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Capital One Financial in McLean, Va., took a beating in the stock market Friday, the day after it reported dismal second-quarter results and announced a wave of la
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First Niagara Financial Group in Buffalo, N.Y., reported lower second-quarter profit as the cost of technology improvements and lower securities yields offset loan growth.
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Western Alliance Bancorp. relishes niches with thin competition and high rewards. Its deal for Bridge Capital is no different: The seller serves small tech companies that provide high liquidity and ample fee revenue.
March 13
Fair-value accounting and merger costs took big bites out of Western Alliance Bancorp. in Phoenix last quarter.
The $13.5 billion-asset company's net income available to common shareholders slipped 2% from the year-earlier period, to $34.5 million. Earnings per share of 39 cents missed the average estimate of analysts polled by Bloomberg by 6 cents.
Noninterest income swung to a $2.2 million loss last from a $5.6 million gain a year earlier. A new subordinated debt issuance forced Western Alliance to reassess the fair value of its outstanding issuance junior subordinated debt, leading it to take a $7.9 million unrealized loss on the junior debt, according to a press release Monday.
A 13% uptick in income from service charges, to $3.1 million, help dull the pain of the accounting charge.
At the same time noninterest expenses rose 17% year over year, to $61.2 million, largely on $7.8 million in expenses related to
However that deal created some bright spots on the balance sheet. The addition of $1.45 billion of loans from Bridge Capital contributed to a 37% in increase in loans, to $10.4 billion. Net interest income jumped 16 % year over year, to $108.7 million, thanks to the increase in loans and a 2-basis point increase in net interest margin, to 4.41%.
Western Alliance said pretax, preprovision operating earnings which excluded the debt-valuation adjustments, merger costs and other special factors were $60 million, up 26% from a year earlier.
