Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Investor Presentation (February 2014)
21 slides from Western Alliance Bancorporation's investor presentation, Feb 6, 2014
Slide 1: Western Alliance Bancorporation Investor Update
(NYSE: WAL) Western Alliance Bancorporation Investor Update
Slide 2: Western Alliance Bancorporation: Who We Are
Western Alliance Bancorporation: Who We Are �� Commercial banking �� Physical footprints in AZ, CA, and NV with some operations in other states �� $1.88 billion market cap(1) As of 12/31/2013: �� $6.8 billion loans �� $9.3 billion assets �� $7.8 billion deposits �� Pre-Tax Pre-Provision Income, $43.
Slide 3: Loan, Deposit, and Asset Growth Since IPO
Loan, Deposit, and Asset Growth Since IPO Loan Growth $5.3 Billion CAGR of 20.0% Deposit Growth $5.7 Billion CAGR of 16.2% Asset Growth $6.7 Billion CAGR of 16.1% $1,453 $6,801 $2,190 $7,838 $2,621 $9,307 6/30/2005 12/31/2013 6/30/2005 12/31/2013 6/30/2005 12/31/2013 Page 3
Slide 4: Consolidated Balance Sheet
Consolidated Balance Sheet $ in millions * Net of tax o Total assets increased 22.2%, or $1.7 billion, year over year o Allowance for Credit Losses rose modestly from $95 million to $100 million, as loans grew 19.1% o Tangible Common Equity increased 16.4%, or $97 million o Tangible Book Value/Share
Slide 5: Consolidated Financial Results
Consolidated Financial Results Year Over Year Highlights o Debt valuation loss and securities gains/losses are due to market appreciation on outstanding trust preferred securities o Net loss on extinguishment of debt due to repurchase of $10.1 million of senior notes o Q4 2014 Income tax expense dec
Slide 6: EPS Walkforward: Reported to Operating EPS
EPS Walkforward: Reported to Operating EPS Components of Changes in Earnings Per Share $0.02 ($0.02) ($0.04) $0.01 $0.01 $0.36 Q4 2013 Operating EPS Net Gain on Repossessed Assets Tax Reduction from WLBC Q4 2013 Reported EPS Debt Valuation Loss and Securities Gains Merger/Restructure Expenses $0.34
Slide 7: Financial Performance: 2012 – 2013
Financial Performance: 2012 – 2013 $ in millions $134.0 $161.1 $100 $125 $150 $175 2012 2013 $290.3 $332.9 $200 $250 $300 $350 2012 2013 $178.4 $192.9 $150 $175 $200 $225 2012 2013 Net Interest Income Pre Tax Pre Provision Income Operating Expense Note: NIM reported on tax equivalent basis; Operatin
Slide 8: Loan Growth and Portfolio Composition
$1,948 $2,085 $2,174 $2,235 $2,478 $1,397 $1,414 $1,550 $1,551 $1,562 $1,499 $1,532 $1,833 $1,856 $1,832 $471 $443 $438 $414 $393 $394 $381 $417 $460 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Loan Growth and Portfolio Composition $ in millions $1.09 Billion Year Over Year Growth Commercial Industrial CRE, Owner
Slide 9: Construction Loans and CRE Investor Loan Commitments and Utilization Rates
Construction Loans CRE, Investor Loan Commitments and Utilization Rates $481 $492 $543 $564 $582 $651 $749 $905 72.4%73.2% 69.9%69.9% 65.5%63.9% 61.4% 59.4% 40.0% 50.0% 60.0% 70.0% 80.0% Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $1,268 $1,313 $1,296 $1,401 $1,457 $1,724 $1,743 $1,790 95.8%95.4
Slide 10: Deposit Growth and Composition
Deposit Growth and Composition $1.38 Billion Year Over Year Growth Savings & MMDA NOW CDs Non-Int Bearing DDA $1,933 $1,930 $1,920 $1,972 $2,200 $2,574 $2,827 $2,945 $3,050 $3,310 $582 $620 $631 $674 $710 $1,366 $1,358 $1,505 $1,579 $1,618 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $6,455 $6,735 $7,001 $7,275 $7
Slide 11: Key Metric Performance vs. Competitors 3Q 2012 – 3Q 2013
1.0% 7.5% 17.6% WAL 83% 21.7% WAL 93% 82.4% WAL 84% 18.1% Quartile Quartile Quartile Quartile (1.4%) Loan Growth Deposit Growth Net Income Growth 0.9% 4.9% 15.5% (3.6%) (15.4%) 4.6% 23.0% 61.0% (42.5%) 1.2% 7.8% 17.7% 1.0% 5.5% 15.7% (11.1%) 5.5% 26.3% 38.6% 33.3% 90% 75% 50% 25% 10% Key Metric Perf
Slide 12: Net Interest Drivers
$5.7 $5.9 $6.4 $6.5 $6.8 5.60% 5.42% 5.40% 5.44% 5.48% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $205 $422 $249 $381 $307 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $1.2 $1.3 $1.3 $1.4 $1.7 3.25% 3.21% 2.92% 3.01% 3.11% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $4.5 $4.8 $5.1 $5.3 $5.6 0.35% 0.32% 0.32% 0.33% 0.33% Q4-12 Q1-13 Q2-13 Q3
Slide 13: Net Income Drivers
$77.5 $76.2 $82.2 $84.6 $90.0 4.55% 4.36% 4.36% 4.41% 4.44% 4.0% 4.2% 4.4% 4.6% 4.8% 5.0% 5.2% $65 $70 $75 $80 $85 $90 $95 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Net Interest Income and NIM Operating Expense and Efficiency Ratio Pre Provision Income/ROA Net Income and ROA $45.8 $46.2 $47.0 $48.3 $51.4 53.5%
Slide 14: Weighted Average Risk Grades: Portfolio vs. Originations
Weighted Average Risk Grades: Portfolio vs. Originations 4.18 4.16 4.12 4.14 4.13 4.10 3.55 3.89 3.72 3.90 3.84 3.76 3.2 3.4 3.6 3.8 4.0 4.2 4.4 4.6 4.8 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Total Portfolio Originations Page 14 Loan Grade Weighted Average Risk Grades Q3 12 – Q4 13
Slide 15: Adversely Graded Loans and Non-Performing Assets
$74 $74 $68 $67 $56 $105 $94 $81 $75 $74 $97 $84 $71 $78 $79 $98 $122 $115 $103 $93 Q4‐12 Q1‐13 Q2‐13 Q3‐13 Q4‐13 Adversely Graded Loans and Non-Performing Assets Q4‐12 Q1‐13 Q2‐13 Q3‐13 Q4‐13 OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans $125 $20 Organic Acquired* Q4 201
Slide 16: Net Charge-Offs and Provision
13.6 5.4 2.7 (1.5) 2.1 3.2 2.7 3.1 4.8 2.4 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $13.5 0.99% 0.38% 0.17% -0.10% 0.13% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Affinity Card Mark to Fair Value ($2.6 mil) WAB TPB BON Net Charge-Off Rate $2.7 Net Charge-Offs and Provision Q4 2012 – Q4 2013 Net Charge-Offs and Charge-Off
Slide 17: Allowance for Credit Losses at 12/31/13
13.6 5.4 2.7 (1.5) 2.1 3.2 2.7 3.1 4.8 2.4 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 $13.5 0.99% 0.38% 0.17% -0.10% 0.13% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Affinity Card Mark to Fair Value ($2.6 mil) WAB TPB BON Net Charge-Off Rate $2.7 Net Charge-Offs and Provision Q4 2012 – Q4 2013 Net Charge-Offs and Charge-Off
Slide 18: Charge-Offs By Vintage and Remaining Balances
Charge-Offs By Vintage and Remaining Balances Remaining Balances by Vintage 2000-2013 Charge-Offs by Vintage 2000-2013 $102 outstanding balances (1.7% of total) $8.5 charge offs (2.1% of total) $379.3 charge offs (94.8% of total) $12.2 charge offs (3.1% of total) $1,397 outstanding balances (23.0% o
Slide 19: Regulatory Ratios
12.6% 12.6% 12.0% 12.5% 12.6% 8.6% 8.6% 8.3% 8.8% 8.9% 11.3% 11.3% 10.8% 11.2% 11.4% 10.1% 10.1% 9.9% 10.0% 9.8% Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Total RBC Tier 1 Common Tier 1 RBC Tier 1 Leverage Capital Q4 2012 – Q4 2013 Regulatory Ratios o Capital remains strong while asset growth has been robust du
Slide 20: Tangible Book Value and ROTCE
Tangible Book Value and ROTCE Q4 2012- Q4 2013 $6.84 $7.04 $7.26 $7.57 $7.89 12.8% 13.9% 16.5% 17.1% 17.3% 8.0% 13.0% 18.0% 23.0% 28.0% $4.00 $6.00 $8.00 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 TBV/Share ROTCE * * * * After adjusting for bank acquisitions and other non-recurring items Page 20
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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