Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2015 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Jul 27, 2015
Slide 1: Western Alliance Bancorporation 2nd Quarter Earnings Call
(NYSE: WAL) July 27, 2015 Western Alliance Bancorporation 2nd Quarter Earnings Call
Slide 2: Financial Highlights
2 Financial Highlights Q2 2015 Highlights q Completed acquisition of Bridge Capital Holdings on June 30, 2015, increasing total assets, gross loans and total deposits by $2.20 billion, $1.45 billion and $1.74 billion, respectively q Q2 2015 net income of $34.7 million and EPS of $0.39 q Operating ea
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results Q2 2015 Highlights q Net Interest Income rose $5.6 million compared to prior quarter driven by loan growth and one more day in the quarter. Net Interest Income rose $14.8 million from Q2-14 primarily due to loan growth q Operating Non-Interest Expense incre
Slide 4: Net Interest Drivers
4 Cash and Due from Banks Net Interest Drivers Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 $379 $259 $164 $492 $700 $ in billions, unless otherwise indicated Loans and Yield * Total Investments and Yield Interest Bearing Deposits and Cost of Funds * $ in millions Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 3.08% 3.11% 3.07% 3.
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Note: Disposition Accretion is the recognition of incremental credit and interest rate marks upon sale, disposition or transfer to OREO of a PCI loan; Normal Accretion includes the scheduled amortization of interest rate marks of PCI loans over the e
Slide 6: Operating Expenses and Efficiency
6 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 $6.4 $6.5 $7.1 $6.9 $7.2 $6.8 $5.4 $5.8 $7.1 $7.3 $7.0 $7.6 $10.8 $7.7 $7.7 Operating Expenses and Efficiency $ in millions Q2 2015 Highlights q Efficiency ratio improved to a record 44.6% due to a 15.1% increase in operating revenue versus a 4.9% increase in operatin
Slide 7: Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA
7 Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA $ in millions Pre-Tax, Pre-Provision Operating Income and ROA Net Income and ROA Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 $47.4 $51.8 $52.0 $54.5 $59.9 1.95% 2.06% 2.00% 2.03% 2.14% Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 $35.5 $40.9 $40.4 $40.2 $34.7 1.46%
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions q Total loans includes Bridge loans of $1.45 billion, recorded net of credit and interest rate discounts of $25 million, with an average life of 4.25 years q Other assets includes $260 million of goodwill and a $15 million core deposit intangible asset (10-
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition $ in millions Commercial & Industrial CRE, Non- Owner Occupied CRE, Owner Occupied Residential and Consumer Construction & Land Q2 2015 Highlights q Bridge additions are as follows: - Residential & Consumer: $26 million, - Construction & Land: $99 million, - C
Slide 10: Deposit Growth and Composition
10 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 $2,279 $2,247 $2,288 $2,657 $3,925 $795 $809 $855 $937 $1,001 $3,637 $3,685 $3,870 $4,121 $4,734$1,759 $1,957 $1,918 $1,947 $1,747 Deposit Growth and Composition $ in millions NOW CDs Non-Int Bearing DDA $8,470 $8,698 $8,931 $9,662 $11,407 Growth: +228 +233 +731 +1,7
Slide 11: Adversely Graded Loans and Non-Performing Assets
11 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 $51 $43 $46 $53 $50 $64 $75 $68 $61 $59 $101 $86 $72 $60 $63 $72 $78 $78 $84 $83 Adversely Graded Loans and Non-Performing Assets Organic Acquired * NPA’s Adversely Graded Loans $258 $96 Accruing TDRs total $80 million as of 6/30/2015 $28
Slide 12: Charge-Offs, Recoveries, and Provision
12 Charge-Offs, Recoveries, and Provision Q2 2015 HighlightsGross Charge Offs and Recoveries Net Recoveries and Rate Provision for Credit Losses and ALLL q Recoveries of $5.0 million exceeded gross charge-offs of $2.0 million, resulting in net recoveries of $3.0 million q Annualized net recovery rat
Slide 13: Allowance for Credit Losses at 6/30/2015
13 Adjusted for Effect of No Reserve for Acquired Loans Reported Less: Acquired Loans* Adjusted Allowance for Credit Losses $ 115 $ 115 Total Loans 10,321 1,723 8,598 Ratio 1.11% 1.34% Adjusted for Effect of Acquired Loans Booked at Discount Reported Plus: Credit Discount* Adjusted Allowance for Cre
Slide 14: Capital Ratios
14 Capital Ratios Q2 2015 Highlights q Tangible common equity improved 82 basis points year-over-year to 8.7%, even though total assets increased 34.4% q During Q2 2015, Western Alliance Bank issued $150 million of subordinated debt, significantly improving its total capital ratio 13% 12% 11% 10% 9%
Slide 15: Outlook 3rd Quarter 2015
15 Outlook 3rd Quarter 2015 q Bridge Merger 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
Western Alliance Bancorporation — Q2 2015 Earnings Presentation on 6ix