Dear Clients, Shareholders and Friends of Western Alliance,
As a result of the relationships we have forged over the years with our customers and the passion and commitment of our talented staff and Board of Directors, Western Alliance Bancorporation achieved record performance in 2015.
Total assets reached $14.3 billion as of December 31, 2015. Our total deposits and loans grew $3.1 billion and $2.7 billion, respectively, as Western Alliance continues to be the “Go-to Bank for Business” in our markets and business niches. We now operate out of 47 business banking offices with 1,500 people committed to understanding your business and delivering you personalized, responsive service that translates into long-lasting relationships.
In 2015, we delivered a return on average assets of 1.56% and a return on tangible common equity of more than 17%. Western Alliance’s five-year compounded growth rate of 13% in revenue, expense discipline and reinvestment of all our earnings back into the company have led to a five-year growth rate of regulatory capital of 20%. We ended 2015 with a record $1.6 billion of regulatory capital and a tangible common equity ratio of 9.2%, up from 8.6% at year-end 2014 – the highest in the company’s history since its early formation.
Net income for 2015 increased to $194 million as compared to $148 million in 2014. Similarly, earnings per share grew from $1.67 in 2014 to $2.03 in 2015. Tangible book value per share grew a robust 23% to $12.54 per share in 2015. Our growth in earnings and capital supported another strong year for our stock price as we continued to significantly outperform our peers and the S&P 500.
We rank in the top 10 for deposit market share in all our major regional markets and in many of our National Business Lines. Most of this market share has been grown over time organically as we deliver our customers a comprehensive set of products, customized to their needs, through knowledgeable relationship managers with the “hands-on” assistance of Executive Management.
We view our role in helping empower local communities as both an obligation and a privilege. In 2015, we provided more than 5,000 hours of community volunteer hours, $35 million in CRA investments and $135 million in community development loans. In addition, our Foundation made cash donations to a couple hundred worthy nonprofits. Our Public and Nonprofit Finance group provided greater than $300 million in new credit in 2015. As our company continues to grow so must our commitment to give back.
The year 2015 was in many ways a transformative one for Western Alliance, mainly as a result of our merger with Bridge Bank on June 30. Bridge’s strong brand in the Bay Area greatly enhanced our existing presence in this important market. Their sector expertise, product offerings and market share in Technology Finance, along with new entrances into Life Sciences and Equity Fund Resources, will expand and diversify our growth.
We value our relationship with you and thank you for your support.
Chairman and Chief Executive Officer