Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q4 2020 Earnings Presentation
17 slides from Western Alliance Bancorporation's earnings presentation, Jan 21, 2021
Slide 1: Earnings Call 4th Quarter 2020
EARNINGS CALL 4th QUARTER 2020 January 22, 2020
Slide 2: Forward-looking statements
2 2 This release 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 statements include, among others, st
Slide 3: 4th Quarter 2020 Financial Highlights
3 33 4th Quarter 2020 | Financial Highlights Dollars in millions, except EPS 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Upon adoption of CECL on January 1, 2020, Provision for Credit Losses has been modified to also include amounts related to unfunded loan commitme
Slide 4: Quarterly Consolidated Financial Results
4 4 Dollars in millions, except EPS Quarterly Consolidated Financial Results 4 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Upon adoption of CECL on January 1, 2020, Provision for Credit Losses has been modified to also include amounts related to unfunded loan commit
Slide 5: Annual Consolidated Financial Results
5 5 Dollars in millions, except EPS Annual Consolidated Financial Results 5 2020 2019 Interest Income $ 1,261.8 $ 1,225.0 Interest Expense (94.9) (184.6) Net Interest Income $ 1,166.9 $ 1,040.4 Investment Related Income and Gains 16.7 16.5 BOLI 10.2 3.9) Other 43.9 44.7 Non-Interest Income $ 70.8 $
Slide 6: Net Interest Drivers
6 6 $14.3 $14.9 $15.3 $15.8 $18.5 $8.5 $9.9 $12.2 $13.0 $13.4 0.75% 0.64% 0.30% 0.28% 0.22% -3.50% -3.00% -2.50% -2.00% -1.50% -1.00% -0.50% 0.00% 0.50% 1.00% 1.50% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 $14.3 $14.9 $15.3 $15.8 $18.5 1.08% 0.90%
Slide 7: Net Interest Income, NIM, and Average Interest Earning Assets
7 7 Dollars in millions Net Interest Income 7 Net Interest Income, NIM, and Average Interest Earning Assets $13.9 $3.3 $11.0 $6.6 $4.1 $2.0 $1.5$0.0 $5.0 $10.0 $15.0 Q2-20 Q3-20 Q4-20 Q1-21E Q2-21E Q3-21E Q4-21E Current Assumptions $272.0 $269.0 $298.4 $284.7 $314.8 4.39% 4.22% 4.19% 3.71% 3.84% 4.2
Slide 8: Expenses and Efficiency
8 8 Expenses and Efficiency1 8 Dollars in millions Expenses and Efficiency Ratio 8 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. Q4 2020 Highlights • Efficiency ratio1 improved 150bps to 38.2% compared to the prior quarter and 590bps from the same period last year • Lowe
Slide 9: Pre-Provision Net Revenue, Net Income, and ROA
9 9 Dollars in millions Pre-Provision Net Revenue1, Net Income, and ROA 9 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. $158.3 $153.6 $204.9 $181.2 $206.4 $128.1 $83.9 $93.3 $135.8 $193.6 2.37% 2.24% 2.69% 2.22% 2.37% 1.92% 1.22% 1.22% 1.66% 2.22% -2.50% -1.50% -0.50% 0.
Slide 10: Consolidated Balance Sheet
10 10 Q4 2020 Highlights • Loans increased $1.0 billion, or 4.0%, over prior quarter and $5.9 billion, or 28.1%, over prior year • Deposits increased $3.1 billion, or 10.7%, over prior quarter and $9.1 billion, or 40.1%, over prior year • Shareholders' Equity increased $190 million over prior quarte
Slide 11: Five Quarter Loan Growth and Composition
11 11 $9.4 $11.2 $12.8 $13.7 $14.3 $2.3 $2.3 $2.3 $2.2 $2.2$5.2 $5.3 $5.3 $5.4 $5.7 $2.0 $2.1 $2.2 $2.3 $2.4 $2.2 $2.3 $2.5 $2.4 $2.5 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Commercial & Industrial CRE, Owner Occupied CRE, Non-Owner Occupied Construction & Land Residential & Consumer Highlights $21.1 +$1.0 Do
Slide 12: Five Quarter Deposit Growth and Composition
12 12 $24.8 +$2.0 Dollars in billions, unless otherwise indicated Five Quarter Deposit Growth and Composition Highlights 12 Total Deposits Qtr. Change $22.8 +$0.4 Quarter-over-quarter deposit growth of $3.1 billion driven by (in millions): Savings and MMDA $ 1,839 Interest-Bearing DDA 842 Non-Intere
Slide 13: Asset Quality
13 13 $180 $104 $396 $477 $451 0.86% 0.45% 1.58% 1.83% 1.67% -2.00% -1.00% 0.00% 1.00% 2.00% $0 $100 $200 $300 $400 $500 $600 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Special Mention Loans SM to Funded Loans $14 $11 $9 $9 $2 $56 $86 $140 $146 $115 $91 $150 $149 $171 $107 $0 $50 $100 $150 $200 $250 $300 $350 Q4
Slide 14: Credit Losses and ACL Ratios
14 14 0.84% 1.14% 1.39% 1.37% 1.17% 120% 112% 120% 112% 142% 50% 70% 90% 110% 130% 150% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Total Loan ACL / Funded Loans Total Loan ACL / Non-Performing Loans + Classified Loans $2.1 $0.1 $5.7 $8.8 $5.7 -$6.0 -$4.0 -$2.0 $0.0 $2.0 $4.0 $
Slide 15: Capital Accumulation and Robust Capital Levels
15 15 203% 218% 61% 81% 2014 2015 2016 2017 2018 2019 MRQ WAL WAL with Dividends Added Back Peer Avg Peer Avg with Dividends Added Back Capital Accumulation 15 1) Refer to slide 2 for further discussion of Non-GAAP financial measures 2) MRQ is Q4-20 for WAL and Q3-20 for WAL Peers Note: Peers consis
Slide 16: Management Outlook
16 16 Management Outlook 16 • Balance Sheet Growth • Interest Margin • Pre-Provision Net Revenue • Asset Quality • Capital and Liquidity
Slide 17: Questions and Answers
WA Western Alliance Bancorporation” Questions and Answers 17
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