Western Alliance Bancorporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012; Announces Unaudited Consolidated Net Charges-Offs for the Fourth Quarter Ended December 31, 2012
January 23, 2013
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Western Alliance Bancorporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2012. Net income available to common stockholders was $32 million against $5.3 million of prior year period. Net income was $32.1 million, an increase of 107.1% compared to $15.5 million for the third quarter 2012 and more than quadruple compared to $7.1 million for the fourth quarter 2011. Net income of $18.9 million for the fourth quarter 2012, excluding $14.8 million net effect from certain transactions which include the effect of the bargain purchase gain on Western Liberty, $1.9 million of securities gains, $0.9 million net legal settlements, $5.6 million accrued disposition costs related to affinity credit card services, and $1.2 million large loan prepayment fee. Earnings per share were $0.37 compared to $0.18 per share for the third quarter 2012 and $0.07 per share in the fourth quarter 2011. Earnings per share of $0.22 for the fourth quarter 2012, excluding $0.15 per share net effect from certain transactions which include the effect of the bargain purchase gain on Western Liberty, $0.02 per share securities gains, $0.01 per share net legal settlements, $0.04 per share accrued disposition cost related to affinity credit card services and $0.01 per share for loan prepayment fee. Net revenue was $82.5 million for the fourth quarter 2012, up from $77.3 million for the third quarter of 2012 and an increase of 11.0% from $74.3 million for the fourth quarter 2011. Net interest income of $77.5 million in the fourth quarter 2012, an increase of 7.8% compared to the third quarter 2012 and 12.7% compared to the fourth quarter 2011 of $68.7 million. Income from continuing operations before income taxes was $41.4 million against $9.6 million for the same period a year ago. Diluted net income per common share from continuing operations was $0.39 against $0.07 of prior year period. Book value per common share was $7.15 against $6.02 of prior year period. Return on average assets and return on average stockholders equity were 1.68% and 17.03% against 0.42% and 4.34% of prior year period.
Full year net income was $72.8 million compared to $31.5 million in 2011. Net income available to common stockholders was $69 million against $15.3 million of prior year period. Full year earnings per share were $0.83 compared to $0.19 for 2011. Net interest income was $290.3 million against $257.7 million for the last year. Income from continuing operations before income taxes was $99.3 million against $50.3 million for the year ago. Diluted net income per common share from continuing operations was $0.86 against $0.21 of prior year. Return on average assets and return on average stockholders equity were 1.01% and 10.54% against 0.49% and 4.99% of prior year. Tangible book value ended at $6.84 in 2012.
For the quarter, the company's net loan charge-offs were $13.5 million, or 0.99% of average loans (annualized), up from 0.70% of average loans (annualized) for the third quarter 2012. Net charge-offs for the fourth quarter 2011 were $14.1 million, or 1.24% of average loans (annualized).
Western Alliance Bancorporation is a bank holding company. The Company provides a full spectrum of customized loan, deposit, and treasury management capabilities, including funds transfer and other digital payment offerings through its wholly owned banking subsidiary, Western Alliance Bank (WAB). WAB operates through five full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank, and Torrey Pines Bank. The Company also provides a range of specialized financial services to business customers across the country, including mortgage banking services through AmeriHome and treasury management services to the homeowner's association sector, and digital payment services for the class action legal industry. It has two non-bank subsidiaries, such as CS Insurance Company (CSI) and Western Alliance Trust Company, N.A. (WATC). CSI is a captive insurance company. WATC provides corporate trust services and levered loan administration solutions.
Western Alliance Bancorporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012; Announces Unaudited Consolidated Net Charges-Offs for the Fourth Quarter Ended December 31, 2012