Western Alliance Bancorporation (NYSE:WAL) (the "Company") announced today its financial results for the third quarter 2015. These results include the performance of Bridge Bank, which was acquired on June 30, 2015.
Third Quarter 2015 Highlights:
- Net income of $59.1 million, compared to $34.7 million for the second quarter 2015, and $40.9 million for the third quarter 2014
- Earnings per share of $0.58, compared to $0.39 per share in the second quarter 2015, and $0.46 per share in the third quarter 2014
- Net income and earnings per share above includes a total benefit of $0.05 per share from net unrealized gains on assets and liabilities measured at fair value, non-recurring tax benefits, and accelerated recognition of accretion income, offset by acquisition and other non-recurring expenses
- Pre-tax, pre-provision operating earnings of $73.7 million, up 23.5% from $59.7 million in the second quarter 2015, and up 42.2% from $51.9 million in the third quarter 20141
- Net operating revenue of $145.9 million, constituting year-over-year growth of 40.9%, or $42.4 million, compared to an increase in operating expenses of 39.6%, or $20.5 million1
- Net interest margin of 4.59%, compared to 4.41% in the second quarter 2015, and 4.43% in the third quarter 2014
- Efficiency ratio of 46.8%, compared to 44.7% in the second quarter 2015, and 47.1% in the third quarter 20141
- Total loans of $10.79 billion, up $427 million from June 30, 2015, and up $2.86 billion from September 30, 2014
- Total deposits of $11.61 billion, up $203 million from June 30, 2015, and up $2.91 billion from September 30, 2014
- Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 0.76% of total assets, from 0.88% at June 30, 2015, and from 1.23% at September 30, 2014
- Net loan recoveries (annualized) to average loans outstanding of 0.08%, compared to 0.13% in the second quarter 2015, and 0.15% in the third quarter 2014
- Tangible common equity ratio of 8.9%, compared to 8.7% at June 30, 2015, and 8.2% at September 30, 2014
- Stockholders' equity of $1.58 billion, an increase of $69 million from June 30, 2015, and an increase of $581 million from September 30, 2014
- Tangible book value per share, net of tax, of $11.86, an increase of 5.4% from $11.25 at June 30, 2015, and an increase of 24.4% from $9.53 at September 30, 20141
Financial Performance
"Western Alliance performed strongly in all key metrics in the third quarter," remarked Robert Sarver, Chief Executive Officer and Chairman of Western Alliance Bancorporation, "delivering record net income of $59.1 million and earnings per share of $0.58 to our shareholders. Thanks in part to the recent addition of Bridge Bank, net operating revenue was $145.9 million, an increase of over 40% from last year. Notably, fee income increased primarily due to Bridge. Loans increased $427 million from the prior quarter to $10.8 billion and deposits also increased $203 million to $11.6 billion. We also recorded our seventh consecutive quarter of net loan recoveries." Sarver continued, "The first quarter of Bridge's operations under Western Alliance has exceeded our expectations in terms of financial performance, customer retention, and growth."
Income Statement
Net interest income was $137.4 million in the third quarter 2015, an increase of $28.7 million, or 26.4% from $108.7 million in the second quarter 2015, and an increase of $39.3 million, or 40.1%, compared to the third quarter 2014. Net interest income in the third quarter 2015 includes $7.0 million of total accretion income from acquired loans.
The Company’s net interest margin increased in the third quarter 2015 to 4.59%, compared to 4.41% in the second quarter 2015, and 4.43% in the third quarter 2014. The increase in net interest margin for the quarter primarily relates to accretion from acquired Bridge loans.
Operating non-interest income was $8.5 million for the third quarter 2015, compared to $5.6 million for the second quarter of 2015, and $5.5 million for the third quarter 2014.1
Net operating revenue was $145.9 million for the third quarter 2015, an increase of $31.6 million, or 27.6%, compared to $114.3 million for the second quarter 2015, and an increase of $42.4 million, or 40.9%, compared to $103.6 million for the third quarter 2014.1
Operating non-interest expense was $72.2 million for the third quarter 2015, compared to $54.6 million for the second quarter 2015, and $51.7 million for the third quarter 2014.1 The Company’s operating efficiency ratio1 on a tax equivalent basis was 46.8% for the third quarter 2015, a decline from 44.7% for the second quarter 2015, and an improvement from 47.1% for the third quarter 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 third quarter 2015, the Company’s pre-tax, pre-provision operating earnings were $73.7 million, up 23.5% from $59.7 million in the second quarter 2015, and up 42.2% from $51.9 million in the third quarter 2014.1
The non-operating items for the third quarter 2015 consisted primarily of net unrealized gains on assets and liabilities measured at fair value of $5.4 million. Other non-operating items include acquisition / restructure expense of $0.8 million incurred in connection with the acquisition of Bridge, $0.1 million of net losses on sales of investment securities, and a $0.1 million net gain on sales and valuations of repossessed and other assets.
The Company had 1,415 full-time equivalent employees and 47 offices at September 30, 2015, compared to 1,120 employees and 39 offices at September 30, 2014.
Balance Sheet
Gross loans totaled $10.79 billion at September 30, 2015, an increase of $427 million from $10.36 billion at June 30, 2015, and an increase of $2.86 billion from $7.93 billion at September 30, 2014. The year-over-year increase relates primarily to the Bridge acquisition as of June 30, 2015. At September 30, 2015, the allowance for credit losses was 1.09% of total loans, compared to 1.11% at June 30, 2015, and 1.38% at September 30, 2014, reflecting an improvement in the Company’s asset quality profile and historical losses. Consistent with GAAP, the allowance for credit losses is not carried over in an acquisition because acquired loans are recorded at fair value, which discounts the loans based on expected future cash flows. The allowance for credit losses as a percent of total loans, adjusted to include credit discounts on acquired loans, was 1.32% at September 30, 2015, compared to 1.35% at June 30, 2015, and 1.54% at September 30, 2014.
Deposits totaled $11.61 billion at September 30, 2015, an increase of $203 million from $11.41 billion at June 30, 2015, and an increase of $2.91 billion from September 30, 2014. Non-interest bearing deposits were $4.08 billion at September 30, 2015, compared to $3.92 billion at June 30, 2015, and $2.25 billion at September 30, 2014. Non-interest bearing deposits comprised 35.1% of total deposits at September 30, 2015, compared to 34.4% at June 30, 2015, and 25.8% at September 30, 2014. The increase in the proportion of the Company's non-interest bearing deposits from the prior year is due to Bridge's higher proportion of non-interest bearing deposits. The proportion of savings and money market balances to total deposits decreased to 40.2% from 41.5% at June 30, 2015, and from 42.4% at September 30, 2014. Certificates of deposit as a percentage of total deposits were 15.8% at September 30, 2015, compared to 15.3% at June 30, 2015, and 22.5% at September 30, 2014. The Company’s ratio of loans to deposits was 92.9% at September 30, 2015, compared to 90.8% at June 30, 2015, and 91.2% at September 30, 2014.
Borrowings totaled $300 million at September 30, 2015, an increase of $230 million from $70 million at June 30, 2015, and a decrease of $31 million from $331 million at September 30, 2014. The increase from the prior quarter is due to increased Federal Home Loan Bank ("FHLB") overnight advances. The decrease from the prior year is due to the payoff of all of our outstanding 10% Senior Notes, which decreased borrowings by $58 million, offset by increased FHLB overnight advances. Qualifying debt totaled $207 million at September 30, 2015, compared to $208 million at June 30, 2015, and an increase of $165 million from $42 million at September 30, 2014. The year-over-year increase is primarily due to the issuance of $150 million of subordinated debt and the assumption of $11 million in junior subordinated debt from Bridge in the second quarter 2015.
Stockholders’ equity at September 30, 2015 was $1.58 billion, compared to $1.51 billion at June 30, 2015, and $1.00 billion at September 30, 2014. The increase in stockholders' equity from September 30, 2014 is primarily due to the issuance of 12.5 million shares of the Company's common stock in connection with the acquisition of Bridge.
At September 30, 2015, tangible common equity, net of tax, was 8.9% of tangible assets1 and total capital under the Basel III federal regulatory standards was 12.1% of risk-weighted assets. The Company’s tangible book value per share1 was $11.86 at September 30, 2015, up 24.4% from September 30, 2014.
Total assets increased 3.6% to $13.96 billion at September 30, 2015, from $13.47 billion at June 30, 2015, and increased 35.6% from $10.29 billion at September 30, 2014. The increase in total assets from the prior year was primarily related to the Bridge acquisition.
Asset Quality
There was no provision for credit losses for the second and third quarters of 2015, compared to $0.4 million for the third quarter 2014. Net loan recoveries in the third quarter 2015 were $2.0 million, or 0.08% of average loans (annualized), compared to $3.0 million, or 0.13%, in the second quarter 2015, respectively, and $2.8 million, or 0.15%, for the third quarter 2014, respectively.
Nonaccrual loans decreased $11.7 million to $47.7 million during the quarter. Loans past due 90 days and still accruing interest totaled $5.6 million at September 30, 2015, compared to $8.3 million at June 30, 2015, and $3.6 million at September 30, 2014. Loans past due 30-89 days and still accruing interest totaled $19.6 million at quarter end, an increase from $4.0 million at June 30, 2015, and an increase from $16.5 million at September 30, 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 17.2% at September 30, 2015, from 18.5% at June 30, 2015, and from 21.5% at September 30, 2014.1
Segment Highlights
The Company's reportable segments are aggregated primarily based on geographic location, services offered, and markets served. As a result of the acquisition of Bridge on June 30, 2015, former Bridge activities were allocated between the newly formed Northern California segment and the Central Business Lines ("CBL") segment. As a substantial portion of Bridge's balance sheet is generated from nationally-focused business lines, the operations of these business lines are included in the CBL segment. Substantially all of the remaining assets and liabilities are included in the Northern California segment. The Southern California segment represents legacy Western Alliance operations in California, excluding two branches located in northern California, which are now included in the Northern California segment.
The Arizona, Nevada, Southern California, and Northern California segments provide full service banking and related services to their respective markets. The Company's CBL segment provides specialized banking services to niche markets and, as of June 30, 2015, includes the operations of Bridge. These CBLs are managed centrally and are broader in geographic scope than 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, Southern California, Northern California, and CBL segments include loan and deposit growth, asset quality, and pre-tax income.
Arizona reported a gross loan balance of $2.71 billion at September 30, 2015, an increase of $273 million during the quarter, and an increase of $501 million during the last 12 months. Deposits were $2.46 billion at September 30, 2015, an increase of $94 million during the quarter, and an increase of $386 million during the last 12 months. Pre-tax income was $16.8 million and $14.8 million for the three months ended September 30, 2015 and 2014, respectively, and $50.3 million and $44.7 million for the nine months ended September 30, 2015 and 2014, respectively.
Nevada reported a gross loan balance of $1.78 billion at September 30, 2015, an increase of $18 million during the quarter, and an increase of $99 million during the last 12 months. Deposits were $3.33 billion at September 30, 2015, an increase of $13 million during the quarter, and an increase of $136 million during the last 12 months. Pre-tax income was $19.9 million and $21.2 million for the three months ended September 30, 2015 and 2014, respectively, and $57.0 million and $55.4 million for the nine months ended September 30, 2015 and 2014, respectively.
Southern California reported a gross loan balance of $1.71 billion at September 30, 2015, an increase of $48 million during the quarter, and an increase of $177 million during the last 12 months. Deposits were $1.94 billion at September 30, 2015, a decrease of $8 million during the quarter, and an increase of $158 million during the last 12 months. Pre-tax income was $13.3 million and $11.9 million for the three months ended September 30, 2015 and 2014, respectively, and $37.6 million and $33.7 million for the nine months ended September 30, 2015 and 2014, respectively.
Northern California reported a gross loan balance of $1.17 billion at September 30, 2015, an increase of $88 million during the quarter, and an increase of $970 million during the last 12 months. Deposits were $1.47 billion at September 30, 2015, a decrease of $80 million during the quarter, and an increase of $901 million during the last 12 months. Results of operations for Northern California include the Company's two previously existing northern California branch operations and the results of operations of Bridge (excluding certain business lines reflected in the CBL segment) beginning on July 1, 2015. Pre-tax income was $12.3 million and $1.6 million for the three months ended September 30, 2015 and 2014, respectively, and $17.8 million and $4.0 million for the nine months ended September 30, 2015 and 2014, respectively.
CBL reported a gross loan balance of $3.39 billion at September 30, 2015, flat from the prior quarter, and an increase of $1.13 billion during the last 12 months. Deposits were $2.03 billion at September 30, 2015, an increase of $85 million during the quarter, and an increase of $1.12 billion during the last 12 months. Pre-tax income was $26.1 million and $9.6 million for the three months ended September 30, 2015 and 2014, respectively, and $53.4 million and $21.7 million for the nine months ended September 30, 2015 and 2014, respectively.
Acquisition of Bridge Capital Holdings
The balance sheet of Bridge was consolidated into the Company on June 30, 2015 and the results of Bridge's operations are reflected in the Company's results beginning on July 1, 2015. Goodwill related to the acquisition of Bridge totaled $266.1 million as of September 30, 2015, inclusive of a $6.5 million increase for measurement period adjustments. The estimated fair values of certain net assets are still preliminary and are subject to additional measurement period adjustments.
Effective as of the third quarter 2015, the Company elected early adoption of Accounting Standards Update 2015-16, an amended Financial Accounting Standards Board standard related to the accounting for measurement period adjustments resulting from business combinations. Under the amended standard, adjustments to provisional amounts that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined rather than retrospectively adjusting the provisional amounts at the acquisition date and revising comparative information for prior periods presented in the financial statements. Accordingly, all measurement period adjustments identified during the quarter have been recognized in the current reporting period.
Attached to this press release is summarized financial information for the quarter ended September 30, 2015.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2015 financial results at 12:00 p.m. ET on Friday, October 16, 2015. Participants may access the call by dialing 1-888-317-6003 and using passcode 3606316 or via live audio webcast using the website link http://services.choruscall.com/links/wal151016. 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 October 16th through 9:00 a.m. ET November 16th by dialing 1-877-344-7529 passcode: 10071677.
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 them 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 expectations with regard to Bridge Capital Holdings, the performance of the combined company following the acquisition of Bridge, 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
With more than $10 billion in assets, top-performing Western Alliance Bancorporation (NYSE: WAL) 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 service and a full spectrum of deposit, lending, treasury management, international banking and online banking products and services. Western Alliance Bank operates full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank and Torrey Pines Bank. The bank also serves business customers through a robust national platform of specialized financial services including Corporate Finance, Renewable Energy Group, Equity Fund Resources, Life Sciences Group, Mortgage Warehouse Lending, Public Finance, Resort Finance, Technology Finance and Alliance Association Bank. For more information visit westernalliancebancorp.com. For more information visit westernalliancebancorp.com.
1 See Reconciliation of Non-GAAP Financial Measures beginning on page 18.
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||
| Summary Consolidated Financial Data | ||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||||||||||
| 30-Sep-15 | 30-Sep-14 | Change | % | |||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||
| Total assets | $13,955.50 | $10,288.80 | 35.6 | % | ||||||||||||||||||||
| Total loans, net of deferred fees | 10,788.30 | 7,929.50 | 36.1 | |||||||||||||||||||||
| Securities and money market investments | 1,993.60 | 1,597.30 | 24.8 | |||||||||||||||||||||
| Total deposits | 11,610.40 | 8,697.60 | 33.5 | |||||||||||||||||||||
| Borrowings | 300 | 330.8 | (9.3 | ) | ||||||||||||||||||||
| Qualifying debt | 206.8 | 41.8 | 394.7 | |||||||||||||||||||||
| Stockholders' equity | 1,583.70 | 1,003.10 | 57.9 | |||||||||||||||||||||
| Tangible common equity, net of tax (1) | 1,213.70 | 837.1 | 45 | |||||||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
| 2015 | 2014 | Change % | 2015 | 2014 | Change % | |||||||||||||||||||||||||
| (in thousands) | (in thousands) | |||||||||||||||||||||||||||||
| Interest income | $ | 146,233 | $ | 105,554 | 38.5 | % | $ | 373,813 | $ | 306,228 | 22.1 | % | ||||||||||||||||||
| Interest expense | 8,826 | 7,481 | 18.0 | 24,580 | 23,480 | 4.7 | ||||||||||||||||||||||||
| Net interest income | 137,407 | 98,073 | 40.1 | 349,233 | 282,748 | 23.5 | ||||||||||||||||||||||||
| Provision for credit losses | — | 419 | (100.0 | ) | 700 | 4,426 | (84.2 | ) | ||||||||||||||||||||||
| Net interest income after provision for credit losses | 137,407 | 97,654 | 40.7 | 348,533 | 278,322 | 25.2 | ||||||||||||||||||||||||
| Non-interest income | 13,826 | 6,073 | 127.7 | 17,568 | 16,229 | 8.3 | ||||||||||||||||||||||||
| Non-interest expense | 72,916 | 49,859 | 46.2 | 188,158 | 151,572 | 24.1 | ||||||||||||||||||||||||
| Income from continuing operations before income taxes | 78,317 | 53,868 | 45.4 | 177,943 | 142,979 | 24.5 | ||||||||||||||||||||||||
| Income tax expense | 19,183 | 12,949 | 48.1 | 43,900 | 34,279 | 28.1 | ||||||||||||||||||||||||
| Income from continuing operations | 59,134 | 40,919 | 44.5 | 134,043 | 108,700 | 23.3 | ||||||||||||||||||||||||
| Loss on discontinued operations, net of tax | — | — | — | — | (1,158 | ) | (100.0 | ) | ||||||||||||||||||||||
| Net income | $ | 59,134 | $ | 40,919 | 44.5 | $ | 134,043 | $ | 107,542 | 24.6 | ||||||||||||||||||||
| Diluted earnings per share from continuing operations | $ | 0.58 | $ | 0.46 | 26.1 | $ | 1.44 | $ | 1.23 | 17.1 | ||||||||||||||||||||
| Diluted loss per share from discontinued operations | — | — | — | (0.01 | ) | |||||||||||||||||||||||||
| Diluted earnings per share available to common stockholders | $ | 0.58 | $ | 0.46 | 26.1 | $ | 1.44 | $ | 1.22 | 18.0 | ||||||||||||||||||||
| (1) See Reconciliation of Non-GAAP Financial Measures. | ||||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||||||
| Summary Consolidated Financial Data | ||||||||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||||||||
| Common Share Data: | ||||||||||||||||||||||||||||||||||||
At or for the Three Months Ended September 30, | At or for the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
| 2015 | 2014 | Change % | 2015 | 2014 | Change % | |||||||||||||||||||||||||||||||
| Diluted earnings per share available to common stockholders | $ | 0.58 | $ | 0.46 | 26.1 | % | $ | 1.44 | $ | 1.22 | 18.0 | % | ||||||||||||||||||||||||
| Book value per common share | $ | 14.79 | $ | 9.81 | 50.8 | |||||||||||||||||||||||||||||||
| Tangible book value per share, net of tax (1) | $ | 11.86 | $ | 9.53 | 24.4 | |||||||||||||||||||||||||||||||
| Average shares outstanding (in thousands): | ||||||||||||||||||||||||||||||||||||
| Basic | 100,776 | 86,723 | 16.2 | 92,345 | 86,495 | 6.8 | % | |||||||||||||||||||||||||||||
| Diluted | 101,520 | 87,572 | 15.9 | 92,932 | 87,345 | 6.4 | ||||||||||||||||||||||||||||||
| Common shares outstanding | 102,305 | 87,849 | 16.5 | |||||||||||||||||||||||||||||||||
| Selected Performance Ratios: | ||||||||||||||||||||||||||||||||||||
| Return on average assets (2) | 1.73 | % | 1.63 | % | 6.1 | % | 1.50 | % | 1.47 | % | 2.0 | % | ||||||||||||||||||||||||
| Return on average tangible common equity (1, 2) | 20.12 | 19.91 | 1.1 | 14.03 | 18.66 | (24.8 | ) | |||||||||||||||||||||||||||||
| Net interest margin (2) | 4.59 | 4.43 | 3.6 | 4.45 | 4.41 | 0.9 | ||||||||||||||||||||||||||||||
| Net interest spread | 4.43 | 4.30 | 3.0 | 4.31 | 4.27 | 0.9 | ||||||||||||||||||||||||||||||
| Efficiency ratio - tax equivalent basis (1) | 46.84 | 47.05 | (0.4 | ) | 46.12 | 49.04 | (6.0 | ) | ||||||||||||||||||||||||||||
| Loan to deposit ratio | 92.92 | 91.17 | 1.9 | |||||||||||||||||||||||||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||||||||||||||||||
| Net recoveries to average loans outstanding (2) | (0.08 | )% | (0.15 | )% | (46.7 | )% | (0.09 | )% | (0.09 | )% | — | % | ||||||||||||||||||||||||
| Nonaccrual loans to gross loans | 0.44 | 0.95 | (53.7 | ) | ||||||||||||||||||||||||||||||||
| Nonaccrual loans and repossessed assets to total assets | 0.76 | 1.23 | (38.2 | ) | ||||||||||||||||||||||||||||||||
| Loans past due 90 days and still accruing to total loans | 0.05 | 0.04 | 25.0 | |||||||||||||||||||||||||||||||||
| Allowance for credit losses to gross loans | 1.09 | 1.38 | (21.0 | ) | ||||||||||||||||||||||||||||||||
| Allowance for credit losses to nonaccrual loans | 245.48 | 145.37 | 68.9 | |||||||||||||||||||||||||||||||||
| Capital Ratios (1): | ||||||||||||||||||||||||
| Basel III | Basel I | |||||||||||||||||||||||
| September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||||||||||||||||||
| Tangible common equity | 8.9 | % | 8.7 | % | 8.2 | % | ||||||||||||||||||
| Common Equity Tier 1 (3) | 9.1 | 9.1 | 9.0 | |||||||||||||||||||||
| Tier 1 Leverage ratio (3) | 9.9 | 10.0 | 10.1 | |||||||||||||||||||||
| Tier 1 Capital (3) | 10.1 | 10.2 | 11.0 | |||||||||||||||||||||
| Total Capital (3) | 12.1 | 12.2 | 12.2 | |||||||||||||||||||||
| (1) | See Reconciliation of Non-GAAP Financial Measures. | ||
| (2) | Annualized for the three and nine month periods ended September 30, 2015 and 2014. | ||
| (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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||
| Loans | $ | 133,087 | $ | 94,436 | $ | 338,946 | $ | 271,823 | ||||||||||||||||
| Investment securities | 12,039 | 10,535 | 31,103 | 32,754 | ||||||||||||||||||||
| Other | 1,107 | 583 | 3,764 | 1,651 | ||||||||||||||||||||
| Total interest income | 146,233 | 105,554 | 373,813 | 306,228 | ||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Deposits | 5,550 | 5,172 | 16,058 | 14,767 | ||||||||||||||||||||
| Borrowings | 1,268 | 1,866 | 5,622 | 7,406 | ||||||||||||||||||||
| Qualifying debt | 2,008 | 443 | 2,900 | 1,307 | ||||||||||||||||||||
| Total interest expense | 8,826 | 7,481 | 24,580 | 23,480 | ||||||||||||||||||||
| Net interest income | 137,407 | 98,073 | 349,233 | 282,748 | ||||||||||||||||||||
| Provision for credit losses | — | 419 | 700 | 4,426 | ||||||||||||||||||||
| Net interest income after provision for credit losses | 137,407 | 97,654 | 348,533 | 278,322 | ||||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||
| Service charges | 4,327 | 2,457 | 10,344 | 7,777 | ||||||||||||||||||||
| Bank owned life insurance | 984 | 1,136 | 2,733 | 3,044 | ||||||||||||||||||||
| (Losses) gains on sales of investment securities, net | (62 | ) | 181 | 582 | 384 | |||||||||||||||||||
| Unrealized gains (losses) on assets and liabilities measured at fair value, net | 5,371 | 896 | (2,684 | ) | (145 | ) | ||||||||||||||||||
| Loss on extinguishment of debt | — | (502 | ) | (81 | ) | (502 | ) | |||||||||||||||||
| Other | 3,206 | 1,905 | 6,674 | 5,671 | ||||||||||||||||||||
| Total non-interest income | 13,826 | 6,073 | 17,568 | 16,229 | ||||||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||||||
| Salaries and employee benefits | 43,660 | 32,230 | 108,607 | 93,536 | ||||||||||||||||||||
| Occupancy | 5,915 | 4,479 | 15,677 | 13,458 | ||||||||||||||||||||
| Legal, professional and directors' fees | 4,052 | 3,022 | 12,658 | 10,853 | ||||||||||||||||||||
| Data Processing | 4,338 | 2,404 | 10,147 | 7,713 | ||||||||||||||||||||
| Insurance | 3,375 | 1,996 | 7,739 | 6,476 | ||||||||||||||||||||
| Loan and repossessed asset expenses | 1,099 | 901 | 3,473 | 2,937 | ||||||||||||||||||||
| Card expense | 757 | 609 | 1,844 | 1,739 | ||||||||||||||||||||
| Marketing | 747 | 378 | 1,587 | 1,443 | ||||||||||||||||||||
| Intangible amortization | 704 | 281 | 1,266 | 1,180 | ||||||||||||||||||||
| Net gain on sales and valuations of repossessed and other assets | (104 | ) | (1,874 | ) | (1,673 | ) | (4,251 | ) | ||||||||||||||||
| Acquisition / restructure expense | 835 | 15 | 8,836 | 198 | ||||||||||||||||||||
| Other | 7,538 | 5,418 | 17,997 | 16,290 | ||||||||||||||||||||
| Total non-interest expense | 72,916 | 49,859 | 188,158 | 151,572 | ||||||||||||||||||||
| Income from continuing operations before income taxes | 78,317 | 53,868 | 177,943 | 142,979 | ||||||||||||||||||||
| Income tax expense | 19,183 | 12,949 | 43,900 | 34,279 | ||||||||||||||||||||
| Income from continuing operations | $ | 59,134 | $ | 40,919 | $ | 134,043 | $ | 108,700 | ||||||||||||||||
| Loss from discontinued operations, net of tax | — | — | — | (1,158 | ) | |||||||||||||||||||
| Net income | $ | 59,134 | $ | 40,919 | $ | 134,043 | $ | 107,542 | ||||||||||||||||
| Preferred stock dividends | 176 | 353 | 599 | 1,058 | ||||||||||||||||||||
| Net income available to common stockholders | $ | 58,958 | $ | 40,566 | $ | 133,444 | $ | 106,484 | ||||||||||||||||
| Diluted net income per share | $ | 0.58 | $ | 0.46 | $ | 1.44 | $ | 1.22 | ||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||
| Five Quarter Condensed Consolidated Income Statements | ||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||
| Loans | $ | 133,087 | $ | 105,468 | $ | 100,391 | $ | 99,099 | $ | 94,436 | ||||||||||||||||||||
| Investment securities | 12,039 | 9,276 | 9,788 | 10,455 | 10,535 | |||||||||||||||||||||||||
| Other | 1,107 | 1,874 | 783 | 597 | 583 | |||||||||||||||||||||||||
| Total interest income | 146,233 | 116,618 | 110,962 | 110,151 | 105,554 | |||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||
| Deposits | 5,550 | 5,362 | 5,146 | 5,245 | 5,172 | |||||||||||||||||||||||||
| Borrowings | 1,268 | 2,087 | 2,267 | 2,314 | 1,866 | |||||||||||||||||||||||||
| Qualifying debt | 2,008 | 451 | 441 | 447 | 443 | |||||||||||||||||||||||||
| Total interest expense | 8,826 | 7,900 | 7,854 | 8,006 | 7,481 | |||||||||||||||||||||||||
| Net interest income | 137,407 | 108,718 | 103,108 | 102,145 | 98,073 | |||||||||||||||||||||||||
| Provision for credit losses | — | — | 700 | 300 | 419 | |||||||||||||||||||||||||
| Net interest income after provision for credit losses | 137,407 | 108,718 | 102,408 | 101,845 | 97,654 | |||||||||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||||||||
| Service charges | 4,327 | 3,128 | 2,889 | 2,791 | 2,457 | |||||||||||||||||||||||||
| Bank owned life insurance | 984 | 772 | 977 | 1,464 | 1,136 | |||||||||||||||||||||||||
| (Losses) gains on sales of investment securities, net | (62 | ) | 55 | 589 | 373 | 181 | ||||||||||||||||||||||||
| Unrealized gains (losses) on assets and liabilities measured at fair value, net | 5,371 | (7,746 | ) | (309 | ) | 1,357 | 896 | |||||||||||||||||||||||
| Loss on extinguishment of debt | — | (81 | ) | — | — | (502 | ) | |||||||||||||||||||||||
| Other | 3,206 | 1,681 | 1,787 | 2,432 | 1,905 | |||||||||||||||||||||||||
| Total non-interest income | 13,826 | (2,191 | ) | 5,933 | 8,417 | 6,073 | ||||||||||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||||||||||||
| Salaries and employee benefits | 43,660 | 32,406 | 32,541 | 33,094 | 32,230 | |||||||||||||||||||||||||
| Occupancy | 5,915 | 4,949 | 4,813 | 4,698 | 4,479 | |||||||||||||||||||||||||
| Legal, professional, and directors' fees | 4,052 | 4,611 | 3,995 | 3,425 | 3,022 | |||||||||||||||||||||||||
| Data Processing | 4,338 | 2,683 | 3,126 | 2,345 | 2,404 | |||||||||||||||||||||||||
| Insurance | 3,375 | 2,274 | 2,090 | 2,386 | 1,996 | |||||||||||||||||||||||||
| Loan and repossessed asset expenses | 1,099 | 1,284 | 1,090 | 1,486 | 901 | |||||||||||||||||||||||||
| Card expense | 757 | 613 | 474 | 678 | 609 | |||||||||||||||||||||||||
| Marketing | 747 | 463 | 377 | 857 | 378 | |||||||||||||||||||||||||
| Intangible amortization | 704 | 281 | 281 | 281 | 281 | |||||||||||||||||||||||||
| Net gain on sales and valuations of repossessed and other assets | (104 | ) | (1,218 | ) | (351 | ) | (1,102 | ) | (1,874 | ) | ||||||||||||||||||||
| Acquisition / restructure expense | 835 | 7,842 | 159 | — | 15 | |||||||||||||||||||||||||
| Other | 7,538 | 5,021 | 5,438 | 7,594 | 5,418 | |||||||||||||||||||||||||
| Total non-interest expense | 72,916 | 61,209 | 54,033 | 55,742 | 49,859 | |||||||||||||||||||||||||
| Income from continuing operations before income taxes | 78,317 | 45,318 | 54,308 | 54,520 | 53,868 | |||||||||||||||||||||||||
| Income tax expense | 19,183 | 10,599 | 14,118 | 14,111 | 12,949 | |||||||||||||||||||||||||
| Net income | $ | 59,134 | $ | 34,719 | $ | 40,190 | $ | 40,409 | $ | 40,919 | ||||||||||||||||||||
| Preferred stock dividends | 176 | 247 | 176 | 329 | 353 | |||||||||||||||||||||||||
| Net Income available to common stockholders | $ | 58,958 | $ | 34,472 | $ | 40,014 | $ | 40,080 | $ | 40,566 | ||||||||||||||||||||
| Diluted net income per share | $ | 0.58 | $ | 0.39 | $ | 0.45 | $ | 0.46 | $ | 0.46 | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||
| Five Quarter Condensed Consolidated Balance Sheets | ||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||||||
| Cash and due from banks | $ | 325.4 | $ | 700.2 | $ | 492.4 | $ | 164.4 | $ | 258.8 | ||||||||||||||||||||
| Securities purchased under agreement to resell | — | 58.1 | — | — | — | |||||||||||||||||||||||||
| Cash and cash equivalents | 325.4 | 758.3 | 492.4 | 164.4 | 258.8 | |||||||||||||||||||||||||
| Securities and money market investments | 1,993.6 | 1,531.9 | 1,453.7 | 1,547.8 | 1,597.3 | |||||||||||||||||||||||||
| Loans held for sale | 24.4 | 39.4 | — | — | — | |||||||||||||||||||||||||
| Loans held for investment: | ||||||||||||||||||||||||||||||
| Commercial | 4,960.4 | 4,759.7 | 3,725.2 | 3,532.3 | 3,293.2 | |||||||||||||||||||||||||
| Commercial real estate - non-owner occupied | 2,210.7 | 2,195.0 | 2,113.8 | 2,052.6 | 1,993.3 | |||||||||||||||||||||||||
| Commercial real estate - owner occupied | 2,123.6 | 2,019.3 | 1,818.0 | 1,732.9 | 1,620.3 | |||||||||||||||||||||||||
| Construction and land development | 1,121.9 | 1,002.7 | 842.9 | 748.1 | 671.8 | |||||||||||||||||||||||||
| Residential real estate | 320.7 | 320.6 | 292.2 | 299.4 | 317.5 | |||||||||||||||||||||||||
| Consumer | 26.6 | 24.0 | 26.5 | 33.0 | 33.4 | |||||||||||||||||||||||||
| Gross loans and deferred fees, net | 10,763.9 | 10,321.3 | 8,818.6 | 8,398.3 | 7,929.5 | |||||||||||||||||||||||||
| Allowance for credit losses | (117.1 | ) | (115.1 | ) | (112.1 | ) | (110.2 | ) | (109.2 | ) | ||||||||||||||||||||
| Loans, net | 10,646.8 | 10,206.2 | 8,706.5 | 8,288.1 | 7,820.3 | |||||||||||||||||||||||||
| Premises and equipment, net | 121.7 | 116.0 | 114.3 | 113.8 | 112.1 | |||||||||||||||||||||||||
| Other assets acquired through foreclosure, net | 57.7 | 59.3 | 63.8 | 57.1 | 51.8 | |||||||||||||||||||||||||
| Bank owned life insurance | 161.7 | 161.1 | 142.9 | 142.0 | 143.2 | |||||||||||||||||||||||||
| Goodwill and other intangibles, net | 305.8 | 300.0 | 25.6 | 25.9 | 26.2 | |||||||||||||||||||||||||
| Other assets | 318.4 | 297.9 | 252.7 | 261.4 | 279.1 | |||||||||||||||||||||||||
| Total assets | $ | 13,955.5 | $ | 13,470.1 | $ | 11,251.9 | $ | 10,600.5 | $ | 10,288.8 | ||||||||||||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 4,077.5 | $ | 3,924.4 | $ | 2,657.4 | $ | 2,288.0 | $ | 2,246.7 | ||||||||||||||||||||
| Interest bearing: | ||||||||||||||||||||||||||||||
| Demand | 1,024.5 | 1,001.3 | 936.5 | 854.9 | 809.4 | |||||||||||||||||||||||||
| Savings and money market | 4,672.6 | 4,733.9 | 4,121.0 | 3,869.7 | 3,685.0 | |||||||||||||||||||||||||
| Time certificates | 1,835.8 | 1,747.1 | 1,947.4 | 1,918.4 | 1,956.5 | |||||||||||||||||||||||||
| Total deposits | 11,610.4 | 11,406.7 | 9,662.3 | 8,931.0 | 8,697.6 | |||||||||||||||||||||||||
| Customer repurchase agreements | 53.2 | 42.2 | 47.2 | 54.9 | 53.0 | |||||||||||||||||||||||||
| Total customer funds | 11,663.6 | 11,448.9 | 9,709.5 | 8,985.9 | 8,750.6 | |||||||||||||||||||||||||
| Securities sold short | — | 57.6 | — | — | — | |||||||||||||||||||||||||
| Borrowings | 300.0 | 69.5 | 275.2 | 390.3 | 330.8 | |||||||||||||||||||||||||
| Qualifying debt | 206.8 | 208.4 | 40.7 | 40.4 | 41.8 | |||||||||||||||||||||||||
| Accrued interest payable and other liabilities | 201.4 | 171.0 | 175.2 | 183.0 | 162.5 | |||||||||||||||||||||||||
| Total liabilities | 12,371.8 | 11,955.4 | 10,200.6 | 9,599.6 | 9,285.7 | |||||||||||||||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||||||||||||
| Preferred stock | 70.5 | 70.5 | 70.5 | 70.5 | 141.0 | |||||||||||||||||||||||||
| Common stock and additional paid-in capital | 1,273.7 | 1,269.0 | 831.9 | 828.3 | 807.2 | |||||||||||||||||||||||||
| Retained earnings | 218.9 | 159.9 | 125.5 | 85.5 | 45.4 | |||||||||||||||||||||||||
| Accumulated other comprehensive income | 20.6 | 15.3 | 23.4 | 16.6 | 9.5 | |||||||||||||||||||||||||
| Total stockholders' equity | 1,583.7 | 1,514.7 | 1,051.3 | 1,000.9 | 1,003.1 | |||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,955.5 | $ | 13,470.1 | $ | 11,251.9 | $ | 10,600.5 | $ | 10,288.8 | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||
| Changes in the Allowance For Credit Losses | ||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| Balance, beginning of period | $ | 115,056 | $ | 112,098 | $ | 110,216 | $ | 109,161 | $ | 105,937 | ||||||||||||||||||||
| Provision for credit losses | — | — | 700 | 300 | 419 | |||||||||||||||||||||||||
| Recoveries of loans previously charged-off: | ||||||||||||||||||||||||||||||
| Commercial and industrial | 1,147 | 681 | 916 | 1,499 | 1,053 | |||||||||||||||||||||||||
| Commercial real estate - non-owner occupied | 968 | 335 | 277 | 229 | 1,226 | |||||||||||||||||||||||||
| Commercial real estate - owner occupied | 433 | 1,403 | 106 | 43 | 553 | |||||||||||||||||||||||||
| Construction and land development | 329 | 1,373 | 157 | 1,268 | 182 | |||||||||||||||||||||||||
| Residential real estate | 232 | 1,184 | 533 | 261 | 768 | |||||||||||||||||||||||||
| Consumer | 24 | 24 | 40 | 64 | 34 | |||||||||||||||||||||||||
| Total recoveries | 3,133 | 5,000 | 2,029 | 3,364 | 3,816 | |||||||||||||||||||||||||
| Loans charged-off: | ||||||||||||||||||||||||||||||
| Commercial and industrial | 1,109 | 1,771 | 393 | 1,743 | 110 | |||||||||||||||||||||||||
| Commercial real estate - non-owner occupied | — | — | — | — | 158 | |||||||||||||||||||||||||
| Commercial real estate - owner occupied | — | — | — | 270 | 35 | |||||||||||||||||||||||||
| Construction and land development | — | — | — | 8 | — | |||||||||||||||||||||||||
| Residential real estate | 8 | 218 | 400 | 377 | 423 | |||||||||||||||||||||||||
| Consumer | — | 53 | 54 | 211 | 285 | |||||||||||||||||||||||||
| Total loans charged-off | 1,117 | 2,042 | 847 | 2,609 | 1,011 | |||||||||||||||||||||||||
| Net loan recoveries | (2,016 | ) | (2,958 | ) | (1,182 | ) | (755 | ) | (2,805 | ) | ||||||||||||||||||||
| Balance, end of period | $ | 117,072 | $ | 115,056 | $ | 112,098 | $ | 110,216 | $ | 109,161 | ||||||||||||||||||||
| Net recoveries to average loans outstanding - annualized | (0.08 | )% | (0.13 | )% | (0.06 | )% | (0.04 | )% | (0.15 | )% | ||||||||||||||||||||
| Allowance for credit losses to gross loans | 1.09 | 1.11 | 1.27 | 1.31 | 1.38 | |||||||||||||||||||||||||
| Nonaccrual loans | $ | 47,692 | $ | 59,425 | $ | 60,742 | $ | 67,659 | $ | 75,092 | ||||||||||||||||||||
| Repossessed assets | 57,719 | 59,335 | 63,759 | 57,150 | 51,787 | |||||||||||||||||||||||||
| Loans past due 90 days, still accruing | 5,550 | 8,284 | 3,730 | 5,132 | 3,558 | |||||||||||||||||||||||||
| Loans past due 30 to 89 days, still accruing | 19,630 | 4,006 | 14,137 | 9,804 | 16,500 | |||||||||||||||||||||||||
| Classified loans on accrual | 108,341 | 101,165 | 76,090 | 90,393 | 107,776 | |||||||||||||||||||||||||
| Special mention loans | 153,431 | 132,313 | 100,345 | 97,504 | 98,265 | |||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | |||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||||||||||||
| Average Balance | Interest | Average Yield / Cost | Average Balance | Interest | Average Yield / Cost | ||||||||||||||||||||||||
| ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | ||||||||||||||||||||||||||
| Interest earning assets | |||||||||||||||||||||||||||||
| Loans (1) | $ | 10,505.7 | $ | 133,087 | 5.31 | % | $ | 7,644.9 | $ | 94,436 | 5.18 | % | |||||||||||||||||
| Securities (1) | 1,862.4 | 12,039 | 2.98 | 1,575.7 | 10,535 | 3.11 | |||||||||||||||||||||||
| Other | 322.2 | 1,107 | 1.37 | 203.1 | 583 | 1.15 | |||||||||||||||||||||||
| Total interest earning assets | 12,690.3 | 146,233 | 4.87 | 9,423.7 | 105,554 | 4.75 | |||||||||||||||||||||||
| Non-interest earning assets | |||||||||||||||||||||||||||||
| Cash and due from banks | 158.4 | 137.6 | |||||||||||||||||||||||||||
| Allowance for credit losses | (116.1 | ) | (107.0 | ) | |||||||||||||||||||||||||
| Bank owned life insurance | 161.1 | 142.7 | |||||||||||||||||||||||||||
| Other assets | 772.1 | 458.3 | |||||||||||||||||||||||||||
| Total assets | $ | 13,665.8 | $ | 10,055.3 | |||||||||||||||||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||
| Interest-bearing transaction accounts | $ | 1,004.7 | $ | 447 | 0.18 | % | $ | 810.3 | $ | 400 | 0.20 | % | |||||||||||||||||
| Savings and money market | 4,723.5 | 3,245 | 0.27 | 3,659.9 | 2,809 | 0.31 | |||||||||||||||||||||||
| Time certificates of deposit | 1,763.5 | 1,858 | 0.42 | 1,763.8 | 1,963 | 0.45 | |||||||||||||||||||||||
| Total interest-bearing deposits | 7,491.7 | 5,550 | 0.30 | 6,234.0 | 5,172 | 0.33 | |||||||||||||||||||||||
| Short-term borrowings | 282.0 | 1,268 | 1.80 | 119.9 | 219 | 0.73 | |||||||||||||||||||||||
| Long-term debt | — | — | — | 272.0 | 1,647 | 2.42 | |||||||||||||||||||||||
| Qualifying debt | 197.8 | 2,008 | 4.06 | 42.7 | 443 | 4.15 | |||||||||||||||||||||||
| Total interest-bearing liabilities | 7,971.5 | 8,826 | 0.44 | 6,668.6 | 7,481 | 0.45 | |||||||||||||||||||||||
| Non-interest-bearing liabilities | |||||||||||||||||||||||||||||
| Non-interest-bearing demand deposits | 3,961.3 | 2,241.4 | |||||||||||||||||||||||||||
| Other liabilities | 183.4 | 155.8 | |||||||||||||||||||||||||||
| Stockholders’ equity | 1,549.6 | 989.5 | |||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 13,665.8 | $ | 10,055.3 | |||||||||||||||||||||||||
| Net interest income and margin | $ | 137,407 | 4.59 | % | $ | 98,073 | 4.43 | % | |||||||||||||||||||||
| Net interest spread | 4.43 | % | 4.30 | % | |||||||||||||||||||||||||
| (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $8,183 and $6,348 for the three months ended September 30, 2015 and 2014, respectively. | |||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||
| Analysis of Average Balances, Yields and Rates | ||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||
| Nine Months Ended September 30, | ||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||
| Average Balance | Interest | Average Yield / Cost | Average Balance | Interest | Average Yield / Cost | |||||||||||||||||
| ($ in millions) | ($ in thousands) | ($ in millions) | ($ in thousands) | |||||||||||||||||||
| Interest earning assets | ||||||||||||||||||||||
| Loans (1) | $ | 9,309.2 | $ | 338,946 | 5.12 | % | $ | 7,241.6 | $ | 271,823 | 5.24 | % | ||||||||||
| Securities (1) | 1,590.1 | 31,103 | 3.03 | 1,618.8 | 32,754 | 3.11 | ||||||||||||||||
| Other | 257.9 | 3,764 | 1.95 | 235.2 | 1,651 | 0.94 | ||||||||||||||||
| Total interest earnings assets | 11,157.2 | 373,813 | 4.75 | 9,095.6 | 306,228 | 4.75 | ||||||||||||||||
| Non-interest earning assets | ||||||||||||||||||||||
| Cash and due from banks | 131.9 | 138.9 | ||||||||||||||||||||
| Allowance for credit losses | (114.0 | ) | (104.4 | ) | ||||||||||||||||||
| Bank owned life insurance | 149.0 | 141.8 | ||||||||||||||||||||
| Other assets | 561.2 | 450.3 | ||||||||||||||||||||
| Total assets | $ | 11,885.3 | $ | 9,722.2 | ||||||||||||||||||
| Interest-bearing liabilities | ||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||
| Interest bearing transaction accounts | $ | 965.8 | $ | 1,256 | 0.17 | % | $ | 789.1 | $ | 1,169 | 0.20 | % | ||||||||||
| Savings and money market | 4,286.9 | 8,997 | 0.28 | 3,566.0 | 8,063 | 0.30 | ||||||||||||||||
| Time certificates of deposits | 1,843.9 | 5,805 | 0.42 | 1,695.1 | 5,535 | 0.44 | ||||||||||||||||
| Total interest-bearing deposits | 7,096.6 | 16,058 | 0.30 | 6,050.2 | 14,767 | 0.33 | ||||||||||||||||
| Short-term borrowings | 212.8 | 4,821 | 3.02 | 174.2 | 565 | 0.43 | ||||||||||||||||
| Long-term debt | 102.5 | 801 | 1.04 | 284.6 | 6,841 | 3.20 | ||||||||||||||||
| Qualifying debt | 94.7 | 2,900 | 4.08 | 42.5 | 1,307 | 4.10 | ||||||||||||||||
| Total interest-bearing liabilities | 7,506.6 | 24,580 | 0.44 | 6,551.5 | 23,480 | 0.48 | ||||||||||||||||
| Non-interest-bearing liabilities | ||||||||||||||||||||||
| Non-interest-bearing demand deposits | 2,985.1 | 2,114.4 | ||||||||||||||||||||
| Other liabilities | 169.7 | 120.3 | ||||||||||||||||||||
| Stockholders’ equity | 1,223.9 | 936.0 | ||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 11,885.3 | $ | 9,722.2 | ||||||||||||||||||
| Net interest income and margin | $ | 349,233 | 4.45 | % | $ | 282,748 | 4.41 | % | ||||||||||||||
| Net interest spread | 4.31 | % | 4.27 | % | ||||||||||||||||||
| (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $23,450 and $18,082 for the nine months ended September 30, 2015 and 2014, respectively. | ||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
| Operating Segment Results | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Balance Sheets: | |||||||||||||||||||||||||||||||||||
| Arizona | Nevada | Southern California | Northern California | Central Business Lines | Corporate & Other | Consolidated Company | |||||||||||||||||||||||||||||
| At September 30, 2015 | (dollars in millions) | ||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 2.1 | $ | 10.4 | $ | 2.1 | $ | 2.6 | $ | — | $ | 2,301.8 | $ | 2,319.0 | |||||||||||||||||||||
| Loans, net of deferred loan fees and costs | 2,705.8 | 1,779.4 | 1,708.2 | 1,165.0 | 3,390.4 | 39.5 | 10,788.3 | ||||||||||||||||||||||||||||
| Less: allowance for credit losses | (29.4 | ) | (19.4 | ) | (18.6 | ) | (12.4 | ) | (36.9 | ) | (0.4 | ) | (117.1 | ) | |||||||||||||||||||||
| Total loans | 2,676.4 | 1,760.0 | 1,689.6 | 1,152.6 | 3,353.5 | 39.1 | 10,671.2 | ||||||||||||||||||||||||||||
| Other assets acquired through foreclosure, net | 22.2 | 20.7 | — | 0.6 | — | 14.2 | 57.7 | ||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net | — | 25.0 | — | 158.5 | 122.2 | 0.1 | 305.8 | ||||||||||||||||||||||||||||
| Other assets | 48.6 | 61.4 | 15.4 | 15.0 | 23.7 | 437.7 | 601.8 | ||||||||||||||||||||||||||||
| Total assets | $ | 2,749.3 | $ | 1,877.5 | $ | 1,707.1 | $ | 1,329.3 | $ | 3,499.4 | $ | 2,792.9 | $ | 13,955.5 | |||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Deposits | $ | 2,463.7 | $ | 3,329.9 | $ | 1,938.5 | $ | 1,470.1 | $ | 2,030.4 | $ | 377.8 | $ | 11,610.4 | |||||||||||||||||||||
| Borrowings and qualifying debt | — | — | — | — | — | 506.8 | 506.8 | ||||||||||||||||||||||||||||
| Other liabilities | 18.7 | 32.6 | 12.2 | 11.8 | 85.2 | 94.1 | 254.6 | ||||||||||||||||||||||||||||
| Total liabilities | 2,482.4 | 3,362.5 | 1,950.7 | 1,481.9 | 2,115.6 | 978.7 | 12,371.8 | ||||||||||||||||||||||||||||
| Allocated equity: | 294.7 | 248.2 | 187.3 | 291.3 | 412.6 | 149.6 | 1,583.7 | ||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,777.1 | $ | 3,610.7 | $ | 2,138.0 | $ | 1,773.2 | $ | 2,528.2 | $ | 1,128.3 | $ | 13,955.5 | |||||||||||||||||||||
| Excess funds provided (used) | 27.8 | 1,733.2 | 430.9 | 443.9 | (971.2 | ) | (1,664.6 | ) | — | ||||||||||||||||||||||||||
| No. of offices | 11 | 18 | 9 | 2 | 7 | — | 47 | ||||||||||||||||||||||||||||
| No. of full-time equivalent employees | 225 | 282 | 201 | 189 | 146 | 372 | 1,415 | ||||||||||||||||||||||||||||
| At December 31, 2014 | |||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 2.3 | $ | 5.0 | $ | 2.2 | $ | 0.3 | $ | — | $ | 1,702.4 | $ | 1,712.2 | |||||||||||||||||||||
| Loans, net of deferred loan fees and costs | 2,341.9 | 1,668.7 | 1,553.1 | 198.6 | 2,590.0 | 46.0 | 8,398.3 | ||||||||||||||||||||||||||||
| Less: allowance for credit losses | (30.7 | ) | (21.9 | ) | (17.9 | ) | (5.1 | ) | (34.0 | ) | (0.6 | ) | (110.2 | ) | |||||||||||||||||||||
| Total loans | 2,311.2 | 1,646.8 | 1,535.2 | 193.5 | 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 | 6.2 | 15.3 | 22.9 | 373.8 | 517.2 | ||||||||||||||||||||||||||||
| Total assets | $ | 2,363.8 | $ | 1,762.9 | $ | 1,543.6 | $ | 209.1 | $ | 2,578.9 | $ | 2,142.2 | $ | 10,600.5 | |||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Deposits | $ | 2,178.0 | $ | 3,230.6 | $ | 1,744.5 | $ | 584.0 | $ | 946.6 | $ | 247.3 | $ | 8,931.0 | |||||||||||||||||||||
| Other borrowings | — | — | — | — | — | 390.3 | 390.3 | ||||||||||||||||||||||||||||
| Other liabilities | 17.4 | 40.8 | 8.9 | 0.2 | 72.4 | 138.6 | 278.3 | ||||||||||||||||||||||||||||
| Total liabilities | 2,195.4 | 3,271.4 | 1,753.4 | 584.2 | 1,019.0 | 776.2 | 9,599.6 | ||||||||||||||||||||||||||||
| Allocated equity: | 250.8 | 209.0 | 70.9 | 126.8 | 232.9 | 110.5 | 1,000.9 | ||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,446.2 | $ | 3,480.4 | $ | 1,824.3 | $ | 711.0 | $ | 1,251.9 | $ | 886.7 | $ | 10,600.5 | |||||||||||||||||||||
| Excess funds provided (used) | 82.4 | 1,717.5 | 280.7 | 501.9 | (1,327.0 | ) | (1,255.5 | ) | — | ||||||||||||||||||||||||||
| No. of offices | 11 | 18 | 9 | 2 | — | — | 40 | ||||||||||||||||||||||||||||
| No. of full-time equivalent employees | 215 | 295 | 198 | 29 | 99 | 295 | 1,131 | ||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
| Operating Segment Results | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Arizona | Nevada | Southern California | Northern California | Central Business Lines | Corporate & Other | Consolidated Company | |||||||||||||||||||||||||||||
| (dollars in millions) | |||||||||||||||||||||||||||||||||||
| At September 30, 2014 | |||||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
| Cash, cash equivalents, and investment securities | $ | 2.1 | $ | 5.3 | $ | 2.1 | $ | 0.2 | $ | — | $ | 1,846.4 | $ | 1,856.1 | |||||||||||||||||||||
| Loans, net of deferred loan fees and costs | 2,204.9 | 1,680.1 | 1,531.0 | 194.7 | 2,264.9 | 53.9 | 7,929.5 | ||||||||||||||||||||||||||||
| Less: allowance for credit losses | (30.4 | ) | (23.1 | ) | (18.7 | ) | (5.1 | ) | (31.2 | ) | (0.7 | ) | (109.2 | ) | |||||||||||||||||||||
| Total loans | 2,174.5 | 1,657.0 | 1,512.3 | 189.6 | 2,233.7 | 53.2 | 7,820.3 | ||||||||||||||||||||||||||||
| Other assets acquired through foreclosure, net | 13.5 | 19.2 | — | — | — | 19.1 | 51.8 | ||||||||||||||||||||||||||||
| Goodwill and other intangible assets, net | — | 26.2 | — | — | — | — | 26.2 | ||||||||||||||||||||||||||||
| Other assets | 44.6 | 69.2 | 30.7 | 10.3 | 20.5 | 359.1 | 534.4 | ||||||||||||||||||||||||||||
| Total assets | $ | 2,234.7 | $ | 1,776.9 | $ | 1,545.1 | $ | 200.1 | $ | 2,254.2 | $ | 2,277.8 | $ | 10,288.8 | |||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||||||||||||||
| Deposits | $ | 2,077.4 | $ | 3,193.8 | $ | 1,780.6 | $ | 569.3 | $ | 906.0 | $ | 170.5 | $ | 8,697.6 | |||||||||||||||||||||
| Other borrowings | — | — | — | — | — | 330.8 | 330.8 | ||||||||||||||||||||||||||||
| Other liabilities | 21.2 | 41.7 | 10.6 | 0.2 | 42.1 | 141.5 | 257.3 | ||||||||||||||||||||||||||||
| Total liabilities | 2,098.6 | 3,235.5 | 1,791.2 | 569.5 | 948.1 | 642.8 | 9,285.7 | ||||||||||||||||||||||||||||
| Allocated equity: | 236.9 | 209.0 | 78.8 | 118.2 | 203.9 | 156.3 | 1,003.1 | ||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,335.5 | $ | 3,444.5 | $ | 1,870.0 | $ | 687.7 | $ | 1,152.0 | $ | 799.1 | $ | 10,288.8 | |||||||||||||||||||||
| Excess funds provided (used) | 100.8 | 1,667.6 | 324.9 | 487.6 | (1,102.2 | ) | (1,478.7 | ) | — | ||||||||||||||||||||||||||
| No. of offices | 10 | 18 | 9 | 2 | — | — | 39 | ||||||||||||||||||||||||||||
| No. of full-time equivalent employees | 216 | 301 | 198 | 25 | 93 | 287 | 1,120 | ||||||||||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
| Operating Segment Results | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Income Statements: | |||||||||||||||||||||||||||||||||||
| Arizona | Nevada | Southern California | Northern California | Central Business Lines | Corporate & Other | Consolidated Company | |||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2015: | |||||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 32,920 | $ | 30,875 | $ | 24,146 | $ | 24,012 | $ | 37,347 | $ | (11,893 | ) | $ | 137,407 | ||||||||||||||||||||
| Provision for credit losses | 1,964 | (2,376 | ) | (442 | ) | 1,390 | (488 | ) | (48 | ) | — | ||||||||||||||||||||||||
| Net interest income (expense) after provision for credit losses | 30,956 | 33,251 | 24,588 | 22,622 | 37,835 | (11,845 | ) | 137,407 | |||||||||||||||||||||||||||
| Non-interest income | 962 | 2,199 | 586 | 2,484 | 1,435 | 6,160 | 13,826 | ||||||||||||||||||||||||||||
| Non-interest expense | (15,160 | ) | (15,513 | ) | (11,909 | ) | (12,846 | ) | (13,127 | ) | (4,361 | ) | (72,916 | ) | |||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 16,758 | 19,937 | 13,265 | 12,260 | 26,143 | (10,046 | ) | 78,317 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 6,574 | 6,978 | 5,578 | 5,156 | 9,804 | (14,907 | ) | 19,183 | |||||||||||||||||||||||||||
| Net income | $ | 10,184 | $ | 12,959 | $ | 7,687 | $ | 7,104 | $ | 16,339 | $ | 4,861 | $ | 59,134 | |||||||||||||||||||||
| Nine Months Ended September 30, 2015: | |||||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 93,996 | $ | 90,030 | $ | 70,706 | $ | 33,681 | $ | 85,089 | $ | (24,269 | ) | $ | 349,233 | ||||||||||||||||||||
| Provision for (recovery of) credit losses | 2,122 | (5,175 | ) | (176 | ) | 1,876 | 2,172 | (119 | ) | 700 | |||||||||||||||||||||||||
| Net interest income (expense) after provision for credit losses | 91,874 | 95,205 | 70,882 | 31,805 | 82,917 | (24,150 | ) | 348,533 | |||||||||||||||||||||||||||
| Non-interest income | 2,909 | 6,852 | 2,101 | 2,806 | 2,472 | 428 | 17,568 | ||||||||||||||||||||||||||||
| Non-interest expense | (44,521 | ) | (45,020 | ) | (35,387 | ) | (16,776 | ) | (31,950 | ) | (14,504 | ) | (188,158 | ) | |||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 50,262 | 57,037 | 37,596 | 17,835 | 53,439 | (38,226 | ) | 177,943 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 19,718 | 19,963 | 15,809 | 7,500 | 20,040 | (39,130 | ) | 43,900 | |||||||||||||||||||||||||||
| Net income | $ | 30,544 | $ | 37,074 | $ | 21,787 | $ | 10,335 | $ | 33,399 | $ | (904 | ) | $ | 134,043 | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||||||||||||
| Operating Segment Results | |||||||||||||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||||||||||||
| Income Statements: | |||||||||||||||||||||||||||||||||||
| Arizona | Nevada | Southern California | Northern California | Central Business Lines | Corporate & Other | Consolidated Company | |||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2014: | |||||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 28,417 | $ | 29,880 | $ | 23,429 | $ | 2,401 | $ | 18,861 | $ | (4,915 | ) | $ | 98,073 | ||||||||||||||||||||
| Provision for credit losses | 330 | (3,040 | ) | 96 | — | 3,294 | (261 | ) | 419 | ||||||||||||||||||||||||||
| Net interest income (expense) after provision for credit losses | 28,087 | 32,920 | 23,333 | 2,401 | 15,567 | (4,654 | ) | 97,654 | |||||||||||||||||||||||||||
| Non-interest income | 774 | 2,126 | 849 | 40 | 513 | 1,771 | 6,073 | ||||||||||||||||||||||||||||
| Non-interest expense | (14,108 | ) | (13,873 | ) | (12,301 | ) | (885 | ) | (6,477 | ) | (2,215 | ) | (49,859 | ) | |||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 14,753 | 21,173 | 11,881 | 1,556 | 9,603 | (5,098 | ) | 53,868 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 5,787 | 7,411 | 4,995 | 654 | 3,601 | (9,499 | ) | 12,949 | |||||||||||||||||||||||||||
| Net income | $ | 8,966 | $ | 13,762 | $ | 6,886 | $ | 902 | $ | 6,002 | $ | 4,401 | $ | 40,919 | |||||||||||||||||||||
| Nine Months Ended September 30, 2014: | |||||||||||||||||||||||||||||||||||
| Net interest income (expense) | $ | 84,236 | $ | 87,834 | $ | 66,610 | $ | 6,714 | $ | 49,051 | $ | (11,697 | ) | $ | 282,748 | ||||||||||||||||||||
| Provision for credit losses | 1,891 | (5,935 | ) | (921 | ) | — | 8,931 | 460 | 4,426 | ||||||||||||||||||||||||||
| Net interest income (expense) after provision for credit losses | 82,345 | 93,769 | 67,531 | 6,714 | 40,120 | (12,157 | ) | 278,322 | |||||||||||||||||||||||||||
| Non-interest income | 2,484 | 6,510 | 2,866 | 105 | 1,238 | 3,026 | 16,229 | ||||||||||||||||||||||||||||
| Non-interest expense | (40,161 | ) | (44,878 | ) | (36,661 | ) | (2,772 | ) | (19,625 | ) | (7,475 | ) | (151,572 | ) | |||||||||||||||||||||
| Income (loss) from continuing operations before income taxes | 44,668 | 55,401 | 33,736 | 4,047 | 21,733 | (16,606 | ) | 142,979 | |||||||||||||||||||||||||||
| Income tax expense (benefit) | 17,521 | 19,392 | 14,184 | 1,702 | 8,150 | (26,670 | ) | 34,279 | |||||||||||||||||||||||||||
| Income from continuing operations | 27,147 | 36,009 | 19,552 | 2,345 | 13,583 | 10,064 | 108,700 | ||||||||||||||||||||||||||||
| Loss from discontinued operations, net | — | — | — | — | — | (1,158 | ) | (1,158 | ) | ||||||||||||||||||||||||||
| Net income | $ | 27,147 | $ | 36,009 | $ | 19,552 | $ | 2,345 | $ | 13,583 | $ | 8,906 | $ | 107,542 | |||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||
| Unaudited | ||||||||||||||||||||||||||||||
| Pre-Tax, Pre-Provision Operating Earnings by Quarter: | ||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||||||||
| Total non-interest income | $ | 13,826 | $ | (2,191 | ) | $ | 5,933 | $ | 8,417 | $ | 6,073 | |||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||
| (Losses) gains on sales of investment securities, net | (62 | ) | 55 | 589 | 373 | 181 | ||||||||||||||||||||||||
| Unrealized gains (losses) on assets and liabilities measured at fair value, net | 5,371 | (7,746 | ) | (309 | ) | 1,357 | 896 | |||||||||||||||||||||||
| Loss on extinguishment of debt | — | (81 | ) | — | — | (502 | ) | |||||||||||||||||||||||
| Total operating non-interest income | 8,517 | 5,581 | 5,653 | 6,687 | 5,498 | |||||||||||||||||||||||||
| Plus: net interest income | 137,407 | 108,718 | 103,108 | 102,145 | 98,073 | |||||||||||||||||||||||||
| Net operating revenue (1) | $ | 145,924 | $ | 114,299 | $ | 108,761 | $ | 108,832 | $ | 103,571 | ||||||||||||||||||||
| Total non-interest expense | $ | 72,916 | $ | 61,209 | $ | 54,033 | $ | 55,742 | $ | 49,859 | ||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||
| Net gain on sales and valuations of repossessed and other assets | (104 | ) | (1,218 | ) | (351 | ) | (1,102 | ) | (1,874 | ) | ||||||||||||||||||||
| Acquisition / restructure expense | 835 | 7,842 | 159 | — | 15 | |||||||||||||||||||||||||
| Total operating non-interest expense (1) | $ | 72,185 | $ | 54,585 | $ | 54,225 | $ | 56,844 | $ | 51,718 | ||||||||||||||||||||
| Pre-tax, pre-provision operating earnings (2) | $ | 73,739 | $ | 59,714 | $ | 54,536 | $ | 51,988 | $ | 51,853 | ||||||||||||||||||||
| Tangible Common Equity: | ||||||||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | ||||||||||||||||||||||||||
| (dollars and shares in thousands) | ||||||||||||||||||||||||||||||
| Total stockholders' equity | $ | 1,583,698 | $ | 1,514,744 | $ | 1,051,330 | $ | 1,000,928 | $ | 1,003,122 | ||||||||||||||||||||
| Less: goodwill and intangible assets | 305,767 | 299,975 | 25,632 | 25,913 | 26,194 | |||||||||||||||||||||||||
| Total tangible stockholders' equity | 1,277,931 | 1,214,769 | 1,025,698 | 975,015 | 976,928 | |||||||||||||||||||||||||
| Less: preferred stock | 70,500 | 70,500 | 70,500 | 70,500 | 141,000 | |||||||||||||||||||||||||
| Total tangible common equity | 1,207,431 | 1,144,269 | 955,198 | 904,515 | 835,928 | |||||||||||||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 6,290 | 6,515 | 903 | 1,006 | 1,138 | |||||||||||||||||||||||||
| Total tangible common equity, net of tax | $ | 1,213,721 | $ | 1,150,784 | $ | 956,101 | $ | 905,521 | $ | 837,066 | ||||||||||||||||||||
| Total assets | $ | 13,955,570 | $ | 13,470,104 | $ | 11,251,943 | $ | 10,600,498 | $ | 10,288,824 | ||||||||||||||||||||
| Less: goodwill and intangible assets, net | 305,767 | 299,975 | 25,632 | 25,913 | 26,194 | |||||||||||||||||||||||||
| Tangible assets | 13,649,803 | 13,170,129 | 11,226,311 | 10,574,585 | 10,262,630 | |||||||||||||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 6,290 | 6,515 | 903 | 1,006 | 1,138 | |||||||||||||||||||||||||
| Total tangible assets, net of tax | $ | 13,656,093 | $ | 13,176,644 | $ | 11,227,214 | $ | 10,575,591 | $ | 10,263,768 | ||||||||||||||||||||
| Tangible common equity ratio (3) | 8.9 | % | 8.7 | % | 8.5 | % | 8.6 | % | 8.2 | % | ||||||||||||||||||||
| Common shares outstanding | 102,305 | 102,291 | 89,180 | 88,691 | 87,849 | |||||||||||||||||||||||||
| Tangible book value per share, net of tax (4) | $ | 11.86 | $ | 11.25 | $ | 10.72 | $ | 10.21 | $ | 9.53 | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||||
| Unaudited | |||||||||||||||||||||||||
| Efficiency Ratio by Quarter: | |||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||
| Total operating non-interest expense | $ | 72,185 | $ | 54,585 | $ | 54,225 | $ | 56,844 | $ | 51,718 | |||||||||||||||
| Divided by: | |||||||||||||||||||||||||
| Total net interest income | 137,407 | 108,718 | 103,108 | 102,145 | 98,073 | ||||||||||||||||||||
| Plus: | |||||||||||||||||||||||||
| Tax equivalent interest adjustment | 8,183 | 7,878 | 7,389 | 6,489 | 6,348 | ||||||||||||||||||||
| Operating non-interest income | 8,517 | 5,581 | 5,653 | 6,687 | 5,498 | ||||||||||||||||||||
| $ | 154,107 | $ | 122,177 | $ | 116,150 | $ | 115,321 | $ | 109,919 | ||||||||||||||||
| Efficiency ratio - tax equivalent basis (5) | 46.8 | % | 44.7 | % | 46.7 | % | 49.3 | % | 47.1 | % | |||||||||||||||
| Allowance for Credit Losses, Adjusted for Acquisition Accounting: | |||||||||||||||||||||||||
| Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | |||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||
| Allowance for credit losses | $ | 117,072 | $ | 115,056 | $ | 112,098 | $ | 110,216 | $ | 109,161 | |||||||||||||||
| Plus: remaining credit marks | |||||||||||||||||||||||||
| Acquired performing loans | 14,299 | 16,405 | 2,150 | 2,335 | 2,593 | ||||||||||||||||||||
| Purchased credit impaired loans | 11,347 | 8,643 | 8,770 | 9,279 | 10,788 | ||||||||||||||||||||
| Adjusted allowance for credit losses | $ | 142,718 | $ | 140,104 | $ | 123,018 | $ | 121,830 | $ | 122,542 | |||||||||||||||
| Gross loans held for investment and deferred fees, net | $ | 10,763,939 | $ | 10,321,221 | $ | 8,818,554 | $ | 8,398,265 | $ | 7,929,520 | |||||||||||||||
| Plus: remaining credit marks | |||||||||||||||||||||||||
| Acquired performing loans | 14,299 | 16,405 | 2,150 | 2,335 | 2,593 | ||||||||||||||||||||
| Purchased credit impaired loans | 11,347 | 8,643 | 8,770 | 9,279 | 10,788 | ||||||||||||||||||||
| Adjusted loans, net of deferred fees and costs | $ | 10,789,585 | $ | 10,346,269 | $ | 8,829,474 | $ | 8,409,879 | $ | 7,942,901 | |||||||||||||||
| Allowance for credit losses to gross loans | 1.09 | % | 1.11 | % | 1.27 | % | 1.31 | % | 1.38 | % | |||||||||||||||
| Allowance for credit losses to gross loans, adjusted for acquisition accounting (6) | 1.32 | 1.35 | 1.39 | 1.45 | 1.54 | ||||||||||||||||||||
| Western Alliance Bancorporation and Subsidiaries | ||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||
| Unaudited | ||||||||||
Regulatory Capital: | ||||||||||
| Basel III | ||||||||||
| September 30, 2015 | ||||||||||
| (in thousands) | ||||||||||
| Common Equity Tier 1: | ||||||||||
| Common equity | $ | 1,513,198 | ||||||||
| Less: | ||||||||||
| Accumulated other comprehensive income | 20,643 | |||||||||
| Non-qualifying goodwill and intangibles | 295,425 | |||||||||
| Disallowed unrealized losses on equity securities | 102 | |||||||||
| Disallowed deferred tax asset | 5,067 | |||||||||
| Unrealized gain on trust preferred securities | 7,255 | |||||||||
| Common equity Tier 1 (regulatory) (7) (10) | $ | 1,184,706 | ||||||||
| Plus: | ||||||||||
| Trust preferred securities | 81,500 | |||||||||
| Preferred stock | 70,500 | |||||||||
| Less: | ||||||||||
| Disallowed deferred tax asset | 7,600 | |||||||||
| Unrealized gain on trust preferred securities | 10,884 | |||||||||
| Tier 1 capital (8) (10) | $ | 1,318,222 | ||||||||
| Divided by: estimated risk-weighted assets (regulatory (8) (10) | $ | 13,031,067 | ||||||||
| Common equity Tier 1 ratio (8) (10) | 9.1 | % | ||||||||
| Total Capital: | ||||||||||
| Tier 1 capital (regulatory) (7) (10) | $ | 1,318,222 | ||||||||
| Plus: | ||||||||||
| Subordinated debt | 142,004 | |||||||||
| Qualifying allowance for credit losses | 117,072 | |||||||||
| Other | 3,296 | |||||||||
| Less: Tier 2 qualifying capital deductions | — | |||||||||
| Tier 2 capital | $ | 262,372 | ||||||||
| Total capital | $ | 1,580,594 | ||||||||
| Classified asset to common equity Tier 1 plus allowance: | ||||||||||
| Classified assets | $ | 224,148 | ||||||||
| Divided by: | ||||||||||
| Common equity Tier 1 (regulatory) (7) (10) | 1,184,706 | |||||||||
| Plus: Allowance for credit losses | 117,072 | |||||||||
| Total Common equity Tier 1 plus allowance for credit losses | $ | 1,301,778 | ||||||||
| Classified assets to common equity Tier 1 plus allowance (9) (10) | 17 | % | ||||||||
| (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) | We believe this non-GAAP ratio is a useful metric in understanding the Company's total allowance for credit losses, adjusted for acquisition accounting, as under U.S. GAAP, a company's allowance for credit losses is not carried over in an acquisition, rather these loans are shown as being purchased at a discount that factors in expected future credit losses. | ||
| (7) | 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. | ||
| (8) | 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. | ||
| (9) | We believe this non-GAAP ratio provides an important regulatory metric to analyze asset quality. | ||
| (10) | Current quarter is preliminary until Call Reports are filed. | ||
View source version on businesswire.com: http://www.businesswire.com/news/home/20151015006752/en/
Contacts:
Dale Gibbons, 602-952-5476
