Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2019 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Apr 22, 2019
Slide 1: Earnings Call 1st Quarter 2019
EARNINGS CALL 1st QUARTER 2019 April 23, 2019
Slide 2: 1st Quarter 2019 Financial Highlights
1st Quarter 2019 | Financial Highlights • Net income of $120.8 million ($1.16 per share), compared to $119.1 million ($1.13 per share) for Q4 2018, and $100.9 million ($0.96 per share) for Q1 2018 • Total loans of $18.12 billion, up $406 million from prior quarter • Total deposits of $20.21 billion,
Slide 3: Quarterly Consolidated Financial Results
Quarterly Consolidated Financial Results $ in millions, except EPS Q1 2019 Highlights Q1-19 Q4-18 Q1-18 Interest Income $ 291.2 $ 282.0 $ 234.7 • Net Interest Income increased Interest Expense (43.8) (38.5) (20.5) $3.8 million primarily as a result of loan growth, partially offset by Net Interest In
Slide 4: Net Interest Drivers
Net Interest Drivers1 $ in billions, unless otherwise indicated Total Investments and Yield Loans and Yield Q1 2019 Highlights 6.02% • Loan yields increased 10 5.83% 5.86% 5.92% basis points due to rising 3.46% 3.47% 5.67% 3.24% interest rates across most 3.11% 3.21% loan types $17.7 $18.1 $15.6 $16
Slide 5: Net Interest Income and Accretion
Net Interest Income and Accretion $ in millions Net Interest Income, NIM1, and Q1 2019 Highlights Average Interest Earning Assets • NIM increased 3 basis points to 4.71% quarter- $247.3 $234.0 $243.5 over-quarter $214.2 $224.1 4.66% 4.71% 4.68% 4.68% 4.71% • Non-PCI accretion decreased $2.2 million
Slide 6: Operating Expenses and Efficiency
Operating Expenses and Efficiency $ in millions Operating Expenses and Efficiency Ratio Q1 2019 Highlights 42.7% • The operating efficiency ratio increased 90 42.1% 41.5% 41.5% 42.4% basis points to 42.4% compared to the prior quarter primarily due to seasonal compensation costs, and decreased 30 ba
Slide 7: Operating Pre-Provision Net Revenue, Net Income, and ROA
Operating Pre-Provision Net Revenue, Net Income, and ROA1 $ in millions Highlights • Return on assets continued its upward trend, increasing 1 basis 2.55% 2.62% 2.62% 2.63% 2.58% point from the prior quarter and 10 basis points from Q1-18 2.11% 2.12% 2.02% 2.02% 2.05% • Operating PPNR ROA decreased
Slide 8: Consolidated Balance Sheet
Consolidated Balance Sheet $ in millions Q1-19 Q4-18 Q1-18 Q1 2019 Highlights Investments & Cash $ 4,525 $ 4,260 $ 4,174 • Loans increased $406 million Loans 18,117 17,711 15,560 (2.3%) over prior quarter and $2.56 Allowance for Credit Losses (155) (153) (145) billion (16.4%) over prior year Other A
Slide 9: Five Quarter Loan Growth and Portfolio Composition
Five Quarter Loan Growth and Portfolio Composition $ in millions $2.56 Billion Year Over Year Growth Highlights $15,560 $16,138 $16,733 $17,711 $18,117 Quarter-over-quarter loan growth +466 +578 +595 +978 +406 driven by (in millions): Residential & Consumer $ 245 Construction & Land 149 $896 $1,275
Slide 10: Five Quarter Deposit Growth and Composition
Five Quarter Deposit Growth and Composition $ in millions $2.85 Billion Year Over Year Growth Highlights $17,355 $18,088 $18,909 $19,177 $20,209 Quarter-over-quarter deposit growth +382 +733 +821 +268 +1,032 driven by (in millions): Savings and MMDA $ 468 $2,231 11.0% CDs 396 $1,857 $1,835 Non-Inter
Slide 11: Adversely Graded Loans and Non-Performing Assets
Adversely Graded Loans and Non-Performing Assets * $ in millions $379 $368 $358 $358 $316 $185 $150 $124 $134 $89 Adversely Graded Loans 1.92% 1.83% 1.70% 1.57% $177 $162 1.43% $127 $156 $181 $37 $34 0.33% 0.29% 0.26% 0.26% NPAs $37 $28 $44 0.20% $30 $28 $20 $18 $18 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-
Slide 12: Charge-Offs, Recoveries, ALLL, and Provision
Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs and Recoveries ALLL and ALLL to Organic Loans Ratio $145 $147 $150 $153 $155 $3.9 $4.8 $4.1 $3.6 $2.3 1.02% $(2.2) $(1.7) 0.99% 0.97% $(1.3) $(0.8) $(1.1) 0.92% 0.90% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1
Slide 13: Capital
Capital Capital Ratios ROTCE1 and TBV/Share 20.9% 20.7% 20.5% 20.4% 20.5% 13.4% 13.5% 13.2% 13.2% 13.2% 11.0% 11.0% 10.8% 10.9% 10.5% $23.20 10.9% 10.7% $22.07 10.7% 10.7% 10.5% $20.70 10.2% 10.3% $19.78 10.0% $18.86 9.8% 9.9% Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Total Capital
Slide 14: Management Outlook
Management Outlook • Loan and Deposit Growth • Interest Margin • Operating Leverage • Asset Quality 14 1414
Slide 15: Questions and Answers
WA Western Alliance Bancorporation” Questions and Answers 15
Slide 16: 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 stateme
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