Western Alliance Bancorporation
Annual Report 2016

Plain-text annual report

Western Alliance Bancorporation Annual Report 2016 N O G N K N A B I E R O M E R O M REACH RESOURCES EXPERTISE WHY MORE MATTERS Thriving businesses want more, and that is our focus at Western Alliance. We are proud to be a relationship-centered bank that puts client needs first with expert bankers, strong capacity, access to decision-makers, sophisticated products, customized solutions, and a real commitment to adding value. T U C S O N , A R I Z O N A 56280_Text.indd 4 3/18/17 7:24 AM 04 Letter from the CEO 06 Financial Highlights 14 Technology Investments 18 National Business Lines 26 Industry Knowledge 30 Community Involvement 36 Banking Solutions 38 Board of Directors 39 Executive Leadership Team 40 Divisions & Contacts 56280_Text.indd 5 3/18/17 7:24 AM 0 4 L E T T E R F R O M T H E C E O MORE COMMITMENT Thank you for taking the time to review this report and learn how more at Western Alliance can work for you. Our core purpose is to provide deposit and credit solutions to businesses. We deliver through a team of knowledgeable and empowered bankers committed to providing personalized and responsive service that translates into long-lasting relationships. As our Company continues to grow and evolve, our key corporate values remain constant: - We place honesty, transparency, and integrity with our customers, co-workers, and regulators at the top. - We view ourselves as a trusted partner with our customers. - We strive to bring more passion and care to our customers than our competitors. - We want to make a difference in the communities we serve. The year 2016 was one of strong performance for Western Alliance. Financially we had more growth across the board: loans, deposits, capital, earnings and customers. Total assets increased 20% to $17.2 billion. This growth was supported by an increase of $500 million or 31% in regulatory capital. Our deposits and loans grew by 21% and 19%, respectively, during the year. Net income was $260 million and $2.50 per share compared to $193 million and $2.03 per share in 2015. Our 23% earnings per share growth, return on tangible common equity of 17.71%, return on assets of 1.61%, and 21% increase in tangible book value per share, combined to put us in the upper echelon of peers in terms of operating performance and were the basis for another excellent year for our shareholders. Strategically, during 2016, we: - Purchased General Electric’s domestic, limited service, hotel franchise finance business. This acquisition provided $1.3 billion in loans to Western Alliance, added a team of 20 talented bankers and brought us a great portfolio of new customers. - Added 100 more dedicated bankers to serve you and three more strategic offices: Atlanta, Menlo Park and San Francisco. - Implemented a comprehensive upgrade of our core data processing platform. During the fourth quarter I know this conversion caused disruption and a need for training for some of our customers. For this, I apologize. However, with these changes we are moving forward with enhanced user functionality, cybersecurity and product offerings. - Provided more to our underserved communities, including: • Originating $180 million in community development loans. • Making $28 million in new community investments and donations. • Donating 10,000 hours of employee volunteer time to community organizations. • Originating 31% of our small business loans in low- and low-to-moderate income areas. Looking forward to 2017, we are focused on: continuing to innovate with our customers in mind, investing in our employees, outworking our competition, adding value to our customers and shareholders, and being a great community asset. I wish to thank our employees who volunteered to tell our story of more in this report as well as the 1,500 other dedicated employees who I get to work with every day. I’m appreciative of our talented and supportive Board of Directors that has provided us with oversight, guidance and vision. Finally, the biggest thank you is to our customers who confide in us to be their trusted partner in business. Sincerely, Robert G. Sarver 56280_Text_R1.indd 6 3/21/17 6:50 PM 0 5 “Looking forward to 2017, we are focused on: continuing to innovate with our customers in mind, investing in our employees, outworking our competition, adding value to our customers and shareholders, and being a great community asset.” 14 YEARS Robert Sarver Chairman and Chief Executive Officer Western Alliance Bancorporation 56280_Text.indd 7 3/20/17 2:55 PM 0 6 F I N A N C I A L H I G H L I G H T S E C N A M R O F R E P E R O M Excelling at What We Do “The key to our consistently strong results, which stand out among peer institutions, is a culture centered around people. Western Alliance does more because of the elevated level of passion and expertise among our employees,” says Dale Gibbons, Chief Financial Officer, Western Alliance Bancorporation. “One way customers experience this is more direct access. If the Credit Committee needs to meet, it meets. If a client needs to talk with the CEO, it happens. We have a real desire to do things better and provide solutions for our clients’ financial needs.” 14 YEARS Dale Gibbons Chief Financial Officer Western Alliance Bancorporation 56280_Text.indd 8 3/18/17 7:24 AM 0 7 Consolidated Income Statements (Unaudited) ($ in Thousands, except per share amounts) Interest Income Interest Expense $ 700,506 (43,293) $ 525,144 (32,568) $ 416,379 (31,486) $ 362,655 (29,760) 2016 2015 2014 2013 Net Interest Income Provision for Credit Losses Net Interest Income After Provision Non-Interest Income Non-Interest Expense Income Before Income Tax Income Tax Expense Income from Continuing Operations Discontinued Operations Net Income Dividends on Preferred Stock Net Income Available to Common Stockholders Weighted Average Common Shares Outstanding (Diluted) Earnings Per Share Available to Common Stockholders (Diluted) 657,213 (8,000) 649,213 42,915 (330,949) 361,179 (101,381) 259,798 – 259,798 – 259,798 $ $ 492,576 (3,200) 489,376 29,768 (260,606) 258,538 (64,294) 194,244 – 194,244 (750) 193,494 $ $ 384,893 (4,726) 380,167 24,651 (207,319) 197,499 (48,390) 149,109 (1,158) 147,951 (1,387) 146,564 $ $ 332,895 (13,220) 319,675 22,197 (196,216) 145,656 (29,830) 115,826 (861) 114,965 (1,410) 113,555 $ $ 103,843 95,219 87,506 86,541 $ 2.50 $ 2.03 $ 1.67 $ 1.31 Consolidated Balance Sheets (Unaudited) ($ in Thousands) ASSETS 2016 2015 2014 2013 Cash Securities Loans Allowance for Credit Losses $ 284,491 2,767,761 13,208,436 (124,704) $ 224,640 2,042,237 11,136,663 (119,068) $ 164,396 1,547,821 8,398,265 (110,216) $ 305,514 1,689,556 6,801,415 (100,050) Net Loans Other Assets Total Assets LIABILITIES AND EQUITY Deposits Borrowings Other Liabilities Total Liabilities Stockholders’ Equity 13,083,732 1,064,858 11,017,595 990,617 8,288,049 600,232 6,701,365 610,907 $ 17,200,842 $ 14,275,089 $ 10,600,498 $ 9,307,342 $ 14,549,863 489,665 269,785 $ 12,030,624 398,483 254,480 $ 8,931,043 485,599 182,928 $ 7,838,205 454,146 159,493 15,309,313 1,891,529 12,683,587 1,591,502 9,599,570 1,000,928 8,451,844 855,498 Total Liabilities and Stockholders’ Equity $ 17,200,842 $ 14,275,089 $ 10,600,498 $ 9,307,342 56280_Text.indd 9 3/22/17 9:46 AM 0 8 F I N A N C I A L H I G H L I G H T S MORE PERFORMANCE Total Loans $13.2 Billion 2016 Year End Total Assets $17.2 Billion 2016 Year End Total Regulatory Capital $2.1 Billion 2016 Year End 56280_Text.indd 10 3/18/17 7:24 AM 0 9 “Western Alliance has had a spectacular run of financial performance for the past several years, culminating in 2016. Our return on assets was 1.61% – among the best in the industry – complemented by return on equity of nearly 18% and more than 20% increase in earnings per share.” Dale Gibbons, Chief Financial Officer, Western Alliance Bancorporation Total Deposits $14.5 Billion 2016 Year End 2016 Shareholder Performance $10,000 Investment Comparison 2016 Year End 17.71% Return on Tangible Common Equity 1 Year 3 Years 5 Years WAL $13,834 $20,415 $78,186 KBW Regional Banking Index $13,901 $15,080 $25,079 S&P 500 $11,196 $12,905 $19,818 1.61% Return on Average Assets 56280_Text.indd 11 3/18/17 7:24 AM 1 0 F I N A N C I A L H I G H L I G H T S H T G N E R T S E R O M AT L A N TA , G E O R G I A 56280_Text.indd 12 3/18/17 7:24 AM 1 1 23% Earnings per share growth from 2015 to 2016 TOP 1% Ranking in asset size 45 Offices 1,500+ Employees to serve our clients 24% Regulatory capital 5-year compound annual growth rate (CAGR) 21% Tangible book value per share increase from 2015 to 2016 20% Loan growth in 2016 70,000+ Commercial bank accounts 7,300+ Lending relationships 19% Total revenue 5-year compound annual growth rate (CAGR) 56280_Text.indd 13 3/18/17 7:24 AM Smart Analytics Power Better Decision-making Better, faster and more efficient banking decisions for clients – that is what Dan Harach and his team think about every day. Critically, Harach, like most everyone at Western Alliance, is a “doer” as well as a thinker. In his case, putting great ideas into action meant creating a sophisticated set of tools to analyze aggregate risk for individual clients, separate portfolios or whole divisions, as big or small as the situation demands. His entrepreneurial efforts have led to more profound and readily available insights that have boosted analysis for decisions across the organization. All of this translates to faster loan decisions for clients, an important pillar of Western Alliance’s brand promise. “We’ve developed systems that are helping our bank to be even more nimble and responsive – and that’s really the story of Western Alliance. Our bankers get out and lead, they are able to anticipate opportunities. The work we do behind the scenes is just another example of the bank’s culture of getting out ahead of expectations.” 6 YEARS Dan Harach, SVP Loan Portfolio Analyst Manager Western Alliance Bank 1 2 T H G S N I I E R O M P H O E N I X , A R I Z O N A 56280_Text.indd 14 3/18/17 7:24 AM 1 3 “We’ve developed agile resources that will benefit Western Alliance for years to come. That is exciting.” 56280_Text.indd 15 3/18/17 7:24 AM 1 4 T E C H N O LO G Y I N V E S T M E N T S MORE TECHNOLOGY Investments to Enhance the Customer Experience Western Alliance in 2016 successfully completed a comprehensive technology conversion to power our banking business with a single, state-of-the-art system designed to deliver more for our clients. We invested in a solution with an outstanding track record in the industry that brings our employees and clients advanced products and services – along with a modern banking experience. Connecting every division and national business line across the bank, this one platform provides our clients and employees with banking tools and innovative products that deliver added convenience, enhanced security and high-quality service. Key benefits to customers include improved online banking, faster access to data and streamlined interfaces – in addition to the essential deliverable of enhanced security so necessary in today’s business environment. All of this paves the way for new mobile banking in 2017. For Western Alliance, this investment in our new system yields a more flexible, responsive tool for managing our growing businesses. Importantly, this dynamic platform will accommodate the bank’s growth going forward. “Understanding more about what customers want is essential to how we approach our markets. Innovative technology is bringing us new insights about our clients and their priorities.” 5 YEARS Ryan Barringer, SVP Division Marketing Director Bridge Bank and Torrey Pines Bank 56280_Text.indd 16 3/18/17 7:25 AM 1 5 Janelle Miller and her team were on the frontlines of the 2016 system conversion preparing people across the company to support a technology transition for customers. “Our customers have been asking for a more robust online banking system. While there are always challenges with any conversion, we were there to resolve them. The new platform is more modern, more user-friendly and we’re hearing positive feedback from customers.” 4 YEARS Janelle Miller, AVP Treasury Management Application Support Western Alliance Bank “The culture of our bank is really what makes outstanding customer service possible. We have great products and technology that’s always getting better, but it’s relationships that matter even more.” 16 YEARS Laura Villagomez, VP Operations Senior Manager First Independent Bank 56280_Text.indd 17 3/18/17 7:25 AM Real Responsiveness is a Real Differentiator Steve Black understands that, for every customer, their business is what matters most. That’s one reason many say he is the best SBA lender in San Diego County. Responsiveness goes beyond getting back to someone right away – it’s putting the full power and resources of a top banking organization to work for clients in ways they might not know they need. “If a customer has a great project, even if their presentation doesn’t do it justice, we often can see the possibilities,” says Black. “We have tremendous strategic capabilities to look for solutions that make a real difference for customers. And we do it in a timely manner.” At Torrey Pines Bank – and all the divisions of Western Alliance – responsiveness is a team sport. “I’m always impressed with the quality of our people. We attract ‘A’ players and everyone rolls up their sleeves to succeed for clients. That’s a big part of how we get well-crafted loan packages over the finish line.” For Black, this rare combination of hard work, expertise and flexibility is the essence of the bank’s commitment. 12 YEARS Steve Black, SVP Senior Business Development Officer Torrey Pines Bank 1 6 I E V S N O P S E R E R O M S A N D I E G O, C A L I F O R N I A 56280_Text.indd 18 3/18/17 7:25 AM 1 7 “Customers are looking for a quick and thoughtful turnaround, because they are moving quickly to capitalize on opportunities. Our responsiveness is the quality our customers value most.” 56280_Text_R1.indd 19 3/21/17 7:00 PM 1 8 N AT I O N A L B U S I N E S S L I N E S MORE CAPABILITIES Our highly specialized National Business Lines add demonstrable value – because businesses benefit from bankers who are as grounded in their worlds as they are. At each of our 10 National Business Lines, Western Alliance experts provide thorough, customized and current solutions for clients across the country. Western Alliance’s sharply focused business lines are centered around deep expertise in tech-sector lending and other specialty banking geared to enterprises of all kinds including hotel operations, mortgage banking, nonprofit entities and municipalities, homeowner associations, timeshare developments and more. Paired with our superior service and dedication to understanding the unique goals and opportunities of every individual client, our niche National Business Lines do more for customers. According to Monika Suarez, lending in the public sector is known to be an impersonal process. But things are different at Western Alliance, where customers know who their lenders are and benefit from true relationships. “One of the aspects I find so personally and professionally fulfilling about what I do for Western Alliance is that we provide so much more than just financial resources – we develop a full understanding of what our customers are trying to accomplish and can suggest other strategic partners. We add real value by collaborating in ways that help municipalities and nonprofits further their missions.” 4 YEARS Monika Suarez, SVP Municipal Finance Director Public and Nonprofit Finance 56280_Text.indd 20 3/18/17 7:25 AM 1 9 Corporate Finance, like much of Western Alliance, takes the time to dig deeper to find benefits for both customers and the bank. “We have the ability to do larger, complex syndications which helps us grow with our customers.” 5 YEARS Roham Medifar, VP Credit Research Analyst Corporate Finance “Like most large financial institutions, we have prudent credit standards. What differentiates Western Alliance is we listen to individual customer needs, and are not afraid to roll up our sleeves and do the work to come up with strategic, unique solutions to help customers meet their goals and still feel good about our position as a lender.” 3 YEARS David Bernard, SVP Senior Loan Officer Mortgage Warehouse Lending 56280_Text.indd 21 3/18/17 7:25 AM 2 0 N AT I O N A L B U S I N E S S L I N E S Alliance Association Bank Catering to the growing HOA industry nationwide, our bankers offer clients innovative solutions to reduce costs and increase revenues. Providing deposit and lockbox services, remote deposit and a broad selection of specialized loan products, Alliance Association Bank is a targeted resource for this industry. Corporate Finance Our team of leading professionals participates in larger secured loans, serving a diverse set of corporate clients in sectors including retail, healthcare, consumer products, chemicals, cable/data, business services, transportation/automotive, industrial and more. Equity Fund Resources This financing nexus for the Venture Capital and Private Equity communities offers sophisticated banking services and solutions, including capital call lines and management company flexibility lines, along with other innovative financing for general partners. Hotel Franchise Finance New to the Western Alliance family in 2016, our group of nationally recognized experts in financing select-service and extended-stay hotels in U.S. markets provides lending solutions for a full range of project needs: acquisitions, renovations, expansions, ground-up construction and refinancings. Life Sciences Group The highly specialized team provides term and revolving credit facilities to life sciences companies – biotechnology, medical device and pharmaceutical – including growth capital, working capital, refinancing, restructuring, recapitalization, as well as mergers and acquisitions. “Our clients value and often rely upon our expertise. It is common for our customers to reach out to us much earlier in the project cycle to get our input before they even put a loan package together.” 1 YEAR Chris Williams, SVP Managing Director Hotel Franchise Finance 56280_Text.indd 22 3/18/17 7:25 AM 2 1 Mortgage Warehouse Lending Serving mortgage bankers with dedicated products and market expertise, our team of professionals provides warehouse facilities, MSR financing, custodial deposit services, treasury management and other industry-tailored solutions. Public and Nonprofit Finance Geared to the unique needs of state and local governments and other nonprofit entities, our knowledgeable and experienced public finance team specializes in tax revenue, utility revenue, lease-purchase and land-secured financings. Renewable Resource Group This team offers a full complement of debt financing, advisory and banking services to developers of commercial and small-scale renewable energy generation facilities across the country. Resort Finance Dedicated to the complex financing needs of U.S.-based timeshare developers, this resourceful and experienced group specializes in financing for land and inventory acquisition, construction and receivable hypothecation. Technology Finance Providing flexible financial solutions to emerging, mid- and late-stage technology companies throughout the U.S., our well-connected group works with venture- and non-venture-backed companies from inception through IPO and beyond. “I’ve been lending for a long time, and I also have been on the other side of the table. My experience helps me to better understand the needs of our customers.” 2 YEARS Dan Jurgiewich, AVP Portfolio Manager Resort Finance 56280_Text.indd 23 3/18/17 7:25 AM People-Powered Banking It’s passion with a purpose: Western Alliance bankers and staff throughout the organization bring energy, dedication and talent. We strive to exceed customer expectations by delivering extraordinary service and top-tier products. E R O M G N O D I Adam Djou Ryan Smith John Eldean Rebekah Jenson “At Western Alliance, you can drive your own career growth. We have strong leadership that’s focused on developing employees. They are truly invested in helping you develop and implement a plan to accomplish your goals.” 4 YEARS Kalaya Vanaprasert, VP Financial Reporting Manager Western Alliance Bank 56280_Text.indd 24 3/25/17 9:23 AM Keith Drake Linda Rosset Joseph Chelhot Matthew Hatley Deavin Rimmey Anish Singh Allison Watson Kelly Cook Michelle Baptista Rosy Valles Melanie Neva “Customer interaction is the best part of my job, and working at this bank, that is tremendously valued. I do everything I can to make sure customers are comfortable with our products and with our technology.” Claudia Cervantes 6 YEARS Lu Ann Bagby Treasury Management Trainer Alliance Bank of Arizona 56280_Text.indd 25 3/25/17 10:39 AM A Story of Personal Growth With eight promotions in 16 years – from Customer Service Representative to Senior Vice President – Vinetta De La Cruz now oversees two offices for Bank of Nevada, and nurtures hundreds of important customer relationships. Her story demonstrates how Western Alliance doesn’t just support client businesses, it also supports flourishing careers. “If you would have told me this would have been my path, I wouldn’t have believed it. One of the greatest things about our bank is opportunity,” says De La Cruz. “We do an excellent job of identifying people’s strengths and then giving them a chance to grow professionally.” Her view: The bank’s investment in talented people ups the yield for customers, who benefit from highly engaged, expert bankers. “I know my customers – what keeps them up at night, what their greatest fears and achievements are, and their next big milestones.” Clearly, strong and enduring relationships define Western Alliance, both for customers and, as De La Cruz points out, “for employees right here at home…The motivation is so much more than compensation. It’s also about empowerment.” 16 YEARS Vinetta De La Cruz, SVP Regional Manager Bank of Nevada 2 4 Y T I N U T R O P P O E R O M L A S V E G A S , N E VA D A 56280_Text.indd 26 3/18/17 7:27 AM 2 5 “We do more to earn your business. We do more to retain your business. And we do more to protect your business. This same concept applies to how we treat our employees.” 56280_Text.indd 27 3/18/17 7:27 AM 2 6 I N D U S T RY K N O W L E D G E MORE EXPERTISE Our Bankers Set Us Apart Across the industries, professions and sectors that drive the economy, knowledgeable bankers can make a remarkable difference. Western Alliance bankers draw on significant, industry-specific experience to provide thoughtful business counsel alongside powerful products tailored to meet the demands of our clients and an ever-changing business environment. Our real commitment to understanding individual businesses, fueled by hard-to-match industry expertise, results in meaningful banking relationships. Areas of Expertise Accounting & Insurance Education Healthcare Homeowner Associations Hospitality & Tourism Legal Manufacturing & Distribution Municipal & Local Government Nonprofits Real Estate & Construction Renewable Energy Retail Technology & Life Sciences Timeshare Development 56280_Text.indd 28 3/18/17 7:27 AM 2 7 “There is an entrepreneurial side of this bank – they hire knowledgeable people and empower them to create new products and services for customers. There are so many subject matter experts here to help you learn new things.” 18 YEARS Kathy Cosio, SVP Internal Audit Director Western Alliance Bank The bank’s chief real estate appraiser understands that Western Alliance is built on customer relationships and timely decisions. The job of Gregg Baker and his team is to use their independence and expertise to solve complex, often unique, problems and deliver resolute valuation and environmental answers. “Our corporate culture encourages our team to ask substantive questions, exercise intellectual curiosity, and assist our lending groups and executive management in making timely, smart decisions.” 7 YEARS Gregg Baker, SVP Chief Real Estate Appraiser Western Alliance Bank “When clients call, they talk with experts who can solve their issues quickly. Everyone takes responsibility. It’s not only that we know what we are doing, it’s also that we are completely dedicated to customer service.” 11 YEARS Bella BetSayad, VP Treasury Management Bridge Bank 56280_Text.indd 29 3/18/17 7:28 AM 2 8 Stretching to Do More Builds Performance “I do more here in this job than I could have dreamed of doing at a law firm or a big bank.” For Jessica Jarvi, who works on corporate transactions, acquisitions, offerings, corporate governance, human resources and more, the impact she is able to have is clear. “Anyone who has been here for a while has been asked to stretch and do something that’s new for them. It builds confidence to tackle something completely new and see its results.” In Jarvi’s estimation, a flat organization is a difference maker. “One thing that says a great deal about our bank is that everyone is accessible. This is meaningful – we are available to talk to our internal clients every day, and I know this is exactly what our bankers do with customers. There’s more direct contact, less bureaucracy and fewer layers. Western Alliance has so many high-quality people, and part of the reason they thrive here is the ability to positively influence the organization.” 10 YEARS Jessica Jarvi, SVP Deputy General Counsel Western Alliance Bank T C A P M I E R O M R E N O, N E VA D A 56280_Text.indd 30 3/18/17 7:28 AM 2 9 “I think it’s important to work for an organization that is locally committed and involved. Across the board, the bank supports education – from high-level policy to hands-on tutoring – and the bank is very supportive of my volunteer work with First Things First, Arizona’s early childhood initiative.” 56280_Text.indd 31 3/18/17 7:28 AM 3 0 C O M M U N I T Y I N V O LV E M E N T T N E M E G A G N E E R O M Supporting What Matters We focus our efforts on helping to build vibrant and healthy communities. 56280_Text.indd 32 3/18/17 7:28 AM 2016 3 1 $180 Million In community development loans 9,864 Employee community service hours $28 Million In new community investments and donations 31% Of small business loans in low- and low-to-moderate income areas 56280_Text.indd 33 3/25/17 3:29 PM 3 2 C O M M U N I T Y I N V O LV E M E N T Strengthening Communities Western Alliance is deeply committed to giving back to the communities where we do business, working with purpose to improve quality of life. Our goal is to help build healthy communities through leadership in education, support for affordable housing, community development lending and investments, as well as a variety of grants and initiatives. Western Alliance employees embrace this philosophy by dedicating their time and expertise, often in leadership roles, to charitable and civic organizations across our markets. OF SOUTHERN NEVADA 56280_Text.indd 34 3/22/17 11:52 AM 3 3 “I’m on the board of Boys & Girls Clubs of Southern Nevada, on their HR Committee and I also conduct supervisory training for their leadership team. I have so much support from the bank for this worthwhile work in the community.” 11 YEARS Barbara Earnest, SVP Training Director Western Alliance Bank Natalie Do brings the same enthusiasm and engagement to her community involvement as she does to her work with clients at Torrey Pines Bank’s Beverly Hills office. A Certified Financial Planner® and a seasoned banker, Do also serves as Chair of the advisory board for the GRYD Foundation and Committee Chair of the Annual Los Angeles Financial Planning Day. “The bank encourages us to be altruistic in meaningful ways, which perfectly fits with my personal values.” 5 YEARS Natalie Do, VP Relationship Manager Torrey Pines Bank 56280_Text.indd 35 3/18/17 7:28 AM Innovating with Superior Service for Tech Markets For Dan Pistone, developing productive niches in technology banking powered by an unusually high level of service for clients is a truly creative enterprise. In helping to lead the four National Business Lines that together comprise Western Alliance’s Innovation Group – Technology, Equity Fund Resources, Life Sciences and Renewable Resources – he revels in assembling teams of entrepreneurial, best-in-class bankers. “We attract top people by engaging them in the creative process of building their own focused businesses, something they wouldn’t have the opportunity to do at a large, money-center bank. Interestingly, this emphasis on more responsibility and leadership also has a positive impact for clients.” In the Innovation Group, bankers have more empowerment, more engagement and more authority – very much like the technology companies they bank. “Western Alliance’s resources give us a platform to continue building a brand that people in our space see as a premium brand,” says Pistone. “What’s important is that we not only provide the full suite of products, capacity and expertise that growing technology companies all over the country need, but in a way that leads with the hands-on, personalized customer service Western Alliance stands for.” 13 YEARS Dan Pistone, SVP Business Line Director Bridge Bank 3 4 Y T I V I T A E R C E R O M S A N J O S E , C A L I F O R N I A 56280_Text.indd 36 3/18/17 7:29 AM 3 5 “There is a creative aspect to building something from the ground up, and I find this motivates some of the industry’s best bankers to join our group.” 56280_Text.indd 37 3/26/17 6:24 PM 3 6 B A N K I N G S O LU T I O N S MORE SOLUTIONS Advanced Products for Business Businesses bank on our comprehensive slate of deposit and lending solutions to meet their complex banking and financing needs. Our clients don’t have to give up exceptional service to find the innovative suite of products their businesses demand. We deliver the best of both worlds: The strong capacity and sophisticated product offerings of a large bank, with the flexibility, commitment and service of a more specialized institution. Deposit Solutions Analysis, Business & Specialty Checking Accounts Treasury Management Services: • ACH Origination • Wire Transfers • Remote Deposit • Merchant Services • Positive Pay • Sweep Services & more Certificates of Deposits Money Market Accounts Credit Solutions Asset-Based Lending Commercial and Industrial Loans Commercial Credit Cards Commercial Real Estate Loans Corporate Finance Equipment Finance/Leases Equity Fund Financing Hotel Franchise Finance Homeowner Association Lending International Banking Letters of Credit Life Sciences Finance Medical/Professional Loans Mortgage Warehouse Lending Municipal Finance Nonprofit Lending Participations and Syndications Revolving Lines of Credit Solar Project Finance SBA Financing Technology Finance Timeshare Financing Additional Banking Solutions International Banking Services Online Banking 56280_Text.indd 38 3/18/17 7:29 AM 3 7 International banking solutions are important to clients with global operations, and Western Alliance offers cutting-edge products – along with high-touch customer service – that align with customer needs. Brian Simonson helped design the tools and infrastructure that smooth the way for clients, wherever they do business. “We work with sophisticated companies that need not only the right lending facility but also other innovative techniques to optimize transactions and mitigate risk. Our international banking solutions deliver all of this with a better client experience.” 5 YEARS Brian Simonson, SVP Regional Manager Bridge Bank “The typical job description for an underwriter is to sit at a desk and analyze details. But at our bank, we’re encouraged to meet our clients, so customers know they can call the loan officer, or me, or anyone on the team – because they know us.” 6 YEARS Jenna Smithley, VP Senior Commercial Real Estate Underwriter Alliance Bank of Arizona 56280_Text.indd 39 3/18/17 7:29 AM 3 8 B O A R D O F D I R E C T O R S 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 Boyd Executive Chairman of the Board Boyd Gaming Corporation James Nave, DVM Owner Tropicana Animal Hospital Marianne Boyd Johnson Executive Vice President and Vice Chairman of the Board Boyd Gaming Corporation Michael Patriarca Retired Managing Director Promontory Financial Group Howard Gould Managing Partner Carpenter Community Bancfund John Sande, III Partner Fennemore Craig Jones Vargas Steven Hilton Chairman and Chief Executive Officer Meritage Homes Corporation Donald Snyder Community Leader and Retired Business Executive Robert Latta Partner Wilson, Sonsini, Goodrich & Rosati Sung Won Sohn, PhD M.V. Smith Professor of Business and Economics California State University CI Cary Mack Co-Managing Partner Southwest Value Partners Kenneth Vecchione President and Chief Executive Officer Encore Capital Group 56280_Text_R1.indd 40 3/21/17 7:03 PM E X E C U T I V E L E A D E R S H I P T E A M 3 9 The Executive Leadership Team at Western Alliance Bancorporation empowers employees to do more for customers, building an organization where everyone has impact and opportunity. Front Row Left to Right Gary Cady, Karen Craigmile, Dale Gibbons, Robert Sarver, Jim Lundy, Duane Froeschle Back Row Left to Right Don Garner, Robert McAuslan, Robyn Young, John Maguire, Merrill Wall, Randall Theisen, Dan Myers, Patricia Taylor, John Guedry, John Peckham, Rachelle Crupi, Ed Zito 56280_Text.indd 41 3/18/17 7:29 AM 4 0 D I V I S I O N S & C O N TA C T S Across the country, Western Alliance Bank meets clients where they are with highly responsive customer service and smart banking solutions to help businesses reach their goals. S A N D I E G O, C A L I F O R N I A 56280_Text.indd 42 3/18/17 7:29 AM 4 1 Western Alliance clients can reach us at the following: Western Alliance Bancorporation/ Western Alliance Bank 1 E. Washington St., Ste. 1400 Phoenix, AZ 85004 (602) 389-3500 Alliance Bank of Arizona CityScape 1 E. Washington St., Ste. 100 Phoenix, AZ 85004 (602) 629-1776 Biltmore 2701 E. Camelback Rd., Ste. 110 Phoenix, AZ 85016 (602) 952-5400 Chandler 3033 W. Ray Rd. Chandler, AZ 85226 (480) 384-3800 Flagstaff 501 E. Butler Flagstaff, AZ 86001 (928) 214-3400 Mesa 1110 E. Baseline Rd. Mesa, AZ 85204 (480) 609-2900 Phoenix Plaza 2901 N. Central Ave., Ste. 100 Phoenix, AZ 85012 (602) 629-1700 Scottsdale/Paradise Valley 6263 N. Scottsdale Rd., Ste. 100 Scottsdale, AZ 85250 (480) 998-6500 Tucson Swan 4703 E. Camp Lowell Dr. Tucson, AZ 85712 (520) 784-6000 Tucson Williams Centre 200 S. Craycroft Rd. Tucson, AZ 85711 (520) 322-7700 Bank of Nevada Sahara 2700 W. Sahara Ave. Las Vegas, NV 89102 (702) 248-4200 Aliante 6915 Aliante Pkwy. North Las Vegas, NV 89084 (702) 856-7140 Centennial Hills 8505 W. Centennial Pkwy. Las Vegas, NV 89149 (702) 856-7160 Durango 3985 S. Durango Dr. Las Vegas, NV 89147 (702) 363-5140 Grand Central Parkway 100 City Pkwy., Ste. 120 Las Vegas, NV 89106 (702) 696-6700 Green Valley 2890 N. Green Valley Pkwy. Henderson, NV 89014 (702) 451-0624 Hualapai 1115 S. Hualapai Way Las Vegas, NV 89117 (702) 856-7100 Lake Mead 7251 W. Lake Mead, Ste. 108 Las Vegas, NV 89128 (702) 240-1734 Mesquite 11 Pioneer Blvd. Mesquite, NV 89027 (702) 346-6600 Siena Heights 10199 S. Eastern Ave. Henderson, NV 89052 (702) 940-8500 Bridge Bank San Jose 55 Almaden Blvd., Ste. 100 San Jose, CA 95113 (408) 423-8500 Atlanta 6 Concourse Pkwy., Ste. 2130 Atlanta, GA 30328 (470) 639-1656 Boston 28 State St., Ste. 2301 Boston, MA 02109 (617) 995-1310 Dallas 15950 N. Dallas Pkwy., Ste. 400 Dallas, TX 75248 (214) 575-8099 Durham 105 S. Mangum St., Ste. 200 Durham, NC 27701 (571) 266-3109 Menlo Park 2735 Sand Hill Rd., Ste. 210 Menlo Park, CA 94025 (650) 276-7670 New York 420 Lexington Ave., Ste. 300 New York, NY 10170 (212) 931-8945 Oakland 1951 Webster St. Oakland, CA 94612 (510) 899-7500 Pleasanton 5820 Stoneridge Mall Rd., Ste. 100 Pleasanton, CA 94588 (925) 249-4900 Reston 12011 Sunset Hills Rd., Ste. 425 Reston, VA 20190 (703) 481-1705 San Francisco 201 Spear St., Ste. 1700 San Francisco, CA 94105 (415) 230-4834 San Francisco 201 Montgomery St. San Francisco, CA 94104 (628) 221-6630 Santa Monica 604 Arizona Ave., Ste. 201 Santa Monica, CA 90401 (916) 847-4820 Southern California, Costa Mesa 3200 Park Center Dr., Ste. 350 Costa Mesa, CA 92626 (949) 438-4000 First Independent Bank Kietzke 5335 Kietzke Ln. Reno, NV 89511 (775) 828-2000 Carson City 1818 E. College Pkwy. Carson City, NV 89706 (775) 682-4747 Fallon 2061 W. Williams Ave. Fallon, NV 89406 (775) 423-9586 Robb Drive 6290 Sharlands Ave. Reno, NV 89523 (775) 746-3000 Sparks Industrial 980 S. McCarran Blvd. Sparks, NV 89431 (775) 358-1300 Sparks Marina 725 Sparks Blvd. Sparks, NV 89434 (775) 358-8400 Torrey Pines Bank Carmel Valley 12220 El Camino Real, Ste. 110 San Diego, CA 92130 (858) 523-4630 Beverly Hills 9355 Wilshire Blvd., Ste. 102 Beverly Hills, CA 90210 (310) 623-5900 Carlsbad 2760 Gateway Rd. Carlsbad, CA 92009 (760) 814-6800 Downtown Los Angeles 601 W. 5th St., Ste. 100 Los Angeles, CA 90071 (213) 362-5200 Downtown San Diego 550 W. C St., Ste. 100 San Diego, CA 92101 (619) 233-2500 Golden Triangle 4350 Executive Dr., Ste. 130 San Diego, CA 92121 (858) 523-4688 Kearny Mesa 9280 Clairemont Mesa Blvd. San Diego, CA 92123 (858) 259-5300 La Mesa 8379 Center Dr. La Mesa, CA 91942 (619) 233-2555 Symphony Towers 750 B St., Ste. 100 San Diego, CA 92101 (619) 233-2200 National Business Lines Alliance Association Bank 3033 W. Ray Rd., Ste. 200 Chandler, AZ 85226 (888) 734-4567 Corporate Finance 4640 Admiralty Way, Ste. 500 Marina Del Rey, CA 90292 (213) 362-5213 Equity Fund Resources 2735 Sand Hill Rd., Ste. 210 Menlo Park, CA 94025 (650) 276-7670 Hotel Franchise Finance 1 E. Washington St., Ste. 1400 Phoenix, AZ 85004 (602) 346-7494 Life Sciences Group 12220 El Camino Real, Ste. 100 San Diego, CA 92130 (858) 523-4686 Mortgage Warehouse Lending 3033 W. Ray Rd., 1st Floor Chandler, AZ 85226 (480) 384-3990 Public and Nonprofit Finance 1 E. Washington St., Ste. 1400 Phoenix, AZ 85004 (602) 389-3500 Renewable Resource Group 55 Almaden Blvd., Ste. 100 San Jose, CA 95113 (408) 606-4846 Resort Finance 1 E. Washington St., Ste. 1400 Phoenix, AZ 85004 (602) 386-2315 Technology Finance San Jose 55 Almaden Blvd., Ste. 100 San Jose, CA 95113 (650) 462-8502 56280_Text.indd 43 3/18/17 7:29 AM 4 2 Acknowledgements Thank you to all our employees who contributed their time and expertise to this project, representing the 1,500+ dedicated, talented people who work at Western Alliance. One East Washington Street, Suite 1400, Phoenix, Arizona 85004 (602) 389-3500 | WesternAllianceBancorporation.com View Full Report and Videos Online WALAnnualReport.com Alliance Association Bank, Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, 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. ©2017 Western Alliance Bancorporation 

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