Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q3 2013 Earnings Presentation
21 slides from Western Alliance Bancorporation's earnings presentation, Oct 17, 2013
Slide 1: Western Alliance Bancorporation 3rd Quarter Earnings Call
(NYSE: WAL) October 18, 2013 Western Alliance Bancorporation 3rd Quarter Earnings Call
Slide 2: Q3 2013 Financial Performance
Q3 2013 Financial Performance Continued Income Growth –Net income of $28.2 million, compared to $34.0 million for the second quarter 2013 (which included the $10.0 million bargain purchase gain from the acquisition of Centennial Bank in addition to other non-recurring items) and $15.5 million for th
Slide 3: Loan Growth and Portfolio Composition
$1,756 $1,948 $2,085 $2,174 $2,235 $1,331 $1,397 $1,414 $1,550 $1,551 $1,401 $1,500 $1,532 $1,833 $1,856 $465 $471 $443 $438 $414 $380 $394 $381 $417 Q3-12Q4-12Q1-13Q2-13Q3-13Loan Growth and Portfolio Composition $ in millions $1.18 Billion Year Over Year Growth Commercial & Industrial CRE, Owner Oc
Slide 4: Deposit Growth and Composition
Deposit Growth and Composition $ in millions $1.11 Billion Year Over Year Growth Savings & MMDA NOW CDs Non-Int Bearing DDA $1,841 $1,933 $1,930 $1,920 $1,972 $2,541 $2,574 $2,827 $2,945 $3,050 $515 $582 $620 $631 $674 $1,265 $1,366 $1,358 $1,505 $1,579 Q3-12Q4-12Q1-13Q2-13Q3-13 $6,162 $6,455 $6,735
Slide 5: Adversely Graded Loans and Non-Performing Assets
$78 $74 $75 $69 $68 $123 $106 $94 $82 $75 $116 $97 $84 $71 $78 $100 $98 $122 $115 $103 Q3-12Q4-12Q1-13Q2-13Q3-13$417 $375 $375 $337 Adversely Graded Loans and Non-Performing Assets $ in millions Q3-12Q4-12Q1-13Q2-13Q3-13 OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans$23 $1
Slide 6: Consolidated Balance Sheet
Consolidated Balance Sheet $ in millions * Net of tax Assets increased $1.52 billion or 20.5% year over year Allowance for Loan Loss flat despite 22.2% YOY increase in loans as credit quality has improved Deposits up 18.1% YOY Tangible Common Equity up 24.3% and Tangible Book Value/Share up 19.2% YO
Slide 7: Consolidated Financial Results
Consolidated Financial Results Highlights NII up $12.7 million or 17.5% YOY; Operating Non Interest Income includes $0.8 million BOLI gain Operating expenses up $4.4 million or 10.0% YOY Provision for Loan Losses fell from $8.9 million to $0.0 YOY as credit quality improves Q2 2013 tax expense refle
Slide 8: Net Interest Income and NIM
$27.7 $30.1 $29.3 $30.7 $31.9 4.28% 4.50% 4.16% 4.25% 4.44% 4.0%4.2%4.4%4.6%4.8%5.0%5.2%Q3-12Q4-12Q1-13Q2-13Q3-13$24.4 $26.7 $26.6 $32.5 $33.8 4.50% 4.58% 4.42% 4.74% 4.73% $15$19$23$27$31$35$39Q3-12Q4-12Q1-13Q2-13Q3-13$21.8 $22.2 $20.8 $20.6 $21.1 5.11% 5.07% 4.72% 4.64% 4.65% Q3-12Q4-12Q1-13Q2-13Q
Slide 9: WAL Consolidated Net Interest Drivers
$5.3 $5.7 $5.9 $6.4 $6.5 5.42% 5.60% 5.42% 5.40% 5.44% Q3-12Q4-12Q1-13Q2-13Q3-13$168 $205 $422 $249 $381 Q3-12Q4-12Q1-13Q2-13Q3-13$1.3 $1.2 $1.3 $1.3 $1.4 3.17% 3.25% 3.21% 2.92% 3.01% Q3-12Q4-12Q1-13Q2-13Q3-13$4.3 $4.5 $4.8 $5.1 $5.3 0.38% 0.35% 0.32% 0.32% 0.33% Q3-12Q4-12Q1-13Q2-13Q3-13WAL Consol
Slide 10: Operating Expense and Efficiency Ratio
Operating Expense and Efficiency Ratio $ in millions $16.7 $16.8 $17.4 $17.3 $17.8 51.9% 45.5% 50.5% 48.0% 47.1% 35%40%45%50%55%60%Q3-12Q4-12Q1-13Q2-13Q3-13$11.9 $13.1 $13.1 $14.7 $15.2 44.7% 45.2% 45.1% 42.0% 40.8% $5$10$15$20Q3-12Q4-12Q1-13Q2-13Q3-13$11.1 $11.1 $12.0 $12.0 $11.9 47.3% 46.3% 53.1%
Slide 11: Pre-Tax Pre-Provision Income and ROA
Pre-Tax Pre-Provision Income and ROA $ in millions $14.2 $16.7 $15.3 $17.3 $18.4 1.93% 2.31% 1.93% 2.12% 2.22% 1.5%2.0%2.5%3.0%Q3-12Q4-12Q1-13Q2-13Q3-13$14.1 $15.2 $15.3 $19.5 $21.1 2.38% 2.38% 2.36% 2.62% 2.68% $0$5$10$15$20$25Q3-12Q4-12Q1-13Q2-13Q3-13$11.8 $12.2 $9.9 $9.7 $9.9 2.50% 2.51% 2.03% 1.
Slide 12: Net Income and ROA
Net Income and ROA $ in millions $5.8 $7.6 $10.7 $12.7 $16.3 0.79% 0.99% 1.34% 1.55% 1.96% 0.0%0.5%1.0%1.5%2.0%Q3-12Q4-12Q1-13Q2-13Q3-13$8.8 $10.4 $8.5 $12.0 $9.8 1.48% 1.63% 1.31% 1.61% 1.24% $0$5$10$15$20$25$30Q3-12Q4-12Q1-13Q2-13Q3-13$6.4 $5.2 $6.3 $5.8 $4.6 1.31% 0.70% 1.30% 1.16% 0.90% Q3-12Q4-
Slide 13: Composition of Pass Credits and Loan Grades
Composition of Pass Credits and Loan Grades 9/30/12 High Pass $1,364 Pass $3,636 Special Mention $98 Classified$236 Wtd Grade 4.18 Total Loans $5,333 million Pass Credits and Loan Grades Q3 2012 – Q3 2013 Composition of Pass Credits and Loan Grades 9/30/13 High Pass $1,700 Pass $4,459 Special Mentio
Slide 14: Net Charge-Offs and Provision
$9.0 $13.5 0.70% 0.99% 0.38% 0.17% Q3-12Q4-12Q1-13Q2-13Q3-13Affinity Card Mark to Fair Value($2.6 mil)WABTPBBONNet Charge-Off Rate 0.10% recovery rate, $1.5 million net recovery $2.7 $9.0 $13.5 $5.4 $2.7 $(1.5) $1.9 $3.2 $2.7 $3.1 $4.1 Q3-12Q4-12Q1-13Q2-13Q3-13Net Charge-Offs and Provision Q3 2012 –
Slide 15: Effect of No Reserve for Acquired Loans
Effect of No Reserve for Acquired Loans Reported Less: Acquired Loans*Adjusted Allowance for Loan Losses98$ 98$ Total Loans6,516$ 402$ 6,114$ Ratio1.50%1.60%Effect of Acquired Loans Booked at Discount Reported Plus: Credit Discount*Adjusted Allowance for Loan Losses98$ 37$ 135$ Total Loans6,516$ 37$
Slide 16: Charge-Offs By Vintage and Remaining Balances
Charge-Offs By Vintage and Remaining Balances $ in millions $4 $14 $18 $66 $131 $262 $252 $392 $361 $308 $408 $838 $1,487 $1,534 0002001200220032004200520062007200820092010201120122013$2.4 $2.4 $2.1 $5.3 $25.9 $66.4 $126.1 $97.2 $63.7 $4.8 $2.9 $0.4 $0.2 $0.2 2000200120022003200420052006200720082009
Slide 17: Capital Q3 2012 – Q3 2013
Capital Q3 2012 – Q3 2013 12.3% 12.6% 12.6% 12.0% 12.5% 8.1% 8.6% 8.6% 8.3% 8.8% 11.0% 11.3% 11.3% 10.8% 11.2% 9.7% 10.1% 10.1% 9.9% 10.0% Q3-12Q4-12Q1-13Q2-13Q3-13Total RBCTier 1 CommonTier 1 RBCTier 1 LeverageRegulatory Ratios Page 17 Basel III (2015) Estimated Capital Tangible Common Equity, net
Slide 18: Tangible Book Value and ROTCE
Tangible Book Value and ROTCE Q3 2012- Q3 2013 Page 18 $6.35 $6.84 $7.04 $7.26 $7.57 11.6% 12.0% 13.9% 16.5% 17.1% 8.0%13.0%18.0%23.0%28.0%$4.00$6.00$8.00Q3-12Q4-12Q1-13Q2-13Q3-13TBV/ShareROTCE* * * After adjusting for bank acquisitions and other non-recurring items.
Slide 19: Outlook 4th Quarter 2013
Outlook 4th Quarter 2013 Balance Sheet Growth Interest Margin Operating Efficiency Asset Quality
Slide 20: Question & Answer
Question & Answer WAL Q3 2013 Earnings Presentation
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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