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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):  July 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 July 19, 2018, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended June 30, 2018 and posted on its website its second 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 July 19, 2018.
99.2         Second Quarter 2018 Earnings Conference Call dated July 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:
July 19, 2018
 



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Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit
Western Alliance Bancorporation
 
394288821_wallogo06.jpg
One East Washington Street
 
Phoenix, AZ 85004
 
www.westernalliancebancorporation.com
 
 
 


PHOENIX--(BUSINESS WIRE)--July 19, 2018

SECOND QUARTER 2018 FINANCIAL RESULTS
Net income
 
Earnings per share
 
Net interest margin
 
Efficiency ratio
 
Book value per
common share
$104.7 million
 
$0.99
 
4.70%
 
42.1%
 
$22.59
CEO COMMENTARY:
“The success of our constructive partnership with customers – helping them succeed helps us succeed – led Western Alliance to another solid quarter of performance,” said Chief Executive Officer, Kenneth Vecchione.
“Deposit growth of $733 million paired with loan growth of $578 million, together drove net interest income to a new high and boosted the interest margin 10 basis points to 4.70 percent. Operating leverage improved as the $11.3 million increase in net operating revenue1 from the first quarter was more than triple the $3.3 million increase in operating expense1. Asset quality remained strong with net loan losses of only 0.07 percent of total loans during the quarter and non-performing assets of 0.29 percent of total assets. Net income of $104.7 million and earnings per share of $0.99 were each 30 percent higher than the year ago period. Return on assets exceeded 2 percent for the first time in company history and return on tangible equity1 was again above 20 percent. Tangible book value per share1 now stands at $19.78.”
LINKED-QUARTER BASIS
YEAR-OVER-YEAR
 
 
FINANCIAL HIGHLIGHTS:
Net income and earnings per share of $104.7 million and $0.99 compared to $100.9 million and $0.96, respectively
Net operating revenue of $238.2 million constituting growth of 5.0%, or $11.3 million, compared to an increase in operating non-interest expenses of 3.4%, or $3.4 million1
Operating pre-provision net revenue of $135.5 million, up $7.9 million from $127.6 million1
Effective tax rate of 19.48%, compared to 17.10%, due the cyclical excess tax benefits on share-based payment awards in Q1
 
Net income of $104.7 million and earnings per share of $0.99, compared to $80.0 million and $0.76, respectively
Net operating revenue of $238.2 million constituting year-over-year growth of 17.1%, or $34.8 million, compared to an increase in operating non-interest expenses of 16.5%, or $14.5 million1  
Operating pre-provision net revenue of $135.5 million, up $20.3 million from $115.2 million 1 
Effective tax rate of 19.48%, compared to 28.56%, due to the effect of the Tax Cuts and Jobs Act.

FINANCIAL POSITION RESULTS:
Total loans of $16.14 billion, up $578 million, or 14.3% annualized
Total deposits of $18.09 billion, up $733 million, or 16.9% annualized
Stockholders' equity of $2.39 billion, up $98 million
 
Increase in total loans of $2.15 billion, or 15.4%
Increase in total deposits of $2.06 billion, or 12.8%
Increase in stockholders' equity of $333 million
LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.29%, compared to 0.33%
Annualized net loan charge-offs to average loans outstanding of 0.07%, compared to 0.04%

 
Nonperforming assets to total assets of 0.29%, compared to 0.32%
Annualized net loan charge-offs (recoveries) to average loans outstanding of 0.07%, compared to (0.03)%
KEY PERFORMANCE METRICS:
Net interest margin of 4.70%, compared to 4.60%
Return on average assets and return on tangible common equity1 of 2.02% and 20.41%, compared to 1.99% and 20.46%, respectively
Tangible common equity ratio of 9.9%, compared to 9.8% 1 
Tangible book value per share, net of tax, of $19.78, an increase from $18.86 1 
Operating efficiency ratio of 42.1%, compared to 42.7% 1 
 
Net interest margin of 4.70%, compared to 4.61%
Return on average assets and return on tangible common equity1 of 2.02% and 20.41%, compared to 1.71% and 18.42%, respectively
Tangible common equity ratio of 9.9%, compared to 9.5% 1 
Tangible book value per share, net of tax, of $19.78, an increase of 18.4% from $16.71 1 
Operating efficiency ratio of 42.1%, compared to 41.2% 1 

1  
See reconciliation of Non-GAAP Financial Measures beginning on page 20.  

1



Income Statement
Net interest income was $224.1 million in the second quarter 2018, an increase of $9.9 million from $214.2 million in the first quarter 2018, and an increase of $31.4 million, or 16.3%, compared to the second quarter 2017. As acquired loans are recorded at fair value in an acquisition, purchase discounts on these acquired loans are recorded and accreted into interest income based on expected future cash flows or over the life of the loans and may be accelerated upon prepayment of acquired loans. Net interest income in the second quarter 2018 includes $5.1 million of total accretion income from acquired loans, compared to $5.7 million in the first quarter 2018, and $7.1 million in the second quarter 2017.
The Company’s net interest margin in the second quarter 2018 was 4.70%, an increase from 4.60% in the first quarter 2018, and from 4.61% in the second quarter 2017. Adjusting net interest margin to include the effects of the Tax Cuts and Jobs Act ("TCJA"), which reduced the tax equivalent adjustment from tax-exempt securities and loans, results in adjusted net interest margin1 of 4.49% for the second quarter 2017.
Operating non-interest income was $14.1 million for the second quarter 2018, compared to $12.7 million for the first quarter 2018, and $10.6 million for the second quarter 2017.1 The increase in operating non-interest income for the second quarter 2018 compared to the same quarter in the prior year is due primarily to increases in income from equity securities of $1.2 million, lending related income of $0.8 million, and card income of $0.5 million.
Net operating revenue was $238.2 million for the second quarter 2018, an increase of $11.3 million, compared to $226.9 million for the first quarter 2018, and an increase of $34.8 million, or 17.1%, compared to $203.4 million for the second quarter 2017.1  
Operating non-interest expense was $102.7 million for the second quarter 2018, compared to $99.4 million for the first quarter 2018, and $88.2 million for the second quarter 2017.1 The Company’s operating efficiency ratio1 on a tax equivalent basis was 42.1% for the second quarter 2018, compared to 42.7% for the first quarter 2018, and 41.2% for the second quarter 2017. Adjusting the operating efficiency ratio1 to include the effects of the lower statutory corporate federal tax rate would result in an operating efficiency ratio of 42.3% for the second quarter 2017.
Income tax expense was $25.3 million for the second quarter 2018, compared to $20.8 million for the first quarter 2018, and $32.0 million for the second quarter 2017. Income tax expense for the first and second quarters of 2018 includes the effect of the TCJA, which lowered the statutory corporate tax rate from 35% to 21%.
Net income was $104.7 million for the second quarter 2018, an increase of $3.8 million from $100.9 million for the first quarter 2018, and an increase of $24.7 million, or 30.9%, from $80.0 million for the second quarter 2017. Earnings per share was $0.99 for the second quarter 2018, compared to $0.96 for the first quarter 2018, and $0.76 for the second 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 second quarter 2018, the Company’s operating PPNR was $135.5 million, up from $127.6 million in the first quarter 2018, and up 17.6% from $115.2 million in the second quarter 2017.1 The non-operating items1 for the second quarter 2018 consisted of a net gain on sales and valuations of repossessed and other assets of $0.2 million, offset by net unrealized losses on assets measured at fair value of $0.7 million.
The Company had 1,773 full-time equivalent employees and 47 offices at June 30, 2018, compared to 1,713 employees and 47 offices at March 31, 2018, and 1,628 employees and 46 offices at June 30, 2017.















1 
See reconciliation of Non-GAAP Financial Measures beginning on page 20.

2



Balance Sheet
Gross loans totaled $16.14 billion at June 30, 2018, an increase of $578 million from $15.56 billion at March 31, 2018, and an increase of $2.15 billion from $13.99 billion at June 30, 2017. The increase from the prior quarter was driven by an increase of $334 million in commercial and industrial loans and $127 million in residential real estate loans. From June 30, 2017, loans increased across all loan types, with the largest increase in commercial and industrial loans of $957 million. At June 30, 2018, the allowance for credit losses to gross loans held for investment was 0.91%, compared to 0.93% at March 31, 2018, and 0.94% at June 30, 2017. At June 30, 2018, the allowance for credit losses to total organic loans was 0.99%, compared to 1.02% at March 31, 2018, and 1.08% at June 30, 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 $19.7 million at June 30, 2018, compared to $23.1 million at March 31, 2018, and $37.8 million at June 30, 2017.
Deposits totaled $18.09 billion at June 30, 2018, an increase of $733 million from $17.35 billion at March 31, 2018, and an increase of $2.06 billion from $16.03 billion at June 30, 2017. The increase from the prior quarter was driven by an increase of $446 million in non-interest bearing demand deposits and $154 million from savings and money market accounts. From June 30, 2017, deposits increased across all deposit types, with the largest increase in non-interest bearing demand deposits of $1.09 billion. Non-interest bearing deposits were $7.95 billion at June 30, 2018, compared to $7.50 billion at March 31, 2018, and $6.86 billion at June 30, 2017. Non-interest bearing deposits comprised 43.9% of total deposits at June 30, 2018, compared to 43.2% at March 31, 2018, and 42.8% at June 30, 2017. The proportion of savings and money market balances to total deposits was 35.8%, compared to 36.4% at March 31, 2018, and 38.1% at June 30, 2017. Certificates of deposit as a percentage of total deposits were 10.0% at June 30, 2018, compared to 10.1% at March 31, 2018, and 9.9% at June 30, 2017. The Company’s ratio of loans to deposits was 89.2% at June 30, 2018, compared to 89.7% at March 31, 2018, and 87.3% at June 30, 2017.
Borrowings totaled $75 million at June 30, 2018, a decrease of $225 million from $300 million at March 31, 2018, and an increase of $75 million from zero at June 30, 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 $361 million at June 30, 2018, compared to $364 million at March 31, 2018, and $375 million at June 30, 2017.
Stockholders’ equity at June 30, 2018 was $2.39 billion, compared to $2.29 billion at March 31, 2018, and $2.06 billion at June 30, 2017.
At June 30, 2018, tangible common equity, net of tax, was 9.9% of tangible assets1 and total capital was 13.4% of risk-weighted assets. The Company’s tangible book value per share1 was $19.78 at June 30, 2018, up 18.4% from June 30, 2017.
Total assets increased 2.9% to $21.37 billion at June 30, 2018, from $20.76 billion at March 31, 2018, and increased 13.4% from $18.84 billion at June 30, 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 $5.0 million for the second quarter 2018, compared to $6.0 million for the first quarter 2018, and compared to $3.0 million for the second quarter 2017. Net loan charge-offs (recoveries) in the second quarter 2018 were $2.6 million, or 0.07% of average loans (annualized), compared to $1.4 million, or 0.04%, in the first quarter 2018, and $(1.2) million, or (0.03)%, in the second quarter 2017.
Nonaccrual loans decreased $3.3 million to $34.0 million during the quarter and increased $3.9 million during past twelve months. Loans past due 90 days and still accruing interest totaled zero at June 30, 2018, compared to $37 thousand at March 31, 2018, and $4.0 million at June 30, 2017. Loans past due 30-89 days and still accruing interest totaled $1.5 million at quarter end, a decrease from $6.5 million at March 31, 2018, and a decrease from $4.1 million at June 30, 2017.
Repossessed assets totaled $27.5 million at June 30, 2018, a decrease of $2.7 million from $30.2 million at March 31, 2018, and a decrease of $3.5 million from $31.0 million at June 30, 2017. Adversely graded loans and non-performing assets totaled $368.5 million at June 30, 2018, a decrease of $10.2 million from $378.7 million at March 31, 2018, and an increase of $0.7 million from $367.8 million at June 30, 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 10.1% at June 30, 2018, compared to 9.4% at March 31, 2018, and 12.7% at June 30, 2017.1 






1
See reconciliation of Non-GAAP Financial Measures beginning on page 20.

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 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 $8.72 billion at June 30, 2018, an increase of $144 million during the quarter, and an increase of $891 million during the last twelve months. The growth in loans during the quarter was driven primarily by increases of $85 million in Arizona and $31 million in Nevada. The growth in loans during the last twelve months was driven by increases in all regional segments. The largest increases were $468 million in Arizona and $189 million in Southern California, followed by Nevada and Northern California with increases of $121 million and $113 million, respectively. Total deposits for the regional segments were $13.12 billion, an increase of $212 million during the quarter, and an increase of $616 million during the last twelve months. During the quarter, Arizona and Nevada had increases in deposits of $249 million and $114 million, respectively. These increases were partially offset by decreases of $121 million and $30 million in Southern California and Northern California, respectively. During the last twelve months, Arizona, Northern California, and Southern California had increased deposits of $491 million, $237 million, and $52 million, respectively. These increases were partially offset by a decrease in deposits of $163 million in Nevada.
Pre-tax income for the regional segments was $86.0 million for the three months ended June 30, 2018, an increase of $0.1 million from the three months ended March 31, 2018, and an increase of $1.3 million from the three months ended June 30, 2017. Arizona and Northern California had increases in pre-tax income of $4.3 million and $1.2 million, respectively, compared to the three months ended March 31, 2018. These increases were partially offset by a decrease of $5.4 million in Nevada. Arizona and Northern California had increases in pre-tax income from the three months ended June 30, 2017 of $5.1 million and $3.2 million, respectively. These increases were partially offset by decreases of $4.5 million and $2.6 million in Nevada and Southern California, respectively. For the six months ended June 30, 2018, the regional segments reported total pre-tax income of $171.8 million, an increase of $14.8 million compared to the six months ended June 30, 2017. Arizona, Northern California, and Nevada each had increases of $11.8 million, $2.9 million, and $1.4 million, respectively. These increases were partially offset by a decrease of $1.3 million in Southern California.
The NBL segments reported gross loan balances of $7.41 billion at June 30, 2018, an increase of $432 million during the quarter, and an increase of $1.26 billion during the last twelve months. There were increases in loans across all of the NBL segments compared to the prior quarter. The largest increases relate to the Other NBLs, HFF, and Technology & Innovation segments, which increased by $297 million, $53 million, and $37 million, respectively. During the last twelve months, each of the NBL segments have had increases in loans. The largest drivers of the increase were Other NBLs, HFF, and Technology & Innovation segments with increases of $849 million, $193 million, and $161 million, respectively. Total deposits for the NBL segments were $4.51 billion, an increase of $300 million during the quarter, and an increase of $1.05 billion during the last twelve months. The Technology & Innovation and HOA services segments each had increases of $260 million and $40 million, respectively. The increase of $1.05 billion during the last twelve months is the result of growth in the Technology & Innovation and HOA Services of $721 million and $328 million, respectively.
Pre-tax income for the NBL segments was $48.7 million for the three months ended June 30, 2018, an increase of $2.0 million from the three months ended March 31, 2018, and an increase of $6.1 million from the three months ended June 30, 2017. The increase in pre-tax income from the prior quarter relates primarily to the Technology & Innovation, HOA Services, and HFF segments, which increased by $1.6 million, $0.4 million, and $0.4 million, respectively. These increases were partially offset by a decrease in pre-tax income from the Other NBLs segment which had a decrease of $0.3 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, HFF, and HOA Services segments. These segments had increases of $2.8 million, $2.7 million, $2.6 million, and $1.6 million, respectively. These increases were partially offset by a decrease of $3.6 million in pre-tax income in the Public & Nonprofit segment. Pre-tax income for the NBL segments for the six months ended June 30, 2018 totaled $95.4 million, an increase of $15.3 million compared to the six months ended June 30, 2017. The largest increases in pre-tax income compared to the six months ended June 30, 2017 were in the Other NBLs, Technology & Innovation, HOA Services, and HFF segments. These segments had increases of $8.3 million, $6.2 million, $3.6 million, and $2.7 million, respectively. These increases were partially offset by a decrease of $5.5 million in the Public & Nonprofit segment.

4



Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2018 financial results at 12:00 p.m. ET on Friday, July 20, 2018. Participants may access the call by dialing 1-888-317-6003 and using passcode 5174586 or via live audio webcast using the website link https://services.choruscall.com/links/wal180720.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 July 20th through 9:00 a.m. ET August 20th by dialing 1-877-344-7529 passcode: 10121936.
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 six months ended June 30, 2018, the Company recognized a loss of $1.8 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, Member FDIC, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. A national presence with a regional footprint, Western Alliance Bank operates individually branded, full-service banking divisions with offices in key markets nationwide. For more information, visit westernalliancebank.com

6



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Summary Consolidated Financial Data
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
 
 
 
 
 
 
 
2018
 
2017
 
Change %
 
 
 
 
 
 
(in millions)
 
 
Total assets
 
 
 
 
 
 
 
$
21,367.5

 
$
18,844.7

 
13.4
 %
Gross loans, net of deferred fees
 
 
 
 
 
 
 
16,138.3

 
13,989.9

 
15.4

Securities and money market investments
 
 
 
 
 
 
 
3,688.7

 
3,283.0

 
12.4

Total deposits
 
 
 
 
 
 
 
18,087.5

 
16,031.1

 
12.8

Borrowings
 
 
 
 
 
 
 
75.0

 

 
NM

Qualifying debt
 
 
 
 
 
 
 
361.1

 
375.4

 
(3.8
)
Stockholders' equity
 
 
 
 
 
 
 
2,391.7

 
2,058.7

 
16.2

Tangible common equity, net of tax (1)
 
 
 
 
 
 
 
2,094.3

 
1,761.6

 
18.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Selected Income Statement Data:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
 
 
2018
 
2017
 
Change %
 
2018
 
2017
 
Change %
 
 
(in thousands, except per share data)
 
 
 
(in thousands, except per share data)
 
 
Interest income
 
$
251,602

 
$
206,953

 
21.6
 %
 
$
486,299

 
$
399,218

 
21.8
 %
Interest expense
 
27,494

 
14,210

 
93.5

 
47,971

 
27,166

 
76.6

Net interest income
 
224,108

 
192,743

 
16.3

 
438,328

 
372,052

 
17.8

Provision for credit losses
 
5,000

 
3,000

 
66.7

 
11,000

 
7,250

 
51.7

Net interest income after provision for credit losses
 
219,108

 
189,743

 
15.5

 
427,328

 
364,802

 
17.1

Non-interest income
 
13,444

 
10,601

 
26.8

 
25,087

 
21,200

 
18.3

Non-interest expense
 
102,548

 
88,420

 
16.0

 
200,697

 
176,247

 
13.9

Income before income taxes
 
130,004

 
111,924

 
16.2

 
251,718

 
209,755

 
20.0

Income tax expense
 
25,325

 
31,964

 
(20.8
)
 
46,139

 
56,453

 
(18.3
)
Net income
 
$
104,679

 
$
79,960

 
30.9

 
$
205,579

 
$
153,302

 
34.1

Diluted earnings per share
 
$
0.99

 
$
0.76

 
30.3

 
$
1.95

 
$
1.46

 
33.6


(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 June 30,
 
For the Six Months Ended June 30,
 
 
2018
 
2017
 
Change %
 
2018
 
2017
 
Change %
Diluted earnings per share
 
$
0.99

 
$
0.76

 
30.3
%
 
$
1.95

 
$
1.46

 
33.6
%
Book value per common share
 
22.59

 
19.53

 
15.7

 
 
 
 
 
 
Tangible book value per share, net of tax (1)
 
19.78

 
16.71

 
18.4

 
 
 
 
 
 
Average shares outstanding
(in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
104,691

 
104,162

 
0.5

 
104,611

 
104,075

 
0.5

Diluted
 
105,420

 
105,045

 
0.4

 
105,372

 
104,941

 
0.4

Common shares outstanding
 
105,876

 
105,429

 
0.4

 
 
 
 
 
 
Selected Performance Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Return on average assets (2)
 
2.02
%
 
1.71
 %
 
18.1
 %
 
2.00
%
 
1.70
%
 
17.6
 %
Return on average tangible common equity (1, 2)
 
20.41

 
18.42

 
10.8

 
20.43

 
18.14

 
12.6

Net interest margin (2)
 
4.70

 
4.61

 
2.0

 
4.65

 
4.62

 
0.6

Operating efficiency ratio - tax equivalent basis (1)
 
42.1

 
41.2

 
2.0

 
42.4

 
42.8

 
(0.9
)
Loan to deposit ratio
 
89.22

 
87.27

 
2.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans outstanding (2)
 
0.07
%
 
(0.03
)%
 
NM

 
0.05
%
 
0.00
%
 
NM

Nonaccrual loans to gross loans
 
0.21

 
0.22

 
(4.5
)
 
 
 
 
 
 
Nonaccrual loans and repossessed assets to total assets
 
0.29

 
0.32

 
(9.4
)
 
 
 
 
 
 
Loans past due 90 days and still accruing to gross loans
 

 
0.03

 
NM

 
 
 
 
 
 
Allowance for credit losses to gross loans
 
0.91

 
0.94

 
(3.2
)
 
 
 
 
 
 
Allowance for credit losses to nonaccrual loans
 
432.38

 
438.33

 
(1.4
)
 
 
 
 
 
 
Capital Ratios (1):
 
 
 
 
 
 
 
 
Jun 30, 2018
 
Mar 31, 2018
 
Jun 30, 2017
Tangible common equity (1)
 
9.9
%
 
9.8
%
 
9.5
%
Common Equity Tier 1 (1), (3)
 
10.7

 
10.5

 
10.3

Tier 1 Leverage ratio (1), (3)
 
10.8

 
10.5

 
9.9

Tier 1 Capital (1), (3)
 
11.1

 
10.9

 
10.8

Total Capital (1), (3)
 
13.4

 
13.2

 
13.4


(1)    See Reconciliation of Non-GAAP Financial Measures.
(2)    Annualized for the three and six months ended June 30, 2018 and 2017.
(3)    Capital ratios for June 30, 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 June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
 
 
(dollars in thousands, except per share data)
Interest income:
 
 
 
 
 
 
 
 
Loans
 
$
222,035

 
$
183,657

 
$
427,994

 
$
356,210

Investment securities
 
27,445

 
20,629

 
54,066

 
38,743

Other
 
2,122

 
2,667

 
4,239

 
4,265

Total interest income
 
251,602

 
206,953

 
486,299

 
399,218

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
19,849

 
9,645

 
34,022

 
18,057

Qualifying debt
 
5,695

 
4,493

 
10,664

 
8,831

Borrowings
 
1,950

 
72

 
3,285

 
278

Total interest expense
 
27,494

 
14,210

 
47,971

 
27,166

Net interest income
 
224,108

 
192,743

 
438,328

 
372,052

Provision for credit losses
 
5,000

 
3,000

 
11,000

 
7,250

Net interest income after provision for credit losses
 
219,108

 
189,743

 
427,328

 
364,802

Non-interest income:
 
 
 
 
 
 
 
 
Service charges and fees
 
5,672

 
5,203

 
11,417

 
9,941

Income from equity investments
 
2,517

 
1,318

 
3,977

 
2,010

Card income
 
2,033

 
1,516

 
4,005

 
3,008

Income from bank owned life insurance
 
1,167

 
973

 
2,095

 
1,921

Foreign currency income
 
1,181

 
832

 
2,383

 
1,874

Lending related income and gains (losses) on sale of loans, net
 
1,047

 
227

 
2,025

 
649

Gain (loss) on sales of investment securities, net
 

 
(47
)
 

 
588

Unrealized (losses) gains on assets measured at fair value, net
 
(685
)
 

 
(1,759
)
 
(1
)
Other
 
512

 
579

 
944

 
1,210

Total non-interest income
 
13,444

 
10,601

 
25,087

 
21,200

Non-interest expenses:
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
61,785

 
52,273

 
123,918

 
103,893

Legal, professional, and directors' fees
 
7,946

 
8,483

 
13,949

 
17,286

Occupancy
 
7,401

 
6,927

 
14,265

 
13,821

Data processing
 
5,586

 
4,375

 
10,793

 
9,639

Deposit costs
 
4,114

 
2,133

 
7,040

 
3,874

Insurance
 
3,885

 
3,589

 
7,754

 
6,817

Business development
 
1,414

 
1,447

 
3,142

 
3,510

Marketing
 
1,146

 
1,131

 
1,742

 
1,852

Card expense
 
1,081

 
861

 
2,023

 
1,592

Loan and repossessed asset expenses
 
1,017

 
1,098

 
1,600

 
2,376

Intangible amortization
 
399

 
488

 
797

 
1,177

Net (gain) loss on sales and valuations of repossessed and other assets
 
(179
)
 
231

 
(1,407
)
 
(312
)
Other
 
6,953

 
5,384

 
15,081

 
10,722

Total non-interest expense
 
102,548

 
88,420

 
200,697

 
176,247

Income before income taxes
 
130,004

 
111,924

 
251,718

 
209,755

Income tax expense
 
25,325

 
31,964

 
46,139

 
56,453

Net income
 
$
104,679

 
$
79,960

 
$
205,579

 
$
153,302

 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
Diluted shares
 
105,420

 
105,045

 
105,372

 
104,941

Diluted earnings per share
 
$
0.99

 
$
0.76

 
$
1.95

 
$
1.46





9



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
Five Quarter Condensed Consolidated Income Statements
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
 
(in thousands, except per share data)
Interest income:
 
 
 
 
 
 
 
 
 
 
Loans
 
$
222,035

 
$
205,959

 
$
200,204

 
$
191,096

 
$
183,657

Investment securities
 
27,445

 
26,621

 
26,312

 
23,584

 
20,629

Other
 
2,122

 
2,117

 
1,943

 
3,156

 
2,667

Total interest income
 
251,602

 
234,697

 
228,459

 
217,836

 
206,953

Interest expense:
 
 
 
 
 
 
 
 
 
 
Deposits
 
19,849

 
14,173

 
12,459

 
11,449

 
9,645

Qualifying debt
 
5,695

 
4,969

 
4,734

 
4,708

 
4,493

Borrowings
 
1,950

 
1,335

 
237

 
96

 
72

Total interest expense
 
27,494

 
20,477

 
17,430

 
16,253

 
14,210

Net interest income
 
224,108

 
214,220

 
211,029

 
201,583

 
192,743

Provision for credit losses
 
5,000

 
6,000

 
5,000

 
5,000

 
3,000

Net interest income after provision for credit losses
 
219,108

 
208,220

 
206,029

 
196,583

 
189,743

Non-interest income:
 
 
 
 
 
 
 
 
 
 
Service charges and fees
 
5,672

 
5,745

 
5,157

 
5,248

 
5,203

Income from equity investments
 
2,517

 
1,460

 
1,519

 
967

 
1,318

Card income
 
2,033

 
1,972

 
1,796

 
1,509

 
1,516

Income from bank owned life insurance
 
1,167

 
928

 
965

 
975

 
973

Foreign currency income
 
1,181

 
1,202

 
906

 
756

 
832

Lending related income and gains (losses) on sale of loans, net
 
1,047

 
978

 
1,466

 
97

 
227

Gain (loss) on sales of investment securities, net
 

 

 
1,436

 
319

 
(47
)
Unrealized (losses) gains on assets measured at fair value, net
 
(685
)
 
(1,074
)
 

 

 

Other
 
512

 
432

 
443

 
585

 
579

Total non-interest income
 
13,444

 
11,643

 
13,688

 
10,456

 
10,601

Non-interest expenses:
 
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
 
61,785

 
62,133

 
57,704

 
52,747

 
52,273

Legal, professional, and directors' fees
 
7,946

 
6,003

 
6,490

 
6,038

 
8,483

Occupancy
 
7,401

 
6,864

 
6,532

 
7,507

 
6,927

Data processing
 
5,586

 
5,207

 
5,062

 
4,524

 
4,375

Deposit costs
 
4,114

 
2,926

 
2,953

 
2,904

 
2,133

Insurance
 
3,885

 
3,869

 
3,687

 
3,538

 
3,589

Business development
 
1,414

 
1,728

 
1,179

 
1,439

 
1,447

Marketing
 
1,146

 
596

 
1,176

 
776

 
1,131

Card expense
 
1,081

 
942

 
855

 
966

 
861

Loan and repossessed asset expenses
 
1,017

 
583

 
978

 
1,263

 
1,098

Intangible amortization
 
399

 
398

 
408

 
489

 
488

Net (gain) loss on sales and valuations of repossessed and other assets
 
(179
)
 
(1,228
)
 
(34
)
 
266

 
231

Other
 
6,953

 
8,128

 
8,408

 
6,839

 
5,384

Total non-interest expense
 
102,548

 
98,149

 
95,398

 
89,296

 
88,420

Income before income taxes
 
130,004

 
121,714

 
124,319

 
117,743

 
111,924

Income tax expense
 
25,325

 
20,814

 
34,973

 
34,899

 
31,964

Net income
 
$
104,679

 
$
100,900

 
$
89,346

 
$
82,844

 
$
79,960

 
 
 
 
 
 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
 
 
 
 
 
Diluted shares
 
105,420

 
105,324

 
105,164

 
104,942

 
105,045

Diluted earnings per share
 
$
0.99

 
$
0.96

 
$
0.85

 
$
0.79

 
$
0.76



10




Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Five Quarter Condensed Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
 
(in millions, except per share data)
Assets:
 
 
 
 
 
 
 
 
 
 
Cash and due from banks
 
$
506.8

 
$
439.4

 
$
416.8

 
$
650.4

 
$
606.7

Securities and money market investments
 
3,688.7

 
3,734.3

 
3,820.4

 
3,773.6

 
3,283.0

Loans held for sale
 

 

 

 
16.3

 
16.7

Loans held for investment:
 
 
 
 
 
 
 
 
 
 
Commercial
 
7,278.4

 
6,944.4

 
6,841.4

 
6,735.9

 
6,318.5

Commercial real estate - non-owner occupied
 
4,010.6

 
3,925.3

 
3,904.0

 
3,628.4

 
3,649.1

Commercial real estate - owner occupied
 
2,270.5

 
2,264.6

 
2,241.6

 
2,047.5

 
2,021.2

Construction and land development
 
1,978.3

 
1,957.5

 
1,632.2

 
1,666.4

 
1,601.7

Residential real estate
 
545.3

 
418.1

 
425.9

 
376.7

 
334.8

Consumer
 
55.2

 
50.5

 
48.8

 
50.7

 
47.9

Gross loans, net of deferred fees
 
16,138.3

 
15,560.4


15,093.9

 
14,505.6

 
13,973.2

Allowance for credit losses
 
(147.1
)
 
(144.7
)
 
(140.0
)
 
(136.4
)
 
(131.8
)
Loans, net
 
15,991.2

 
15,415.7

 
14,953.9

 
14,369.2

 
13,841.4

Premises and equipment, net
 
115.4

 
116.7

 
118.7

 
120.1

 
120.5

Other assets acquired through foreclosure, net
 
27.5

 
30.2

 
28.5

 
29.0

 
31.0

Bank owned life insurance
 
168.7

 
168.6

 
167.8

 
166.8

 
166.4

Goodwill and other intangibles, net
 
300.0

 
300.4

 
300.7

 
301.2

 
301.6

Other assets
 
569.2

 
555.4

 
522.3

 
495.6

 
477.4

Total assets
 
$
21,367.5

 
$
20,760.7

 
$
20,329.1

 
$
19,922.2

 
$
18,844.7

Liabilities and Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
Deposits
 
 
 
 
 
 
 
 
 
 
Non-interest bearing demand deposits
 
$
7,947.9

 
$
7,502.0

 
$
7,434.0

 
$
7,608.7

 
$
6,859.4

Interest bearing:
 
 
 
 
 
 
 
 
 
 
Demand
 
1,864.6

 
1,776.3

 
1,586.2

 
1,406.4

 
1,480.8

Savings and money market
 
6,468.8

 
6,314.9

 
6,330.9

 
6,300.2

 
6,104.0

Time certificates
 
1,806.2

 
1,761.3

 
1,621.4

 
1,589.5

 
1,586.9

Total deposits
 
18,087.5

 
17,354.5

 
16,972.5

 
16,904.8

 
16,031.1

Customer repurchase agreements
 
18.0

 
21.7

 
26.0

 
26.1

 
32.7

Total customer funds
 
18,105.5

 
17,376.2

 
16,998.5

 
16,930.9

 
16,063.8

Borrowings
 
75.0

 
300.0

 
390.0

 

 

Qualifying debt
 
361.1

 
363.9

 
376.9

 
372.9

 
375.4

Accrued interest payable and other liabilities
 
434.2

 
426.9

 
333.9

 
472.8

 
346.8

Total liabilities
 
18,975.8

 
18,467.0

 
18,099.3

 
17,776.6

 
16,786.0

Stockholders' Equity:
 
 
 
 
 
 
 
 
 
 
Common stock and additional paid-in capital
 
1,387.9

 
1,385.0

 
1,384.4

 
1,378.8

 
1,376.4

Retained earnings
 
1,055.1

 
950.4

 
848.5

 
758.6

 
675.8

Accumulated other comprehensive (loss) income
 
(51.3
)
 
(41.7
)
 
(3.1
)
 
8.2

 
6.5

Total stockholders' equity
 
2,391.7

 
2,293.7

 
2,229.8

 
2,145.6

 
2,058.7

Total liabilities and stockholders' equity
 
$
21,367.5

 
$
20,760.7

 
$
20,329.1

 
$
19,922.2

 
$
18,844.7



11



Western Alliance Bancorporation and Subsidiaries
 
 
 
 
 
 
 
 
 
 
Changes in the Allowance For Credit Losses
 
 
 
 
 
 
 
 
 
 
Unaudited
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Jun 30, 2018
 
Mar 31, 2018
 
Dec 31, 2017
 
Sep 30, 2017
 
Jun 30, 2017
 
 
(in thousands)
Balance, beginning of period
 
$
144,659

 
$
140,050

 
$
136,421

 
$
131,811

 
$
127,649

Provision for credit losses
 
5,000

 
6,000

 
5,000

 
5,000

 
3,000

Recoveries of loans previously charged-off:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
916

 
459

 
406

 
619

 
1,759

Commercial real estate - non-owner occupied
 
15

 
105

 
58

 
1,168

 
360

Commercial real estate - owner occupied
 
231

 
21

 
119

 
613

 
46

Construction and land development
 
8

 
1,388

 
218

 
226

 
508

Residential real estate
 
141

 
250

 
120

 
108

 
1,299

Consumer
 
14

 
10

 
3

 
33

 

Total recoveries
 
1,325

 
2,233

 
924

 
2,767

 
3,972

Loans charged-off:
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
2,778

 
3,517

 
2,019

 
2,921

 
651

Commercial real estate - non-owner occupied
 
232

 

 
275

 
175

 
1,808

Commercial real estate - owner occupied
 

 

 

 

 
11

Construction and land development
 
1

 

 

 

 

Residential real estate
 
885

 
107

 

 

 
332

Consumer
 
5

 

 
1

 
61

 
8

Total loans charged-off
 
3,901

 
3,624

 
2,295

 
3,157

 
2,810

Net loan charge-offs (recoveries)
 
2,576

 
1,391

 
1,371

 
390

 
(1,162
)
Balance, end of period
 
$
147,083

 
$
144,659

 
$
140,050

 
$
136,421

 
$
131,811

 
 
 
 
 
 
 
 
 
 
 
Net charge-offs (recoveries) to average loans- annualized
 
0.07
%
 
0.04
%
 
0.04
%
 
0.01
%
 
(0.03
)%
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses to gross loans
 
0.91
%
 
0.93
%
 
0.93
%
 
0.94
%
 
0.94
 %
Allowance for credit losses to gross organic loans
 
0.99

 
1.02

 
1.03

 
1.06

 
1.08

Allowance for credit losses to nonaccrual loans
 
432.38

 
387.86

 
318.84

 
248.07

 
438.33

 
 
 
 
 
 
 
 
 
 
 
Nonaccrual loans
 
$
34,017

 
$
37,297

 
$
43,925

 
$
54,994

 
$
30,071

Nonaccrual loans to gross loans
 
0.21
%
 
0.24
%
 
0.29
%
 
0.38
%
 
0.22
 %
Repossessed assets
 
$
27,541

 
$
30,194

 
$
28,540

 
$
28,973

 
$
30,988

Nonaccrual loans and repossessed assets to total assets
 
0.29
%
 
0.33
%
 
0.36
%
 
0.42
%
 
0.32
 %
 
 
 
 
 
 
 
 
 
 
 
Loans past due 90 days, still accruing
 
$

 
$
37

 
$
43

 
$
44

 
$
4,021

Loans past due 90 days and still accruing to gross loans
 
%
 
0.00
%
 
0.00
%
 
0.00
%
 
0.03
 %
Loans past due 30 to 89 days, still accruing
 
$
1,545

 
$
6,479

 
$
10,142

 
$
5,179

 
$
4,071

Loans past due 30 to 89 days, still accruing to gross loans
 
0.01
%
 
0.04
%
 
0.07
%
 
0.04
%
 
0.03
 %
 
 
 
 
 
 
 
 
 
 
 
Special mention loans
 
$
150,278

 
$
184,702

 
$
155,032

 
$
199,965

 
$
141,036

Special mention loans to gross loans
 
0.93
%
 
1.19
%
 
1.03
%
 
1.38
%
 
1.01
 %
 
 
 
 
 
 
 
 
 
 
 
Classified loans on accrual
 
$
156,659

 
$
126,538

 
$
127,681

 
$
122,264

 
$
165,715

Classified loans on accrual to gross loans
 
0.97
%
 
0.81
%
 
0.85
%
 
0.84
%
 
1.19
 %
Classified assets
 
$
240,063

 
$
213,482

 
$
222,004

 
$
221,803

 
$
249,491

Classified assets to total assets
 
1.12
%
 
1.03
%
 
1.09
%
 
1.11
%
 
1.32
 %


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