Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q4 2015 Earnings Presentation
17 slides from Western Alliance Bancorporation's earnings presentation, Jan 21, 2016
Slide 1: 4th Quarter Earnings Call 2015
4th Quarter Earnings Call 2015 January 22, 2016
Slide 2: Financial Highlights
2 Financial Highlights ▪ Net income of $58.5 million and earnings per share of $0.57, compared to $55.9 million and $0.55 per share for Q3 2015, and $40.4 million and $0.46 per share for Q4 2014 ▪ Net interest margin of 4.67%, compared to 4.59% in Q3 2015, and 4.44% in Q4 2014 ▪ Efficiency ratio of
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results $ in millions, except EPS Q4 2015 HIGHLIGHTS ▪ Net Interest Income rose $5.9 million (4.3%) driven by loan growth ▪ Operating Non-Interest Expense increased $0.6 million (0.8%) driven by higher non-compensation costs of $3.1 and lower compensation costs of
Slide 4: Annual Consolidated Financial Results
4 Annual Consolidated Financial Results $ in millions, except EPS 2015 HIGHLIGHTS ▪ Net Interest Income increase of $107.7 million (28.0%) commensurate with growth in loans of 32.6% and in deposits of 34.7% ▪ Growth in Net Operating Revenue of 27.9% outpaced growth in Operating Non-Interest Expense
Slide 5: Net Interest Drivers
5 Net Interest Drivers $ in billions, unless otherwise indicated Interest Bearing Deposits and Cost of Funds Loans and Yield Interest Earning Assets Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4 2015 HIGHLIGHTS ▪ Loans increased $348 million due to organic growth; yield increased due to fees from loan payoffs ▪
Slide 6: Net Interest Income and Accretion
6 Net Interest Income and Accretion $ in millions Q4 2015 HIGHLIGHTS ▪ NIM increased 8 bps largely due to decreased interest expense driven by pay off of 10% Senior Notes ▪ Adjusted NIM for acquired loan accretion was 4.52% for the quarter, compared to reported NIM of 4.67% Net Interest Income and N
Slide 7: Operating Expenses and Efficiency
7 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $33.1 $32.5 $32.4 $43.7 $41.2 $7.1 $6.9 $7.2 $9.3 $9.8$5.8 $7.1 $7.3 $8.4 $10.5$10.8 $7.7 $7.7 $10.8 $11.3 Operating Expenses and Efficiency $ in millions Q4 2015 HIGHLIGHTS ▪ The Efficiency Ratio improved to 45.2% as revenue increases of $6.9 million outpaced expense
Slide 8: Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA
8 Pre-Tax, Pre-Provision Operating Income, Net Income, and ROA $ in millions Pre-Tax, Pre-Provision Operating Income and ROA Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $52.0 $54.5 $59.7 $73.7 $79.9 2.00% 2.03% 2.14% 2.16% 2.28% Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $40.4 $40.4 $39.5 $55.9 $58.5 1.56% 1.50% 1.41% 1.64% 1
Slide 9: Consolidated Balance Sheet
9 Consolidated Balance Sheet $ in millions ▪ Total Loans increased $348 million (3.2%) over prior quarter and $2.74 billion (32.6%) over prior year ▪ Deposits increased $420 million (3.6%) over prior quarter and $3.10 billion (34.7%) over prior year ▪ Increased deposits helped provide liquidity to r
Slide 10: Loan Growth and Portfolio Composition
10 Loan Growth and Portfolio Composition $ in millions Q4 2015 HIGHLIGHTS ▪ Quarter-over-quarter loan growth driven by: ◦ C&I $303 million ◦ CRE, Non Owner Occ $72 million ▪ Year-over-year loan growth driven by: ◦ C&I $1.74 billion ◦ Construction & Land $385 million ◦ CRE, Owner Occ $370 million $2.
Slide 11: Deposit Growth and Composition
11 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $2,288 $2,657 $3,924 $4,077 $4,094 $855 $937 $1,001 $1,024 $1,028 $3,870 $4,121 $4,734 $4,673 $5,297$1,918 $1,947 $1,747 $1,836 $1,611 Deposit Growth and Composition $ in millions Q4 2015 HIGHLIGHTS ▪ Quarter-over-quarter deposit growth driven by: ◦ Savings and MMDA
Slide 12: Adversely Graded Loans and Non-Performing Assets
12 Adversely Graded Assets to Total Assets NPA's to Total Assets Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 3.07% 2.77% 2.69% 2.70% 2.54% 1.18% 1.11% 0.88% 0.76% 0.65% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $57 $64 $59 $58 $44 $68 $61 $59 $48 $48 $
Slide 13: Charge-Offs, Recoveries, ALLL, and Provision
13 Gross Charge-Offs Recoveries Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 $2.6 $0.8 $2.0 $1.1 $2.5 $(3.4) $(2.0) $(5.0) $(3.1) $(2.0) Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs and Recoveries Net Recoveries / Charge-Offs and Rate ALLL+CD/Total Loans Loan Loss Provision ALLL/Tot
Slide 14: Allowance for Credit Losses
14 Adjusted for Effect of No Reserve for Acquired Loans Reported Less: Acquired Loans* Adjusted Allowance for Credit Losses $ 119 $ 119 Total Loans Held for Investment 11,113 1,537 9,576 Ratio 1.07% 1.24% Adjusted for Effect of Acquired Loans Booked at Discount Reported Plus: Credit Discount* Adjust
Slide 15: Capital Ratios, ROTCE and TBV/Share
15 ROTCE TBV/Share Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 18.2% 17.3% 16.0% 19.0% 18.6% $10.21 $10.72 $11.25 $11.86 $12.54 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 11.7% 11.3% 12.2% 12.1% 12.1% 9.0% 9.1% 9.1% 9.5% 9.7% 9.8% 10.0% 9.9% 9.8
Slide 16: Outlook 1st Quarter 2016
16 Outlook 1st Quarter 2016 ▪ Loan and Deposit Growth ▪ Interest Margin ▪ Operating Efficiency ▪ Asset Quality 16
Slide 17: Forward-Looking Statements
17 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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