Press Release

Western Alliance Reports Record Third Quarter 2015 Financial Performance

Company Release - 10/15/2015 4:57 PM ET

PHOENIX--(BUSINESS WIRE)-- Western Alliance Bancorporation (NYSE:WAL) (the "Company") announced today its financial results for the third quarter 2015. These results include the performance of Bridge Bank, which was acquired on June 30, 2015.

Third Quarter 2015 Highlights:

  • Net income of $59.1 million, compared to $34.7 million for the second quarter 2015, and $40.9 million for the third quarter 2014
  • Earnings per share of $0.58, compared to $0.39 per share in the second quarter 2015, and $0.46 per share in the third quarter 2014
  • Net income and earnings per share above includes a total benefit of $0.05 per share from net unrealized gains on assets and liabilities measured at fair value, non-recurring tax benefits, and accelerated recognition of accretion income, offset by acquisition and other non-recurring expenses
  • Pre-tax, pre-provision operating earnings of $73.7 million, up 23.5% from $59.7 million in the second quarter 2015, and up 42.2% from $51.9 million in the third quarter 20141
  • Net operating revenue of $145.9 million, constituting year-over-year growth of 40.9%, or $42.4 million, compared to an increase in operating expenses of 39.6%, or $20.5 million1
  • Net interest margin of 4.59%, compared to 4.41% in the second quarter 2015, and 4.43% in the third quarter 2014
  • Efficiency ratio of 46.8%, compared to 44.7% in the second quarter 2015, and 47.1% in the third quarter 20141
  • Total loans of $10.79 billion, up $427 million from June 30, 2015, and up $2.86 billion from September 30, 2014
  • Total deposits of $11.61 billion, up $203 million from June 30, 2015, and up $2.91 billion from September 30, 2014
  • Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 0.76% of total assets, from 0.88% at June 30, 2015, and from 1.23% at September 30, 2014
  • Net loan recoveries (annualized) to average loans outstanding of 0.08%, compared to 0.13% in the second quarter 2015, and 0.15% in the third quarter 2014
  • Tangible common equity ratio of 8.9%, compared to 8.7% at June 30, 2015, and 8.2% at September 30, 2014
  • Stockholders' equity of $1.58 billion, an increase of $69 million from June 30, 2015, and an increase of $581 million from September 30, 2014
  • Tangible book value per share, net of tax, of $11.86, an increase of 5.4% from $11.25 at June 30, 2015, and an increase of 24.4% from $9.53 at September 30, 20141

Financial Performance

"Western Alliance performed strongly in all key metrics in the third quarter," remarked Robert Sarver, Chief Executive Officer and Chairman of Western Alliance Bancorporation, "delivering record net income of $59.1 million and earnings per share of $0.58 to our shareholders. Thanks in part to the recent addition of Bridge Bank, net operating revenue was $145.9 million, an increase of over 40% from last year. Notably, fee income increased primarily due to Bridge. Loans increased $427 million from the prior quarter to $10.8 billion and deposits also increased $203 million to $11.6 billion. We also recorded our seventh consecutive quarter of net loan recoveries." Sarver continued, "The first quarter of Bridge's operations under Western Alliance has exceeded our expectations in terms of financial performance, customer retention, and growth."

Income Statement

Net interest income was $137.4 million in the third quarter 2015, an increase of $28.7 million, or 26.4% from $108.7 million in the second quarter 2015, and an increase of $39.3 million, or 40.1%, compared to the third quarter 2014. Net interest income in the third quarter 2015 includes $7.0 million of total accretion income from acquired loans.

The Company’s net interest margin increased in the third quarter 2015 to 4.59%, compared to 4.41% in the second quarter 2015, and 4.43% in the third quarter 2014. The increase in net interest margin for the quarter primarily relates to accretion from acquired Bridge loans.

Operating non-interest income was $8.5 million for the third quarter 2015, compared to $5.6 million for the second quarter of 2015, and $5.5 million for the third quarter 2014.1

Net operating revenue was $145.9 million for the third quarter 2015, an increase of $31.6 million, or 27.6%, compared to $114.3 million for the second quarter 2015, and an increase of $42.4 million, or 40.9%, compared to $103.6 million for the third quarter 2014.1

Operating non-interest expense was $72.2 million for the third quarter 2015, compared to $54.6 million for the second quarter 2015, and $51.7 million for the third quarter 2014.1 The Company’s operating efficiency ratio1 on a tax equivalent basis was 46.8% for the third quarter 2015, a decline from 44.7% for the second quarter 2015, and an improvement from 47.1% for the third quarter 2014.

The Company views its pre-tax, pre-provision operating earnings as a key metric for assessing the Company’s earnings power, which it defines as net operating revenue less operating non-interest expense. For the third quarter 2015, the Company’s pre-tax, pre-provision operating earnings were $73.7 million, up 23.5% from $59.7 million in the second quarter 2015, and up 42.2% from $51.9 million in the third quarter 2014.1

The non-operating items for the third quarter 2015 consisted primarily of net unrealized gains on assets and liabilities measured at fair value of $5.4 million. Other non-operating items include acquisition / restructure expense of $0.8 million incurred in connection with the acquisition of Bridge, $0.1 million of net losses on sales of investment securities, and a $0.1 million net gain on sales and valuations of repossessed and other assets.

The Company had 1,415 full-time equivalent employees and 47 offices at September 30, 2015, compared to 1,120 employees and 39 offices at September 30, 2014.

Balance Sheet

Gross loans totaled $10.79 billion at September 30, 2015, an increase of $427 million from $10.36 billion at June 30, 2015, and an increase of $2.86 billion from $7.93 billion at September 30, 2014. The year-over-year increase relates primarily to the Bridge acquisition as of June 30, 2015. At September 30, 2015, the allowance for credit losses was 1.09% of total loans, compared to 1.11% at June 30, 2015, and 1.38% at September 30, 2014, reflecting an improvement in the Company’s asset quality profile and historical losses. Consistent with GAAP, the allowance for credit losses is not carried over in an acquisition because acquired loans are recorded at fair value, which discounts the loans based on expected future cash flows. The allowance for credit losses as a percent of total loans, adjusted to include credit discounts on acquired loans, was 1.32% at September 30, 2015, compared to 1.35% at June 30, 2015, and 1.54% at September 30, 2014.

Deposits totaled $11.61 billion at September 30, 2015, an increase of $203 million from $11.41 billion at June 30, 2015, and an increase of $2.91 billion from September 30, 2014. Non-interest bearing deposits were $4.08 billion at September 30, 2015, compared to $3.92 billion at June 30, 2015, and $2.25 billion at September 30, 2014. Non-interest bearing deposits comprised 35.1% of total deposits at September 30, 2015, compared to 34.4% at June 30, 2015, and 25.8% at September 30, 2014. The increase in the proportion of the Company's non-interest bearing deposits from the prior year is due to Bridge's higher proportion of non-interest bearing deposits. The proportion of savings and money market balances to total deposits decreased to 40.2% from 41.5% at June 30, 2015, and from 42.4% at September 30, 2014. Certificates of deposit as a percentage of total deposits were 15.8% at September 30, 2015, compared to 15.3% at June 30, 2015, and 22.5% at September 30, 2014. The Company’s ratio of loans to deposits was 92.9% at September 30, 2015, compared to 90.8% at June 30, 2015, and 91.2% at September 30, 2014.

Borrowings totaled $300 million at September 30, 2015, an increase of $230 million from $70 million at June 30, 2015, and a decrease of $31 million from $331 million at September 30, 2014. The increase from the prior quarter is due to increased Federal Home Loan Bank ("FHLB") overnight advances. The decrease from the prior year is due to the payoff of all of our outstanding 10% Senior Notes, which decreased borrowings by $58 million, offset by increased FHLB overnight advances. Qualifying debt totaled $207 million at September 30, 2015, compared to $208 million at June 30, 2015, and an increase of $165 million from $42 million at September 30, 2014. The year-over-year increase is primarily due to the issuance of $150 million of subordinated debt and the assumption of $11 million in junior subordinated debt from Bridge in the second quarter 2015.

Stockholders’ equity at September 30, 2015 was $1.58 billion, compared to $1.51 billion at June 30, 2015, and $1.00 billion at September 30, 2014. The increase in stockholders' equity from September 30, 2014 is primarily due to the issuance of 12.5 million shares of the Company's common stock in connection with the acquisition of Bridge.

At September 30, 2015, tangible common equity, net of tax, was 8.9% of tangible assets1 and total capital under the Basel III federal regulatory standards was 12.1% of risk-weighted assets. The Company’s tangible book value per share1 was $11.86 at September 30, 2015, up 24.4% from September 30, 2014.

Total assets increased 3.6% to $13.96 billion at September 30, 2015, from $13.47 billion at June 30, 2015, and increased 35.6% from $10.29 billion at September 30, 2014. The increase in total assets from the prior year was primarily related to the Bridge acquisition.

Asset Quality

There was no provision for credit losses for the second and third quarters of 2015, compared to $0.4 million for the third quarter 2014. Net loan recoveries in the third quarter 2015 were $2.0 million, or 0.08% of average loans (annualized), compared to $3.0 million, or 0.13%, in the second quarter 2015, respectively, and $2.8 million, or 0.15%, for the third quarter 2014, respectively.

Nonaccrual loans decreased $11.7 million to $47.7 million during the quarter. Loans past due 90 days and still accruing interest totaled $5.6 million at September 30, 2015, compared to $8.3 million at June 30, 2015, and $3.6 million at September 30, 2014. Loans past due 30-89 days and still accruing interest totaled $19.6 million at quarter end, an increase from $4.0 million at June 30, 2015, and an increase from $16.5 million at September 30, 2014.

As the Company’s asset quality improved and its capital increased, the ratio of classified assets to Tier I capital plus the allowance for credit losses, a common regulatory measure of asset quality, improved to 17.2% at September 30, 2015, from 18.5% at June 30, 2015, and from 21.5% at September 30, 2014.1

Segment Highlights

The Company's reportable segments are aggregated primarily based on geographic location, services offered, and markets served. As a result of the acquisition of Bridge on June 30, 2015, former Bridge activities were allocated between the newly formed Northern California segment and the Central Business Lines ("CBL") segment. As a substantial portion of Bridge's balance sheet is generated from nationally-focused business lines, the operations of these business lines are included in the CBL segment. Substantially all of the remaining assets and liabilities are included in the Northern California segment. The Southern California segment represents legacy Western Alliance operations in California, excluding two branches located in northern California, which are now included in the Northern California segment.

The Arizona, Nevada, Southern California, and Northern California segments provide full service banking and related services to their respective markets. The Company's CBL segment provides specialized banking services to niche markets and, as of June 30, 2015, includes the operations of Bridge. These CBLs are managed centrally and are broader in geographic scope than our other segments, though still predominately located within our core market areas. The Corporate & Other segment consists of corporate-related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.

Key management metrics for evaluating the performance of the Company's Arizona, Nevada, Southern California, Northern California, and CBL segments include loan and deposit growth, asset quality, and pre-tax income.

Arizona reported a gross loan balance of $2.71 billion at September 30, 2015, an increase of $273 million during the quarter, and an increase of $501 million during the last 12 months. Deposits were $2.46 billion at September 30, 2015, an increase of $94 million during the quarter, and an increase of $386 million during the last 12 months. Pre-tax income was $16.8 million and $14.8 million for the three months ended September 30, 2015 and 2014, respectively, and $50.3 million and $44.7 million for the nine months ended September 30, 2015 and 2014, respectively.

Nevada reported a gross loan balance of $1.78 billion at September 30, 2015, an increase of $18 million during the quarter, and an increase of $99 million during the last 12 months. Deposits were $3.33 billion at September 30, 2015, an increase of $13 million during the quarter, and an increase of $136 million during the last 12 months. Pre-tax income was $19.9 million and $21.2 million for the three months ended September 30, 2015 and 2014, respectively, and $57.0 million and $55.4 million for the nine months ended September 30, 2015 and 2014, respectively.

Southern California reported a gross loan balance of $1.71 billion at September 30, 2015, an increase of $48 million during the quarter, and an increase of $177 million during the last 12 months. Deposits were $1.94 billion at September 30, 2015, a decrease of $8 million during the quarter, and an increase of $158 million during the last 12 months. Pre-tax income was $13.3 million and $11.9 million for the three months ended September 30, 2015 and 2014, respectively, and $37.6 million and $33.7 million for the nine months ended September 30, 2015 and 2014, respectively.

Northern California reported a gross loan balance of $1.17 billion at September 30, 2015, an increase of $88 million during the quarter, and an increase of $970 million during the last 12 months. Deposits were $1.47 billion at September 30, 2015, a decrease of $80 million during the quarter, and an increase of $901 million during the last 12 months. Results of operations for Northern California include the Company's two previously existing northern California branch operations and the results of operations of Bridge (excluding certain business lines reflected in the CBL segment) beginning on July 1, 2015. Pre-tax income was $12.3 million and $1.6 million for the three months ended September 30, 2015 and 2014, respectively, and $17.8 million and $4.0 million for the nine months ended September 30, 2015 and 2014, respectively.

CBL reported a gross loan balance of $3.39 billion at September 30, 2015, flat from the prior quarter, and an increase of $1.13 billion during the last 12 months. Deposits were $2.03 billion at September 30, 2015, an increase of $85 million during the quarter, and an increase of $1.12 billion during the last 12 months. Pre-tax income was $26.1 million and $9.6 million for the three months ended September 30, 2015 and 2014, respectively, and $53.4 million and $21.7 million for the nine months ended September 30, 2015 and 2014, respectively.

Acquisition of Bridge Capital Holdings

The balance sheet of Bridge was consolidated into the Company on June 30, 2015 and the results of Bridge's operations are reflected in the Company's results beginning on July 1, 2015. Goodwill related to the acquisition of Bridge totaled $266.1 million as of September 30, 2015, inclusive of a $6.5 million increase for measurement period adjustments. The estimated fair values of certain net assets are still preliminary and are subject to additional measurement period adjustments.

Effective as of the third quarter 2015, the Company elected early adoption of Accounting Standards Update 2015-16, an amended Financial Accounting Standards Board standard related to the accounting for measurement period adjustments resulting from business combinations. Under the amended standard, adjustments to provisional amounts that are identified during the measurement period are recognized in the reporting period in which the adjustment amounts are determined rather than retrospectively adjusting the provisional amounts at the acquisition date and revising comparative information for prior periods presented in the financial statements. Accordingly, all measurement period adjustments identified during the quarter have been recognized in the current reporting period.

Attached to this press release is summarized financial information for the quarter ended September 30, 2015.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2015 financial results at 12:00 p.m. ET on Friday, October 16, 2015. Participants may access the call by dialing 1-888-317-6003 and using passcode 3606316 or via live audio webcast using the website link http://services.choruscall.com/links/wal151016. The webcast is also available via the Company’s website at www.westernalliancebancorp.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 2:00 p.m. ET October 16th through 9:00 a.m. ET November 16th by dialing 1-877-344-7529 passcode: 10071677.

Reclassifications

Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Use of Non-GAAP Financial Information

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

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to Bridge Capital Holdings, the performance of the combined company following the acquisition of Bridge, and any guidance, outlook or expectations relating to our business, financial and operating results, and future economic performance. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.

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

About Western Alliance Bancorporation

With more than $10 billion in assets, top-performing Western Alliance Bancorporation (NYSE: WAL) is one of the fastest-growing bank holding companies in the U.S. Its primary subsidiary, Western Alliance Bank, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior, personalized service and a full spectrum of deposit, lending, treasury management, international banking and online banking products and services. Western Alliance Bank operates full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank and Torrey Pines Bank. The bank also serves business customers through a robust national platform of specialized financial services including Corporate Finance, Renewable Energy Group, Equity Fund Resources, Life Sciences Group, Mortgage Warehouse Lending, Public Finance, Resort Finance, Technology Finance and Alliance Association Bank. For more information visit westernalliancebancorp.com. For more information visit westernalliancebancorp.com.

1 See Reconciliation of Non-GAAP Financial Measures beginning on page 18.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
         
 
Selected Balance Sheet Data:                              
30-Sep-15 30-Sep-14 Change %
(in millions)
Total assets $13,955.50 $10,288.80 35.6 %
Total loans, net of deferred fees 10,788.30 7,929.50 36.1
Securities and money market investments 1,993.60 1,597.30 24.8
Total deposits 11,610.40 8,697.60 33.5
Borrowings 300 330.8 (9.3 )
Qualifying debt 206.8 41.8 394.7
Stockholders' equity 1,583.70 1,003.10 57.9
Tangible common equity, net of tax (1) 1,213.70 837.1 45
 
Selected Income Statement Data:                          
 

For the Three Months Ended

September 30,

For the Nine Months Ended

September 30,

2015 2014 Change % 2015 2014 Change %
(in thousands) (in thousands)
Interest income $ 146,233 $ 105,554 38.5 % $ 373,813 $ 306,228 22.1 %
Interest expense 8,826   7,481   18.0 24,580   23,480   4.7
Net interest income 137,407 98,073 40.1 349,233 282,748 23.5
Provision for credit losses   419   (100.0 ) 700   4,426   (84.2 )
Net interest income after provision for credit losses 137,407 97,654 40.7 348,533 278,322 25.2
Non-interest income 13,826 6,073 127.7 17,568 16,229 8.3
Non-interest expense 72,916   49,859   46.2 188,158   151,572   24.1
Income from continuing operations before income taxes 78,317 53,868 45.4 177,943 142,979 24.5
Income tax expense 19,183   12,949   48.1 43,900   34,279   28.1
Income from continuing operations 59,134 40,919 44.5 134,043 108,700 23.3
Loss on discontinued operations, net of tax       (1,158 ) (100.0 )
Net income $ 59,134   $ 40,919   44.5 $ 134,043   $ 107,542   24.6
Diluted earnings per share from continuing operations $ 0.58   $ 0.46   26.1 $ 1.44   $ 1.23   17.1
Diluted loss per share from discontinued operations       (0.01 )
Diluted earnings per share available to common stockholders $ 0.58   $ 0.46   26.1 $ 1.44   $ 1.22   18.0
 
(1) See Reconciliation of Non-GAAP Financial Measures.
 
 
                                 
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
     
Common Share Data:

At or for the Three Months

Ended September 30,

At or for the Nine Months

Ended September 30,

2015 2014 Change % 2015 2014 Change %
Diluted earnings per share available to common stockholders $ 0.58 $ 0.46 26.1 % $ 1.44 $ 1.22 18.0 %
Book value per common share $ 14.79 $ 9.81 50.8
Tangible book value per share, net of tax (1) $ 11.86 $ 9.53 24.4
Average shares outstanding (in thousands):
Basic 100,776 86,723 16.2 92,345 86,495 6.8 %
Diluted 101,520 87,572 15.9 92,932 87,345 6.4
Common shares outstanding 102,305 87,849 16.5
 
Selected Performance Ratios:
Return on average assets (2) 1.73 % 1.63 % 6.1 % 1.50 % 1.47 % 2.0 %
Return on average tangible common equity (1, 2) 20.12 19.91 1.1 14.03 18.66 (24.8 )
Net interest margin (2) 4.59 4.43 3.6 4.45 4.41 0.9
Net interest spread 4.43 4.30 3.0 4.31 4.27 0.9
Efficiency ratio - tax equivalent basis (1) 46.84 47.05 (0.4 ) 46.12 49.04 (6.0 )
Loan to deposit ratio 92.92 91.17 1.9
 
Asset Quality Ratios:
Net recoveries to average loans outstanding (2) (0.08 )% (0.15 )% (46.7 )% (0.09 )% (0.09 )% %
Nonaccrual loans to gross loans 0.44 0.95 (53.7 )
Nonaccrual loans and repossessed assets to total assets 0.76 1.23 (38.2 )
Loans past due 90 days and still accruing to total loans 0.05 0.04 25.0
Allowance for credit losses to gross loans 1.09 1.38 (21.0 )
Allowance for credit losses to nonaccrual loans 245.48 145.37 68.9
 
Capital Ratios (1):                                  
  Basel III Basel I
September 30, 2015 June 30, 2015 September 30, 2014
Tangible common equity 8.9 % 8.7 %

8.2

%

Common Equity Tier 1 (3) 9.1 9.1 9.0
Tier 1 Leverage ratio (3) 9.9 10.0 10.1
Tier 1 Capital (3) 10.1 10.2 11.0
Total Capital (3) 12.1 12.2 12.2
 
(1)     See Reconciliation of Non-GAAP Financial Measures.
(2) Annualized for the three and nine month periods ended September 30, 2015 and 2014.
(3) Basel III capital ratios are preliminary until the Call Report is filed.
 
 
                       
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
 

Three Months Ended

September 30,

Nine Months Ended

September 30,

2015 2014 2015 2014
(dollars in thousands)
Interest income:
Loans $ 133,087 $ 94,436 $ 338,946 $ 271,823
Investment securities 12,039 10,535 31,103 32,754
Other 1,107   583   3,764   1,651  
Total interest income 146,233   105,554   373,813   306,228  
Interest expense:
Deposits 5,550 5,172 16,058 14,767
Borrowings 1,268 1,866 5,622 7,406
Qualifying debt 2,008   443   2,900   1,307  
Total interest expense 8,826   7,481   24,580   23,480  
Net interest income 137,407 98,073 349,233 282,748
Provision for credit losses   419   700   4,426  
Net interest income after provision for credit losses 137,407   97,654   348,533   278,322  
Non-interest income:
Service charges 4,327 2,457 10,344 7,777
Bank owned life insurance 984 1,136 2,733 3,044
(Losses) gains on sales of investment securities, net (62 ) 181 582 384
Unrealized gains (losses) on assets and liabilities measured at fair value, net 5,371 896 (2,684 ) (145 )
Loss on extinguishment of debt (502 ) (81 ) (502 )
Other 3,206   1,905   6,674   5,671  
Total non-interest income 13,826   6,073   17,568   16,229  
Non-interest expenses:
Salaries and employee benefits 43,660 32,230 108,607 93,536
Occupancy 5,915 4,479 15,677 13,458
Legal, professional and directors' fees 4,052 3,022 12,658 10,853
Data Processing 4,338 2,404 10,147 7,713
Insurance 3,375 1,996 7,739 6,476
Loan and repossessed asset expenses 1,099 901 3,473 2,937
Card expense 757 609 1,844 1,739
Marketing 747 378 1,587 1,443
Intangible amortization 704 281 1,266 1,180
Net gain on sales and valuations of repossessed and other assets (104 ) (1,874 ) (1,673 ) (4,251 )
Acquisition / restructure expense 835 15 8,836 198
Other 7,538   5,418   17,997   16,290  
Total non-interest expense 72,916   49,859   188,158   151,572  
Income from continuing operations before income taxes 78,317 53,868 177,943 142,979
Income tax expense 19,183   12,949   43,900   34,279  
Income from continuing operations $ 59,134 $ 40,919 $ 134,043 $ 108,700
Loss from discontinued operations, net of tax       (1,158 )
Net income $ 59,134   $ 40,919   $ 134,043   $ 107,542  
Preferred stock dividends 176   353   599   1,058  
Net income available to common stockholders $ 58,958   $ 40,566   $ 133,444   $ 106,484  
Diluted net income per share $ 0.58   $ 0.46   $ 1.44   $ 1.22  
 
 
                             
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
 
Three Months Ended
Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
(in thousands, except per share data)
Interest income:
Loans $ 133,087 $ 105,468 $ 100,391 $ 99,099 $ 94,436
Investment securities 12,039 9,276 9,788 10,455 10,535
Other 1,107   1,874   783   597   583  
Total interest income 146,233   116,618   110,962   110,151   105,554  
Interest expense:
Deposits 5,550 5,362 5,146 5,245 5,172
Borrowings 1,268 2,087 2,267 2,314 1,866
Qualifying debt 2,008   451   441   447   443  
Total interest expense 8,826   7,900   7,854   8,006   7,481  
Net interest income 137,407 108,718 103,108 102,145 98,073
Provision for credit losses     700   300   419  
Net interest income after provision for credit losses 137,407   108,718   102,408   101,845   97,654  
Non-interest income:
Service charges 4,327 3,128 2,889 2,791 2,457
Bank owned life insurance 984 772 977 1,464 1,136
(Losses) gains on sales of investment securities, net (62 ) 55 589 373 181
Unrealized gains (losses) on assets and liabilities measured at fair value, net 5,371 (7,746 ) (309 ) 1,357 896
Loss on extinguishment of debt (81 ) (502 )
Other 3,206   1,681   1,787   2,432   1,905  
Total non-interest income 13,826   (2,191 ) 5,933   8,417   6,073  
Non-interest expenses:
Salaries and employee benefits 43,660 32,406 32,541 33,094 32,230
Occupancy 5,915 4,949 4,813 4,698 4,479
Legal, professional, and directors' fees 4,052 4,611 3,995 3,425 3,022
Data Processing 4,338 2,683 3,126 2,345 2,404
Insurance 3,375 2,274 2,090 2,386 1,996
Loan and repossessed asset expenses 1,099 1,284 1,090 1,486 901
Card expense 757 613 474 678 609
Marketing 747 463 377 857 378
Intangible amortization 704 281 281 281 281
Net gain on sales and valuations of repossessed and other assets (104 ) (1,218 ) (351 ) (1,102 ) (1,874 )
Acquisition / restructure expense 835 7,842 159 15
Other 7,538   5,021   5,438   7,594   5,418  
Total non-interest expense 72,916   61,209   54,033   55,742   49,859  
Income from continuing operations before income taxes 78,317 45,318 54,308 54,520 53,868
Income tax expense 19,183   10,599   14,118   14,111   12,949  
Net income $ 59,134   $ 34,719   $ 40,190   $ 40,409   $ 40,919  
Preferred stock dividends 176   247   176   329   353  
Net Income available to common stockholders $ 58,958   $ 34,472   $ 40,014   $ 40,080   $ 40,566  
Diluted net income per share $ 0.58   $ 0.39   $ 0.45   $ 0.46   $ 0.46  
 
 
                             
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
 
Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014
(in millions)
Assets:
Cash and due from banks $ 325.4 $ 700.2 $ 492.4 $ 164.4 $ 258.8
Securities purchased under agreement to resell   58.1        
Cash and cash equivalents 325.4 758.3 492.4 164.4 258.8
Securities and money market investments 1,993.6 1,531.9 1,453.7 1,547.8 1,597.3
Loans held for sale 24.4 39.4
Loans held for investment:
Commercial 4,960.4 4,759.7 3,725.2 3,532.3 3,293.2
Commercial real estate - non-owner occupied 2,210.7 2,195.0 2,113.8 2,052.6 1,993.3