1212545--3/20/2006--WESTERN_ALLIANCE

related topics

{condition, economic, financial}

{loan, real, estate}

{acquisition, growth, future}

{loss, insurance, financial}

{personnel, key, retain}

{competitive, industry, competition}

{regulation, change, law}

{debt, indebtedness, cash}

{operation, natural, condition}

{financial, litigation, operation}

{stock, price, share}

{control, financial, internal}

{capital, credit, financial}

{cost, operation, labor}

The combined company s status as a holding company makes it dependent on dividends from its subsidiaries to meet its obligations. If we continue to grow rapidly as planned, we may not be able to control costs and maintain our asset quality. We may have difficulty managing our growth, which may divert resources and limit our ability to successfully expand our operations. Our future growth is dependent upon our ability to recruit additional, qualified employees, especially seasoned relationship bankers. We are highly dependent on real estate and events that negatively impact the real estate market could hurt our business. Our high concentration of commercial real estate, construction and land development and commercial, industrial loans expose us to increased lending risks. If we lost a significant portion of our low-cost deposits, it would negatively impact our profitability. Many of our loans have been made recently, and in certain circumstances there is limited repayment history against which we can fully assess the adequacy of our allowance for loan losses. If our allowance for loan losses is not adequate to cover actual loan losses, our earnings will decrease. Our future success will depend on our ability to compete effectively in a highly competitive market. Our business would be harmed if we lost the services of any of our senior management team or senior relationship bankers. Mr. Sarver s involvement in outside business interests requires substantial time and attention and may adversely affect our ability to achieve our strategic plan and maintain our current growth. Adverse publicity or circumstances similar to that experienced following the arrest and subsequent acquittal of our Chief Financial Officer could generate negative publicity for us, cause reputational harm and cause our stock price to decline. A deterioration in economic conditions generally could adversely affect our business, financial condition, results of operations and prospects. Economic conditions either nationally or locally in areas in which our operations are concentrated may be less favorable than expected. Terrorist attacks and threats of war or actual war may impact all aspects of our operations, revenues, costs and stock price in unpredictable ways. We do not anticipate paying any dividends on our common stock. As a result, capital appreciation, if any, of our common stock may be your sole source of gains in the future. We may underestimate the impact of new reporting company requirements. We have limited rights to use the BankWest of Nevada mark. Risks Related to the Banking Industry We operate in a highly regulated environment; changes in laws and regulations and accounting principles may adversely affect us. Changes in interest rates could adversely affect our profitability, business and prospects. We are required to maintain an allowance for loan losses. This allowance for loan losses may have to be adjusted in the future. Any adjustment to the allowance for loan losses, whether due to regulatory changes, economic changes or other factors, may affect our financial condition and earnings.

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1212545--3/20/2006--WESTERN_ALLIANCE_BANCORPORATION