Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2012 Earnings Presentation
19 slides from Western Alliance Bancorporation's earnings presentation, Jul 19, 2012
Slide 1: 2nd Quarter 2012 Earnings Call
Western Alliance Bancorporation (NYSE: WAL) July 20, 2012 2 nd Quarter 2012 Earnings Call
Slide 2: 2nd Quarter 2012 Financial Highlights
2nd Quarter 2012 Financial Highlights Sustained Earning Power– Net income of $14.0 million, 24% over Q1 2012 and 126% over Q2 2011– Net interest income of $70.8 million, up over $7.5 million or 11.9% from Q2 2011– Net interest margin of 4.46%, compared to 4.53% in prior quarter and 4.34% last year–
Slide 3: Loans: Q2 2012 Loan Growth of $239 Million
3 Loans Q2 2012 Loan Growth of $239 Million Loan Portfolio Composition, Q2 11 through Q2 12 $1,030 $1,153 $1,337 $1,437 $1,574 $1,285 $1,225 $1,252 $1,290 $1,311 $1,164 $1,233 $1,294 $1,355 $1,433 $537 $511 $516 $493 $486 $396 $404 $382 $348 $361 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Q2-11 Q3-11 Q4-
Slide 4: SBLF Growth Above Baseline
4 SBLF Growth Above Baseline $4 5% $15 5% $87 3.7% $169 1% $190 1% $0 $50 $100 $150 $200 $151 million threshold for 1% Dividend Rate (10% Growth) Growth Above Baseline ($ millions) and Dividend Rate* 2Q11 3Q11 4Q11 1Q12 2Q12 * The effective date of the dividend rate is two quarters in the future
Slide 5: Q2 2012 Loan Growth
Q2 2012 Loan Growth 2nd Quarter net increase in Total Loans of $239 million $137 $76 $20-$7 $13-$75-$25 $25 $75 $125 $175 $225 Q2 Change by Loan Type-$4 $12 $57 $186-$9-$41 $36 $2 $0-$75-$25 $25 $75 $125 $175 $225 1 2 3 4 5 6 7 8 9 Q2 Change by Loan Grade Pass Watch Classified C&I CRE Non-Owner Occu
Slide 6: Deposits: Q2 2012 Deposit Growth of $102 Million
6 Deposits Q2 2012 Deposit Growth of $102 Million $1,517 $1,519 $1,558 $1,758 $1,842 $2,105 $2,152 $2,133 $2,224 $2,438 $457 $466 $482 $527 $541 $1,510 $1,496 $1,485 $1,390 $1,180 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Q2 - 11 Q3 - 11 Q4 - 11 Q1-12 Q2-12 Deposit Composition, Q2 11 throu
Slide 7: Balance Sheet Growth from IPO to Q2 2012
7 Balance Sheet Growth from IPO to Q2 2012 $1,453 $5,165 $2,190 $6,001 $2,621 $7,164 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $ in millions WAL has a strong long-term growth profile, despite sluggish performance during the recession Loan Growth $3.7 Billion CAGR of 19.9% Deposit Growth $3
Slide 8: Torrey Pines Bank
8 Torrey Pines Bank (1) Reported on a tax-equivalent basis. (2) Operating expenses exclude goodwill impairment, merger-related expenses and gains/losses on sale of repossessed assets. (3) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment sec
Slide 9: Western Alliance Bank
4.34% 4.33% 4.54% 4.47% 4.46% 3.6% 3.8% 4.0% 4.2% 4.4% 4.6% 4.8% 5.0% $16 $18 $20 $22 $24 $26Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 $11.8 $11.9 $11.7 $11.5 $11.7 54.0% 53.3% 47.8% 46.9% 44.2% 42% 46% 50% 54% 58% $6 $8 $10 $12 $14 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Western Alliance Bank (1) Reported on a tax-equiv
Slide 10: Bank of Nevada
$26.9 $26.3 $27.7 $27.8 $27.5 4.29% 4.04% 4.31% 4.36% 4.32% 3.9%4.1%4.3%4.5%$25$26$27$28$29Q2-11Q3-11Q4-11Q1-12Q2-12$17.9 $17.8 $17.3 $17.1 $17.4 56.9% 58.9% 54.0% 54.3% 54.4% 50%52%54%56%58%60%62%$16$17$18$19Q2-11Q3-11Q4-11Q1-12Q2-12 Bank of Nevada (1) Reported on a tax-equivalent basis. (2) Operat
Slide 11: WAL Consolidated Q2 2012 Results
WAL Consolidated Q2 2012 Results (1) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment securities and repossessed assets, and merger related expenses . ($ in millions, except EPS) Q2-12 Q1-12 Q2-11 Net Interest Income 70.8 70.1 63.3 Operatin
Slide 12: WAL Consolidated
$63.3 $64.6 $68.7 $70.1 $70.8 4.34% 4.29% 4.51% 4.53% 4.46% 3.8%4.0%4.2%4.4%4.6%4.8%$55$60$65$70$75Q2-11Q3-11Q4-11Q1-12Q2-12$42.5 $42.4 $42.8 $44.2 $44.5 60.2% 59.6% 56.5% 57.0% 56.4% 52%54%56%58%60%62%64%$38$40$42$44$46Q2-11Q3-11Q4-11Q1-12Q2-12WAL Consolidated (1) Reported on a tax-equivalent basis
Slide 13: Net Interest Margin Drivers
13 $0.5 $0.3 $0.2 $0.2 $0.2 $0.0 $0.1 $0.2 $0.3 $0.4 $0.5 $0.6 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 $1.1 $1.3 $1.5 $1.4 $1.4 2.84% 2.91% 3.01% 3.13% 3.15% 2.5% 2.7% 2.9% 3.1% 3.3% 3.5% $1.0 $1.1 $1.2 $1.3 $1.4 $1.5 $1.6 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Net Interest Margin Drivers Cash Loans $ in billions Yiel
Slide 14: Problem Loans & Repossessed Assets
$190 $168 $147 $133 $92 $0 $125 $250 $375 $500 $625 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Repossessed Assets Non-Performing Loans Classifed Accruing Loans Watch Loans $482 $441 $416 $410 Problem Loans & Repossessed Assets(1) (1) Classified Accruing Loans are reported net of loans already counted as NPAs. ($
Slide 15: Q2 2012 OREO Summary
Q2 2012 OREO Summary 69% 10% 7% 6% 4% 4% Property Type Land Office Industrial SFH Other Retail 70% 30% Appraisal Status OREO with current appraisal OREO to be appraised in Q3-12 (in millions)OREO Valuation at end of Q1 12 $80.7 Q2‐12 Changes: Additions to OREO 4.0 Sales of OREO ‐7.2 Valuation Adjust
Slide 16: Capital and Parent Liquidity
16 Capital and Parent Liquidity(1) (1) Capital ratios are considered estimates until Call Reports are filed. (2) Tier 1 Leverage is a non-GAAP ratio. Tier 1 Leverage(2) Q2 12 Bank of Nevada 10.2% Western Alliance Bank 8.7% Torrey Pines Bank 8.8% WAL 9.7% Basel III Capital 2013 Implementation Rules T
Slide 17: Outlook 2nd Half 2012
17 Loan and deposit growth Net interest margin Efficiency ratio Asset quality Branch strategy Outlook 2nd Half 2012
Slide 18: Question & Answer
18 Western Alliance Bancorporation Question & Answer
Slide 19: Forward-looking statements
19 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. The forward-looking statements contained herein reflect our
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