Western Alliance Bancorporation (NYSE: WAL) reported a net loss of net loss of $86.5 million, or $2.33 per share for the first quarter ended March 31, 2009, compared to net income of $4.1 million, or $0.14 per share for the a year earlier.
The company said 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 comprising 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.
Western Alliance said that despite the credit downgrade, the its holdings of Bank of America rank pari passu with the preferred stock issued by Bank of America to the United States Treasury under the TARP program.
