Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q3 2017 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Oct 19, 2017
Slide 1: Earnings Call 3rd Quarter 2017
Earnings Call 3rd Quarter 2017 October 20, 2017
Slide 2: Q3 2017 Financial Highlights
2 Financial Highlights ▪ Net income of $82.9 million ($0.79 per share), compared to $80.0 million ($0.76 per share) for Q2 2017, and $67.1 million ($0.64 per share) for Q3 2016, inclusive of $0.02 in acquisition / restructure expense ▪ Net interest margin of 4.65%, compared to 4.61% in Q2 2017, and
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results $ in millions, except EPS Q3 2017 Highlights ▪ Net Interest Income increased primarily as a result of higher yields on loans from rising interest rates and continued loan growth ▪ Operating Non-Interest Expense was relatively flat from Q2 2017 ▪ Provision f
Slide 4: Net Interest Drivers
4 Net Interest Drivers $ in billions, unless otherwise indicated Interest Bearing Deposits and Cost of Funds Loans and Yield Deposits, Borrowings, and Cost of Liability Funding Q3 2017 Highlights ▪ Loan yields increased, reflecting rising interest rates ▪ Cost of funds increased 7 basis points due t
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Q3 2017 Highlights ▪ NIM increased 4 basis points to 4.65% quarter-over- quarter as a result of an increase in yields from loans and investment securities, as well as an increase in acquired loan accretion Net Interest Income, NIM, and Average Intere
Slide 6: Operating Expenses and Efficiency
6 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $49.5 $49.7 $51.6 $52.2 $52.7 $10.0 $10.4 $10.1 $10.5 $11.0 $11.0 $12.1 $14.1 $12.9 $10.6 $11.9 $10.5 $12.5 $12.5 $14.5 Operating Expenses and Efficiency $ in millions Q3 2017 Highlights ▪ The operating efficiency ratio decreased from 41.2% in Q2 2017 to 40.0%, as rev
Slide 7: Operating PPNR, Net Income, and ROA
7 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $67.1 $69.8 $73.4 $80.0 $82.9 1.58% 1.63% 1.69% 1.71% 1.71% Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions Operating Pre-Provision Net Revenue and Operating PPNR ROA Net Income and ROA Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $100.8 $103.1 $100.9 $115.2 $
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions ▪ Loans increased 3.8% over prior quarter and 11.4% over prior year ▪ Deposits increased 5.5% over prior quarter and 17.0% over prior year ▪ Loan to Deposit Ratio of 85.9%, compared to 87.3% in prior quarter and 90.2% in prior year ▪ Shareholders' Equity in
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition $ in millions Q3 2017 Highlights ▪ Quarter-over-quarter loan growth driven by: ◦ C&I $417 million ◦ Construction & Land $64 million ◦ Residential $45 million ▪ Year-over-year loan growth driven by: ◦ C&I $1.02 billion ◦ Construction & Land $286 million ◦ Resid
Slide 10: Deposit Growth and Composition
10 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $5,625 $5,633 $6,114 $6,859 $7,609 $1,257 $1,347 $1,449 $1,481 $1,406 $5,969 $6,121 $6,254 $6,104 $6,300 $1,592 $1,449 $1,539 $1,587 $1,590 Deposit Growth and Composition $ in millions Q3 2017 Highlights ▪ Quarter-over-quarter deposit growth driven by: ◦ Non-Interest
Slide 11: Adversely Graded Loans and Non-Performing Assets
11 Adversely Graded Assets to Total Assets NPAs to Total Assets Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 2.03% 2.07% 2.25% 2.04% 2.12% 0.53% 0.51% 0.44% 0.32% 0.42% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $50 $48 $45 $31 $29 $41 $40 $34 $30 $55 $1
Slide 12: Charge-Offs, Recoveries, ALLL, and Provision
12 Gross Charge-Offs Recoveries Net Charge-Off (Recovery) Rate Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs, Recoveries and Rate Provision for Credit Losses ALLL ALLL/Total Organic Loans Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 $123 $125 $128 $132 $
Slide 13: Capital Ratios and ROTCE and TBV/Share
13 ROTCE TBV/Share Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 17.5% 17.6% 17.8% 18.4% 18.2% $14.84 $15.17 $15.86 $16.71 $17.53 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 13.1% 13.2% 13.1% 13.3% 13.3% 9.8% 10.0% 10.0% 10.3% 10.4% 9.6% 9.9% 10.2%
Slide 14: Management Outlook
14 Management Outlook 14 ▪ Financial Position ▪ Revenue ▪ Expenses ▪ Asset Quality
Slide 15: Questions & Answers
Western Alliance Bancorporation Questions & Answers
Slide 16: Forward-Looking Statements
16 Forward-Looking Statements 16 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 s
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