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Section 1: 8-K (8-K)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):  January 25, 2018
WESTERN ALLIANCE BANCORPORATION
(Exact name of registrant as specified in its charter)
Delaware
001-32550
88-0365922
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
One E. Washington Street, Phoenix, Arizona  85004
 (Address of principal executive offices)               (Zip Code)
(602) 389-3500
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨





ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On January 25, 2018, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended December 31, 2017 and posted on its website its fourth quarter 2017 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company.  Copies of the press release and presentation slides are attached hereto as Exhibits 99.1 and 99.2, respectively.  
The information in this report (including Exhibits 99.1 and 99.2 hereto) is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
99.1         Press Release dated January 25, 2018.
99.2         Fourth Quarter 2017 Earnings Conference Call dated January 26, 2018.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
WESTERN ALLIANCE BANCORPORATION
 
(Registrant)
 
 
 
 
 
 
 
/s/ Dale Gibbons
 
 
 
 
 
Dale Gibbons
 
 
Executive Vice President and
 
Chief Financial Officer
 
 
 
 
 
 
 
 
 
Date:
January 25, 2018
 



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Western Alliance Bancorporation
 
391898731_wallogo01.jpg
One East Washington Street
 
Phoenix, AZ 85004
 
www.westernalliancebancorporation.com
 
 
 


PHOENIX--(BUSINESS WIRE)--January 25, 2018

FOURTH QUARTER AND FULL YEAR 2017 FINANCIAL RESULTS
Net income
 
Earnings per share
 
Net interest margin
 
Efficiency ratio
 
Book value per
common share
$89.3 million
 
$0.85
 
4.73%
 
40.47%
 
$21.13
CEO COMMENTARY:
Robert Sarver, Chairman and CEO commented, “The year 2017 ended as expected for Western Alliance with outstanding results for our shareholders. Our performance is underscored by strong organic loan and deposit growth, plus expanding revenue well over the rate of expense growth. Our core EPS2 grew 22% year over year from $2.54 to $3.10. Net income grew 25% from $259.8 million to $325.5 million.
For the past three years, we have posted organic annual growth of $1.5 billion to $3.0 billion in total assets. Total loans grew $1.89 billion to $15.09 billion for the year, up $572 million for the quarter. Total deposits grew $2.42 billion to $16.97 billion for the year, up $68 million for the quarter. Our hands-on approach led to strong metrics for asset quality – nonperforming assets to total assets for the year was 0.36% compared to 0.51% in 2016 and net loan losses for the year were 0.01% of total loans.
With the benefits of tax reform ahead, coupled with the energy and drive that our bankers bring to clients in our markets, we are well positioned to continue our strong operating performance."
LINKED-QUARTER BASIS
FULL YEAR
 
 
FINANCIAL HIGHLIGHTS:
Net income and earnings per share of $89.3 million and $0.85 compared to $82.8 million and $0.79, respectively
Net operating revenue of $223.3 million constituting growth of $11.6 million compared to an increase in operating non-interest expenses of $6.4 million1
Operating pre-provision net revenue of $127.8 million up $5.2 million from $122.7 million1
Income tax expense includes the effect of the Tax Cut and Jobs Act and related actions, which in aggregate resulted in essentially no change in income performance
 
Net income of $325.5 million and earnings per share of $3.10, compared to $259.8 million and $2.50, respectively
Net operating revenue of $827.7 million, constituting year-over-year growth of 18.4%, or $128.6 million, compared to an increase in operating non-interest expenses of 13.3%, or $42.3 million1  
Operating pre-provision net revenue of $466.6 million up $86.2 million from $380.4 million 1 
Income tax expense increased $24.9 million due to an increase in pre-tax income, while the effective tax rate was stable at 28%

FINANCIAL POSITION RESULTS:
Total loans of $15.09 billion, up $572 million
Total deposits of $16.97 billion, up $68 million
Stockholders' equity of $2.23 billion, up $84 million
 
Increase in total loans of $1.89 billion
Increase in total deposits of $2.42 billion
Increase in stockholders' equity of $338 million
LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.36% compared to 0.42%
Annualized net loan charge-offs to average loans outstanding of 0.04%, compared to 0.01%
 
Nonperforming assets to total assets of 0.36%, compared to 0.51%
Net loan charge-offs to average loans outstanding of 0.01%, compared to 0.02%
KEY PERFORMANCE METRICS:
Net interest margin of 4.73%, compared to 4.65%
Return on average assets and return on tangible common equity1 of 1.79% and 18.80%, compared to 1.71% and 18.18%, respectively
Tangible common equity ratio of 9.6%, compared to 9.4% 1 
Tangible book value per share, net of tax, of $18.31, an increase from $17.53 1 
Operating efficiency ratio of 40.7%, compared to 40.0% 1 
 
Net interest margin of 4.65%, compared to 4.58%
Return on average assets and return on tangible common equity1 of 1.72% and 18.32%, compared to 1.61% and 17.71%, respectively
Tangible common equity ratio of 9.6%, compared to 9.4% 1 
Tangible book value per share, net of tax, of $18.31 an increase of 20.7% from $15.17 1 
Operating efficiency ratio of 41.5%, compared to 43.4% 1 

1  
See reconciliation of Non-GAAP Financial Measures beginning on page 19.  
2  
Non-GAAP Financial Measure, excludes acquisition / restructure expense, net of tax.

1



Income Statement
Net interest income was $211.0 million in the fourth quarter 2017, an increase of $9.4 million from $201.6 million in the third quarter 2017, and an increase of $35.8 million or 20.4%, compared to the fourth quarter 2016. Net interest income in the fourth quarter 2017 includes $7.1 million of total accretion income from acquired loans, compared to $7.5 million in the third quarter 2017, and $7.0 million in the fourth quarter 2016. For 2017, net interest income was $784.7 million an increase of $127.5 million or 19.4%, from $657.2 million in 2016.
The Company’s net interest margin in the fourth quarter 2017 was 4.73%, an increase from 4.65% the third quarter 2017, and an increase from 4.57% in the fourth quarter 2016. The increase in net interest margin from the third quarter 2017 primarily relates to an increase in yield on most interest-earning asset categories. The increase in net interest margin from the fourth quarter 2016 primarily relates to the rise in short-term interest rates during the year. For 2017, net interest margin was 4.65%, compared to 4.58% in 2016. The increase in net interest margin from the prior year relates primarily to an increase in loan yield resulting from additional income from the Hotel Franchise Finance acquisition, partially offset by higher costs of deposits and qualifying debt.
Operating non-interest income was $12.3 million for the fourth quarter 2017, compared to $10.1 million for the third quarter 2017, and $10.4 million for the fourth quarter 2016.1 Operating non-interest income for the fourth quarter 2017 was elevated as a result of warrant income of $1.4 million and net gains on SBA loan sales of $1.2 million. For 2017, operating non-interest income was $43.0 million an increase of $1.2 million or 2.8%, compared to $41.8 million in 2016.1 
Net operating revenue was $223.3 million for the fourth quarter 2017, an increase of $11.6 million, compared to $211.7 million for the third quarter 2017, and an increase of $37.6 million or 20.2%, compared to $185.7 million for the fourth quarter 2016.1 For 2017, net operating revenue was $827.7 million an increase of $128.6 million, or 18.4%, compared to $699.1 million in 2016.1 
Operating non-interest expense was $95.4 million for the fourth quarter 2017, compared to $89.0 million for the third quarter 2017, and $82.7 million for the fourth quarter 2016.1 The Company’s operating efficiency ratio1 on a tax equivalent basis was 40.7% for the fourth quarter 2017, compared to 40.0% for the third quarter 2017, and 42.4% for the fourth quarter 2016. For 2017, operating non-interest expense was $361.0 million, an increase of $42.3 million or 13.3%, compared to $318.7 million in 2016.1 This increase was primarily driven by an increase in salaries and benefits, including incentive compensation, to accommodate growth and performance.
Income tax expense was $35.0 million for the fourth quarter 2017, compared to $34.9 million for the third quarter 2017, and $26.4 million for the fourth quarter 2016. Income tax expense for the fourth quarter 2017 is comparable to the prior quarter due to remeasurement of the Company's deferred tax assets and liabilities as a result of the Tax Cut and Jobs Act and related actions. This adjustment to the deferred tax asset is management's best estimate based upon the information available as of this earnings release and is subject to change as final tax related calculations are completed in conjunction with the filing of our Form 10-K and the one-year remeasurement period granted by the SEC.
Net income was $89.3 million for the fourth quarter 2017, an increase of $6.5 million from $82.8 million for the third quarter 2017, and an increase of $19.5 million or 28.0%, from $69.8 million for the fourth quarter 2016. Earnings per share was $0.85 for the fourth quarter 2017, compared to $0.79 for the third quarter 2017, and $0.67 for the fourth quarter 2016. For 2017, net income was $325.5 million an increase of $65.7 million or 25.3%, compared to $259.8 million in 2016. Earnings per share for 2017 was $3.10 an increase of 23.9%, compared to $2.50 in 2016.
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 2017, the Company’s operating PPNR was $127.8 million, up from $122.7 million in the third quarter 2017, and up 24.1% from $103.1 million in the fourth quarter 2016.1 The non-operating items1 for the fourth quarter 2017 consisted primarily of net gains on sales of investment securities of $1.4 million. For 2017, operating PPNR was $466.6 million an increase of $86.2 million or 22.7%, from $380.4 million in 2016.1
The Company had 1,725 full-time equivalent employees and 47 offices at December 31, 2017, compared to 1,673 employees and 47 offices at September 30, 2017, and 1,514 employees and 48 offices at December 31, 2016.


2



Balance Sheet
Gross loans totaled $15.09 billion at December 31, 2017, an increase of $572 million from $14.52 billion at September 30, 2017, and an increase of $1.89 billion from $13.21 billion at December 31, 2016. The year-over-year increase is due to organic loan growth. At December 31, 2017, the allowance for credit losses to gross loans held for investment was 0.93%, compared to 0.94% at September 30, 2017, and 0.95% at December 31, 2016. At December 31, 2017, the allowance for credit losses to total organic loans was 1.03%, compared to 1.06% at September 30, 2017, and 1.11% at December 31, 2016. The Company defines its organic loans as those loans that have not been acquired in a transaction accounted for as a business combination.
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. Credit discounts on acquired loans are included as a reduction to gross loans. These discounts totaled $27.0 million at December 31, 2017, compared to $32.7 million at September 30, 2017, and $47.3 million at December 31, 2016.
Deposits totaled $16.97 billion at December 31, 2017, an increase of $68 million from $16.90 billion at September 30, 2017, and an increase of $2.42 billion from $14.55 billion at December 31, 2016. The increase from both the prior quarter and from December 31, 2016 is the result of organic deposit growth. Non-interest bearing deposits were $7.43 billion at December 31, 2017, compared to $7.61 billion at September 30, 2017, and $5.63 billion at December 31, 2016. Non-interest bearing deposits comprised 43.8% of total deposits at December 31, 2017, compared to 45.0% at September 30, 2017, and 38.7% at December 31, 2016. The proportion of savings and money market balances to total deposits was 37.3%, compared to 37.3% at September 30, 2017, and 42.1% at December 31, 2016. Certificates of deposit as a percentage of total deposits were 9.6% at December 31, 2017, compared to 9.4% at September 30, 2017, and 10.0% at December 31, 2016. The Company’s ratio of loans to deposits was 88.9% at December 31, 2017, compared to 85.9% at September 30, 2017, and 90.8% at December 31, 2016.
Borrowings totaled $390 million at December 31, 2017, an increase from zero at September 30, 2017, and an increase of $310 million from $80 million at December 31, 2016. The increase in borrowings from both the prior quarter and the prior year is due to an increase in FHLB overnight advances.
Qualifying debt totaled $377 million at December 31, 2017, compared to $373 million at September 30, 2017, and $368 million at December 31, 2016.
Stockholders’ equity at December 31, 2017 was $2.23 billion, compared to $2.15 billion at September 30, 2017, and $1.89 billion at December 31, 2016.
At December 31, 2017, tangible common equity, net of tax, was 9.6% of tangible assets1 and total capital was 13.2% of risk-weighted assets. The Company’s tangible book value per share1 was $18.31 at December 31, 2017, up 20.7% from December 31, 2016.
Total assets increased 2.0% to $20.33 billion at December 31, 2017, from $19.92 billion at September 30, 2017, and increased 18.2% from $17.20 billion at December 31, 2016. The increase in total assets from the prior year relates primarily to organic loan growth and an increase in investment securities resulting from utilized cash from increased deposits.
Asset Quality
The provision for credit losses was $5.0 million for the fourth quarter 2017, consistent with $5.0 million for the third quarter 2017, and compared to $1.0 million for the fourth quarter 2016. Net loan charge-offs (recoveries) in the fourth quarter 2017 were $1.4 million or 0.04% of average loans (annualized), compared to $0.4 million, or 0.01%, in the third quarter 2017, and $(0.8) million, or (0.03)%, in the fourth quarter 2016.
Nonaccrual loans decreased $11.1 million to $43.9 million during the quarter and increased $3.7 million during the year. Loans past due 90 days and still accruing interest totaled $43 thousand at December 31, 2017, compared to $44 thousand at September 30, 2017, and $1.1 million at December 31, 2016. Loans past due 30-89 days and still accruing interest totaled $10.1 million at quarter end, an increase from $5.2 million at September 30, 2017, and an increase from $6.3 million at December 31, 2016.
Repossessed assets totaled $28.5 million at December 31, 2017, a decrease of $0.5 million from $29.0 million at September 30, 2017, and a decrease of $19.3 million from $47.8 million at December 31, 2016. Adversely graded loans and non-performing assets totaled $355.2 million at December 31, 2017, a decrease of $51.0 million from $406.2 million at September 30, 2017, and a decrease of $12.3 million from $342.9 million at December 31, 2016.
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, was 10.3% at December 31, 2017, compared to 10.8% at September 30, 2017, and 11.8% at December 31, 2016.1 





1
See reconciliation of Non-GAAP Financial Measures beginning on page 19.

3



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 and First Independent Bank, Torrey Pines Bank, and Bridge Bank.
The Company's National Business Lines ("NBL") segment provides specialized banking services to niche markets. The Company's NBL reportable segments include Homeowner Associations ("HOA") Services, Hotel Franchise Finance ("HFF") 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 HFF NBL includes the hotel franchise loan portfolio purchased from GE Capital 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 $8.38 billion at December 31, 2017, an increase of $428 million during the quarter, and an increase of $835 million during the year. Each of the regional segments had loan growth during the quarter, with Arizona and Nevada contributing the largest increases of $192 million and $159 million, respectively. The growth in loans during the year was primarily driven by an increase of $368 million in Arizona and $180 million in Northern California. Total deposits for the regional segments were $12.94 billion, a decrease of $261 million during the quarter, and an increase of $1.43 billion during the year. Arizona and Southern California had decreases in deposits during the quarter of $357 million and $51 million, respectively, which was partially offset by an increase of $146 million in Northern California. Each of the regional segments generated increased deposits during the year, with Arizona contributing the largest increase of $998 million, followed by Nevada and Northern California with increases of $220 million and $138 million, respectively.
Pre-tax income for the regional segments was $83.5 million for the three months ended December 31, 2017, a decrease of $2.6 million from the three months ended September 30, 2017, and an increase of $7.1 million from the three months ended December 31, 2016. Arizona and Nevada had the largest decreases in pre-tax income of $3.1 million and $2.7 million, respectively, compared to the three months ended September 30, 2017, which were partially offset by an increase of $3.7 million in Northern California. Arizona, Northern California, and Nevada had increases in pre-tax income from the three months ended December 31, 2016 of $3.1 million, $2.9 million, and $2.0 million, respectively, which were partially offset by a decrease of $0.9 million in Southern California. For the year ended December 31, 2017, the regional segments reported total pre-tax income of $327.0 million, an increase of $30.0 million compared to the year ended December 31, 2016. Arizona and Nevada contributed the largest increases of $22.0 million and $8.9 million, respectively, which were partially offset by decreases of $0.5 million and $0.4 million in Northern California and Southern California, respectively.
The NBL segments reported gross loan balances of $6.71 billion at December 31, 2017, an increase of $145 million during the quarter, and an increase of $1.06 billion during the year. The increase in loans for the NBL segments compared to the prior quarter relates primarily to the HFF, Technology & Innovation, and Other NBLs segments, which increased by $55 million, $49 million, and $30 million, respectively. During the year, the increases were driven by the Other NBLs, Public & Nonprofit Finance, and Technology & Innovation, which increased loans by $766 million, $126 million, and $87 million, respectively. Total deposits for the NBL segments were $3.97 billion, an increase of $355 million during the quarter, and an increase of $1.04 billion during the year. The Technology & Innovation and HOA Services segments increased deposits during the quarter by $278 million and $77 million, respectively. The increase of $1.04 billion during the year is the result of growth in the Technology & Innovation and HOA Services of $699 million and $340 million, respectively.
Pre-tax income for the NBL segments was $50.8 million for the three months ended December 31, 2017, an increase of $5.2 million from the three months ended September 30, 2017, and an increase of $10.3 million from the three months ended December 31, 2016. The increase in pre-tax income from the prior quarter relates primarily to the Other NBLs segment, which increased $6.6 million. This increase was offset by decreases in pre-tax income from the HFF and Public & Nonprofit Finance segments of $1.4 million and $0.3 million, respectively. All NBLs had increases in pre-tax income from the prior year, with the Other NBLs and Technology & Innovation segments contributing the largest increases of $3.9 million and $2.2 million, respectively. Pre-tax income for the NBLs for the year ended December 31, 2017 totaled $176.5 million, compared to $140.0 million for the year ended December 31, 2016. All NBL segments had increases in pre-tax income compared to the year ended December 31, 2016, with the largest increases in HFF and HOA Services of $12.3 million, and $8.3 million, respectively.

4



Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter 2017 financial results at 12:00 p.m. ET on Friday, January 26, 2018. Participants may access the call by dialing 1-888-317-6003 and using passcode 0958016 or via live audio webcast using the website link https://services.choruscall.com/links/wal180126.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 26th through 9:00 a.m. ET February 26th by dialing 1-877-344-7529 passcode: 10115798.
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 fourth quarter 2017, the Company elected to early adopt Accounting Standards Update ("ASU") 2017-12, Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU simplify the application of hedge accounting by changing how companies assess effectiveness of hedging instruments. The guidance also amends the presentation and disclosure requirements for hedging activities. Under the new accounting guidance, a qualitative hedge effectiveness assessment can be performed after the initial quantitative assessment. In addition, the timing of the completion of the initial quantitative hedge effectiveness assessment may be pushed out to the first quarterly reporting date subsequent to entering into the hedge.
Upon adoption of the new accounting guidance, the Company recorded a cumulative basis adjustment of $0.5 million for its fair value hedges as an adjustment to retained earnings as of January 1, 2017 and, the effects of hedging ineffectiveness previously recognized in each of the quarters of 2017 was reversed, which totaled less than $0.1 million for the year.
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, 2016 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 $20 billion in assets, Western Alliance Bancorporation (NYSE: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.

5



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Summary Consolidated Financial Data
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31,
 
 
 
 
 
 
 
 
2017
 
2016
 
Change %
 
 
 
 
 
 
 
 
(in millions)
 
 
 
 
 
 
 
 
Total assets
 
$
20,329.1

 
$
17,200.8

 
18.2
%
 
 
 
 
 
 
Total loans, net of deferred fees
 
15,093.9

 
13,208.5

 
14.3

 
 
 
 
 
 
Securities and money market investments
 
3,820.4

 
2,767.8

 
38.0

 
 
 
 
 
 
Total deposits
 
16,972.5

 
14,549.8

 
16.7

 
 
 
 
 
 
Borrowings
 
390.0

 
80.0

 
NM

 
 
 
 
 
 
Qualifying debt
 
376.9

 
367.9

 
2.4

 
 
 
 
 
 
Stockholders' equity
 
2,229.2

 
1,891.5

 
17.8

 
 
 
 
 
 
Tangible common equity, net of tax (1)
 
1,931.1

 
1,593.6

 
21.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Income Statement Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended December 31,
 
For the Year Ended December 31,
 
 
2017
 
2016
 
Change %
 
2017
 
2016
 
Change %
 
 
(in thousands, except per share data)
 
 
 
(in thousands, except per share data)
 
 
Interest income
 
$
228,459

 
$
187,411

 
21.9
%
 
$
845,513

 
$
700,506

 
20.7
%
Interest expense
 
17,430

 
12,142

 
43.6

 
60,849

 
43,293

 
40.6

Net interest income
 
211,029

 
175,269

 
20.4

 
784,664

 
657,213

 
19.4

Provision for credit losses
 
5,000

 
1,000

 
NM

 
17,250

 
8,000

 
NM

Net interest income after provision for credit losses
 
206,029

 
174,269

 
18.2

 
767,414

 
649,213

 
18.2

Non-interest income
 
13,688

 
10,540

 
29.9

 
45,344

 
42,915

 
5.7

Non-interest expense
 
95,398

 
88,645

 
7.6

 
360,941

 
330,949

 
9.1

Income before income taxes
 
124,319

 
96,164

 
29.3

 
451,817

 
361,179

 
25.1

Income tax expense
 
34,973

 
26,364

 
32.7

 
126,325

 
101,381

 
24.6

Net income
 
$
89,346

 
$
69,800

 
28.0

 
$
325,492

 
$
259,798

 
25.3

Diluted earnings per share
 
$
0.85

 
$
0.67

 
26.9

 
$
3.10

 
$
2.50

 
24.0

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

(1)
See Reconciliation of Non-GAAP Financial Measures.
NM
Changes +/- 100% are not meaningful.


6



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,
 
 
2017
 
2016
 
Change %
 
2017
 
2016
 
Change %
Diluted earnings per share
 
$
0.85

 
$
0.67

 
26.9
%
 
$
3.10

 
$
2.50

 
24.0
%
Book value per common share
 
21.13

 
18.00

 
17.4

 
 
 
 
 
 
Tangible book value per share, net of tax (1)
 
18.31

 
15.17

 
20.7

 
 
 
 
 
 
Average shares outstanding
(in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
104,342

 
103,788

 
0.5

 
104,179

 
103,042

 
1.1

Diluted
 
105,164

 
104,765

 
0.4

 
104,997

 
103,843

 
1.1

Common shares outstanding
 
105,487

 
105,071

 
0.4

 
 
 
 
 
 
Selected Performance Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (2)
 
1.79
%
 
1.63
 %
 
9.8
 %
 
1.72
%
 
1.61
%
 
6.8
 %
Return on average tangible common equity (1, 2)
 
18.80

 
17.59

 
6.9

 
18.32

 
17.71

 
3.4

Net interest margin (2)
 
4.73

 
4.57

 
3.5

 
4.65

 
4.58

 
1.5

Operating efficiency ratio - tax equivalent basis (1)
 
40.73

 
42.42

 
(4.0
)
 
41.51

 
43.42

 
(4.4
)
Loan to deposit ratio
 
88.93

 
90.78

 
(2.0
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans outstanding (2)
 
0.04
%
 
(0.03
)%
 
NM

 
0.01
%
 
0.02
%
 
(50.0
)%
Nonaccrual loans to gross organic loans
 
0.29

 
0.31

 
(6.5
)
 
 
 
 
 
 
Nonaccrual loans and repossessed assets to total assets
 
0.36

 
0.51

 
(29.4
)
 
 
 
 
 
 
Loans past due 90 days and still accruing to gross loans
 
0.00

 
0.01

 
(100.0
)
 
 
 
 
 
 
Allowance for credit losses to gross loans
 
0.93

 
0.95

 
(2.1
)
 
 
 
 
 
 
Allowance for credit losses to nonaccrual loans
 
318.61

 
309.65

 
2.9

 
 
 
 
 
 
Capital Ratios (1):
 
 
 
 
 
 
 
 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
Tangible common equity (1)
 
9.6
%
 
9.4
%
 
9.4
%
Common Equity Tier 1 (1), (3)
 
10.4

 
10.4

 
10.0

Tier 1 Leverage ratio (1), (3)
 
10.3

 
10.1

 
9.9

Tier 1 Capital (1), (3)
 
10.8

 
10.8

 
10.5

Total Capital (1), (3)
 
13.2

 
13.3

 
13.2









(1)
See Reconciliation of Non-GAAP Financial Measures.
(2)
Annualized for the three month periods ended December 31, 2017 and 2016.
(3)
Capital ratios for December 31, 2017 are preliminary until the Call Report is filed.
NM
Changes +/- 100% are not meaningful.

7



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
Condensed Consolidated Income Statements
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
Three Months Ended December 31,
 
For the Year Ended December 31,
 
 
2017
 
2016
 
2017
 
2016
 
 
(dollars in thousands, except per share data)
Interest income:
 
 
 
 
 
 
 
 
Loans
 
$
200,204

 
$
168,881

 
$
747,510

 
$
636,596

Investment securities
 
26,312

 
16,725

 
88,639

 
58,540

Other
 
1,943

 
1,805

 
9,364

 
5,370

Total interest income
 
228,459

 
187,411

 
845,513

 
700,506

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
12,459

 
7,729

 
41,965

 
29,722

Qualifying debt
 
4,734

 
4,252

 
18,273

 
12,998

Borrowings
 
237

 
161

 
611

 
573

Total interest expense
 
17,430

 
12,142

 
60,849

 
43,293

Net interest income
 
211,029

 
175,269

 
784,664

 
657,213

Provision for credit losses
 
5,000

 
1,000

 
17,250

 
8,000

Net interest income after provision for credit losses
 
206,029

 
174,269

 
767,414

 
649,213

Non-interest income:
 
 
 
 
 
 
 
 
Service charges
 
5,157

 
4,865

 
20,346

 
18,824

Income from equity investments
 
1,519

 
1,054

 
4,496

 
2,664

Card income
 
1,796

 
1,381

 
6,313

 
5,226

Income from bank owned life insurance
 
965

 
904

 
3,861

 
3,762

Foreign currency income
 
906

 
747

 
3,536

 
3,419

Lending related income and gains (losses) on sale of loans, net
 
1,466

 
488

 
2,212

 
5,295

Gain (loss) on sales of investment securities, net
 
1,436

 
58

 
2,343

 
1,059

Other
 
443

 
1,043

 
2,237

 
2,666

Total non-interest income
 
13,688

 
10,540

 
45,344

 
42,915

Non-interest expenses:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
57,704

 
49,702

 
214,344

 
188,810

Legal, professional and directors' fees
 
6,490

 
7,600

 
29,814

 
24,610

Occupancy
 
6,532

 
6,944

 
27,860

 
27,303

Data processing
 
5,062

 
4,504

 
19,225

 
18,660

Insurance
 
3,687

 
3,468

 
14,042

 
12,898

Deposit costs
 
2,953

 
1,862

 
9,731

 
4,983

Marketing
 
1,176

 
1,164

 
3,804

 
3,596

Intangible amortization
 
408

 
697

 
2,074

 
2,788

Card expense
 
855

 
689

 
3,413

 
2,936

Loan and repossessed asset expenses
 
978

 
477

 
4,617

 
2,999

Net (gain) loss on sales and valuations of repossessed and other assets
 
(34
)
 
(34
)
 
(80
)
 
(125
)
Acquisition / restructure expense
 

 
6,021

 

 
12,412

Other
 
9,587

 
5,551

 
32,097

 
29,079

Total non-interest expense
 
95,398

 
88,645

 
360,941

 
330,949

Income before income taxes
 
124,319

 
96,164

 
451,817

 
361,179

Income tax expense
 
34,973

 
26,364

 
126,325

 
101,381

Net income
 
$
89,346

 
$
69,800

 
$
325,492

 
$
259,798

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
Diluted shares
 
105,164

 
104,765

 
104,997

 
103,843

Diluted earnings per share
 
$
0.85

 
$
0.67

 
$
3.10

 
$
2.50





8



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Five Quarter Condensed Consolidated Income Statements
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
Dec 31, 2016
 
 
(in thousands, except per share data)
Interest income:
 
 
 
 
 
 
 
 
 
 
Loans
 
$
200,204

 
$
191,096

 
$
183,657

 
$
172,553

 
$
168,881

Investment securities
 
26,312

 
23,584

 
20,629

 
18,114

 
16,725

Other
 
1,943

 
3,156

 
2,667

 
1,598

 
1,805

Total interest income
 
228,459

 
217,836

 
206,953

 
192,265

 
187,411

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
12,459

 
11,449

 
9,645

 
8,412

 
7,729

Qualifying debt
 
4,734

 
4,708

 
4,493

 
4,338

 
4,252

Borrowings
 
237

 
96

 
72

 
206

 
161

Total interest expense
 
17,430

 
16,253

 
14,210

 
12,956

 
12,142

Net interest income
 
211,029

 
201,583

 
192,743

 
179,309

 
175,269

Provision for credit losses
 
5,000

 
5,000

 
3,000

 
4,250

 
1,000

Net interest income after provision for credit losses
 
206,029

 
196,583

 
189,743

 
175,059

 
174,269

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
5,157

 
5,248

 
5,203

 
4,738

 
4,865

Income from equity investments
 
1,519

 
967

 
1,318

 
692

 
1,054

Card income
 
1,796

 
1,509

 
1,516

 
1,492

 
1,381

Income from bank owned life insurance
 
965

 
975

 
973

 
948

 
904

Foreign currency income
 
906

 
756

 
832

 
1,042

 
747

Lending related income and gains (losses) on sale of loans, net
 
1,466

 
97

 
227

 
422

 
488

Gains (losses) on sales of investment securities, net
 
1,436

 
319

 
(47
)
 
635

 
58

Other
 
443

 
585

 
579

 
630

 
1,043

Total non-interest income
 
13,688

 
10,456

 
10,601

 
10,599

 
10,540

Non-interest expenses:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
57,704

 
52,747

 
52,273

 
51,620

 
49,702

Legal, professional, and directors' fees
 
6,490

 
6,038

 
8,483

 
8,803

 
7,600

Occupancy
 
6,532

 
7,507

 
6,927

 
6,894

 
6,944

Data processing
 
5,062

 
4,524

 
4,375

 
5,264

 
4,504

Insurance
 
3,687

 
3,538

 
3,589

 
3,228

 
3,468

Deposit costs
 
2,953

 
2,904

 
2,133

 
1,741

 
1,862

Marketing
 
1,176

 
776

 
1,131

 
721

 
1,164

Intangible amortization
 
408

 
489

 
488

 
689

 
697

Card expense
 
855

 
966

 
861

 
731

 
689

Loan and repossessed asset expenses
 
978

 
1,263

 
1,098

 
1,278

 
477

Net (gain) loss on sales and valuations of repossessed and other assets
 
(34
)
 
266

 
231

 
(543
)
 
(34
)
Acquisition / restructure expense
 

 

 

 

 
6,021

Other
 
9,587

 
8,278

 
6,831

 
7,401

 
5,551

Total non-interest expense
 
95,398

 
89,296

 
88,420

 
87,827

 
88,645

Income before income taxes
 
124,319

 
117,743

 
111,924

 
97,831

 
96,164

Income tax expense
 
34,973

 
34,899

 
31,964

 
24,489

 
26,364

Net income
 
$
89,346

 
$
82,844

 
$
79,960

 
$
73,342

 
$
69,800

 
 
 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
 
Diluted shares
 
105,164

 
104,942

 
105,045

 
104,836

 
104,765

Diluted earnings per share
 
$
0.85

 
$
0.79

 
$
0.76

 
$
0.70

 
$
0.67




9



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Five Quarter Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
Dec 31, 2016
 
 
(in millions, except per share data)
Assets:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
416.8

 
$
650.4

 
$
606.7

 
$
647.0

 
$
284.5

Securities and money market investments
 
3,820.4

 
3,773.6

 
3,283.0

 
2,869.1

 
2,767.8

Loans held for sale
 

 
16.3

 
16.7

 
17.8

 
18.9

Loans held for investment:
 
 
 
 
 
 
 
 
 
 
Commercial
 
6,841.4

 
6,735.9

 
6,318.5

 
6,039.1

 
5,855.8

Commercial real estate - non-owner occupied
 
3,904.0

 
3,628.4

 
3,649.1

 
3,607.8

 
3,544.0

Commercial real estate - owner occupied
 
2,241.6

 
2,047.5

 
2,021.2

 
2,043.4

 
2,013.3

Construction and land development
 
1,632.2

 
1,666.4

 
1,601.7

 
1,601.7

 
1,478.1

Residential real estate
 
425.9

 
376.7

 
334.8

 
309.9

 
259.4

Consumer
 
48.8

 
50.7

 
47.9

 
43.0

 
39.0

Gross loans and deferred fees, net
 
15,093.9

 
14,505.6


13,973.2

 
13,644.9

 
13,189.6

Allowance for credit losses
 
(140.0
)
 
(136.4
)
 
(131.8
)
 
(127.6
)
 
(124.7
)
Loans, net
 
14,953.9

 
14,369.2

 
13,841.4

 
13,517.3

 
13,064.9

Premises and equipment, net
 
118.7

 
120.1

 
120.5

 
120.0

 
119.8

Other assets acquired through foreclosure, net
 
28.5

 
29.0

 
31.0

 
45.2

 
47.8

Bank owned life insurance
 
167.8

 
166.8

 
166.4

 
165.5

 
164.5

Goodwill and other intangibles, net
 
300.7

 
301.2

 
301.6

 
302.1

 
302.9

Other assets
 
522.3

 
495.6

 
477.4

 
438.5

 
429.7

Total assets
 
$
20,329.1

 
$
19,922.2

 
$
18,844.7

 
$
18,122.5

 
$
17,200.8

Liabilities and Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
Non-interest bearing demand deposits
 
$
7,434.0

 
$
7,608.7

 
$
6,859.4

 
$
6,114.1

 
$
5,632.9

Interest bearing:
 
 
 
 
 
 
 
 
 
 
Demand
 
1,586.2

 
1,406.4

 
1,480.8

 
1,449.3

 
1,346.7

Savings and money market
 
6,330.9

 
6,300.2

 
6,104.0

 
6,253.8

 
6,120.9

Time certificates
 
1,621.4

 
1,589.5

 
1,586.9

 
1,538.8

 
1,449.3

Total deposits
 
16,972.5

 
16,904.8

 
16,031.1

 
15,356.0

 
14,549.8

Customer repurchase agreements
 
26.0

 
26.1

 
32.7

 
35.7

 
41.7

Total customer funds
 
16,998.5

 
16,930.9

 
16,063.8

 
15,391.7

 
14,591.5

Borrowings
 
390.0

 

 

 

 
80.0

Qualifying debt
 
376.9

 
372.9

 
375.4

 
366.9

 
367.9

Accrued interest payable and other liabilities
 
334.5

 
472.8

 
346.8

 
394.9

 
269.9

Total liabilities
 
18,099.9

 
17,776.6

 
16,786.0

 
16,153.5

 
15,309.3

Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
Common stock and additional paid-in capital
 
1,384.4

 
1,378.8

 
1,376.4

 
1,370.3

 
1,373.8

Retained earnings
 
847.9

 
758.6

 
675.8

 
595.8

 
522.4

Accumulated other comprehensive (loss) income
 
(3.1
)
 
8.2

 
6.5

 
2.9

 
(4.7
)
Total stockholders' equity
 
2,229.2

 
2,145.6

 
2,058.7

 
1,969.0

 
1,891.5

Total liabilities and stockholders' equity
 
$
20,329.1

 
$
19,922.2

 
$
18,844.7

 
$
18,122.5

 
$
17,200.8



10



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Changes in the Allowance For Credit Losses
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
Dec 31, 2016
 
 
(in thousands)
Balance, beginning of period
 
$
136,421

 
$
131,811

 
$
127,649

 
$
124,704

 
$
122,884

Provision for credit losses
 
5,000

 
5,000

 
3,000

 
4,250

 
1,000

Recoveries of loans previously charged-off:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
406

 
619

 
1,759

 
328

 
1,144

Commercial real estate - non-owner occupied
 
58

 
1,168

 
360

 
355

 
691

Commercial real estate - owner occupied
 
119

 
613

 
46

 
178

 
45

Construction and land development
 
218

 
226

 
508

 
277

 
30

Residential real estate
 
120

 
108

 
1,299

 
251

 
287

Consumer
 
3

 
33

 

 
49

 
11

Total recoveries
 
924

 
2,767

 
3,972

 
1,438

 
2,208

Loans charged-off:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
2,019

 
2,921

 
651

 
2,595

 
1,267

Commercial real estate - non-owner occupied
 
275

 
175

 
1,808

 

 
1

Commercial real estate - owner occupied
 

 

 
11

 

 
1

Construction and land development
 

 

 

 

 
18

Residential real estate
 

 

 
332

 
115

 
60

Consumer
 
1

 
61

 
8

 
33

 
41

Total loans charged-off
 
2,295

 
3,157

 
2,810

 
2,743

 
1,388

Net loan charge-offs (recoveries)
 
1,371

 
390

 
(1,162
)
 
1,305

 
(820
)
Balance, end of period
 
$
140,050

 
$
136,421

 
$
131,811

 
$
127,649

 
$
124,704

 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans- annualized
 
0.04
%
 
0.01
%
 
(0.03
)%
 
0.04
%
 
(0.03
)%
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to gross loans
 
0.93
%
 
0.94
%
 
0.94
 %
 
0.94
%
 
0.95
 %
Allowance for credit losses to gross organic loans
 
1.03

 
1.06

 
1.08

 
1.08

 
1.11

Allowance for credit losses to nonaccrual loans
 
318.84

 
248.07

 
438.33

 
370.45

 
309.65

 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans
 
$
43,925

 
$
54,994

 
$
30,071

 
$
34,458

 
$
40,272

Nonaccrual loans to gross loans
 
0.29
%
 
0.38
%
 
0.22
 %
 
0.25
%
 
0.31
 %
Repossessed assets
 
$
28,540

 
$
28,992

 
$
30,988

 
$
45,200

 
$
47,815

Nonaccrual loans and repossessed assets to total assets
 
0.36
%
 
0.42
%
 
0.32
 %
 
0.44
%
 
0.51
 %
 
 
 
 
 
 
 
 
 
 
 
Loans past due 90 days, still accruing
 
$
43

 
$
44

 
$
4,021

 
$
3,659

 
$
1,067

Loans past due 90 days and still accruing to gross loans
 
0.00
%
 
0.00
%
 
0.03
 %
 
0.03
%
 
0.01
 %
Loans past due 30 to 89 days, still accruing
 
$
10,142

 
$
5,179