Western Alliance Reports Results for the First Quarter 2010

http://www.businesswire.com/news/home/20100422007013/en

LAS VEGAS--(Business Wire)--
Western Alliance Bancorporation (NYSE:WAL) announced today its financial results
for the first quarter 2010.

Highlights:

* Net income of $384,000, including reserve build of $4.1 million and net gain
from securities activities of $8.4 million
* Diluted net loss per common share of $0.03 compared to net loss of $0.41 for
the fourth quarter of 2009 and $2.33 net loss for the first quarter 2009
* Record growth in deposits of $468 million for the quarter to $5.19 billion and
year-over-year growth of $1.13 billion
* Modest decline in loans to $4.06 billion compared to fourth quarter 2009 and
first quarter last year
* Record net interest income of $54.7 million compared to $51.8 million for
fourth quarter 2009
* Substantially improved interest margin of 4.17% during the quarter compared to
3.84% for fourth quarter 2009
* Non-accrual loans of $149 million and repossessed assets of $106 million at
March 31, 2010, compared to $154 million and $83 million at December 31, 2009,
respectively
* Net loan charge-offs declined to $24.6 million from $36.4 million for fourth
quarter 2009
* Provision for credit losses declined significantly to $28.7 million from $40.8
million for fourth quarter 2009
* Tangible common equity of $405 million, or 6.7 percent of tangible assets
* Total regulatory capital of $666 million and a Total Risk-Based Capital ratio
of 14.5 percent

Financial Performance

Western Alliance Bancorporation reported a net income of $0.4 million in the
first quarter 2010, including a reserve build of $4.1 million, loss on
discontinued operations held for sale net of tax of $0.9 million, net gains from
securities activities of $8.4 million, and gain on sale/valuation of repossessed
assets of $1.0 million.

Net of preferred dividends and accretion of discount on preferred stock the
Company reported net loss per common share of $0.03 in the first quarter 2010,
including a reserve build of $0.04, loss from discontinued affinity credit card
operations held for sale net of tax of $0.01, net gain from securities
activities of $0.08, and gain from sale/valuation of repossessed assets of
$0.01.

Total loans decreased $21 million to $4.06 billion at March 31, 2010 from $4.08
billion on December 31, 2009. This net decrease was primarily driven by a
decline in construction and land development loans.

Total deposits increased $468 million to $5.19 billion at March 31, 2010 from
$4.72 billion at December 31, 2009, with increases in all major deposit
categories and led by $192 million increase in non-interest bearing deposits.
Deposits increased $1.13 billion from March 31, 2009.

"I am delighted by our extraordinary growth in low-cost, stable deposits during
the quarter and continued improvement in our key performance areas," said Robert
Sarver, Chairman and Chief Executive Officer of Western Alliance. "During the
quarter, we increased our margin by 33 basis points, expanded our market share
with $468 million in deposit growth, improved credit quality, and made
significant enhancements to our risk management structure. Although
non-recurring revenue augmented our stronger fundamentals to achieve positive
income during the quarter, we are well-positioned to continue to improve our
performance and report core operating earnings during the year."

Income Statement

Net interest income increased 7.9 percent to $54.7 million in the first quarter
2010 from $50.7 million in the first quarter 2009. The net interest margin in
the first quarter 2010 was 4.17 percent compared to 3.84 percent in the fourth
quarter 2009 and 4.39 percent in the first quarter of last year. The increase in
the interest margin from the previous quarter was largely due to higher yields
from loans and decreased deposit costs.

The provision for credit losses was $28.7 million for the first quarter 2010
compared to $40.8 million for the fourth quarter 2009 and $20.0 million for the
first quarter 2009. Nonaccrual loans and repossessed assets were $254 million or
4.17 percent of total assets at March 31, 2010, compared with $237 million or
4.12 percent of total assets at December 31, 2009 and $115 million or 2.19
percent of total assets at March 31, 2009. Net loan charge-offs in the first
quarter 2010 were $24.6 million or 2.43 percent of average loans (annualized),
compared to net charge-offs of $36.4 million or 3.68 percent of average loans
(annualized) for the fourth quarter 2009 and $17.6 million or 1.72 percent of
average loans (annualized) for the first quarter 2009. Loans past due 90 days
and still accruing totaled $8.4 million at March 31, 2010, up from $5.5 million
at December 31, 2009 and down from $53.2 million at March 31, 2009. Loans past
due 30-89 days totaled $38.6 million at quarter end, down from $50.4 million at
December 31, 2009 and down from $53.1 million at March 31, 2009.

Operating non-interest income (excluding increases in fair values of financial
instruments measured at fair value of $0.3 million, securities impairment
charges of $0.1 million, and gains from securities sales of $8.2 million) was
$6.2 million for the first quarter 2010. This performance was a decrease of 4.6
percent from $6.5 million for the same period in 2009 due to the sale of a
majority interest in Miller/Russell and Associates in 2009 (excluding increases
in fair values of financial instruments measured at fair value of $4.1 million
and securities impairment charges of $38.4 million). For the fourth quarter
2009, non-interest income was $7.7 million (excluding decreases in fair values
of financial instruments of $1.9 million, securities impairment charges of $1.7
million, and $0.2 million gains from securities sales).

Net revenue (sum of net interest income and operating non-interest income) was
$61.0 million for the first quarter 2010. This performance was an increase of
6.6 percent from net revenue of $57.2 million for the first quarter 2009. For
the fourth quarter 2009, net revenue was $59.5 million.

Operating non-interest expense (excluding net gains on sales/valuations of
repossessed assets of $1.0 million) was $41.9 million for the first quarter
2010, up 1.9 percent from non-interest expense (excluding goodwill impairment
charges of $45.0 million and net losses on sales of repossessed assets of $4.9
million) of $41.1 million for the same period in 2009. For the fourth quarter
2009, non-interest expense (excluding goodwill impairment charges of $4.1
million and net losses on sales/valuations of repossessed assets of $5.1
million) was $42.1 million. The Company had 948 full-time equivalent employees
at March 31, 2010, compared to 930 at December 31, 2009 and 1,084 one year ago.

A key performance metric for the Company is its pre-tax, pre-provision operating
earning power, which it defines as net revenue described above less its
operating non-interest expense. For the first quarter 2010, the Company`s
performance was $19.1 million, compared to $17.4 million in the fourth quarter
2009 and $16.1 million in the first quarter 2009.

Balance Sheet

Gross loans totaled $4.06 billion at March 31, 2010, a decrease of $20.5 million
from December 31, 2009 and a decrease of $16.7 million from $4.08 billion at
March 31, 2009. At March 31, 2010 the allowance for credit losses was 2.78
percent of total loans up from 2.66 percent at December 31, 2009 and up from
1.89 percent at March 31, 2009.

Customer funds totaled $5.36 billion at March 31, 2010, an increase of $414
million or 8.3 percent from $4.95 billion at December 31, 2009 and an increase
of $1.03 billion or 23.6 percent from $4.33 billion at March 31, 2009.

Non-interest bearing deposits increased to $1.35 billion at March 31, 2010 up
$192 million from December 31, 2009 and up $310 million from $1.04 billion at
March 31, 2009. Non-interest bearing deposits comprised 25.9 percent of total
deposits at March 31, 2010.

At March 31, 2010 the Company`s loans were 78.2 percent of deposits, compared to
100.4 percent one year earlier and 86.4 percent at December 31, 2009.
Borrowings, including junior and subordinated debt totaled $122 million at March
31, 2010, down $352 million from $474 million one year earlier, and down $10
million from $132 million at December 31, 2009.

Stockholders` equity increased $149 million from March 31, 2009 and increased
slightly from December 31, 2009 to $576 million at March 31, 2010. Accumulated
other comprehensive income totaled $4.7 million at March 31, 2010, compared to
$5.4 million at December 30, 2009. At March 31, 2010 tangible common equity was
6.7 percent of tangible assets and total risk-based capital was 14.5 percent of
risk-weighted assets.

Total assets increased 15.7 percent to $6.09 billion at March 31, 2010 from
$5.27 billion at March 31, 2009.

Operating Unit Highlights

Our Nevada banking operations, which are comprised of Bank of Nevada and First
Independent Bank of Nevada, reported that loans declined $68 million during the
first quarter and declined $258 million during the last 12 months to $2.38
billion at March 31, 2010. Deposits increased $374 million to $2.74 billion
since March 31, 2009. Net loss for our Nevada banks was $2.7 million during the
first quarter 2010, compared with a net loss of $64.1 million during the first
quarter 2009, which included a $45.0 million goodwill impairment charge.

Our California banking operations, which are comprised of Torrey Pines Bank and
Alta Alliance Bank, reported that loans increased $60 million during the first
quarter 2010 and increased $141 million during the last 12 months to $935
million. Deposits increased $134 million and $249 million to $1.22 billion
during the same periods, respectively. Net income for our California banks was
$0.5 million during the first quarter 2010 compared with a net loss of $5.5
million during the first quarter 2009.

Our Arizona banking operations, which consists of Alliance Bank of Arizona,
reported loan growth of $37 million during the first quarter 2010 and an
increase of $101 million during the last 12 months to $783 million. Deposits
increased $253 million and $504 million to $1.24 billion during the same
periods, respectively. Net income for our Arizona bank was $0.8 million during
the first quarter 2010 compared with a net loss of $4.0 million during the first
quarter 2009.

Our Asset Management business line, which includes Shine Investments Advisory
Services and Premier Trust, had assets under management of $872 million at March
31, 2010, compared to $865 million at December 31, 2009, excluding
Miller/Russell and Associates, which was divested. Net income for the Asset
Management segment for the quarter ended March 31, 2010 was $0.1 million,
compared with net income of $35,000 during the first quarter 2009, excluding
Miller/Russell and Associates.

Attached to this press release is summarized financial information for the
quarter ended March 31, 2010.

Subsequent Event

On April 21, 2010 the Company executed a definitive agreement to sell its entire
equity interest in Premier Trust to an unrelated party. The transaction is
expected to close in the second quarter 2010. Terms of the agreement were not
disclosed. The Company`s bank affiliates will continue to provide banking
services to Premier Trust and a number of its clients.

Conference Call

Western Alliance Bancorporation will host a conference call to discuss its first
quarter 2010 financial results at 11.00 a.m. ET on Friday, April 23, 2010.
Participants may access the call by dialing 1-866-524-3160. The call will be
recorded and made available for replay after 2:00 p.m. ET April 23 until 9 a.m.
ET May 10th by dialing 1-877-344-7529 using the pass code 439744.

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.

About Western Alliance Bancorporation

Western Alliance Bancorporation is the parent company of Bank of Nevada, First
Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta
Alliance Bank, and Shine Investment Advisory Services. These dynamic
organizations provide a broad array of deposit and credit services to clients in
Nevada, Arizona and California, and investment services in Colorado. 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.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
At or for the Three Months
Ended March 31,
2010 2009 Change %
(in thousands, except per share data)
Selected Balance Sheet Data:
(dollars in millions)
Total assets $ 6,096.2 $ 5,267.3 15.7 %
Loans, net of deferred fees 4,059.1 4,075.7 (0.4 )
Securities and money market investments 781.1 583.6 33.8
Federal funds sold and other 2.4 3.3 (27.3 )
Customer funds 5,359.2 4,333.8 23.7
Borrowings 20.0 370.8 (94.6 )
Junior subordinated and subordinated debt 102.3 102.8 (0.5 )
Stockholders' equity 575.7 426.9 34.9

Selected Income Statement Data:
(dollars in thousands)
Interest income $ 68,734 $ 70,168 (2.0 ) %
Interest expense 14,016 19,438 (27.9 )
Net interest income 54,718 50,730 7.9
Provision for loan losses 28,747 19,984 43.9
Net interest income after provision for credit losses 25,971 30,746 (15.5 )
Non-interest income 14,629 (27,828 ) (152.6 )
Non-interest expense 40,843 91,036 (55.1 )
Loss from continuing operations before income taxes (243 ) (88,118 ) (99.7 )
Income tax benefit (1,562 ) (3,044 ) (48.7 )
Income (loss) from continuing operations 1,319 (85,074 ) (101.6 )
Loss on discontinued operations, net (935 ) (1,368 ) (31.7 )
Net income (loss) $ 384 $ (86,442 ) (100.4 ) %
Intangible asset amortization, net of tax $ 590 $ 614 (4.0 ) %
Diluted net loss from continuing operations $ (0.02 ) $ (2.30 )
Diluted net loss from discontinued operations, net of tax $ (0.01 ) $ (0.04 )
Diluted net loss per common share $ (0.03 ) $ (2.33 ) (98.7 ) %

Common Share Data:
Diluted net income (loss) per common share $ (0.03 ) $ (2.33 ) (98.7 ) %
Book value per common share $ 6.12 $ 7.73 (20.8 ) %
Tangible book value per share (net of tax) (1) $ 5.62 $ 6.52 (13.8 ) %
Average shares outstanding (in thousands):
Basic 71,965 38,096 88.9
Diluted 71,965 38,096 88.9
Common shares outstanding 73,031 38,956 87.5
(1) Tangible book value per share (net of tax) is a non-GAAP ratio that represents stockholders' equity less intangibles, adjusted for deferred taxes related to intangibles, divided by the shares outstanding at the end of the period. Tangible assets as of March 31, 2010 and March 31, 2009, adjusted for deferred taxes, were $6.06 billion and $5.22 billion, respectively. We believe this ratio improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded
goodwill and other intangibles.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)
Unaudited
At or for the Three Months
Ended March 31,
2010 2009 Change %
(in thousands, except per share data)
Selected Performance Ratios:
Return on average assets (1) 0.03 % (6.65 ) % (100.5 ) %
Return on average stockholders' equity (1) 0.27 (70.21 ) (100.4 )
Net interest margin (1) 4.17 4.39 (5.0 )
Net interest spread 3.84 3.98 (3.5 )
Efficiency ratio - tax equivalent basis 68.42 75.00 (8.8 )
Loan to deposit ratio 78.21 100.35 (22.1 )

Capital Ratios:
Tangible equity (non-GAAP) (2) 8.8 % 7.1 % 23.9 %
Tangible common equity (non-GAAP) (3) 6.7 4.7 42.6
Tier 1 Leverage ratio 9.5 8.4 13.1
Tier 1 Risk Based Capital 11.9 9.4 26.6
Total Risk Based Capital 14.5 12.0 20.8

Asset Quality Ratios:
Net charge-offs to average loans outstanding (1) 2.43 % 1.72 % 41.3 %
Nonaccrual loans to gross loans 3.66 2.42 51.2
Nonaccrual loans and repossessed assets to total assets 4.17 2.19 90.4
Loans past due 90 days and still accruing to total loans 0.21 1.30 (83.8 )
Allowance for credit losses to loans 2.78 1.89 47.1
Allowance for credit losses to nonaccrual loans 75.78 78.24 (3.1 )
===================================================

(1) Annualized for the three month periods ended March 31, 2010 and 2009.
(2) Tangible equity is a non-GAAP ratio of tangible equity to tangible assets. Tangible equity as of March 31, 2010 and March 31, 2009 was $534 million and $373 million, respectively. Tangible assets as of March 31, 2010 and March 31, 2009 were $6.05 billion and $5.21 billion, respectively. We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength.
(3) Tangible common equity is a non-GAAP ratio of tangible equity to tangible assets, excluding our preferred stock. Tangible common equity as of March 31, 2010 and March 31, 2009 was $405 million and $247 million, respectively. Tangible assets as of March 31, 2010 and March 31, 2009, were $6.05 billion and $5.21 billion, respectively. We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength.

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Statements of Operations
Unaudited Three Months Ended
March 31,
2010 2009
Interest income: (dollars in thousands)
Loans $ 62,167 $ 63,253
Investment securities 6,304 6,892
Federal funds sold and other 263 23
Total interest income 68,734 70,168
Interest expense:
Deposits 12,079 15,650
Customer repurchase agreements 284 1,250
Borrowings 449 1,275
Junior subordinated and subordinated debt 1,204 1,263
Total interest expense 14,016 19,438
Net interest income 54,718 50,730
Provision for credit losses 28,747 19,984
Net interest income after provision for credit losses 25,971 30,746
Non-interest income
Unrealized gains (losses) on assets and liabilities measured at fair value, net
301 4,071
Securities impairment charges (103 ) (38,405 )
Gains on sales of investment securities, net 8,218 7
Trust and investment advisory services 1,213 2,237
Service charges 2,197 1,682
Operating lease income 964 1,003
Bank owned life insurance 719 514
Other 1,120 1,063
14,629 (27,828 )
Non-interest expenses:
Salaries and employee benefits 21,440 23,619
Occupancy 4,787 5,220
Insurance 3,492 1,647
Repossessed asset and loan expenses 2,364 1,077
Net (gain) loss on sales and valuations of repossessed assets (1,014 ) 4,936
Legal, professional and director's fees 1,868 1,364
Marketing 1,156 1,211
Customer service 1,065 1,017
Intangible amortization 907 945
Data Processing 791 1,137
Operating lease depreciation 689 919
Goodwill impairment - 45,000
Other 3,298 2,944
40,843 91,036
Loss from continuing operations before income taxes (243 ) (88,118 )
Income tax benefit (1,562 ) (3,044 )
Income (loss) from continuing operations 1,319 (85,074 )
Loss from discontinued operations net of tax benefit (935 ) (1,368 )
Net income (loss) 384 (86,442 )
Preferred stock dividends 1,750 1,750
Accretion on preferred stock discount 716 682
Net loss available to common stockholders $ (2,082 ) $ (88,874 )
Loss per share $ (0.03 ) $ (2.33 )

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Statements of Operations
Unaudited
Three Months Ended
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2010 2009 2009 2009 2009
Interest income: (in thousands, except per share data)
Loans $ 62,167 $ 60,532 $ 61,380 $ 63,268 $ 63,253
Investment securities 6,304 6,621 5,891 6,822 6,892
Federal funds sold and other 263 660 475 206 23
Total interest income 68,734 67,813 67,746 70,296 70,168
Interest expense:
Deposits 12,079 13,785 16,067 16,413 15,650
Borrowings 733 992 1,452 1,883 2,525
Junior subordinated and subordinated debt 1,204 1,248 1,257 1,199 1,263
Total interest expense 14,016 16,025 18,776 19,495 19,438
Net interest income 54,718 51,788 48,970 50,801 50,730
Provision for credit losses 28,747 40,792 50,750 37,573 19,984
Net interest income after provision for credit losses 25,971 10,996 (1,780 ) 13,228 30,746
Non-interest income
Mark-to-market (losses) gains, net 301 (1,874 ) 1,987 (449 ) 4,071
Securities impairment charges (103 ) (1,748 ) (1,044 ) (1,674 ) (38,405 )
Gains on sales of investment securities, net 8,218 167 4,146 10,867 7
Trust and investment advisory services 1,213 2,320 2,369 2,361 2,237
Service charges 2,197 2,298 2,212 1,980 1,682
Operating lease income 964 1,091 1,079 894 1,003
Bank owned life insurance 719 669 574 435 514
Other 1,120 1,346 1,224 1,033 1,063
14,629 4,269 12,547 15,447 (27,828 )
Non-interest expenses:
Salaries and employee benefits 21,440 20,807 23,694 23,384 23,619
Occupancy 4,787 5,040 5,346 5,196 5,220
Insurance 3,492 2,991 2,326 5,061 1,647
Repossessed asset and loan expenses 2,364 1,779 1,430 2,078 1,077
Net (gain) loss on sales and valuations of repossessed assets (1,014 ) 5,081 7,283 3,974 4,936
Legal, professional and director's fees 1,868 3,978 1,810 1,821 1,364
Marketing 1,156 1,185 543 1,368 1,211
Intangible amortization 907 945 945 945 945
Customer service 1,065 1,145 1,001 1,127 1,017
Data Processing 791 971 951 1,215 1,137
Operating lease depreciation 689 750 722 838 919
Goodwill impairment - 4,095 576 - 45,000
Other 3,298 2,553 3,821 3,166 2,944
40,843 51,320 50,448 50,173 91,036
Loss from continuing operations before income taxes (243 ) (36,055 ) (39,681 ) (21,498 ) (88,118 )
Income tax benefit (1,562 ) (10,258 ) (16,724 ) (8,427 ) (3,044 )
Income (loss) from continuing operations $ 1,319 $ (25,797 ) $ (22,957 ) $ (13,071 ) $ (85,074 )
Loss from discontinued operations, net of tax (935 ) (1,115 ) (958 ) (1,066 ) (1,368 )
Net income (loss) $ 384 $ (26,912 ) $ (23,915 ) $ (14,137 ) $ (86,442 )
Preferred stock dividends 1,750 1,750 1,750 1,750 1,750
Accretion on preferred stock 716 697 689 674 682
Net loss available to common stockholders $ (2,082 ) $ (29,359 ) $ (26,354 ) $ (16,561 ) $ (88,874 )
Loss per share $ (0.03 ) $ (0.41 ) $ (0.37 ) $ (0.31 ) $ (2.33 )

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2010 2009 2009 2009 2009
Assets: (in millions)
Cash and due from banks $ 827.6 $ 393.3 $ 752.9 $ 548.6 $ 224.3
Federal funds sold and other 2.4 3.5 5.0 20.3 3.3
Cash and cash equivalents 830.0 396.8 757.9 568.9 227.6

Securities and money market investments 781.1 864.8 727.8 725.7 583.6
Loans:
Construction and land development 556.9 623.2 685.2 727.4 793.5
Commercial real estate - owner occupied 1,209.3 1,091.4 1,095.3 1,071.1 1,074.6
Commercial real estate - non-owner occupied 902.9 933.2 830.4 794.9 752.6
Residential real estate 560.2 568.3 600.4 595.0 586.5
Commercial 757.9 802.2 687.7 768.9 806.8
Consumer 77.6 80.3 77.3 80.5 71.2
Deferred fees, net (5.7 ) (19.0 ) (8.3 ) (8.9 ) (9.5 )
4,059.1 4,079.6 3,968.0 4,028.9 4,075.7
Allowance for credit losses (112.7 ) (108.6 ) (104.2 ) (84.1 ) (77.2 )
Loans, net 3,946.4 3,971.0 3,863.8 3,944.8 3,998.5

Premises and equipment, net 121.2 125.9 128.6 136.7 138.1
Other repossessed assets 105.6 83.3 72.8 42.1 15.5
Bank owned life insurance 93.2 92.5 91.8 91.3 90.8
Goodwill and other intangibles 42.2 43.1 51.6 53.1 54.1
Other assets 176.5 175.9 137.0 138.9 159.1
Total assets $ 6,096.2 $ 5,753.3 $ 5,831.3 $ 5,701.5 $ 5,267.3
Liabilities and Stockholders' Equity:
Liabilities:
Deposits:
Non-interest bearing demand deposits $ 1,348.7 $ 1,157.0 $ 1,154.8 $ 1,108.6 $ 1,039.2
Interest bearing
Demand 510.2 362.7 339.4 296.3 260.6
Savings and money market 1,798.5 1,752.5 1,802.5 1,704.2 1,579.0
Time certificates 1,532.7 1,449.9 1,455.5 1,283.1 1,182.7
Total deposits 5,190.1 4,722.1 4,752.2 4,392.2 4,061.5
Customer repurchase agreements 169.1 223.3 264.1 300.4 272.3
Total customer funds 5,359.2 4,945.4 5,016.3 4,692.6 4,333.8
Borrowings 20.0 29.4 79.4 254.4 370.8
Junior subordinated and subordinated debt 102.3 102.4 101.9 102.3 102.8
Accrued interest payable and other liabilities 39.0 100.4 30.8 30.6 33.0
Total liabilities 5,520.5 5,177.6 5,228.4 5,079.9 4,840.4
Stockholders' Equity
Common stock and additional paid-in capital 686.0 684.1 682.0 680.1 486.2
Preferred Stock 128.7 127.9 127.3 126.6 125.9
Retained earnings (deficit) (243.7 ) (241.7 ) (212.4 ) (186.0 ) (169.5 )
Accumulated other comprehensive income (loss) 4.7 5.4 6.0 0.9 (15.7 )
Total stockholders' equity 575.7 575.7 602.9 621.6 426.9
Total liabilities and stockholders' equity $ 6,096.2 $ 5,753.3 $ 5,831.3 $ 5,701.5 $ 5,267.3

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
Three Months Ended
Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31,
2010 2009 2009 2009 2009

(in thousands)
Balance, beginning of period $ 108,623 $ 104,181 $ 84,143 $ 77,184 $ 74,827
Provision for credit losses 28,747 40,792 50,750 37,573 19,984
Recoveries of loans previously charged-off:
Construction and land development 409 888 608 212 -
Commercial real estate 22 91 139 - -
Residential real estate 231 340 11 143 51
Commercial and industrial 1,238 216 442 501 370
Consumer 67 42 6 96 29
Total recoveries 1,967 1,577 1,206 952 450
Loans charged-off:
Construction and land development 8,638 9,859 13,717 10,381 1,850
Commercial real estate 5,884 6,204 3,125 6,310 1,117
Residential real estate 5,855 5,909 5,619 6,427 6,127
Commercial and industrial 4,757 14,924 8,329 7,355 7,965
Consumer 1,479 1,031 1,128 1,093 1,018
Total loans charged-off 26,613 37,927 31,918 31,566 18,077
Net loans charged-off 24,646 36,350 30,712 30,614 17,627
Balance, end of period $ 112,724 $ 108,623 $ 104,181 $ 84,143 $ 77,184

Net charge-offs (annualized) to average loans outstanding 2.43 % 3.68 % 3.05 % 3.00 % 1.72 %
Allowance for credit losses to gross loans 2.78 2.66 2.62 2.09 1.89
Nonaccrual loans $ 148,760 $ 153,702 $ 166,286 $ 116,377 $ 98,653
Repossessed assets 105,637 83,347 72,795 42,137 16,455
Loans past due 90 days, still accruing 8,437 5,538 2,538 36,060 53,239
Loans past due 30 to 89 days, still accruing 38,611 50,376 43,980 75,480 53,123

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended March 31,
2010 2009
Average Interest Average Average Interest Average
Balance Yield/Cost Balance Yield/Cost
Interest earning assets ($ in millions) ($ in thousands) ($ in millions) ($ in thousands)
Investment securities (1) $ 823.5 $ 6,304 3.22 % $ 579.2 $ 6,892 5.11 %
Federal funds sold and other 32.6 53 0.66 % 12.2 23 0.76 %
Loans (1) 4,053.5 62,167 6.22 % 4,088.2 63,253 6.27 %
Short term investments 389.8 183 0.19 % - - 0.00 %
Investment in restricted stock 41.4 27 0.26 % 41.0 - 0.00 %
Total interest earning assets 5,340.8 68,734 5.24 % 4,720.6 70,168 6.06 %
Non-interest earning assets
Cash and due from banks 98.2 153.5
Allowance for credit losses (117.7 ) (77.4 )
Bank owned life insurance 92.8 90.8
Other assets 400.5 383.8
Total assets $ 5,814.6 $ 5,271.3
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts $ 450.0 $ 783 0.71 % $ 248.3 $ 701 1.14 %
Savings and money market 1,784.2 4,676 1.06 % 1,459.0 7,113 1.98 %
Time certificates of deposit 1,482.6 6,620 1.81 % 1,108.3 7,836 2.87 %
3,716.8 12,079 1.32 % 2,815.6 15,650 2.25 %
Borrowings 229.5 733 1.30 % 870.7 2,525 1.18 %
Junior subordinated and subordinated debt 102.4 1,204 4.77 % 103.0 1,263 4.97 %
Total interest-bearing liabilities 4,048.7 14,016 1.40 % 3,789.3 19,438 2.08 %
Noninterest-bearing liabilities
Noninterest-bearing demand deposits 1,150.2 954.8
Other liabilities 28.8 27.9
Stockholders` equity 586.9 499.3
Total liabilities and stockholders' equity $ 5,814.6 $ 5,271.3
Net interest income and margin $ 54,718 4.17 % $ 50,730 4.39 %
Net interest spread 3.84 % 3.99 %

(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $244 and $400 for the first quarter ended 2010 and 2009, respectively.

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Inter- Consoli-
segment
Asset Elimi- dated
Nevada California Arizona Management Other nations Company
(in millions)
At March 31, 2010
Assets $ 3,317.4 $ 1,393.5 $ 1,369.7 $ 6.2 $ 615.3 $ (605.9 ) $ 6,096.2
Gross loans and deferred fees, net 2,384.6 934.7 782.8 - - (43.0 ) 4,059.1
Less: Allowance for credit losses (78.8 ) (16.7 ) (17.2 ) - - - (112.7 )
Net loans 2,305.8 918.0 765.6 - - (43.0 ) 3,946.4
Goodwill 23.2 - - 2.7 - - 25.9
Deposits 2,740.8 1,215.7 1,237.0 - - (3.4 ) 5,190.1
Stockholders' equity 346.7 127.7 79.7 5.3 575.6 (559.3 ) 575.7

No. of branches 19 9 10 - - - 38
No. of FTE 541 206 138 24 39 - 948

Three Months Ended March 31, 2010:
(in thousands)
Net interest income $ 30,979 $ 14,314 $ 9,564 $ 2 $ (141 ) $ - $ 54,718
Provision for credit losses 23,989 2,725 2,033 - 0 - 28,747
Net interest income (loss) after provision for credit losses
6,990 11,589 7,531 2 (141 ) - 25,971
Non-interest income 8,225 896 1,605 1,219 2,227 457 14,629
Non-interest expense (19,336 ) (11,368 ) (7,595 ) (945 ) (3,303 ) 1,704 (40,843 )
Income (loss) from continuing operations before income taxes
(4,121 ) 1,117 1,541 276 (1,217 ) 2,161 (243 )
Income tax expense (benefit) (1,426 ) 628 704 132 (1,600 ) - (1,562 )
Income (loss) from continuing operations
(2,695 ) 489 837 144 383 2,161 1,319
Loss from discontinued operations, net - - - - (935 ) - (935 )
Net income (loss) $ (2,695 ) $ 489 $ 837 $ 144 $ 383 $ 2,161 $ 384

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Inter- Consoli-
segment
Asset Elimi- dated
Nevada California Arizona Management Other nations Company
(in millions)
At March 31, 2009
Assets $ 3,529.8 $ 1,069.1 $ 886.3 $ 19.6 $ 37.4 $ (274.9 ) $ 5,267.3
Gross loans and deferred fees 2,643.0 793.6 682.1 - - (43.0 ) 4,075.7
Less: Allowance for credit losses (49.7 ) (13.3 ) (14.1 ) - - - (77.1 )
Net loans 2,593.3 780.3 668.0 - - (43.0 ) 3,998.6
Goodwill 23.2 - - 10.7 - - 33.9
Deposits 2,367.0 967.0 733.0 - - (5.6 ) 4,061.4
Stockholders' equity 279.0 75.3 64.5 17.1 (9.0 ) - 426.9

No. of branches 21 9 11 - - - 41
No. of FTE 616 227 150 48 43 - 1,084

Three Months Ended March 31, 2009
(in thousands)
Net interest income $ 32,647 $ 11,176 $ 7,728 $ 15 $ (836 ) $ - $ 50,730
Provision for credit losses 10,760 3,741 5,483 - - - 19,984
Net interest income after provision for credit losses
21,887 7,435 2,245 15 (836 ) - 30,746
Non-interest income (15,776 ) (2,383 ) 807 2,244 (5,306 ) (7,414 ) (27,828 )
Goodwill impairment charge (45,000 ) - - - - - (45,000 )
Non-interest expense (23,802 ) (8,965 ) (8,931 ) (2,218 ) (3,078 ) 958 (46,036 )
Loss from continuing operations before income taxes
(62,691 ) (3,913 ) (5,879 ) 41 (9,220 ) (6,456 ) (88,118 )
Income tax expense (benefit) 1,446 1,539 (1,907 ) 85 (1,947 ) (2,260 ) (3,044 )
Income(loss) from continuing operations
(64,137 ) (5,452 ) (3,972 ) (44 ) (7,273 ) (4,196 ) (85,074 )
Loss from discontinued operations, net - - - - (1,368 ) - (1,368 )
Net income (loss) $ (64,137 ) $ (5,452 ) $ (3,972 ) $ (44 ) $ (7,273 ) $ (4,196 ) $ (86,442 )

Western Alliance Bancorporation
MEDIA CONTACT:
Robert Sarver, Chairman/CEO
602-952-5445
INVESTOR CONTACT:
Dale Gibbons, CFO
702-252-6236

Copyright Business Wire 2010