Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2017 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Jul 20, 2017
Slide 1: Earnings Call 2nd Quarter 2017
Earnings Call 2nd Quarter 2017 July 21, 2017
Slide 2: Q2 2017 Financial Highlights
2 Financial Highlights ▪ Net income of $80.0 million and earnings per share of $0.76, compared to $73.4 million and $0.70 per share for Q1 2017, and $61.6 million and $0.60 per share, inclusive of $0.02 in acquisition / restructure expense for Q2 2016 ▪ Net interest margin of 4.61%, compared to 4.63
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results $ in millions, except EPS Q2 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 flat from Q1 2017 ▪ Provision for Credit L
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 Q2 2017 Highlights ▪ Loan yield increased due to higher yields on C&I, CRE, and Construction loans, reflecting rising inter
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Q2 2017 Highlights ▪ NIM decreased 2 basis points to 4.61% quarter-over- quarter as a result of an increase in the average cash balance and a decrease in the loan-to-deposit ratio Net Interest Income, NIM, and Average Interest-Earning Assets Acquired
Slide 6: Operating Expenses and Efficiency
6 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 $44.7 $49.5 $49.7 $51.6 $52.2 $10.2 $10.0 $10.4 $10.1 $10.5$10.9 $10.7 $12.1 $14.1 $12.9 $12.0 $12.2 $10.5 $12.5 Operating Expenses and Efficiency $ in millions Q2 2017 Highlights ▪ The operating efficiency ratio decreased from 44.4% in Q1 2017 to 41.2% as revenue inc
Slide 7: Operating Pre-Provision Net Revenue, Net Income, and ROA
7 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 $61.6 $67.1 $69.8 $73.4 $80.0 1.55% 1.58% 1.63% 1.69% 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 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 $94.5 $100.8 $103.1 $100.9 $1
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions ▪ Loans increased 2.4% over prior quarter and 8.7% over prior year ▪ Deposits increased 4.4% over prior quarter and 12.9% over prior year ▪ Loan to Deposit Ratio of 87.3%, compared to 89.0% in prior quarter and 90.7% in prior year ▪ Shareholders' Equity inc
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition $ in millions Q2 2017 Highlights ▪ Quarter-over-quarter loan growth driven by: ◦ C&I $264 million ◦ CRE, Non-OO $41 million ◦ Residential $30 million ▪ Year-over-year loan growth driven by: ◦ C&I $740 million ◦ Construction & Land $268 million $1.11 Billion Ye
Slide 10: Deposit Growth and Composition
10 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 $5,275 $5,625 $5,633 $6,114 $6,859 $1,278 $1,257 $1,347 $1,449 $1,481 $6,006 $5,969 $6,121 $6,254 $6,104 $1,642 $1,592 $1,449 $1,539 $1,587 Deposit Growth and Composition $ in millions Q2 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 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 2.24% 2.03% 2.07% 2.25% 2.06% 0.54% 0.53% 0.51% 0.44% 0.32% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 $50 $50 $48 $45 $31 $40 $41 $40 $34 $30 $1
Slide 12: Charge-Offs, Recoveries, ALLL, and Provision
12 Gross Charge-Offs Recoveries Net Charge-Off (Recovery) Rate Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs, Recoveries and Rate Provision for Credit Losses ALLL ALLL/Total Organic Loans Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 $122 $123 $125 $128 $
Slide 13: Capital Ratios and ROTCE and TBV/Share
13 ROTCE TBV/Share Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 17.4% 17.5% 17.6% 17.8% 18.4% $14.25 $14.84 $15.17 $15.86 $16.71 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 12.9% 13.1% 13.2% 13.1% 13.3% 9.6% 9.8% 10.0% 10.0% 10.3% 9.8% 9.9% 10.2%
Slide 14: Management Outlook
14 Management Outlook 14 ▪ Financial Position ▪ Revenue ▪ Expense ▪ 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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