First Quarter 2009 Highlights:

Record customer deposits of $4.02 billion, including growth of $429 million ($311 million organic) during the quarter

Record growth in organic customer funds (sum of deposits and customer repurchase agreements) of $263 million during the quarter to $4.18 billion

Incurred a net operating loss of $6.5 million (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) in the first quarter 2009, compared to a $12.2 million net operating loss in the fourth quarter 2008 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge)

Reported diluted net operating loss per common share of $0.23 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge), compared to diluted net operating loss per common share of $0.35 for fourth quarter 2008 (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge)

Included in the net loss of $86.5 million was a non-cash goodwill impairment charge of $45 million and an after tax write down of $36 million on Bank of America preferred stock, which is still performing

Interest margin expansion to 4.39% during the quarter, compared to 4.30% in fourth quarter 2008 and 4.20% in first quarter 2008

Reported net revenue (sum of net interest income and non-interest income, excluding securities impairment charges, net mark-to-market gains and losses on other real estate owned properties) of $57.6 million, up 0.5% from $57.3 million in the fourth quarter 2008 and up 4.9% from $54.9 million for the first quarter 2008

Acquisition of $132 million in deposits from Security Savings Bank (Henderson, Nevada) by our Bank of Nevada subsidiary at zero premium from the FDIC

Financial Performance

Western Alliance Bancorporation reported a net operating loss of $6.5 million, excluding securities impairment charges of $36.4 million (net of tax), net mark-to-market gains of $1.8 million and a non-cash goodwill impairment charge of $45.0 million in the first quarter 2009, an improvement of $5.8 million from the fourth quarter 2008.

The Company incurred a net loss of $86.5 million for the first quarter 2009, compared to net income of $4.1 million for the first quarter 2008. First quarter 2009 results include a non-cash goodwill impairment charge of $45.0 million and a securities impairment charge of $36.4 million (net of tax), essentially comprised of a non-cash write down of its holdings of Bank of America (BofA) preferred stock, as these securities were cut to below investment grade by credit rating agencies. Notably, despite the credit downgrade, the Company's holdings of BofA rank pari passu with the preferred stock issued by BofA to the US Treasury under the TARP program. BofA has repeatedly insisted it will repay the US Treasury in whole and has never suspended or curtailed dividend service on the Company's holdings. At quarter end, its aggregate preferred stock holdings of Bank of America, Morgan Stanley and Zions Bancorporation have a par value of $65.1 million and a market and book value of $17.0 million. All of these holdings are paying as agreed.

Effective January 1, 2009, the Company adopted various FASB Staff Positions regarding fair value accounting issued in April 2009. However, for purposes of this earnings release, the Company has not recognized the cumulative effect of an accounting change as an adjustment to its beginning retained earnings position. The Company expects the cumulative effect may have a modest benefit to its tangible and regulatory capital position, which will be reflected in its SEC Form 10-Q filing for the first quarter 2009.

In February 2009, our Bank of Nevada subsidiary was selected to acquire the deposits of the former Security Savings Bank (Henderson, Nevada). Security Savings Bank was closed by the Nevada Financial Institutions Division, and the FDIC was named receiver. Bank of Nevada agreed to assume all of the failed bank's deposits, totaling approximately $132 million, excluding brokered deposits. Bank of Nevada paid no premium to acquire the deposits. No loans were acquired in this transaction.

Gross loans decreased slightly to $4.08 billion at March 31, 2009 from $4.10 billion on December 31, 2008 and increased $353 million from $3.72 billion on March 31, 2008.

Customer funds increased $380 million to $4.29 billion at March 31, 2009 from December 31, 2008, comprised of a $429 million increase in deposits, offset by a $49 million decrease in customer repurchase agreements. From March 31, 2008, customer funds increased $509 million, comprised of a $461 million increase in deposits and a $48 million increase in customer repurchase agreements. Noninterest bearing title company deposits increased $30 million to $115 million during the quarter ended December 31, 2008 and decreased $71 million from March 31, 2008.

"Although obscured by non-cash charges for goodwill and securities impairment, during the quarter we made progress on our most urgent priority, returning to profitability," said Robert Sarver, Chairman and Chief Executive of Western Alliance. "Our record deposit growth and continued interest margin expansion improved our operating performance and strengthened our earning power to address the most challenging real estate market in memory. The write down of Bank of America preferred stock, driven by rating agency downgrades, and goodwill charge resulting from lower valuations of financial institutions, have no effect on our cash flow. Bank of America has never suspended dividend service on our preferred stock and remains adamant about its ability to continue to pay its obligations. The value of this stock is up 25 percent since March 31. Despite higher credit costs, our capital levels remain strong and well in excess of the ˜well capitalized' ratios promulgated by banking regulators. While our non-performing assets increased significantly during the quarter, we do see signs of a deceleration in the rate of contraction in our market areas, similar to other reports regarding economic conditions nationally. We remain keenly focused on proactively addressing credit issues.

"I am pleased we were able to augment our exceptional organic deposit growth during the quarter with the FDIC assisted acquisition of the deposits of Security Savings Bank. I'm proud of our team of banking professionals, who delivered record deposit market share expansion, along with good pricing and structure of new loans."

Income Statement

Net interest income increased 8.3 percent to $50.7 million in the first quarter 2009 from $46.9 million in the first quarter 2008. The net interest margin in the first quarter 2009 was 4.39 percent, compared to 4.30 percent in the fourth quarter 2008. The net interest margin was 4.20 percent in the first quarter 2008.

The provision for loan losses was $20.0 million for the first quarter 2009 compared to $32.3 million for the fourth quarter 2008 and $8.1 million for the first quarter 2008. Nonaccrual loans and other real estate owned were $114.1 million or 2.17 percent of total assets at March 31, 2009, compared with $72.8 million or 1.40 percent of total assets at December 31, 2008 and $16.7 million or 0.32 percent of total assets at March 31, 2008. Net loan charge-offs in the first quarter 2009 were $17.6 million or 1.72 percent of average loans (annualized), compared to net charge-offs of $14.5 million or 1.45 percent of average loans (annualized) as of December 31, 2008 and $6.5 million or 0.70 percent of average loans (annualized) as of March 31, 2008. Loans past due 30-89 days totaled $53.1 million at quarter end, up from $45.2 million at December 31, 2008 and $50.7 million at March 31, 2008. Loans past due 90 days and still accruing totaled $53.2 million at quarter end, up from $11.5 million at December 31, 2008 and $3.2 million at March 31, 2008.

Noninterest income, excluding changes in fair value of financial instruments and net losses on the sale of other real estate owned, was $6.9 million for the first quarter 2009, down 14.7 percent from $8.0 million (including approximately $0.8 million from a non-recurring item) for the same period in 2008. This decrease was primarily the result of declining assets under management due to stock market deterioration. For the fourth quarter 2008, noninterest income was $7.1 million.

Net revenue (sum of net interest income and non-interest income, excluding securities impairment charges, net mark-to-market gains and net gains/losses on the sale of other real estate owned) was $57.6 million for the first quarter 2009, up 4.9 percent from $54.9 million for the first quarter 2008. For the fourth quarter 2008, net revenue was $57.3 million.

Noninterest expense (excluding a non-cash goodwill impairment charge) was $43.5 million for the first quarter 2009, up 14.5 percent from $38.0 million for the same period in 2008. For the fourth quarter 2008, noninterest expense (excluding securities impairment charges, net mark-to-market gains and a non-cash goodwill impairment charge) was $43.6 million.

The net loss was $86.5 million for the first quarter 2009 compared to net income of $4.1 million for the same period last year. Diluted loss per share was $2.33 compared to diluted earnings per share of $0.14 for the first quarter 2008. Average diluted shares increased 24.7 percent to 38.1 million for the first quarter 2009 compared to 30.5 million for the first quarter 2008.

Balance Sheet

Gross loans totaled $4.08 billion at March 31, 2009, a decrease of 0.5 percent from $4.10 billion at December 31, 2008 and increased 9.5 percent from $3.72 billion at March 31, 2008. At March 31, 2009 the allowance for loan losses was 1.89 percent of gross loans, compared to 1.83 percent at December 31, 2008 and 1.37 percent at March 31, 2008.

Customer funds totaled $4.29 billion at March 31, 2009, an increase of $380 million from December 31, 2008 and an increase of $509 million from $3.78 billion at March 31, 2008.

Noninterest bearing deposits comprised 25.8 percent of total deposits at March 31, 2009. As of March 31, 2009, noninterest bearing deposits from title companies were 2.9 percent of total deposits, compared to 2.4 percent at December 31, 2008, and 5.2 percent at March 31, 2008.

At March 31, 2009 the Company's loans were 94.92 percent of customer funds compared to 98.35 percent one year earlier and 104.66 percent at December 31, 2008. Wholesale borrowings, including non-relationship brokered deposits, totaled $409 million at March 31, 2009, down $357 million from $766 million one year earlier, and down $288 million from December 31, 2008.

Stockholders' equity decreased $69 million from December 31, 2008 to $427 million at March 31, 2009 primarily due to the securities impairment charge and non-cash goodwill impairment charge. Primarily as a result of the securities impairment charge, other comprehensive loss decreased $17.2 million from $28.5 million at December 31, 2008 to $11.3 million at March 31, 2009. At March 31, 2009 tangible common equity was 4.7 percent of tangible assets and total risk-based capital was 11.9 percent of risk-weighted assets.

Total assets increased 1.3 percent to $5.27 billion at March 31, 2009 from $5.20 billion at March 31, 2008.

Operating Unit Highlights

Our Nevada banking operations, which include Bank of Nevada and First Independent Bank of Nevada, reported gross loans of $2.64 billion during the first quarter 2009 compared to $2.66 billion in the fourth quarter 2008 and $2.57 billion during the first quarter 2008. Customer funds increased $125 million to $2.53 billion during the first quarter 2009. Net operating income for our Nevada banks was $1.0 million (excluding mark-to-market gains, securities impairment charges and non-cash goodwill impairment charges totaling $62.5 million) in the first quarter 2009. Net loss for our Nevada banks was $63.4 million during the first quarter 2009 compared with net income of $0.9 million during the first quarter 2008.

Our California banking operations, which include Torrey Pines Bank and Alta Alliance Bank, reported gross loans of $764 million during the first quarter 2009 compared to $774 million in the fourth quarter 2008 and $594 million during the first quarter 2008. Customer funds increased $141 million to $971 million during the first quarter 2009. Net operating loss for our California banks was $0.4 million (excluding mark-to-market gains and securities impairment charges of $4.4 million) in the first quarter 2009. Net loss for our California banks was $5.5 million during the first quarter 2009 compared with net income of $1.2 million during the first quarter 2008.

Our Arizona banking operations, which consists of Alliance Bank of Arizona, reported gross loans of $682 million during the first quarter 2009 compared to $678 million in the fourth quarter 2008 and $597 million during the first quarter 2008. Customer funds increased $57 million to $800 million during the first quarter 2009. Net operating loss for our Arizona bank was $2.5 million (excluding mark-to-market losses and securities impairment charges of $0.8 million) in the first quarter 2009. Net loss for our Arizona bank was $4.5 million during the first quarter 2009 compared with net income of $1.3 million during the first quarter 2008.

The asset management business line, which includes Miller/Russell and Associates, Shine Investment Advisory Services and Premier Trust, had assets under management of $1.54 billion at March 31, 2009, down 27.4 percent from $2.12 billion at March 31, 2008, primarily due to valuation declines in equity securities. Assets under administration by the three entities decreased 25.5 percent from $2.31 billion at March 31, 2008 to $1.72 billion at March 31, 2009.

Our affinity card business line, PartnersFirst, launched five new affinity groups during the first quarter 2009 and as of March 31, 2009 had 17,167 open accounts. Losses incurred by PartnersFirst for the quarter ended March 31, 2009 were $1.6 million.

Attached to this press release is summarized financial information for the quarter ended March 31, 2009.

Conference Call

Western Alliance Bancorporation will host a conference call to discuss its first quarter 2009 financial results at 11:00. ET on Friday, April 24, 2009. Participants may access the call by dialing 1-800-860-2442. The call will be recorded and made available for replay after 2:00 p.m. ET April 24, until 9 a.m. ET May 8, by dialing 1-877-344-7529 using the pass code 430066#.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words "anticipate," "assume," "intend," "believe," "expect," "estimate," "plan," "will," "look forward," and similar expressions are generally intended to identify forward-looking statements. 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: 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 loan 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; other factors affecting the financial services industry generally or the banking industry in particular; and other factors described in our 2008 Form 10-K and other documents filed by us with the Securities and Exchange Commission.

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.

About Western Alliance Bancorporation

Western Alliance Bancorporation is the parent company of Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates, Shine Investment Advisory Services, Premier Trust and PartnersFirst. These dynamic organizations provide a broad array of banking, leasing, trust, investment, and mortgage services to clients in Nevada, Arizona and California, investment services in Colorado, and bank card services nationwide. 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, westernalliancebancorp.com.

  Western Alliance Bancorporation and Subsidiaries                                                                                         Summary Consolidated Financial Data                                                                                                      Unaudited                                                                                                                                                                                               At or for the three months                                                                                                               ended Mar.