Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2018 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Jul 19, 2018
Slide 1: Earnings Call 2nd Quarter 2018
EARNINGS CALL 2nd QUARTER 2018 July 20, 2018
Slide 2: 2nd Quarter 2018 Financial Highlights
2nd Quarter 2018 | Financial Highlights ▪ Net income of $104.7 million ($0.99 per share), compared to $100.9 million ($0.96 per share) for Q1 2018, and $80.0 million ($0.76 per share) for Q2 2017 ▪ Net interest margin of 4.70%, compared to 4.60% in Q1 2018, and 4.61% in Q2 2017 ▪ Operating efficienc
Slide 3: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results $ in millions, except EPS Q2-18 Q1-18 Q2-17 Q2 2018 Highlights Net Interest Income $ 224.1 $ 214.2 $ 192.7 ▪ Net Interest Income increased Operating Non-Interest Income 14.1 12.7 10.6 $9.9 million as a result of loan Net Operating Revenue $ 238.2 $ 226.9 $ 20
Slide 4: Net Interest Drivers
Net Interest Drivers $ in billions, unless otherwise indicated Total Investments and Yield Loans and Yield Q2 2018 Highlights 5.81% 5.68% 5.72% ▪ Loan yield increased 22 basis 5.60% 5.59% points due to rising interest rates 3.15% 3.23% 5.62% across all loan types 3.05% 3.10% 3.07% © 5.49% 5.57% © 2.
Slide 5: Net Interest Income and Accretion
Net Interest Income and Accretion $ in millions Net Interest Income, NIM, and Q2 2018 Highlights Average Interest Earnings Assets $224.1 $211.0 $214.2 $201.6 ▪ NIM increased 10 basis points to 4.70% quarter- $192.7 4.73% 4.65% 4.70% over-quarter due to favorable impacts of rising 4.61% 4.60% short-t
Slide 6: Operating Expenses and Efficiency
Operating Expenses and Efficiency $ in millions Operating Expenses and Efficiency Ratio Q2 2018 Highlights © 42.3% 41.0% 41.7% 42.7% 42.1% ▪ The operating efficiency ratio decreased from 41.2% 40.0% 40.7% 42.7% in Q1 2018 to 42.1% as revenue growth outpaced expense growth ▪ Operating expenses increa
Slide 7: Operating Pre-Provision Net Revenue, Net Income, and ROA
Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions Operating Pre-Provision Net Revenue and Operating PPNR ROA Net Income and ROA 2.61% 2.57% 2.53% 2.51% 2.46% 1.99% 2.02% 1.79% 1.71% 1.71% $135.5 $122.7 $127.8 $127.6 $115.2 $100.9 $104.7 $89.3 $80.0 $82.8 Q2-17 Q3-17 Q4-17 Q1-18
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet $ in millions Q2-18 Q1-18 Q2-17 Q2 2018 Highlights Investments & Cash $ 4,196 $ 4,174 $ 3,890 ▪ Loans increased $578 million (3.7%) Loans 16,138 15,560 13,990 over prior quarter and $2.15 billion Allowance for Credit Losses (147) (145) (132) (15.4%) over prior year Other A
Slide 9: Quarter Loan Growth and Portfolio Composition
5 Quarter Loan Growth and Portfolio Composition $ in millions Highlights $2.15 Billion Year Over Year Growth $16,138 Quarter-over-quarter loan growth $15,560 $15,094 +578 driven by: +466 ¡ $14,522 +572 C&I $ 334 million $13,990 $600 3.7% ¡ +532 $469 Residential & Consumer 131 million +781 $475 Resid
Slide 10: Quarter Deposit Growth and Composition
5 Quarter Deposit Growth and Composition $ in millions $2.06 Billion Year Over Year Growth Highlights $18,088 Quarter-over-quarter deposit growth $17,355 $16,905 $16,973 +733 driven by: +382 ¡ $16,031 +874 +68 Non-Interest Bearing $ 446 million +675 $1,806 10.0% DDA $1,590 $1,622 $1,762 ¡ Savings an
Slide 11: Adversely Graded Loans and Non-Performing Assets
Adversely Graded Loans and Non-Performing Assets * $ in millions $406 $368 $379 $369 $355 $200 $141 $150 $155 $185 Adversely Graded Loans 2.12% $166 $122 2.04% 1.92% $128 $127 $157 1.85% 1.83% $55 $30 $44 $37 $34 0.32% 0.42% 0.36% 0.33% 0.29% NPAs $31 $29 $28 $30 $28 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2
Slide 12: Charge-Offs, Recoveries, ALLL, and Provision
Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs, Recoveries and Rate ALLL and ALLL to Organic Loans Ratio $145 $147 $132 $136 $140 $3.9 $2.8 $3.2 $2.3 $3.6 1.08% 1.06% 1.03% 1.02% $(2.2) $(1.3) 0.99% $(4.0) $(2.8) $(0.9) Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1
Slide 13: Capital
Capital Capital Ratios ROTCE and TBV/Share 20.5% 20.4% 13.4% 13.4% 13.3% 13.3% 13.2% 18.8% 18.4% 18.2% 10.8% 10.5% 10.3% 10.4% 10.4% $19.78 10.7% $18.86 10.5% $18.31 10.3% 9.9% 10.1% $17.53 9.8% 9.9% $16.71 9.6% 9.5% 9.4% Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Total Capital Comm
Slide 14: Management Outlook
Management Outlook ▪ Financial Position ▪ Margin ▪ Operating Leverage ▪ Asset Quality 14 14
Slide 15: Questions and Answers
Questions and Answers WA Western Alliance Bancorporation’
Slide 16: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. Examples of forward-looking stateme
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