Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2015 Earnings Presentation
15 slides from Western Alliance Bancorporation's earnings presentation, Apr 20, 2015
Slide 1: Western Alliance Bancorporation 1st Quarter Earnings Call
(NYSE: WAL) April 21, 2015 Western Alliance Bancorporation 1st Quarter Earnings Call
Slide 2: Financial Highlights
2 Financial Highlights Q1 2015 Highlights q Q1 2015 net income of $40.2 million, EPS of $0.45, net operating revenue of $108.8 million q Net operating revenue growth of 13.0%, or $12.5 million, year-over-year, compared to an increase in operating expenses of 4.5%, or $2.3 million q Loan growth quart
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results Q1 2015 Highlights q Net Interest Income rose $1.0 million compared to prior quarter driven by loan growth, partially offset by two fewer days in Q1-15. Net Interest Income rose $12.3 million from Q1-14 primarily due to loan growth q Operating Non-Interest
Slide 4: Net Interest Drivers
4 Cash and Due from Banks Net Interest Drivers Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 $355 $379 $259 $164 $492 $ in billions, unless otherwise indicated Loans and Yield Total Investments and Yield Interest Bearing Deposits and Cost of Funds $ in millions Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 3.15% 3.08% 3.11% 3.07%
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Note: Disposition Accretion is the recognition of incremental credit and interest rate marks upon sale, disposition or transfer to OREO of a PCI loan; Normal Accretion includes the scheduled amortization of interest rate marks of PCI loans over the e
Slide 6: Operating Expenses and Efficiency
6 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 $7.1 $6.4 $6.5 $7.1 $6.9 $6.4 $6.8 $5.4 $5.8 $7.1 $8.8 $7.0 $7.6 $10.8 $7.7 Operating Expenses and Efficiency $ in millions Q1 2015 Highlights q Efficiency ratio improved to record 46.7% due to 13% increase in revenues versus 4% in expenses compared to a year ago q Op
Slide 7: Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA
7 Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA $ in millions Pre-Tax, Pre-Provision Operating Income and ROA Net Income and ROA Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 $44.4 $47.4 $51.8 $52.0 $54.5 1.90% 1.95% 2.06% 2.00% 2.03% Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 $31.1 $35.5 $40.9 $40.4 $40.2 1.33%
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions q Ratio of Loans to Total Assets rose from 73% to 78% year- over-year improving overall asset mix q Deposits to Total Liabilities increased from 92% to 95% year-over-year, enhancing funding sources q TBV increased $0.51 (5.0%) from the prior quarter and $2.
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition $ in millions Commercial & Industrial CRE, Non- Owner Occupied CRE, Owner Occupied Residential and Consumer Construction & Land Q1 2015 Highlights q $420 million quarter-over- quarter loan growth driven by: - C&I ($193 million), - Construction & Land ($95 mill
Slide 10: Deposit Growth and Composition
10 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 $2,094 $2,279 $2,247 $2,288 $2,657 $750 $795 $809 $855 $937 $3,672 $3,637 $3,685 $3,870 $4,121 $1,633 $1,759 $1,957 $1,918 $1,947 Deposit Growth and Composition $ in millions NOW CDS Non-Int Bearing DDA $8,149 $8,470 $8,698 $8,931 $9,662 Growth: +321 +228 +233 +731 Q
Slide 11: Adversely Graded Loans and Non-Performing Assets
11 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 $48 $51 $43 $46 $53 $70 $64 $75 $68 $61 $85 $101 $86 $72 $60 $91 $72 $78 $78 $84 Adversely Graded Loans and Non-Performing Assets Organic Acquired * NPA’s Adversely Graded Loans $264 $43 Accruing TDRs total $72 million as of 3/31/2015 $29
Slide 12: Charge-Offs, Recoveries, and Provision
12 Charge-Offs, Recoveries, and Provision Q1 2015 HighlightsGross Charge Offs and Recoveries Net Recoveries and Rate Provision for Credit Losses and ALLL q Recoveries of $2.0 million exceeded gross charge-offs of $0.8 million, resulting in net recoveries of $1.2 million q Annualized net recovery rat
Slide 13: Capital Ratios
13 Capital Ratios Q1 2015 Highlights q Tangible common equity improved 98 basis points year-over-year to 8.5%, even though total assets increased 15.4% q On January 1, 2015, Basel III rules became effective, subject to transition provisions primarily related to accumulated other comprehensive income
Slide 14: Outlook
14 Outlook 2nd Quarter 2015 Bridge Capital Acquisition q Regulatory application filed April 9 q Securities registration statement to be filed week of April 20 Financial Expectations q Loan and Deposit Growth q Interest Margin q Operational Efficiency q Asset Quality
Slide 15: Forward-Looking Statements
15 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 state
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