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

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

Fourth Quarter 2012 Highlights:

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

Financial Performance

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

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