• Loan Growth of $146 million
• Deposit Growth of $241 million
• SBLF Dividend Rate to Decline to 1% in Third Quarter
• Interest Margin of 4.53%

PHOENIX -- (Business Wire)

Western Alliance Bancorporation (NYSE:WAL) announced today its financial results for the first quarter 2012.

First Quarter 2012 Highlights:

• Net income of $11.3 million, including loss on repossessed assets valuations/sales of $2.7 million
• Earnings per share of $0.12, compared to $0.07 per share for the fourth quarter 2011 and $0.03 per share in the first quarter 2011
• Pre-tax, pre-provision operating earnings of $31.7 million, up from $31.5 million in fourth quarter 2011 and up 25.3% from $25.3 million in first quarter 2011¹
• Total loans of $4.93 billion, up $146 million from December 31, 2011, approximately half of which were investment grade municipal leases acquired from another financial institution
• Total deposits of $5.90 billion, up $241 million from December 31, 2011
• Nonperforming assets (nonaccrual loans and repossessed assets) increased to 2.7% of total assets from 2.6% in fourth quarter 2011 and decreased from 3.3% in first quarter 2011
• Net charge-offs (annualized) to average loans outstanding declined to 1.18% from 1.24% in the fourth quarter 2011 and 1.39% in the first quarter of 2011.
• Tier I Leverage capital of 9.8% and Total Risk-Based Capital ratio of 12.5%, compared to 9.6% and 13.2% a year ago
• Total equity of $654.1 million, up $17.4 million from December 31, 2011

Financial Performance

“We’re off to a strong start in 2012, with record top line revenue and net income more than double the first quarter of last year,” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. “Our balance sheet momentum continues with double digit loan and deposit growth during the quarter on an annualized basis. I’m particularly proud of our growth in qualifying loans for the Small Business Lending Fund, which is a ‘win-win’ for businesses by providing them additional liquidity and our shareholders with lower preferred dividend service requirements.”

Ken Vecchione, President and Chief Operating Officer, added, “Our core earnings, defined as Pre-tax, Pre-provision income, grew again for the eleventh consecutive quarter.¹ Contributing to the rise in income, net interest margin increased from prior quarter while loan growth continues its acceleration from prior year. This quarter Western Alliance’s ROA grew to 67 bps, double the performance of last year. In April, Torrey Pines Bank opened its second Los Angeles branch as we begin to penetrate the attractive Los Angeles market.”

Western Alliance Bancorporation reported net income of $11.3 million, or $0.12 per share in the first quarter 2012 including $1.3 million after-tax charge from repossessed assets valuations/sales.

Total loans increased $146 million, or 3.1 percent, to $4.93 billion at March 31, 2012 from $4.78 billion on December 31, 2011. This increase was driven by growth in commercial and industrial loans, commercial leases and commercial real estate loans. Loans increased $648 million from March 31, 2011.

Qualifying Small Business Fund Loans grew $82 million during the quarter to $169 million or 11.2% from the baseline at March 31, 2012.

Total deposits increased $241 million, or 4.3 percent, to $5.90 billion at March 31, 2012 from $5.66 billion at December 31, 2011, with growth primarily in non-interest bearing demand, interest bearing demand and money market accounts, partially offset by declines in savings accounts and certificates of deposit. Deposits increased $402 million from March 31, 2011.

Income Statement

Net interest income of $70.1 million in the first quarter 2012 increased by 2.0 percent compared to the fourth quarter 2011 and 14.7 percent compared to the first quarter 2011. The net interest margin in the first quarter 2012 was 4.53 percent compared to 4.51 percent in the fourth quarter 2011 and 4.35 percent in the first quarter 2011.

Operating non-interest income was $5.9 million for the first quarter 2012, an increase from $5.6 million for the fourth quarter of 2011 and decrease from $6.0 million for the first quarter of 2011.¹

Net revenue was $75.9 million for the first quarter 2012, a 2.2 percent increase from $74.3 million for the fourth quarter of 2011 and 13.1 percent from $67.1 million for the first quarter 2011.¹

Operating non-interest expense was $44.2 million for the first quarter 2012, compared to $42.8 million for the fourth quarter of 2011 and $41.8 million for the first quarter of 2011.¹ The Company’s operating efficiency ratio on a tax equivalent basis was 57.0 percent for the first quarter 2012, improved from 61.9 percent for the first quarter 2011.¹

The Company had 951 full-time equivalent employees at March 31, 2012, compared to 894 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. For the first quarter 2012, the Company’s performance on this metric was $31.7 million, up from $31.5 million in the fourth quarter 2011 and $25.3 million in the first quarter 2011.¹

The provision for credit losses remained flat at $13.1 million for the first quarter 2012 compared to the fourth quarter 2011. The provision for the first quarter of 2011 was $10.0 million. Net loan charge-offs in the first quarter 2012 were $14.1 million, or 1.18 percent of average loans (annualized), down from 1.24 percent of average loans (annualized) for the fourth quarter 2011. Net charge-offs for the first quarter 2011 were $14.6 million or 1.39% of average loans (annualized).

Nonaccrual loans increased $13.1 million to $103.5 million during the quarter as certain loans were placed on nonaccrual status despite adequate cash flow and current in payments but deficient in collateral coverage. Loans past due 90 days and still accruing totaled $1.0 million at March 31, 2012, down from $2.6 million at December 31, 2011 and $1.1 million at March 31, 2011. Loans past due 30-89 days totaled $12.0 million at quarter end, down from $13.7 million at December 31, 2011 and down from $30.7 million at March 31, 2011.

Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 37 percent at March 31, 2012 from 48 percent at March 31, 2011 and 39 percent at December 31, 2011.¹

Net loss on sales and valuation of repossessed assets (primarily other real estate) was $2.7 million for the first quarter of 2012 compared to $7.7 million for the fourth quarter 2011 and $6.1 million in the first quarter 2011. At March 31, 2012, other repossessed assets were valued at $81 million compared to $89 million at December 31, 2011 and $98 million one year ago.

Balance Sheet

Gross loans totaled $4.93 billion at March 31, 2012, an increase of $146 million from December 31, 2011 and an increase of $648 million from $4.28 billion at March 31, 2011. At March 31, 2012 the allowance for credit losses was 1.99 percent of total loans down from 2.07 percent at December 31, 2011 and 2.48 percent at March 31, 2011.

Deposits totaled $5.90 billion at March 31, 2012, an increase of $241 million from $5.66 billion at December 31, 2011 and an increase of $402 million from $5.50 billion at March 31, 2011.

Non-interest bearing deposits increased $199 million at March 31, 2012 from December 31, 2011 and increased $303 million from $1.46 billion at March 31, 2011. Non-interest bearing deposits comprised 29.8 percent of total deposits at March 31, 2012, compared to 26.5 percent a year ago.

At March 31, 2012, the Company’s loans were 83.5 percent of deposits compared to 84.5 percent at December 31, 2011 and 77.8 percent at March 31, 2011.

Stockholders’ equity at March 31, 2012 increased to $654.1 million from $636.7 million at December 31, 2011. At March 31, 2012, tangible common equity was 6.9 percent of tangible assets¹ and total risk-based capital was 12.5 percent of risk-weighted assets.

Total assets increased to $6.93 billion at March 31, 2012 from $6.84 billion at December 31, 2011 and increased 8.1 percent from $6.40 billion at March 31, 2011.

Operating Unit Highlights

Bank of Nevada reported that loans increased by $67 million during the first quarter of 2012, primarily due to an intercompany transfer from Torrey Pines Bank, and increased $54 million during the last 12 months to $1.93 billion at March 31, 2012. Deposits increased $58 million in the first quarter of 2012 and increased $45 million over the last twelve months to $2.44 billion. Net income for Bank of Nevada was $1.0 million for the first quarter 2012, compared with net income of $1.2 million for the fourth quarter of 2011 and net income of $0.9 million during the first quarter 2011.

Western Alliance Bank reported loan growth of $65 million during the first quarter 2012 and $365 million during the last 12 months to $1.71 billion. Deposits increased $76 million in the first quarter and $261 million during the last 12 months to $1.95 billion. Net income for Western Alliance Bank was $9.8 million during the first quarter 2012 compared with net income of $5.6 million during the fourth quarter of 2011 and net income of $4.9 million during the first quarter 2011.

The Torrey Pines Bank segment, which excludes discontinued operations, reported that loans increased $14 million during the first quarter 2012 and $229 million during the last 12 months to $1.33 billion. Deposits increased $114 million in the first quarter 2012 and over the last 12 months to $1.53 billion. Net income for Torrey Pines Bank was $5.8 million during the first quarter 2012 compared with net income of $5.9 million for the fourth quarter of 2011 and net income of $4.0 million during the first quarter 2011. Torrey Pines Bank opened its second branch in the Los Angeles area in April 2012.

Attached to this press release is summarized financial information for the quarter ended March 31, 2012.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2012 financial results at 12:00 p.m. ET on Friday, April 20, 2012. Participants may access the call by dialing 1-866-843-0890 and using passcode: 9945126 or via live audio webcast using the website link: https://services.choruscall.com/links/wal120420pm.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 April 20^th through April 30^th at 9:00 a.m. ET by dialing 1-877-344-7529 using the conference number 10012763.

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 15