Western Alliance Reports Fourth Quarter 2012 Net Income of $32.1 Million, or $0.37 Per Share; Full Year Net Income of $72.8

  Western Alliance Reports Fourth Quarter 2012 Net Income of $32.1 Million, or
  $0.37 Per Share; Full Year Net Income of $72.8 Million, or $0.83 Per Share

Business Wire

PHOENIX -- January 24, 2013

Western Alliance Bancorporation (NYSE:WAL) announced today its financial
results for the fourth quarter 2012.

Fourth Quarter 2012 Highlights:

  *Net income of $32.1 million, an increase of 107.1% compared to $15.5
    million for the third quarter 2012 and more than quadruple compared to
    $7.1 million for the fourth quarter 2011
  *Net income of $18.9 million for the fourth quarter 2012, excluding $14.8
    million net effect from certain transactions which include the effect of
    the bargain purchase gain on Western Liberty, $1.9 million of securities
    gains, $0.9 million net legal settlements, $5.6 million accrued
    disposition costs related to affinity credit card services, and $1.2
    million large loan prepayment fee^2
  *Earnings per share of $0.37, compared to $0.18 per share for the third
    quarter 2012 and $0.07 per share in the fourth quarter 2011
  *Earnings per share of $0.22 for the fourth quarter 2012, excluding $0.15
    per share net effect from certain transactions which include the effect of
    the bargain purchase gain on Western Liberty, $0.02 per share securities
    gains, $0.01 per share net legal settlements, $0.04 per share accrued
    disposition cost related to affinity credit card services and $0.01 per
    share for loan prepayment fee^2
  *Pre-tax, pre-provision operating earnings of $36.8 million, up from $33.4
    million in third quarter 2012 and up 16.8% from $31.5 million in fourth
    quarter 2011^1
  *Net interest margin of 4.55% compared to 4.41% in the third quarter of
    2012 and 4.51% in the fourth quarter 2011
  *Total loans of $5.71 billion, up $376 million from September 30, 2012, and
    up $929 million from December 31, 2011, including $91 million increase
    from acquisition of Western Liberty Bancorp in October 2012
  *Total deposits of $6.46 billion, up $293 million from September 30, 2012,
    and up $797 million from December 31, 2011, including $117 million
    increase from acquisition of Western Liberty Bancorp
  *Nonperforming assets (nonaccrual loans and repossessed assets) decreased
    to 2.4% of total assets from 2.7% in third quarter 2012 and from 2.6% in
    fourth quarter 2011
  *Net loan charge-offs (annualized) to average loans outstanding increased
    to 0.99% from 0.70% in the third quarter 2012, including 0.19% percent for
    the write down of the affinity credit card portfolio to fair value
  *Tier I Leverage capital of 10.1% and Total Risk-Based Capital ratio of
    12.6%, compared to 9.8% and 12.6% a year ago
  *Total equity of $759.6 million, up $61.6 million from September 30, 2012,
    and up $122.9 million from December 31, 2011
  *Acquisition of Western Liberty Bancorp increased total assets by $195.5
    million and bargain purchase gain of $17.6 million. Pursuant to accounting
    guidance acquired net assets are reflected at estimated fair value. The
    estimated fair value of certain net assets are preliminary and subject to
    a measurement period adjustment.

Financial Performance

“2012 was a great year for our Company,” said Robert Sarver, Chairman and
Chief Executive Officer of Western Alliance Bancorporation. “Quarter after
quarter, we achieved high quality loan growth, consistently funded by low-cost
core deposits. Meanwhile, our asset quality ratios and operating efficiency
improved as well. This strong performance culminated in an exceptional fourth
quarter in which we augmented our strong organic growth with the successful
acquisition of Western Liberty Bancorp, helping to propel our earnings to $32
million.”

Sarver continued, “This strong finish to 2012, delivered by our team at
Western Alliance, has given us powerful momentum as we head into 2013.”

Ken Vecchione, President and Chief Operating Officer, added, “In 2012, our
Company again executed its growth strategy by reporting double-digit top line
revenue growth for the third consecutive year, and growth in operating revenue
as it has every year since it went public in 2005. This rising revenue, when
coupled with our lower credit costs and increased efficiency, has given us
considerable leverage to drive earnings per share higher, as we did to 83
cents last year.”

Western Alliance Bancorporation reported net income of $32.1 million, or $0.37
per share, in the fourth quarter 2012 including a $0.5 million charge from
repossessed assets valuations/sales, $2.7 million of merger/restructure
charges, a $17.6 million bargain purchase gain from the acquisition of Western
Liberty Bancorp, and $1.9 million gains from securities.

Full year net income was $72.8 million compared to $31.5 million in 2011. Full
year earnings per share were $0.83 compared to $0.19 for 2011.

Total loans increased $376 million to $5.71 billion at December 31, 2012 from
$5.33 billion on September 30, 2012. This increase was primarily driven by
growth in commercial and industrial loans and commercial real estate loans.
Loans increased $929 million, 19.4 percent from December 31, 2011.

Total deposits increased $293 million to $6.46 billion at December 31, 2012
from $6.16 billion at September 30, 2012, with growth in all account types
primarily in certificates of deposits and non-interest-bearing demand.
Deposits increased $797 million, or 14.1 percent from December 31, 2011.

Income Statement

Net interest income of $77.5 million in the fourth quarter 2012, an increase
of 7.8 percent compared to the third quarter 2012 and 12.7 percent compared to
the fourth quarter 2011. The Company’s net interest margin in the fourth
quarter 2012 was 4.55 percent compared to 4.41 percent in the third quarter
2012 and 4.51 percent in the fourth quarter 2011.

Operating non-interest income was $5.1 million for the fourth quarter 2012, a
decrease from $5.4 million for the third quarter of 2012 and $5.6 million for
the fourth quarter of 2011.^1

Net revenue was $82.5 million for the fourth quarter 2012, up from $77.3
million for the third quarter of 2012 and an increase of 11.0 percent from
$74.3 million for the fourth quarter 2011.^1

Operating non-interest expense was $45.8 million for the fourth quarter 2012,
compared to $43.9 million for the third quarter of 2012 and $42.8 million for
the fourth quarter of 2011.^1 The Company’s operating efficiency ratio on a
tax equivalent basis was 53.5 percent for the fourth quarter 2012, improved
from 56.5 percent for the fourth quarter 2011.^1

The Company had 982 full-time equivalent employees December 31, 2012, compared
to 942 one year ago.

A key performance metric for the Company is its pre-tax, pre-provision
operating earnings, which it defines as net operating revenue less its
operating non-interest expense. For the fourth quarter 2012, the Company’s
performance on this metric was $36.8 million, up from $33.4 million in the
third quarter 2012 and $31.5 million in the fourth quarter 2011.^1

The provision for credit losses was $11.5 million for the fourth quarter 2012,
compared to $8.9 million for the third quarter 2012. The provision for the
fourth quarter of 2011 was $13.1 million. Net loan charge-offs in the fourth
quarter 2012 were $13.5 million, or 0.99 percent of average loans
(annualized), up from 0.70 percent of average loans (annualized) for the third
quarter 2012. Net charge-offs for the fourth quarter 2011 were $14.1 million,
or 1.24% of average loans (annualized).

Nonaccrual loans decreased $16.5 million to $104.7 million during the quarter.
Loans past due 90 days and still accruing interest totaled $1.4 million at
December 31, 2012, down from $1.7 million at September 30, 2012 and from $2.6
million at December 31, 2011. Loans past due 30-89 days, still accruing
interest totaled $16.6 million at quarter end, up from $10.2 million at
September 30, 2012 and from $13.7 million at December 31, 2011.

Classified assets to Tier I capital plus allowance for credit losses, a common
regulatory measure of asset quality, improved to 34 percent at December 31,
2012 from 39 percent at December 31, 2011.^1

Net loss on sales and valuation of repossessed assets (primarily other real
estate) was $0.5 million for the fourth quarter of 2012 compared to $0.1
million for the third quarter 2012 and $7.7 million in the fourth quarter
2011. At December 31, 2012, other repossessed assets were valued at $77
million compared to $78 million at September 30, 2012 and $89 million one year
ago.

During the quarter, the Company completed its acquisition of Western Liberty
Bancorp, which increased assets, loans and deposits by $195 million, $91
million, and $117 million, respectively, and recorded a gain on bargain
purchase of $17.6 million. The Company issued 3.0 million shares in
conjunction with closing this transaction.

The Company transferred its remaining $34 million in affinity credit card
receivables to loans held for sale during the quarter and recognized a loan
charge-off of $2.6 million in a markdown to fair value. Disposition costs of
$1.6 million (net of tax) were also recognized in discontinued operations.

Balance Sheet

Gross loans totaled $5.71 billion at December 31, 2012, an increase of $376
million from September 30, 2012 and an increase of $929 million from $4.78
billion at December 31, 2011. At December 31, 2012, the allowance for credit
losses was 1.67 percent of total loans down from 1.83 percent at September 30,
2012 and 2.07 percent at December 31, 2011.

Deposits totaled $6.46 billion at December 31, 2012, an increase of $293
million from $6.16 billion at September 30, 2012 and an increase of $797
million from $5.66 billion at December 31, 2011.

Non-interest bearing deposits increased $92 million to $1.93 billion at
December 31, 2012 from September 30, 2012 and increased $375 million from
$1.56 billion at December 31, 2011. Non-interest bearing deposits comprised
29.9 percent of total deposits at December 31, 2012, compared to 27.5 percent
a year ago. At December 31, 2012, the Company’s loans were 88.5 percent of
deposits compared to 86.5 percent at September 30, 2012 and 84.5 percent at
December 31, 2011.

Stockholders’ equity at December 31, 2012 increased to $759.6 million from
$698.0 million at September 30, 2012, of which $32 million was due to the
issuance of shares to complete the Western Liberty Bancorp acquisition. At
December 31, 2012, tangible common equity was 7.8 percent of tangible assets^1
and total risk-based capital was 12.6 percent of risk-weighted assets.

Total assets increased to $7.62 billion at December 31, 2012 from $7.40
billion at September 30, 2012 and increased 11.4 percent from $6.84 billion at
December 31, 2011.

Operating Unit Highlights

Bank of Nevada reported that loans increased by $122 million during the fourth
quarter of 2012, and increased $324 million during the last 12 months to $2.18
billion at December 31, 2012. Deposits increased by $161 million in the fourth
quarter of 2012 and $192 million over the last twelve months to $2.57 billion.
This growth was mostly due to the acquisition of Service 1^st Bank of Nevada
(former subsidiary of Western Liberty merged into Bank of Nevada). Net income
for Bank of Nevada was $7.6 million for the fourth quarter 2012, compared with
net income of $5.8 million for the third quarter of 2012 and net income of
$1.2 million during the fourth quarter 2011.

Western Alliance Bank (doing business as Alliance Bank of Arizona and First
Independent Bank) reported loan growth of $166 million during the fourth
quarter 2012 and $392 million during the last 12 months to $2.04 billion.
Deposits increased $74 million in the fourth quarter and $347 million during
the last 12 months to $2.22 billion. Net income for Western Alliance Bank was
$10.4 million during the fourth quarter 2012 compared with net income of $8.8
million during the third quarter of 2012 and net income of $5.6 million during
the fourth quarter 2011.

The Torrey Pines Bank segment, which excludes discontinued operations,
reported that loans increased $78 million during the fourth quarter 2012 and
$189 million during the last 12 months to $1.51 billion. Deposits increased
$65 million in the fourth quarter 2012 and $263 million over the last 12
months to $1.68 billion. Net income for Torrey Pines Bank was $5.2 million
during the fourth quarter 2012 compared with net income of $6.4 million for
the third quarter of 2012 and net income of $5.9 million during the fourth
quarter 2011.

The other segment reported loans increased during the fourth quarter 2012 by
$11 million as the result of the acquisition of Las Vegas Sunset Properties
(former subsidiary of Western Liberty, now a subsidiary of Western Alliance
Bancorporation) and increased $24 million during the last 12 months.

Attached to this press release is summarized financial information for the
quarter ended December 31, 2012.

Subsequent Event

On January 18, 2013, the Company’s Western Alliance Bank subsidiary executed a
definitive agreement to acquire Centennial Bank, located in Fountain Valley,
California, for $57.5 million in cash, distribution of specified loans and
assumption of Centennial Bank’s transactional expenses up to $1.0 million.
Subject to bankruptcy court and regulatory approval, the transaction is
expected to close in the late first quarter 2013. The Company expects the
acquisition to be accretive to its earnings per share.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast
to discuss its fourth quarter 2012 financial results at 12:00 p.m. ET on
Friday, January 25, 2013. Participants may access the call by dialing
1-888-317-6003 and using passcode: 7853474 or via live audio webcast using the
website link: https://services.choruscall.com/links/wal130125.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, January 25^th through February 25^th at 9:00
a.m. ET by dialing 1-877-344-7529 using the conference number 10023314.

About Western Alliance Bancorporation

Western Alliance Bancorporation is the parent company of Bank of Nevada,
Western Alliance Bank doing business as Alliance Bank of Arizona and First
Independent Bank, and Torrey Pines Bank. These dynamic organizations provide a
broad array of deposit and credit services to clients in Nevada, Arizona and
California. Staffed with experienced financial professionals, these
organizations deliver a broader product array and larger credit capacity than
community banks, yet are empowered to be more responsive to customers' needs
than larger institutions. Additional investor information can be accessed on
the Investor Relations page of the company's website,
www.westernalliancebancorp.com.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements that relate to expectations,
beliefs, projections, future plans and strategies, anticipated events or
trends and similar expressions concerning matters that are not historical
facts. The forward-looking statements contained herein reflect our current
views about future events and financial performance and are subject to risks,
uncertainties, assumptions and changes in circumstances that may cause our
actual results to differ significantly from historical results and those
expressed in any forward-looking statement. Some factors that could cause
actual results to differ materially from historical or expected results
include: factors listed in the Form 10-K as filed with the Securities and
Exchange Commission; changes in general economic conditions, either nationally
or locally in the areas in which we conduct or will conduct our business;
inflation, interest rate, market and monetary fluctuations; increases in
competitive pressures among financial institutions and businesses offering
similar products and services; higher defaults on our loan portfolio than we
expect; changes in management’s estimate of the adequacy of the allowance for
credit losses; legislative or regulatory changes or changes in accounting
principles, policies or guidelines; management’s estimates and projections of
interest rates and interest rate policy; the execution of our business plan;
and other factors affecting the financial services industry generally or the
banking industry in particular.

We do not intend and disclaim any duty or obligation to update or revise any
industry information or forward-looking statements set forth in this press
release to reflect new information, future events or otherwise.

This press release contains both financial measures based on accounting
principles generally accepted in the United States (“GAAP”) and non-GAAP based
financial measures, which are used where management believes it to be helpful
in understanding Western Alliance Bancorporation’s results of operations or
financial position. Where non-GAAP financial measures are used, the comparable
GAAP financial measure, as well as the reconcilement to the comparable GAAP
financial measure, can be found in this press release. These disclosures
should not be viewed as a substitute for operating results determined in
accordance with GAAP, nor are they necessarily comparable to non-GAAP
performance measures that may be presented by other companies.

^1 See Reconciliation of Non-GAAP Financial Measures beginning on page 16
^2 Non GAAP Financial Measures

                                                                                    
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited

                    At or for the Three Months                   For the Twelve Months
                    Ended December 31,                           Ended December 31,
                    2012            2011            Change %     2012            2011            Change
                                                                                                 %
Selected
Balance Sheet
Data:
(dollars in
millions)
Total assets        $ 7,622.6       $ 6,844.5       11.4     %
Loans, net of         5,709.3         4,780.1       19.4
deferred fees
Securities
and money             1,236.6         1,490.5       (17.0  )
market
investments
Total                 6,455.2         5,658.5       14.1
deposits
Borrowings            272.7           476.9         (42.8  )
Junior
subordinated          36.2            37.0          (2.2   )
debt
Stockholders'         759.6           636.7         19.3
equity
                                                                                                         
Selected
Income
Statement
Data:
(dollars in
thousands)
Interest            $ 84,343        $ 76,846        9.8      %   $ 318,295       $ 296,591       7.3     %
income
Interest             6,888         8,147        (15.5  )      28,032        38,923       (28.0 )
expense
Net interest          77,455          68,699        12.7           290,263         257,668       12.6
income
Provision for        11,501        13,076       (12.0  )      46,844        46,188       1.4
loan losses
Net interest
income after          65,954          55,623        18.6           243,419         211,480       15.1
provision for
credit losses
Non-interest          24,463          4,948         394.4          44,726          34,457        29.8
income
Non-interest         48,989        50,963       (3.9   )      188,860       195,598      (3.4  )
expense
Income from
continuing
operations            41,428          9,608         331.2          99,285          50,339        97.2
before income
taxes
Income tax           7,509         2,011        273.4         23,961        16,849       42.2
expense
Income from
continuing            33,919          7,597         346.5          75,324          33,490        124.9   %
operations
Loss on
discontinued         (1,804  )      (496    )     (263.7 )      (2,490  )      (1,996  )
operations,
net
Net income          $ 32,115       $ 7,101        352.3    %   $ 72,834       $ 31,494  
Diluted net
income per
common share        $ 0.39         $ 0.07                      $ 0.86         $ 0.21    
from
continuing
operations
Diluted net
loss per
common share
from                $ (0.02   )     $ (0.01   )                  $ (0.03   )     $ (0.02   )
discontinued
operations,
net of tax
Diluted net
income per          $ 0.37         $ 0.07         428.6    %   $ 0.83         $ 0.19         342.2   %
common share
                                                                                                         
Common Share
Data:
Diluted net
income per          $ 0.37          $ 0.07          428.6    %   $ 0.83          $ 0.19          342.2   %
common share
Book value
per common          $ 7.15          $ 6.02          18.8     %
share
Tangible book
value per           $ 6.84          $ 5.63          21.4     %
share, net of
tax (1)
Average
shares
outstanding
(in
thousands):
Basic                 84,416          81,026        4.2            82,285          80,909        1.7
Diluted               85,152          81,368        4.7            82,912          81,183        2.1
Common shares         86,465          82,362        5.0
outstanding
                                                                                                         

(1)   See Reconciliation of Non-GAAP Financial Measures
        
        

                                                                
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)
Unaudited

                    At or for the Three Months       For the Twelve Months
                    Ended December 31,               Ended December 31,
                    2012      2011       Change      2012      2011      Change
                                         %                               %
                    (in thousands, except per share data)
Selected
Performance
Ratios:
Return on
average             1.68  %   0.42   %   300.0   %   1.01  %   0.49  %   106.1   %
assets (1)
Return on
average             17.03     4.34       292.4       10.54     4.99      111.2
stockholders'
equity (1)
Net interest        4.55      4.51       0.9         4.49      4.37      2.7
margin (1)
Net interest        4.37      4.30       1.6         4.31      4.12      4.6
spread
Efficiency
ratio - tax         53.48     56.49      (5.3  )     55.39     59.46     (6.9  )
equivalent
basis (2)
Loan to             88.45     84.48      4.7
deposit ratio
                                                                                 
Capital
Ratios:
Tangible            9.6   %   8.8    %   8.9     %
equity (2)
Tangible
common equity       7.8       6.8        14.8
(2)
Tier one
common equity       8.6       8.1        5.9
(2)
Tier 1
Leverage            10.1      9.8        3.1
ratio (3)
Tier 1 Risk
Based Capital       11.3      11.3       0.0
(3)
Total Risk
Based Capital       12.6      12.6       0.0
(3)
                                                                                 
Asset Quality
Ratios:
Net
charge-offs
to average          0.99  %   1.24   %   (20.2 ) %   0.99  %   1.32  %   (25.0 ) %
loans
outstanding
(1)
Nonaccrual
loans to            1.83      1.89       (3.2  )
gross loans
Nonaccrual
loans and
repossessed         2.39      2.62       (8.8  )
assets to
total assets
Loans past
due 90 days
and still           0.02      0.05       (60.0 )
accruing to
total loans
Allowance for
credit losses       1.67      2.07       (19.3 )
to loans
Allowance for
credit losses       91.13     109.71     (16.9 )
to nonaccrual
loans
                                                                                 

(1)   Annualized for the three month periods ended December 31, 2012 and
        2011. See tables on page 12 and 13.
(2)     See Reconciliation of Non-GAAP Financial Measures.
(3)     Capital ratios are preliminary until Call Reports are filed.
        
        

                                                                  
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited                Three Months Ended                    Twelve Months Ended
                         December 31,                          December 31,
                         2012             2011                 2012              2011
Interest income:         (dollars in thousands)
Loans                    $ 75,303         $ 67,102             $ 280,985         $ 261,443
Investment                 8,794            9,591                36,802            34,419
securities
Federal funds sold        246            153                508             729     
and other
Total interest            84,343         76,846             318,295         296,591 
income
Interest expense:
Deposits                   3,890            5,549                16,794            27,977
Customer
repurchase                 35               73                   194               336
agreements
Borrowings                 2,493            2,053                9,116             8,282
Junior                    470            472                1,928           2,328   
subordinated debt
Total interest            6,888          8,147              28,032          38,923  
expense
Net interest               77,455           68,699               290,263           257,668
income
Provision for             11,501         13,076             46,844          46,188  
credit losses
Net interest
income after              65,954         55,623             243,419         211,480 
provision for
credit losses
Non-interest
income:
Unrealized gains
(losses) on
assets/liabilities         (48    )         (626   )             653               5,621
measured at fair
value, net
Securities                 -                -                    -                 (226    )
impairment charges
Gains on sales of
investment                 1,447            (28    )             3,949             4,798
securities, net
Service charges            2,438            2,238                9,452             9,102
Bank owned life            1,080            1,177                4,439             5,372
insurance
Amortization of
affordable housing         (1,069 )         -                    (1,779  )         -
investments
Bargain purchase
gain from                  17,562           -                    17,562            -
acquisition
Other                     3,053          2,187              10,450          9,790   
                          24,463         4,948              44,726          34,457  
Non-interest
expenses:
Salaries and               26,885           24,021               105,044           93,140
employee benefits
Occupancy                  4,769            4,948                18,815            19,972
Net loss on sales
and valuations of          529              7,702                4,207             24,592
repossessed assets
Insurance                  2,188            2,166                8,511             11,045
Loan and
repossessed asset          2,102            1,661                6,675             8,126
expenses
Legal,
professional and           1,849            2,039                8,229             7,678
director's fees
Marketing                  1,546            1,294                5,607             4,676
Data Processing            2,071            895                  5,749             3,566
Intangible                 596              889                  3,256             3,559
amortization
Customer service           678              716                  2,604             3,336
Merger/restructure         2,706            482                  2,819             1,564
expense
Goodwill and
intangible                 -                -                    3,435             -
impairment
Other                     3,070          4,150              13,909          14,344  
                          48,989         50,963             188,860         195,598 
Income from
continuing                 41,428           9,608                99,285            50,339
operations before
income taxes
Income tax expense        7,509          2,011              23,961          16,849  
Income from
continuing                 33,919           7,597                75,324            33,490
operations
Loss from
discontinued              (1,804 )        (496   )            (2,490  )        (1,996  )
operations net of
tax benefit
Net income                 32,115           7,101                72,834            31,494
Preferred stock            353              1,781                3,793             7,033
dividends
Accretion on
preferred stock           -              -                  -               9,173   
discount
Net income
available to             $ 31,762        $ 5,320             $ 69,041         $ 15,288  
common
stockholders
Diluted net income       $ 0.37          $ 0.07              $ 0.83           $ 0.19    
per share
                                                                                 
                                                                                 

                                                                             
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited                Three Months Ended
                         December         September        June 30,         March 31,        December
                         31,              30,                                                31,
                         2012             2012             2012             2012             2011
Interest income:         (in thousands, except per share data)
Loans                    $ 75,303         $ 69,580         $ 68,342         $ 67,760         $ 67,102
Investment                 8,794            9,034            9,389            9,585            9,591
securities
Federal funds sold        246            55             115            92             153    
and other
Total interest            84,343         78,669         77,846         77,437         76,846 
income
Interest expense:
Deposits                   3,890            3,974            4,168            4,762            5,549
Borrowings and
customer                   2,528            2,262            2,386            2,134            2,126
repurchase
agreements
Junior                    470            487            487            484            472    
subordinated debt
Total interest            6,888          6,723          7,041          7,380          8,147  
expense
Net interest               77,455           71,946           70,805           70,057           68,699
income
Provision for             11,501         8,932          13,330         13,081         13,076 
credit losses
Net interest
income after              65,954         63,014         57,475         56,976         55,623 
provision for
credit losses
Non-interest
income:
Mark-to-market
gains (losses),            (48    )         470              564              (333   )         (626   )
net
Gains on sales of
investment                 1,447            1,031            1,110            361              (28    )
securities, net
Service charges            2,438            2,412            2,317            2,285            2,238
Bank owned life            1,080            1,116            1,120            1,123            1,177
insurance
Amortization of
affordable housing         (1,069 )         (651   )         (59    )         -                -
investments
Bargain purchase
gain from                  17,562           -                -                -                -
acquisition
Other                     3,053          2,604          2,345          2,448          2,187  
                          24,463         6,982          7,397          5,884          4,948  
Non-interest
expenses:
Salaries and               26,885           25,500           25,995           26,664           24,021
employee benefits
Occupancy                  4,769            4,655            4,669            4,722            4,948
Insurance                  2,188            2,121            2,152            2,050            2,166
Loan and
repossessed asset          2,102            1,236            1,653            1,684            1,661
expenses
Net loss on sales
and valuations of          529              126              901              2,651            7,702
repossessed assets
Legal,
professional and           1,849            2,291            2,517            1,572            2,039
director's fees
Marketing                  1,546            1,231            1,459            1,371            1,294
Intangible                 596              880              890              890              889
amortization
Customer service           678              653              682              591              716
Data Processing            2,071            1,390            1,293            995              895
Merger/restructure         2,706            113              -                -                482
expense
Goodwill and
intangible                 -                3,435            -                -                -
impairment
Other                     3,070          3,912          3,220          3,707          4,150  
                          48,989         47,543         45,431         46,897         50,963 
Income from
continuing                 41,428           22,453           19,441           15,963           9,608
operations before
income taxes
Income tax expense        7,509          6,752          5,259          4,441          2,011  
Income from
continuing               $ 33,919         $ 15,701         $ 14,182         $ 11,522         $ 7,597
operations
Loss from
discontinued              (1,804 )        (243   )        (221   )        (222   )        (496   )
operations, net of
tax
Net income               $ 32,115        $ 15,458        $ 13,961        $ 11,300        $ 7,101  
Preferred stock            353              352              1,325            1,763            1,781
dividends
Net Income
available to             $ 31,762        $ 15,106       $ 12,636       $ 9,537        $ 5,320  
common
stockholders
Diluted net income       $ 0.37          $ 0.18          $ 0.15          $ 0.12          $ 0.07   
per share
                                                                                             
                                                                                             

                                                                            
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited

                    December          September         June 30,          March 31,         December
                    31,               30,                                                   31,
                    2012              2012              2012              2012              2011
Assets:             (in millions)
Cash and due        $ 204.6           $ 168.1           $ 178.9           $ 179.8           $ 155.0
from banks
Securities
purchased
under                -               139.8           -               -               -       
agreement to
resell
Cash and cash         204.6             307.9             178.9             179.8             155.0
equivalents
Securities
and money             1,236.6           1,338.9           1,401.5           1,423.2           1,490.5
market
investments
Loans held            31.1              -                 -                 -                 -
for sale
Loans held
for
investment:
Commercial            1,947.8           1,756.0           1,573.6           1,436.5           1,336.6
Commercial
real estate -         1,396.8           1,331.3           1,310.3           1,289.9           1,252.2
owner
occupied
Construction
and land              394.3             379.8             360.6             347.7             381.7
development
Commercial
real estate -         1,505.6           1,407.1           1,440.4           1,365.6           1,301.2
non-owner
occupied
Residential           407.9             408.4             430.4             434.5             443.0
real estate
Consumer              31.8              56.6              55.8              58.7              72.5
Deferred             (6.0    )        (6.3    )        (6.3    )        (6.7    )        (7.1    )
fees, net
                      5,678.2           5,332.9           5,164.8           4,926.2           4,780.1
Allowance for        (95.4   )        (97.4   )        (97.5   )        (98.1   )        (99.2   )
credit losses
Loans, net           5,582.8         5,235.5         5,067.3         4,828.1         4,680.9 
Premises and
equipment,            107.9             106.9             106.9             105.1             105.5
net
Other
repossessed           77.2              78.2              77.0              81.4              89.1
assets
Bank owned
life                  138.3             137.3             136.1             135.0             133.9
insurance
Goodwill and
other                 29.8              29.0              34.0              34.8              35.7
intangibles
Other assets         214.3           169.9           161.9           137.9           153.9   
Total assets        $ 7,622.6        $ 7,403.6        $ 7,163.6        $ 6,925.3        $ 6,844.5 
Liabilities
and
Stockholders'
Equity:
Liabilities:
Deposits:
Non-interest
bearing             $ 1,933.2         $ 1,840.8         $ 1,842.1         $ 1,757.7         $ 1,558.2
demand
deposits
Interest
bearing:
Demand                582.3             514.7             540.6             527.2             482.7
Savings and           2,573.5           2,541.2           2,438.4           2,224.1           2,166.6
money market
Time                 1,366.2         1,265.3         1,180.3         1,390.1         1,451.0 
certificates
Total                 6,455.2           6,162.0           6,001.4           5,899.1           5,658.5
deposits
Customer
repurchase           79.0            73.1            86.9            114.4           123.6   
agreements
Total
customer              6,534.2           6,235.1           6,088.3           6,013.5           5,782.1
funds
Securities            -                 138.3             -                 -                 -
sold short
Borrowings            193.7             223.6             303.5             193.4             353.3
Junior
subordinated          36.2              36.2              36.7              37.3              37.0
debt
Accrued
interest
payable and          98.9            72.4            63.0            27.0            35.4    
other
liabilities
Total                6,863.0         6,705.6         6,491.5         6,271.2         6,207.8 
liabilities
Stockholders'
Equity
Common stock
and
additional            784.9             751.1             748.1             746.2             743.8
paid-in
capital
Preferred             141.0             141.0             141.0             141.0             141.0
Stock
Accumulated           (174.5  )         (206.2  )         (221.3  )         (234.0  )         (243.5  )
deficit
Accumulated
other                8.2             12.1            4.3             0.9             (4.6    )
comprehensive
income (loss)
Total
stockholders'        759.6           698.0           672.1           654.1           636.7   
equity
Total
liabilities
and                 $ 7,622.6        $ 7,403.6        $ 7,163.6        $ 6,925.3        $ 6,844.5 
stockholders'
equity
                                                                                            
                                                                                            

                                                                           
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited

                   Three Months Ended
                   December          September         June 30,          March 31,         December
                   31,               30,                                                   31,
                   2012              2012              2012              2012              2011
                   (in thousands)
Balance,
beginning of       $ 97,410          $ 97,512          $ 98,122          $ 99,170          $ 100,216
period
Provision
for credit           11,501            8,932             13,330            13,081            13,076
losses
Recoveries
of loans
previously
charged-off:
Construction
and land             2,033             567               217               86                354
development
Commercial           397               633               561               1,705             755
real estate
Residential          313               153               274               340               179
real estate
Commercial
and                  372               501               1,417             777               603
industrial
Consumer            63              38              214             38              64      
Total                3,178             1,892             2,683             2,946             1,955
recoveries
Loans
charged-off:
Construction
and land             405               2,315             3,185             5,087             3,155
development
Commercial           7,143             1,470             5,641             4,912             9,244
real estate
Residential          1,307             2,242             2,094             1,420             1,895
real estate
Commercial
and                  4,654             4,100             4,933             3,654             1,004
industrial
Consumer (1)        3,153           799             770             2,002           779     
Total loans          16,662            10,926            16,623            17,075            16,077
charged-off
Net loans           13,484          9,034           13,940          14,129          14,122  
charged-off
Balance, end       $ 95,427         $ 97,410         $ 97,512         $ 98,122         $ 99,170  
of period
                                                                                           
Net
charge-offs
(annualized)         0.99    %         0.70    %         1.11    %         1.18    %         1.24    %
to average
loans
outstanding
Allowance
for credit           1.67              1.83              1.89              1.99              2.07
losses to
gross loans
Nonaccrual         $ 104,716         $ 121,238         $ 104,324         $ 103,486         $ 90,392
loans
Repossessed          77,247            78,234            76,994            81,445            89,104
assets
Loans past
due 90 days,         1,388             1,710             795               1,011             2,589
still
accruing
Loans past
due 30 to 89         16,565            10,181            13,848            12,040            13,731
days, still
accruing
Classified
loans on             112,637           116,841           135,913           98,170            112,147
accrual
Watch loans          103,550           97,681            91,924            132,829           147,112
                                                                                           

(1)   Increase due to planned disposition of affinity credit card business
        
        

                                                                                         
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                                                                                                      
                          Three Months Ended December 31,
                          2012 (2)                                     2011
                                                         Average                                      Average
                          Average                                      Average
                                        Interest       Yield/                        Interest       Yield/
                          Balance                                      Balance
                                                         Cost                                         Cost
Interest earning          ($ in           ($ in                        ($ in           ($ in
assets
                          millions)       thousands)                   millions)       thousands)
Investment                $ 1,329.3       $  8,794       3.25  %       $ 1,452.8       $  9,591       3.01  %
securities (1)
Federal funds sold          1.3              1           0.28  %         2.4              -           0.00  %
and other
Loans (1)                   5,450.0          75,303      5.60  %         4,557.0          67,102      5.84  %
Short term                  267.1            14          0.02  %         125.1            127         0.40  %
investments
Investment in              32.0           231         2.89  %        34.1           26          0.30  %
restricted stock
Total interest              7,079.7          84,343      4.94  %         6,171.4          76,846      5.03  %
earning assets
Non-interest
earning assets
Cash and due from           121.2                                        113.4
banks
Allowance for               (99.1   )                                    (100.8  )
credit losses
Bank owned life             137.6                                        133.1
insurance
Other assets               364.0                                      351.9   
Total assets              $ 7,603.4                                   $ 6,669.0 
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest-bearing
transaction               $ 528.1         $  301         0.23  %       $ 475.8         $  333         0.28  %
accounts
Savings and money           2,539.8          1,973       0.31  %         2,174.4          2,431       0.44  %
market
Time certificates          1,406.9        1,616       0.46  %        1,463.9        2,785       0.75  %
of deposit
Total
interest-bearing            4,474.8          3,890       0.35  %         4,114.1          5,549       0.54  %
deposits
Borrowings                  299.6            2,528       3.38  %         266.8            2,126       3.16  %
Junior subordinated        36.2           470         5.19  %        36.4           472         5.14  %
debt
Total
interest-bearing            4,810.6          6,888       0.57  %         4,417.3          8,147       0.73  %
liabilities
Noninterest-bearing
liabilities
Noninterest-bearing         1,948.4                                      1,575.0
demand deposits
Other liabilities           94.4                                         27.9
Stockholders’              750.0                                      648.8   
equity
Total liabilities
and stockholders'         $ 7,603.4                                   $ 6,669.0 
equity
Net interest income                       $  77,455      4.55  %                       $  68,699      4.51  %
and margin
Net interest spread                                      4.37  %                                      4.30  %
                                                                                                      

        Yields on loans and securities have been adjusted to a tax equivalent
(1)   basis. The taxable-equivalent adjustment was $3,012 and $1,425 for the
        fourth quarter ended 2012 and 2011, respectively.
(2)     Yields for 2012 calculated on a 30-day month/360-days-per-year basis.
        
        

                                                                                          
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                      
                          Twelve Months Ended December 31,
                          2012 (2)                                     2011
                                                         Average                                      Average
                          Average                                      Average
                                          Interest       Yield/                        Interest       Yield/
                          Balance                                      Balance
                                                         Cost                                         Cost
Interest earning          ($ in           ($ in                        ($ in           ($ in
Assets
                          millions)       thousands)                   millions)       thousands)
Investment                $ 1,385.3       $  36,802      3.17  %       $ 1,307.1       $  34,419      2.86  %
securities (1)
Federal funds sold          0.6              2           0.33  %         0.9              1           0.11  %
& other
Loans (1)                   5,110.2          280,985     5.55  %         4,373.5          261,443     5.98  %
Short term                  155.8            140         0.09  %         247.0            629         0.25  %
investments
Investment in              33.1           366         1.11  %        35.6           99          0.28  %
restricted stock
Total interest              6,685.0          318,295     4.91  %         5,964.1          296,591     5.02  %
earnings assets
Non-interest
earning assets
Cash and due from           116.9                                        119.5
banks
Allowance for               (98.9   )                                    (105.9  )
credit losses
Bank owned life             136.0                                        131.6
insurance
Other assets               354.4                                      377.1   
Total assets              $ 7,193.4                                   $ 6,486.4 
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest bearing
transaction               $ 515.3         $  1,220       0.24  %       $ 478.3         $  1,759       0.37  %
accounts
Savings and money           2,371.5          8,088       0.34  %         2,105.3          12,858      0.61  %
market
Time certificates          1,359.5        7,486       0.55  %        1,460.7        13,360      0.91  %
of deposits
Total
interest-bearing            4,246.3          16,794      0.40  %         4,044.3          27,977      0.69  %
deposits
Borrowings                  369.0            9,310       2.52  %         234.8            8,618       3.67  %
Junior subordinated        36.8           1,928       5.24  %        41.3           2,328       5.64  %
debt
Total
interest-bearing          $ 4,652.1          28,032      0.60  %       $ 4,320.4          38,923      0.90  %
liabilities
Noninterest-bearing
liabilities
Noninterest-bearing         1,788.3                                      1,509.4
demand deposits
Other liabilities           62.0                                         25.3
Stockholders’              691.0                                      631.3   
equity
Total liabilities
and stockholders'         $ 7,193.4                                   $ 6,486.4 
equity
Net interest income                       $  290,263     4.49  %                       $  257,668     4.37  %
and margin
Net interest spread                                      4.31  %                                      4.12  %
                                                                                                      

        Yields on loans and securities have been adjusted to a tax equivalent
(1)   basis. The taxable-equivalent adjustment was $9,738 and $3,014 for the
        twelve months December 31, 2012 and 2011, respectively.
(2)     Yields for 2012 were calculated on a 30-day month/360-days-per-year
        basis.
        
        

                                                                                         
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited                                                                        Inter-
                                                                                    segment         Consoli-
                    Bank            Western         Torrey                          elimi-          dated
                    of Nevada       Alliance        Pines Bank*     Other           nations         Company
                                    Bank
At December         (dollars in millions)
31, 2012
Assets              $ 3,029.1       $ 2,565.1       $ 2,019.8       $ 902.0         $ (893.4  )     $ 7,622.6
Held for sale         -               -               31.1            -               -               31.1
loans
Gross loans
and deferred          2,183.3         2,037.1         1,477.1         23.5            (42.8   )       5,678.2
fees, net
Less:
Allowance for        (58.2   )      (21.3   )      (15.6   )      (0.3    )      -             (95.4    )
credit losses
Net loans            2,125.1       2,015.8       1,461.5       23.2          (42.8   )      5,582.8  
Goodwill              23.2            -               -               -               -               23.2
Deposits              2,569.1         2,224.2         1,679.3         -               (17.4   )       6,455.2
FHLB advances         -               25.0            95.0            -               -               120.0
and other
Stockholders'         378.2           224.0           169.1           780.9           (792.6  )       759.6
equity
                                                                                                    
No. of                12              16              12              -               -               40
branches
No. of FTE            400             254             233             95              -               982
                                                                                                    
Three Months
Ended               (in thousands)
December 31,
2012:
Net interest        $ 30,127        $ 26,745        $ 22,247        $ (1,664  )     $ -             $ 77,455
income
Provision for        6,532         1,369         3,300         300           -             11,501   
credit losses
Net interest
income (loss)
after                 23,595          25,376          18,947          (1,964  )       -               65,954
provision for
credit losses
Non-interest          5,269           1,546           763             19,959          (3,074  )       24,463
income (1)
Non-interest         (18,616 )      (13,155 )      (11,349 )      (8,943  )      3,074         (48,989  )
expense
Income (loss)
from
continuing            10,248          13,767          8,361           9,052           -               41,428
operations
before income
taxes
Income tax
expense              2,692         3,349         3,146         (1,678  )      -             7,509    
(benefit)
Income (loss)
from                  7,556           10,418          5,215           10,730          -               33,919
continuing
operations
Loss from
discontinued         -             -             -             (1,804  )      -             (1,804   )
operations,
net
Net income          $ 7,556        $ 10,418       $ 5,215        $ 8,926        $ -            $ 32,115   
(loss)
                                                                                                    
Twelve Months
Ended               (in thousands)
December 31,
2012:
Net interest        $ 113,181       $ 98,309        $ 86,653        $ (7,880  )     $ -             $ 290,263
income
Provision for        35,378        2,584         8,582         300           -             46,844   
credit losses
Net interest
income (loss)
after                 77,803          95,725          78,071          (8,180  )       -               243,419
provision for
credit losses
Non-interest          16,401          6,566           3,875           29,684          (11,800 )       44,726
income (1)
Non-interest         (72,052 )      (49,141 )      (44,841 )      (34,626 )      11,800        (188,860 )
expense
Income (loss)
from
continuing            22,152          53,150          37,105          (13,122 )       -               99,285
operations
before income
taxes
Income tax
expense              4,033         16,380        14,401        (10,853 )      -             23,961   
(benefit)
Income (loss)
from                  18,119          36,770          22,704          (2,269  )       -               75,324
continuing
operations
Loss from
discontinued         -             -             -             (2,490  )      -             (2,490   )
operations,
net
Net income          $ 18,119       $ 36,770       $ 22,704       $ (4,759  )     $ -            $ 72,834   
(loss)
                                                                                                    

*     Excludes discontinued operations
(1)     Includes bargain purchase gain on acquisition
        
        

<td class=*Story too large*
                                                                                       
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited                                                                       Inter-
                                                                                   segment        Consoli-
                    Bank            Western         Torrey                         elimi-         dated
                    of Nevada       Alliance        Pines Bank*     Other          nations        Company
                                    Bank
At December         (dollars in millions)
31, 2011
Assets              $ 2,877.6       $ 2,234.7       $ 1,728.4       $ 762.3        $ (758.5 )     $ 6,844.5
Gross loans
and deferred          1,859.1         1,644.9         1,318.9         -              (42.8  )       4,780.1
fees, net
Less:
Allowance for        (61.0   )      (21.7   )      (16.5   )      -            -            (99.2   )
credit losses
Net loans            1,798.1       1,623.2       1,302.4       -            (42.8  )      4,680.9 
Goodwill              23.2            -               -               2.7            -              25.9
Deposits              2,377.3         1,877.5         1,416.8         -              (13.1  )       5,658.5
FHLB advances         115.0           55.0            110.0           -              -              280.0
and other
Stockholders'         320.8           192.7           152.8           644.0          (673.6 )       636.7
equity
                                                                                                  
No. of                11              16              12              -              -              39
branches
No. of FTE            405             222             214             101            -              942
                                                                                                  
Three Months
Ended               (in thousands)
December 31,
2011:
Net interest        $ 27,734        $ 22,499        $ 20,554        $ (2,088 )     $ -            $ 68,699
income
Provision for        9,000         3,470         606           -            -            13,076  
credit losses
Net interest
income (loss)
after                 18,734          19,029          19,948          (2,088 )       -              55,623
provision for
credit losses
Non-interest          3,450           1,491           1,028           1,248          (2,269 )       4,948
income
Non-interest
expense

[TRUNCATED]
 
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