Western Alliance Reports Fourth Quarter 2013 Net Income of $31.4 Million, or $0.36 Per Share; Full Year Net Income of $114.5

  Western Alliance Reports Fourth Quarter 2013 Net Income of $31.4 Million, or
  $0.36 Per Share; Full Year Net Income of $114.5 Million, or $1.31 Per Share

Business Wire

PHOENIX -- January 23, 2014

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

Fourth Quarter 2013 Highlights:

  *Net income of $31.4 million, compared to $28.2 million for the third
    quarter 2013 and $32.1 million for the fourth quarter 2012
  *Net income of $29.8 million for the fourth quarter 2013, excluding the
    following, net of tax effect: $3.7 million tax benefit related to the
    Western Liberty acquisition, $1.3 million net gain on other repossessed
    assets, $1.3 million net loss from debt valuation adjustments and
    securities gains, $1.2 million merger/restructure expenses, and $0.9
    million net loss on extinguishment of debt
  *Earnings per share of $0.36, compared to $0.32 per share in the third
    quarter 2013 and $0.37 per share in the fourth quarter 2012
  *Earnings per share of $0.34 for the fourth quarter 2013, excluding the
    following, net of tax effect: $0.04 tax benefit related to the Western
    Liberty acquisition, $0.02 net gain on other repossessed assets, $0.02 net
    loss from debt valuation adjustments and securities gains, $0.01
    merger/restructure expenses, and $0.01 net loss on extinguishment of debt
  *Pre-tax, pre-provision operating earnings of $43.8 million, up 4.2% from
    $42.1 million in third quarter 2013 and up 19.1% from $36.8 million in
    fourth quarter 2012^1
  *Net interest margin of 4.44%, compared to 4.41% in the third quarter 2013
    and 4.55% in the fourth quarter 2012
  *Total loans of $6.80 billion, up $285 million from September 30, 2013
  *Total deposits of $7.84 billion, up $563 million from September 30, 2013
  *Nonperforming assets (nonaccrual loans and repossessed assets) decreased
    to 1.5% of total assets from 1.7% in the third quarter 2013 and from 2.4%
    in the fourth quarter 2012
  *Net loan charge-offs (annualized) to average loans outstanding of 0.13%,
    compared to net loan recoveries to average loans of 0.10% in the third
    quarter 2013 and net loan charge-offs to average loans of 0.99% in the
    fourth quarter 2012
  *Tier I Leverage capital of 9.8% and Total Risk-Based Capital ratio of
    12.6%, compared to 10.1% and 12.6%, respectively, at December 31, 2013
  *Total equity of $855 million, up $96 million from December 31, 2012

Full Year 2013 Highlights:

  *Net income of $114.5 million, compared to $72.8 million for 2012
  *Return on assets and return on tangible common equity of 1.35% and 16.67%,
    compared to 1.01% and 12.37%, respectively, in 2012
  *Earnings per share of $1.31, compared to $0.83 per share for 2012
  *Net interest margin of 4.39%, compared to 4.49% in 2012
  *Total loan and deposit growth of $1.09 billion and $1.38 billion,
    respectively, from December 31, 2012

Financial Performance

“2013 was an outstanding year for Western Alliance, with exceptional balance
sheet growth, record revenue and earnings, and low credit losses,” said Robert
Sarver, Chairman and Chief Executive Officer of Western Alliance
Bancorporation. “Our team of professionals from the front line to the back
office have driven our strong performance as we continue to win business.
During the fourth quarter, our loan and deposit growth accelerated without
sacrificing quality and margin.”

Sarver continued, “On December 31, 2013, we consolidated our three affiliate
banks under one charter, which will enable us to improve efficiency and risk
identification and management, while maintaining our high level of customer
service and responsiveness.”

Income Statement

Net interest income was $90.0 million in the fourth quarter 2013, an increase
of $5.4 million, or 6.4%, from $84.6 million in the third quarter of 2013 and
an increase of $12.5 million, or 16.2%, compared to the fourth quarter 2012.
The Company’s net interest margin increased in the fourth quarter 2013 to
4.44%, compared to 4.41% in the third quarter 2013 and declined from 4.55% in
the fourth quarter 2012.

Operating non-interest income was $5.2 million for the fourth quarter 2013,
compared to $5.8 million in the third quarter of 2013 and $5.1 million for the
fourth quarter of 2012.^1

Net operating revenue was $95.2 million for the fourth quarter 2013, an
increase of 5.3% compared to $90.4 million for the third quarter of 2013 and
an increase of 15.3% compared to $82.5 million for the fourth quarter 2012.^1

Operating non-interest expense was $51.4 million for the fourth quarter 2013,
compared to $48.3 million for the third quarter of 2013 and $45.8 million for
the fourth quarter of 2012.^1 The Company’s operating efficiency ratio^1 on a
tax equivalent basis was 51.9% for the fourth quarter 2013, compared to 51.6%
for the third quarter 2013 and an improvement from 53.5% for the fourth
quarter 2012.

Income tax expense decreased as a result of increased deductibility of credit
losses related to the Western Liberty acquisition.

The Company had 1,051 full-time equivalent employees and 40 offices at
December 31, 2013, compared to 982 employees and 40 offices at December 31,
2012.

The Company views its pre-tax, pre-provision operating earnings as a key
metric for assessing the Company’s earning power, which it defines as net
operating revenue less operating non-interest expense. For the fourth quarter
2013, the Company’s pre-tax, pre-provision operating earnings were $43.8
million, up from $42.1 million in the third quarter 2013 and up 19.1% from
$36.8 million in the fourth quarter 2012.^1

The provision for credit losses was $4.3 million for the fourth quarter 2013,
compared to zero in the third quarter 2013 and $11.5 million for the fourth
quarter 2012. Net loan charge-offs in the fourth quarter 2013 were $2.1
million, or 0.13% of average loans (annualized), compared to net loan
recoveries to average loans of 0.10% for the third quarter 2013. Net
charge-offs for the fourth quarter 2012 were $13.5 million, or 0.99% of
average loans (annualized).

Nonaccrual loans decreased $1.0 million to $75.7 million during the quarter.
Loans past due 90 days and still accruing interest totaled $1.5 million at
December 31, 2013, compared to $5.5 million at September 30, 2013 and $1.4
million at December 31, 2012. Loans past due 30-89 days, still accruing
interest totaled $13.4 million at quarter end, up from $8.7 million at
September 30, 2013 and down from $16.6 million at December 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 27% at December 31,
2013 from 34% at December 31, 2012.^1

Net gain on repossessed assets (primarily other real estate) was $2.2 million
for the fourth quarter 2013, compared to a net loss of $0.4 million in the
third quarter 2013 and a net loss of $0.5 million in the fourth quarter 2012.
At December 31, 2013, other repossessed assets totaled $67 million, compared
to $77 million at September 30, 2013 and December 31, 2012.

Balance Sheet

Gross loans totaled $6.80 billion at December31, 2013, an increase of $285
million from September 30, 2013 and an increase of $1.09 billion from $5.71
billion at December 31, 2012. At December 31, 2013, the allowance for credit
losses was 1.47% of total loans, compared to 1.50% at September 30, 2013 and
1.67% at December 31, 2012, reflecting an improvement in the Company’s asset
profile.

Deposits totaled $7.84 billion at December 31, 2013, an increase of $563
million from $7.28 billion at September 30, 2013 and an increase of $1.38
billion from $6.46 billion at December 31, 2012. Non-interest bearing deposits
were $2.20 billion at December 31, 2013, compared to $1.97 billion at
September 30, 2013 and $1.93 billion at December 31, 2012. Non-interest
bearing deposits comprised 28.1% of total deposits at December 31, 2013,
compared to 29.9% at December 31, 2012, while the proportion of savings and
money market accounts increased to 42.2% from 39.9% during the same period.
Certificates of deposit as a percent of total deposits were 20.6% at December
31, 2013, compared to 21.2% at December 31, 2012. The Company’s ratio of loans
to deposits was 86.8% at December 31, 2013, compared to 89.6% at September 30,
2013 and 88.5% at December 31, 2012.

Stockholders’ equity at December 31, 2013 increased to $855 million from $826
million at September 30, 2013. At December 31, 2013, tangible common equity
was 7.4% of tangible assets^1 and total risk-based capital was 12.6% of
risk-weighted assets. The Company’s tangible book value per share^1 was $7.89
at December 31, 2013, up 15.4% during the past year.

Total assets increased 4.3% to $9.31 billion at December 31, 2013 from $8.92
billion at September 30, 2013, and 22.1% from $7.62 billion at December 31,
2012.

Segment Highlights

Western Alliance Bank reported loan growth of $245 million during the fourth
quarter 2013 and $797 million during the last 12 months to $2.83 billion.
Fourth quarter loan growth came primarily from commercial and industrial and
construction and land development loans. Deposits increased $233 million in
the fourth quarter and $840 million during the last 12 months to $3.06
billion. Net income for Western Alliance Bank was $12.7 million during the
fourth quarter 2013, compared with net income of $9.8 million during the third
quarter of 2013 and $10.4 million during the fourth quarter 2012.

Bank of Nevada reported that loans decreased by $102 million during the fourth
quarter of 2013 and increased $102 million during the last 12 months to $2.29
billion at December 31, 2013. The decline in fourth quarter loans came
primarily from a decrease in commercial real estate and commercial and
industrial loans. Deposits increased by $150 million in the fourth quarter of
2013 and increased $194 million over the last twelve months to $2.76 billion.
Net income for Bank of Nevada was $13.0 million for the fourth quarter 2013,
compared with net income of $16.3 million for the third quarter of 2013 and
$7.6 million during the fourth quarter 2012.

Torrey Pines Bank, exclusive of the discontinued operations of PartnersFirst,
reported that loans increased $100 million during the fourth quarter 2013 and
increased $116 million during the last 12 months to $1.62 billion. The fourth
quarter increase in the loan balances were primarily attributable to an
increase in commercial real estate and commercial and industrial loans.
Deposits increased $177 million in the fourth quarter 2013 and $342 million
over the last 12 months to $2.02 billion. Net income for Torrey Pines Bank was
$6.0 million during the fourth quarter 2013, compared with net income of $4.6
million for the third quarter of 2013 and $5.2 million during the fourth
quarter 2012.

On December 31, 2013, the Company consolidated its three bank subsidiaries
under one charter, Western Alliance Bank. Prior to the consolidation, Alliance
Bank of Arizona and First Independent Bank operated as divisions of Western
Alliance Bank. In 2014, Bank of Nevada and Torrey Pines Bank also will operate
as divisions of Western Alliance Bank.

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

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast
to discuss its fourth quarter 2013 financial results at 12:00 p.m. ET on
Friday, January 24, 2014. Participants may access the call by dialing
1-888-317-6003 and using passcode: 1025905 or via live audio webcast using the
website link: http://services.choruscall.com/links/wal140124.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 24th through February 10th at 9:00 a.m. ET by dialing 1-877-344-7529
passcode: 10038670.

About Western Alliance Bancorporation

Western Alliance Bancorporation (NYSE: WAL) is a leading bank holding company
providing comprehensive business banking and related financial services
through its wholly-owned banking subsidiary, Western Alliance Bank (the
"Bank"). With local teams of experienced bankers, the Bank provides a superior
level of capabilities, products and service, to assist the growth of local
businesses and the quality of life in the markets it serves. In addition to a
national platform of specialized financial service units, the Bank operates
full service banking divisions in its local markets as Alliance Bank of
Arizona, Bank of Nevada, First Independent Bank and Torrey Pines Bank. Western
Alliance Bancorporation is publicly traded on the New York Stock Exchange.
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. Examples of forward-looking statements include, among others,
statements we make regarding guidance or expectations relating to balance
sheet growth, interest margin, operating efficiency, asset quality, and
regulatory capital. The forward-looking statements contained herein reflect
our current views about future events and financial performance and are
subject to risks, uncertainties, assumptions and changes in circumstances that
may cause our actual results to differ significantly from historical results
and those expressed in any forward-looking statement. Some factors that could
cause actual results to differ materially from historical or expected results
include, among others: factors discussed in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2012 as filed with the Securities
and Exchange Commission; changes in general economic conditions, either
nationally or locally in the areas in which we conduct or will conduct our
business; inflation, interest rate, market and monetary fluctuations;
increases in competitive pressures among financial institutions and businesses
offering similar products and services; higher defaults on our loan portfolio
than we expect; changes in management’s estimate of the adequacy of the
allowance for credit losses; legislative or regulatory changes or changes in
accounting principles, policies or guidelines; supervisory actions by
regulatory agencies which may limit our ability to pursue certain growth
opportunities; management’s estimates and projections of interest rates and
interest rate policy; the execution of our business plan; and other factors
affecting the financial services industry generally or the banking industry in
particular.

Any forward-looking statement made by us in this release is based only on
information currently available to us and speaks only as of the date on which
it is made. We do not intend and disclaim any duty or obligation to update or
revise any industry information or forward-looking statements, whether written
or oral, that may be made from time to time, set forth in this press release
to reflect new information, future events or otherwise.

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

                                                                                     
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
                                                                                                  
                  At or for the Three Months Ended                For the Twelve Months Ended
                  December 31,                                    December 31,
                  2013            2012            Change    %     2013            2012            Change  %
                                                                                                  
Selected
Balance Sheet
Data:
(dollars in
millions)
Total assets      $ 9,307.1       $ 7,622.6       22.1   %
Loans, net of     6,801.4         5,709.3         19.1
deferred fees
Securities
and money         1,689.6         1,236.6         36.6
market
investments
Total             7,838.2         6,455.2         21.4
deposits
Borrowings        341.1           193.7           76.1
Junior
subordinated      41.9            36.2            15.7
debt
Stockholders'     855.3           759.6           12.6
equity
                                                                                                  
Selected
Income
Statement
Data:
(dollars in
thousands)
Interest          $ 97,582        $ 84,343        15.7   %        $ 362,655       $ 318,295       13.9  %
income
Interest          7,601          6,888          10.4            29,760         28,032         6.2
expense
Net interest      89,981          77,455          16.2            332,895         290,263         14.7
income
Provision for     4,300          11,501         (62.6  )        13,220         46,844         (71.8 )
loan losses
Net interest
income after      85,681          65,954          29.9            319,675         243,419         31.3
provision for
credit losses
Non-interest      (158      )     24,463          (100.6 )        17,228          44,726          (61.5 )
(loss) income
Non-interest      51,131         48,989         4.4             196,266        188,860        3.9
expense
Income from
continuing
operations,       34,392          41,428          (17.0  )        140,637         99,285          41.6
before income
tax expense
Income tax        2,341          7,509          (68.8  )        25,254         23,961         5.4
expense
Income from
continuing        32,051          33,919          (5.5   )        115,383         75,324          53.2
operations
Loss on
discontinued      (701      )     (1,804    )     (61.1  )        (861      )     (2,490    )     (65.4 )
operations,
net
Net income        $ 31,350       $ 32,115       (2.4   )%       $ 114,522      $ 72,834       57.2  %
Diluted net
income per
common share      $ 0.37         $ 0.39         (5.1   )%       $ 1.32         $ 0.86         53.5  %
from
continuing
operations
Diluted net
loss per
common share
from              $ (0.01   )     $ (0.02   )                     $ (0.01   )     $ (0.03   )
discontinued
operations,
net of tax
Diluted net
income per        $ 0.36         $ 0.37         (2.7   )%       $ 1.31         $ 0.83         57.8  %
common share
                                                                                                  
Common Share
Data:
Diluted net
income per        $ 0.36          $ 0.37          (2.7   )%       $ 1.31          $ 0.83          57.8  %
common share
Book value
per common        $ 8.19          $ 7.15          14.5   %
share
Tangible book
value per         $ 7.89          $ 6.84          15.4   %
share, net of
tax (1)
Average
shares
outstanding
(in
thousands):
Basic             85,939          84,416          1.8             85,682          82,285          4.1
Diluted           86,877          85,152          2.0             86,541          82,912          4.4
Common shares     87,186          86,465          0.8
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 Ended        For the Twelve Months Ended
                December 31,                            December 31,
                2013         2012        Change   %     2013        2012        Change   %
                                                                                
Selected
Performance
Ratios:
Return on
average         1.37   %     1.68  %     (18.5 )%       1.35  %     1.01  %     33.7  %
assets (1)
Return on
tangible        18.11        21.70       (16.5 )        16.67       12.37       34.8
common
equity (2)
Net
interest        4.44         4.55        (2.4  )        4.39        4.49        (2.2  )
margin (1)
Net
interest        4.27         4.37        (2.3  )        4.23        4.31        (1.9  )
spread
Efficiency
ratio - tax     51.92        53.48       (2.9  )        52.51       55.39       (5.2  )
equivalent
basis (2)
Loan to
deposit         86.77        88.45       (1.9  )
ratio
                                                                                
Capital
Ratios:
Tangible        8.9    %     9.6   %     (7.3  )%
equity (2)
Tangible
common          7.4          7.8         (5.1  )
equity (2)
Tier 1
common          8.9          8.6         3.5
equity (2)
Tier 1
Leverage        9.8          10.1        (3.0  )
ratio (3)
Tier 1 Risk
Based           11.4         11.3        0.9
Capital (3)
Total Risk
Based           12.6         12.6        —
Capital (3)
                                                                                
Asset
Quality
Ratios:
Net
charge-offs
to average      0.13   %     0.99  %     (86.9 )%       0.14  %     0.99  %     (85.9 )%
loans
outstanding
(1)
Nonaccrual
loans to        1.11         1.83        (39.3 )
gross loans
Nonaccrual
loans and
repossessed     1.53         2.39        (36.0 )
assets to
total
assets
Loans past
due 90 days
and still       0.02         0.02        —
accruing to
total loans
Allowance
for credit      1.47         1.67        (12.0 )
losses to
loans
Allowance
for credit
losses to       132.20       91.13       45.1
nonaccrual
loans
                                                                                
(1) Annualized for the three month periods ended December 31, 2013 and 2012.
(2) See Reconciliation of Non-GAAP Financial Measures.
(3) Capital ratios are preliminary until the Call Report is filed.



Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
                     Three Months Ended          Twelve Months Ended
                       December 31,                  December 31,
                       2013         2012           2013          2012
Interest income:       (dollars in thousands)
Loans                  $ 86,902       $ 75,303       $ 326,714       $ 280,985
Investment             10,137         8,794          34,403          36,802
securities
Federal funds sold     543           246           1,538          508       
and other
Total interest         97,582        84,343        362,655        318,295   
income
Interest expense:
Deposits               4,442          3,890          16,335          16,794
Borrowings             2,717          2,528          11,602          9,310
Junior                 442           470           1,823          1,928     
subordinated debt
Total interest         7,601         6,888         29,760         28,032    
expense
Net interest           89,981         77,455         332,895         290,263
income
Provision for          4,300         11,501        13,220         46,844    
credit losses
Net interest
income after           85,681        65,954        319,675        243,419   
provision for
credit losses
Non-interest
income (loss):
Service charges        2,512          2,438          9,920           9,452
Bank owned life        905            1,080          4,809           4,439
insurance
Amortization of
affordable housing     (1,714   )     (1,069   )     (5,018    )     (1,779    )
investments
Gains (losses) on
sales of               342            1,447          (1,195    )     3,949
investment
securities, net
Unrealized
(losses) gains on
assets/liabilities     (2,618   )     (48      )     (6,386    )     653
measured at fair
value, net
Loss on
extinguishment of      (1,387   )     —              (1,387    )     —
debt
Bargain purchase
gain from              —              17,562         10,044          17,562
acquisition
Other                  1,802         3,053         6,441          10,450    
Total non-interest     (158     )     24,463        17,228         44,726    
(loss) income
Non-interest
expenses:
Salaries and           30,071         26,885         113,434         105,044
employee benefits
Occupancy              4,626          4,769          19,126          18,815
Legal,
professional and       4,623          2,418          13,633          10,237
directors' fees
Insurance              1,744          2,188          8,094           8,511
Data Processing        2,040          2,071          7,952           5,749
Marketing              619            575            2,581           2,305
Loan and
repossessed asset      793            2,102          4,246           6,675
expenses
Customer service       860            678            2,897           2,604
Net (gain) loss on
sales and              (2,153   )     529            (2,387    )     4,207
valuations of
repossessed assets
Intangible             597            596            2,388           3,256
amortization
Merger /
restructure            1,919          2,706          5,752           2,819
expense
Goodwill and
intangible             —              —              —               3,435
impairment
Other                  5,392         3,472         18,550         15,203    
Total non-interest     51,131        48,989        196,266        188,860   
expense
Income from
continuing             34,392         41,428         140,637         99,285
operations before
income taxes
Income tax expense     2,341         7,509         25,254         23,961    
Income from
continuing             $ 32,051       $ 33,919       $ 115,383       $ 75,324
operations
Loss from
discontinued           (701     )     (1,804   )     (861      )     (2,490    )
operations net of
tax benefit
Net income             $ 31,350       $ 32,115       $ 114,522       $ 72,834
Preferred stock        353           353           1,411          3,793     
dividends
Net income
available to           $ 30,997      $ 31,762      $ 113,111      $ 69,041  
common
stockholders
                                                                     
Diluted net income     $ 0.36        $ 0.37        $ 1.31         $ 0.83    
per share
                                                                               


Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited            Three Months Ended
                       Dec 31,      Sep 30,      Jun 30,      Mar 31,      Dec 31,
                       2013           2013           2013           2013           2012
Interest income:       (in thousands, except per share data)
Loans                  $ 86,902       $ 83,994       $ 81,093       $ 74,725       $ 75,303
Investment             10,137         8,286          7,822          8,158          8,794
securities
Federal funds sold     543           400           370           225           246      
and other
Total interest         97,582        92,680        89,285        83,108        84,343   
income
Interest expense:
Deposits               4,442          4,232          3,929          3,732          3,890
Borrowings             2,717          3,429          2,749          2,707          2,528
Junior                 442           460           455           466           470      
subordinated debt
Total interest         7,601         8,121         7,133         6,905         6,888    
expense
Net interest           89,981         84,559         82,152         76,203         77,455
income
Provision for          4,300         —             3,481         5,439         11,501   
credit losses
Net interest
income after           85,681        84,559        78,671        70,764        65,954   
provision for
credit losses
Non-interest
income (loss):
Service charges        2,512          2,425          2,449          2,534          2,438
Bank owned life        905            1,832          1,036          1,036          1,080
insurance
Amortization of
affordable housing     (1,714   )     (1,504   )     (900     )     (900     )     (1,069   )
investments
Gains (losses) on
sales of               342            (1,679   )     (5       )     147            1,447
investment
securities, net
Unrealized losses
on
assets/liabilities     (2,618   )     (7       )     (3,290   )     (471     )     (48      )
measured at fair
value, net
Loss on
extinguishment of      (1,387   )     —              —              —              —
debt
Bargain purchase
gain from              —              —              10,044         —              17,562
acquisition
Other                  1,802         1,558         1,528         1,553         3,053    
Total non-interest     (158     )     2,625         10,862        3,899         24,463   
(loss) income
Non-interest
expenses:
Salaries and           30,071         28,689         28,100         26,574         26,885
employee benefits
Occupancy              4,626          4,901          4,753          4,846          4,769
Legal,
professional and       4,623          3,438          2,549          3,023          2,418
directors' fees
Insurance              1,744          1,884          2,096          2,370          2,188
Data Processing        2,040          1,872          2,175          1,865          2,071
Marketing              619            585            710            667            575
Loan and
repossessed asset      793            1,136          721            1,596          2,102
expenses
Customer service       860            677            717            643            678
Net (gain) loss on
sales and              (2,153   )     371            (1,124   )     519            529
valuations of
repossessed assets
Intangible             597            597            597            597            596
amortization
Merger /
restructure            1,919          1,018          2,620          195            2,706
expense
Other                  5,392         4,507         4,617         4,034         3,472    
Total non-interest     51,131        49,675        48,531        46,929        48,989   
expense
Income from
continuing             34,392         37,509         41,002         27,734         41,428
operations before
income taxes
Income tax expense     2,341         9,288         6,817         6,808         7,509    
Income from
continuing             $ 32,051       $ 28,221       $ 34,185       $ 20,926       $ 33,919
operations
(Loss) Income from
discontinued           (701     )     (29      )     (169     )     38            (1,804   )
operations, net of
tax
Net income             $ 31,350      $ 28,192      $ 34,016      $ 20,964      $ 32,115 
Preferred stock        353           352           353           353           353      
dividends
Net Income
available to           $ 30,997      $ 27,840      $ 33,663      $ 20,611      $ 31,762 
common
stockholders
                                                                                            
Diluted net income     $ 0.36        $ 0.32        $ 0.39        $ 0.24        $ 0.37   
per share
                                                                                            


Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
                Dec 31,       Sep 30,       Jun 30,       Mar 31,       Dec 31,
                  2013            2013            2013            2013            2012
                  (in millions)
Assets:
Cash and due      $ 305.2         $ 380.9         $ 248.9         $ 422.3         $ 204.6
from banks
Securities
purchased
under             —              128.1          134.0          134.0          —         
agreement to
resell
Cash and cash     305.2           509.0           382.9           556.3           204.6
equivalents
                                                                                  
Securities
and money         1,689.6         1,370.8         1,313.1         1,302.4         1,236.6
market
investments
Loans held        —               25.4            27.6            27.9            31.1
for sale
Loans held
for
investment:
Commercial        2,478.2         2,234.9         2,174.1         2,084.9         1,947.8
Commercial
real estate -     1,841.1         1,864.3         1,839.7         1,538.4         1,505.6
non-owner
occupied
Commercial
real estate -     1,561.9         1,551.2         1,550.0         1,414.3         1,396.8
owner
occupied
Construction
and land          535.7           459.8           416.7           381.1           394.3
development
Residential       350.3           359.0           381.7           388.7           407.9
real estate
Consumer          43.1            29.8            28.5            26.0            31.8
Deferred          (8.9      )     (8.1      )     (6.8      )     (6.0      )     (6.0      )
fees, net
Gross loans
and deferred      6,801.4         6,490.9         6,383.9         5,827.4         5,678.2
fees, net
Allowance for     (100.1    )     (97.9     )     (96.3     )     (95.5     )     (95.4     )
credit losses
Loans, net        6,701.3        6,393.0        6,287.6        5,731.9        5,582.8   
                                                                                  
Premises and
equipment,        120.2           105.9           106.1           107.1           107.9
net
Other
repossessed       66.7            76.5            76.5            77.9            77.2
assets
Bank owned
life              140.6           139.7           140.4           139.4           138.3
insurance
Goodwill and
other             27.4            27.9            28.5            29.2            29.8
intangibles
Other assets      256.1          273.2          231.0          202.0          214.3     
Total assets      $ 9,307.1      $ 8,921.4      $ 8,593.7      $ 8,174.1      $ 7,622.6 
Liabilities
and
Stockholders'
Equity:
Liabilities:
Deposits:
Non-interest
bearing           $ 2,200.0       $ 1,972.5       $ 1,919.6       $ 1,930.4       $ 1,933.2
demand
deposits
Interest
bearing:
Demand            709.8           673.7           631.3           619.7           582.3
Savings and       3,310.4         3,050.0         2,945.1         2,826.7         2,573.5
money market
Time              1,618.0        1,579.1        1,505.3        1,358.1        1,366.2   
certificates
Total             7,838.2         7,275.3         7,001.3         6,734.9         6,455.2
deposits
Customer
repurchase        71.2           55.5           51.9           64.7           79.0      
agreements
Total
customer          7,909.4         7,330.8         7,053.2         6,799.6         6,534.2
funds
Securities        —               126.6           129.5           132.6           —
sold short
Borrowings        341.1           394.1           418.6           293.8           193.7
Junior
subordinated      41.9            39.4            39.9            36.7            36.2
debt
Accrued
interest
payable and       159.4          204.2          153.0          130.1          98.9      
other
liabilities
Total             8,451.8        8,095.1        7,794.2        7,392.8        6,863.0   
liabilities
Stockholders'
Equity
Common stock
and
additional        797.2           792.2           789.5           786.9           784.9
paid-in
capital
Preferred         141.0           141.0           141.0           141.0           141.0
stock
Accumulated       (61.4     )     (92.4     )     (120.2    )     (153.8    )     (174.5    )
deficit
Accumulated
other             (21.5     )     (14.5     )     (10.8     )     7.2            8.2       
comprehensive
(loss) income
Total
stockholders'     855.3          826.3          799.5          781.3          759.6     
equity
Total
liabilities
and               $ 9,307.1      $ 8,921.4      $ 8,593.7      $ 8,174.1      $ 7,622.6 
stockholders'
equity
                                                                                            


Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
               Three Months Ended
                 Dec 31,       Sep 30,       Jun 30,      Mar 31,      Dec 31,
                 2013            2013            2013           2013           2012
                 (in thousands)
Balance,
beginning of     $ 97,851        $ 96,323        $ 95,494       $ 95,427       $ 97,410
period
Provision
for credit       4,300           —               3,481          5,439          11,501
losses
Recoveries
of loans
previously
charged-off:
Commercial
and              666             2,242           1,757          441            372
industrial
Commercial
real estate      395             273             154            440            288
- non-owner
occupied
Commercial
real estate      297             149             479            502            109
- owner
occupied
Construction
and land         273             966             120            701            2,033
development
Residential      549             430             549            569            313
real estate
Consumer         179            726            11            14            63        
Total            2,359           4,786           3,070          2,667          3,178
recoveries
Loans
charged-off:
Commercial
and              621             544             1,065          1,770          4,654
industrial
Commercial
real estate      2,268           466             1,000          1,908          2,673
- non-owner
occupied
Commercial
real estate      238             398             1,391          979            4,470
- owner
occupied
Construction
and land         686             —               238            614            405
development
Residential      281             1,138           2,010          2,493          1,307
real estate
Consumer         366            712            18            275           3,153     
Total loans      4,460           3,258           5,722          8,039          16,662
charged-off
Net loan
charge-offs      2,101          (1,528   )      2,652         5,372         13,484    
(recoveries)
Balance, end     $ 100,050      $ 97,851       $ 96,323      $ 95,494      $ 95,427  
of period
                                                                               
Net
charge-offs
(recoveries)
to average       0.13      %     (0.10    )%     0.17     %     0.38     %     0.99      %
loans
outstanding
- annualized
Allowance
for credit       1.47            1.50            1.50           1.63           1.67
losses to
gross loans
Nonaccrual       $ 75,681        $ 76,641        $ 82,899       $ 93,748       $ 104,716
loans
Repossessed      66,719          76,475          76,499         77,921         77,247
assets
Loans past
due 90 days,     1,534           5,456           3,893          1,640          1,388
still
accruing
Loans past
due 30 to 89     13,425          8,689           7,341          14,795         16,565
days, still
accruing
Classified
loans on         128,586         144,041         140,192        97,351         112,637
accrual
Special
mention          129,965         137,247         162,482        125,660        103,550
loans
                                                                                         

                                                                                       
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                      Three Months Ended December 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)
Loans (1)               $ 6,515.2       $ 86,902       5.48  %     $ 5,450.0       $ 75,303       5.60  %
Investment              1,488.8         10,137         3.11        1,329.3         8,794          3.25
securities (1)
Federal funds sold      447.5          543           0.49       300.4          246           0.33  
and other
Total interest          8,451.5         97,582         4.79        7,079.7         84,343         4.94
earning assets
Non-interest
earning assets
Cash and due from       132.7                                      121.2
banks
Allowance for           (98.4     )                                (99.1     )
credit losses
Bank owned life         140.0                                      137.6
insurance
Other assets            465.6                                     364.0     
Total assets            $ 9,091.4                                 $ 7,603.4 
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest-bearing
transaction             $ 676.8         $ 360          0.21  %     $ 528.1         $ 301          0.23  %
accounts
Savings and money       3,175.1         2,390          0.30        2,539.8         1,973          0.31
market
Time certificates       1,592.4        1,692         0.43       1,406.9        1,616         0.46  
of deposit
Total
interest-bearing        5,444.3         4,442          0.33        4,474.8         3,890          0.35
deposits
Borrowings              414.6           2,717          2.62        299.6           2,528          3.38
Junior subordinated     39.5           442           4.48       36.2           470           5.19  
debt
Total
interest-bearing        5,898.4         7,601          0.52        4,810.6         6,888          0.57
liabilities
Noninterest-bearing
liabilities
Noninterest-bearing     2,091.8                                    1,948.4
demand deposits
Other liabilities       249.1                                      94.4
Stockholders’           852.1                                     750.0     
equity
Total liabilities
and stockholders'       $ 9,091.4                                 $ 7,603.4 
equity
Net interest income                     $ 89,981      4.44  %                     $ 77,455      4.55  %
and margin
Net interest spread                                    4.27  %                                    4.37  %
                                                                                                  
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent
adjustment was $3,728 and $3,012 for the fourth quarter ended 2013 and 2012, respectively.
                                                                                                        

                                                                                         
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                     
                        Twelve Months Ended December 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)
Loans (1)               $ 6,136.2       $ 326,714       5.43  %     $ 5,110.2       $ 280,985       5.55  %
Investment              1,342.0         34,403          3.07        1,385.3         36,802          3.17
securities (1)
Federal funds sold      409.4          1,538          0.38       189.5          508            0.27  
& other
Total interest          7,887.6         362,655         4.77        6,685.0         318,295         4.91
earnings assets
Non-interest
earning assets
Cash and due from       128.5                                       116.9
banks
Allowance for           (97.5     )                                 (98.9     )
credit losses
Bank owned life         139.8                                       136.0
insurance
Other assets            442.0                                      354.4     
Total assets            $ 8,500.4                                  $ 7,193.4 
Interest-bearing
liabilities
Interest-bearing
deposits:
Interest bearing
transaction             $ 640.1         $ 1,407         0.22  %     $ 515.3         $ 1,220         0.24  %
accounts
Savings and money       2,936.1         8,480           0.29        2,371.5         8,088           0.34
market
Time certificates       1,488.0        6,448          0.43       1,359.5        7,486          0.55  
of deposits
Total
interest-bearing        5,064.2         16,335          0.32        4,246.3         16,794          0.40
deposits
Borrowings              408.6           11,602          2.84        369.0           9,310           2.52
Junior subordinated     38.1           1,823          4.78       36.8           1,928          5.24  
debt
Total
interest-bearing        5,510.9         29,760          0.54        4,652.1         28,032          0.60
liabilities
Noninterest-bearing
liabilities
Noninterest-bearing     1,954.2                                     1,788.3
demand deposits
Other liabilities       111.8                                       62.0
Stockholders’           923.5                                      691.0     
equity
Total liabilities
and stockholders'       $ 8,500.4                                  $ 7,193.4 
equity
Net interest income                     $ 332,895      4.39  %                     $ 290,263      4.49  %
and margin
Net interest spread                                     4.23  %                                     4.31  %
                                                                                                    
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent
adjustment was $13,312 and $9,738 for the twelve months ended December 31, 2013 and 2012, respectively.
                                                                                                          

                                                                                        
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
               
                  Western         Bank of         Torrey                         Inter-segment     Consolidated
                  Alliance        Nevada          Pines          Other           eliminations      Company
                  Bank                            Bank*
At December       (dollars in millions)
31, 2013
Assets            3,551.0         3,426.0         2,258.1        993.1           (921.1     )      9,307.1
Held for sale     —               —               —              —               —                 —
loans
Gross loans
and deferred      2,834.3         2,285.6         1,624.5        57.0            —                6,801.4
fees, net
Less:
Allowance for     (30.1     )     (51.0     )     (18.3    )     (0.7      )     —                (100.1     )
credit losses
Loans, net        2,804.2        2,234.6        1,606.2       56.3           —                6,701.3    
                                                                                                   
Goodwill and
intangible        2.6             24.8            —              —               —                 27.4
assets
Deposits          3,064.6         2,763.2         2,021.3        —               (10.9      )      7,838.2
Borrowings        73.9            200.0           —              67.2            —                 341.1
Stockholders'     303.5           368.3           174.5          873.1           (864.1     )      855.3
equity
                                                                                                   
No. of            17              11              12             —               —                 40
branches
No. of FTE        292             393             230            136             —                 1,051
                                                                                                   
Three Months
Ended             (in thousands)
December 31,
2013:
Net interest
income            $ 37,299        $ 30,978        $ 22,922       $ (1,218  )     $      —          $  89,981
(expense)
Provision for     2,579          1,100          621           —              —                4,300      
credit losses
Net interest
income
(expense)         34,720          29,878          22,301         (1,218    )     —                 85,681
after
provision for
credit losses
Non-interest      1,335           4,798           911            (1,584    )     (5,618     )      (158       )
income
Non-interest      (17,655   )     (19,487   )     (13,144  )     (6,463    )     5,618            (51,131    )
expense
Income (loss)
from
continuing        18,400          15,189          10,068         (9,265    )     —                 34,392
operations
before income
taxes
Income tax
expense           5,732          2,166          4,027         (9,584    )     —                2,341      
(benefit)
Income from
continuing        12,668          13,023          6,041          319             —                 32,051
operations
Loss from
discontinued      —              —              —             (701      )     —                (701       )
operations,
net
Net income        $ 12,668       $ 13,023       $ 6,041       $ (382    )     $      —         $  31,350  
(loss)
                                                                                                   
Twelve Months
Ended             (in thousands)
December 31,
2013:
Net interest
income            $ 130,219       $ 122,799       $ 85,357       $ (5,480  )     $      —          $  332,895
(expense)
Provision for
(recovery of)     12,500         (4,414    )     3,840         1,294          —                13,220     
credit losses
Net interest
income
(expense)         117,719         127,213         81,517         (6,774    )     —                 319,675
after
provision for
credit losses
Non-interest      15,855          14,181          2,223          2,741           (17,772    )      17,228
income (1)
Non-interest      (63,343   )     (72,211   )     (49,020  )     (29,464   )     17,772           (196,266   )
expense
Income (loss)
from
continuing        70,231          69,183          34,720         (33,497   )     —                 140,637
operations
before income
taxes
Income tax
expense           18,798         16,458         11,925        (21,927   )     —                25,254     
(benefit)
Income (loss)
from              51,433          52,725          22,795         (11,570   )     —                 115,383
continuing
operations
Loss from
discontinued      —              —              —             (861      )     —                (861       )
operations,
net
Net income        $ 51,433       $ 52,725       $ 22,795      $ (12,431 )     $      —         $  114,522 
(loss)
                                                                                                   
* Excludes discontinued operations
(1) Includes bargain purchase gain from acquisition


                                                                                      
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
               
                                                                                                 
                  Western        Bank of         Torrey                        Inter-segment     Consolidated
                  Alliance       Nevada          Pines          Other          eliminations      Company
                  Bank                           Bank*
At December       (dollars in millions)
31, 2012
Assets            2,565.1        3,029.1         2,019.8        902.0          (893.4     )      7,622.6
Held for sale     —              —               31.1           —              —                 31.1
loans
Gross loans
and deferred      2,037.1        2,183.3         1,477.1        23.5           (42.8      )      5,678.2
fees, net
Less:
Allowance for     (21.3    )     (58.2     )     (15.6    )     (0.3     )     —                (95.4      )
credit losses
Loans, net        2,015.8       2,125.1        1,461.5       23.2          (42.8      )      5,582.8    
Goodwill and
intangible        3.5            26.3            —              —              —                 29.8
assets
Deposits          2,224.2        2,569.1         1,679.3        —              (17.4      )      6,455.2
Borrowings        45.0           —               110.0          73.7           (35.0      )      193.7
Stockholders'     224.0          378.2           169.1          780.9          (792.6     )      759.6
equity
                                                                                                 
No. of            16             12              12             0              0                 40
branches
No. of FTE        254            400             233            95             0                 982
                                                                                                 
Three Months
Ended             (in thousands)
December 31,
2012:
Net interest
income            $ 26,745       $ 30,127        $ 22,247       $ (1,664 )     $      —          $  77,455
(expense)
Provision for     1,369         6,532          3,300         300           —                11,501     
credit losses
Net interest
income
(expense)         25,376         23,595          18,947         (1,964   )     —                 65,954
after
provision for
credit losses
Non-interest      1,546          5,269           763            19,959         (3,074     )      24,463
income (1)
Non-interest      (13,155  )     (18,616   )     (11,349  )     (8,943   )     3,074            (48,989    )
expense
Income (loss)
from
continuing        13,767         10,248          8,361          9,052          —                 41,428
operations
before income
taxes
Income tax
expense           3,349         2,692          3,146         (1,678   )     —                7,509      
(benefit)
Income from
continuing        10,418         7,556           5,215          10,730         —                 33,919
operations
Loss from
discontinued      —             —              —             (1,804   )     —                (1,804     )
operations,
net
Net income        $ 10,418      $ 7,556        $ 5,215       $ 8,926       $      —         $  32,115  
(loss)
                                                                                                 
Twelve Months
Ended             (in thousands)
December 31,
2012:
Net interest
income            $ 98,309       $ 113,181       $ 86,653       $ (7,880 )     $      —          $  290,263
(expense)
Provision for     2,584         35,378         8,582         300           —                46,844     
credit losses
Net interest
income
(expense)         95,725         77,803          78,071         (8,180   )     —                 243,419
after
provision for
credit losses
Non-interest      6,566          16,401          3,875          29,684         (11,800    )      44,726
income (1)
Non-interest      (49,141  )     (72,052   )     (44,841  )     (34,626  )     11,800           (188,860   )
expense
Income (loss)
from
continuing        53,150         22,152          37,105         (13,122  )     —                 99,285
operations
before income
taxes
Income tax
expense           16,380        4,033          14,401        (10,853  )     —                23,961     
(benefit)
Income from
continuing        36,770         18,119          22,704         (2,269   )     —                 75,324
operations
Loss from
discontinued      —             —              —             (2,490   )     —                (2,490     )
operations,
net
Net income        $ 36,770      $ 18,119       $ 22,704      $ (4,759 )     $      —         $  72,834  
(loss)
                                                                                                 
* Excludes discontinued operations
(1) Includes bargain purchase gain from acquisition
                                                                                                 

                                                                                            
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited)
                                                                                                       
                               Dec 31, 2013      Sep 30, 2013      Jun 30, 2013      Mar 31, 2013      Dec 31, 2012
                               (dollars in thousands)
Total stockholders' equity     $ 855,250         $ 826,287         $ 799,524         $ 781,294         $ 759,616
Less:
Goodwill and intangible        27,374           27,970           28,568           29,166           29,763      
assets
Total tangible                 827,876           798,317           770,956           752,128           729,853
stockholders' equity
Less:
Preferred stock                141,000          141,000          141,000          141,000          141,000     
Total tangible common          686,876           657,317           629,956           611,128           588,853
equity
Add:
Deferred tax                   1,452            1,661            1,870            2,080            2,289       
Total tangible common          $ 688,328        $ 658,978        $ 631,826        $ 613,208        $ 591,142   
equity, net of tax
Total assets                   $ 9,307,095       $ 8,921,429       $ 8,593,684       $ 8,174,103       $ 7,622,637
Less:
Goodwill and intangible        27,374           27,970           28,568           29,166           29,763      
assets
Tangible assets                9,279,721         8,893,459         8,565,116         8,144,937         7,592,874
Add:
Deferred tax                   1,452            1,661            1,870            2,080            2,289       
Total tangible assets, net     $ 9,281,173      $ 8,895,120      $ 8,566,986      $ 8,147,017      $ 7,595,163 
of tax
Tangible equity ratio (1)      8.9         %     9.0         %     9.0         %     9.2         %     9.6         %
Tangible common equity         7.4         %     7.4         %     7.4         %     7.5         %     7.8         %
ratio (2)
Common shares outstanding      87,186            87,099            86,997            87,079            86,465
Tangible book value per        $ 7.89            $ 7.57            $ 7.26            $ 7.04            $ 6.84
share, net of tax (3)
                                                                                                       
                               Three Months Ended
                               Dec 31, 2013      Sep 30, 2013      Jun 30, 2013      Mar 31, 2013      Dec 31, 2012
                               (in thousands)
Total non-interest income      $ (158      )     $ 2,625           $ 10,862          $ 3,899           $ 24,463
Less:
Unrealized losses on
assets/liabilities             (2,618      )     (7          )     (3,290      )     (471        )     (48         )
measured
at fair value, net
Gain on sale of
subsidiary/non-controlling     —                 —                 —                 —                 116
interest
Loss on extinguishment of      (1,387      )
debt
Bargain purchase gain from     —                 —                 10,044            —                 17,562
acquisition
Legal settlements              —                 —                 —                 38                879
Mutual fund gains              —                 —                 —                 —                 483
Amortization of affordable     (1,714      )     (1,504      )     (900        )     (900        )     (1,069      )
housing investments
(Losses) Gains on sales of     342              (1,679      )     (5 *Story
investment securities, net                                         too large*

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