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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):  April 19, 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 April 19, 2018, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended March 31, 2018 and posted on its website its first quarter 2018 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 April 19, 2018.
99.2         First Quarter 2018 Earnings Conference Call dated April 20, 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:
April 19, 2018
 



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Western Alliance Bancorporation
 
393097454_wallogo01.jpg
One East Washington Street
 
Phoenix, AZ 85004
 
www.westernalliancebancorporation.com
 
 
 


PHOENIX--(BUSINESS WIRE)--April 19, 2018
FIRST QUARTER 2018 FINANCIAL RESULTS
Net income
 
Earnings per share
 
Net interest margin
 
Efficiency ratio
 
Book value per
common share
$100.9 million
 
$0.96
 
4.60%
 
42.38%
 
$21.67
CEO COMMENTARY:
Kenneth Vecchione, Chief Executive Officer commented, "Western Alliance is off to a solid start to the year with $100.9 million in net income and $0.96 EPS in Q1 2018. We are pleased with our loan growth of $466 million to $15.56 billion, and our deposit growth of $382 million to $17.35 billion. Asset quality remains healthy with a net charge-off rate of 0.04% and non-performing assets to total assets of 0.33%. Our return on average assets and tangible common equity1 rose for the quarter to 1.99% and 20.46%. With the quarter’s increase in tangible book value per share1 to $18.86, Western Alliance is building on the momentum of 2017 and on track to deliver for its shareholders in 2018.
The economy continues to expand and we believe that the benefits of the tax reform act are just beginning to be realized for our business customers. We succeed as our clients succeed and have a joint interest in helping our customers realize both their business goals and community aspirations.”
LINKED-QUARTER BASIS
YEAR-OVER-YEAR
 
 
FINANCIAL HIGHLIGHTS:
▪
Net income and earnings per share of $100.9 million and $0.96 compared to $89.3 million and $0.85, respectively
▪
Net operating revenue of $226.9 million constituting growth of $3.7 million compared to an increase in operating non-interest expenses of $3.9 million1
▪
Operating pre-provision net revenue of $127.6 million down $0.2 million from $127.8 million1
▪
Effective tax rate of 17.10%, compared to 28.13% due to the effect of the Tax Cuts and Jobs Act ("TCJA") and the cyclical excess tax benefits on share-based payment awards
 
▪
Net income of $100.9 million and earnings per share of $0.96, compared to $73.3 million and $0.70, respectively
▪
Net operating revenue of $226.9 million, constituting year-over-year growth of 19.9%, or $37.7 million, compared to an increase in operating non-interest expenses of 12.5%, or $11.0 million1  
▪
Operating pre-provision net revenue of $127.6 million up $26.7 million from $100.9 million 1 
▪
Effective tax rate of 17.10%, compared to 25.03%, resulting in a decrease in income tax expense of $3.7 million as a result of TCJA

FINANCIAL POSITION RESULTS:
▪
Total loans of $15.56 billion, up $466 million, or 12.4% annualized
▪
Total deposits of $17.35 billion, up $382 million, or 9.0% annualized
▪
Stockholders' equity of $2.29 billion, up $64 million
 
▪
Increase in total loans of $1.90 billion, or 13.9%
▪
Increase in total deposits of $2.00 billion, or 13.0%
▪
Increase in stockholders' equity of $325 million
LOANS AND ASSET QUALITY:
▪
Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.33% compared to 0.36%
▪
Annualized net loan charge-offs to average loans outstanding of 0.04% for both periods
 
▪
Nonperforming assets to total assets of 0.33%, compared to 0.44%
▪
Annualized net loan charge-offs to average loans outstanding of 0.04% for both periods
KEY PERFORMANCE METRICS:
▪
Net interest margin of 4.60%, compared to 4.73%
▪
Return on average assets and return on tangible common equity1 of 1.99% and 20.46%, compared to 1.79% and 18.80%, respectively
▪
Tangible common equity ratio of 9.8%, compared to 9.6% 1 
▪
Tangible book value per share, net of tax, of $18.86, an increase from $18.31 1 
▪
Operating efficiency ratio of 42.7%, compared to 40.7% 1 
 
▪
Net interest margin of 4.60%, compared to 4.63%
▪
Return on average assets and return on tangible common equity1 of 1.99% and 20.46%, compared to 1.69% and 17.84%, respectively
▪
Tangible common equity ratio of 9.8%, compared to 9.4% 1 
▪
Tangible book value per share, net of tax, of $18.86 an increase of 18.9% from $15.86 1 
▪
Operating efficiency ratio of 42.7%, compared to 44.4% 1 

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

1


Income Statement
Net interest income was $214.2 million in the first quarter 2018, an increase of $3.2 million from $211.0 million in the fourth quarter 2017, and an increase of $34.9 million or 19.5%, compared to the first quarter 2017. Net interest income in the first quarter 2018 includes $5.7 million of total accretion income from acquired loans, compared to $7.1 million in the fourth quarter 2017, and $6.4 million in the first quarter 2017.
The Company’s net interest margin in the first quarter 2018 was 4.60%, a decrease from 4.73% in the fourth quarter 2017, and from 4.63% in the first quarter 2017. However, adjusting net interest margin to exclude the effects of the Tax Cuts and Jobs Act ("TCJA"), which reduced the tax equivalent adjustment from tax-exempt securities and loans, would result in net interest margin of 4.72% for the first quarter 2018.
Operating non-interest income was $12.7 million for the first quarter 2018, compared to $12.3 million for the fourth quarter 2017, and $10.0 million for the first quarter 2017.1 The increase in operating non-interest income for the first quarter 2018, compared to the same quarter in the prior year is a result of an increase in service charges and fees of $1.0 million and an increase of $0.8 million in warrant income.
Net operating revenue was $226.9 million for the first quarter 2018, an increase of $3.7 million, compared to $223.3 million for the fourth quarter 2017, and an increase of $37.7 million or 19.9%, compared to $189.3 million for the first quarter 2017.1  
Operating non-interest expense was $99.4 million for the first quarter 2018, compared to $95.4 million for the fourth quarter 2017, and $88.4 million for the first quarter 2017.1 The Company’s operating efficiency ratio1 on a tax equivalent basis was 42.7% for the first quarter 2018, compared to 40.7% for the fourth quarter 2017, and 44.4% for the first quarter 2017. The decrease in the tax equivalent adjustment was the primary driver of the change in the operating efficiency ratio from the fourth quarter 2017. Adjusting the operating efficiency ratio to exclude the effects of the lower statutory corporate federal tax rate would result in an operating efficiency ratio of 41.7% for the first quarter 2018.
Income tax expense was $20.8 million for the first quarter 2018, compared to $35.0 million for the fourth quarter 2017, and $24.5 million for the first quarter 2017. Income tax expense for the first quarter 2018 includes the effect of the TCJA, which lowered the statutory corporate tax rate from 35% to 21%, as well as the cyclical excess tax benefits on share-based payment awards.
Net income was $100.9 million for the first quarter 2018, an increase of $11.6 million from $89.3 million for the fourth quarter 2017, and an increase of $27.6 million or 37.6%, from $73.3 million for the first quarter 2017. Earnings per share was $0.96 for the first quarter 2018, compared to $0.85 for the fourth quarter 2017, and $0.70 for the first quarter 2017.
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 first quarter 2018, the Company’s operating PPNR was $127.6 million, down from $127.8 million in the fourth quarter 2017, and up 26.4% from $100.9 million in the first quarter 2017.1 The non-operating items1 for the first quarter 2018 consisted primarily of a net gain on sales and valuations of repossessed and other assets of $1.2 million, offset by net unrealized losses on assets measured at fair value of $1.1 million.
The Company had 1,713 full-time equivalent employees and 47 offices at March 31, 2018, compared to 1,725 employees and 47 offices at December 31, 2017, and 1,560 employees and 48 offices at March 31, 2017.


2


Balance Sheet
Gross loans totaled $15.56 billion at March 31, 2018, an increase of $466 million from $15.09 billion at December 31, 2017, and an increase of $1.90 billion from $13.66 billion at March 31, 2017. The increase from the prior quarter was driven by an increase of $325 million in construction and land development loans and $103 million in commercial and industrial loans. From March 31, 2017, loans increased across all loan types, with the largest increase in commercial and industrial loans of $905 million. At March 31, 2018, the allowance for credit losses to gross loans held for investment was 0.93%, compared to 0.93% at December 31, 2017, and 0.94% at March 31, 2017. At March 31, 2018, the allowance for credit losses to total organic loans was 1.02%, compared to 1.03% at December 31, 2017, and 1.08% at March 31, 2017. 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 $23.1 million at March 31, 2018, compared to $27.0 million at December 31, 2017, and $45.1 million at March 31, 2017.
Deposits totaled $17.35 billion at March 31, 2018, an increase of $382 million from $16.97 billion at December 31, 2017, and an increase of $2.00 billion from $15.36 billion at March 31, 2017. The increase from both the prior quarter and from March 31, 2017 is the result of organic deposit growth. Non-interest bearing deposits were $7.50 billion at March 31, 2018, compared to $7.43 billion at December 31, 2017, and $6.11 billion at March 31, 2017. Non-interest bearing deposits comprised 43.2% of total deposits at March 31, 2018, compared to 43.8% at December 31, 2017, and 39.8% at March 31, 2017. The proportion of savings and money market balances to total deposits was 36.4%, compared to 37.3% at December 31, 2017, and 40.7% at March 31, 2017. Certificates of deposit as a percentage of total deposits were 10.1% at March 31, 2018, compared to 9.6% at December 31, 2017, and 10.0% at March 31, 2017. The Company’s ratio of loans to deposits was 89.7% at March 31, 2018, compared to 88.9% at December 31, 2017, and 89.0% at March 31, 2017.
Borrowings totaled $300 million at March 31, 2018, a decrease of $90 million from $390 million at December 31, 2017, and an increase of $300 million from zero at March 31, 2017. The change in borrowings from both the prior quarter and the prior year is due to fluctuations in FHLB overnight advances.
Qualifying debt totaled $364 million at March 31, 2018, compared to $377 million at December 31, 2017, and $367 million at March 31, 2017.
Stockholders’ equity at March 31, 2018 was $2.29 billion, compared to $2.23 billion at December 31, 2017, and $1.97 billion at March 31, 2017.
At March 31, 2018, tangible common equity, net of tax, was 9.8% of tangible assets1 and total capital was 13.2% of risk-weighted assets. The Company’s tangible book value per share1 was $18.86 at March 31, 2018, up 18.9% from March 31, 2017.
Total assets increased 2.1% to $20.76 billion at March 31, 2018, from $20.33 billion at December 31, 2017, and increased 14.6% from $18.12 billion at March 31, 2017. 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 $6.0 million for the first quarter 2018, compared to $5.0 million for the fourth quarter 2017, and compared to $4.3 million for the first quarter 2017. Net loan charge-offs (recoveries) in the first quarter 2018 were $1.4 million, or 0.04% of average loans (annualized), consistent with $1.4 million, or 0.04%, in the fourth quarter 2017, and $1.3 million, or 0.04%, in the first quarter 2017.
Nonaccrual loans decreased $6.6 million to $37.3 million during the quarter and increased $2.8 million during past twelve months. Loans past due 90 days and still accruing interest totaled $37 thousand at March 31, 2018, compared to $43 thousand at December 31, 2017, and $3.7 million at March 31, 2017. Loans past due 30-89 days and still accruing interest totaled $6.5 million at quarter end, a decrease from $10.1 million at December 31, 2017, and a decrease from $10.8 million at March 31, 2017.
Repossessed assets totaled $30.2 million at March 31, 2018, an increase of $1.7 million from $28.5 million at December 31, 2017, and a decrease of $15.0 million from $45.2 million at March 31, 2017. Adversely graded loans and non-performing assets totaled $378.7 million at March 31, 2018, an increase of $23.6 million from $355.2 million at December 31, 2017, and a decrease of $9.5 million from $388.2 million at March 31, 2017.
As the Company’s 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 9.4% at March 31, 2018, compared to 10.3% at December 31, 2017, and 12.6% at March 31, 2017.1 





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 $8.58 billion at March 31, 2018, an increase of $199 million during the quarter, and an increase of $831 million during the last twelve months. The growth in loans during the quarter was primarily driven by increases of $149 million in Arizona and $79 million in Southern California. The loan growth during the quarter was partially offset by a decrease of $25 million in Nevada. The growth in loans during the last twelve months was primarily driven by increases of $433 million in Arizona, $207 million in Southern California, and $141 million in Northern California. Total deposits for the regional segments were $12.91 billion, a decrease of $29 million during the quarter, and an increase of $897 million during the last twelve months. During the quarter, Nevada and Southern California had decreases in deposits of $303 million and $37 million, respectively. These decreases were partially offset by increases of $179 million and $133 million in Arizona and Northern California, respectively. During the last twelve months, Arizona, Northern California, and Southern California had increased deposits of $766 million, $353 million, and $27 million, respectively. These increases were partially offset by a decrease in deposits of $248 million in Nevada.
Pre-tax income for the regional segments was $85.9 million for the three months ended March 31, 2018, an increase of $2.4 million from the three months ended December 31, 2017, and an increase of $13.4 million from the three months ended March 31, 2017. Nevada and Arizona had the largest increases in pre-tax income of $4.4 million and $0.8 million, respectively, compared to the three months ended December 31, 2017. These increases were partially offset by a decrease of $2.2 million in Northern California. Arizona, Nevada, and Southern California had increases in pre-tax income from the three months ended March 31, 2017 of $6.6 million, $5.9 million, and $1.3 million, respectively. These increases were partially offset by a decrease of $0.4 million in Northern California.
The NBL segments reported gross loan balances of $6.98 billion at March 31, 2018, an increase of $269 million during the quarter, and an increase of $1.07 billion during the last twelve months. The increase in loans for the NBL segments compared to the prior quarter relates primarily to the Other NBLs, Technology & Innovation, and HFF segments, which increased by $182 million, $71 million, $51 million, respectively. These increases were partially offset by a decrease of $41 million in the Public & Nonprofit Finance segment. During the last twelve months, each of the NBL segments have had increases in loans. The largest drivers of the increase were the Other NBLs, Technology & Innovation, and HFF segments, with increases of $770 million, $158 million, and $99 million, respectively. Total deposits for the NBL segments were $4.21 billion, an increase of $241 million during the quarter, and an increase of $954 million during the last twelve months. The HOA Services segment increased deposits during the quarter of $245 million, while the Technology & Innovation segment remained relatively unchanged. The increase of $954 million during the last twelve months is the result of growth in the Technology & Innovation and HOA Services of $591 million and $363 million, respectively.
Pre-tax income for the NBL segments was $46.7 million for the three months ended March 31, 2018, a decrease of $4.1 million from the three months ended December 31, 2017, and an increase of $9.2 million from the three months ended March 31, 2017. The decrease in pre-tax income from the prior quarter relates primarily to the Public & Nonprofit and Other NBLs segments, which decreased by $3.3 million and $2.1 million, respectively. These decreases were partially offset by an increase in pre-tax income from the Technology & Innovation segment of $0.8 million. The primary drivers of the increase in pre-tax income from the same period in the prior year were the Other NBLs, Technology & Innovation, and HOA Services segments. These segments had increases of $5.5 million, $3.4 million, and $2.0 million, respectively. These increases were partially offset by a decrease of $1.9 million in pre-tax income in the Public & Nonprofit segment.

4


Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2018 financial results at 12:00 p.m. ET on Friday, April 20, 2018. Participants may access the call by dialing 1-888-317-6003 and using passcode 1123074 or via live audio webcast using the website link https://services.choruscall.com/links/wal180420.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 April 20th through 9:00 a.m. ET May 20th by dialing 1-877-344-7529 passcode: 10118783.
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.
Adoption of Accounting Standards
During the first quarter 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities and ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.
The amendments in ASU 2014-09 create a common revenue standard and clarify the principles for recognizing revenue that can be applied consistently across various transactions, industries, and capital markets. Although this new accounting guidance brings considerable changes to how many companies account for revenue and disclose revenue-related information, the effect on the Company has not been significant as substantially all of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of this guidance. For the Company's revenue streams that are within the scope of this guidance, the guidance was adopted on January 1, 2018 using the modified retrospective method. Upon adoption, the Company's accounting policies did not change materially as the principles of revenue recognition in the ASU are largely consistent with current practices applied by the Company.
The amendments in ASU 2016-01 require that equity investments be measured at fair value with changes in fair value recognized in net income, rather than accumulated other comprehensive income. Upon adoption of the new accounting guidance, on January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.4 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings. During the three months ended March 31, 2018, the Company recognized a loss of $1.1 million related to fair value changes in equity securities.
The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings from tax effects resulting from the TCJA so that tax effects of items within other comprehensive income reflect the current tax rate. Previously, the effect of a change in tax laws or rates on deferred tax liabilities and assets were included in income from continuing operations even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in comprehensive income. Upon adoption of the new accounting guidance, on January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.6 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings.
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, 2017 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.

5


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 and is ranked #2 on the Forbes 2018 "Best Banks in America" list. 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.

6


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
Summary Consolidated Financial Data
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Data:
 
 
 
 
 
 
 
 
As of March 31,
 
 
2018
 
2017
 
Change %
 
 
(in millions)
 
 
Total assets
 
$
20,760.7

 
$
18,122.5

 
14.6
 %
Total loans, net of deferred fees
 
15,560.4

 
13,662.7

 
13.9

Securities and money market investments
 
3,734.3

 
2,869.1

 
30.2

Total deposits
 
17,354.5

 
15,356.0

 
13.0

Borrowings
 
300.0

 
—

 
NM

Qualifying debt
 
363.9

 
366.9

 
(0.8
)
Stockholders' equity
 
2,293.7

 
1,969.0

 
16.5

Tangible common equity, net of tax (1)
 
1,996.2

 
1,671.6

 
19.4

 
 
 
 
 
 
 
Selected Income Statement Data:
 
 
 
 
 
 
 
 
For the Three Months Ended March 31,
 
 
2018
 
2017
 
Change %
 
 
(in thousands, except per share data)
 
 
Interest income
 
$
234,697

 
$
192,265

 
22.1
 %
Interest expense
 
20,477

 
12,956

 
58.1

Net interest income
 
214,220

 
179,309

 
19.5

Provision for credit losses
 
6,000

 
4,250

 
41.2

Net interest income after provision for credit losses
 
208,220

 
175,059

 
18.9

Non-interest income
 
11,643

 
10,599

 
9.8

Non-interest expense
 
98,149

 
87,827

 
11.8

Income before income taxes
 
121,714

 
97,831

 
24.4

Income tax expense
 
20,814

 
24,489

 
(15.0
)
Net income
 
$
100,900

 
$
73,342

 
37.6

Diluted earnings per share
 
$
0.96

 
$
0.70

 
37.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

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


7


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
Summary Consolidated Financial Data
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common Share Data:
 
 
 
 
 
 
 
 
At or For the Three Months Ended March 31,
 
 
2018
 
2017
 
Change %
Diluted earnings per share
 
$
0.96

 
$
0.70

 
37.1
%
Book value per common share
 
21.67

 
18.68

 
16.0

Tangible book value per share, net of tax (1)
 
18.86

 
15.86

 
18.9

Average shares outstanding
(in thousands):
 
 
 
 
 
 
Basic
 
104,530

 
103,987

 
0.5

Diluted
 
105,324

 
104,836

 
0.5

Common shares outstanding
 
105,861

 
105,428

 
0.4

Selected Performance Ratios:
 
 
 
 
 
 
Return on average assets (2)
 
1.99
%
 
1.69
%
 
17.8
 %
Return on average tangible common equity (1, 2)
 
20.46

 
17.84

 
14.7

Net interest margin (2)
 
4.60

 
4.63

 
(0.6
)
Operating efficiency ratio - tax equivalent basis (1)
 
42.71

 
44.42

 
(3.8
)
Loan to deposit ratio
 
89.66

 
88.97

 
0.8

 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
Net charge-offs to average loans outstanding (2)
 
0.04
%
 
0.04
%
 
—
 %
Nonaccrual loans to gross loans
 
0.24

 
0.25

 
(4.0
)
Nonaccrual loans and repossessed assets to total assets
 
0.33

 
0.44

 
(25.0
)
Loans past due 90 days and still accruing to gross loans
 
0.00

 
0.03

 
NM

Allowance for credit losses to gross loans
 
0.93

 
0.94

 
(1.1
)
Allowance for credit losses to nonaccrual loans
 
387.86

 
370.45

 
4.7

Capital Ratios (1):
 
 
 
 
 
 
 
 
Mar 31, 2018
 
Dec 31, 2017
 
Mar 31, 2017
Tangible common equity (1)
 
9.8
%
 
9.6
%
 
9.4
%
Common Equity Tier 1 (1), (3)
 
10.5

 
10.4

 
10.0

Tier 1 Leverage ratio (1), (3)
 
10.5

 
10.3

 
10.2

Tier 1 Capital (1), (3)
 
10.9

 
10.8

 
10.5

Total Capital (1), (3)
 
13.2

 
13.3

 
13.1









(1)
See Reconciliation of Non-GAAP Financial Measures.
(2)
Annualized for the three month periods ended March 31, 2018 and 2017.
(3)
Capital ratios for March 31, 2018 are preliminary until the Call Report is filed.
NM
Changes +/- 100% are not meaningful.

8


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
Condensed Consolidated Income Statements
 
 
 
 
Unaudited
 
 
 
 
 
 
Three Months Ended March 31,
 
 
2018
 
2017
 
 
(dollars in thousands, except per share data)
Interest income:
 
 
 
 
Loans
 
$
205,959

 
$
172,553

Investment securities
 
26,621

 
18,114

Other
 
2,117

 
1,598

Total interest income
 
234,697

 
192,265

Interest expense:
 
 
 
 
Deposits
 
14,173

 
8,412

Qualifying debt
 
4,969

 
4,338

Borrowings
 
1,335

 
206

Total interest expense
 
20,477

 
12,956

Net interest income
 
214,220

 
179,309

Provision for credit losses
 
6,000

 
4,250

Net interest income after provision for credit losses
 
208,220

 
175,059

Non-interest income:
 
 
 
 
Service charges and fees
 
5,745

 
4,738

Income from equity investments
 
1,460

 
692

Card income
 
1,972

 
1,492

Income from bank owned life insurance
 
928

 
948

Foreign currency income
 
1,202

 
1,042

Lending related income and gains (losses) on sale of loans, net
 
978

 
422

Gain (loss) on sales of investment securities, net
 
—

 
635

Unrealized (losses) gains on assets measured at fair value, net
 
(1,074
)
 
(1
)
Other
 
432

 
631

Total non-interest income
 
11,643

 
10,599

Non-interest expenses:
 
 
 
 
Salaries and employee benefits
 
62,133

 
51,620

Occupancy
 
6,864

 
6,894

Legal, professional, and directors' fees
 
6,003

 
8,803

Data processing
 
5,207

 
5,264

Insurance
 
3,869

 
3,228

Deposit costs
 
2,926

 
1,741

Card expense
 
942

 
731

Marketing
 
596

 
721

Loan and repossessed asset expenses
 
583

 
1,278

Intangible amortization
 
398

 
689

Net (gain) loss on sales and valuations of repossessed and other assets
 
(1,228
)
 
(543
)
Other
 
9,856

 
7,401

Total non-interest expense
 
98,149

 
87,827

Income before income taxes
 
121,714

 
97,831

Income tax expense
 
20,814

 
24,489

Net income
 
$
100,900

 
$
73,342

 
 
 
 
 
Earnings per share:
 
 
 
 
Diluted shares
 
105,324

 
104,836

Diluted earnings per share
 
$
0.96

 
$
0.70





9


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
Five Quarter Condensed Consolidated Income Statements
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
 
(in thousands, except per share data)
Interest income:
 
 
 
 
 
 
 
 
 
 
Loans
 
$
205,959

 
$
200,204

 
$
191,096

 
$
183,657

 
$
172,553

Investment securities
 
26,621

 
26,312

 
23,584

 
20,629

 
18,114

Other
 
2,117

 
1,943

 
3,156

 
2,667

 
1,598

Total interest income
 
234,697

 
228,459

 
217,836

 
206,953

 
192,265

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
14,173

 
12,459

 
11,449

 
9,645

 
8,412

Qualifying debt
 
4,969

 
4,734

 
4,708

 
4,493

 
4,338

Borrowings
 
1,335

 
237

 
96

 
72

 
206

Total interest expense
 
20,477

 
17,430

 
16,253

 
14,210

 
12,956

Net interest income
 
214,220

 
211,029

 
201,583

 
192,743

 
179,309

Provision for credit losses
 
6,000

 
5,000

 
5,000

 
3,000

 
4,250

Net interest income after provision for credit losses
 
208,220

 
206,029

 
196,583

 
189,743

 
175,059

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
5,745

 
5,157

 
5,248

 
5,203

 
4,738

Income from equity investments
 
1,460

 
1,519

 
967

 
1,318

 
692

Card income
 
1,972

 
1,796

 
1,509

 
1,516

 
1,492

Income from bank owned life insurance
 
928

 
965

 
975

 
973

 
948

Foreign currency income
 
1,202

 
906

 
756

 
832

 
1,042

Lending related income and gains (losses) on sale of loans, net
 
978

 
1,466

 
97

 
227

 
422

Gain (loss) on sales of investment securities, net
 
—

 
1,436

 
319

 
(47
)
 
635

Unrealized (losses) gains on assets measured at fair value, net
 
(1,074
)
 
—

 
—

 
—

 
(1
)
Other
 
432

 
443

 
585

 
579

 
631

Total non-interest income
 
11,643

 
13,688

 
10,456

 
10,601

 
10,599

Non-interest expenses:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
62,133

 
57,704

 
52,747

 
52,273

 
51,620

Occupancy
 
6,864

 
6,532

 
7,507

 
6,927

 
6,894

Legal, professional, and directors' fees
 
6,003

 
6,490

 
6,038

 
8,483

 
8,803

Data processing
 
5,207

 
5,062

 
4,524

 
4,375

 
5,264

Insurance
 
3,869

 
3,687

 
3,538

 
3,589

 
3,228

Deposit costs
 
2,926

 
2,953

 
2,904

 
2,133

 
1,741

Card expense
 
942

 
855

 
966

 
861

 
731

Marketing
 
596

 
1,176

 
776

 
1,131

 
721

Loan and repossessed asset expenses
 
583

 
978

 
1,263

 
1,098

 
1,278

Intangible amortization
 
398

 
408

 
489

 
488

 
689

Net (gain) loss on sales and valuations of repossessed and other assets
 
(1,228
)
 
(34
)
 
266

 
231

 
(543
)
Other
 
9,856

 
9,587

 
8,278

 
6,831

 
7,401

Total non-interest expense
 
98,149

 
95,398

 
89,296

 
88,420

 
87,827

Income before income taxes
 
121,714

 
124,319

 
117,743

 
111,924

 
97,831

Income tax expense
 
20,814

 
34,973

 
34,899

 
31,964

 
24,489

Net income
 
$
100,900

 
$
89,346

 
$
82,844

 
$
79,960

 
$
73,342

 
 
 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
 
Diluted shares
 
105,324

 
105,164

 
104,942

 
105,045

 
104,836

Diluted earnings per share
 
$
0.96

 
$
0.85

 
$
0.79

 
$
0.76

 
$
0.70




10


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Five Quarter Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
 
(in millions, except per share data)
Assets:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
439.4

 
$
416.8

 
$
650.4

 
$
606.7

 
$
647.0

Securities and money market investments
 
3,734.3

 
3,820.4

 
3,773.6

 
3,283.0

 
2,869.1

Loans held for sale
 
—

 
—

 
16.3

 
16.7

 
17.8

Loans held for investment:
 
 
 
 
 
 
 
 
 
 
Commercial
 
6,944.4

 
6,841.4

 
6,735.9

 
6,318.5

 
6,039.1

Commercial real estate - non-owner occupied
 
3,925.3

 
3,904.0

 
3,628.4

 
3,649.1

 
3,607.8

Commercial real estate - owner occupied
 
2,264.6

 
2,241.6

 
2,047.5

 
2,021.2

 
2,043.4

Construction and land development
 
1,957.5

 
1,632.2

 
1,666.4

 
1,601.7

 
1,601.7

Residential real estate
 
418.1

 
425.9

 
376.7

 
334.8

 
309.9

Consumer
 
50.5

 
48.8

 
50.7

 
47.9

 
43.0

Gross loans and deferred fees, net
 
15,560.4

 
15,093.9


14,505.6

 
13,973.2

 
13,644.9

Allowance for credit losses
 
(144.7
)
 
(140.0
)
 
(136.4
)
 
(131.8
)
 
(127.6
)
Loans, net
 
15,415.7

 
14,953.9

 
14,369.2

 
13,841.4

 
13,517.3

Premises and equipment, net
 
116.7

 
118.7

 
120.1

 
120.5

 
120.0

Other assets acquired through foreclosure, net
 
30.2

 
28.5

 
29.0

 
31.0

 
45.2

Bank owned life insurance
 
168.6

 
167.8

 
166.8

 
166.4

 
165.5

Goodwill and other intangibles, net
 
300.4

 
300.7

 
301.2

 
301.6

 
302.1

Other assets
 
555.4

 
522.3

 
495.6

 
477.4

 
438.5

Total assets
 
$
20,760.7

 
$
20,329.1

 
$
19,922.2

 
$
18,844.7

 
$
18,122.5

Liabilities and Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
Non-interest bearing demand deposits
 
$
7,502.0

 
$
7,434.0

 
$
7,608.7

 
$
6,859.4

 
$
6,114.1

Interest bearing:
 
 
 
 
 
 
 
 
 
 
Demand
 
1,776.3

 
1,586.2

 
1,406.4

 
1,480.8

 
1,449.3

Savings and money market
 
6,314.9

 
6,330.9

 
6,300.2

 
6,104.0

 
6,253.8

Time certificates
 
1,761.3

 
1,621.4

 
1,589.5

 
1,586.9

 
1,538.8

Total deposits
 
17,354.5

 
16,972.5

 
16,904.8

 
16,031.1

 
15,356.0

Customer repurchase agreements
 
21.7

 
26.0

 
26.1

 
32.7

 
35.7

Total customer funds
 
17,376.2

 
16,998.5

 
16,930.9

 
16,063.8

 
15,391.7

Borrowings
 
300.0

 
390.0

 
—

 
—

 
—

Qualifying debt
 
363.9

 
376.9

 
372.9

 
375.4

 
366.9

Accrued interest payable and other liabilities
 
426.9

 
333.9

 
472.8

 
346.8

 
394.9

Total liabilities
 
18,467.0

 
18,099.3

 
17,776.6

 
16,786.0

 
16,153.5

Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
Common stock and additional paid-in capital
 
1,385.0

 
1,384.4

 
1,378.8

 
1,376.4

 
1,370.3

Retained earnings
 
950.4

 
848.5

 
758.6

 
675.8

 
595.8

Accumulated other comprehensive (loss) income
 
(41.7
)
 
(3.1
)
 
8.2

 
6.5

 
2.9

Total stockholders' equity
 
2,293.7

 
2,229.8

 
2,145.6

 
2,058.7

 
1,969.0

Total liabilities and stockholders' equity
 
$
20,760.7

 
$
20,329.1

 
$
19,922.2

 
$
18,844.7

 
$
18,122.5



11


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Changes in the Allowance For Credit Losses
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
Mar 31, 2017
 
 
(in thousands)
Balance, beginning of period
 
$
140,050

 
$
136,421

 
$
131,811

 
$
127,649

 
$
124,704

Provision for credit losses
 
6,000

 
5,000

 
5,000

 
3,000

 
4,250

Recoveries of loans previously charged-off:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
459

 
406

 
619

 
1,759

 
328

Commercial real estate - non-owner occupied
 
105

 
58

 
1,168

 
360

 
355

Commercial real estate - owner occupied
 
21

 
119

 
613

 
46

 
178

Construction and land development
 
1,388

 
218

 
226

 
508

 
277

Residential real estate
 
250

 
120

 
108

 
1,299

 
251

Consumer
 
10

 
3

 
33

 
—

 
49

Total recoveries
 
2,233

 
924

 
2,767

 
3,972

 
1,438

Loans charged-off:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
3,517

 
2,019

 
2,921

 
651

 
2,595

Commercial real estate - non-owner occupied
 
—

 
275

 
175

 
1,808

 
—

Commercial real estate - owner occupied
 
—

 
—

 
—

 
11

 
—

Construction and land development
 
—

 
—

 
—

 
—

 
—

Residential real estate
 
107

 
—

 
—

 
332

 
115

Consumer
 
—

 
1

 
61

 
8

 
33

Total loans charged-off
 
3,624

 
2,295

 
3,157

 
2,810

 
2,743

Net loan charge-offs (recoveries)
 
1,391

 
1,371

 
390

 
(1,162
)
 
1,305

Balance, end of period
 
$
144,659

 
$
140,050

 
$
136,421

 
$
131,811

 
$
127,649

 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans- annualized
 
0.04
%
 
0.04
%
 
0.01
%
 
(0.03
)%
 
0.04
%
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to gross loans
 
0.93
%
 
0.93
%
 
0.94
%
 
0.94
 %
 
0.94
%
Allowance for credit losses to gross organic loans
 
1.02

 
1.03

 
1.06

 
1.08

 
1.08

Allowance for credit losses to nonaccrual loans
 
387.86

 
318.84

 
248.07

 
438.33

 
370.45

 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans
 
$
37,297

 
$
43,925

 
$
54,994

 
$
30,071

 
$
34,458

Nonaccrual loans to gross loans
 
0.24
%
 
0.29
%
 
0.38
%
 
0.22
 %
 
0.25
%
Repossessed assets
 
$
30,194

 
$
28,540

 
$
28,992

 
$
30,988

 
$
45,200

Nonaccrual loans and repossessed assets to total assets
 
0.33
%
 
0.36
%
 
0.42
%
 
0.32
 %
 
0.44
%
 
 
 
 
 
 
 
 
 
 
 
Loans past due 90 days, still accruing
 
$
37

 
$
43

 
$
44

 
$
4,021

 
$
3,659

Loans past due 90 days and still accruing to gross loans
 
0.00
%
 
0.00
%
 
0.00
%
 
0.03
 %
 
0.03
%
Loans past due 30 to 89 days, still accruing
 
$
6,479

 
$
10,142

 
$
5,179

 
$
4,071

 
$
10,764

Loans past due 30 to 89 days, still accruing to gross loans
 
0.04
%
 
0.07
%
 
0.04
%
 
0.03
 %
 
0.08
%
 
 
 
 
 
 
 
 
 
 
 
Special mention loans
 
$
184,702

 
$
155,032

 
$
199,965

 
$
141,036

 
$
175,080

Special mention loans to gross loans
 
1.19
%
 
1.03
%
 
1.38
%
 
1.01
 %
 
1.28
%
 
 
 
 
 
 
 
 
 
 
 
Classified loans on accrual
 
$
126,538

 
$
127,681

 
$
122,264

 
$
165,715

 
$
133,483

Classified loans on accrual to gross loans
 
0.81
%
 
0.85
%
 
0.84
%
 
1.19
 %
 
0.98
%
Classified assets
 
$
213,482

 
$
222,004

 
$
221,803

 
$
249,491

 
$
236,786

Classified assets to total assets
 
1.03
%
 
1.09
%
 
1.11
%
 
1.32
 %
 
1.31
%


12


Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Analysis of Average Balances, Yields and Rates
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31, 2018
 
December 31, 2017
 
 
Average
Balance
 
Interest
 
Average Yield /
Cost
 
Average
Balance
 
Interest
 
Average Yield /
Cost
 
 
($ in millions)
 
($ in thousands)
 
 
 
($ in millions)
 
($ in thousands)
 
 
Interest earning assets
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
6,580.9

 
$
85,547

 
5.38
%
 
$
6,597.6

 
$
86,336

 
5.60
%
CRE - non-owner occupied
 
3,920.8

 
56,285

 
5.76

 
3,734.8

 
55,757

 
5.99

CRE - owner occupied
 
2,241.8

 
28,551

 
5.21

 
2,084.0

 
26,081

 
5.26

Construction and land development
 
1,789.4

 
29,619

 
6.63

 
1,661.6

 
26,463

 
6.38

Residential real estate
 
425.3

 
5,280

 
4.97

 
409.9

 
4,941

 
4.82

Consumer
 
47.9

 
677

 
5.65

 
48.6

 
626

 
5.15

Total loans (1), (2), (3)
 
15,006.1

 
205,959

 
5.59

 
14,536.5

 
200,204

 
5.72

Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Securities - taxable
 
2,875.3

 
19,149

 
2.66

 
2,975.0

 
19,350

 
2.60

Securities - tax-exempt
 
836.9

 
7,472

 
4.47

 
791.5

 
6,962

 
5.21

Total securities (1)
 
3,712.2

 
26,621

 
3.07

 
3,766.5

 
26,312

 
3.15

Cash and other
 
425.7

 
2,117

 
1.99

 
489.0

 
1,943

 
1.59

Total interest earning assets
 
19,144.0

 
234,697

 
5.02

 
18,792.0

 
228,459

 
5.10

Non-interest earning assets
 
 
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
142.3

 
 
 
 
 
135.0

 
 
 
 
Allowance for credit losses
 
(141.0
)
 
 
 
 
 
(138.4
)
 
 
 
 
Bank owned life insurance
 
168.1

 
 
 
 
 
167.1

 
 
 
 
Other assets
 
990.8

 
 
 
 
 
956.3

 
 
 
 
Total assets
 
$
20,304.2

 
 
 
 
 
$
19,912.0

 
 
 
 
Interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing transaction accounts
 
$
1,654.7

 
$
1,380

 
0.33
%
 
$
1,464.5

 
$
1,116

 
0.30
%
Savings and money market
 
6,226.7

 
8,915

 
0.57

 
6,321.4

 
7,810

 
0.49

Time certificates of deposit
 
1,579.9

 
3,878

 
0.98

 
1,595.6

 
3,533

 
0.89

Total interest-bearing deposits
 
9,461.3

 
14,173

 
0.60

 
9,381.5

 
12,459

 
0.53

Short-term borrowings
 
351.6

 
1,335

 
1.52

 
78.1

 
237

 
1.21

Qualifying debt
 
368.8

 
4,969

 
5.39

 
372.8

 
4,734

 
5.08

Total interest-bearing liabilities
 
10,181.7

 
20,477

 
0.80

 
9,832.4

 
17,430

 
0.71

Non-interest-bearing liabilities
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing demand deposits
 
7,510.6

 
 
 
 
 
7,502.2

 
 
 
 
Other liabilities
 
338.5

 
 
 
 
 
375.2

 
 
 
 
Stockholders’ equity
 
2,273.4

 
 
 
 
 
2,202.2

 
 
 
 
Total liabilities and stockholders' equity
 
$