.3 million for the three months ended March 31, 2015 and March 31, 2014, respectively.
CBL reported a gross loan balance of $2.79 billion at March 31, 2015, an increase of $198 million during the quarter, and an increase of $1.17 billion during the last 12 months. Deposits were $1.11 billion at March 31, 2015, an increase of $167 million during the quarter, and an increase of $269 million during the last 12 months. Pre-tax income was $13.3 million and $5.4 million for the three months ended March 31, 2015 and March 31, 2014, respectively.
Attached to this press release is summarized financial information for the quarter ended March 31, 2015.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2015 financial results at 12:00 p.m. ET on Tuesday, April 21, 2015. Participants may access the call by dialing 1-888-317-6003 and using passcode 9443418 or via live audio webcast using the website link http://services.choruscall.com/links/wal150417.html. The webcast is also available via the Company’s 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 April 21st through 9:00 a.m. ET May 21st by dialing 1-877-344-7529 passcode: 10062576.
Reclassifications
Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.
Use of Non-GAAP Financial Information
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 the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation 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.
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. Examples of forward-looking statements include, among others, statements we make regarding our proposed acquisition of Bridge Capital Holdings and any guidance, outlook or expectations relating to our business, financial and operating results, and future economic performance. 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, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 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; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; 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.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.
About Western Alliance Bancorporation
Driving growth in assets and earnings Western Alliance Bancorporation (NYSE:WAL) has more than $10 billion in assets and is one of the fastest growing bank holding companies in the U.S. Its primary subsidiary, Western Alliance Bank, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior, personalized services and a full spectrum of deposit, lending, treasury management and online banking products and services. Western Alliance Bank operates through these full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, First Independent Bank (Nevada) and Torrey Pines Bank (California). The Company also serves business customers through a robust national platform of specialized financial services including Alliance Association Bank, Western Alliance Corporate Finance, Western Alliance Equipment Finance, Western Alliance Public Finance, Western Alliance Resort Finance, and Western Alliance Warehouse Lending. For more information visit westernalliancebancorp.com.
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 16.
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||
| Summary Consolidated Financial Data | ||||||||||||
| Unaudited | ||||||||||||
| Selected Balance Sheet Data: | ||||||||||||
| March 31, 2015 | March 31, 2014 | Change % | ||||||||||
| (in millions) | ||||||||||||
| Total assets | $ | 11,251.9 | $ | 9,746.6 | 15.4 | % | ||||||
| Loans, net of deferred fees | 8,818.6 | 7,108.6 | 24.1 | |||||||||
| Securities and money market investments | 1,453.7 | 1,671.3 | (13.0 | ) | ||||||||
| Total deposits | 9,662.3 | 8,149.0 | 18.6 | |||||||||
| Borrowings | 275.2 | 342.8 | (19.7 | ) | ||||||||
| Junior subordinated debt | 40.7 | 42.8 | (4.9 | ) | ||||||||
| Stockholders' equity | 1,051.3 | 894.8 | 17.5 | |||||||||
| Selected Income Statement Data: | ||||||||||||
| For the Three Months Ended March 31, | ||||||||||||
| 2015 | 2014 | Change % | ||||||||||
| (in thousands) | ||||||||||||
| Interest income | $ | 110,962 | $ | 98,701 | 12.4 | % | ||||||
| Interest expense | 7,854 | 7,924 | (0.9 | ) | ||||||||
| Net interest income | 103,108 | 90,777 | 13.6 | |||||||||
| Provision for credit losses | 700 | 3,500 | (80.0 | ) | ||||||||
| Net interest income after provision for credit losses | 102,408 | 87,277 | 17.3 | |||||||||
| Non-interest income | 5,933 | 4,573 | 29.7 | |||||||||
| Non-interest expense | 54,033 | 49,487 | 9.2 | |||||||||
| Income from continuing operations before income taxes | 54,308 | 42,363 | 28.2 | |||||||||
| Income tax expense | 14,118 | 10,624 | 32.9 | |||||||||
| Income from continuing operations | 40,190 | 31,739 | 26.6 | |||||||||
| Loss on discontinued operations, net of tax | — | (654 | ) | (100.0 | ) | |||||||
| Net income | $ | 40,190 | $ | 31,085 | 29.3 | |||||||
| Diluted earnings per share from continuing operations | $ | 0.45 | $ | 0.36 | 25.0 | |||||||
| Diluted loss per share from discontinued operations | — | (0.01 | ) | |||||||||
| Diluted earnings per share available to common stockholders | $ | 0.45 | $ | 0.35 | 28.6 | |||||||
| Common Share Data: | ||||||||||||
| At or for the Three Months Ended March 31, | ||||||||||||
| 2015 | 2014 | Change % | ||||||||||
| Diluted earnings per share available to common stockholders | $ | 0.45 | $ | 0.35 | 28.6 | % | ||||||
| Book value per common share | 11.00 | 8.61 | 27.8 | |||||||||
| Tangible book value per share, net of tax (1) | 10.72 | 8.32 | 28.8 | |||||||||
| Average shares outstanding (in thousands): | ||||||||||||
| Basic | 87,941 | 86,256 | 2.0 | |||||||||
| Diluted | 88,452 | 87,123 | 1.5 | |||||||||
| Common shares outstanding | 89,180 | 87,554 | 1.9 | |||||||||
| (1) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||
| Summary Consolidated Financial Data | ||||||||||
| Unaudited | ||||||||||
| At or for the Three Months Ended March 31, | ||||||||||
| 2015 | 2014 | Change % | ||||||||
| Selected Performance Ratios: | ||||||||||
| Return on average assets (1) | 1.49 | % | 1.33 | % | 12.0 | % | ||||
| Return on average tangible common equity (2) | 17.21 | 17.31 | (0.6 | ) | ||||||
| Net interest margin (1) | 4.35 | 4.41 | (1.4 | ) | ||||||
| Net interest spread | 4.22 | 4.27 | (1.2 | ) | ||||||
| Efficiency ratio - tax equivalent basis (2) | 46.69 | 50.88 | (8.2 | ) | ||||||
| Loan to deposit ratio | 91.27 | 87.23 | 4.6 | |||||||
| Asset Quality Ratios: | ||||||||||
| Net recoveries to average loans outstanding (1) | (0.06 | )% | (0.02 | )% | 200.0 | % | ||||
| Nonaccrual loans to gross loans | 0.69 | 0.99 | (30.3 | ) | ||||||
| Nonaccrual loans and repossessed assets to total assets | 1.11 | 1.30 | (14.6 | ) | ||||||
| Loans past due 90 days and still accruing to total loans | 0.04 | — | 100.0 | |||||||
| Allowance for credit losses to gross loans | 1.27 | 1.46 | (13.0 | ) | ||||||
| Allowance for credit losses to nonaccrual loans | 184.55 | 147.58 | 25.1 | |||||||
| Capital Ratios (2): | |||||||||||
| Basel III | Basel I | Minimum | |||||||||
| March 31, 2015 | December 31, 2014 | March 31, 2014 | March 31, 2015 | ||||||||
| Tangible common equity | 8.5 | % | 8.6 | % | 7.5 | % | — | ||||
| Common Equity Tier 1 (3) | 9.0 | — | — | 6.5 | |||||||
| Tier 1 Common Equity (2) | — | 9.3 | 8.8 | — | |||||||
| Tier 1 Leverage ratio (3) | 9.8 | 9.7 | 9.9 | 5.0 | |||||||
| Tier 1 Capital (3) | 10.2 | 10.5 | 11.1 | 8.0 | |||||||
| Total Capital (3) | 11.3 | 11.7 | 12.4 | 10.0 | |||||||
| (1) | Annualized for the three-month periods ended March 31, 2015 and 2014. | |
| (2) | See Reconciliation of Non-GAAP Financial Measures. | |
| (3) | Basel III capital ratios are preliminary until the Call Report is filed. |
| Western Alliance Bancorporation and Subsidiaries | ||||||||
| Condensed Consolidated Income Statements | ||||||||
| Unaudited | ||||||||
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| (dollars in thousands) | ||||||||
| Interest income: | ||||||||
| Loans | $ | 100,391 | $ | 86,804 | ||||
| Investment securities | 9,788 | 11,325 | ||||||
| Federal funds sold and other | 783 | 572 | ||||||
| Total interest income | 110,962 | 98,701 | ||||||
| Interest expense: | ||||||||
| Deposits | 5,146 | 4,665 | ||||||
| Borrowings | 2,267 | 2,838 | ||||||
| Junior subordinated debt | 441 | 421 | ||||||
| Total interest expense | 7,854 | 7,924 | ||||||
| Net interest income | 103,108 | 90,777 | ||||||
| Provision for credit losses | 700 | 3,500 | ||||||
| Net interest income after provision for credit losses | 102,408 | 87,277 | ||||||
| Non-interest income: | ||||||||
| Service charges | 2,889 | 2,561 | ||||||
| Bank owned life insurance | 977 | 949 | ||||||
| Gains on sales of investment securities, net | 589 | 366 | ||||||
| Unrealized losses on assets and liabilities measured at fair value, net | (309 | ) | (1,276 | ) | ||||
| Other | 1,787 | 1,973 | ||||||
| Total non-interest income | 5,933 | 4,573 | ||||||
| Non-interest expenses: | ||||||||
| Salaries and employee benefits | 32,541 | 29,555 | ||||||
| Occupancy | 4,813 | 4,686 | ||||||
| Legal, professional and directors' fees | 3,995 | 3,639 | ||||||
| Data Processing | 3,126 | 2,729 | ||||||
| Insurance | 2,090 | 2,393 | ||||||
| Loan and repossessed asset expenses | 1,090 | 1,147 | ||||||
| Card expense | 474 | 600 | ||||||
| Marketing | 377 | 559 | ||||||
| Intangible amortization | 281 | 597 | ||||||
| Net gain on sales and valuations of repossessed and other assets | (351 | ) | (2,547 | ) | ||||
| Merger / restructure expense | 159 | 157 | ||||||
| Other | 5,438 | 5,972 | ||||||
| Total non-interest expense | 54,033 | 49,487 | ||||||
| Income from continuing operations before income taxes | 54,308 | 42,363 | ||||||
| Income tax expense | 14,118 | 10,624 | ||||||
| Income from continuing operations | $ | 40,190 | $ | 31,739 | ||||
| Loss from discontinued operations, net of tax | — | (654 | ) | |||||
| Net income | $ | 40,190 | $ | 31,085 | ||||
| Preferred stock dividends | 176 | 353 | ||||||
| Net income available to common stockholders | $ | 40,014 | $ | 30,732 | ||||
| Diluted net income per share | $ | 0.45 | $ | 0.35 | ||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Income Statements | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 100,391 | $ | 99,099 | $ | 94,436 | $ | 90,583 | $ | 86,804 | ||||||||||
| Investment securities | 9,788 | 10,455 | 10,535 | 10,894 | 11,325 | |||||||||||||||
| Federal funds sold and other | 783 | 597 | 583 | 496 | 572 | |||||||||||||||
| Total interest income | 110,962 | 110,151 | 105,554 | 101,973 | 98,701 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 5,146 | 5,245 | 5,172 | 4,930 | 4,665 | |||||||||||||||
| Borrowings | 2,267 | 2,314 | 1,866 | 2,702 | 2,838 | |||||||||||||||
| Junior subordinated debt | 441 | 447 | 443 | 443 | 421 | |||||||||||||||
| Total interest expense | 7,854 | 8,006 | 7,481 | 8,075 | 7,924 | |||||||||||||||
| Net interest income | 103,108 | 102,145 | 98,073 | 93,898 | 90,777 | |||||||||||||||
| Provision for credit losses | 700 | 300 | 419 | 507 | 3,500 | |||||||||||||||
| Net interest income after provision for credit losses | 102,408 | 101,845 | 97,654 | 93,391 | 87,277 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Service charges | 2,889 | 2,791 | 2,457 | 2,758 | 2,561 | |||||||||||||||
| Bank owned life insurance | 977 | 1,464 | 1,136 | 959 | 949 | |||||||||||||||
| Gains (losses) on sales of investment securities, net | 589 | 373 | 181 | (163 | ) | 366 | ||||||||||||||
| Unrealized (losses) gains on assets and liabilities measured at fair value, net | (309 | ) | 1,357 | 896 | 235 | (1,276 | ) | |||||||||||||
| Loss on extinguishment of debt | — | — | (502 | ) | — | — | ||||||||||||||
| Other | 1,787 | 2,432 | 1,824 | 1,809 | 1,973 | |||||||||||||||
| Total non-interest income | 5,933 | 8,417 | 5,992 | 5,598 | 4,573 | |||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Salaries and employee benefits | 32,541 | 33,094 | 32,230 | 31,751 | 29,555 | |||||||||||||||
| Occupancy | 4,813 | 4,698 | 4,479 | 4,293 | 4,686 | |||||||||||||||
| Legal, professional, and directors' fees | 3,995 | 3,425 | 3,022 | 4,192 | 3,639 | |||||||||||||||
| Data Processing | 3,126 | 2,345 | 2,404 | 2,580 | 2,729 | |||||||||||||||
| Insurance | 2,090 | 2,386 | 1,996 | 2,087 | 2,393 | |||||||||||||||
| Loan and repossessed asset expenses | 1,090 | 1,486 | 901 | 889 | 1,147 | |||||||||||||||
| Card expense | 474 | 678 | 609 | 530 | 600 | |||||||||||||||
| Marketing | 377 | 857 | 378 | 506 | 559 | |||||||||||||||
| Intangible amortization | 281 | 281 | 281 | 302 | 597 | |||||||||||||||
| Net (gain) loss on sales and valuations of repossessed and other assets | (351 | ) | (1,102 | ) | (1,956 | ) | 184 | (2,547 | ) | |||||||||||
| Merger / restructure expense | 159 | — | 15 | 26 | 157 | |||||||||||||||
| Other | 5,438 | 7,594 | 5,419 | 4,901 | 5,972 | |||||||||||||||
| Total non-interest expense | 54,033 | 55,742 | 49,778 | 52,241 | 49,487 | |||||||||||||||
| Income from continuing operations before income taxes | 54,308 | 54,520 | 53,868 | 46,748 | 42,363 | |||||||||||||||
| Income tax expense | 14,118 | 14,111 | 12,949 | 10,706 | 10,624 | |||||||||||||||
| Income from continuing operations | $ | 40,190 | $ | 40,409 | $ | 40,919 | $ | 36,042 | $ | 31,739 | ||||||||||
| Loss from discontinued operations, net of tax | — | — | — | (504 | ) | (654 | ) | |||||||||||||
| Net income | $ | 40,190 | $ | 40,409 | $ | 40,919 | $ | 35,538 | $ | 31,085 | ||||||||||
| Preferred stock dividends | 176 | 329 | 353 | 352 | 353 | |||||||||||||||
| Net Income available to common stockholders | $ | 40,014 | $ | 40,080 | $ | 40,566 | $ | 35,186 | $ | 30,732 | ||||||||||
| Diluted net income per share | $ | 0.45 | $ | 0.46 | $ | 0.46 | $ | 0.40 | $ | 0.35 | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||||||||||
| (in millions) | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Cash and due from banks | $ | 492.4 | $ | 164.4 | $ | 258.8 | $ | 379.3 | $ | 354.8 | ||||||||||
| Securities purchased under agreement to resell | — | — | — | — | 111.1 | |||||||||||||||
| Cash and cash equivalents | 492.4 | 164.4 | 258.8 | 379.3 | 465.9 | |||||||||||||||
| Securities and money market investments | 1,453.7 | 1,547.8 | 1,597.3 | 1,606.7 | 1,671.3 | |||||||||||||||
| Loans held for investment: | ||||||||||||||||||||
| Commercial | 3,725.2 | 3,532.3 | 3,293.2 | 3,028.0 | 2,725.1 | |||||||||||||||
| Commercial real estate - non-owner occupied | 2,113.8 | 2,052.6 | 1,993.3 | 1,934.0 | 1,844.3 | |||||||||||||||
| Commercial real estate - owner occupied | 1,818.0 | 1,732.9 | 1,620.3 | 1,603.4 | 1,604.5 | |||||||||||||||
| Construction and land development | 842.9 | 748.1 | 671.8 | 609.1 | 550.8 | |||||||||||||||
| Residential real estate | 292.2 | 299.4 | 317.5 | 328.6 | 345.3 | |||||||||||||||
| Consumer | 26.5 | 33.0 | 33.4 | 41.4 | 38.6 | |||||||||||||||
| Gross loans and deferred fees, net | 8,818.6 | 8,398.3 | 7,929.5 | 7,544.5 | 7,108.6 | |||||||||||||||
| Allowance for credit losses | (112.1 | ) | (110.2 | ) | (109.2 | ) | (105.9 | ) | (103.9 | ) | ||||||||||
| Loans, net | 8,706.5 | 8,288.1 | 7,820.3 | 7,438.6 | 7,004.7 | |||||||||||||||
| Premises and equipment, net | 114.3 | 113.8 | 112.1 | 109.6 | 106.6 | |||||||||||||||
| Other assets acquired through foreclosure, net | 63.8 | 57.1 | 51.8 | 59.3 | 56.5 | |||||||||||||||
| Bank owned life insurance | 142.9 | 142.0 | 143.2 | 142.5 | 141.5 | |||||||||||||||
| Goodwill and other intangibles, net | 25.6 | 25.9 | 26.2 | 26.5 | 26.8 | |||||||||||||||
| Other assets | 252.7 | 261.4 | 279.1 | 261.1 | 273.3 | |||||||||||||||
| Total assets | $ | 11,251.9 | $ | 10,600.5 | $ | 10,288.8 | $ | 10,023.6 | $ | 9,746.6 | ||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 2,657.4 | $ | 2,288.0 | $ | 2,246.7 | $ | 2,278.8 | $ | 2,093.6 | ||||||||||
| Interest bearing: | ||||||||||||||||||||
| Demand | 936.5 | 854.9 | 809.4 | 794.8 | 750.4 | |||||||||||||||
| Savings and money market | 4,121.0 | 3,869.7 | 3,685.0 | 3,637.4 | 3,672.3 | |||||||||||||||
| Time certificates | 1,947.4 | 1,918.4 | 1,956.5 | 1,758.5 | 1,632.7 | |||||||||||||||
| Total deposits | 9,662.3 | 8,931.0 | 8,697.6 | 8,469.5 | 8,149.0 | |||||||||||||||
| Customer repurchase agreements | 47.2 | 54.9 | 53.0 | 53.7 | 57.4 | |||||||||||||||
| Total customer funds | 9,709.5 | 8,985.9 | 8,750.6 | 8,523.2 | 8,206.4 | |||||||||||||||
| Securities sold short | — | — | — | — | 109.8 | |||||||||||||||
| Borrowings | 275.2 | 390.3 | 330.8 | 337.5 | 342.8 | |||||||||||||||
| Junior subordinated debt | 40.7 | 40.4 | 41.8 | 42.7 | 42.8 | |||||||||||||||
| Accrued interest payable and other liabilities | 175.2 | 183.0 | 162.5 | 162.5 | 150.0 | |||||||||||||||
| Total liabilities | 10,200.6 | 9,599.6 | 9,285.7 | 9,065.9 | 8,851.8 | |||||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||
| Common stock and additional paid-in capital | 831.9 | 828.3 | 807.2 | 803.4 | 795.3 | |||||||||||||||
| Preferred stock | 70.5 | 70.5 | 141.0 | 141.0 | 141.0 | |||||||||||||||
| Retained earnings (accumulated deficit) | 125.5 | 85.5 | 45.4 | 4.8 | (30.4 | ) | ||||||||||||||
| Accumulated other comprehensive income (loss) | 23.4 | 16.6 | 9.5 | 8.5 | (11.1 | ) | ||||||||||||||
| Total stockholders' equity | 1,051.3 | 1,000.9 | 1,003.1 | 957.7 | 894.8 | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 11,251.9 | $ | 10,600.5 | $ | 10,288.8 | $ | 10,023.6 | $ | 9,746.6 | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Changes in the Allowance For Credit Losses | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Balance, beginning of period | $ | 110,216 | $ | 109,161 | $ | 105,937 | $ | 103,899 | $ | 100,050 | ||||||||||
| Provision for credit losses | 700 | 300 | 419 | 507 | 3,500 | |||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||
| Commercial and industrial | 916 | 1,499 | 1,053 | 1,254 | 922 | |||||||||||||||
| Commercial real estate - non-owner occupied | 277 | 229 | 1,226 | 1,052 | 83 | |||||||||||||||
| Commercial real estate - owner occupied | 106 | 43 | 553 | 196 | 477 | |||||||||||||||
| Construction and land development | 157 | 1,268 | 182 | 498 | 211 | |||||||||||||||
| Residential real estate | 533 | 261 | 768 | 314 | 553 | |||||||||||||||
| Consumer | 40 | 64 | 34 | 191 | 170 | |||||||||||||||
| Total recoveries | 2,029 | 3,364 | 3,816 | 3,505 | 2,416 | |||||||||||||||
| Loans charged-off: | ||||||||||||||||||||
| Commercial and industrial | 393 | 1,743 | 110 | 1,039 | 1,478 | |||||||||||||||
| Commercial real estate - non-owner occupied | — | — | 158 | 99 | 160 | |||||||||||||||
| Commercial real estate - owner occupied | — | 270 | 35 | 230 | 11 | |||||||||||||||
| Construction and land development | — | 8 | — | 78 | — | |||||||||||||||
| Residential real estate | 400 | 377 | 423 | 523 | 406 | |||||||||||||||
| Consumer | 54 | 211 | 285 | 5 | 12 | |||||||||||||||
| Total loans charged-off | 847 | 2,609 | 1,011 | 1,974 | 2,067 | |||||||||||||||
| Net loan recoveries | (1,182 | ) | (755 | ) | (2,805 | ) | (1,531 | ) | (349 | ) | ||||||||||
| Balance, end of period | $ | 112,098 | $ | 110,216 | $ | 109,161 | $ | 105,937 | $ | 103,899 | ||||||||||
| Net recoveries to average loans outstanding - annualized | (0.06 | )% | (0.04 | )% | (0.15 | )% | (0.09 | )% | (0.02 | )% | ||||||||||
| Allowance for credit losses to gross loans | 1.27 | 1.31 | 1.38 | 1.40 | 1.46 | |||||||||||||||
| Nonaccrual loans | $ | 60,742 | $ | 67,659 | $ | 75,092 | $ | 64,345 | $ | 70,401 | ||||||||||
| Repossessed assets | 63,759 | 57,150 | 51,787 | 59,292 | 56,450 | |||||||||||||||
| Loans past due 90 days, still accruing | 3,730 | 5,132 | 3,558 | 3,001 | 167 | |||||||||||||||
| Loans past due 30 to 89 days, still accruing | 14,137 | 9,804 | 16,500 | 5,123 | 11,087 | |||||||||||||||
| Classified loans on accrual | 76,090 | 90,393 | 107,776 | 133,220 | 125,903 | |||||||||||||||
| Special mention loans | 100,345 | 97,504 | 98,265 | 90,534 | 117,540 | |||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||
Average | Interest | Average Yield / | Average | Interest | Average Yield / | |||||||||||||||||
($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | |||||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||
| Loans (1) | $ | 8,546.8 | $ | 100,391 | 4.97 | % | $ | 6,893.2 | $ | 86,804 | 5.27 | % | ||||||||||
| Securities (1) | 1,479.4 | 9,788 | 3.09 | 1,651.7 | 11,325 | 3.15 | ||||||||||||||||
| Federal funds sold and other | 136.2 | 783 | 2.30 | 210.3 | 572 | 1.09 | ||||||||||||||||
| Total interest earning assets | 10,162.4 | 110,962 | 4.66 | 8,755.2 | 98,701 | 4.77 | ||||||||||||||||
| Non-interest earning assets | ||||||||||||||||||||||
| Cash and due from banks | 118.1 | 137.5 | ||||||||||||||||||||
| Allowance for credit losses | (111.0 | ) | (101.2 | ) | ||||||||||||||||||
| Bank owned life insurance | 142.4 | 140.9 | ||||||||||||||||||||
| Other assets | 450.1 | 433.1 | ||||||||||||||||||||
| Total assets | $ | 10,762.0 | $ | 9,365.5 | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 920.0 | $ | 394 | 0.17 | % | $ | 765.0 | $ | 384 | 0.20 | % | ||||||||||
| Savings and money market | 3,909.4 | 2,776 | 0.28 | 3,452.3 | 2,562 | 0.30 | ||||||||||||||||
| Time certificates of deposit | 1,935.5 | 1,976 | 0.41 | 1,619.6 | 1,719 | 0.42 | ||||||||||||||||
| Total interest-bearing deposits | 6,764.9 | 5,146 | 0.30 | 5,836.9 | 4,665 | 0.32 | ||||||||||||||||
| Short-term borrowings | 177.5 | 1,751 | 3.95 | 163.4 | 130 | 0.32 | ||||||||||||||||
| Long-term debt | 202.0 | 516 | 1.02 | 301.8 | 2,708 | 3.59 | ||||||||||||||||
| Junior subordinated debt | 40.4 | 441 | 4.36 | 41.9 | 421 | 4.02 | ||||||||||||||||
| Total interest-bearing liabilities | 7,184.8 | 7,854 | 0.44 | 6,344.0 | 7,924 | 0.50 | ||||||||||||||||
| Non-interest-bearing liabilities | ||||||||||||||||||||||
| Non-interest-bearing demand deposits | 2,369.9 | 2,054.1 | ||||||||||||||||||||
| Other liabilities | 177.1 | 81.1 | ||||||||||||||||||||
| Stockholders’ equity | 1,030.2 | 886.3 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 10,762.0 | $ | 9,365.5 | ||||||||||||||||||
| Net interest income and margin | $ | 103,108 | 4.35 | % | $ | 90,777 | 4.41 | % | ||||||||||||||
| Net interest spread | 4.22 | % | 4.27 | % | ||||||||||||||||||
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $7,389 and $5,705 for the first quarters of 2015 and 2014, respectively. | ||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| Balance Sheets: | ||||||||||||||||||||||||
| Arizona | Nevada | California | Central | Corporate & | Consolidated | |||||||||||||||||||
| At March 31, 2015 | (dollars in millions) | |||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 2.3 | $ | 10.8 | $ | 2.6 | $ | — | $ | 1,930.4 | $ | 1,946.1 | ||||||||||||
| Loans, net of deferred loan fees and costs | 2,383.5 | 1,805.5 | 1,799.6 | 2,788.3 | 41.7 | 8,818.6 | ||||||||||||||||||
| Less: allowance for credit losses | (30.3 | ) | (23.0 | ) | (22.9 | ) | (35.4 | ) | (0.5 | ) | (112.1 | ) | ||||||||||||
| Total loans | 2,353.2 | 1,782.5 | 1,776.7 | 2,752.9 | 41.2 | 8,706.5 | ||||||||||||||||||
| Other assets acquired through foreclosure, net | 20.5 | 23.2 | — | — | 20.1 | 63.8 | ||||||||||||||||||
| Goodwill and other intangible assets, net | — | 25.6 | — | — | — | 25.6 | ||||||||||||||||||
| Other assets | 42.3 | 65.8 | 21.0 | 22.2 | 358.6 | 509.9 | ||||||||||||||||||
| Total assets | $ | 2,418.3 | $ | 1,907.9 | $ | 1,800.3 | $ | 2,775.1 | $ | 2,350.3 | $ | 11,251.9 | ||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Deposits | $ | 2,344.0 | $ | 3,362.3 | $ | 2,514.1 | $ | 1,113.7 | $ | 328.2 | $ | 9,662.3 | ||||||||||||
| Other borrowings | — | — | — | — | 275.2 | 275.2 | ||||||||||||||||||
| Other liabilities | 16.5 | 37.7 | 4.5 | 86.1 | 118.3 | 263.1 | ||||||||||||||||||
| Total liabilities | 2,360.5 | 3,400.0 | 2,518.6 | 1,199.8 | 721.7 | 10,200.6 | ||||||||||||||||||
| Allocated equity: | 264.0 | 227.0 | 208.2 | 284.3 | 67.8 | 1,051.3 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,624.5 | $ | 3,627.0 | $ | 2,726.8 | $ | 1,484.1 | $ | 789.5 | $ | 11,251.9 | ||||||||||||
| Excess funds provided (used) | 206.2 | 1,719.1 | 926.5 | (1,291.0 | ) | (1,560.8 | ) | — | ||||||||||||||||
| No. of branches | 11 | 18 | 11 | — | — | 40 | ||||||||||||||||||
| No. of full-time equivalent employees | 212 | 276 | 220 | 102 | 321 | 1,131 | ||||||||||||||||||
| At December 31, 2014 | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 2.3 | $ | 5.0 | $ | 2.5 | $ | — | $ | 1,702.4 | $ | 1,712.2 | ||||||||||||
| Loans, net of deferred loan fees and costs | 2,341.9 | 1,668.7 | 1,751.7 | 2,590.0 | 46.0 | 8,398.3 | ||||||||||||||||||
| Less: allowance for credit losses | (30.7 | ) | (21.9 | ) | (23.0 | ) | (34.0 | ) | (0.6 | ) | (110.2 | ) | ||||||||||||
| Total loans | 2,311.2 | 1,646.8 | 1,728.7 | 2,556.0 | 45.4 | 8,288.1 | ||||||||||||||||||
| Other assets acquired through foreclosure, net | 15.5 | 21.0 | — | — | 20.6 | 57.1 | ||||||||||||||||||
| Goodwill and other intangible assets, net | — | 25.9 | — | — | — | 25.9 | ||||||||||||||||||
| Other assets | 34.8 | 64.2 | 21.5 | 22.9 | 373.8 | 517.2 | ||||||||||||||||||
| Total assets | $ | 2,363.8 | $ | 1,762.9 | $ | 1,752.7 | $ | 2,578.9 | $ | 2,142.2 | $ | 10,600.5 | ||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Deposits | $ | 2,178.0 | $ | 3,230.6 | $ | 2,328.5 | $ | 946.6 | $ | 247.3 | $ | 8,931.0 | ||||||||||||
| Other borrowings | — | — | — | — | 390.3 | 390.3 | ||||||||||||||||||
| Other liabilities | 17.4 | 40.8 | 9.1 | 72.4 | 138.6 | 278.3 | ||||||||||||||||||
| Total liabilities | 2,195.4 | 3,271.4 | 2,337.6 | 1,019.0 | 776.2 | 9,599.6 | ||||||||||||||||||
| Allocated equity: | 250.8 | 209.0 | 197.7 | 232.9 | 110.5 | 1,000.9 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,446.2 | $ | 3,480.4 | $ | 2,535.3 | $ | 1,251.9 | $ | 886.7 | $ | 10,600.5 | ||||||||||||
| Excess funds provided (used) | 82.4 | 1,717.5 | 782.6 | (1,327.0 | ) | (1,255.5 | ) | — | ||||||||||||||||
| No. of branches | 11 | 18 | 11 | — | — | 40 | ||||||||||||||||||
| No. of full-time equivalent employees | 215 | 295 | 227 | 99 | 295 | 1,131 | ||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| Arizona | Nevada | California | Central | Corporate & | Consolidated | |||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||
| At March 31, 2014 | ||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 3.3 | $ | 7.0 | $ | 2.6 | $ | 0.5 | $ | 2,123.8 | $ | 2,137.2 | ||||||||||||
| Loans, net of deferred loan fees and costs | 2,032.3 | 1,723.8 | 1,663.1 | 1,621.2 | 68.2 | 7,108.6 | ||||||||||||||||||
| Less: allowance for credit losses | (29.7 | ) | (25.2 | ) | (24.3 | ) | (23.7 | ) | (1.0 | ) | (103.9 | ) | ||||||||||||
| Total loans | 2,002.6 | 1,698.6 | 1,638.8 | 1,597.5 | 67.2 | 7,004.7 | ||||||||||||||||||
| Other assets acquired through foreclosure, net | 11.9 | 21.9 | 0.3 | — | 22.4 | 56.5 | ||||||||||||||||||
| Goodwill and other intangible assets, net | 2.4 | 24.4 | — | — | — | 26.8 | ||||||||||||||||||
| Other assets | 33.8 | 67.8 | 25.5 | 18.0 | 376.3 | 521.4 | ||||||||||||||||||
| Total assets | $ | 2,054.0 | $ | 1,819.7 | $ | 1,667.2 | $ | 1,616.0 | $ | 2,589.7 | $ | 9,746.6 | ||||||||||||
| Liabilities: | ||||||||||||||||||||||||
| Deposits | $ | 2,166.0 | $ | 3,024.6 | $ | 1,867.3 | $ | 845.1 | $ | 246.0 | $ | 8,149.0 | ||||||||||||
| Other borrowings | — | — | — | — | 342.8 | 342.8 | ||||||||||||||||||
| Other liabilities | 21.7 | 48.3 | 9.8 | 20.4 | 259.8 | 360.0 | ||||||||||||||||||
| Total liabilities | 2,187.7 | 3,072.9 | 1,877.1 | 865.5 | 848.6 | 8,851.8 | ||||||||||||||||||
| Allocated equity: | 219.4 | 207.9 | 178.7 | 123.2 | 165.6 | 894.8 | ||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,407.1 | $ | 3,280.8 | $ | 2,055.8 | $ | 988.7 | $ | 1,014.2 | $ | 9,746.6 | ||||||||||||
| Excess funds provided (used) | 353.1 | 1,461.1 | 388.6 | (627.3 | ) | (1,575.5 | ) | — | ||||||||||||||||
| No. of branches | 10 | 18 | 11 | — | — | 39 | ||||||||||||||||||
| No. of full-time equivalent employees | 216 | 326 | 217 | 93 | 253 | 1,105 | ||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Operating Segment Results | ||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| Income Statements: | ||||||||||||||||||||||||
| Arizona | Nevada | California | Central | Corporate & | Consolidated | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three Months Ended March 31, 2015: | ||||||||||||||||||||||||
| Net interest income (expense) | $ | 28,985 | $ | 29,209 | $ | 26,943 | $ | 23,310 | $ | (5,339 | ) | $ | 103,108 | |||||||||||
| Provision for credit losses | (668 | ) | 349 | (395 | ) | 1,409 | 5 | 700 | ||||||||||||||||
| Net interest income (expense) after provision for credit losses | 29,653 | 28,860 | 27,338 | 21,901 | (5,344 | ) | 102,408 | |||||||||||||||||
| Non-interest income | 939 | 2,283 | 716 | 716 | 1,279 | 5,933 | ||||||||||||||||||
| Non-interest expense | (14,761 | ) | (14,474 | ) | (13,638 | ) | (9,278 | ) | (1,882 | ) | (54,033 | ) | ||||||||||||
| Income (loss) from continuing operations before income taxes | 15,831 | 16,669 | 14,416 | 13,339 | (5,947 | ) | 54,308 | |||||||||||||||||
| Income tax expense (benefit) | 6,210 | 5,834 | 6,061 | 5,002 | (8,989 | ) | 14,118 | |||||||||||||||||
| Net income | $ | 9,621 | $ | 10,835 | $ | 8,355 | $ | 8,337 | $ | 3,042 | $ | 40,190 | ||||||||||||
| Three Months Ended March 31, 2014: | ||||||||||||||||||||||||
| Net interest income (expense) | $ | 26,608 | $ | 28,595 | $ | 22,792 | $ | 13,964 | $ | (1,182 | ) | $ | 90,777 | |||||||||||
| Provision for credit losses | 1,558 | (884 | ) | 655 | 2,170 | 1 | 3,500 | |||||||||||||||||
| Net interest income (expense) after provision for credit losses | 25,050 | 29,479 | 22,137 | 11,794 | (1,183 | ) | 87,277 | |||||||||||||||||
| Non-interest income | 777 | 2,137 | 1,183 | 82 | 394 | 4,573 | ||||||||||||||||||
| Non-interest expense | (13,261 | ) | (15,084 | ) | (12,976 | ) | (6,508 | ) | (1,658 | ) | (49,487 | ) | ||||||||||||
| Income (loss) from continuing operations before income taxes | 12,566 | 16,532 | 10,344 | 5,368 | (2,447 | ) | 42,363 | |||||||||||||||||
| Income tax expense (benefit) | 4,929 | 5,787 | 4,350 | 2,013 | (6,455 | ) | 10,624 | |||||||||||||||||
| Income from continuing operations | 7,637 | 10,745 | 5,994 | 3,355 | 4,008 | 31,739 | ||||||||||||||||||
| Loss from discontinued operations, net | — | — | — | — | (654 | ) | (654 | ) | ||||||||||||||||
| Net income | $ | 7,637 | $ | 10,745 | $ | 5,994 | $ | 3,355 | $ | 3,354 | $ | 31,085 | ||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Pre-Tax, Pre-Provision Operating Earnings by Quarter: | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Total non-interest income | $ | 5,933 | $ | 8,417 | $ | 5,992 | $ | 5,598 | $ | 4,573 | ||||||||||
| Less: | ||||||||||||||||||||
| Gains (losses) on sales of investment securities, net | 589 | 373 | 181 | (163 | ) | 366 | ||||||||||||||
| Unrealized (losses) gains on assets and liabilities measured at fair value, net | (309 | ) | 1,357 | 896 | 235 | (1,276 | ) | |||||||||||||
| Loss on extinguishment of debt | — | — | (502 | ) | — | — | ||||||||||||||
| Total operating non-interest income | 5,653 | 6,687 | 5,417 | 5,526 | 5,483 | |||||||||||||||
| Plus: net interest income | 103,108 | 102,145 | 98,073 | 93,898 | 90,777 | |||||||||||||||
| Net operating revenue (1) | $ | 108,761 | $ | 108,832 | $ | 103,490 | $ | 99,424 | $ | 96,260 | ||||||||||
| Total non-interest expense | $ | 54,033 | $ | 55,742 | $ | 49,778 | $ | 52,241 | $ | 49,487 | ||||||||||
| Less: | ||||||||||||||||||||
| Net (gain) loss on sales and valuations of repossessed and other assets | (351 | ) | (1,102 | ) | (1,956 | ) | 184 | (2,547 | ) | |||||||||||
| Merger / restructure expense | 159 | — | 15 | 26 | 157 | |||||||||||||||
| Total operating non-interest expense (1) | $ | 54,225 | $ | 56,844 | $ | 51,719 | $ | 52,031 | $ | 51,877 | ||||||||||
| Pre-tax, pre-provision operating earnings (2) | $ | 54,536 | $ | 51,988 | $ | 51,771 | $ | 47,393 | $ | 44,383 | ||||||||||
| Tangible Common Equity: | ||||||||||||||||||||
| Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||||||||||
| (dollars and shares in thousands) | ||||||||||||||||||||
| Total stockholders' equity | $ | 1,051,330 | $ | 1,000,928 | $ | 1,003,122 | $ | 957,664 | $ | 894,805 | ||||||||||
| Less: goodwill and intangible assets | 25,632 | 25,913 | 26,194 | 26,475 | 26,777 | |||||||||||||||
| Total tangible stockholders' equity | 1,025,698 | 975,015 | 976,928 | 931,189 | 868,028 | |||||||||||||||
| Less: preferred stock | 70,500 | 70,500 | 141,000 | 141,000 | 141,000 | |||||||||||||||
| Total tangible common equity | 955,198 | 904,515 | 835,928 | 790,189 | 727,028 | |||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 548 | 1,006 | 1,138 | 1,138 | 1,243 | |||||||||||||||
| Total tangible common equity, net of tax | $ | 955,746 | $ | 905,521 | $ | 837,066 | $ | 791,327 | $ | 728,271 | ||||||||||
| Total assets | $ | 11,251,943 | $ | 10,600,498 | $ | 10,288,824 | $ | 10,023,587 | $ | 9,746,624 | ||||||||||
| Less: goodwill and intangible assets, net | 25,632 | 25,913 | 26,194 | 26,475 | 26,777 | |||||||||||||||
| Tangible assets | 11,226,311 | 10,574,585 | 10,262,630 | 9,997,112 | 9,719,847 | |||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 548 | 1,006 | 1,138 | 1,138 | 1,243 | |||||||||||||||
| Total tangible assets, net of tax | $ | 11,226,859 | $ | 10,575,591 | $ | 10,263,768 | $ | 9,998,250 | $ | 9,721,090 | ||||||||||
| Tangible common equity ratio (3) | 8.5 | % | 8.6 | % | 8.2 | % | 7.9 | % | 7.5 | % | ||||||||||
| Common shares outstanding | 89,180 | 88,691 | 87,849 | 87,774 | 87,554 | |||||||||||||||
| Tangible book value per share, net of tax (4) | $ | 10.72 | $ | 10.21 | $ | 9.53 | $ | 9.02 | $ | 8.32 | ||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| Unaudited | ||||||||||||||||||||
| Efficiency Ratio by Quarter: | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Total operating non-interest expense | $ | 54,225 | $ | 56,844 | $ | 51,719 | $ | 52,031 | $ | 51,877 | ||||||||||
| Divided by: | ||||||||||||||||||||
| Total net interest income | 103,108 | 102,145 | 98,073 | 93,898 | 90,777 | |||||||||||||||
| Plus: | ||||||||||||||||||||
| Tax equivalent interest adjustment | 7,389 | 6,489 | 6,348 | 6,029 | 5,705 | |||||||||||||||
| Operating non-interest income | 5,653 | 6,687 | 5,417 | 5,526 | 5,483 | |||||||||||||||
| $ | 116,150 | $ | 115,321 | $ | 109,838 | $ | 105,453 | $ | 101,965 | |||||||||||
| Efficiency ratio - tax equivalent basis (5) | 46.7 | % | 49.3 | % | 47.1 | % | 49.3 | % | 50.9 | % | ||||||||||
Regulatory Capital: | ||||
| Basel III | ||||
| March 31, 2015 | ||||
| (in thousands) | ||||
| Common Equity Tier 1: | ||||
| Common equity | $ | 980,830 | ||
| Less: | ||||
| Accumulated other comprehensive income | 23,423 | |||
| Non-qualifying goodwill and intangibles | 24,127 | |||
| Disallowed deferred tax asset | 1,314 | |||
| Unrealized gain on trust preferred securities | 6,446 | |||
| Common equity Tier 1 (regulatory) (6) (9) | 925,520 | |||
| Plus: | ||||
| Trust preferred securities | 64,500 | |||
| Preferred stock | 70,500 | |||
| Less: | ||||
| Disallowed deferred tax asset | 1,972 | |||
| Unrealized gain on trust preferred securities | 9,669 | |||
| Tier 1 capital (7) (9) | $ | 1,048,879 | ||
| Divided by: estimated risk-weighted assets (regulatory (7) (9) | $ | 10,308,909 | ||
| Common equity Tier 1 ratio (7) (9) | 9.0 | % | ||
| Total Capital: | ||||
| Tier 1 capital (regulatory) (6) (9) | $ | 1,048,879 | ||
| Plus: | ||||
| Qualifying allowance for credit losses | 112,098 | |||
| Other | 2,124 | |||
| Less: Tier 2 qualifying capital deductions | 2,731 | |||
| Tier 2 capital | $ | 111,491 | ||
| Total capital | 1,160,370 | |||
| Tier 1 Capital: | ||||
| Classified assets | $ | 210,438 | ||
| Divided by: | ||||
| Common equity Tier 1 (regulatory) (6) (9) | 925,520 | |||
| Plus: Allowance for credit losses | 112,098 | |||
| Total Common equity Tier 1 plus allowance for credit losses | $ | 1,037,618 | ||
| Classified assets to common equity Tier 1 plus allowance (8) (9) | 20 | % | ||
| (1) | We believe these non-GAAP measurements provide a useful indication of the cash generating capacity of the Company. | |
| (2) | We believe this non-GAAP measurement is a key indicator of the earnings power of the Company. | |
| (3) | We believe these non-GAAP ratios provide an important metric with which to analyze and evaluate financial condition and capital strength. | |
| (4) | 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. | |
| (5) | We believe this non-GAAP ratio provides a useful metric to measure the operating efficiency of the Company. | |
| (6) | Under the current guidelines of the Federal Reserve and the Federal Deposit Insurance Corporation, common equity Tier 1 capital consists of common stock, retained earnings, and minority interests in certain subsidiaries, less most other intangible assets. | |
| (7) | Common equity Tier 1 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 the risk categories defined under new capital guidelines. The aggregated dollar amount in each category is then multiplied by the risk weighting assigned to that category. The resulting weighted values from each category are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator (risk-weighted assets) to determine the Common equity Tier 1 ratio. Common equity Tier 1 is divided by the risk-weighted assets to determine the common equity Tier 1 ratio. We believe this non-GAAP ratio provides an important metric with which to analyze and evaluate financial condition and capital strength. | |
| (8) | We believe this non-GAAP ratio provides an important regulatory metric to analyze asset quality. | |
| (9) | Current quarter is preliminary until Call Reports are filed. |
Contacts:
Dale Gibbons, 602-952-5476
