Western Alliance Reports First Quarter 2013 Net Income of $21.0 Million, or $0.24 Per Share, Receives Final Regulatory Approval

  Western Alliance Reports First Quarter 2013 Net Income of $21.0 Million, or
  $0.24 Per Share, Receives Final Regulatory Approval for Acquisition of
  Centennial Bank

Business Wire

PHOENIX -- April 18, 2013

Western Alliance Bancorporation (NYSE:WAL) announced today its financial
results for the first quarter 2013.

First Quarter 2013 Highlights:

  *Net income of $21.0 million, up $9.7 million compared to $11.3 million for
    the first quarter 2012. The fourth quarter of 2012 was $32.1 million, or
    $17.3 million excluding $14.8 million net effect from acquisition and
    disposition transactions
  *Earnings per share of $0.24, compared to $0.12 per share in the first
    quarter 2012. The fourth quarter of 2012 was $0.37 per share, or $0.22 per
    share excluding $0.15 per share gain net of effect from acquisition and
    disposition transactions
  *Pre-tax, pre-provision operating earnings of $35.1 million, up 10.7% from
    $31.7 million in first quarter 2012 and down from $36.8 million in fourth
    quarter 2012^1
  *Net interest margin of 4.36%, compared to 4.53% in the first quarter 2012
    and 4.55% in the fourth quarter of 2012
  *Total loans of $5.86 billion, up $146 million from December 31, 2012, and
    up $929 million from March 31, 2012
  *Total deposits of $6.73 billion, up $280 million from December 31, 2012
    and up $836 million from March 31, 2012
  *Nonperforming assets (nonaccrual loans and repossessed assets) decreased
    to 2.1% of total assets from 2.4% in fourth quarter 2012 and from 2.7% in
    first quarter 2012
  *Net loan charge-offs (annualized) to average loans outstanding decreased
    to 0.38% from 0.99% in the fourth quarter 2012 and 1.18% in the first
    quarter 2012
  *Tier I Leverage capital of 10.1% and Total Risk-Based Capital ratio of
    12.6%, compared to 9.8% and 12.5% a year ago
  *Total equity of $781.3 million, up $21.7 million from December 31, 2012

Financial Performance

“We are off to a strong start to 2013 with success on multiple fronts,” said
Robert Sarver, Chairman and Chief Executive Officer of Western Alliance
Bancorporation. “During the first quarter, we again achieved strong growth in
loans and deposits continuing our momentum from 2012. Credit quality trends
were also favorable, with declining net charge-offs, reduced levels of
nonaccrual loans, and an improved classified asset ratio.”

Continuing, Sarver stated, “Another recent opportunity for us has been in the
area of acquisitions. The acquisition of Western Liberty Bancorp and its
subsidiary ServiceFirst Bank of Nevada were integrated into the Company’s
operating platform in the fourth quarter with minimal customer impact. The
transaction added $0.15 to earnings per share. Now I am pleased to report that
our acquisition of Centennial Bank in California has received all legal and
regulatory approvals, with a planned closing date at the end of April. This
transaction is also expected to be accretive to capital and earnings per
share.”

Western Alliance Bancorporation reported net income of $21.0 million, or $0.24
per share, in the first quarter 2013, about double the $11.3 million, or $0.12
per share, earned one year ago. Key performance improvement drivers include
sustained organic balance sheet growth, prudent expense management, and
reduced legacy asset costs against the backdrop of improved economic
conditions.

Total loans increased $146 million to $5.86 billion at March 31, 2013 from
$5.71 billion on December 31, 2012. This increase was primarily driven by
growth in commercial and industrial loans and commercial real estate loans.
Loans increased $929 million, or 18.9 percent, from March 31, 2012. Two thirds
of the Company’s loan growth during the past year has been in the commercial
category, which includes municipal loans.

Total deposits increased $280 million to $6.73 billion at March 31, 2013 from
$6.46 billion at December 31, 2012, with growth primarily in money market and
interest-bearing demand deposits. Growth in money market deposits drove our
14.2 percent ($836 million) deposit growth from March 31, 2012.

Income Statement

Net interest income was $76.2 million in the first quarter 2013, an increase
of 8.7 percent from $70.1 million in the first quarter of 2012 and a decrease
of $1.3 million, or 1.7 percent compared to the fourth quarter 2012 which
included a $1.2 million non-recurring gain and two additional days in the
quarter. The Company’s net interest margin declined in the first quarter 2013
to 4.36 percent compared to 4.53 percent in the first quarter 2012, and 4.55
percent in the fourth quarter 2012 as the Company extended the duration of its
fixed rate funding which should mitigate our margin contraction prospectively.

Operating non-interest income was $5.1 million for the first quarter 2013,
flat from the fourth quarter of 2012 and down from $5.9 million for the first
quarter of 2012.^1

Net revenue was $81.3 million for the first quarter 2013, down from $82.5
million for the fourth quarter of 2012 and an increase of 7.1 percent from
$75.9 million for the first quarter 2012.^1

Operating non-interest expense was $46.2 million for the first quarter 2013,
compared to $45.8 million for the fourth quarter of 2012 and $44.2 million for
the first quarter of 2012.^1 The Company’s operating efficiency ratio^1 on a
tax equivalent basis was 54.6 percent for the first quarter 2013, an
improvement from 57.0 percent for the first quarter 2012 as the growth rate in
revenue continued to outpace that of expense.

The Company had 992 full-time equivalent employees and 40 offices at March 31,
2013, compared to 951 employees and 39 offices one year ago. Deposits per
office increased 11.3 percent to $168 million during the past year.

The Company believes its pre-tax, pre-provision operating earnings is a key
metric for assessing the Company’s earning power, which it defines as net
operating revenue less operating non-interest expense. For the first quarter
2013, the Company’s performance was $35.1 million, down from $36.8 million in
the fourth quarter 2012 and up 10.7 percent from $31.7 million in the first
quarter 2012.^1

The provision for credit losses was $5.4 million for the first quarter 2013,
compared to $11.5 million for the fourth quarter 2012. The provision for the
first quarter of 2012 was $13.1 million. Net loan charge-offs in the first
quarter 2013 were $5.4 million, or 0.38 percent of average loans (annualized),
down from 0.99 percent of average loans (annualized) for the fourth quarter
2012, including 0.19 percent charge on its affinity credit card loans now held
for sale. Net charge-offs for the first quarter 2012 were $14.1 million or
1.18% of average loans (annualized).

Nonaccrual loans decreased $11.0 million to $93.7 million during the quarter.
Loans past due 90 days and still accruing interest totaled $1.6 million at
March 31, 2013, compared to $1.4 million at December 31, 2012 and $1.0 million
at March 31, 2012. Loans past due 30-89 days, still accruing interest totaled
$14.8 million at quarter end, down from $16.6 million at December 31, 2012 and
up from $12.0 million at March 31, 2012.

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 30 percent at March
31, 2013 from 37 percent at March 31, 2012.^1

Net loss on sales and valuation of repossessed assets (primarily other real
estate) was flat at $0.5 million for the first quarter from the fourth quarter
2012 and down from $2.7 million in the first quarter 2012. At March 31, 2013,
other repossessed assets were valued at $78 million compared to $77 million at
December 31, 2012 and $81 million one year ago. During the first quarter 2013,
the Company’s net sales proceeds received from other real estate dispositions
was 102 percent of carrying value.

Balance Sheet

Gross loans totaled $5.86 billion at March 31, 2013, an increase of $146
million from December 31, 2012 and an increase of $929 million from $4.93
billion at March 31, 2012. At March 31, 2013, the allowance for credit losses
was 1.63 percent of total loans, which has declined from 1.67 percent at
December 31, 2012 and 1.99 percent at March 31, 2012, as the Company’s asset
quality has improved.

Deposits totaled $6.73 billion at March 31, 2013, an increase of $280 million
from $6.46 billion at December 31, 2012 and an increase of $836 million from
$5.90 billion at March 31, 2012. Non-interest bearing deposits were unchanged
at $1.93 billion at March 31, 2013 compared to December 31, 2012 and increased
$173 million from $1.76 billion at March 31, 2012. Non-interest bearing
deposits comprised 28.7 percent of total deposits at March 31, 2013, compared
to 29.8 percent a year ago, while the proportion from savings and money market
increased to 42.0 percent from 37.7 percent during the same period. The
Company’s reliance on certificates of deposit fell to 20.2 percent at March
31, 2013. The Company’s loans were 86.9 percent of deposits at March 31, 2013
compared to 88.5 percent at December 31, 2012 and 83.5 percent at March 31,
2012.

Stockholders’ equity at March 31, 2013 increased to $781.3 million from $759.6
million at December 31, 2012. At March 31, 2013, tangible common equity was
7.5 percent of tangible assets^1 and total risk-based capital was 12.6 percent
of risk-weighted assets. The Company’s tangible book value per share^1 was
$7.04 at March 31, 2013, up 21.6 percent during the past year.

Total assets increased to $8.17 billion at March 31, 2013 from $7.62 billion
at December 31, 2012 and increased 17.9 percent from $6.93 billion at March
31, 2012.

Operating Unit Highlights

Western Alliance Bank (doing business as Alliance Bank of Arizona and First
Independent Bank) reported loan growth of $79 million during the first quarter
2013 and $406 million during the last 12 months to $2.12 billion. First
quarter loan growth came primarily from a rise in commercial and industrial
loans. Deposits increased $217 million in the first quarter and $488 million
during the last 12 months to $2.44 billion. Net income for Western Alliance
Bank was $8.5 million during the first quarter 2013 compared with net income
of $10.4 million during the fourth quarter of 2012 and net income of $9.8
million during the first quarter 2012.

The Torrey Pines Bank segment, which excludes the discontinued operations of
PartnersFirst, reported that loans decreased $78 million during the first
quarter 2013 and increased $97 million during the last 12 months to $1.43
billion. First quarter changes in loan balances were primarily attributable to
a decrease in commercial real estate loans. Deposits increased $19 million in
the first quarter 2013 and $168 million over the last 12 months to $1.70
billion. Net income for Torrey Pines Bank was $6.3 million during the first
quarter 2013 compared with net income of $5.2 million for the fourth quarter
of 2012 and net income of $5.8 million during the first quarter 2012.

Bank of Nevada, which was the recipient of net affiliate loan sales and
participatations, reported that loans increased by $118 million during the
first quarter of 2013 and increased $376 million during the last 12 months to
$2.30 billion at March 31, 2013. First quarter loan growth came primarily from
a rise in commercial real estate and commercial and industrial loans. Deposits
increased by $37 million in the first quarter of 2013 and $171 million over
the last twelve months to $2.61 billion. Net income for Bank of Nevada was
$10.7 million for the first quarter 2013, compared with net income of $7.6
million for the fourth quarter of 2012 and net income of $1.0 million during
the first quarter 2012.

The Other segment reported loans increased during the first quarter 2013 by
$27 million and increased $51 million during the last 12 months. The increase
in loans is primarily related to the purchases of certain loans from Bank of
Nevada.

Attached to this press release is summarized financial information for the
quarter ended March 31, 2013.

Subsequent Event

On April 10, 2013, the Company received final regulatory approval for its
acquisition of Centennial Bank in California. The transaction is scheduled to
close by month-end, and immediately thereafter Centennial Bank will be merged
into Western Alliance Bank. As of March 31, 2013, Centennial Bank had $529.3
million in assets, $340.7 million in deposits, and $103.5 million of tangible
equity before fair value adjustments.

Centennial Bank’s loan portfolio has a balance of $412.9 million offset by an
$11.5 million, or 2.8 percent allowance for loan and lease losses, for a net
carrying value of $401.4 million. Substantially all of the portfolio is
comprised of commercial real estate loans with a very small investment in
consumer loans. Geographically, approximately 80 percent of all loans are in
California, with the remainder originated in Arizona and Nevada.

Loans totaling $12.7 million will be retained by the seller. Total
consideration paid for 100% of Centennial Bank’s common shares is $57.5
million in an all cash transaction, which represents a $33 million discount to
tangible book value adjusted for loans to be retained by the seller. The
assets and liabilities of Centennial Bank will be recorded at fair value and
will be measured as of the closing date. The Company is presently undertaking
a valuation of the portfolio.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast
to discuss its first quarter 2013 financial results at 12:00 p.m. ET on
Friday, April 19, 2013. Participants may access the call by dialing
1-888-317-6003 and using passcode: 3497030 or via live audio webcast using the
website link: https://services.choruscall.com/links/wal130419.html. The
webcast is also available via the Company’s website at
www.westernalliancebancorp.com. Participants should log in at least 15 minutes
early to receive instructions. The call will be recorded and made available
for replay after 2:00 p.m. ET April 19^th through May 17^th at 9:00 a.m. ET by
dialing 1-877-344-7529 using the conference number 10027205.

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 15

                                                           
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
                                     At or for the Three Months
                                     Ended March 31,
                                     2013          2012            Change %
                                                                            
Selected Balance Sheet Data:
(dollars in millions)
Total assets                         $ 8,174.1     $ 6,925.3       18.0     %
Loans, net of deferred fees            5,855.3       4,926.2       18.9
Securities and money market            1,302.4       1,423.2       (8.5   )
investments
Securities purchased under             134.0         -             -
agreement to resell
Total deposits                         6,734.9       5,899.1       14.2
Borrowings                             358.5         307.8         16.5
Junior subordinated debt               36.7          37.3          (1.6   )
Stockholders' equity                   781.3         654.1         19.4
                                                                            
Selected Income Statement
Data:
(dollars in thousands)
Interest income                      $ 83,108      $ 77,437        7.3      %
Interest expense                      6,905        7,380        (6.4   )
Net interest income                    76,203        70,057        8.8
Provision for loan losses             5,439        13,081       (58.4  )
Net interest income after              70,764        56,976        24.2
provision for credit losses
Non-interest income                    3,899         5,884         (33.7  )
Non-interest expense                  46,929       46,897       0.1
Income from continuing                 27,734        15,963        73.7
operations before income taxes
Income tax expense                    6,808        4,441        53.3
Income from continuing                 20,926        11,522        81.6
operations
Income (loss) on discontinued         38           (222    )     117.1
operations, net
Net income                           $ 20,964      $ 11,300       85.5     %
Diluted net income per common
share from continuing                $ 0.24        $ 0.12    
operations
Diluted net loss per common
share from discontinued              $ 0.00        $ (0.00   )
operations, net of tax
Diluted net income per common        $ 0.24        $ 0.12         100.0    %
share
                                                                            
Common Share Data:
Diluted net income per common        $ 0.24        $ 0.12          100.0    %
share
Book value per common share          $ 7.35        $ 6.17          19.1     %
Tangible book value per share,       $ 7.04        $ 5.79          21.6     %
net of tax (1)
Average shares outstanding (in
thousands):
Basic                                  85,324        81,359        4.9
Diluted                                85,980        82,227        4.6
Common shares outstanding              87,079        83,145        4.7
                                                                            
(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
                                      Ended March 31,
                                      2013           2012         Change %
                                      (in thousands, except per share data)
Selected Performance Ratios:
Return on average assets (1)          1.08     %     0.67   %     61.2      %
Return on tangible common             13.91          9.50         46.4
equity (2)
Net interest margin (1)               4.36           4.53         (3.8   )
Net interest spread                   4.21           4.34         (3.0   )
Efficiency ratio - tax                54.58          56.96        (4.2   )
equivalent basis (2)
Loan to deposit ratio                 86.94          83.51        4.1
                                                                            
Capital Ratios:
Tangible equity (2)                   9.2      %     9.0    %     2.8       %
Tangible common equity (2)            7.5            6.9          8.1
Tier one common equity (2)            8.6            8.1          6.7
Tier 1 Leverage ratio (3)             10.1           9.8          3.1
Tier 1 Risk Based Capital (3)         11.3           11.3         0.0
Total Risk Based Capital (3)          12.6           12.5         0.8
                                                                            
Asset Quality Ratios:
Net charge-offs to average            0.38     %     1.18   %     (67.8  )  %
loans outstanding (1)
Nonaccrual loans to gross loans       1.60           2.10         (23.8  )
Nonaccrual loans and
repossessed assets to total           2.10           2.67         (21.3  )
assets
Loans past due 90 days and            0.03           0.02         50.0
still accruing to total loans
Allowance for credit losses to        1.63           1.99         (18.1  )
loans
Allowance for credit losses to        101.86         94.82        7.4
nonaccrual loans
                                                                            
(1) Annualized for the three month periods ended March 31, 2013 and 2012. See
table on page 12.
(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
                                                     March 31,
                                                     2013           2012
Interest income:                                     (dollars in thousands)
Loans                                                $ 74,725       $ 67,760
Investment securities                                  8,158          9,585
Federal funds sold and other                          225          92     
Total interest income                                 83,108       77,437 
Interest expense:
Deposits                                               3,732          4,762
Customer repurchase agreements                         35             63
Borrowings                                             2,672          2,071
Junior subordinated debt                              466          484    
Total interest expense                                6,905        7,380  
Net interest income                                    76,203         70,057
Provision for credit losses                           5,439        13,081 
Net interest income after provision for credit        70,764       56,976 
losses
Non-interest income
Unrealized gains (losses) on                           (471   )       (333   )
assets/liabilities measured at fair value, net
Gains on sales of investment securities, net           147            361
Service charges                                        2,534          2,285
Bank owned life insurance                              1,036          1,123
Amortization of affordable housing investments         (900   )       -
Other                                                 1,553        2,448  
                                                      3,899        5,884  
Non-interest expenses:
Salaries and employee benefits                         26,574         26,664
Occupancy                                              4,846          4,722
Net loss on sales and valuations of                    519            2,651
repossessed assets
Insurance                                              2,370          2,050
Loan and repossessed asset expenses                    1,596          1,684
Legal, professional and director's fees                2,784          1,572
Marketing                                              1,764          1,371
Data Processing                                        1,865          995
Intangible amortization                                597            890
Customer service                                       643            591
Merger/restructure expense                             195            -
Other                                                 3,176        3,707  
                                                      46,929       46,897 
Income from continuing operations before               27,734         15,963
income taxes
Income tax expense                                    6,808        4,441  
Income from continuing operations                      20,926         11,522
Income (loss) from discontinued operations net        38           (222   )
of tax benefit
Net income                                             20,964         11,300
Preferred stock dividends                             353          1,763  
Net income available to common stockholders          $ 20,611      $ 9,537  
Diluted net income per share                         $ 0.24        $ 0.12   
                                                                    
                                                                    

                                                                         
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited                Three Months Ended
                         March 31,      December       September      June 30,       March 31,
                                        31,            30,
                         2013           2012           2012           2012           2012
Interest income:         (in thousands, except per share data)
Loans                    $ 74,725       $ 75,303       $ 69,580       $ 68,342       $ 67,760
Investment                 8,158          8,794          9,034          9,389          9,585
securities
Federal funds sold        225          246          55           115          92     
and other
Total interest            83,108       84,343       78,669       77,846       77,437 
income
Interest expense:
Deposits                   3,732          3,890          3,974          4,168          4,762
Borrowings and
customer                   2,707          2,528          2,262          2,386          2,134
repurchase
agreements
Junior                    466          470          487          487          484    
subordinated debt
Total interest            6,905        6,888        6,723        7,041        7,380  
expense
Net interest               76,203         77,455         71,946         70,805         70,057
income
Provision for             5,439        11,501       8,932        13,330       13,081 
credit losses
Net interest
income after              70,764       65,954       63,014       57,475       56,976 
provision for
credit losses
Non-interest
income
Mark-to-market
gains (losses),            (471   )       (48    )       470            564            (333   )
net
Gains on sales of
investment                 147            1,447          1,031          1,110          361
securities, net
Service charges            2,534          2,438          2,412          2,317          2,285
Bank owned life            1,036          1,080          1,116          1,120          1,123
insurance
Amortization of
affordable housing         (900   )       (1,069 )       (651   )       (59    )       -
investments
Bargain purchase
gain from                  -              17,562         -              -              -
acquisition
Other                     1,553        3,053        2,604        2,345        2,448  
                          3,899        24,463       6,982        7,397        5,884  
Non-interest
expenses:
Salaries and               26,574         26,885         25,500         25,995         26,664
employee benefits
Occupancy                  4,846          4,769          4,655          4,669          4,722
Insurance                  2,370          2,188          2,121          2,152          2,050
Loan and
repossessed asset          1,596          2,102          1,236          1,653          1,684
expenses
Net loss on sales
and valuations of          519            529            126            901            2,651
repossessed assets
Legal,
professional and           2,784          1,849          2,291          2,517          1,572
director's fees
Marketing                  1,764          1,546          1,231          1,459          1,371
Intangible                 597            596            880            890            890
amortization
Customer service           643            678            653            682            591
Data Processing            1,865          2,071          1,390          1,293          995
Merger/restructure         195            2,706          113            -              -
expense
Goodwill and
intangible                 -              -              3,435          -              -
impairment
Other                     3,176        3,070        3,912        3,220        3,707  
                          46,929       48,989       47,543       45,431       46,897 
Income from
continuing                 27,734         41,428         22,453         19,441         15,963
operations before
income taxes
Income tax expense        6,808        7,509        6,752        5,259        4,441  
Income from
continuing               $ 20,926       $ 33,919       $ 15,701       $ 14,182       $ 11,522
operations
Income (loss) from
discontinued              38           (1,804 )      (243   )      (221   )      (222   )
operations, net of
tax
Net income               $ 20,964      $ 32,115      $ 15,458      $ 13,961      $ 11,300 
Preferred stock           353          353          352          1,325        1,763  
dividends
Net Income
available to             $ 20,611      $ 31,762     $ 15,106     $ 12,636     $ 9,537  
common
stockholders
Diluted net income       $ 0.24        $ 0.37        $ 0.18        $ 0.15        $ 0.12   
per share
                                                                                     
                                                                                     

                                                                           
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
                 March 31,       December        September       June 30,        March 31,
                                    31,             30,
                    2013            2012            2012            2012            2012
Assets:             (in millions)
Cash and due        $ 422.3         $ 204.6         $ 168.1         $ 178.9         $ 179.8
from banks
Securities
purchased
under                134.0         -             139.8         -             -       
agreement to
resell
Cash and cash         556.3           204.6           307.9           178.9           179.8
equivalents
                                                                                    
Securities
and money             1,302.4         1,236.6         1,338.9         1,401.5         1,423.2
market
investments
Loans held            27.9            31.1            -               -               -
for sale
Loans held
for
investment
Commercial            2,084.9         1,947.8         1,756.0         1,573.6         1,436.5
Commercial
real estate -         1,414.3         1,396.8         1,331.3         1,310.3         1,289.9
owner
occupied
Construction
and land              381.1           394.3           379.8           360.6           347.7
development
Commercial
real estate -         1,538.4         1,505.6         1,407.1         1,440.4         1,365.6
non-owner
occupied
Residential           388.7           407.9           408.4           430.4           434.5
real estate
Consumer              26.0            31.8            56.6            55.8            58.7
Deferred             (6.0    )      (6.0    )      (6.3    )      (6.3    )      (6.7    )
fees, net
                      5,827.4         5,678.2         5,332.9         5,164.8         4,926.2
Allowance for        (95.5   )      (95.4   )      (97.4   )      (97.5   )      (98.1   )
credit losses
Loans, net           5,731.9       5,582.8       5,235.5       5,067.3       4,828.1 
                                                                                    
Premises and
equipment,            107.1           107.9           106.9           106.9           105.1
net
Other
repossessed           77.9            77.2            78.2            77.0            81.4
assets
Bank owned
life                  139.4           138.3           137.3           136.1           135.0
insurance
Goodwill and
other                 29.2            29.8            29.0            34.0            34.8
intangibles
Other assets         202.0         214.3         169.9         161.9         137.9   
Total assets        $ 8,174.1      $ 7,622.6      $ 7,403.6      $ 7,163.6      $ 6,925.3 
Liabilities
and
Stockholders'
Equity:
Liabilities:
Deposits:
Non-interest
bearing             $ 1,930.4       $ 1,933.2       $ 1,840.8       $ 1,842.1       $ 1,757.7
demand
deposits
Interest
bearing
Demand                619.7           582.3           514.7           540.6           527.2
Savings and           2,826.7         2,573.5         2,541.2         2,438.4         2,224.1
money market
Time                 1,358.1       1,366.2       1,265.3       1,180.3       1,390.1 
certificates
Total                 6,734.9         6,455.2         6,162.0         6,001.4         5,899.1
deposits
Customer
repurchase           64.7          79.0          73.1          86.9          114.4   
agreements
Total
customer              6,799.6         6,534.2         6,235.1         6,088.3         6,013.5
funds
Securities            132.6           -               138.3           -               -
sold short
Borrowings            293.8           193.7           223.6           303.5           193.4
Junior
subordinated          36.7            36.2            36.2            36.7            37.3
debt
Accrued
interest
payable and          130.1         98.9          72.4          63.0          27.0    
other
liabilities
Total                7,392.8       6,863.0       6,705.6       6,491.5       6,271.2 
liabilities
Stockholders'
Equity
Common stock
and
additional            786.9           784.9           751.1           748.1           746.2
paid-in
capital
Preferred             141.0           141.0           141.0           141.0           141.0
Stock
Accumulated           (153.8  )       (174.5  )       (206.2  )       (221.3  )       (234.0  )
deficit
Accumulated
other                7.2           8.2           12.1          4.3           0.9     
comprehensive
income
Total
stockholders'        781.3         759.6         698.0         672.1         654.1   
equity
Total
liabilities
and                 $ 8,174.1      $ 7,622.6      $ 7,403.6      $ 7,163.6      $ 6,925.3 
stockholders'
equity
                                                                                    
                                                                                    

                                                                        
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
                  Three Months Ended
                   March 31,       December        September       June 30,        March 31,
                                   31,             30,
                   2013            2012            2012            2012            2012
                                                                                   
                   (in thousands)
Balance,
beginning of       $ 95,427        $ 97,410        $ 97,512        $ 98,122        $ 99,170
period
Provision
for credit           5,439           11,501          8,932           13,330          13,081
losses
Recoveries
of loans
previously
charged-off:
Construction
and land             701             2,033           567             217             86
development
Commercial           942             397             633             561             1,703
real estate
Residential          569             313             153             274             338
real estate
Commercial
and                  441             372             501             1,417           777
industrial
Consumer            14            63            38            214           42      
Total                2,667           3,178           1,892           2,683           2,946
recoveries
Loans
charged-off:
Construction
and land             614             405             2,315           3,185           5,087
development
Commercial           2,887           7,143           1,470           5,641           4,912
real estate
Residential          2,493           1,307           2,242           2,094           1,420
real estate
Commercial
and                  1,770           4,654           4,100           4,933           3,654
industrial
Consumer            275           3,153         799           770           2,002   
Total loans          8,039           16,662          10,926          16,623          17,075
charged-off
Net loans           5,372         13,484        9,034         13,940        14,129  
charged-off
Balance, end       $ 95,494       $ 95,427       $ 97,410       $ 97,512       $ 98,122  
of period
                                                                                   
Net
charge-offs
(annualized)         0.38    %       0.99    %       0.70    %       1.11    %       1.18    %
to average
loans
outstanding
Allowance
for credit           1.63            1.67            1.83            1.89            1.99
losses to
gross loans
Nonaccrual         $ 93,748        $ 104,716       $ 121,238       $ 104,324       $ 103,486
loans
Repossessed          77,921          77,247          78,234          76,994          81,445
assets
Loans past
due 90 days,         1,640           1,388           1,710           795             1,011
still
accruing
Loans past
due 30 to 89         14,795          16,565          10,181          13,848          12,040
days, still
accruing
Classified
loans on             97,351          112,637         116,841         135,913         98,170
accrual
Watch loans          125,660         103,550         97,681          91,924          132,829
                                                                                   
                                                                                   

                                                                                          
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                         Three Months Ended March 31,
                          2013                                         2012
                          Average                        Average       Average                        Average
                          Balance       Interest       Yield/        Balance         Interest       Yield/
                                                         Cost                                         Cost
Interest earning          ($ in           ($ in                        ($ in           ($ in
assets                    millions)       thousands)                   millions)       thousands)
Investment                $ 1,283.4       $  8,158       3.21  %       $ 1,423.3       $  9,585       3.13  %
securities (1)
Federal funds sold          -                -                           0.2              -           0.00  %
and other
Loans (1)                   5,610.4          74,725      5.42  %         4,782.8          67,760      5.68  %
Short term                 404.8        225       0.22  %        130.1        92        0.28  %
investments
Total interest              7,298.6          83,108      4.74  %         6,336.4          77,437      5.00  %
earning assets
Non-interest
earning assets
Cash and due from           126.4                                        114.8
banks
Allowance for               (96.9   )                                    (100.7  )
credit losses
Bank owned life             138.7                                        134.3
insurance
Other assets               421.9                                      358.0   
Total assets              $ 7,888.7                                   $ 6,842.8 
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest-bearing
transaction               $ 608.7         $  301         0.20  %       $ 504.3         $  315         0.25  %
accounts
Savings and money           2,620.9          1,911       0.29  %         2,233.6          2,168       0.39  %
market
Time certificates          1,449.4      1,520     0.42  %        1,424.3      2,279     0.64  %
of deposit
Total
interest-bearing            4,679.0          3,732       0.32  %         4,162.2          4,762       0.46  %
deposits
Borrowings                  449.3            2,707       2.41  %         294.9            2,134       2.89  %
Junior subordinated        36.2         466       5.15  %        37.0         484       5.23  %
debt
Total
interest-bearing            5,164.5          6,905       0.53  %         4,494.1          7,380       0.66  %
liabilities
Noninterest-bearing
liabilities
Noninterest-bearing         1,855.1                                      1,645.7
demand deposits
Other liabilities           90.7                                         45.6
Stockholders’              778.4                                      657.4   
equity
Total liabilities
and stockholders'         $ 7,888.7                                   $ 6,842.8 
equity
Net interest income                       $  76,203      4.36  %                       $  70,057      4.53  %
and margin
Net interest spread                                      4.21  %                                      4.34  %
                                                                                                      

(1) Yields on loans and securities have been adjusted to a tax equivalent
basis. The taxable-equivalent adjustment was $3,382 and $1,761 for the first
quarter ended 2013 and 2012, respectively.



                                                                                        
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 March 31,        (dollars in millions)
2013
Assets              $ 3,277.5       $ 2,738.9       $ 1,956.4       $ 1,065.4       $ (864.1 )     $ 8,174.1
Held for sale         -               -               27.9            -               -              27.9
loans
Gross loans
and deferred          2,301.3         2,116.0         1,402.0         50.9            (42.8  )       5,827.4
fees, net
Less:
Allowance for        (55.7   )    (22.4   )    (14.8   )    (2.6    )    -          (95.5   )
credit losses
Net loans            2,245.6     2,093.6     1,387.2     48.3        (42.8  )    5,731.9 
Goodwill              23.2            -               -               -               -              23.2
Deposits              2,606.5         2,441.2         1,698.5         -               (11.3  )       6,734.9
FHLB advances         200.0           -               -               -               -              200.0
Stockholders'         387.8           228.8           172.4           799.0           (806.7 )       781.3
equity
                                                                                                   
No. of                12              16              12              -               -              40
branches
No. of FTE            390             266             235             101             -              992
                                                                                                   
Three Months
Ended March         (in thousands)
31, 2013:
Net interest        $ 29,254        $ 26,635        $ 20,777        $ (463    )     $ -            $ 76,203
income
Provision for        405         2,635       92          2,307       -          5,439   
credit losses
Net interest
income (loss)
after                 28,849          24,000          20,685          (2,770  )       -              70,764
provision for
credit losses
Non-interest          3,337           1,404           598             1,705           (3,145 )       3,899
income
Non-interest         (17,891 )    (13,068 )    (11,969 )    (7,146  )    3,145      (46,929 )
expense
Income (loss)
from
continuing            14,295          12,336          9,314           (8,211  )       -              27,734
operations
before income
taxes
Income tax
expense              3,593       3,842       2,999       (3,626  )    -          6,808   
(benefit)
Income (loss)
from                  10,702          8,494           6,315           (4,585  )       -              20,926
continuing
operations
Income (loss)
from
discontinued         -           -           -           38          -          38      
operations,
net
Net income          $ 10,702     $ 8,494      $ 6,315      $ (4,547  )   $ -         $ 20,964  
(loss)
                                                                                                   
* Excludes discontinued operations
                                                                                                   
                                                                                                   

                                                                                       
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 March 31,        (dollars in millions)
2012
Assets              $ 2,890.9       $ 2,271.1       $ 1,785.1       $ 779.3        $ (801.1 )     $ 6,925.3
Gross loans
and deferred          1,925.7         1,710.0         1,333.3         -              (42.8  )       4,926.2
fees, net
Less:
Allowance for        (62.6   )    (19.5   )    (16.0   )    -          -          (98.1   )
credit losses
Net loans            1,863.1     1,690.5     1,317.3     -          (42.8  )    4,828.1 
Goodwill              23.2            -               -               2.7            -              25.9
Deposits              2,435.2         1,953.7         1,530.6         -              (20.4  )       5,899.1
FHLB advances         70.0            20.0            60.0            -              (30.0  )       120.0
and other
Stockholders'         324.3           202.0           157.7           661.5          (691.4 )       654.1
equity
                                                                                                  
No. of                11              16              12              -              -              39
branches
No. of FTE            394             237             223             97             -              951
                                                                                                  
Three Months
Ended March         (in thousands)
31, 2012:
Net interest        $ 27,839        $ 23,055        $ 21,236        $ (2,073 )     $ -            $ 70,057
income
Provision for        13,481      (1,997  )    1,597       -          -          13,081  
credit losses
Net interest
income (loss)
after                 14,358          25,052          19,639          (2,073 )       -              56,976
provision for
credit losses
Non-interest          3,583           1,853           1,178           1,991          (2,721 )       5,884
income
Non-interest         (18,831 )    (11,918 )    (11,072 )    (7,797 )    2,721      (46,897 )
expense
Income (loss)
from
continuing            (890    )       14,987          9,745           (7,879 )       -              15,963
operations
before income
taxes
Income tax
expense              (1,851  )    5,172       3,958       (2,838 )    -          4,441   
(benefit)
Income (loss)
from
continuing
operations            961             9,815           5,787           (5,041 )       -              11,522
Loss from
discontinued         -           -           -           (222   )    -          (222    )
operations,
net
Net income          $ 961        $ 9,815      $ 5,787      $ (5,263 )   $ -         $ 11,300  
(loss)
                                                                                                  
* Excludes discontinued operations
                                                                                                  
                                                                                                  

                                                                                             
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited)
                                 March 31,         December 31,      September 30,     June 30,          March 31,
                                 2013              2012              2012              2012              2012
                                 (dollars in thousands)
Total stockholder's equity       $ 781,294         $ 759,616         $ 698,011         $ 672,120         $ 654,045
Less:
Goodwill and intangible           29,166          29,763          28,989          33,953          34,843    
assets
Total tangible                     752,128           729,853           669,022           638,167           619,202
stockholders' equity
Less:
Preferred stock                   141,000         141,000         141,000         141,000         141,000   
Total tangible common              611,128           588,853           528,022           497,167           478,202
equity
Add:
Deferred tax                      2,080           2,289           2,033           2,896           3,209     
Total tangible common            $ 613,208        $ 591,142        $ 530,055        $ 500,063        $ 481,411   
equity, net of tax
Total assets                     $ 8,174,103       $ 7,622,637       $ 7,403,603       $ 7,163,572       $ 6,925,292
Less:
Goodwill and intangible           29,166          29,763          28,989          33,953          34,843    
assets
Tangible assets                    8,144,937         7,592,874         7,374,614         7,129,619         6,890,449
Add:
Deferred tax                      2,080           2,289           2,033           2,896           3,209     
Total tangible assets, net       $ 8,147,017      $ 7,595,163      $ 7,376,647      $ 7,132,515      $ 6,893,658 
of tax
Tangible equity ratio (1)          9.2       %       9.6       %       9.1       %       8.9       %       9.0       %
Tangible common equity             7.5       %       7.8       %       7.2       %       7.0       %       6.9       %
ratio (2)
Common shares outstanding          87,079            86,465            83,455            83,157            83,145
Tangible book value per          $ 7.04            $ 6.84            $ 6.35            $ 6.01            $ 5.79
share, net of tax (3)
                                                                                                         
                                 Three Months Ended
                                 March 31,         December 31,      September 30,     June 30,          March 31,
                                 2013              2012              2012              2012              2012
                                 (in thousands)
Total non-interest income        $ 3,899           $ 24,463          $ 6,982           $ 7,397           $ 5,884
Less:
Mark-to-market (losses)            (471      )       (48       )       470               564               (333      )
gains, net
Gain on sale of
subsidiary/non-controlling         -                 116               776               -                 -
interest
Bargain purchase gain from         -                 17,562            -                 -                 -
acquisition
Legal settlements                  38                879               -                 -                 -
Mutual fund gains                  -                 483               -                 -                 -
Loss on LIHTC investments          (900      )       (1,069    )       (651      )       (59       )       -
Gains on sales of                 147             1,447           1,031           1,110           361       
investment securities, net
Total operating                    5,085             5,093             5,356             5,782             5,856
non-interest income
Add: net interest income          76,203          77,455          71,946          70,805          70,057    
Net operating revenue (4)        $ 81,288         $ 82,548         $ 77,302         $ 76,587         $ 75,913    
                                                                                                         
Total non-interest expense       $ 46,929          $ 48,989          $ 47,543          $ 45,431          $ 46,897
Less:
Net loss (gain) on
sales/valuations of                519               529               126               901               2,651
repossessed assets
Merger/restructure expense         195               2,706             113               -                 -
Goodwill impairment               -               -               3,435           -               -         
Total operating                  $ 46,215         $ 45,754         $ 43,869         $ 44,530         $ 44,246    
non-interest expense (4)
                                                                                                         
Net operating revenue            $ 81,288          $ 82,548          $ 77,302          $ 76,587          $ 75,913
Less:
Operating non-interest            46,215          45,754          43,869          44,530          44,246    
expense
Pre-tax, pre-provision           $ 35,073         $ 36,794         $ 33,433         $ 32,057         $ 31,667    
operating earnings (5)
                                                                                                         
                                                                                                         

                                                                            
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited)
                                                                                        
                      Three Months Ended
                      March 31,         December 31,      September      June 30,       March 31,
                                                          30,
                      2013              2012              2012           2012           2012
                      (in thousands)
Total operating
non-interest          $ 46,215         $ 45,754         $ 43,869      $ 44,530      $ 44,246 
expense
Divided by:
Total net             $ 76,203          $ 77,455          $ 71,946       $ 70,805       $ 70,057
interest income
Add:
Tax equivalent
interest                3,382             3,012             2,655          2,310          1,761
adjustment
Operating
non-interest           5,085           5,093           5,356        5,782        5,856  
income
                      $ 84,670         $ 85,560         $ 79,957      $ 78,897      $ 77,674 
Efficiency
ratio - tax             54.6      %       53.5      %       54.9   %       56.4   %       57.0   %
equivalent
basis (6)
                                                                                        
                      Three Months Ended
                      March 31,         March 31,
                      2013              2012
                      (in thousands)
Stockholder's         $ 781,294         $ 654,045
equity
Less:
Accumulated
other                   7,205             868
comprehensive
income
Non-qualifying
goodwill and            27,138            32,331
intangibles
Other
non-qualifying          2                 3
assets
Disallowed
unrealized
losses on               -                 -
equity
securities
Add:
Qualifying
trust preferred         45,124            45,506
securities
Tier 1 capital
(regulatory)            792,073           666,349
(7) (10)
Less:
Qualifying
non-controlling         -                 343
interests
Qualifying
trust preferred         45,124            45,506
securities
Preferred stock        141,000         141,000   
Estimated Tier
1 common equity       $ 605,949         $ 479,500
(8) (10)
Divided by:
Estimated
risk-weighted
assets                $ 7,011,489      $ 5,902,377 
(regulatory (8)
(10)
Tier 1 common
equity ratio            8.6       %       8.1       %
(8) (10)
                                                                                        
                      March 31,         March 31,
                      2013              2012
                      (in thousands)
Classified            $ 269,434         $ 284,140
assets
Divide:
Tier 1 capital
(regulatory)            792,073           666,349
(7) (10)
Plus: Allowance
for credit             95,494          98,122    
losses
Total Tier 1
capital plus          $ 887,567        $ 764,471   
allowance for
credit losses
Classified
assets to Tier
1 capital plus          30        %       37        %
allowance (9)
(10)
                                                                                        

(1)   We believe this non-GAAP ratio provides a critical metric with which to
       analyze and evaluate financial condition and capital strength.
(2)    We believe this non-GAAP ratio provides a critical metric with which to
       analyze and evaluate financial condition and capital strength.
       We believe this non-GAAP ratio improves the comparability to other
(3)    institutions that have not engaged in acquisitions that resulted in
       recorded goodwill and other intangibles.
(4)    We believe these non-GAAP measurements provide a useful indication of
       the cash generating capacity of the Company.
       We believe this non-GAAP measurement is a key indicator of the earnings
(5)    power of the Company, which is otherwise obscured by the asset quality
       issues.
(6)    We believe this non-GAAP ratio provides a useful metric to measure the
       operating efficiency of the Company.
       Under the guidelines of the Federal Reserve and the FDIC in effect,
       Tier 1 capital consisted of common stock, retained earnings,
(7)    non-cumulative perpetual preferred stock, trust preferred securities up
       to a certain limit, and minority interests in certain subsidiaries,
       less most other intangible assets.
       Tier 1 common equity is often expressed as a percentage of
       risk-weighted assets. Under the risk-based capital framework, a bank's
       balance sheet assets and credit equivalent amounts of off-balance sheet
       items, are assigned to one of four broad risk categories. The
       aggregated dollar amount in each category is then multiplied by the
       risk weighting assigned to that category. The resulting weighted values
(8)    from each of the four categories are added together and this sum is the
       risk-weighted assets total that, as adjusted, comprises the denominator
       (risk-weighted assets) to determine the Tier 1 capital ratio.
       Adjustments are made to Tier 1 capital to arrive at Tier 1 common
       equity. Tier 1 common equity is divided by the risk-weighted assets to
       determine the Tier 1 common equity ratio. We believe this non-GAAP
       ratio with which to analyze and evaluate financial condition and
       capital strength.
(9)    We believe this non-GAAP ratio provides a critical regulatory metric in
       which to analyze asset quality.
(10)   Preliminary until Call Reports are filed.

Contact:

Western Alliance Bancorporation
Dale Gibbons, 602-952-5476

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