Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q3 2015 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Oct 15, 2015
Slide 1: Western Alliance Bancorporation 3rd Quarter Earnings Call
(NYSE: WAL) October 16, 2015 Western Alliance Bancorporation 3rd Quarter Earnings Call
Slide 2: Financial Highlights
2 Financial Highlights Q3 2015 Highlights q Q3 2015 net income of $59.1 million and EPS of $0.58, compared to $34.7 million and $0.39 in prior quarter and $40.9 million and $0.46 in prior year q Net income and earnings per share includes a total benefit of $0.05 per share from net unrealized gains o
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results Q3 2015 Highlights q Net Interest Income rose $28.7 million, including $25.5 million from Bridge q Non-Interest Income increased due to service charges, FX, SBA loan sales, warrant, and other income from Bridge q Operating Non-Interest Expense increased $17
Slide 4: Net Interest Drivers
4 Cash and Due from Banks Net Interest Drivers Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 $259 $164 $492 $700 $325 $ in billions, unless otherwise indicated Loans and Yields Total Investments and Yield Interest Bearing Deposits and Cost of Funds $ in millions Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 3.11% 3.07% 3.09% 3.06%
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Q3 2015 Highlights q NIM increased as a result of higher yielding Bridge loans and acquired loan accretion q Adjusted NIM for acquired loan accretion was 4.37% for the quarter, compared to reported NIM of 4.59% Net Interest Income and NIM Acquired Lo
Slide 6: Operating Expenses and Efficiency
6 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 $6.5 $7.1 $6.9 $7.2 $9.3 $5.4 $5.8 $7.1 $7.3 $8.4 $7.6 $10.8 $7.7 $7.7 $10.8 Operating Expenses and Efficiency $ in millions Q3 2015 Highlights q The efficiency ratio increased to 46.8% primarily because of acquiring the higher cost structure at Bridge q Compensation
Slide 7: Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA
7 Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA Pre-Tax, Pre-Provision Operating Income and ROA Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 $51.9 $52.0 $54.5 $59.7 $73.7 2.06% 2.00% 2.03% 2.14% 2.16% Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 $40.9 $40.4 $40.2 $34.7 $59.1 1.63% 1.56% 1.49% 1.24% 1.73% Both Pre-
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions q Total Loans increased $427 million over last quarter as a result of organic growth q Deposits increased $203 million over last quarter as a result of organic growth q Borrowings increased due to overnight FHLB advances to fund loan growth q Tangible Book
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition Commercial & Industrial CRE, Non- Owner Occupied CRE, Owner Occupied Residential and Consumer Construction & Land Q3 2015 Highlights q $427 million quarter-over- quarter loan growth driven by: - C&I $199 million - Construction & Land $119 million - CRE, Owner
Slide 10: Deposit Growth and Composition
10 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 $2,247 $2,288 $2,657 $3,924 $4,077 $809 $855 $937 $1,001 $1,024 $3,685 $3,870 $4,121 $4,734 $4,673 $1,957 $1,918 $1,947 $1,747 $1,836 Deposit Growth and Composition NOW CDs Non-Int Bearing DDA $8,698 $8,931 $9,662 $11,407 $11,610 Growth: +233 +731 +1,745 +203 Q3 2015
Slide 11: Adversely Graded Loans and Non-Performing Assets
11 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 $43 $46 $53 $50 $55 $75 $68 $61 $59 $31 $86 $72 $60 $63 $72 $78 $78 $84 $83 $106 Adversely Graded Loans and Non-Performing Assets Organic Acquired * NPA’s Adversely Graded Loans $255 $103 Accruing TDRs total $81 million as of 9/30/2015 $2
Slide 12: Charge-Offs, Recoveries, and Provision
12 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Charge-Offs, Recoveries, and Provision Gross Charge Offs and Recoveries Net Recoveries and Rate Provision for Credit Losses and ALL Ratios Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 1.38% 1.31% 1.27% 1.11% 1.09% 1.54% 1.45% 1.39% 1.35% 1.32% Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 (0.15)%
Slide 13: Allowance for Credit Losses Adjustments
13 Adjusted for Effect of No Reserve for Acquired Loans Reported Less: Acquired Loans* Adjusted Allowance for Credit Losses $ 117 $ 117 Total Loans Held for Investment 10,764 1,828 8,936 Ratio 1.09% 1.31% Adjusted for Effect of Acquired Loans Booked at Discount Reported Plus: Credit Discount* Adjust
Slide 14: ROTCE and TBV/Share; Capital Ratios
14 ROTCE TBV/Share Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 19.9% 18.2% 17.2% 14.1% 20.1% $9.53 $10.21 $10.72 $11.25 $11.86 Capital 13% 12% 11% 10% 9% 8% 7% Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 8.2% 8.6% 8.5% 8.7% 8.9% 9.0% 9.3% 9.0% 9.1% 9.1% 10.1% 9.7% 9.8% 10.0% 9.9% 12.2% 11.7% 11.3% 12.2% 12.1% Capital Ratios To
Slide 15: Outlook 4th Quarter 2015
15 Outlook 4th Quarter 2015 q Bridge Integration q Loan and Deposit Growth q Interest Margin q Operating Efficiency q Asset Quality
Slide 16: Forward-Looking Statements
16 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 state
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