Western Alliance Reports Profit of $5.2 million for the First Quarter 2011

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

First Quarter 2011 Highlights:

• Net income of $0.03 per common share, compared to net loss of $0.17 for the fourth quarter 2010 and $0.03 net loss for the first quarter of 2010
• Pre-tax, pre-provision operating earnings of $25.3 million, up from $25.0 million in fourth quarter 2010 and up 32.4% from $19.1 million in first quarter 2010¹
• Record net interest income of $61.1 million, compared to $60.9 million in prior quarter and $54.7 million in same quarter last year
• Net interest margin of 4.35%, compared to 4.26% in fourth quarter of 2010 and 4.17% in first quarter last year
• Total loans of $4.28 billion, up $37 million from December 31, 2010 and up $219 million from March 31, 2010
• Total deposits of $5.50 billion, up $159 million from December 31, 2010 and up $307 million from March 31, 2010
• Nonperforming assets (nonaccrual loans and repossessed assets) of 3.3% of total assets, compared to 3.6% in fourth quarter 2010 and 4.2% in first quarter 2010
• Total watch and classified loans (including nonaccrual) of $445 million at March 31, 2011, compared to $452 million at December 31, 2010 and $603 million at March 31, 2010
• Provision for credit losses of $10.0 million, compared to $18.4 million in the fourth quarter 2010 and $28.7 million in first quarter last year
• Net loan charge-offs of $14.6 million, down from $15.9 million for the fourth quarter 2010 and $24.6 million in first quarter last year
• Net income of $5.2 million, including pre-tax loss on repossessed asset valuations/sales of $6.1 million
• Tier I Leverage capital of 9.6% and Total Risk-Based Capital ratio of 13.2%, compared to 9.5% and 14.6% a year ago

Financial Performance

"I’m pleased with our strong start in 2011 with an increase in our top line performance, driven by loan and deposit growth and an expanding margin, and our bottom line performance through increased efficiency and improved asset quality,” said Robert Sarver, Chairman and Chief Executive Officer of Western Alliance Bancorporation. "For the first time in three years, each of our operating units was profitable. We continue to make important strides on multiple fronts simultaneously as we achieve total loan growth while reducing higher risk construction and land exposure, and growing our deposits while reducing our funding costs. These successes demonstrate our continued progress toward achieving our full operating potential.”

Ken Vecchione, President and Chief Operating Officer, added, "Western Alliance continues to demonstrate predictability along with improving credit metrics. Over the last several quarters our Company has shown consistent loan growth, improving quarter-to-quarter net interest income, expense discipline, increasing operating leverage, and strong core profitability dynamics. Focus on our long-term objectives, adhering to our straight-forward business model, and the improving backdrop of credit quality help produce our best quarterly financial results since 2007.”

Western Alliance Bancorporation reported net income of $5.2 million in the first quarter 2011, including a net loss from sales/valuation of repossessed assets of $6.1 million and a loss on discontinued operations net of tax of $0.6 million.

The Company reported net income per common share of $0.03 in the first quarter 2011. The income included $0.05 loss from sales/valuations of repossessed assets after tax and a net loss from discontinued affinity credit card operations held for sale net of tax of $0.01.

Total loans increased $37 million to $4.28 billion at March 31, 2011 from $4.24 billion on December 31, 2010. This increase was driven by growth in commercial real estate loans and commercial leases; partially offset by reductions in all other loan types. Geographically, loans outstanding at our Las Vegas, Nevada affiliate decreased by $42 million and increased by $79 million at our other affiliates. Loans increased $219 million from March 31, 2010.

Total deposits increased $159 million to $5.50 billion at March 31, 2011 from $5.34 billion at December 31, 2010, with significant growth in money market/savings accounts and, non-interest bearing demand deposits offset by a decline in certificates of deposits and interest bearing demand deposits. Deposits increased $307 million from March 31, 2010.

Income Statement

Net interest income increased slightly to $61.1 million in the first quarter 2011 from $60.9 million in the fourth quarter 2010 and 11.7 percent compared to the first quarter 2010, propelled by reductions in cost of funds. The net interest margin in the first quarter 2011 was 4.35 percent compared to 4.26 percent in the fourth quarter 2010 and 4.17 percent in the first quarter of 2010.

Operating non-interest income was $6.0 million for the first quarter 2011.¹ This performance was a decrease from $6.2 million for the same period in 2010 and the same as fourth quarter of 2010, resulting from the disposition of the majority of our asset management businesses.¹

Net revenue was $67.1 million for the first quarter 2011, a slight increase from $66.9 million for the fourth quarter of 2010 and 10.2 percent from net revenue of $60.9 million for the first quarter 2010.¹

Operating non-interest expense was $41.8 million for the first quarter 2011, compared to $41.9 million for the fourth quarter of 2010 and the same period in 2010.¹ The operating efficiency ratio was 62 percent for the first quarter 2011, compared to 68 percent for the first quarter 2010.¹ The Company had 894 full-time equivalent employees at March 31, 2011, compared to 948 one year ago.

A key performance metric for the Company is its pre-tax, pre-provision operating earnings, which it defines as net revenue less its operating non-interest expense.¹ For the first quarter 2011, the Company’s performance was $25.3 million, compared to $25.0 million in the fourth quarter 2010 and $19.1 million in the first quarter 2010.¹

The provision for credit losses was $10.0 million for the first quarter 2011 compared to $18.4 million for the fourth quarter 2010 and $28.7 million for the first quarter 2010. Nonaccrual loans and repossessed assets were $213 million or 3.3 percent of total assets at March 31, 2011, down from $225 million or 3.6 percent of total assets at December 31, 2010 and $254 million or 4.2 percent of total assets at March 31, 2010. Net loan charge-offs in the first quarter 2011 were $14.6 million or 1.39 percent of average loans (annualized), down from $15.9 million or 1.52 percent of average loans (annualized) for the fourth quarter 2010 and $24.6 million or 2.43% of average loans (annualized) for the first quarter 2010. Loans past due 90 days and still accruing totaled $1.1 million at March 31, 2011, down from $1.5 million at December 31, 2010 and down from $8.4 million at March 31, 2010. Loans past due 30-89 days totaled $30.7 million at quarter end, up from $18.2 million at December 31, 2010 and down from $38.6 million at March 31, 2010. Classified assets to Tier I capital plus allowance for credit losses, a common regulatory measure of asset quality, improved to 48 percent at March 31, 2011 from 70 percent one year ago.¹

Net loss on sales and valuation of repossessed assets (primarily other real estate) was $6.1 million for the first quarter 2011 compared to $13.0 million in the prior quarter. At March 31, 2011, other repossessed assets were valued at $98 million compared to $108 million at December 31, 2010.

During the first quarter 2011, the Company completed its consolidations of its Alta Alliance Bank subsidiary into Torrey Pines Bank and its First Independent Bank of Nevada subsidiary into Alliance Bank of Arizona doing business as Western Alliance Bank and incurred $0.2 million in merger charges related to these transactions.

Balance Sheet

Gross loans totaled $4.28 billion at March 31, 2011, an increase of $37 million from December 31, 2010 and an increase of $219 million from $4.06 billion at March 31, 2010. At March 31, 2011 the allowance for credit losses was 2.48 percent of total loans down from 2.61 percent at December 31, 2010 and 2.78 percent at March 31, 2010.

Deposits totaled $5.50 billion at March 31, 2011, an increase of $159 million from $5.34 billion at December 31, 2010 and an increase of $307 million from $5.19 billion at March 31, 2010.

Non-interest bearing deposits increased by $11.8 million to $1.46 billion at March 31, 2011 from December 31, 2010 and increased $106.3 million from $1.35 billion at March 31, 2010. Non-interest bearing deposits comprised 26.5 percent of total deposits at March 31, 2011, compared to 26 percent a year ago.

At March 31, 2011 the Company’s loans were 77.8 percent of deposits, compared to 78.2 percent one year earlier and 79.4 percent at December 31, 2010.

Stockholders’ equity at March 31, 2011 was essentially flat at $601.6 million from $602.2 million at December 31, 2010. At March 31, 2011, tangible common equity was 6.8 percent of tangible assets¹ and total risk-based capital was 13.2 percent of risk-weighted assets.

Total assets increased 5 percent to $6.40 billion at March 31, 2011 from $6.10 billion at March 31, 2010 and increased 3.4 percent from $6.19 billion at December 31, 2010.

Operating Unit Highlights

Bank of Nevada reported that loans declined $42 million during the first quarter of 2011 and declined $141 million during the last 12 months to $1.87 billion at March 31, 2011. Deposits increased slightly since December 31, 2010 and increased $123 million over the last twelve months to $2.39 billion. Net income for Bank of Nevada was $0.9 million during the first quarter 2011, compared with net losses of $5.8 million for the fourth quarter of 2010 and $3.0 million during the first quarter 2010.

Western Alliance Bank reported loan growth of $39 million during the first quarter 2011 and an increase of $190 million during the last 12 months to $1.34 billion. Deposits increased $22 million in the first quarter and decreased $18 million during the last 12 months to $1.69 billion. Net income for Western Alliance Bank was $4.9 million during the first quarter 2011 compared with net income of $3.6 million during the fourth quarter of 2010 and a net income of $1.1 million during the first quarter 2010.

Torrey Pines Bank segment, which excludes discontinued operations, reported that loans increased $40 million during the first quarter 2011 and increased $169 million during the last 12 months to $1.10 billion. Deposits increased $135 million and $201 million to $1.42 billion during the same periods, respectively. Net income for Torrey Pines Bank was $4.0 million during the first quarter 2011 compared with net income of $3.2 million for the fourth quarter of 2010 and net income of $0.5 million during the first quarter 2010.

Attached to this press release is summarized financial information for the quarter ended March 31, 2011.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live audio webcast to discuss its first quarter 2011 financial results at 12:00 p.m. ET on Monday, April 25, 2011. Participants may access the call by dialing 1-866-843-0890 and using passcode: 1293839 or via live audio webcast using the website link: http://www.talkpoint.com/viewer/starthere.asp?Pres=135049. 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 25, until 9 a.m. ET, May 9, by dialing 1-877-344-7529 and using the passcode: 449879.

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

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
						At or for the Three Months
						Ended March 31,
						2011						2010						Change %
						(in thousands, except per share data)
Selected Balance Sheet Data:
(dollars in millions)
Total assets						$	6,404.8					$	6,096.2					5.1		%
Loans, net of deferred fees							4,278.0						4,059.1					5.4
Securities and money market investments							1,319.6						781.1					68.9
Federal funds sold							-						2.4					(100.0	)
Total deposits							5,497.5						5,190.1					5.9
Borrowings							73.0						20.0					265.0
Junior subordinated and subordinated debt							43.0						102.3					(58.0	)
Stockholders' equity							601.6						575.7					4.5
Selected Income Statement Data:
(dollars in thousands)
Interest income						$	71,966					$	68,734					4.7		%
Interest expense							10,868						14,016					(22.5	)
Net interest income							61,098						54,718					11.7
Provision for loan losses							10,041						28,747					(65.1	)
Net interest income after provision for credit losses							51,057						25,971					96.6
Non-interest income							6,830						14,629					(53.3	)
Non-interest expense							48,146						40,843					17.9
Income (loss) from continuing operations before income taxes							9,741						(243	)				(4,108.6	)
Income tax expense (benefit)							4,029						(1,562	)				(357.9	)
Income from continuing operations							5,712						1,319					333.1
Loss on discontinued operations, net							(559	)					(935	)				(40.2	)
Net income						$	5,153					$	384					1,241.9		%
Diluted net income (loss) from continuing operations						$	0.04					$	(0.02	)
Diluted net loss from discontinued operations, net of tax						$	(0.01	)				$	(0.01	)
Diluted net income (loss) per common share						$	0.03					$	(0.03	)				(200.0	)	%
Common Share Data:
Diluted net income (loss) per common share						$	0.03					$	(0.03	)				(200.0	)	%
Book value per common share						$	5.72					$	6.12					(6.5	)	%
Tangible book value per share, net of tax (1)						$	5.30					$	5.62					(5.7	)	%
Average shares outstanding (in thousands):
Basic							80,794						71,965					12.3
Diluted							81,103						71,965					12.7
Common shares outstanding							82,237						73,031					12.6
(1) See Reconciliation of Non-GAAP Financial Measures

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data (continued)
Unaudited
						At or for the Three Months
						Ended March 31,
						2011				2010				Change %
						(in thousands, except per share data)
Selected Performance Ratios:
Return on average assets (1)						0.33	%			0.03	%			1,000.0		%
Return on average stockholders' equity (1)						3.41				0.27				1,163.0
Net interest margin (1)						4.35				4.17				4.3
Net interest spread						4.06				3.84				5.7
Efficiency ratio - tax equivalent basis (2)						61.89				68.42				(9.5	)
Loan to deposit ratio						77.82				78.21				(0.5	)
Capital Ratios:
Tangible equity (2)						8.8	%			8.8	%			0.4		%
Tangible common equity (2)						6.8				6.7				1.4
Tier one common equity (2)						8.5				8.2				3.5
Tier 1 Leverage ratio (3)						9.6				9.5				1.1
Tier 1 Risk Based Capital (3)						12.0				12.0				0.0
Total Risk Based Capital (3)						13.2				14.6				(9.6	)
Asset Quality Ratios:
Net charge-offs to average loans outstanding (1)						1.39	%			2.43	%			(42.8	)	%
Nonaccrual loans to gross loans						2.67				3.66				(27.0	)
Nonaccrual loans and repossessed assets to total assets						3.32				4.17				(20.4	)
Loans past due 90 days and still accruing to total loans						0.03				0.21				(85.7	)
Allowance for credit losses to loans						2.48				2.78				(10.8	)
Allowance for credit losses to nonaccrual loans						92.90				75.78				22.6
(1) Annualized for the three month periods ended March 31, 2011 and 2010.
(2) See Reconciliation of Non-GAAP Financial Measures.
(3) Capital ratios are preliminary until Call Reports are filed.

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Statements of Operations
Unaudited						Three Months Ended
						March 31,
						2011								2010
Interest income:						(dollars in thousands)
Loans						$	63,882							$	62,350
Investment securities							7,930								6,121
Federal funds sold and other							154								263
Total interest income							71,966								68,734
Interest expense:
Deposits							7,898								12,079
Customer repurchase agreements							86								284
Borrowings							2,182								449
Junior subordinated and subordinated debt							702								1,204
Total interest expense							10,868								14,016
Net interest income							61,098								54,718
Provision for credit losses							10,041								28,747
Net interest income after provision for credit losses							51,057								25,971
Non-interest income
Unrealized (losses) gains on assets/liabilities measured at fair value,net							(509	)							301
Securities impairment charges							-								(103	)
Gains on sales of investment securities, net							1,379								8,218
Trust and investment advisory services							636								1,213
Service charges							2,284								2,197
Operating lease income							671								964
Bank owned life insurance							1,184								719
Other							1,185								1,120
							6,830								14,629
Non-interest expenses:
Salaries and employee benefits							22,840								21,440
Occupancy							4,854								4,787
Insurance							3,863								3,492
Net loss on sales and valuations of repossessed assets							6,129								(1,014	)
Repossessed asset and loan expenses							2,122								2,364
Legal, professional and director's fees							1,366								1,868
Merger related expenses							217								-
Customer service							892								1,065
Intangible amortization							890								907
Marketing							1,157								1,156
Data Processing							848								791
Operating lease depreciation							421								689
Other							2,547								3,298
							48,146								40,843
Income (loss) from continuing operations before income taxes							9,741								(243	)
Income tax expense (benefit)							4,029								(1,562	)
Income from continuing operations							5,712								1,319
Loss from discontinued operations net of tax benefit							(559	)							(935	)
Net income							5,153								384
Preferred stock dividends							1,750								1,750
Accretion on preferred stock discount							753								716
Net income (loss) available to common stockholders						$	2,650							$	(2,082	)
Diluted net income (loss) per share						$	0.03							$	(0.03	)

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Statements of Operations
Unaudited				Three Months Ended
				March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
				2011						2010						2010						2010						2010
Interest income:				(in thousands, except per share data)
Loans				$	63,882					$	64,985					$	64,273					$	64,201					$	62,350
Investment securities					7,930						7,054						6,047						5,327						6,121
Federal funds sold and other					154						335						385						472						263
Total interest income					71,966						72,374						70,705						70,000						68,734
Interest expense:
Deposits					7,898						8,652						9,531						11,067						12,079
Borrowings and customer repurchase agreements					2,268						2,097						970						483						733
Junior subordinated and subordinated debt					702						714						736						994						1,204
Total interest expense					10,868						11,463						11,237						12,544						14,016
Net interest income					61,098						60,911						59,468						57,456						54,718
Provision for credit losses					10,041						18,384						22,965						23,115						28,747
Net interest income after provision for credit losses					51,057						42,527						36,503						34,341						25,971
Non-interest income
Mark-to-market (losses) gains, net					(509	)					(6,710	)					(210	)					6,250						301
Gains on sales of investment securities, net					1,379						-						5,460						6,079						8,218
Gain on extinguishment of debt					-						-						-						3,000						-
Securities impairment charges					-						(12	)					-						(1,071	)					(103	)
Trust and investment advisory services					636						608						1,001						1,181						1,213
Service charges					2,284						2,177						2,276						2,319						2,197
Operating lease income					671						864						998						967						964
Bank owned life insurance					1,184						1,027						773						780						719
Other					1,185						1,326						1,869						1,255						1,120
					6,830						(720	)					12,167						20,760						14,629
Non-interest expenses:
Salaries and employee benefits					22,840						21,125						21,860						22,161						21,440
Occupancy					4,854						5,075						4,890						4,828						4,787
Insurance					3,863						4,109						4,115						3,759						3,492
Repossessed asset and loan expenses					2,122						2,230						1,918						1,564						2,364
Net (gain) loss on sales and valuations of repossessed assets					6,129						12,991						4,855						11,994						(1,014	)
Legal, professional and director's fees					1,366						2,038						1,546						2,139						1,868
Marketing					1,157						982						878						1,045						1,156
Intangible amortization					890						889						901						907						907
Customer service					892						1,050						987						1,154						1,065
Data Processing					848						948						842						793						791
Operating lease depreciation					421						542						627						647						689
Merger related expense					217						1,651						-						-						-
Other					2,547						2,915						2,690						2,271						3,298
					48,146						56,545						46,109						53,262						40,843
Income (loss) from continuing operations before income taxes					9,741						(14,738	)					2,561						1,839						(243	)
Income tax expense (benefit)					4,029						(4,580	)					(79	)					(190	)					(1,562	)
Income (loss) from continuing operations				$	5,712					$	(10,158	)				$	2,640					$	2,029					$	1,319
Loss from discontinued operations, net of tax					(559	)					(657	)					(631	)					(802	)					(935	)
Net income (loss)				$	5,153					$	(10,815	)				$	2,009					$	1,227					$	384
Preferred stock dividends					1,750						1,750						1,750						1,750						1,750
Accretion on preferred stock					753						734						716						716						716
Net Income (loss) available to common stockholders				$	2,650					$	(13,299	)				$	(457	)				$	(1,239	)				$	(2,082	)
Diluted net income (loss) per share				$	0.03					$	(0.17	)				$	(0.01	)				$	(0.02	)				$	(0.03	)

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
				March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
				2011						2010						2010						2010						2010
Assets:				(in millions)
Cash and due from banks				$	363.3					$	215.8					$	615.0					$	560.6					$	827.6
Federal funds sold					-						0.9						1.0						-						2.4
Cash and cash equivalents					363.3						616.0						616.0						560.6						830.0
Securities and money market investments					1,319.6						1,273.1						929.7						848.6						781.1
Loans:
Commercial					935.9						934.6						876.8						832.8						757.9
Commercial real estate - owner occupied					1,299.5						1,223.1						1,227.7						1,234.1						1,209.3
Construction and land development					391.7						451.5						488.3						532.4						556.9
Commercial real estate - non-owner occupied					1,086.9						1,038.5						981.4						926.0						902.9
Residential real estate					504.5						527.3						533.6						536.1						560.2
Consumer					65.7						71.5						71.4						74.6						77.6
Deferred fees, net					(6.2	)					(6.0	)					(5.7	)					(6.0	)					(5.7	)
					4,278.0						4,240.5						4,173.5						4,130.0						4,059.1
Allowance for credit losses					(106.1	)					(110.7	)					(108.2	)					(110.0	)					(112.7	)
Loans, net					4,171.9						4,129.8						4,065.3						4,020.0						3,946.4
Premises and equipment, net					112.0						114.4						116.5						118.7						121.2
Other repossessed assets					98.3						107.7						110.1						104.4						105.6
Bank owned life insurance					131.0						129.8						94.8						94.0						93.2
Goodwill and other intangibles					38.4						39.3						40.2						41.3						42.2
Other assets					170.3						183.1						206.5						171.9						176.5
Total assets				$	6,404.8					$	6,193.9					$	6,179.1					$	5,959.5					$	6,096.2
Liabilities and Stockholders' Equity:
Liabilities:
Deposits:
Non-interest bearing demand deposits				$	1,455.1					$	1,443.3					$	1,421.7					$	1,330.4					$	1,348.7
Interest bearing
Demand					521.2						523.8						645.4						611.4						510.2
Savings and money market					2,100.6						1,926.1						1,892.2						1,845.9						1,798.5
Time certificates					1,420.6						1,445.2						1,369.2						1,442.5						1,532.7
Total deposits					5,497.5						5,338.4						5,328.5						5,230.2						5,190.1
Customer repurchase agreements					163.4						109.4						86.8						87.1						169.1
Total customer funds					5,660.9						5,447.8						5,415.3						5,317.3						5,359.2
Borrowings					73.0						73.0						72.9						-						20.0
Junior subordinated and subordinated debt					43.0						43.0						36.3						36.3						102.3
Accrued interest payable and other liabilities					26.3						27.9						34.8						30.0						39.0
Total liabilities					5,803.2						5,591.7						5,559.3						5,383.6						5,520.5
Stockholders' Equity
Common stock and additional paid-in capital					740.9						739.6						737.8						688.2						686.0
Preferred Stock					131.6						130.8						130.1						129.4						128.7
Retained earnings (deficit)					(256.2	)					(258.8	)					(245.5	)					(245.0	)					(243.7	)
Accumulated other comprehensive income (loss)					(14.7	)					(9.4	)					(2.6	)					3.3						4.7
Total stockholders' equity					601.6						602.2						619.8						575.9						575.7
Total liabilities and stockholders' equity				$	6,404.8					$	6,193.9					$	6,179.1					$	5,959.5					$	6,096.2

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
				Three Months Ended
				March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
				2011						2010						2010						2010						2010
				(in thousands)
Balance, beginning of period				$	110,699					$	108,170					$	110,013					$	112,724					$	108,623
Provision for credit losses					10,041						18,384						22,965						23,115						28,747
Recoveries of loans previously charged-off:
Construction and land development					416						773						214						1,801						409
Commercial real estate					471						13						160						808						22
Residential real estate					269						304						1,209						295						231
Commercial and industrial					829						800						389						573						1,238
Consumer					25						36						47						14						67
Total recoveries					2,010						1,926						2,019						3,491						1,967
Loans charged-off:
Construction and land development					4,198						3,221						3,843						7,921						8,638
Commercial real estate					6,114						7,297						12,813						7,827						5,884
Residential real estate					3,282						3,278						3,695						7,835						5,855
Commercial and industrial					1,407						2,823						5,036						4,602						4,757
Consumer					1,616						1,162						1,440						1,132						1,479
Total loans charged-off					16,617						17,781						26,827						29,317						26,613
Net loans charged-off					14,607						15,855						24,808						25,826						24,646
Balance, end of period				$	106,133					$	110,699					$	108,170					$	110,013					$	112,724
Net charge-offs (annualized) to average loans outstanding					1.39	%					1.52	%					2.41	%					2.53	%					2.43	%
Allowance for credit losses to gross loans					2.48						2.61						2.59						2.66						2.78
Nonaccrual loans				$	114,246					$	116,999					$	130,905					$	134,264					$	148,760
Repossessed assets					98,312						107,655						110,096						104,365						105,637
Loans past due 90 days, still accruing					1,087						1,458						5,667						8,233						8,437
Loans past due 30 to 89 days, still accruing					30,689						18,164						20,432						20,343						38,611
Classified loans (including nonaccrual)					240,737						256,657						285,972						304,270						336,624
Watch loans					204,470						194,905						205,114						257,715						266,734

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
				Three Months Ended March 31,
				2011														2010
				Average Balance					Interest				Average Yield/Cost					Average Balance					Interest				Average Yield/Cost
Interest earning assets				($ in millions)					($ in thousands)									($ in millions)					($ in thousands)
Investment securities (1)				$	1,277.2				$	7,930			2.67	%				$	823.5				$	6,304			3.22	%
Federal funds sold and other					0.2					1			2.03	%					32.6					53			0.66	%
Loans (1)					4,203.2					63,882			6.16	%					4,053.5					62,167			6.22	%
Short term investments					228.1					131			0.23	%					389.8					183			0.19	%
Investment in restricted stock					36.8					22			0.24	%					41.4					27			0.26	%
Total interest earning assets					5,745.5					71,966			5.11	%					5,340.8					68,734			5.24	%
Non-interest earning assets
Cash and due from banks					121.6														98.2
Allowance for credit losses					(110.5	)													(117.7	)
Bank owned life insurance					130.2														92.8
Other assets					408.9														400.5
Total assets				$	6,295.7													$	5,814.6
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts				$	501.5				$	533			0.43	%				$	450.0				$	783			0.71	%
Savings and money market					2,007.4					3,566			0.72	%					1,784.2					4,676			1.06	%
Time certificates of deposit					1,438.9					3,799			1.07	%					1,482.6					6,620			1.81	%
Total interest-bearing deposits					3,947.8					7,898			0.81	%					3,716.8					12,079			1.32	%
Borrowings					220.8					2,268			4.17	%					229.5					733			1.30	%
Junior subordinated and subordinated debt					43.0					702			6.62	%					102.4					1,204			4.77	%
Total interest-bearing liabilities					4,211.6					10,868			1.05	%					4,048.7					14,016			1.40	%
Noninterest-bearing liabilities
Noninterest-bearing demand deposits					1,441.4														1,150.2
Other liabilities					29.6														28.8
Stockholders’ equity					613.1														586.9
Total liabilities and stockholders' equity				$	6,295.7													$	5,814.6
Net interest income and margin									$	61,098			4.35	%									$	54,718			4.17	%
Net interest spread													4.06	%													3.84	%
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $481 and $244 for the first quarter ended 2011 and 2010, respectively.

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited																												Inter-
																												segment						Consoli-
				Bank						Western						Torrey												elimi-						dated
				of Nevada						Alliance Bank						Pines Bank*						Other						nations						Company
At March 31, 2011				(in millions)
Assets				$	2,778.3					$	1,979.8					$	1,590.7					$	728.4					$	(672.4	)				$	6,404.8
Gross loans and deferred fees, net					1,872.1						1,344.6						1,104.1						-						(42.8	)					4,278.0
Less: Allowance for credit losses					(70.6	)					(19.7	)					(15.8	)					-						-						(106.1	)
Net loans					1,801.5						1,324.9						1,088.3						-						(42.8	)					4,171.9
Goodwill					23.2						-						-						2.7						-						25.9
Deposits					2,390.2						1,693.1						1,416.7						-						(2.5	)					5,497.5
Stockholders' equity					310.4						165.8						137.0						608.7						(620.3	)					601.6
No. of branches					12						16						11						-						-						39
No. of FTE					407						210						193						84						-						894
Three Months Ended March 31, 2011:
				(in thousands)
Net interest income				$	26,428					$	19,656					$	17,317						(2,303	)				$	-					$	61,098
Provision for credit losses					7,003						1,600						1,437						-						-						10,041
Net interest income (loss) after provision for credit losses					19,425						18,056						15,880						(2,303	)					-						51,057
Non-interest income					3,392						2,031						1,739						(332	)					-						6,830
Non-interest expense					(21,672	)					(12,383	)					(10,491	)					(3,600	)					-						(48,146	)
Income (loss) from continuing operations before income taxes					1,145						7,704						7,128						(6,235	)					-						9,741
Income tax expense (benefit)					251						2,849						3,106						(2,177	)					-						4,029
Income (loss) from continuing operations					894						4,855						4,022						(4,058	)					-						5,712
Loss from discontinued operations, net					-						-						-						(559	)					-						(559	)
Net income (loss)				$	894					$	4,855					$	4,022					$	(4,617	)				$	-					$	5,153
* Excludes discontinued operations

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited																												Inter-
																												segment						Consoli-
				Bank						Western						Torrey												elimi-						dated
				of Nevada						Alliance Bank						Pines Bank*						Other						nations						Company
At March 31, 2010:				(in millions)
Assets				$	2,775.7					$	1,911.4					$	1,393.5					$	621.5					$	(605.9	)				$	6,096.2
Gross loans and deferred fees, net					2,013.1						1,154.3						934.7						-						(43.0	)					4,059.1
Less: Allowance for credit losses					(70.2	)					(25.8	)					(16.7	)					-						-						(112.7	)
Net loans					1,942.9						1,128.5						918.0						-						(43.0	)					3,946.4
Goodwill					23.2						-						-						2.7						-						25.9
Deposits					2,267.1						1,710.7						1,215.7						-						(3.4	)					5,190.1
Stockholders' equity					295.9						130.5						127.7						580.9						(559.2	)					575.8
No. of branches					12						17						9						-						-						38
No. of FTE					441						238						206						63						-						948
Three Months Ended March 31, 2010:				(in thousands)
Net interest income				$	25,657					$	14,886					$	14,314					$	(139	)				$	-					$	54,718
Provision for credit losses					22,034						3,988						2,725						0						-						28,747
Net interest income after provision for credit losses					3,623						10,898						11,589						(139	)					-						25,971
Non-interest income					7,964						1,866						896						3,446						457						14,629
Noninterest expense					(16,170	)					(10,761	)					(11,368	)					(4,248	)					1,704						(40,843	)
Income (loss) from continuing operations before income taxes					(4,583	)					2,003						1,117						(941	)					2,161						(243	)
Income tax expense (benefit)					(1,583	)					861						628						(1,468	)					-						(1,562	)
Income (loss) from continuing operations					(3,000	)					1,142						489						527						2,161						1,319
Loss from discontinued operations, net					-						-						-						(935	)					-						(935	)
Net income (loss)				$	(3,000	)				$	1,142					$	489					$	(408	)				$	2,161					$	384
* Excludes discontinued operations

Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited)
				March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
				2011						2010						2010						2010						2010
				(dollars in thousands)
Total stockholder's equity				$	601,576					$	602,174					$	619,764					$	575,858					$	575,779
Less:
Goodwill and intangible assets					38,401						39,291						40,180						41,307						42,214
Total tangible stockholders' equity					563,175						562,883						579,584						534,551						533,565
Less:
Preferred stock					131,580						130,827						130,094						129,378						128,661
Total tangible common equity					431,595						432,056						449,490						405,173						404,904
Add:
Deferred tax					4,461						4,774						5,087						5,400						5,713
Total tangible common equity, net of tax				$	436,056					$	436,830					$	454,577					$	410,573					$	410,617
Total assets				$	6,404,838					$	6,193,883					$	6,179,146					$	5,959,479					$	6,096,238
Less:
Goodwill and intangible assets					38,401						39,291						40,180						41,307						42,214
Tangible assets					6,366,437						6,154,592						6,138,966						5,918,172						6,054,024
Add:
Deferred tax					4,461						4,774						5,087						5,400						5,713
Total tangible assets, net of tax				$	6,370,898					$	6,159,366					$	6,144,053					$	5,923,572					$	6,059,737
Tangible equity ratio (1)					8.8	%					9.1	%					9.4	%					9.0	%					8.8	%
Tangible common equity ratio (2)					6.8	%					7.0	%					7.3	%					6.8	%					6.7	%
Common shares outstanding					82,237						81,669						81,503						73,344						73,031
Tangible book value per share, net of tax (3)				$	5.30					$	5.35					$	5.58					$	5.60					$	5.62
				Three Months Ended
				March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
				2011						2010						2010						2010						2010
				(in thousands)
Total non-interest income				$	6,830					$	(720	)				$	12,167					$	20,760					$	14,629
Less:
Mark-to-market (losses) gains, net					(509	)					(6,710	)					(210	)					6,250						301
Securities impairment charges					-						(12	)					-						(1,071	)					(103	)
Gains on sales of investment securities, net					1,379						-						5,460						6,079						8,218
Gain on extinguishment of debt					-						-						-						3,000						-
Gain on sale of subsidiary					-						-						568						-						-
Total operating non-interest income					5,960						6,002						6,349						6,502						6,213
Add: net interest income					61,098						60,911						59,468						57,456						54,718
Net revenue (4)				$	67,058					$	66,913					$	65,817					$	63,958					$	60,931
Total non-interest expense				$	48,146					$	56,545					$	46,109					$	53,262					$	40,843
Less:
Net loss (gain) on sales/valuations of repossessed assets					6,129						12,991						4,855						11,994						(1,014	)
Merger related					217						1,651						-						-						-
Goodwill impairment					-						-						-						-						-
Total operating non-interest expense (4)				$	41,800					$	41,903					$	41,254					$	41,268					$	41,857
Net revenue				$	67,058					$	66,913					$	65,817					$	63,958					$	60,931
Less:
Operating non-interest expense					41,800						41,903						41,254						41,268						41,857
Pre-tax, pre-provision operating earnings (5)				$	25,258					$	25,010					$	24,563					$	22,690					$	19,074

Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures (Unaudited)
				Three Months Ended
				March 31,						Dec. 31,						Sept. 30,						June 30,						March 31,
				2011						2010						2010						2010						2010
				(in thousands)
Total operating non-interest expense				$	41,800					$	41,903					$	41,254					$	41,268					$	41,857
Divided by:
Total net interest income				$	61,098					$	60,911					$	59,468					$	57,456					$	54,718
Add:
Tax equivalent interest adjustment					481						464						307						149						244
Operating non-interest income					5,960						6,002						6,349						6,502						6,213
				$	67,539					$	67,377					$	66,124					$	64,107					$	61,175
Efficiency ratio - tax equivalent basis (6)					61.9	%					62.2	%					62.4	%					64.4	%					68.4	%

									Three Months Ended
									March 31,											March 31,
									2011											2010
									(in thousands)
Stockholder's equity									$	601,576										$	575,779
Less:
Accumulated other comprehensive (loss) income										(14,741	)										4,683
Non-qualifying goodwill and intangibles										34,663											37,269
Other non-qualifying assets										24,057											28,240
Disallowed unrealized losses on equity securities										19											-
Add:
Qualifying trust preferred securities										43,034											42,320
Tier 1 capital (regulatory) (7)										600,612											547,907
Less:
Qualifying non-controlling interests										122											178
Qualifying trust preferred securities										43,034											42,320
Preferred stock										131,580											128,661
Estimated Tier 1 common equity (8)									$	425,876										$	376,748
Divided by:
Estimated risk-weighted assets (regulatory (8)									$	4,996,916										$	4,575,838
Tier 1 common equity ratio (8)										8.5	%										8.2	%
									March 31,											March 31,
									2011											2010
									(in thousands)
Classified assets									$	341,618										$	461,823
Divide:
Tier 1 capital (regulatory) (7)										600,612											547,907
Plus: Allowance for credit losses										106,133											112,724
Total Tier 1 capital plus allowance for credit losses									$	706,745										$	660,631
Classified assets to Tier 1 capital plus allowance (9)										48	%										70	%

(1) We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength.

(2) We believe this non-GAAP ratio provides critical metrics with which to analyze and evaluate financial condition and capital strength.

(3) We believe this non-GAAP ratio improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

(4) We believe this non-GAAP measurement is better indicative of the cash generating capacity of the Company.

(5) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company which is otherwise obscured by the asset quality issues.

(6) We believe this non-GAAP ratio provides understanding of the operating efficiency of the Company.

(7) Under the guidelines of the Federal Reserve and the FDIC in effect at December 31, 2010, Tier 1 capital consisted of common stock, retained earnings, non-cumulative perpetual preferred stock, trust preferred securities up to a certain limit, and minority interests in certain subsidiaries, less most other intangible assets.

(8) Tier 1 common equity is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a bank's balance sheet assets and credit equivalent amounts of off-balance sheet items, are assigned to one of four broad risk categories. The aggregated dollar amount in each category is then multiplied by the risk weighting assigned to that category. The resulting weighted values from each of the four categories are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator (risk-weighted assets) to determine the Tier 1 capital ratio. Adjustments are made to Tier 1 capital to arrive at Tier 1 common equity. Tier 1 common equity is also divided by the risk-weighted assets to determine the Tier 1 common equity ratio. We believe this non-GAAP ratio provides a critical metric with which to analyze and evaluate financial condition and capital strength.

(9) We believe this non-GAAP ratio provides a critical regulatory metric in which to analyze asset quality.