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Western Alliance Bancorporation$59.19$.991.70%

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 Western Alliance Reports Fourth Quarter and Full Year 2016 Financial Results
   Thursday, January 26, 2017 5:54:04 PM ET

Western Alliance Bancorporation (WAL ):

 
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FOURTH QUARTER AND FULL YEAR 2016 FINANCIAL RESULTS
                                                                                                                          
--------------------------------------------------                      ----------------------------------------------------                      ----------------------------------------                      -------------------------------------------                      -----------------------------------
                    Net income                                                           Earnings per share                                                    Interest margin                                                Efficiency ratio                                              Book value per
                                                                                                                                                                                                                                                                                             common share
--------------------------------------------------                      ----------------------------------------------------                      ----------------------------------------                      -------------------------------------------                      -----------------------------------
                   $69.8 million                                                                $0.67                                                               4.57%                                                          45.47%                                                       $18.00
$73.7 million, excluding acquisition / restructure                      $0.70 per share, excluding acquisition / restructure                      4.40%, excluding acquired loan accretion                       42.41%, excluding acquisition / restructure                      $15.17, excluding intangible assets
--------------------------------------------------                      ----------------------------------------------------                      ----------------------------------------                      -------------------------------------------                      -----------------------------------
                                                                                                                                                                                                                                                                                  


CEO COMMENTARY:

"Western Alliance achieved another year of record performance with earnings per share of $2.50, up 23% from 2015," said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. "For the fourth quarter 2016, operating EPS was 70 cents, also up 23% from 57 cents in the prior year period. Loans and deposits each climbed over $2 billion during the year, while the interest margin remained steady and operating efficiency again improved. For the year, net loan losses were only 0.02% of total loans while non-performing assets declined." Sarver continued, "Putting it all together, our exceptional team delivered for shareholders with a nearly 18% return on tangible equity(1) and a 21% increase in tangible book value per share(1) in 2016. With our solid level of capital and earnings momentum, Western Alliance is well positioned to continue its strong growth and high returns in 2017."

                                                                  
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                              LINKED-QUARTER BASIS                                                                                                            FULL YEAR
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FINANCIAL HIGHLIGHTS:
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? Net income and earnings per share of $69.8 million and $0.67,                                              ? Net income of $259.8 million and earnings per share of $2.50,
compared to $67.1 million and $0.64, respectively                                                                         compared to $194.2 million and $2.03, respectively
? Net operating revenue of $185.8 million, constituting growth of                                            ? Net operating revenue of $699.1 million, constituting
$2.6 million, compared to an increase in operating non-interest                                                           year-over-year growth of 34.0%, or $177.3 million, compared to an
expenses of $0.3 million(1)                                                                                               increase in operating non-interest expenses of 25.6%, or $64.9
                                                                                                                          million(1)
? Operating pre-provision net revenue of $103.1 million, up $2.3                                             ? Operating pre-provision net revenue of $380.4 million, up $112.5
million from $100.8 million(1)                                                                                            million from $267.9 million (1)
                                                                  
------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------------------------------
FINANCIAL POSITION RESULTS:
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? Total loans of $13.21 billion, up $175 million                                                             ? Increase in total loans of $2.07 billion, including the April
                                                                                                                          20, 2016 acquisition of the hotel franchise finance ("HFF") loan
                                                                                                                          portfolio
? Total deposits of $14.55 billion, up $107 million                                                          ? Total deposit increases of $2.52 billion
? Stockholders’ equity of $1.89 billion, up $34 million                                                      ? Increase in stockholders’ equity of $300 million
                                                                  
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LOANS AND ASSET QUALITY:
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? Nonperforming assets (nonaccrual loans and repossessed assets)                                             ? Nonperforming assets to total assets of 0.51%, compared to 0.65%
decreased to 0.51% of total assets, from 0.53%
? Annualized net loan (recoveries) charge-offs to average loans                                              ? Net loan charge-offs (recoveries) to average loans outstanding
outstanding of (0.03)%, compared to 0.04%                                                                                 of 0.02%, compared to (0.06)%
                                                                  
------------------------------------------------------------------------------- -------------------- -------------------- -------------------------------------------------------------------------------
KEY PERFORMANCE METRICS:
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? Net interest margin of 4.57%, compared to 4.55%                                                            ? Net interest margin of 4.58%, compared to 4.51%
? Return on average assets and return on tangible common equity(1)                                           ? Return on average assets and return on tangible common equity(1)
of 1.63% and 17.59%, compared to 1.58% and 17.50%, respectively                                                           of 1.61% and 17.71%, compared to 1.56% and 17.83%, respectively
? Tangible common equity ratio of 9.4%, compared to 9.3%(1)                                                  ? Tangible common equity ratio of 9.4%, compared to 9.2%(1)
? Tangible book value per share, net of tax, of $15.17, an                                                   ? Tangible book value per share, net of tax, of $15.17, an
increase from $14.84(1)                                                                                                   increase of 21.0% from $12.54(1)
? Operating efficiency ratio of 42.4%, compared to 43.0%(1)                                                  ? Operating efficiency ratio of 43.4%, compared to 45.8%(1)
                                                                                                                           

(1) See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income was $175.3 million in the fourth quarter 2016, an increase of $2.8 million from $172.5 million in the third quarter 2016, and an increase of $32.0 million, or 22.3%, compared to the fourth quarter 2015. Net interest income in the fourth quarter 2016 includes $7.0 million of total accretion income from acquired loans, compared to $8.8 million in the third quarter 2016, and $5.0 million in the fourth quarter 2015. For 2016, net interest income was $657.2 million, an increase of $164.6 million, or 33.4%, from $492.6 million in 2015. Net interest income for 2016 includes $29.3 million (of which, $13.3 million related to the acquisition of HFF) of total accretion from acquired loans, compared to $17.1 million in 2015.

The Company’s net interest margin in the fourth quarter 2016 was 4.57%, an increase from 4.55% the third quarter 2016, and a decrease from 4.67% in the fourth quarter 2015. The increase in net interest margin from the third quarter 2016 primarily relates to an increase in yield from other interest earning assets resulting from an increase in dividends on FHLB stock. The decrease in net interest margin from the fourth quarter 2015 primarily relates to an increase in interest expense resulting from the issuance of long-term subordinated debt in June 2016 as well as an increase in the cost of interest-bearing deposits. For 2016, net interest margin was 4.58%, compared to 4.51% in 2015. The increase in net interest margin from the prior year relates primarily to an increase in loan yield resulting from additional income from the HFF acquisition, partially offset by higher costs of deposits and qualifying debt.

Operating non-interest income was $10.5 million for the fourth quarter 2016, compared to $10.7 million for the third quarter 2016, and $9.4 million for the fourth quarter 2015.(1)For 2016, operating non-interest income was $41.8 million, an increase of $12.6 million, or 43.2%, compared to $29.2 million in 2015.(1)

Net operating revenue was $185.8 million for the fourth quarter 2016, an increase of $2.6 million, compared to $183.2 million for the third quarter 2016, and an increase of $33.0 million, or 21.6%, compared to $152.8 million for the fourth quarter 2015.(1)For 2016, net operating revenue was $699.0 million, an increase of $177.2 million, or 34.0%, compared to $521.8 million in 2015.(1)

Operating non-interest expense was $82.7 million for the fourth quarter 2016, compared to $82.4 million for the third quarter 2016, and $72.8 million for the fourth quarter 2015.(1) The Company’s operating efficiency ratio(1) on a tax equivalent basis was 42.4% for the fourth quarter 2016, an improvement from 43.0% for the third quarter 2016, and from 45.2% for the fourth quarter 2015. For 2016, operating non-interest expense was $318.7 million, an increase of $64.9 million, or 25.6%, compared to $253.8 million in 2015.(1)

Net income was $69.8 million for the fourth quarter 2016, an increase of $2.7 million from $67.1 million for the third quarter 2016, and an increase of $11.3 million, or 19.3%, from $58.5 million for the fourth quarter 2015. Earnings per share was $0.67 for the fourth quarter 2016, compared to $0.64 for the third quarter 2016, and $0.57 for the fourth quarter 2015. Excluding acquisition / restructure expense, net income and earnings per share for the fourth quarter 2016 was $73.7 million and $0.70, respectively, compared to $68.8 million and $0.66, respectively, for the third quarter 2016. There were no acquisition / restructure expenses in the fourth quarter 2015. For 2016, net income was $259.8 million, an increase of $65.6 million, or 33.7%, compared to $194.2 million in 2015. Earnings per share for 2016 was $2.50, an increase of 23.2%, compared to $2.03 in 2015.

The Company views its operating pre-provision net revenue ("PPNR") 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 fourth quarter 2016, the Company’s operating PPNR was $103.1 million, up from $100.8 million in the third quarter 2016, and up 29.0% from $79.9 million in the fourth quarter 2015.(1)The non-operating items(1) for the fourth quarter 2016 consisted primarily of acquisition / restructure expenses of $6.0 million related to the HFF acquisition and system conversion costs. For 2016, operating PPNR was $380.3 million, an increase of $112.3 million, or 41.9%, from $268.0 million in 2015.(1)

The Company had 1,557 full-time equivalent employees and 48 offices at December 31, 2016, compared to 1,446 employees and 47 offices at December 31, 2015.

Balance Sheet

Gross loans totaled $13.21 billion at December 31, 2016, an increase of $175 million from $13.03 billion at September 30, 2016, and an increase of $2.07 billion from $11.14 billion at December 31, 2015. The year-over-year increase is comprised of $1.28 billion from HFF as of April 20, 2016 and the remainder from organic loan growth. Consistent with accounting principles generally accepted in the United States ("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. At December 31, 2016, the allowance for credit losses was 0.95% of total loans, compared to 0.94% at September 30, 2016, and 1.07% at December 31, 2015. The allowance for credit losses as a percent of total loans, adjusted to include credit discounts on acquired loans(1), was 1.30% at December 31, 2016, compared to 1.37% at September 30, 2016, and 1.25% at December 31, 2015.

Deposits totaled $14.55 billion at December 31, 2016, an increase of $107 million from $14.44 billion at September 30, 2016, and an increase of $2.52 billion from $12.03 billion at December 31, 2015. The increase from both the prior quarter and from December 31, 2015 is the result of organic deposit growth. Non-interest bearing deposits were $5.63 billion at December 31, 2016, compared to $5.62 billion at September 30, 2016, and $4.09 billion at December 31, 2015. Non-interest bearing deposits comprised 38.7% of total deposits at December 31, 2016, compared to 38.9% at September 30, 2016, and 34.0% at December 31, 2015. The proportion of savings and money market balances to total deposits increased to 42.1% from 41.3% at September 30, 2016, and decreased from 44.0% at December 31, 2015. Certificates of deposit as a percentage of total deposits were 10.0% at December 31, 2016, compared to 11.0% at September 30, 2016, and 13.4% at December 31, 2015. The Company’s ratio of loans to deposits was 90.8% at December 31, 2016, compared to 90.2% at September 30, 2016, and 92.6% at December 31, 2015.

Borrowings totaled $80 million at December 31, 2016, an increase from zero at September 30, 2016, and a decrease of $70 million from $150 million at December 31, 2015. The increase from the prior quarter is due to FHLB overnight advances. The decrease from the prior year is due primarily to the payoff of short-term FHLB advances.

Qualifying debt totaled $368 million at December 31, 2016, a decrease from $383 million at September 30, 2016, and an increase of $158 million from $210 million at December 31, 2015. The increase from the prior year is primarily related to the issuance of $175 million in subordinated debt in June 2016.

Stockholders’ equity at December 31, 2016 was $1.89 billion, compared to $1.86 billion at September 30, 2016, and $1.59 billion at December 31, 2015. The increase from the prior year relates primarily to at-the-market stock issuances and net income for the respective period, which was partially offset by valuation declines on available-for-sale investment securities.

At December 31, 2016, tangible common equity, net of tax, was 9.4% of tangible assets(1) and total capital was 13.2% of risk-weighted assets. The Company’s tangible book value per share(1) was $15.17 at December 31, 2016, up 21.0% from December 31, 2015.

Total assets increased to $17.20 billion at December 31, 2016, from $17.04 billion at September 30, 2016, and increased 20.5% from $14.28 billion at December 31, 2015. The increase in total assets from the prior year relates primarily to the HFF acquisition, organic loan growth, and an increase in investment securities resulting from increased deposits.

Asset Quality

The provision for credit losses was $1.0 million for the fourth quarter 2016, compared to $2.0 million for the third quarter 2016, and $2.5 million for the fourth quarter 2015. Net loan (recoveries) charge-offs in the fourth quarter 2016 were $(0.8) million, or (0.03)% of average loans (annualized), compared to $1.2 million, or 0.04%, in the third quarter 2016, and $0.5 million, or 0.02%, in the fourth quarter 2015.

Nonaccrual loans decreased $0.3 million to $40.3 million during the quarter. Loans past due 90 days and still accruing interest totaled $1.1 million at December 31, 2016, compared to $2.8 million at September 30, 2016, and $3.0 million at December 31, 2015. Loans past due 30-89 days and still accruing interest totaled $6.3 million at quarter end, a decrease from $18.4 million at September 30, 2016, and a decrease from $34.5 million at December 31, 2015.

Repossessed assets totaled $47.8 million at quarter end, a decrease of $1.8 million from $49.6 million at September 30, 2016, and an increase of $3.9 million from $43.9 million at December 31, 2015. Adversely graded loans and non-performing assets totaled $342.9 million at quarter end, an increase of $8.0 million from $334.9 million at September 30, 2016, and a decrease of $9.9 million from $352.8 million at December 31, 2015.

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 11.8% at December 31, 2016, from 12.3% at September 30, 2016, and from 15.1% at December 31, 2015.(1)

(1) See reconciliation of Non-GAAP Financial Measures.

Segment Highlights

The Company’s reportable segments are aggregated primarily based on geographic location, services offered, and markets served. The Company’s regional segments, which include, Arizona, Nevada, Southern California, and Northern California provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: Alliance Bank of Arizona, Bank of Nevada, First Independent Bank, Torrey Pines Bank, and Bridge Bank.

The Company’s National Business Lines ("NBL") segment provides specialized banking services to niche markets. With the purchase of the HFF loan portfolio, management has created a new HFF operating segment, which is now included as one of the Company’s NBL reportable segments. The Company’s other NBL reportable segments include Homeowner Associations ("HOA") Services, Public & Nonprofit Finance, Technology & Innovation, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than our other segments, though still predominately located within our core market areas. The HOA Services NBL corresponds to the Alliance Association Bank division. The newly created HFF NBL includes the hotel franchise loan portfolio purchased from GE on April 20, 2016. The operations of Public and Nonprofit Finance are combined into one reportable segment. The Technology & Innovation NBL includes the operations of Equity Fund Resources, the Life Sciences Group, the Renewable Resource Group, and Technology Finance. The Other NBLs segment consists of the operations of Corporate Finance, Mortgage Warehouse Lending, and Resort Finance.

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 NBL segments include loan and deposit growth, asset quality, and pre-tax income.

The regional segments reported gross loan balances of $7.54 billion at December 31, 2016, an increase of $3 million during the quarter, and an increase of $44 million during the year. Arizona, Nevada, and Northern California had loan growth during the quarter of $18 million, $28 million, and $23 million, respectively, which was offset by a decrease of $67 million in Southern California. The growth in loans during the year was primarily driven by an increase of $144 million in Arizona, which was partially offset by decreases of $93 million and $12 million, respectively, in Northern California and Nevada. Total deposits for the regional segments were $11.50 billion, an increase of $97 million during the quarter, and an increase of $1.79 billion during the year. Nevada, Southern California, and Northern California generated increased deposits during the quarter of $20 million, $128 million, and $39 million, respectively, which was partially offset by a decrease of $89 million in Arizona. Each of the regional segments generated increased deposits during the year, with Arizona contributing the largest increase of $963 million, followed by Southern California and Nevada with increases of $480 million and $349 million, respectively.

Pre-tax income for the regional segments was $76.4 million for the three months ended December 31, 2016, a decrease of $4.2 million from the three months ended September 30, 2016, and an increase of $11.2 million from the three months ended December 31, 2015. Nevada and Northern California had the largest decreases in pre-tax income of $3.1 million and $2.2 million, respectively, compared to the three months ended September 30, 2016, which were partially offset by increases in Arizona and Southern California of $0.9 million, $0.2 million, respectively. All regional segments had increases in pre-tax income from the three months ended December 31, 2015, with Arizona and Southern California contributing the largest increases of $8.3 million and $4.0 million, respectively. For the year ended December 31, 2016, the regional segments reported total pre-tax income of $296.9 million, an increase of $69.0 million compared to the year ended December 31, 2015. All regional segments had increases in pre-tax income, with Arizona and Northern California contributing the largest increases of $33.0 million and $14.3 million, respectively.

The NBL segments reported gross loan balances of $5.65 billion at December 31, 2016, an increase of $178 million during the quarter, and an increase of $2.05 billion during the year. The increase in loans for the NBL segments compared to the prior quarter relates primarily to the Other NBLs and Technology & Innovation segments, which increased loans by $103 million and $77 million, respectively. During the year, the increases were driven by the HFF (as a result of the purchase), Other NBLs, and Technology & Innovation segments, which increased loans by $1.29 billion, $497 million, and $241 million, respectively. Total deposits for the NBL segments were $2.93 billion, an increase of $48 million during the quarter, and an increase of $794 million during the year. The HOA Services segment increased deposits by $77 million during the quarter, which was partially offset by decreased deposits for the Technology & Innovation segment of $29 million. The increase of $794 million during the year is the result of growth in the HOA Services and Technology & Innovation segments of $598 million and $196 million, respectively.

Pre-tax income for the NBL segments was $40.5 million for the three months ended December 31, 2016, an increase of $2.5 million from the three months ended September 30, 2016, and an increase of $15.3 million from the three months ended December 31, 2015. The increase in pre-tax income from the prior quarter relates primarily to the Other NBLs segment, which increased $2.9 million. This increase was offset by decreases in pre-tax income from the Technology & Innovation and HOA Services segments of $0.4 million and $0.2 million, respectively. The HFF and HOA Services segments had the largest increases in pre-tax income of $10.4 million and $3.2 million, respectively, from the three months ended December 31, 2015, which were offset by decreases in pre-tax income of $0.4 million and $0.7 million from the Public & Nonprofit and Technology & Innovation segments, respectively. Pre-tax income for the NBLs for the year ended December 31, 2016 totaled $140.0 million, compared to $78.6 million for the year ended December 31, 2015. The largest increases in pre-tax income compared to the year ended December 31, 2015 were in the HFF (as a result of the purchase), Technology & Innovation, and HOA Services segments, which increased $30.0 million, $23.7 million, and $10.1 million, respectively.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter 2016 financial results at 12:00 p.m. ET on Friday, January 27, 2017. Participants may access the call by dialing 1-888-317-6003 and using passcode 8260547 or via live audio webcast using the website link https://services.choruscall.com/links/wal170127.html. The webcast is also available via the Company’s website at www.westernalliancebancorporation.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 27th through 9:00 a.m. ET February 27th by dialing 1-877-344-7529 passcode: 10099229.

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 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.

Early Adoption of Accounting Standards

During the first quarter 2016, the Company elected to early adopt Accounting Standards Update ("ASU") 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU require that all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement rather than as additional paid-in capital as required under previous generally accepted accounting principles. Due to the early adoption of ASU 2016-09, during the three months ended March 31, 2016, the Company recognized a $3.9 million tax benefit as a reduction of income tax expense (that previously would have been reflected as additional paid-in capital). For the year ended December 31, 2016, the Company recognized a tax benefit of $4.1 million as a result of the new guidance.

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 our business, financial and operating results, and future economic performance, including our recent domestic select-service hotel franchise finance loan portfolio acquisition. 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, 2015 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; additional regulatory requirements resulting from our continued growth; 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 $17 billion in assets, Western Alliance Bancorporation (WAL ) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior 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, Equity Fund Resources, Hotel Franchise Finance, Life Sciences Group, Mortgage Warehouse Lending, Public and Nonprofit Finance, Renewable Resource Group, Resort Finance, Technology Finance and Alliance Association Bank. For more information, visit westernalliancebancorporation.com.

                                                                                                                                                                                                                                                    
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
                                                                 
Selected Balance Sheet Data:
                                                                                                                                                          December 31,
                                                                                                        -----------------------------------------------------------------------------------------------------------------
                                                                                                                     2016                                               2015                                   Change %
                                                                                                        ------------------------------                     ------------------------------                     -----------
                                                                                                                                          (in millions)
  Total assets                                                                                                             $ 17,200.8                                         $ 14,275.1                       20.5 %
  Total loans, net of deferred fees                                                                                          13,208.5                                           11,136.7                       18.6
  Securities and money market investments                                                                                     2,767.8                                            2,042.2                       35.5
  Total deposits                                                                                                             14,549.8                                           12,030.6                       20.9
  Borrowings                                                                                                                     80.0                                              150.0                      (46.7 )
  Qualifying debt                                                                                                               367.9                                              210.3                       74.9
  Stockholders’ equity                                                                                                        1,891.5                                            1,591.5                       18.9
  Tangible common equity, net of tax (1)                                                                                      1,593.6                                            1,292.2                       23.3
                                                                                                                                                                                                                                                                                                                                                                        
Selected Income Statement Data:
                                                                                                                                             For the Three Months Ended December 31,                                                                                                                            For the Year Ended December 31,
                                                                                                        -----------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------
                                                                                                                     2016                                               2015                                   Change %                                                        2016                                              2015                                        Change %
                                                                                                        ------------------------------                     ------------------------------                     -----------                                          -----------------------------                     -----------------------------                     ---------------------
                                                                                                                              (in thousands, except per share data)                                                                                                                     (in thousands, except per share data)
  Interest income                                                                                                          $  187,411                                         $  151,331                       23.8 %                                                                 $ 700,506                                         $ 525,144                            33.4 %
  Interest expense                                                                                          12,142                           7,988                       52.0                                                   43,293                         32,568                            32.9
                                                                                                        -------------------- --------                      -------------------- --------                                                                           -------------------- -------                      -------------------- -------
    Net interest income                                                                                                       175,269                                            143,343                       22.3                                                                     657,213                                           492,576                            33.4
  Provision for credit losses                                                                                1,000                           2,500                      (60.0 )                                                  8,000                          3,200                              NM
                                                                                                        -------------------- --------                      -------------------- --------                                                                           -------------------- -------                      -------------------- -------
    Net interest income after provision for credit losses                                                                     174,269                                            140,843                       23.7                                                                     649,213                                           489,376                            32.7
  Non-interest income                                                                                                          10,540                                              9,479                       11.2                                                                      42,915                                            29,768                            44.2
  Non-interest expense                                                                                      88,645                          72,448                       22.4                                                  330,949                        260,606                            27.0
                                                                                                        -------------------- --------                      -------------------- --------                                                                           -------------------- -------                      -------------------- -------
    Income before income taxes                                                                                                 96,164                                             77,874                       23.5                                                                     361,179                                           258,538                            39.7
  Income tax expense                                                                                        26,364                          19,348                       36.3                                                  101,381                         64,294                            57.7
                                                                                                        -------------------- --------                      -------------------- --------                                                                           -------------------- -------                      -------------------- -------
    Net income                                                                                                             $   69,800                                         $   58,526                       19.3                                                                   $ 259,798                                         $ 194,244                            33.7
                                                                                                        ==================== ========                      ==================== ========                                                                           ==================== =======                      ==================== =======
  Diluted earnings per share available to common stockholders                                                              $     0.67                                         $     0.57                       17.5                                                                   $    2.50                                         $    2.03                            23.2
                                                                                                        ==================== ========                      ==================== ========                                                                           ==================== =======                      ==================== =======
                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                        
(1) See Reconciliation of Non-GAAP Financial Measures.
NM: Changes +/- 100% are not meaningful.
 
                                                                                                                                                                                                       
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
                                                                     
Common Share Data:
                                                                                                                               At or for the Three Months Ended December 31,                                                                                                 For the Year Ended December 31,
                                                                                                            -----------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------
                                                                                                                2016                                2015                             Change %                                                   2016                                    2015                                    Change %
                                                                                                            -----------                       -------------                        ----------                                            ---------------                        ------------------                        -------------------
  Diluted earnings per share available to common stockholders                                                      $0.67                          $    0.57                         17.5 %                                                   $    2.50                               $   2.03                                   23.2 %
  Book value per common share                                                                                      18.00                              15.44                         16.6
  Tangible book value per share, net of tax (1)                                                                    15.17                              12.54                         21.0
  Average shares outstanding (in thousands):
    Basic                                                                                                        103,788                            101,174                          2.6                                                       103,042                                 94,570                                    9.0
    Diluted                                                                                                      104,765                            102,006                          2.7                                                       103,843                                 95,219                                    9.1
  Common shares outstanding                                                                                      105,071                            103,087                          1.9
Selected Performance Ratios:
  Return on average assets (2)                                                                                1.63     %                               1.67 %                       (2.4 )%                                                       1.61 %                                 1.56 %                                  3.2 %
  Return on average tangible common equity (1, 2)                                                            17.59                                    18.64                         (5.6 )                                                       17.71                                  17.83                                   (0.7 )
  Net interest margin (2)                                                                                     4.57                                     4.67                         (2.1 )                                                        4.58                                   4.51                                    1.6
  Net interest spread                                                                                         4.34                                     4.52                         (4.0 )                                                        4.38                                   4.36                                    0.5
  Efficiency ratio - tax equivalent basis (1)                                                                42.41                                    45.19                         (6.2 )                                                       43.42                                  45.85                                   (5.3 )
  Loan to deposit ratio                                                                                      90.78                                    92.57                         (1.9 )
                                                                                                                                                                                                                                                                                                                           
Asset Quality Ratios:
  Net (recoveries) charge-offs to average loans outstanding (2)                                              (0.03    )%                               0.02 %                         NM                                                          0.02 %                                (0.06 )%                                  NM
  Nonaccrual loans to gross loans                                                                             0.31                                     0.44                        (29.5 )
  Nonaccrual loans and repossessed assets to total assets                                                     0.51                                     0.65                        (21.5 )
  Loans past due 90 days and still accruing to gross loans                                                    0.01                                     0.03                        (66.7 )
  Allowance for credit losses to gross loans                                                                  0.95                                     1.07                        (11.2 )
  Allowance for credit losses to nonaccrual loans                                                           309.65                                   246.10                         25.8
                                                                                                                                                                                                                                                                                                                           
Capital Ratios (1):
                                                                                                                                                                                                                                          December 31, 2016                      September 30, 2016                         December 31, 2015
                                                                                                                                                                                                                                         ------------------                     ---------------------                     ---------------------
  Tangible common equity                                                                                                                                                                                                                           9.4 %                                  9.3 %                                  9.2 %
  Common Equity Tier 1 (3)                                                                                                                                                                                                                        10.0                                    9.8                                    9.7
  Tier 1 Leverage ratio (3)                                                                                                                                                                                                                        9.9                                    9.6                                    9.8
  Tier 1 Capital (3)                                                                                                                                                                                                                              10.5                                   10.3                                   10.2
  Total Capital (3)                                                                                                                                                                                                                               13.2                                   13.1                                   12.2
    
                                             
(1) See Reconciliation of Non-GAAP Financial Measures.
(2) Annualized for the three month periods ended December 31, 2016
and 2015.
(3) Capital ratios for December 31, 2016 are preliminary until the
Call Report is filed.
(4) NM: Changes +/- 100% are not meaningful.
                                             
                                                                                                                                                                                                                                                         
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
                                                                                                                                                                                                                                                                                               
                                                                                                                                                                 Three Months Ended December 31,                                                                                                                                                   Year Ended December 31,
                                                                                                             ---------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       2016                                                                          2015                                                                                               2016                                                                       2015
                                                                                                             ---------------------------------------------------------                     ---------------------------------------------------------                                          ---------------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                               (dollars in thousands, except per share data)
Interest income:
  Loans                                                                                                                         $        168,881                                                              $        137,471                                                                                   $        636,596                                                              $ 476,417
  Investment securities                                                                                                                   16,725                                                                        12,454                                                                                             58,540                                                                 43,557
  Other                                                                                                                 1,805                                   1,406                                                        5,370                            5,170  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Total interest income                                                                                             187,411                                 151,331                                                      700,506                          525,144  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
Interest expense:
  Deposits                                                                                                                                 7,729                                                                         5,737                                                                                             29,722                                              21,795
  Qualifying debt                                                                                                                          4,252                                                                         2,107                                                                                             12,998                                                                  5,007
  Borrowings                                                                                                              161                                     144                                                          573                            5,766  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Total interest expense                                                                                             12,142                                   7,988                                                       43,293                           32,568  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Net interest income                                                                                                                  175,269                                                                       143,343                                                                                            657,213                                                                492,576
Provision for credit losses                                                                                             1,000                                   2,500                                                        8,000                            3,200  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Net interest income after provision for credit losses                                                             174,269                                 140,843                                                      649,213                          489,376  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
Non-interest income:
  Service charges                                                                                                                          4,865                                                                         4,326                                                                                             18,824                                                                 14,782
  SBA/ warrant income                                                                                                                      1,353                                                                           733                                                                                              4,181                                                                  1,579
  Card income                                                                                                                              1,170                                                                         1,013                                                                                              4,438                                                                  3,679
  Income from bank owned life insurance                                                                                                      904                                                                         1,166                                                                                              3,762                                                                  3,899
  Lending related income and gains (losses) on sale of loans, net                                                                            488                                                                           364                                                                                              3,770                                                                    369
  Gain (loss) on sales of investment securities, net                                                                                          58                                                                            33                                                                                              1,059                                                                    615
  Loss on extinguishment of debt                                                                                                  --                                                                --                                                                                     --                                                                    (81 )
  Other                                                                                                                 1,702                                   1,844                                                        6,881                            4,926  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Total non-interest income                                                                                          10,540                                   9,479                                                       42,915                           29,768  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
Non-interest expenses:
  Salaries and employee benefits                                                                                                          49,702                                                                        41,221                                                                                            188,810                                                                149,828
  Legal, professional and directors’ fees                                                                                                  7,600                                                                         5,890                                                                                             24,610                                                                 18,548
  Occupancy                                                                                                                                6,944                                                                         6,503                                                                                             27,303                                                                 22,180
  Data processing                                                                                                                          4,504                                                                         4,106                                                                                             18,660                                                                 13,200
  Insurance                                                                                                                                3,468                                                                         3,264                                                                                             12,898                                                                 11,003
  Marketing                                                                                                                                1,164                                                                         1,298                                                                                              3,596                                                                  2,885
  Intangible amortization                                                                                                                    697                                                                           704                                                                                              2,788                                                                  1,970
  Card expense                                                                                                                               689                                                                           920                                                                                              2,936                                                                  2,764
  Loan and repossessed asset expenses                                                                                                        477                                                                           904                                                                                              2,999                                                                  4,377
  Net (gain) loss on sales and valuations of repossessed and other                                                                           (34 )                                                                        (397 )                                                                                             (125 )                                                               (2,070 )
  assets
  Acquisition / restructure expense                                                                                                        6,021                                                                --                                                                                             12,412                                                                  8,837
  Other                                                                                                                 7,413                                   8,035                                                       34,062                           27,084  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Total non-interest expense                                                                                         88,645                                  72,448                                                      330,949                          260,606  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
Income before income taxes                                                                                                                96,164                                                                        77,874                                                                                            361,179                                                                258,538
Income tax expense                                                                                                     26,364                                  19,348                                                      101,381                           64,294  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Net income                                                                                                                  $         69,800                                           $         58,526                                                                $        259,798                                           $ 194,244  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
Preferred stock dividends                                                                                      --                                     151                                               --                              750  
                                                                                                             -------------------- -------------- --------------------                      -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                      -------------------- ------- --------------------
    Net income available to common stockholders                                                                                 $         69,800                                           $         58,375                                                                $        259,798                                           $ 193,494  
                                                                                                             ==================== ============== ====================                      ==================== ============== ====================                                           ==================== ============== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                             
Earnings per share available to common stockholders:
    Diluted shares                                                                                                                       104,765                                                                       102,006                                                                                            103,843                                                                 95,219
    Diluted earnings per share                                                                                                  $           0.67                                                              $           0.57                                                                                   $           2.50                                                              $    2.03
                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                          
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
                                                                                                                                                                                                                                                                                                                                      Three Months Ended
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Dec 31, 2016                                                                                       Sep 30, 2016                                                                                       Jun 30, 2016                                                                                       Mar 31, 2016                                                                                       Dec 31, 2015
                                                                                                             ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                                             (in thousands, except per share data)
Interest income:
  Loans                                                                                                                         $        168,881                                                                                   $        167,914                                                                                   $        160,015                                                                                   $        139,786                                                                                   $        137,471
  Investment securities                                                                                                                   16,725                                                                                             15,436                                                                                             12,871                                                                                             13,508                                                                                             12,454
  Other                                                                                                                 1,805                                                        1,400                                                        1,203                                                          962                                                        1,406  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total interest income                                                                                             187,411                                                      184,750                                                      174,089                                                      154,256                                                      151,331  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Interest expense:
  Deposits                                                                                                                                 7,729                                                                                              8,072                                                                                              7,678                                                                                              6,243                                                                                              5,737
  Qualifying debt                                                                                                                          4,252                                                                                              4,048                                                                                              2,514                                                                                              2,184                                                                                              2,107
  Borrowings                                                                                                              161                                                           83                                                          211                                                          118                                                          144  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total interest expense                                                                                             12,142                                                       12,203                                                       10,403                                                        8,545                                                        7,988  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Net interest income                                                                                                                  175,269                                                                                            172,547                                                                                            163,686                                                                                            145,711                                                                                            143,343
Provision for credit losses                                                                                             1,000                                                        2,000                                                        2,500                                                        2,500                                                        2,500  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Net interest income after provision for credit losses                                                             174,269                                                      170,547                                                      161,186                                                      143,211                                                      140,843  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Non-interest income:
  Service charges                                                                                                                          4,865                                                                                              4,916                                                                                              4,544                                                                                              4,499                                                                                              4,326
  SBA/ warrant income                                                                                                                      1,353                                                                                              1,457                                                                                                365                                                                                              1,006                                                                                                733
  Card income                                                                                                                              1,170                                                                                              1,177                                                                                              1,078                                                                                              1,013                                                                                              1,013
  Income from bank owned life insurance                                                                                                      904                                                                                                899                                                                                              1,029                                                                                                930                                                                                              1,166
  Lending related income and gains (losses) on sale of loans, net                                                                            488                                                                                                459                                                                                               (112 )                                                                                            2,935                                                                                                364
  Gains (losses) on sales of investment securities, net                                                                                       58                                                                                     --                                                                                     --                                                                                              1,001                                                                                                 33
  Other                                                                                                                 1,702                                                        1,775                                                        1,655                                                        1,749                                                        1,844  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total non-interest income                                                                                          10,540                                                       10,683                                                        8,559                                                       13,133                                                        9,479  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Non-interest expenses:
  Salaries and employee benefits                                                                                                          49,702                                                                                             49,542                                                                                             44,711                                                                                             44,855                                                                                             41,221
  Legal, professional, and directors’ fees                                                                                                 7,600                                                                                              5,691                                                                                              5,747                                                                                              5,572                                                                                              5,890
  Occupancy                                                                                                                                6,944                                                                                              6,856                                                                                              7,246                                                                                              6,257                                                                                              6,503
  Data processing                                                                                                                          4,504                                                                                              4,982                                                                                              5,114                                                                                              4,060                                                                                              4,106
  Insurance                                                                                                                                3,468                                                                                              3,144                                                                                              2,963                                                                                              3,323                                                                                              3,264
  Marketing                                                                                                                                1,164                                                                                                678                                                                                              1,097                                                                                                657                                                                                              1,298
  Intangible amortization                                                                                                                    697                                                                                                697                                                                                                697                                                                                                697                                                                                                704
  Card expense                                                                                                                               689                                                                                                536                                                                                                824                                                                                                887                                                                                                920
  Loan and repossessed asset expenses                                                                                                        477                                                                                                788                                                                                                832                                                                                                902                                                                                                904
  Net (gain) loss on sales and valuations of repossessed and other                                                                           (34 )                                                                                             (146 )                                                                                              357                                                                                               (302 )                                                                                             (397 )
  assets
  Acquisition / restructure expense                                                                                                        6,021                                                                                              2,729                                                                                              3,662                                                                                     --                                                                                     --
  Other                                                                                                                 7,413                                                        9,510                                                        8,554                                                        8,585                                                        8,035  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total non-interest expense                                                                                         88,645                                                       85,007                                                       81,804                                                       75,493                                                       72,448  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Income before income taxes                                                                                                                96,164                                                                                             96,223                                                                                             87,941                                                                                             80,851                                                                                             77,874
Income tax expense                                                                                                     26,364                                                       29,171                                                       26,327                                                       19,519                                                       19,348  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Net income                                                                                                                  $         69,800                                                                $         67,052                                                                $         61,614                                                                $         61,332                                                                $         58,526  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Preferred stock dividends                                                                                      --                                               --                                               --                                               --                                                          151  
                                                                                                             -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Net income available to common stockholders                                                                                 $         69,800                                                                $         67,052                                                                $         61,614                                                                $         61,332                                                                $         58,375  
                                                                                                             ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Earnings per share available to common stockholders:
    Diluted shares                                                                                                                       104,765                                                                                            104,564                                                                                            103,472                                                                                            102,538                                                                                            102,006
    Diluted earnings per share                                                                                                  $           0.67                                                                                   $           0.64                                                                                   $           0.60                                                                                   $           0.60                                                                                   $           0.57
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                        
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                 Dec 31, 2016                                                                                       Sep 30, 2016                                                                                       Jun 30, 2016                                                                                       Mar 31, 2016                                                                                       Dec 31, 2015
                                                                                           ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                           (in millions, except per share data)
Assets:
Cash and due from banks                                                                                       $          284.5                                                                $          356.1                                                                $          696.2                                                                $        1,031.0                                                                $          224.6  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Cash and cash equivalents                                                                                            284.5                                                                                              356.1                                                                                              696.2                                                                                            1,031.0                                                                                              224.6
Securities and money market investments                                                                                2,767.8                                                                                            2,778.1                                                                                            2,262.6                                                                                            2,099.9                                                                                            2,042.2
Loans held for sale                                                                                                       18.9                                                                                               21.3                                                                                               22.3                                                                                               23.6                                                                                               23.8
Loans held for investment:
  Commercial                                                                                                           5,855.8                                                                                            5,715.0                                                                                            5,577.6                                                                                            5,378.5                                                                                            5,262.8
  Commercial real estate - non-owner occupied                                                                          3,544.0                                                                                            3,623.4                                                                                            3,601.3                                                                                            2,291.0                                                                                            2,283.5
  Commercial real estate - owner occupied                                                                              2,013.3                                                                                            1,984.0                                                                                            2,008.3                                                                                            2,032.3                                                                                            2,083.3
  Construction and land development                                                                                    1,478.1                                                                                            1,379.7                                                                                            1,333.5                                                                                            1,179.9                                                                                            1,133.4
  Residential real estate                                                                                                259.4                                                                                              271.8                                                                                              293.0                                                                                              302.4                                                                                              323.0
  Consumer                                                                                             39.0                                                         38.4                                                         41.8                                                         33.7                                                         26.9  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Gross loans and deferred fees, net                                                                                13,189.6                                                                                           13,012.3                                                                                           12,855.5                                                                                           11,217.8                                                                                           11,112.9
Allowance for credit losses                                                                          (124.7 )                                                                        (122.9 )                                                                        (122.1 )                                                                        (119.2 )                                                                        (119.1 )
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Loans, net                                                                                     13,064.9                                                     12,889.4                                                     12,733.4                                                     11,098.6                                                     10,993.8  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Premises and equipment, net                                                                                              119.8                                                                                              121.3                                                                                              120.5                                                                                              119.8                                                                                              118.5
Other assets acquired through foreclosure, net                                                                            47.8                                                                                               49.6                                                                                               49.8                                                                                               52.8                                                                                               43.9
Bank owned life insurance                                                                                                164.5                                                                                              163.6                                                                                              164.3                                                                                              163.4                                                                                              162.5
Goodwill and other intangibles, net                                                                                      302.9                                                                                              303.6                                                                                              304.3                                                                                              304.0                                                                                              305.4
Other assets                                                                                          429.7                                                        359.6                                                        375.3                                                        354.9                                                        360.4  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total assets                                                                                              $       17,200.8                                                                $       17,042.6                                                                $       16,728.7                                                                $       15,248.0                                                                $       14,275.1  
                                                                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Liabilities and Stockholders’ Equity:
Liabilities:
Deposits
  Non-interest bearing demand deposits                                                                        $        5,632.9                                                                                   $        5,624.8                                                                                   $        5,275.1                                                                                   $        4,635.2                                                                                   $        4,094.0
  Interest bearing:
    Demand                                                                                                             1,346.7                                                                                            1,256.7                                                                                            1,278.1                                                                                            1,088.2                                                                                            1,028.1
    Savings and money market                                                                                           6,120.9                                                                                            5,969.6                                                                                            6,005.8                                                                                            5,650.9                                                                                            5,296.9
    Time certificates                                                                               1,449.3                                                      1,592.1                                                      1,642.3                                                      1,707.4                                                      1,611.6  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total deposits                                                                                                  14,549.8                                                                                           14,443.2                                                                                           14,201.3                                                                                           13,081.7                                                                                           12,030.6
    Customer repurchase agreements                                                                     41.7                                                         44.4                                                         38.5                                                         36.1                                                         38.2  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total customer funds                                                                                            14,591.5                                                                                           14,487.6                                                                                           14,239.8                                                                                           13,117.8                                                                                           12,068.8
Borrowings                                                                                                                80.0                                                                                     --                                                                                     --                                                                                                0.2                                                                                              150.0
Qualifying debt                                                                                                          367.9                                                                                              382.9                                                                                              382.1                                                                                              210.4                                                                                              210.3
Accrued interest payable and other liabilities                                                        269.9                                                        314.7                                                        310.6                                                        259.4                                                        254.5  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total liabilities                                                                            15,309.3                                                     15,185.2                                                     14,932.5                                                     13,587.8                                                     12,683.6  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Stockholders’ Equity:
Preferred stock                                                                                                 --                                                                                     --                                                                                     --                                                                                     --                                                                                     --
Common stock and additional paid-in capital                                                                            1,373.8                                                                                            1,368.4                                                                                            1,364.0                                                                                            1,302.9                                                                                            1,306.6
Retained earnings                                                                                                        522.4                                                                                              452.6                                                                                              385.6                                                                                              324.0                                                                                              262.6
Accumulated other comprehensive (loss) income                                                          (4.7 )                                                                          36.4                                                         46.6                                                         33.3                                                         22.3  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total stockholders’ equity                                                                    1,891.5                                                      1,857.4                                                      1,796.2                                                      1,660.2                                                      1,591.5  
                                                                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total liabilities and stockholders’ equity                                                              $       17,200.8                                                                $       17,042.6                                                                $       16,728.7                                                                $       15,248.0                                                                $       14,275.1  
                                                                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                     
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
                                                                                                                
                                                                                                                                                                                                                                                                                                                                     Three Months Ended
                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Dec 31, 2016                                                                                   Sep 30, 2016                                                                                       Jun 30, 2016                                                                                       Mar 31, 2016                                                                                       Dec 31, 2015
                                                                                                               --------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------                                          ---------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                       (in thousands)
Balance, beginning of period                                                                                                      $ 122,884                                                                                   $        122,104                                                                                   $        119,227                                                                                   $        119,068                                                                                   $        117,072
Provision for credit losses                                                                                                           1,000                                                                                              2,000                                                                                              2,500                                                                                              2,500                                                                                              2,500
Recoveries of loans previously charged-off:
  Commercial and industrial                                                                                                           1,144                                                                                                466                                                                                                804                                                                                              1,576                                                                                              1,009
  Commercial real estate - non-owner occupied                                                                                           691                                                                                                230                                                                                                343                                                                                              3,595                                                                                                482
  Commercial real estate - owner occupied                                                                                                45                                                                                                291                                                                                                427                                                                                                 70                                                                                                135
  Construction and land development                                                                                                      30                                                                                                302                                                                                                 58                                                                                                 95                                                                                                 13
  Residential real estate                                                                                                               287                                                                                                179                                                                                                153                                                                                                257                                                                                                232
  Consumer                                                                                                            11                                                           21                                                           43                                                           67                                                          115  
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total recoveries                                                                                                                  2,208                                                                                              1,489                                                                                              1,828                                                                                              5,660                                                                                              1,986
Loans charged-off:
  Commercial and industrial                                                                                                           1,267                                                                                              2,558                                                                                              1,161                                                                                              7,491                                                                                              2,277
  Commercial real estate - non-owner occupied                                                                                             1                                                                                     --                                                                                     --                                                                                     --                                                                                     --
  Commercial real estate - owner occupied                                                                                                 1                                                                                                 72                                                                                                244                                                                                                410                                                                                     --
  Construction and land development                                                                                                      18                                                                                     --                                                                                     --                                                                                     --                                                                                     --
  Residential real estate                                                                                                                60                                                                                                 79                                                                                     --                                                                                                 26                                                                                                194
  Consumer                                                                                                            41                                               --                                                           46                                                           74                                                           19  
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total loans charged-off                                                                                                           1,388                                                                                              2,709                                                                                              1,451                                                                                              8,001                                                                                              2,490
Net loan (recoveries) charge-offs                                                                                   (820 )                                                                         1,220                                                         (377 )                                                                         2,341                                                          504  
                                                                                                               -------------------- ------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Balance, end of period                                                                                                            $ 124,704                                                                $        122,884                                                                $        122,104                                                                $        119,227                                                                $        119,068  
                                                                                                               ==================== ======= ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Net (recoveries) charge-offs to average loans- annualized                                                                             (0.03 )%                                                                                            0.04 %                                                                                            (0.01 )%                                                                                            0.08 %                                                                                             0.02 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Allowance for credit losses to gross loans                                                                                             0.95 %                                                                                             0.94 %                                                                                             0.95 %                                                                                             1.06 %                                                                                             1.07 %
Allowance for credit losses to gross loans, adjusted for acquisition                                                                   1.30                                                                                               1.37                                                                                               1.42                                                                                               1.21                                                                                               1.25
accounting (1)
Allowance for credit losses to nonaccrual loans                                                                                      309.65                                                                                             302.61                                                                                             307.68                                                                                             352.72                                                                                             246.10
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Nonaccrual loans                                                                                                                  $  40,272                                                                                   $         40,608                                                                                   $         39,685                                                                                   $         33,802                                                                                   $         48,381
Nonaccrual loans to gross loans                                                                                                        0.31 %                                                                                             0.31 %                                                                                             0.31 %                                                                                             0.30 %                                                                                             0.44 %
Repossessed assets                                                                                                                $  47,815                                                                                   $         49,619                                                                                   $         49,842                                                                                   $         52,776                                                                                   $         43,942
Nonaccrual loans and repossessed assets to total assets                                                                                0.51 %                                                                                             0.53 %                                                                                             0.54 %                                                                                             0.57 %                                                                                             0.65 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Loans past due 90 days, still accruing                                                                                            $   1,067                                                                                   $          2,817                                                                                   $          6,991                                                                                   $          4,488                                                                                   $          3,028
Loans past due 90 days and still accruing to gross loans                                                                               0.01 %                                                                                             0.02 %                                                                                             0.05 %                                                                                             0.04 %                                                                                             0.03 %
Loans past due 30 to 89 days, still accruing                                                                                      $   6,294                                                                                   $         18,446                                                                                   $          3,475                                                                                   $          9,207                                                                                   $         34,541
Loans past due 30 to 89 days, still accruing to gross loans                                                                            0.05 %                                                                                             0.14 %                                                                                             0.03 %                                                                                             0.08 %                                                                                             0.31 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Special mention loans                                                                                                             $ 148,144                                                                                   $        134,018                                                                                   $        154,167                                                                                   $        133,036                                                                                   $        141,819
Special mention loans to gross loans                                                                                                   1.12 %                                                                                             1.03 %                                                                                             1.20 %                                                                                             1.19 %                                                                                             1.28 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Classified loans on accrual                                                                                                       $ 106,644                                                                                   $        110,650                                                                                   $        119,939                                                                                   $         92,435                                                                                   $        118,635
Classified loans on accrual to gross loans                                                                                             0.81 %                                                                                             0.85 %                                                                                             0.93 %                                                                                             0.82 %                                                                                             1.07 %
Classified assets                                                                                                                 $ 211,782                                                                                   $        212,286                                                                                   $        219,319                                                                                   $        187,929                                                                                   $        221,126
Classified assets to total assets                                                                                                      1.23 %                                                                                             1.25 %                                                                                             1.31 %                                                                                             1.23 %                                                                                             1.55 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
(1) See Reconciliation of Non-GAAP Financial Measures.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                    
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                                                   
                                                                                                                                                                                                                                                               Three Months Ended
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                              December 31, 2016                                                                                                                                                                                 September 30, 2016
                                                                                          --------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Average                                                      Interest                                       Average Yield /                                                                       Average                                                      Interest                                         Average Yield /
                                                                                                                Balance                                                                                                          Cost                                                                             Balance                                                                                                            Cost
                                                                                          ------------------------------------------------                        ----------------------------                       ---------------------------                                            ------------------------------------------------                        ----------------------------                       ------------------------------
                                                                                                            ($ in millions)                                              ($ in thousands)                                                                                                                     ($ in millions)                                              ($ in thousands)
Interest earning assets
Loans:
  Commercial                                                                                                 $  5,656.4                                                              $   66,674                         5.19 %                                                                                 $  5,503.0                                                              $   65,448                            5.24 %
  CRE - non-owner occupied                                                                                      3,581.1                                                                  51,565                         5.76                                                                                      3,655.6                                                                  51,708                            5.66
  CRE - owner occupied                                                                                          1,993.3                                                                  24,897                         5.00                                                                                      1,999.5                                                                  26,620                            5.33
  Construction and land development                                                                             1,431.9                                                                  22,094                         6.17                                                                                      1,338.2                                                                  19,793                            5.92
  Residential real estate                                                                                         264.3                                                                   2,926                         4.43                                                                                        281.4                                                                   3,557                            5.06
  Consumer                                                                                                         38.7                                                                     468                         4.84                                                                                         40.0                                                                     474                            4.74
  Loans held for sale                                                                           20.2                               257                         5.09                                                   21.9                               314                            5.73  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total loans (1)                                                                                                12,985.9                                                                 168,881                         5.41                                                                                     12,839.6                                                                 167,914                            5.44
Securities:
  Securities - taxable                                                                                          2,142.6                                                                  11,482                         2.14                                                                                      1,895.5                                                                  10,438                            2.20
  Securities - tax-exempt                                                                      591.2                             5,243                         5.25                                                  511.8                             4,997                            5.46  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total securities (1)                                                                                            2,733.8                                                                  16,725                         2.81                                                                                      2,407.3                                                                  15,436                            2.90
  Other                                                                                        430.0                             1,805                         1.68                                                  684.7                             1,400                            0.82  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
    Total interest earning assets                                                                              16,149.7                                                                 187,411                         4.87                                                                                     15,931.6                                                                 184,750                            4.85
Non-interest earning assets
  Cash and due from banks                                                                                         146.0                                                                                                                                                                                             146.1
  Allowance for credit losses                                                                                    (122.7 )                                                                                                                                                                                          (123.6 )
  Bank owned life insurance                                                                                       163.9                                                                                                                                                                                             164.0
  Other assets                                                                                 844.0                                                                                                                                                       834.9  
                                                                                          -------------------- -------- --------------------                                                                                                                                                -------------------- -------- --------------------
Total assets                                                                                                 $ 17,180.9                                                                                                                                                                     $ 16,953.0  
                                                                                          ==================== ======== ====================                                                                                                                                                ==================== ======== ====================
Interest-bearing liabilities
Interest-bearing deposits:
  Interest-bearing transaction accounts                                                                      $  1,295.6                                                              $      660                         0.20 %                                                                                 $  1,286.1                                                              $      612                            0.19 %
  Savings and money market                                                                                      6,004.4                                                                   5,043                         0.34                                                                                      6,129.2                                                                   5,314                            0.35
  Time certificates of deposit                                                               1,507.0                             2,026                         0.54                                                1,637.3                             2,146                            0.52  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total interest-bearing deposits                                                                                 8,807.0                                                                   7,729                         0.35                                                                                      9,052.6                                                                   8,072                            0.36
Short-term borrowings                                                                                              73.5                                                                     161                         0.88                                                                                         39.1                                                                      83                            0.85
Qualifying debt                                                                                365.4                             4,252                         4.65                                                  369.1                             4,048                            4.39  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total interest-bearing liabilities                                                                              9,245.9                                                                  12,142                         0.53                                                                                      9,460.8                                                                  12,203                            0.52
Non-interest-bearing liabilities
  Non-interest-bearing demand deposits                                                                          5,752.0                                                                                                                                                                                           5,363.7
  Other liabilities                                                                                               292.5                                                                                                                                                                                             292.2
Stockholders’ equity                                              1,890.5                                                                                                                                                     1,836.3  
                                                                                          -------------------- -------- --------------------                                                                                                                                                -------------------- -------- --------------------
Total liabilities and stockholders’ equity                                                                   $ 17,180.9                                                                                                                                                                     $ 16,953.0  
                                                                                          ==================== ======== ====================                                                                                                                                                ==================== ======== ====================
Net interest income and margin                                                                                                                                                       $  175,269                         4.57 %                                                                                                                                                         $  172,547                            4.55 %
                                                                                                                                                                  ==================== ========                                                                                                                                                                     ==================== ========
Net interest spread                                                                                                                                                                                                     4.34 %                                                                                                                                                                                               4.33 %
                                                                                                                                                                                                                                                                                                                                                                                                                        
(1) Yields on loans and securities have been adjusted to a tax
equivalent basis. The taxable-equivalent adjustment was $9,165 and
$8,599 for the three months ended December 31, 2016 and September
30, 2016, respectively.
 
                                                                                                                                                                                                                                                                                                    
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                                                   
                                                                                                                                                                                                                                                         Three Months Ended December 31,
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    2016                                                                                                                                                                                               2015
                                                                                          --------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Average                                                      Interest                                       Average Yield /                                                                       Average                                                      Interest                                         Average Yield /
                                                                                                                Balance                                                                                                          Cost                                                                             Balance                                                                                                            Cost
                                                                                          ------------------------------------------------                        ----------------------------                       ---------------------------                                            ------------------------------------------------                        ----------------------------                       ------------------------------
                                                                                                            ($ in millions)                                              ($ in thousands)                                                                                                                     ($ in millions)                                              ($ in thousands)
Interest earning assets
Loans:
  Commercial                                                                                                 $  5,656.4                                                              $   66,674                         5.19 %                                                                                 $  4,916.5                                                              $   58,423                            5.28 %
  CRE - non-owner occupied                                                                                      3,581.1                                                                  51,565                         5.76                                                                                      2,233.2                                                                  29,614                            5.30
  CRE - owner occupied                                                                                          1,993.3                                                                  24,897                         5.00                                                                                      2,100.5                                                                  28,145                            5.36
  Construction and land development                                                                             1,431.9                                                                  22,094                         6.17                                                                                      1,134.7                                                                  16,658                            5.87
  Residential real estate                                                                                         264.3                                                                   2,926                         4.43                                                                                        321.0                                                                   4,217                            5.25
  Consumer                                                                                                         38.7                                                                     468                         4.84                                                                                         26.8                                                                     317                            4.73
  Loans held for sale                                                                           20.2                               257                         5.09                                                   24.6                                97                            1.58  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total loans (1)                                                                                                12,985.9                                                                 168,881                         5.41                                                                                     10,757.3                                                                 137,471                            5.35
Securities:
  Securities - taxable                                                                                          2,142.6                                                                  11,482                         2.14                                                                                      1,487.7                                                                   8,321                            2.24
  Securities - tax-exempt                                                                      591.2                             5,243                         5.25                                                  442.4                             4,133                            5.47  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total securities (1)                                                                                            2,733.8                                                                  16,725                         2.81                                                                                      1,930.1                                                                  12,454                            2.98
  Other                                                                                        430.0                             1,805                         1.68                                                  313.6                             1,406                            1.79  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
    Total interest earning assets                                                                              16,149.7                                                                 187,411                         4.87                                                                                     13,001.0                                                                 151,331                            4.92
Non-interest earning assets
  Cash and due from banks                                                                                         146.0                                                                                                                                                                                             155.7
  Allowance for credit losses                                                                                    (122.7 )                                                                                                                                                                                          (118.0 )
  Bank owned life insurance                                                                                       163.9                                                                                                                                                                                             162.0
  Other assets                                                                                 844.0                                                                                                                                                       809.1  
                                                                                          -------------------- -------- --------------------                                                                                                                                                -------------------- -------- --------------------
Total assets                                                                                                 $ 17,180.9                                                                                                                                                                     $ 14,009.8  
                                                                                          ==================== ======== ====================                                                                                                                                                ==================== ======== ====================
Interest-bearing liabilities
Interest-bearing deposits:
  Interest-bearing transaction accounts                                                                      $  1,295.6                                                              $      660                         0.20 %                                                                                 $  1,037.6                                                              $      480                            0.19 %
  Savings and money market                                                                                      6,004.4                                                                   5,043                         0.34                                                                                      5,014.1                                                                   3,548                            0.28
  Time certificates of deposit                                                               1,507.0                             2,026                         0.54                                                1,701.9                             1,709                            0.40  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total interest-bearing deposits                                                                                 8,807.0                                                                   7,729                         0.35                                                                                      7,753.6                                                                   5,737                            0.30
Short-term borrowings                                                                                              73.5                                                                     161                         0.88                                                                                        103.1                                                                     144                            0.56
Qualifying debt                                                                                365.4                             4,252                         4.65                                                  195.9                             2,107                            4.30  
                                                                                          -------------------- -------- --------------------                      -------------------- --------                      ------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total interest-bearing liabilities                                                                              9,245.9                                                                  12,142                         0.53                                                                                      8,052.6                                                                   7,988                            0.40
Non-interest-bearing liabilities
  Non-interest-bearing demand deposits                                                                          5,752.0                                                                                                                                                                                           4,127.9
  Other liabilities                                                                                               292.5                                                                                                                                                                                             208.5
Stockholders’ equity                                              1,890.5                                                                                                                                                     1,620.8  
                                                                                          -------------------- -------- --------------------                                                                                                                                                -------------------- -------- --------------------
Total liabilities and stockholders’ equity                                                                   $ 17,180.9                                                                                                                                                                     $ 14,009.8  
                                                                                          ==================== ======== ====================                                                                                                                                                ==================== ======== ====================
Net interest income and margin                                                                                                                                                       $  175,269                         4.57 %                                                                                                                                                         $  143,343                            4.67 %
                                                                                                                                                                  ==================== ========                                                                                                                                                                     ==================== ========
Net interest spread                                                                                                                                                                                                     4.34 %                                                                                                                                                                                               4.52 %
                                                                                                                                                                                                                                                                                                                                                                                                                        
(1) Yields on loans and securities have been adjusted to a tax
equivalent basis. The taxable-equivalent adjustment was $9,165 and
$8,433 for the three months ended December 31, 2016 and 2015,
respectively.
 
                                                                                                                                                                                                                                                                                                                       
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
                                                   
                                                                                                                                                                                                                                                                       Year Ended December 31,
                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                             2016                                                                                                                                                                                                         2015
                                                                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   Average                                                            Interest                                              Average Yield /                                                                          Average                                                      Interest                                         Average Yield /
                                                                                                                   Balance                                                                                                                       Cost                                                                                Balance                                                                                                            Cost
                                                                                          ------------------------------------------------------                        ----------------------------------                       ----------------------------------                                            ------------------------------------------------                        ----------------------------                       ------------------------------
                                                                                                               ($ in millions)                                                    ($ in thousands)                                                                                                                               ($ in millions)                                              ($ in thousands)
Interest earning assets
Loans:
  Commercial                                                                                                 $        5,422.1                                                              $        252,016                                5.14 %                                                                                 $  4,246.9                                                              $  186,067                            4.97 %
  CRE - non-owner occupied                                                                                            3,194.0                                                                       181,678                                5.69                                                                                      2,157.7                                                                 115,009                            5.33
  CRE - owner occupied                                                                                                2,016.6                                                                       103,418                                5.13                                                                                      1,958.2                                                                 102,377                            5.23
  Construction and land development                                                                                   1,307.9                                                                        83,206                                6.36                                                                                        961.9                                                                  55,909                            5.81
  Residential real estate                                                                                               289.2                                                                        13,375                                4.62                                                                                        306.9                                                                  15,077                            4.91
  Consumer                                                                                                               35.8                                                                         1,658                                4.63                                                                                         26.5                                                                   1,442                            5.44
  Loans held for sale                                                                                 22.3                                   1,245                                5.60                                                   16.1                               536                            3.33  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------------                      -------------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total loans (1)                                                                                                      12,287.9                                                                       636,596                                5.40                                                                                      9,674.2                                                                 476,417                            5.18
Securities:
  Securities - taxable                                                                                                1,789.8                                                                        39,772                                2.22                                                                                      1,268.8                                                                  28,525                            2.25
  Securities - tax-exempt                                                                            507.1                                  18,768                                5.34                                                  407.0                            15,032                            5.41  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------------                      -------------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total securities (1)                                                                                                  2,296.9                                                                        58,540                                2.91                                                                                      1,675.8                                                                  43,557                            3.02
  Other                                                                                              532.5                                   5,370                                1.01                                                  272.0                             5,170                            1.90  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------------                      -------------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
    Total interest earning assets                                                                                    15,117.3                                                                       700,506                                4.86                                                                                     11,622.0                                                                 525,144                            4.79
Non-interest earning assets
  Cash and due from banks                                                                                               141.8                                                                                                                                                                                                          137.9
  Allowance for credit losses                                                                                          (122.0 )                                                                                                                                                                                                       (115.0 )
  Bank owned life insurance                                                                                             163.6                                                                                                                                                                                                          152.3
  Other assets                                                                                       833.6                                                                                                                                                                    623.6  
                                                                                          -------------------- -------------- --------------------                                                                                                                                                             -------------------- -------- --------------------
Total assets                                                                                                 $       16,134.3                                                                                                                                                                                  $ 12,420.8  
                                                                                          ==================== ============== ====================                                                                                                                                                             ==================== ======== ====================
Interest-bearing liabilities
Interest-bearing deposits:
  Interest bearing transaction accounts                                                                      $        1,217.3                                                              $          2,231                                0.18 %                                                                                 $    983.9                                                              $    1,736                            0.18 %
  Savings and money market                                                                                            5,827.5                                                                        19,368                                0.33                                                                                      4,470.2                                                                  12,544                            0.28
  Time certificates of deposits                                                                    1,615.5                                   8,123                                0.50                                                1,808.1                             7,515                            0.42  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------------                      -------------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total interest-bearing deposits                                                                                       8,660.3                                                                        29,722                                0.34                                                                                      7,262.2                                                                  21,795                            0.30
Short-term borrowings                                                                                                    80.7                                                                           573                                0.71                                                                                        185.2                                                                   4,965                            2.68
Long-term debt                                                                                                 --                                                                --                      --                                                                                         76.6                                                                     801                            1.04
Qualifying debt                                                                                      290.8                                  12,998                                4.47                                                  120.2                             5,007                            4.17  
                                                                                          -------------------- -------------- --------------------                      -------------------- --------------                      -------------- --------------------                                           -------------------- -------- --------------------                      -------------------- --------                      ---------- --------------------
Total interest-bearing liabilities                                                                                    9,031.8                                                                        43,293                                0.48                                                                                      7,644.2                                                                  32,568                            0.43
Non-interest-bearing liabilities
  Non-interest-bearing demand deposits                                                                                5,062.3                                                                                                                                                                                                        3,273.1
  Other liabilities                                                                                                     269.3                                                                                                                                                                                                          179.5
Stockholders’ equity                                                    1,770.9                                                                                                                                                                  1,324.0  
                                                                                          -------------------- -------------- --------------------                                                                                                                                                             -------------------- -------- --------------------
Total liabilities and stockholders’ equity                                                                   $       16,134.3                                                                                                                                                                                  $ 12,420.8  
                                                                                          ==================== ============== ====================                                                                                                                                                             ==================== ======== ====================
Net interest income and margin                                                                                                                                                             $        657,213                                4.58 %                                                                                                                                                         $  492,576                            4.51 %
                                                                                                                                                                        ==================== ==============                                                                                                                                                                            ==================== ========
Net interest spread                                                                                                                                                                                                                        4.38 %                                                                                                                                                                                               4.36 %
                                                                                                                                                                                                                                                                                                                                                                                                                                           
(1) Yields on loans and securities have been adjusted to a tax
equivalent basis. The taxable-equivalent adjustment was $34,902 and
$31,883 for the years ended December 31, 2016 and 2015, respectively.
 
                                                                                                                                                                                                                                                                                                                                                               
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
                                                                     
Balance Sheet:                                                                                                                                                                                                                                                                                                                                                                          Regional Segments
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Consolidated                                                                                          Arizona                                                                                            Nevada                                                                                            Southern                                                                                           Northern
                                                                                                                                     Company                                                                                                                                                                                                                                                                                                California                                                                                         California
                                                                                                            ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------
At December 31, 2016                                                                                                                                                                                                                                                                                                                (dollars in millions)
Assets:
  Cash, cash equivalents, and investment securities                                                                            $        3,052.3                                                                                   $            1.9                                                                                   $           10.1                                                                                   $            2.1                                                                                   $            1.9
  Loans, net of deferred loan fees and costs                                                                                           13,208.5                                                                                            2,955.9                                                                                            1,725.5                                                                                            1,766.8                                                                                            1,095.4
    Less: allowance for credit losses                                                                                 (124.7 )                                                                         (30.1 )                                                                         (18.5 )                                                                         (19.4 )                                                                          (8.8 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total loans                                                                                                   13,083.8                                                      2,925.8                                                      1,707.0                                                      1,747.4                                                      1,086.6  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Other assets acquired through foreclosure, net                                                                                           47.8                                                                                                6.2                                                                                               18.0                                                                                     --                                                                                                0.3
  Goodwill and other intangible assets, net                                                                                               302.9                                                                                     --                                                                                               23.7                                                                                     --                                                                                              157.5
  Other assets                                                                                                         714.0                                                         42.9                                                         58.8                                                         14.5                                                         14.3  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total assets                                                                                                               $       17,200.8                                                                $        2,976.8                                                                $        1,817.6                                                                $        1,764.0                                                                $        1,260.6  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Liabilities:
  Deposits                                                                                                                     $       14,549.8                                                                                   $        3,843.4                                                                                   $        3,731.5                                                                                   $        2,382.6                                                                                   $        1,543.6
  Borrowings and qualifying debt                                                                                                          447.9                                                                                     --                                                                                     --                                                                                     --                                                                                     --
  Other liabilities                                                                                                    311.6                                                         12.8                                                         28.3                                                         12.9                                                         12.4  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total liabilities                                                                                               15,309.3                                                      3,856.2                                                      3,759.8                                                      2,395.5                                                      1,556.0  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Allocated equity:                                                                                                    1,891.5                                                        346.6                                                        250.7                                                        201.6                                                        283.7  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Total liabilities and stockholders’ equity                                                                                     $       17,200.8                                                                $        4,202.8                                                                $        4,010.5                                                                $        2,597.1                                                                $        1,839.7  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Excess funds provided (used)                                                                                                     --                                                                                            1,226.0                                                                                            2,192.9                                                                                              833.1                                                                                              579.1
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
No. of offices                                                                                                                               48                                                                                                 10                                                                                                 18                                                                                                  9                                                                                                  3
No. of full-time equivalent employees                                                                                                     1,557                                                                                                168                                                                                                225                                                                                                175                                                                                                167
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Income Statement:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Three Months Ended December 31, 2016:                                                                                                                                                                                                                                                                                                  (in thousands)
  Net interest income (expense)                                                                                                $        175,269                                                                                   $         45,322                                                                                   $         35,491                                                                                   $         26,823                                                                                   $         20,890
  Provision for credit losses                                                                                          1,000                                                         (963 )                                                                           189                                                         (724 )                                                                           475  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net interest income (expense) after provision for credit losses                                                                       174,269                                                                                             46,285                                                                                             35,302                                                                                             27,547                                                                                             20,415
  Non-interest income                                                                                                                    10,540                                                                                              1,139                                                                                              2,203                                                                                                643                                                                                              2,564
  Non-interest expense                                                                                               (88,645 )                                                                       (18,316 )                                                                       (16,199 )                                                                       (12,242 )                                                                       (12,919 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Income (loss) before income taxes                                                                                                      96,164                                                                                             29,108                                                                                             21,306                                                                                             15,948                                                                                             10,060
  Income tax expense (benefit)                                                                                        26,364                                                       11,419                                                        7,457                                                        6,707                                                        4,230  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $         69,800                                                                $         17,689                                                                $         13,849                                                                $          9,241                                                                $          5,830  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Year Ended December 31, 2016:                                                                                                                                                                                                                                                                                                          (in thousands)
  Net interest income (expense)                                                                                                $        657,213                                                                                   $        170,513                                                                                   $        137,507                                                                                   $        103,542                                                                                   $         88,162
  Provision for (recovery of) credit losses                                                                            8,000                                                        9,912                                                       (3,337 )                                                                          (580 )                                                                         2,587  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net interest income (expense) after provision for credit losses                                                                       649,213                                                                                            160,601                                                                                            140,844                                                                                            104,122                                                                                             85,575
  Non-interest income                                                                                                                    42,915                                                                                              6,887                                                                                              8,622                                                                                              2,550                                                                                             10,422
  Non-interest expense                                                                                              (330,949 )                                                                       (63,406 )                                                                       (60,570 )                                                                       (45,643 )                                                                       (53,073 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Income (loss) before income taxes                                                                                                     361,179                                                                                            104,082                                                                                             88,896                                                                                             61,029                                                                                             42,924
  Income tax expense (benefit)                                                                                       101,381                                                       40,832                                                       31,113                                                       25,663                                                       18,049  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $        259,798                                                                $         63,250                                                                $         57,783                                                                $         35,366                                                                $         24,875  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                               
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
                                                                     
Balance Sheet:                                                                                                                                                                                                               National Business Lines
                                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                   HOA                                                    Public &                                                    Hotel                                                 Technology &                                               Other NBLs                                                  Corporate &
                                                                                                                Services                                                  Nonprofit                                                 Franchise                                                Innovation                                                                                                               Other
                                                                                                                                                                           Finance                                                   Finance
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
At December 31, 2016                                                                                                                                                                                                                                         (dollars in millions)
Assets:
  Cash, cash equivalents, and investment securities                                                         $--                                           $--                                           $--                                           $--                                           $--                                                       $3,036.3
  Loans, net of deferred loan fees and costs                                                                          116.8                                                   1,454.3                                                   1,292.1                                                   1,011.4                                                   1,776.9                                                           13.4
    Less: allowance for credit losses                                                                                 (1.3)                                                    (15.6)                                                     (0.8)                                                    (10.6)                                                    (19.0)                                                          (0.6)
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
      Total loans                                                                                                     115.5                                                   1,438.7                                                   1,291.3                                                   1,000.8                                                   1,757.9                                                           12.8
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
  Other assets acquired through foreclosure, net                                                             --                                            --                                            --                                            --                                            --                                                           23.3
  Goodwill and other intangible assets, net                                                                  --                                            --                                                       0.2                                                     121.5                                            --                                                 --
  Other assets                                                                                                          0.3                                                      15.6                                                       5.3                                                       7.2                                                      11.1                                                          544.0
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
    Total assets                                                                                                     $115.8                                                  $1,454.3                                                  $1,296.8                                                  $1,129.5                                                  $1,769.0                                                       $3,616.4
                                                                                                            ===============                                           ===============                                           ===============                                           ===============                                           ===============                                           ====================
Liabilities:
  Deposits                                                                                                         $1,890.3                                           $--                                           $--                                                  $1,038.2                                           $--                                                         $120.2
  Borrowings and qualifying debt                                                                             --                                            --                                            --                                            --                                            --                                                          447.9
  Other liabilities                                                                                                     0.7                                                      50.5                                                       1.4                                                       2.0                                                      17.5                                                          173.1
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
    Total liabilities                                                                                               1,891.0                                                      50.5                                                       1.4                                                   1,040.2                                                      17.5                                                          741.2
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
Allocated equity:                                                                                                      65.6                                                     117.1                                                     107.1                                                     224.1                                                     145.5                                                          149.5
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
Total liabilities and stockholders’ equity                                                                         $1,956.6                                                    $167.6                                                    $108.5                                                  $1,264.3                                                    $163.0                                                         $890.7
                                                                                                            ===============                                           ===============                                           ===============                                           ===============                                           ===============                                           ====================
Excess funds provided (used)                                                                                        1,840.8                                                 (1,286.7)                                                 (1,188.3)                                                     134.8                                                 (1,606.0)                                                      (2,725.7)
                                                                                                                                                                                                                                                                                                                                                                                                               
No. of offices                                                                                                            1                                                         1                                                         1                                                         8                                                         4                                                            (7)
No. of full-time equivalent employees                                                                                    64                                                         6                                                        20                                                        57                                                        34                                                            641
                                                                                                                                                                                                                                                                                                                                                                                                               
Income Statement:
                                                                                                                                                                                                                                                                                                                                                                                                               
Three Months Ended December 31, 2016:                                                                                                                                                                                                                           (in thousands)
  Net interest income (expense)                                                                                     $11,686                                                    $5,641                                                   $13,145                                                   $18,060                                                   $14,673                                                      $(16,462)
  Provision for credit losses                                                                                            96                                                       326                                            --                                                       710                                                       891                                                 --
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
  Net interest income (expense) after provision for credit losses                                                    11,590                                                     5,315                                                    13,145                                                    17,350                                                    13,782                                                       (16,462)
  Non-interest income                                                                                                   119                                                        37                                            --                                                     2,105                                                       717                                                          1,013
  Non-interest expense                                                                                              (6,596)                                                   (2,010)                                                   (2,780)                                                   (8,094)                                                   (4,197)                                                        (5,292)
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
  Income (loss) before income taxes                                                                                   5,113                                                     3,342                                                    10,365                                                    11,361                                                    10,302                                                       (20,741)
  Income tax expense (benefit)                                                                                        1,918                                                     1,253                                                     3,887                                                     4,261                                                     3,864                                                       (18,632)
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
Net income                                                                                                           $3,195                                                    $2,089                                                    $6,478                                                    $7,100                                                    $6,438                                                       $(2,109)
                                                                                                            ===============                                           ===============                                           ===============                                           ===============                                           ===============                                           ====================
                                                                                                                                                                                                                                                                                                                                                                                                               
Year Ended December 31, 2016:                                                                                                                                                                                                                                   (in thousands)
  Net interest income (expense)                                                                                     $41,539                                                   $20,900                                                   $38,583                                                   $69,143                                                   $49,893                                                      $(62,569)
  Provision for (recovery of) credit losses                                                                             256                                                     (183)                                            --                                                   (1,626)                                                     4,200                                                        (3,229)
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
  Net interest income (expense) after provision for credit losses                                                    41,283                                                    21,083                                                    38,583                                                    70,769                                                    45,693                                                       (59,340)
  Non-interest income                                                                                                   460                                                        59                                            --                                                     6,728                                                     2,315                                                          4,872
  Non-interest expense                                                                                             (24,019)                                                   (7,936)                                                   (8,544)                                                  (31,271)                                                  (15,204)                                                       (21,283)
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
  Income (loss) before income taxes                                                                                  17,724                                                    13,206                                                    30,039                                                    46,226                                                    32,804                                                       (75,751)
  Income tax expense (benefit)                                                                                        6,647                                                     4,952                                                    11,265                                                    17,335                                                    12,302                                                       (66,777)
                                                                                                            ---------------                                           ---------------                                           ---------------                                           ---------------                                           ---------------                                           --------------------
Net income                                                                                                          $11,077                                                    $8,254                                                   $18,774                                                   $28,891                                                   $20,502                                                       $(8,974)
                                                                                                            ===============                                           ===============                                           ===============                                           ===============                                           ===============                                           ====================
                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                               
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
                                                                     
Balance Sheet:                                                                                                                                                                                                                                                                                                                                                                          Regional Segments
                                                                                                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  Consolidated                                                                                          Arizona                                                                                            Nevada                                                                                            Southern                                                                                           Northern
                                                                                                                                     Company                                                                                                                                                                                                                                                                                                California                                                                                         California
                                                                                                            ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------
At December 31, 2015                                                                                                                                                                                                                                                                                                                (dollars in millions)
Assets:
  Cash, cash equivalents, and investment securities                                                                            $        2,266.9                                                                                   $            2.3                                                                                   $            9.5                                                                                   $            2.4                                                                                   $            2.4
  Loans, net of deferred loan fees and costs                                                                                           11,136.7                                                                                            2,811.7                                                                                            1,737.2                                                                                            1,761.9                                                                                            1,188.4
    Less: allowance for credit losses                                                                                 (119.1 )                                                                         (30.1 )                                                                         (18.6 )                                                                         (18.8 )                                                                         (12.7 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total loans                                                                                                   11,017.6                                                      2,781.6                                                      1,718.6                                                      1,743.1                                                      1,175.7  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Other assets acquired through foreclosure, net                                                                                           43.9                                                                                                8.4                                                                                               20.8                                                                                     --                                                                                                0.3
  Goodwill and other intangible assets, net                                                                                               305.4                                                                                     --                                                                                               24.8                                                                                     --                                                                                              158.2
  Other assets                                                                                                         641.3                                                         43.9                                                         62.3                                                         15.7                                                         16.1  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total assets                                                                                                               $       14,275.1                                                                $        2,836.2                                                                $        1,836.0                                                                $        1,761.2                                                                $        1,352.7  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Liabilities:
  Deposits                                                                                                                     $       12,030.6                                                                                   $        2,880.7                                                                                   $        3,382.8                                                                                   $        1,902.5                                                                                   $        1,541.1
  Borrowings and qualifying debt                                                                                                          360.3                                                                                     --                                                                                     --                                                                                     --                                                                                     --
  Other liabilities                                                                                                    292.7                                                         12.2                                                         29.0                                                          7.8                                                         11.2  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total liabilities                                                                                               12,683.6                                                      2,892.9                                                      3,411.8                                                      1,910.3                                                      1,552.3  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Allocated equity:                                                                                                    1,591.5                                                        309.2                                                        244.4                                                        191.3                                                        293.2  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Total liabilities and stockholders’ equity                                                                                     $       14,275.1                                                                $        3,202.1                                                                $        3,656.2                                                                $        2,101.6                                                                $        1,845.5  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Excess funds provided (used)                                                                                                     --                                                                                              365.9                                                                                            1,820.2                                                                                              340.4                                                                                              492.8
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
No. of offices                                                                                                                               47                                                                                                 11                                                                                                 18                                                                                                  9                                                                                                  2
No. of full-time equivalent employees                                                                                                     1,446                                                                                                180                                                                                                228                                                                                                161                                                                                                171
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Income Statements:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Three Months Ended December 31, 2015:                                                                                                                                                                                                                                                                                                  (in thousands)
  Net interest income (expense)                                                                                                $        143,343                                                                                   $         35,918                                                                                   $         32,052                                                                                   $         23,879                                                                                   $         23,017
  Provision for (recovery of) credit losses                                                                            2,500                                                          977                                                       (1,712 )                                                                           328                                                        1,162  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net interest income (expense) after provision for credit losses                                                                       140,843                                                                                             34,941                                                                                             33,764                                                                                             23,551                                                                                             21,855
  Non-interest income                                                                                                                     9,479                                                                                              1,295                                                                                              2,350                                                                                                596                                                                                              2,355
  Non-interest expense                                                                                               (72,448 )                                                                       (15,396 )                                                                       (14,533 )                                                                       (12,162 )                                                                       (13,385 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Income (loss) before income taxes                                                                                                      77,874                                                                                             20,840                                                                                             21,581                                                                                             11,985                                                                                             10,825
  Income tax expense (benefit)                                                                                        19,348                                                        8,175                                                        7,553                                                        5,040                                                        4,551  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $         58,526                                                                $         12,665                                                                $         14,028                                                                $          6,945                                                                $          6,274  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Year Ended December 31, 2015:                                                                                                                                                                                                                                                                                                          (in thousands)
  Net interest income (expense)                                                                                                $        492,576                                                                                   $        129,914                                                                                   $        122,082                                                                                   $         94,585                                                                                   $         56,698
  Provision for (recovery of) credit losses                                                                            3,200                                                        3,099                                                       (6,887 )                                                                           152                                                        3,038  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net interest income (expense) after provision for credit losses                                                                       489,376                                                                                            126,815                                                                                            128,969                                                                                             94,433                                                                                             53,660
  Non-interest income                                                                                                                    29,768                                                                                              4,204                                                                                              9,202                                                                                              2,697                                                                                              5,161
  Non-interest expense                                                                                              (260,606 )                                                                       (59,917 )                                                                       (59,553 )                                                                       (47,549 )                                                                       (30,161 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Income (loss) before income taxes                                                                                                     258,538                                                                                             71,102                                                                                             78,618                                                                                             49,581                                                                                             28,660
  Income tax expense (benefit)                                                                                        64,294                                                       27,893                                                       27,516                                                       20,849                                                       12,051  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $        194,244                                                                $         43,209                                                                $         51,102                                                                $         28,732                                                                $         16,609  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                         
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Balance Sheet:                                                                                                                                                                                                                                                                    National Business Lines
                                                                                                            ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                       HOA                                                                                             Public &                                                                                         Technology &                                                                                        Other NBLs                                                                                         Corporate &
                                                                                                                                    Services                                                                                           Nonprofit                                                                                         Innovation                                                                                                                                                                                               Other
                                                                                                                                                                                                                                        Finance
                                                                                                            ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------                                             ------------------------------------------------------
At December 31, 2015                                                                                                                                                                                                                                                                                                                (dollars in millions)
Assets:
  Cash, cash equivalents, and investment securities                                                                            $ --                                                                                   $ --                                                                                   $ --                                                                                   $ --                                                                                   $        2,250.3
  Loans, net of deferred loan fees and costs                                                                                               88.4                                                                                            1,458.9                                                                                              770.3                                                                                            1,280.3                                                                                               39.6
    Less: allowance for credit losses                                                                                   (0.9 )                                                                         (15.6 )                                                                          (8.2 )                                                                         (13.8 )                                                                          (0.4 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
      Total loans                                                                                                       87.5                                                      1,443.3                                                        762.1                                                      1,266.5                                                         39.2  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Other assets acquired through foreclosure, net                                                                                 --                                                                                     --                                                                                     --                                                                                     --                                                                                               14.4
  Goodwill and other intangible assets, net                                                                                      --                                                                                     --                                                                                              122.4                                                                                     --                                                                                     --
  Other assets                                                                                                           0.2                                                         14.0                                                          2.7                                                         11.5                                                        474.9  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total assets                                                                                                               $           87.7                                                                $        1,457.3                                                                $          887.2                                                                $        1,278.0                                                                $        2,778.8  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Liabilities:
  Deposits                                                                                                                     $        1,291.9                                                                                   $ --                                                                                   $          842.5                                                                                   $ --                                                                                   $          189.1
  Borrowings and qualifying debt                                                                                                 --                                                                                     --                                                                                     --                                                                                     --                                                                                              360.3
  Other liabilities                                                                                                      0.5                                                         63.8                                               --                                                         40.8                                                        127.4  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
    Total liabilities                                                                                                1,292.4                                                         63.8                                                        842.5                                                         40.8                                                        676.8  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Allocated equity:                                                                                                       34.2                                                         87.8                                                        200.9                                                        105.7                                                        124.8  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Total liabilities and stockholders’ equity                                                                                     $        1,326.6                                                                $          151.6                                                                $        1,043.4                                                                $          146.5                                                                $          801.6  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
Excess funds provided (used)                                                                                                            1,238.9                                                                                           (1,305.7 )                                                                                            156.2                                                                                           (1,131.5 )                                                                                         (1,977.2 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
No. of offices                                                                                                                                1                                                                                                  1                                                                                                  7                                                                                                  4                                                                                                 (6 )
No. of full-time equivalent employees                                                                                                        54                                                                                                  3                                                                                                 40                                                                                                 26                                                                                                583
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Income Statement:
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Three Months Ended December 31, 2015:                                                                                                                                                                                                                                                                                                  (in thousands)
  Net interest income (expense)                                                                                                $          6,909                                                                                   $          5,454                                                                                   $         15,611                                                                                   $         11,159                                                                                   $        (10,656 )
  Provision for (recovery of) credit losses                                                                               33                                                           76                                                          739                                                          897                                               --  
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net interest income (expense) after provision for credit losses                                                                         6,876                                                                                              5,378                                                                                             14,872                                                                                             10,262                                                                                            (10,656 )
  Non-interest income                                                                                                                        86                                                                                                 21                                                                                              1,094                                                                                                437                                                                                              1,245
  Non-interest expense                                                                                                (5,073 )                                                                        (1,619 )                                                                        (3,945 )                                                                        (3,244 )                                                                        (3,091 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Income (loss) before income taxes                                                                                                       1,889                                                                                              3,780                                                                                             12,021                                                                                              7,455                                                                                            (12,502 )
  Income tax expense (benefit)                                                                                           708                                                        1,418                                                        4,508                                                        2,795                                                      (15,400 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $          1,181                                                                $          2,362                                                                $          7,513                                                                $          4,660                                                                $          2,898  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Year Ended December 31, 2015:                                                                                                                                                                                                                                                                                                          (in thousands)
  Net interest income (expense)                                                                                                $         25,572                                                                                   $         19,988                                                                                   $         30,137                                                                                   $         48,525                                                                                   $        (34,925 )
  Provision for (recovery of) credit losses                                                                              232                                                        2,655                                                        2,264                                                       (1,234 )                                                                          (119 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Net interest income (expense) after provision for credit losses                                                                        25,340                                                                                             17,333                                                                                             27,873                                                                                             49,759                                                                                            (34,806 )
  Non-interest income                                                                                                                       322                                                                                                687                                                                                              2,252                                                                                                849                                                                                              4,394
  Non-interest expense                                                                                               (18,059 )                                                                        (5,675 )                                                                        (7,596 )                                                                       (14,501 )                                                                       (17,595 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Income (loss) before income taxes                                                                                                       7,603                                                                                             12,345                                                                                             22,529                                                                                             36,107                                                                                            (48,007 )
  Income tax expense (benefit)                                                                                         2,851                                                        4,630                                                        8,448                                                       13,540                                                      (53,484 )
                                                                                                            -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                     $          4,752                                                                $          7,715                                                                $         14,081                                                                $         22,567                                                                $          5,477  
                                                                                                            ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                                             
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
                                                                                                                                                                                                                                                                                                                                                                                                                              
Operating Pre-Provision Net Revenue by Quarter:
                                                                                                                                                                                                                                                                                 Three Months Ended
                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Dec 31, 2016                                                                     Sep 30, 2016                                                                  Jun 30, 2016                                                                  Mar 31, 2016                                                                  Dec 31, 2015
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                                                                                                                                   (in thousands)
Total non-interest income                                                                                         $               10,540                                                              $         10,683                                                              $          8,559                                                              $         13,133                                                              $          9,479
   Less:
     Gains (losses) on sales of investment securities, net                                                                            58                                                                --                                                                --                                                                         1,001                                                                            33
     Unrealized gains (losses) on assets and liabilities measured at fair                                                 --                                                                             7                                                                             6                                                                            (5 )                                                                          10
     value, net
     Loss on extinguishment of debt                                                                    --                          --                          --                          --                          --  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total operating non-interest income                                                                                               10,482                                                                        10,676                                                                         8,553                                                                        12,137                                                                         9,436
   Plus: net interest income                                                                                  175,269                                 172,547                                 163,686                                 145,711                                 143,343  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net operating revenue (1)                                                                                         $              185,751                                           $        183,223                                           $        172,239                                           $        157,848                                           $        152,779  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Total non-interest expense                                                                                        $               88,645                                                              $         85,007                                                              $         81,804                                                              $         75,493                                                              $         72,448
   Less:
     Net (gain) loss on sales and valuations of repossessed and other                                                                (34 )                                                                        (146 )                                                                         357                                                                          (302 )                                                                        (397 )
     assets
     Acquisition / restructure expense                                                                          6,021                                   2,729                                   3,662                          --                          --  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total operating non-interest expense (1)                                                                          $               82,658                                           $         82,424                                           $         77,785                                           $         75,795                                           $         72,845  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Operating pre-provision net revenue (2)                                                                           $              103,093                                           $        100,799                                           $         94,454                                           $         82,053                                           $         79,934  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
   Plus:
     Non-operating revenue adjustments                                                                                                58                                                                             7                                                                             6                                                                           996                                                                            43
   Less:
     Provision for credit losses                                                                                                   1,000                                                                         2,000                                                                         2,500                                                                         2,500                                                                         2,500
     Non-operating expense adjustments                                                                                             5,987                                                                         2,583                                                                         4,019                                                                          (302 )                                                                        (397 )
     Income tax expense                                                                                        26,364                                  29,171                                  26,327                                  19,519                                  19,348  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
   Net income                                                                                                     $               69,800                                           $         67,052                                           $         61,614                                           $         61,332                                           $         58,526  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                              
Operating Pre-Provision Net Revenue by Year:
                                                                                                                                                          Year Ended December 31,
                                                                                               ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                            2016                                                                             2015
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------
Total non-interest income                                                                                         $               42,915                                                              $         29,768
   Less:
     Gains (losses) on sales of investment securities, net                                                                         1,059                                                                           615
     Unrealized gains (losses) on assets and liabilities measured at fair                                                              8                                                                            47
     value, net
     Loss on extinguishment of debt                                                                    --                                     (81 )
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------
Total operating non-interest income                                                                                               41,848                                                                        29,187
   Plus: net interest income                                                                                  657,213                                 492,576  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------
Net operating revenue (1)                                                                                         $              699,061                                           $        521,763  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
Total non-interest expense                                                                                                       330,949                                                                       260,606
   Less:
     Net (gain) loss on sales and valuations of repossessed and other                                                               (125 )                                                                      (2,070 )
     assets
     Acquisition / restructure expense                                                                         12,412                                   8,837  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------
Total operating non-interest expense (1)                                                                          $              318,662                                           $        253,839  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================
                                                                                                                                                                 
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------
Operating pre-provision net revenue (2)                                                                           $              380,399                                           $        267,924  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
   Plus:
     Non-operating revenue adjustments                                                                                             1,067                                                                           581
   Less:
     Provision for credit losses                                                                                                   8,000                                                                         3,200
     Non-operating expense adjustments                                                                                            12,287                                                                         6,767
     Income tax expense                                                                                       101,381                                  64,294  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------
   Net income                                                                                                     $              259,798                                           $        194,244  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                              
Tangible Common Equity:
                                                                                                                        Dec 31, 2016                                                                     Sep 30, 2016                                                                  Jun 30, 2016                                                                  Mar 31, 2016                                                                  Dec 31, 2015
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                                                                                                                          (dollars and shares in thousands)
Total stockholders’ equity                                                                                        $            1,891,529                                                              $      1,857,354                                                              $      1,796,210                                                              $      1,660,163                                                                     1,591,502
   Less: goodwill and intangible assets                                                                       302,894                                 303,592                                 304,289                                 303,962                                 305,354  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total tangible stockholders’ equity                                                                                            1,588,635                                                                     1,553,762                                                                     1,491,921                                                                     1,356,201                                                                     1,286,148
   Less: preferred stock                                                                               --                          --                          --                          --                          --  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total tangible common equity                                                                                                   1,588,635                                                                     1,553,762                                                                     1,491,921                                                                     1,356,201                                                                     1,286,148
   Plus: deferred tax - attributed to intangible assets                                                         4,949                                   5,304                                   5,594                5,828                                   6,093  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total tangible common equity, net of tax                                                                          $            1,593,584                                           $      1,559,066                                           $      1,497,515                                           $      1,362,029                                           $      1,292,241  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Total assets                                                                                                      $           17,200,843                                                              $     17,042,602                                                              $     16,728,767                                                                    15,248,039                                                                    14,275,089
   Less: goodwill and intangible assets, net                                                                  302,894                                 303,592                                 304,289                                 303,962                                 305,354  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Tangible assets                                                                                                               16,897,949                                                                    16,739,010                                                                    16,424,478                                                                    14,944,077                                                                    13,969,735
   Plus: deferred tax - attributed to intangible assets                                                         4,949                                   5,304                                   5,594                                   5,828                                   6,093  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Total tangible assets, net of tax                                                                                 $           16,902,898                                           $     16,744,314                                           $     16,430,072                                           $     14,949,905                                           $     13,975,828  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Tangible common equity ratio (3)                                                                                                     9.4 %                                                                         9.3 %                                                                         9.1 %                                                                         9.1 %                                                                         9.2 %
Common shares outstanding                                                                                                        105,071                                                                       105,071                                                                       105,084                                                                       103,513                                                                       103,087
Tangible book value per share, net of tax (4)                                                                     $                15.17                                                              $          14.84                                                              $          14.25                                                              $          13.16                                                              $          12.54
                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                              
Efficiency Ratio by Quarter:
                                                                                                                                                                                                                                                                                 Three Months Ended
                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                        Dec 31, 2016                                                                     Sep 30, 2016                                                                  Jun 30, 2016                                                                  Mar 31, 2016                                                                  Dec 31, 2015
                                                                                               ---------------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                                                                                                                                   (in thousands)
Total operating non-interest expense                                                                              $               82,658                                           $         82,424                                           $         77,785                                           $         75,795                                           $         72,845  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
   Divided by:
     Total net interest income                                                                                    $              175,269                                                              $        172,547                                                              $        163,686                                                              $        145,711                                                              $        143,343
   Plus:
     Tax equivalent interest adjustment                                                                                            9,165                                                                         8,599                                                                         8,704                                                                         8,435                                                                         8,433
     Operating non-interest income                                                                             10,482                                  10,676                                   8,553                                  12,137                                   9,436  
                                                                                               -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                  $              194,916                                           $        191,822                                           $        180,943                                           $        166,283                                           $        161,212  
                                                                                               ==================== ==================== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Efficiency ratio - tax equivalent basis (5)                                                                                         42.4 %                                                                        43.0 %                                                                        43.0 %                                                                        45.6 %                                                                        45.2 %
                                                                                                                       
Efficiency Ratio by Year:
                                                                                                                                                          Year Ended December 31,
                                                                                               ---------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        2016                                                                             2015
                                                                           ---------------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                          (in thousands)
Total operating non-interest expense                                                          $              318,662                                           $        253,839  
                                                                           ==================== ==================== ====================                      ==================== ============== ====================
   Divided by:
     Total net interest income                                                                $              657,213                                                              $        492,576
   Plus:
     Tax equivalent interest adjustment                                                                       34,902                                                                        31,883
     Operating non-interest income                                                         41,848                                  29,187  
                                                                           -------------------- -------------------- --------------------                      -------------------- -------------- --------------------
                                                                                              $              733,963                                           $        553,646  
                                                                           ==================== ==================== ====================                      ==================== ============== ====================
Efficiency ratio - tax equivalent basis (5)                                                                     43.4 %                                                                        45.8 %
                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                          
Allowance for Credit Losses, Adjusted for Acquisition Accounting:
                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                    Dec 31, 2016                                                                     Sep 30, 2016                                                                  Jun 30, 2016                                                                  Mar 31, 2016                                                                  Dec 31, 2015
                                                                           ---------------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                                                                                                                                               (in thousands)
Allowance for credit losses                                                                   $              124,704                                                              $        122,884                                                              $        122,104                                                              $        119,227                                                              $        119,068
Plus: remaining credit marks
   Acquired performing loans                                                                                  34,392                                                                        41,020                                                                        45,225                                                                         9,646                                                                        12,154
   Purchased credit impaired loans                                                         12,872                                  15,093                                  16,438                                   6,760                                   8,491  
                                                                           -------------------- -------------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Adjusted allowance for credit losses                                                                         171,968                                                                       178,997                                                                       183,767                                                                       135,633                                                                       139,713
                                                                                                                                                                                                                                                                                                                                                                                                          
Gross loans held for investment and deferred fees, net                                                    13,189,527                                                                    13,012,262                                                                    12,855,511                                                                    11,217,860                                                                    11,112,854
Plus: remaining credit marks
   Acquired performing loans                                                                                  34,392                                                                        41,020                                                                        45,225                                                                         9,646                                                                        12,154
   Purchased credit impaired loans                                                         12,872               15,093               16,438                6,760                8,491  
                                                                           -------------------- -------------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- --------------------
Adjusted loans, net of deferred fees and costs                                                            13,236,791                                                                    13,068,375                                                                    12,917,174                                                                    11,234,266                                                                    11,133,499
                                                                                                                                                                                                                                                                                                                                                                                                          
Allowance for credit losses to gross loans                                                                      0.95 %                                                                        0.94 %                                                                        0.95 %                                                                        1.06 %                                                                        1.07 %
Allowance for credit losses to gross loans, adjusted for                                                        1.30 %                                                                        1.37 %                                                                        1.42 %                                                                        1.21 %                                                                        1.25 %
acquisition accounting (6)
                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                       
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
                                                                                                               
Regulatory Capital:
                                                                                                               
                                                                                                                                                                                      December 31,
                                                                                                              ------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                        2016                                                         2015
                                                                                                              ---------------------------------------------------------                                          ---------------------------------------------------------
                                                                                                                                                                                     (in thousands)
Common Equity Tier 1:
  Common equity                                                                                                                  $      1,891,529                                                                                   $      1,591,502
    Less:
      Non-qualifying goodwill and intangibles                                                                                             294,754                                                                                            293,487
      Disallowed unrealized losses on equity securities                                                                            --                                                                                     --
      Disallowed deferred tax asset                                                                                                         1,400                                                                                              5,001
      AOCI related adjustments                                                                                                            (13,470 )                                                                                           10,228
      Unrealized gain on changes in fair value liabilities                                                               8,118                                                        6,309  
                                                                                                              -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Common equity Tier 1 (regulatory) (7) (10)                                                                                     $      1,600,727                                                                $      1,276,477  
                                                                                                              ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                  
  Plus:
    Trust preferred securities                                                                                                             81,500                                                                                             81,500
    Preferred stock                                                                                                                --                                                                                     --
  Less:
    Disallowed deferred tax asset                                                                                                             934                                                                                              7,502
    Unrealized gain on changes in fair value of liabilities                                                              5,412                                                        9,464  
                                                                                                              -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Tier 1 capital (8) (10)                                                                                                        $      1,675,881                                                                $      1,341,011  
                                                                                                              ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                  
    Divided by: estimated risk-weighted assets (regulatory (8) (10)                                                              $     16,006,927                                                                                   $     13,193,563
                                                                                                                                                                                                                  
  Common equity Tier 1 ratio (8) (10)                                                                                                        10.0 %                                                                                              9.7 %
                                                                                                                                                                                                                  
Total Capital:
  Tier 1 capital (regulatory) (7) (10)                                                                                           $      1,675,881                                                                                   $      1,341,011
    Plus:
      Subordinated debt                                                                                                                   300,139                                                                                            140,097
      Qualifying allowance for credit losses                                                                                              124,704                                                                                            119,068
      Other                                                                                                                                 6,978                                                                                              3,296
    Less: Tier 2 qualifying capital deductions                                                                  --                                               --  
                                                                                                              -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Tier 2 capital                                                                                                                 $        431,821                                                                $        262,461  
                                                                                                              ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                               
                                                                                                              ---------------------------------------------------------                                          ---------------------------------------------------------
  Total capital                                                                                                                  $      2,107,702                                                                $      1,603,472  
                                                                                                              ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                  
Total capital ratio                                                                                                                          13.2 %                                                                                             12.2 %
                                                                                                                                                                                                                  
Classified assets to Tier 1 capital plus allowance:
  Classified assets                                                                                                              $        211,782                                                                                   $        221,126
  Divided by:
    Tier 1 capital (8) (10)                                                                                                             1,675,881                                                                                          1,341,011
    Plus: Allowance for credit losses                                                                                  124,704                                                      119,068  
                                                                                                              -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
  Total Tier 1 capital plus allowance for credit losses                                                                          $      1,800,585                                                                $      1,460,079  
                                                                                                              ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                  
Classified assets to Tier 1 capital plus allowance (9) (10)                                                                                  11.8 %                                                                                             15.1 %
                                                                                                                                                                                                                  
 (1)   We believe these non-GAAP measurements provide a useful indication
                          of the cash generating capacity of the Company.
 (2)                      We believe this non-GAAP measurement is a key indicator of the
                          earnings power of the Company.
 (3)                      We believe these non-GAAP ratios provide an important metric with
                          which to analyze and evaluate financial condition and capital
                          strength.
 (4)                      We believe this non-GAAP measurement improves the comparability to
                          other institutions that have not engaged in acquisitions that
                          resulted in recorded goodwill and other intangibles.
 (5)                      We believe this non-GAAP ratio provides a useful metric to measure
                          the operating efficiency of the Company.
 (6)                      We believe this non-GAAP ratio is a useful metric in understanding
                          the Company’s total allowance for credit losses, adjusted for
                          acquisition accounting, because under GAAP, a company’s allowance
                          for credit losses is not carried over in an acquisition, rather
                          these loans are shown as being purchased at a discount that factors
                          in expected future credit losses.
 (7)                      Under the current guidelines of the Federal Reserve and the Federal
                          Deposit Insurance Corporation, common equity Tier 1 capital consists
                          of common stock, retained earnings, and minority interests in
                          certain subsidiaries, less most other intangible assets.
 (8)                      Common equity Tier 1 is often expressed as a percentage of
                          risk-weighted assets. Under the risk-based capital framework, a
                          bank’s balance sheet assets and credit equivalent amounts of
                          off-balance sheet items are assigned to one of the risk categories
                          defined under new capital guidelines. The aggregated dollar amount
                          in each category is then multiplied by the risk weighting assigned
                          to that category. The resulting weighted values from each category
                          are added together and this sum is the risk-weighted assets total
                          that, as adjusted, comprises the denominator (risk-weighted assets)
                          to determine the common equity Tier 1 ratio. Common equity Tier 1 is
                          divided by the risk-weighted assets to determine the common equity
                          Tier 1 ratio. We believe this non-GAAP ratio provides an important
                          metric with which to analyze and evaluate financial condition and
                          capital strength.
 (9)                      We believe this non-GAAP ratio provides an important regulatory
                          metric to analyze asset quality.
(10)                      Current quarter is preliminary until Call Report is filed.
                           

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170126006314r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170126006314/en/

SOURCE: Western Alliance Bancorporation

Western Alliance Bancorporation 
Dale Gibbons, 602-952-5476


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