Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2014 Earnings Presentation
21 slides from Western Alliance Bancorporation's earnings presentation, Apr 22, 2014
Slide 1: Western Alliance Bancorporation 1st Quarter Earnings Call
(NYSE: WAL) April 22, 2014 Western Alliance Bancorporation 1st Quarter Earnings Call
Slide 2: Q1 2014 Financial Highlights
Q1 2014 Financial Highlights Q1 2014 net income of $31.1 million, EPS of $0.35, net operating revenue* of $96.5 million Loan growth of $307 million to $7.11 billion, deposit growth of $311 million to $8.15 billion, and asset growth of $439 million to $9.75 billion Non-core items during Q1 14 include
Slide 3: Loan Growth and Portfolio Composition
$2,085 $2,174 $2,235 $2,478 $2,723 $1,414 $1,550 $1,551 $1,562 $1,606 $1,532 $1,833 $1,856 $1,832 $1,842 $443 $438 $414 $393 $383 $381 $417 $460 $536 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Loan Growth and Portfolio Composition $ in millions Commercial & Industrial CRE, Owner Occupied CRE, Non-Owner Occupied
Slide 4: Deposit Growth and Composition
Deposit Growth and Composition $ in millions Savings & MMDA NOW CDs Non-Int Bearing DDA $1,930 $1,920 $1,972 $2,200 $2,094 $2,827 $2,945 $3,050 $3,310 $3,672 $620 $631 $674 $710 $750 $1,358 $1,505 $1,579 $1,618 $1,633 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 $6,735 $7,001 $7,275 $7,838 $8,149 Growth: +266 +274
Slide 5: Earning Assets and Liabilities
Earning Assets and Liabilities $1,652 $11,325 3.15% $210 $572 1.09% $6,893 $86,804 5.27% Balance $ in millions, Interest $ in thousands 5 Earning Asset Composition and Yield Liability Composition and Cost $765 $384 0.20% $3,452 $2,562 0.30% $1,620 $1,719 0.42% $507 $3,259 2.57% $2,054 $0 0.00% Loans
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet $ in millions Total assets increased 19.2%, or $1.6 billion year over year Allowance for Credit Losses rose from $96 million to $104 million, as loans grew Tangible Book Value/Share increased 18.2% to $8.32 6 Highlights Q1‐14 Q4‐13 Q1‐13 Investments & Cash 2,137 $ 1,995 $
Slide 7: Consolidated Financial Results Highlights
Consolidated Financial Results Highlights Debt valuation loss of ($1.3) million, partially offset by gains on sale of securities of $0.4 million ($3.5) million increase in provision for credit losses as a result of loan growth OREO gains of $2.5 million, primarily resulting from sale of two properti
Slide 8: Segment Reporting: Loans and Deposits
Arizona $2.17 27.5% California $1.87 23.7% Nevada $3.02 38.2% Specialty Finance* $0.84 10.6% Segment Reporting: Loans and Deposits Arizona $2.03 28.9% California $1.66 23.6% Nevada $1.72 24.5% Specialty Finance* $1.62 23.0% 8 Deposits by Segment - $8.15 billion Loans by Segment - $7.11 billion * Spe
Slide 9: Segment Reporting: Revenue and Pretax Income
Arizona $12.5 27.9% California $10.3 23.0% Nevada $16.5 36.8% Specialty Finance $5.5 12.3% Segment Reporting: Revenue and Pretax Income Arizona $27.4 28.3% California $24.0 24.8% Nevada $30.9 32.0% Specialty Finance $14.4 14.9% Pretax Income by Segment - $42.4 million 9 Revenue* by Segment - $96.5 m
Slide 10: Net Interest Income and Operating Expenses
$76.2 $82.2 $84.6 $90.0 $90.8 4.36% 4.36% 4.41% 4.44% 4.41% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net Interest Income and Operating Expenses $ in millions Note: Net Interest Margin is reported on a tax-equivalent basis and excludes the interest income and loan balances of held for sale loans Q1 2014 Highlig
Slide 11: Net Interest Drivers
$5.8 $6.4 $6.5 $6.8 $7.1 5.42% 5.40% 5.44% 5.48% 5.27% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 $422 $249 $381 $306 $355 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 $1.3 $1.3 $1.4 $1.7 $1.7 3.21% 2.92% 3.01% 3.11% 3.15% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 $4.8 $5.1 $5.3 $5.6 $6.1 0.32% 0.32% 0.33% 0.33% 0.32% Q1-13 Q2-13 Q3-13 Q4
Slide 12: Pre Tax Pre Provision Income, Net Income, and ROA
Pre Pre Income, Net Income, and ROA $ in millions $35.1 $40.1 $42.1 $43.8 $44.4 1.80% 1.92% 1.94% 1.91% 1.92% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Note: Pre Tax Pre Provision Income excludes gains/losses on repossessed assets, debt valuation adjustments and securities gains, merger/restructure expenses, an
Slide 13: Charge-Offs and Provision
$5.4 $2.7 -$1.5 $2.1 -$0.3 $2.7 $3.1 $4.8 $2.4 $2.4 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Recoveries Net Charge Offs $5.4 $2.7 -$1.5 $2.1 -$0.3 0.38% 0.17% -0.10% 0.13% -0.02% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Net Charge Offs Net Charge-Off Rate Charge-Offs and Provision $5.4 $3.5 $0.0 $4.3 $3.5 Q1 2014 Highlig
Slide 14: Adversely Graded Loans and Non-Performing Assets
Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 $75 $69 $68 $56 48 $94 $82 $75 $74 70 $84 $71 $78 $79 85 $122 $115 $103 $93 91 Q1‐13 Q2‐13 Q3‐13 Q4‐13 Q1‐14 Adversely Graded Loans and Non-Performing Assets $ in millions Q1‐13 Q2‐13 Q3‐13 Q4‐13 Q1‐14 OREO Non-Performing Loans Classified Accruing Loans Special Mention
Slide 15: Allowance for Credit Losses at 3/31/14
Reported Less: Acquired Loans* Adjusted Allowance for Loan Losses $104 $104 Total Loans $7,108 $363 $6,745 Ratio 1.46% 1.54% Reported Plus: Credit Discount* Adjusted Allowance for Loan Losses $104 $22 $126 Total Loans $7,108 $22 $7,130 Ratio 1.46% 1.77% * Western Liberty and Centennial acquisitions
Slide 16: Charge-Offs by Origination Vintage 2000-2014
$5.0 $15.2 $21.3 $70.7 $156.3 $296.2 $288.9 $445.2 $377.2 $272.1 $400.0 $721.0 $1,340.9 $2,030.9 $653.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $112.1 outstanding balances (1.6 % of total) $1,563.9 outstanding balances (22.1% of total) $5,417.9 outstanding balances
Slide 17: Regulatory Ratios and Basel III Estimated Capital
12.6% 12.0% 12.5% 12.6% 12.4% 8.6% 8.3% 8.8% 8.9% 8.8% 11.3% 10.8% 11.2% 11.4% 11.1% 10.1% 9.9% 10.0% 9.8% 9.9% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Total RBC Tier 1 Common Tier 1 RBC Tier 1 Leverage Capital Q1 2013 – Q1 2014 Regulatory Ratios Basel III (2015) Estimated Capital $ in millions 17 Tangible Co
Slide 18: Tangible Book Value and ROTCE
Tangible Book Value and ROTCE Q1 2013 – Q1 2014 $7.04 $7.26 $7.57 $7.90 $8.32 13.9% 16.5% 17.1% 17.2% 17.6% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 TBV/Share ROTCE 18 * * * After deducting for certain non-core items
Slide 19: Outlook 2nd Quarter 2014
Outlook 2nd Quarter 2014 19 Loan and Deposit Growth Interest Margin Operational Efficiency Asset Quality
Slide 20: Question & Answer
Question & Answer 2 a=
Slide 21: 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 statemen
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