• Loan Growth of $115 million, Deposit Growth of $45 million
• Stockholders’ Equity Growth $17 million
• TARP Repaid, SBLF Participant

PHOENIX -- (Business Wire)

Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the third quarter 2011.

Third Quarter 2011 Highlights:

• Net income of $13.0 million, including after tax unrealized gains from assets/liabilities measured at fair value of $4.2 million
• Net income of $0.04 per common share, including a one-time charge of $0.09 per common share from accelerated preferred stock accretion from TARP repayment and $0.05 unrealized gain from assets measured at fair value
• Pre-tax, pre-provision operating earnings of $28.1 million, up 1.8% from $27.6 million in second quarter 2011 and up 14.2% from $24.6 million in third quarter 2010¹
• Net interest margin of 4.29% compared to 4.34% in the second quarter 2011 and 4.32% in the third quarter 2010
• Total loans of $4.53 billion, up $115 million from June 30, 2011 and up $353 million from September 30, 2010
• Total deposits of $5.63 billion, up $45 million from June 30, 2011 and up $304 million from September 30, 2010
• Nonperforming assets (nonaccrual loans and repossessed assets) remained at 3.1% of total assets compared to second quarter 2011 and declined from 3.9% in third quarter 2010
• Net loan charge-offs of $15.3 million, up from $13.6 million for the second quarter 2011 and down from $24.8 million in third quarter 2010
• Tier I Leverage capital of 9.7% and Total Risk-Based Capital ratio of 13.1%, compared to 10.0% and 13.7% a year ago
• Total equity of $632.3 million, up $16.6 million from June 30, 2011 and up $12.5 million from September 30, 2010
• Receipt of $141 million from participation in the U.S. Department of Treasury’s Small Business Lending Fund (SBLF)
• Repayment of $140 million Troubled Asset Relief Program (TARP), which resulted in additional $6.9 million charge to net income available to common shareholders

Financial Performance

“We are pleased to announce another quarter of strong growth in loans and deposits, increasing pre-tax pre-credit earnings, stable net interest margin, and improving asset quality,” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. “Also, as announced on September 27, 2011, we are excited to participate in the SBLF Program. As one of the largest lenders to small businesses in our markets, this Program will facilitate our ability to continue to service the credit needs of this important segment.”

Ken Vecchione, President and Chief Operating Officer, added, “We continue to focus on creating shareholder value by increasing our earning power as our pre-tax pre-credit income rose for the ninth consecutive quarter, thus contributing to our strong capital position. This increase was driven by growth in market share of both loans and deposits, while maintaining a stable expense base since 2009.”

Western Alliance Bancorporation reported net income of $13.0 million in the third quarter 2011. Income from continuing operations before income tax was $21.1 million, including pre-tax net unrealized gains from assets/liabilities measured at fair value of $6.4 million.

The Company reported net income per common share of $0.04 in the third quarter 2011. The income included a one-time $0.09 charge from accelerated preferred stock accretion as a result of TARP repayment and $0.05 net unrealized gains from assets/liabilities measured at fair value after tax.

Total loans increased $115 million to $4.53 billion at September 30, 2011 from $4.41 billion on June 30, 2011. This increase was driven by growth in commercial and industrial loans and commercial leases. Loans increased $353 million, or 8.5 percent from September 30, 2010.

Total deposits increased $45 million to $5.63 billion at September 30, 2011 from $5.59 billion at June 30, 2011, with growth primarily in savings, money market and interest bearing demand deposits, partially offset by a decline in certificates of deposit. Deposits increased $304 million, or 5.7 percent from September 30, 2010.

Income Statement

Net interest income of $64.6 million in the third quarter 2011 increased by 2.1 percent compared to the second quarter 2011 and 8.6 percent compared to the third quarter 2010. The net interest margin in the third quarter 2011 was 4.29 percent compared to 4.34 percent in the second quarter 2011 and 4.32 percent in the third quarter of 2010.

Operating non-interest income was $5.9 million for the third quarter 2011.¹ This performance was a decrease from $6.8 million for the second quarter of 2011 and $6.3 million for the third quarter of 2010.¹

Net revenue was $70.5 million for the third quarter 2011, a one percent increase from $70.1 million for the second quarter of 2011 and 7.1 percent from $65.8 million for the third quarter 2010.¹

Other non-interest income included a $6.4 million unrealized gain from the write-down of the Company’s liabilities due to credit spreads widening and a net gain on investment securities sales of $0.8 million.

Operating non-interest expenses have been relatively flat at $42.4 million for the third quarter 2011, compared to $42.5 million for the second quarter of 2011 and $41.3 million for the third quarter of 2010.¹ The Company’s operating efficiency ratio was 59.6 percent for the third quarter 2011, improved from 62.4 percent for the third quarter 2010.¹ The Company had 911 full-time equivalent employees at September 30, 2011, compared to 907 one year ago.

A key performance metric for the Company is its pre-tax, pre-provision operating earnings, which it defines as net operating revenue less its operating non-interest expense.¹ For the second quarter 2011, the Company’s performance was $28.1 million, up from $27.6 million in the second quarter 2011 and $24.6 million in the third quarter 2010.¹

The provision for credit losses was $11.2 million for the third quarter 2011 compared to $11.9 million for the second quarter 2011. The provision for the third quarter of 2010 was $23.0 million. Net loan charge-offs in the third quarter 2011 were $15.3 million or 1.40 percent of average loans (annualized), up from $13.6 million or 1.26 percent of average loans (annualized) for the second quarter 2011 due to increased residential real estate loan charge-offs. Net charge-offs for the third quarter 2010 were $24.8 million or 2.41% of average loans (annualized).

Nonaccrual loans and repossessed assets remained flat at $200.4 million or 3.1 percent of total assets at September 30, 2011, compared to the second quarter 2011 and decreased from $241 million or 3.9 percent of total assets at September 30, 2010. Loans past due 90 days and still accruing totaled $2.1 million at September 30, 2011, up from $1.1 million at June 30, 2011 and down from $5.7 million at September 30, 2010. Loans past due 30-89 days totaled $12.4 million at quarter end, up slightly from $11.6 million at June 30, 2011 and down from $20.4 million at September 30, 2010.

Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 42 percent at September 30, 2011 from 57 percent at September 30, 2010.¹

Net loss on sales and valuation of repossessed assets (primarily other real estate) was $2.1 million for the third quarter 2011 compared to $8.6 million in the prior quarter. At September 30, 2011, other repossessed assets were valued at $87 million compared to $86 million at June 30, 2011 and $110 million one year ago.

Balance Sheet

Gross loans totaled $4.53 billion at September 30, 2011, an increase of $115 million from June 30, 2011 and an increase of $353 million from $4.17 billion at September 30, 2010. At September 30, 2011 the allowance for credit losses was 2.21 percent of total loans down from 2.37 percent at June 30, 2011 and 2.59 percent at September 30, 2010.

Deposits totaled $5.63 billion at September 30, 2011, an increase of $45 million from $5.59 billion at June 30, 2011 and an increase of $304 million from $5.33 billion at September 30, 2010.

Non-interest bearing deposits increased slightly at September 30, 2011 from June 30, 2011 and increased $97.3 million from $1.42 billion at September 30, 2010. Non-interest bearing deposits comprised 27.0 percent of total deposits at September 30, 2011, compared to 26.7 percent a year ago.

At September 30, 2011, the Company’s loans were 80.4 percent of deposits compared to 79.0 percent at June 30, 2011 and 78.3 percent at September 30, 2010.

Stockholders’ equity at September 30, 2011 increased to $632.3 million from $615.7 million at June 30, 2011. At September 30, 2011, tangible common equity was 7.0 percent of tangible assets¹ and total risk-based capital was 13.1 percent of risk-weighted assets.

Total assets increased one percent to $6.55 billion at September 30, 2011 from $6.51 billion at June 30, 2011 and increased 6.0 percent from $6.18 billion at September 30, 2010.

Operating Unit Highlights

Bank of Nevada reported that loans declined slightly during the third quarter of 2011 and declined $88 million during the last 12 months to $1.85 billion at September 30, 2011. Deposits increased $17 million in the third quarter of 2011 and increased $59 million over the last twelve months to $2.47 billion. Net income for Bank of Nevada was $1.7 million for the third quarter 2011, compared with net income of $3.7 million for the second quarter of 2011 and net loss of $6.9 million during the third quarter 2010.

Western Alliance Bank reported loan growth of $56 million during the third quarter 2011 and $218 million during the last 12 months to $1.48 billion. Deposits increased $8 million in the third quarter and increased $38 million during the last 12 months to $1.77 billion. Net income for Western Alliance Bank was $5.5 million during the third quarter 2011 compared with net income of $3.8 million during the second quarter of 2011 and a net income of $4.3 million during the third quarter 2010.

The Torrey Pines Bank segment, which excludes discontinued operations, reported that loans increased $62 million during the third quarter 2011 and increased $223 million during the last 12 months to $1.23 billion. Deposits increased $18 million in the third quarter 2011 and $168 million over the last 12 months to $1.40 billion. Net income for Torrey Pines Bank was $5.4 million during the third quarter 2011 compared with net income of $4.2 million for the second quarter of 2011 and net income of $4.0 million during the third quarter 2010.

Attached to this press release is summarized financial information for the quarter ended September 30, 2011.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2011 financial results at 12:00 p.m. ET on Tuesday, October 18, 2011.

Participants may access the call by dialing 1-866-843-0890 and using passcode: 4530713 or via live audio webcast using the website link: https://services.choruscall.com/links/wal111018.html. The webcast is also available via our website at www.westernalliancebancorp.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 October 18 until 9 a.m. ET October 26th by dialing 1-877-344-7529 using the pass code 10005379.

About Western Alliance Bancorporation

Western Alliance Bancorporation is the parent company of Bank of Nevada, Western Alliance Bank doing business as Alliance Bank of Arizona and First Independent Bank, Torrey Pines Bank, and Shine Investment Advisory Services. These dynamic organizations provide a broad array of deposit and credit services to clients in Nevada, Arizona and California, and investment services in Colorado. Staffed with experienced financial professionals, these organizations deliver a broader product array and larger credit capacity than community banks, yet are empowered to be more responsive to customers' needs than larger institutions. Additional investor information can be accessed on the Investor Relations page of the company's website, www.westernalliancebancorp.com.

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. 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: factors listed in the Form 10-K 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; 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.

We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements set forth in this press release to reflect new information, future events or otherwise.

This press release contains both financial measures based on accounting principles generally accepted in the United States (“GAAP”) and non-GAAP based financial measures, which are used where management believes it to be helpful in understanding Western Alliance Bancorporation’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconcilement 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.

¹ See Reconciliation of Non-GAAP Financial Measures beginning on page 16