Western Alliance Bancorporation
Annual Report 2014

Plain-text annual report

Western Alliance Bancorporation STRONG COMMITMENT. POWERFUL MOMENTUM. WAL 2014 ANNUAL REPORT 01 OUR FINANCIAL RESULTS ARE A REFLECTION OF HOW OUR CUSTOMERS FEEL ABOUT US AND THE TALENT AND EFFORTS OF OUR EMPLOYEES. — Robert Sarver 02 A Letter From Our CEO Dear Clients, Shareholders and Friends of Western Alliance, The year 2◊14 was an outstanding one for Western Alliance Bancorporation. We lent $2.5 billion and continued to positively impact our customers, communities and shareholders. Our consistent and continuing commitment to serve our customers is what drove our outstanding growth and differentiates us in the marketplace. Our business model is simple and focused: • We put our clients first • We have experienced relationship managers and credit officers close to our customers • Our executives “roll up their sleeves,” get to know our customers and make decisions • We try to limit the bureaucracy our industry is known for At Western Alliance, we have a strong commitment to support the communities where we do business. In 2◊14 we provided $194 million in community development loans, $45 million in community-based investments, donations to hundreds of nonprofit organizations, and thousands of employee volunteer hours. In addition, the number of small business loans we made in low-income census tracts exceeded that of peer averages in all our markets. Our financial results are a reflection of how our customers feel about us and the talent and efforts of our 1,131 employees. For 2◊14, revenue, earnings, loans and deposits all reached record levels. Net income of $148 million for the year resulted in a return on assets of 1.5◊%, a return on tangible common equity of 18.5%, and earnings per share of $1.67 compared to $1.31 in 2◊13. Increased business to existing customers and the addition of many new customer relationships led to robust growth in 2◊14. Total loans increased $1.6 billion and total customer deposits increased $1.1 billion for the year. Our growth and performance results rank Western Alliance in the very top tier of our industry. 03 We are well positioned for the future with a strong balance sheet, increasing capital ratios, a commitment to technology and customer security, and an entrepreneurial culture that will help us adapt to changes in our industry and in the economy. We have a diversified set of products and services along with the flexibility to accommodate our customers’ changing needs. We enter 2◊15 with a solid pipeline of new customers, talented bankers looking to join us, new lending opportunities, and the same goal of providing great service. Many people contributed to Western Alliance’s success. I would like to acknowledge our Board of Directors for their guidance and oversight, our outstanding group of employees who are the face of our Bank, and most importantly, our customers who make it fun to come to work every day. Without your support none of our success would be possible. I hope you enjoy learning more about Western Alliance through our customers’ points of view throughout this report. Robert Sarver Chairman and Chief Executive Officer 04 FINANCIALS Western Alliance is one of the fastest-growing banks in the nation, ranking in the top 1% in total assets among all banks in the country. 05 Consolidated Income Statements (Unaudited) ($ in thousands, except per share amounts) Interest Income Interest Expense Net Interest Income Provision for Credit Losses Net Interest Income After Provision Non Interest Income Non Interest Expense Income Before Income Tax Income Tax Income from Continuing Operations Discontinued Operations 2014 2013 2012 $ 416,379 (31,486) $ 362,655 (29,760) $ 318,295 (28,032) 384,893 (4,726) 380,167 25,441 (208,109) 197,499 (48,390) 149,109 (1,158) 332,895 (13,220) 319,675 22,247 (196,266) 145,656 (29,830) 115,826 (861) 290,263 (46,844) 243,419 46,505 (188,860) 101,064 (25,935) 75,129 (2,490) Net Income $ 147,951 $ 114,965 $ 72,639 Less Dividends on Preferred Stock (1,387) (1,410) (3,793) Net Income Available to Common Stockholders Weighted Average Common Shares Outstanding (diluted) Earnings Per Share Available to Common Stockholders $ 146,564 $ 113,555 $ 68,846 87,506 86,541 82,912 $ 1.67 $ 1.31 $ 0.83 Consolidated Balance Sheets (Unaudited) ($ in thousands) ASSETS 2014 2013 2012 Cash Securities Loans Allowance for Credit Losses $ 164,396 1,547,821 8,398,265 (110,216) $ 305,514 1,689,556 6,801,415 (100,050) $ 204,625 1,267,584 5,709,318 (95,427) Net Loans Other Assets Total Assets 8,288,049 600,232 6,701,365 610,907 5,613,891 536,342 $ 10,600,498 $ 9,307,342 $ 7,622,442 LIABILITIES AND EQUITY Deposits Borrowings Other Liabilities Total Liabilities Stockholders' Equity $ 8,931,043 485,599 182,928 9,599,570 1,000,928 $ 7,838,205 454,146 159,493 8,451,844 855,498 $ 6,455,177 308,969 98,875 6,863,021 759,421 Total Liabilities and Stockholders' Equity $ 10,600,498 $ 9,307,342 $ 7,622,442 Financial Highlights ($ in billions) Total Loans $8.4 Billion 2◊14 Year End Loans $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 $8.4 $6.8 $5.7 $4.8 $4.1 $4.1 $4.2 $3.6 $3.◊ $1.8 $1.2 2◊◊4 2◊◊5 2◊◊6 2◊◊7 2◊◊8 2◊◊9 2◊1◊ 2◊11 2◊12 2◊13 2◊14 In 2◊14, WAL originated $2.5 Billion of loans. Total Deposits $8.9 Billion 2◊14 Year End Deposits Nevada $3.3 California $2.◊ Other States $1.7 Arizona $1.9 $9.◊ $8.◊ $7.◊ $6.◊ $5.◊ $4.◊ $3.◊ $2.◊ $1.◊ $◊.◊ $8.9 $7.8 $6.5 $5.7 $5.3 $4.7 $3.4 $3.5 $3.7 $2.4 $1.8 2◊◊4 2◊◊5 2◊◊6 2◊◊7 2◊◊8 2◊◊9 2◊1◊ 2◊11 2◊12 2◊13 2◊14 Financial Highlights ($ in billions) Shareholder Performance Return on Tangible Common Equity Return on Average Assets 18.28% 18.52% 1.5◊% 1.35% 13.97% 1.◊1% 07 2◊12 2◊13 2◊14 2◊12 2◊13 2◊14 $1◊,◊◊◊ Investment Comparison $73,545 WAL S&P 5◊◊ KBW Regional Banking Index $44,623 $11,651 $11,369 $1◊,93◊ $17,46◊ $18,943 $2◊,514 $16,886 Investment Made One Year Ago Investment Made Three Years Ago Investment Made Five Years Ago Total Assets $1◊.6 Billion 2◊14 Year End Total Assets Total Regulatory Capital $1.12 Billion 2◊14 Year End Total Regulatory Capital $12.◊ $1◊.◊ $8.◊ $6.◊ $4.◊ $2.◊ $◊.◊ $5.◊ $5.2 $4.2 $2.9 $2.2 $1◊.6 $9.3 $7.6 $6.8 $6.2 $5.8 $1.12 $◊.99 $◊.86 $◊.72 $◊.67 $◊.65 $◊.58 $1.2◊ $1.◊◊ $◊.8◊ $◊.6◊ $◊.4◊ $◊.2◊ $◊.◊ $◊.47 $◊.41 $◊.3◊ $◊.18 2◊◊4 2◊◊5 2◊◊6 2◊◊7 2◊◊8 2◊◊9 2◊1◊ 2◊11 2◊12 2◊13 2◊14 2◊◊4 2◊◊5 2◊◊6 2◊◊7 2◊◊8 2◊◊9 2◊1◊ 2◊11 2◊12 2◊13 2◊14 08 Quick Facts Growing Business Loan growth of 24% in 2◊14 Improving Returns Earnings per share climbed 27% from $1.31 in 2◊13 to $1.67 in 2◊14 Strengthening Capital Tangible book value per share increased 29% from $7.9◊ in 2◊13 to $1◊.21 in 2◊14 Market Cap Five consecutive years of increased year-over-year growth in both total revenue and net income Business banking offices Our Values 09 Western Alliance Bancorporation delivers on three values that set the organization apart. ACCESS to decision-makers, to capital, and to a powerful set of products and services KNOWLEDGE shared by the best and brightest bankers who offer unparalleled market- and sector-specific expertise COMMITMENT to consistently exceed expectations through outstanding customer service at every level and an entrepreneurial way of thinking that shapes specialized solutions 10 ACCESS to decision-makers, to capital, and to a powerful set of products and services CHECKING IN WITH GRAND PACIFIC RESORTS Growing Resort Company Benefits from All-Inclusive Relationship with Western Alliance Grand Pacific Resorts Big blue skies, sunshine, ocean waves and the welcome relaxation more than 7◊,◊◊◊ families wait for each year. That’s the promise and the product of Grand Pacific Resorts, the full-service resort management and development company based in Carlsbad, California. As stress-free as it is to vacation at any of the 23 spectacular properties managed by Grand Pacific Resorts in California, Hawaii, Montana and in Canada, the business behind the leisure is anything but a day at the beach. When co-owner Tim Stripe first sat down with Western Alliance, he brought a sizable list of challenges and a healthy skepticism that any one bank could match his wide-ranging needs. “Timeshare is not an easy business, but they said, ‘Let’s just take a look.’” The bank’s response was speedy, and not a little surprising. “Today we deal in seven different lines at the bank, including commercial and real estate loans, and our relationship is comprehensive and extremely effective,” said Stripe. For Grand Pacific Resorts, having direct access to the bank’s key decision-makers and to its robust set of products and customized solutions, including resort finance, makes all the difference. “We’ve worked with larger banks and same-size banks and by far the relationships and exposure we have to senior decision-makers is markedly different from other banks, and I’ve been in business more than 3◊ years." "The decision-makers are there face-to-face. There is no back and forth and no bureaucracy.” — Tim Stripe, Grand Pacific Resorts MY BANKERS ARE ALWAYS AVAILABLE TO ME. — Dr. Soon K. Kim, Signature Healthcare Services 13 Signature Healthcare Services The changing framework for healthcare delivery now puts mental health on par with medical care, creating strong expansion opportunities for Signature Healthcare Services. This Southern California-based provider of in-patient psychiatric services operates 13 hospitals in five states and is growing to meet demand with Western Alliance. “These bankers are much more interested in my business than other bankers,” said Dr. Soon K. Kim, President and CEO. “I came to know the loan officer, the credit officer, then the president of the bank and even the CEO. The personal service and access are extraordinary.” Abbott’s Custom Printing Travis Abbott weathered the recession by buying four small printing companies to consolidate market share for Abbott’s Custom Printing, now the largest quick printer in Nevada. This growing business needed land and a new building, and Western Alliance opened the doors to financing, including connecting him with an SBA loan, to make it all possible. “The Western Alliance team was amazing all the way through,” said Abbott. “They saw my energy, passion and drive and they believed in me. My bankers were instrumental in helping us grow to this next level.” "They earn my business every day.” — Travis Abbott, Abbott’s Custom Printing 14 KNOWLEDGE shared by the best and brightest bankers who offer unparalleled market- and sector-specific expertise HEALTHY GROWTH FOR NEXTMED Smart Banking Helps Innovative Healthcare Company Thrive NextMed It’s a hard fact that one in every 2◊ people will develop a kidney stone at some point. No wonder Tucson-based NextMed is growing. “NextMed is obsessed with providing unsurpassed and ever-improving patient care and invests heavily to further our industry-leading, analytics-driven quality improvement programs. NextMed also is committed to providing investors with excellent returns and novel and compliant financial models,” said CEO Chris Gleason. “Our structures are complex and, while we have worked with several different banks over the last 19 years, we have found Western Alliance to be the best banking partner. They are very smart, creative and move at a velocity unknown with our prior banking relationships.” It all comes down to market knowledge and intellectual capacity. “Western Alliance bankers offer a quality of intellect that otherwise would be off-limits to all but the biggest customers at a large, money center bank. Having access to this level of bankers has proven to be invaluable to NextMed. As a CEO I am always seeking out ‘A’ level players, and I have found them at Western Alliance.” "Banking and access to capital are two things I don’t have to worry about, leaving me free to grow my business.” — Chris Gleason, NextMed WESTERN ALLIANCE UNDERSTANDS THE CONSTRUCTION INDUSTRY. — David James, FNF Construction FNF Construction 17 When a landslide closed US 89, the main highway between Flagstaff and Lake Powell, the Arizona Department of Transportation turned to the heavy construction experts at FNF Construction to improve 27 miles of an alternate roadway. The company’s response was fast and effective, opening the road to public transportation in just over 1◊◊ days following notice of award of the construction contract. FNF Construction appreciates the same kind of quick and specialized response from their banking/financial team, which includes Western Alliance. With a strong presence in the construction industry, Western Alliance consistently paves the way with unparalleled sector-specific expertise. “This is a unique industry and it’s good to have a bank with awareness and deep knowledge of the construction business,” said the company’s CFO, David James. Western Alliance bankers bring clients true expertise in a wide range of business sectors including commercial real estate and construction, professional practices, healthcare, municipalities and nonprofits, manufacturing, transportation and more. 18 COMMITMENT to consistently exceed expectations through outstanding customer service at every level and an entrepreneurial way of thinking that shapes specialized solutions ANSWERING THE CALL FOR NEW AMERICAN FUNDING Exceptional Service Closes the Deal for High-growth National Mortgage Company New American Funding At New American Funding, the American dream of home ownership is alive and well. Driven by two passionate entrepreneurs – husband and wife, Rick and Patty Arvielo – what began as a call center in 2◊◊1 now has 72 offices, more than 1,4◊◊ employees and is licensed to do business in 42 states. The Arvielos are realizing big dreams for their robust Orange County, California- based mortgage business. It’s unusual for a bank to match the energy and commitment of a fast- growing company like New American Funding, but CEO Rick Arvielo said Western Alliance does this and more. “Western Alliance shares my entrepreneurial spirit – you would think all banks would, but they don’t. To have a bank willing to open up the full suite of products is refreshing. They listen to what my needs are and they connect the dots.” For the Arvielos, Western Alliance brings a surprising level of service to the table. “As a business like ours grows, we need a banking partner that gets it. The service Western Alliance delivers is personal, engaging and cohesive.” New American Funding relies on Western Alliance for a wide set of products and services, including mortgage warehouse lending. “Western Alliance is a pioneer in mortgage servicing rights (MSR) lending, but it’s way more than that. We’re moving deposits over, looking at a revolving line of credit and they just financed a building we bought in Las Vegas. I cherish where the relationship is going because I haven’t experienced that in the banking world,” said Arvielo. “Western Alliance was the first bank interested in providing us with more things we need outside the focus of the original relationship. It’s refreshing to have a banking partner that is not a one-trick pony.” — Rick Arvielo, New American Funding THEIR CUSTOMER SERVICE IS TRULY OUTSTANDING. — Bill Heideman, Hollenbeck Palms 21 Hollenbeck Palms For Hollenbeck Palms, California’s first licensed residential retirement community, taking exceptional care of their seniors is second nature. So when it was time to add a state-of-the-art nursing center and new memory-care facility, they pursued a private bond offering. Western Alliance hit the mark for its competitive products, but it thoroughly impressed when it came to customer service. “We had no idea we could be treated this well and so competently by so many people,” said President and CEO Bill Heideman. “Sometimes in dealing with companies that want your business, it’s just fluff. But these folks are for real.” Seirus Innovation Seirus Innovation raises the thermometer as the country’s largest distributor of cold-weather accessory gear for outdoor enthusiasts. “As a seasonal business, we don’t fit into traditional banking parameters,” said Wendy Carey, CFO and wife of co-owner Mike Carey, also a former NFL referee and currently the NFL Rules Expert for CBS NFL Broadcasting. “We have experienced a lot of rapid growth, and there are years when there’s no snow – not often, but sometimes – both situations that can stress a small business. The bank understands our business and has stood by us.” For this successful San Diego-based company, there’s always a flurry of interest from other banks. “I can’t tell you how many calls I get, but I always say, thanks but we are very happy where we are. We have a commitment to Western Alliance, the bank that is so committed to us,” said Carey. “As we continue to grow, I anticipate growing with this bank.” — Wendy Carey, Seirus Innovation 22 Cutter Aviation FLYING RIGHT FOR CUT TER AVIATION Western Alliance Streamlines Loans to Lift Growing Regional Aviation Company Cutter Aviation, a third-generation, family-owned business, is charting an exciting new course of growth. Based in Phoenix, with locations at eight airports across the Southwest, Cutter Aviation now is set to expand into two new markets in California and Texas, and grow as one of the country’s first dealers of HondaJets. Founded in 1928 by CEO Will Cutter’s grandfather, today the business is a full-service aviation company that sells, fuels, manages, charters and maintains airplanes. Cutter became a new client for Western Alliance in 2◊14, and the bank worked to simplify a range of existing loans and financings—from building loans and stockholder buyouts to the company’s credit line and more—into a streamlined financing package to better fit Cutter’s goals. How fast is Cutter Aviation moving? In 2◊14, this company with 25◊ employees reached nearly $1◊◊ million in sales and is on track to exceed $13◊ million in 2◊15 with initial deliveries of the new HondaJet. “Western Alliance spent a lot of time with us learning our business, and I am so pleased with the high level of personalized service,” said Cutter. “The rates are great, the bank is quick to make transactions happen. This is a very special relationship.” " I am so pleased with the high level of personalized service." — Will Cutter, Cutter Aviation 24 A Full Range of Deposit and Treasury Management Solutions Western Alliance’s commitment to exceptional personalized service is matched by a sophisticated and comprehensive array of Deposit and Treasury Management Solutions designed for today’s fast-moving business culture. Drawing on these robust services, Western Alliance bankers provide flexible, customized solutions to meet the particular needs of our business clients across the wide range of industries and sectors in our markets. Deposit Solutions include: — Checking Accounts — Treasury Management — Money Market Accounts — Certificates of Deposits — Savings Accounts — Certificate of Deposit Registry Service/CDARS® Program — Insured Cash Sweep/ICS® Program — IOLTA Accounts — Escrow Deposit Accounts — Remote Deposit For businesses with a more extensive set of needs, Treasury Management Solutions include: — E-deposit Remote Capture Service — Lockbox — Small Business and Corporate Online Banking — ACH Services — Positive Pay — Cash Vault — Sweep Accounts — Zero Balance Accounts — Merchant Services — Trusteer Fraud Protection — Account Reconciliation — Corporate Credit Cards 25 A Powerful Set of Lending Solutions No resource is more important to growing businesses than ready access to capital. Western Alliance bankers have the authority and acumen to make quick decisions that are tailored to our clients’ individual capital needs. With more than $1◊ billion in assets, Western Alliance has the reach and strength to serve businesses big and small with skillfully built financing answers, delivered with a high degree of industry-specific expertise. Lending Solutions include: — Commercial Real Estate Loans — Medical/Professional Loans — Commercial and Industrial Loans — Corporate Finance — Revolving Lines of Credit — Municipal Finance — Nonprofit Lending — Equipment Finance/Leases — Participations and Syndications — Warehouse Mortgage Lending — Resort Finance — Letters of Credit — Community Association Loans 26 City of San Carlos A LANDMARK OPPORTUNITY FOR SILIC ON VALLEY’S CITY OF SAN CARLOS Western Alliance Public Finance Paves the Way for Gateway Project The City of San Carlos, an affluent community in the heart of Silicon Valley, had a long-held vision: Create a regional draw with a hotel on a high-profile gateway property, just off the 1◊1 highway. With the region’s resurgence after the recession, the impetus was unmistakable – act now or perhaps never. After rezoning to give the area landmark status, the city needed a private-sector banking partner to help purchase the property. Western Alliance and its growing Public Finance capabilities became the clear choice. “Other banks didn’t understand – it was outside their management bureaucracy,” said City Manager Jeff Maltbie. “It required vision and flexibility on the part of the bank to go after this business. Western Alliance was nimble and we absolutely had access to decision- makers. Other banks said things like, ‘Well, it’s six weeks until our next board meeting.’ We never had that with Western Alliance.” Even with financing approved, challenges always arise, including aggressive timelines. “Western Alliance never presented us with a problem without also recommending a solution. They made us feel comfortable every step of the way.” Today, concept designs are in place for a 2◊◊-room, Marriott Residence Inn that will transform what was once a collection of underused, unconnected properties into a vibrant new asset for the City of San Carlos. "Western Alliance never presented us with a problem without also recommending a solution." — Jeff Maltbie. City of San Carlos 28 A True Differentiator: National Business Lines For nearly every niche, for enterprises that require true specialization, Western Alliance has focused tools and expertise to support its business clients nationwide. An important dimension of the bank’s capabilities is six National Business Lines that deliver smart, industry-specific knowledge and products. Bankers across our geographically managed divisions and their clients tap the bank’s leadership in fast-growing industries and sectors served by our National Business Lines. Alliance Association Bank Western Alliance Resort Finance Meeting the needs of the growing community management industry, Alliance Association Bank offers a wide range of innovative products and services. From deposit and lockbox services to e-deposit remote capture and a broad selection of specialized loan products, Alliance Association Bank works to create efficiencies, reduce costs and increase revenue for HOAs nationwide. Delivering specialized financing to U.S.- based timeshare developers, Western Alliance Resort Finance is a highly experienced and focused resource for the bank's deep knowledge of the timeshare industry. The group offers financing for land and inventory acquisition, construction and receivable hypothecation. Western Alliance Corporate Finance Western Alliance Equipment Finance Serving a diverse portfolio of corporate clients in sectors including retail, healthcare, consumer products, chemicals, cable/data, business services, transportation/automotive, industrial and more, Western Alliance Corporate Finance is a strong and responsive financial partner. Offering unique expertise and high-level personalized service, Western Alliance Equipment Finance serves a broad range of industries including healthcare, manufacturing, transportation, construction and agriculture with sophisticated and tailored equipment financing solutions. Western Alliance Public Finance Western Alliance Mortgage Warehouse Lending Supporting the financing needs of state and local governments and nonprofit organizations, Western Alliance Public Finance has strong knowledge of the needs of this important set of clients. The group specializes in tax revenue, utility revenue, lease-purchase and land-secured financing. Providing traditional warehouse lending to well- qualified mortgage bankers with an unmatched level of expertise and responsiveness, this group also offers MSR financing, custodial deposit services, treasury management, payroll products and more. 29 THERE ARE A HANDFUL OF BANKS THAT REPRESENT THEMSELVES AS HOA BANKS, BUT WESTERN ALLIANCE’S ALLIANCE ASSOCIATION BANK DOES WHAT THEY DO BETTER THAN ANYONE ELSE BECAUSE IT IS THEIR TRUE SPECIALIZATION. — Guy Goodwin, President, Goodwin Management, Inc., which currently manages more than 22◊ homeowners associations in Texas 30 WEST ERN ALL IANCE GIVES BACK TO ITS COMM UNITIES At Western Alliance, we believe a deep-rooted commitment to our communities is integral to everyone’s success. We live and work locally, side by side with our customers and neighbors, and our employees embrace the philosophy of building sustainable and healthy communities by giving back to a wide range of nonprofit organizations. We donate time and expertise, often in leadership roles, to charitable and civic groups that better our communities in California, Arizona and Nevada. As well, Western Alliance is pleased to provide financial contributions to a broad selection of nonprofit organizations in support of education, health, environment, human services and animal welfare. Some measurements of our community commitment in 2◊14: — 2,965 Employee Volunteer Hours — $194 million in Community Development Loans — $45 million in Community Development New Investments — Over $1 million in Financial Contributions to Nonprofits Four Geographically Managed Divisions, Four Examples of Our Involvement Bank of Nevada developed the 2◊ for 2◊ Financial Literacy Program to bring financial literacy education to 2◊ Title I elementary schools. Torrey Pines Bank launched the kNOw Alzheimer’s public service campaign to help raise awareness and research dollars for this devastating disease that affects millions of people. Alliance Bank of Arizona developed “At Work in Arizona: The First 1◊◊ Years,” a book and website that frames the story of Arizona’s economic history over the past century. The project benefits 12 of the state’s most effective education-focused nonprofits. First Independent Bank helped fund development of a state-of-the-art play structure at Recreation Park in Sparks, Nevada, to encourage the community to exercise. AZ Earn to Learn 31 IT ALL ADDS UP FOR AZ EARN TO LEARN Western Alliance Partners with Empowering Nonprofit to Promote Economic Independence A little goes a long way in the hands of Kate Hoffman, Executive Director/ Founder, AZ Earn to Learn, which guides students to save $5◊◊ each year to unlock an annual match of $4,◊◊◊ at one of three Arizona state universities. The overarching purpose? To help economically challenged kids become financially competent and build life-long assets including higher education. The bank has been involved with Tucson-based AZ Earn to Learn since Hoffman was working at her dining table on the concept to create these matching scholarship funds. “Western Alliance has been a major supporter even before we had our first student,” said Hoffman. “Not only did the bank help us get our organization off the ground, they also provide important financial support – and they have done this every year since the program launched in 2◊12. I can’t imagine a better community partner.” Importantly, Western Alliance stepped up as the first of the organization’s financial partners to synchronize savings activity with AZ Earn to Learn’s smartphone app. “Now when a student saves $1◊◊ they can see in real time how the university they hope to attend puts in an $8◊◊ match. This adds a major layer of encouragement and offers an essential motivator to keep students saving and pursuing their goals.” " I can’t imagine a better community partner.” — Kate Hoffman, AZ Earn to Learn 32 Board of Directors Robert Sarver Chairman and Chief Executive Officer Western Alliance Bancorporation Todd Marshall Chairman of the Board Marshall Retail Group Bruce Beach Chairman and Chief Executive Officer BeachFleischman PC M. Nafees Nagy, MD Director Premier Care Network William S. Boyd Executive Chairman of the Board Boyd Gaming Corporation James E. Nave, DVM Owner Tropicana Animal Hospital Marianne Boyd Johnson Executive Vice President and Vice Chairman of the Board Boyd Gaming Corporation John P. Sande, III Partner Fennemore Craig Jones Vargas Steven J. Hilton Chairman and Chief Executive Officer Meritage Homes Corporation Donald Snyder Presidential Advisor University of Nevada Las Vegas Cary Mack Co-Managing Partner Southwest Value Partners Sung Won Sohn, PhD M.V. Smith Professor of Business and Economics California State University CI Kenneth A. Vecchione Chairman, Western Alliance Bank President and Chief Executive Officer Encore Capital Group 33 Executive Management Team Western Alliance Bancorporation’s Executive Management Team builds a culture of outstanding service that makes a difference for customers in every market. Delivering on the values of Access, Knowledge and Commitment, this team of experienced leaders creates an environment that attracts the best and brightest bankers. Back row from left Robyn Young, Robert McAuslan, John Maguire, Randall Theisen, Merrill Wall, James H. Lundy, Gary Cady, John Guedry Front row from left Duane Froeschle, Jeanne Pollock, Dale Gibbons, Robert Sarver, Patricia Taylor, Ed Zito, Julie Raymond 34 Locations Alliance Bank of Arizona Chandler Office 3◊33 W. Ray Rd. Chandler, AZ 85226 (48◊) 384-38◊◊ Cityscape Office One E. Washington St., Ste. 1◊◊ Phoenix, AZ 85◊◊4 (6◊2) 629-1776 Biltmore Park Office 27◊1 E. Camelback Rd., Ste. 11◊ Phoenix, AZ 85◊16 (6◊2) 952-54◊◊ Flagstaff Office 5◊1 E. Butler Flagstaff, AZ 86◊◊1 (928) 214-34◊◊ Mesa Office 111◊ E. Baseline Rd. Mesa, AZ 852◊4 (48◊) 6◊9-29◊◊ Midtown Office 29◊1 N. Central Ave., Ste. 1◊◊ Phoenix, AZ 85◊12 (6◊2) 629-17◊◊ North Scottsdale Office 151◊◊ N. 78th Way Scottsdale, AZ 8526◊ (48◊) 9◊5-446◊ Scottsdale Office 6263 N. Scottsdale Rd., Ste. 1◊◊ Scottsdale AZ 8525◊ (48◊) 998-65◊◊ Sedona Office 6486 Highway 179, Ste. 11◊ Sedona, AZ 86351 (928) 284-238◊ Swan Office 47◊3 E. Camp Lowell Dr. Tucson, AZ 85712 (52◊) 784-6◊◊◊ Williams Centre Office 2◊◊ S. Craycroft Rd. Tucson, AZ 85711 (52◊) 322-77◊◊ Bank of Nevada Sahara Regional Office 27◊◊ W. Sahara Ave. Las Vegas, NV 891◊2 (7◊2) 248-42◊◊ Centennial Hills Office 85◊5 W. Centennial Pkwy. Las Vegas, NV 89149 (7◊2) 856-716◊ Grand Central Pkwy. Office 1◊◊ City Pkwy., Ste. 12◊ Las Vegas, NV 891◊6 (7◊2) 696-67◊◊ Hualapai Regional Office 1115 S. Hualapai Way Las Vegas, NV 89117 (7◊2) 856-71◊◊ Northwest Regional Office 7251 W. Lake Mead Blvd., Ste. 1◊8 Las Vegas, NV 89128 (7◊2) 24◊-1734 Southwest Regional Office 3985 S. Durango Dr. Las Vegas, NV 89147 (7◊2) 363-514◊ Aliante Office 6915 Aliante Pkwy. North Las Vegas, NV 89◊84 (7◊2) 856-714◊ Henderson Regional Office 289◊ N. Green Valley Pkwy. Henderson, NV 89◊14 (7◊2) 451-◊624 Siena Heights Office 1◊199 S. Eastern Ave. Henderson, NV 89◊52 (7◊2) 94◊-85◊◊ Stephanie Office 221 N. Stephanie St. Henderson, NV 89◊74 (7◊2) 939-57◊◊ Mesquite Office 11 Pioneer Blvd. Mesquite, NV 89◊27 (7◊2) 346-66◊◊ First Independent Bank Kietzke Office 5335 Kietzke Lane Reno, NV 89511 (775) 828-2◊◊◊ Carson City Office 1818 E. College Pkwy. Carson City, NV 897◊6 (775) 682-4747 Fallon Office 2◊61 W. Williams Ave. Fallon, NV 894◊6 (775) 423-9586 Spanish Springs Office 381 Los Altos Pkwy. Sparks, NV 89436 (775) 626-94◊◊ Sparks Industrial Office 98◊ S. McCarran Blvd. Sparks, NV 89431 (775) 358-13◊◊ Sparks Marina Office 725 Sparks Blvd. Sparks, NV 89434 (775) 358-84◊◊ Robb Drive Office 629◊ Sharlands Ave. Reno, NV 89523 (775) 746-3◊◊◊ Torrey Pines Bank Carmel Valley Office 1222◊ El Camino Real, Ste. 11◊ San Diego, CA 9213◊ (858) 523-463◊ Beverly Hills Office 9355 Wilshire Blvd. Beverly Hills, CA 921◊1 (31◊) 623-89◊◊ Carlsbad Office 276◊ Gateway Rd. Carlsbad, CA 92◊◊9 (76◊) 444-84◊◊ Kearny Mesa Office 928◊ Clairemont Mesa Blvd. San Diego, CA 92123 (858) 259-53◊◊ Golden Triangle Office 435◊ Executive Dr., Ste. 13◊ San Diego, CA 92121 (858) 523-4688 La Mesa Office 8379 Center Dr. La Mesa, CA 91942 (619) 233-2555 Los Altos Office 2◊ First St. Los Altos, CA 94◊22 (65◊) 469-17◊◊ Los Angeles Office One Bunker Hill, 6◊1 W. 5th Ave. Los Angeles, CA 9◊◊71 (213) 362-52◊◊ Oakland Office 1951 Webster St. Oakland, CA 94612 (51◊) 899-75◊◊ San Diego Office 55◊ West C St., Ste. 1◊◊ San Diego, CA 921◊1 (619) 233-25◊◊ Symphony Towers Office 75◊ B St., Ste. 1◊◊ San Diego, CA 921◊1 (619) 233-22◊◊ National Business Lines Alliance Association Bank 3◊33 W. Ray Rd. Chandler, AZ 85226 (888) 734-4567 Western Alliance Equipment Finance One E. Washington St., Ste. 14◊◊ Phoenix, AZ 85◊◊4 (6◊2) 797-3643 Western Alliance Corporate Finance 6◊4 Arizona Ave. Santa Monica, CA 9◊4◊1 (213) 362-5213 Western Alliance Public Finance One E. Washington St., Ste. 14◊◊ Phoenix, AZ 85◊◊4 (6◊2) 797-3634 Western Alliance Mortgage Warehouse Lending 3◊33 W. Ray Rd. Chandler, AZ 85226 (48◊) 384-38◊◊ Western Alliance Resort Finance One E. Washington St., Ste. 14◊◊ Phoenix, AZ 85◊◊4 (6◊2) 386-2315 Western Alliance Bancorporation One E. Washington St., Ste. 14◊◊ Phoenix, AZ 85◊◊4 (6◊2) 389-35◊◊ Banking Divisions 35 alliancebankofarizona.com bankofnevada.com firstindependentnv.com torreypinesbank.com 36 About Western Alliance Bancorporation Driving growth in assets and earnings, top-performing, Western Alliance Bancorporation (NYSE:WAL) has more than $1◊ billion in assets and is one of the fastest- growing bank holding companies in the U.S. Its primary subsidiary, Western Alliance Bank, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior, personalized services and a full spectrum of deposit, lending, treasury management and online banking products and services. Western Alliance Bank operates full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, First Independent Bank (Nevada) and Torrey Pines Bank (California). The bank also serves business customers through a robust national platform of specialized financial services including Alliance Association Bank, Western Alliance Corporate Finance, Western Alliance Equipment Finance, Western Alliance Public Finance, Western Alliance Resort Finance, and Western Alliance Warehouse Lending. For more information, visit westernalliancebancorporation.com. To view an expanded version of the annual report with video content, visit walannualreport.com . Western Alliance Bancorporation One East Washington Street, Ste. 14◊◊ Phoenix, AZ 85◊◊4 (6◊2) 389-35◊◊ westernalliancebancorporation.com Alliance Bank of Arizona, Bank of Nevada, First Independent Bank and Torrey Pines Bank are divisions of Western Alliance Bank. Member FDIC. Western Alliance Bank is the primary subsidiary of Western Alliance Bancorporation. ©2◊15 Western Alliance Bancorporation 

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