Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2021 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Apr 16, 2021
Slide 1: Earnings Call 1st Quarter 2021
EARNINGS CALL 1st Quarter 2021 APRIL 16, 2021
Slide 2: 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
Slide 3: Highlights: 1st Quarter 2021 Financial Highlights
Highlights 1st Quarter 2021 | Financial Highlights Earnings & Profitability Q1-21 Q4-20 Q1-20 $192.5 $193.6 $83.9 Net Income Net Income EPS Net Interest Income $317.3 $314.8 $269.0 Pre Provision Net Revenue1 $202.0 $206.4 $153.6 $192.5 million $1.90 EPS $1.90 $1.93 $0.83 Net Interest Margin 3.37% 3.
Slide 4: Quarterly Income Statement
Q1 2021 Highlights Quarterly Income Statement Q1-21 Q4-20 Q1-20 Net Interest Income increased $2.5 million, Interest Income $334.1 $331.6 $307.2 1 primarily as a result of loan growth, PPP Interest Expense (16.8) (16.8) (38.2) loan fee recognition and lower interest Net Interest Income $317.3 1 $314
Slide 5: Net Interest Drivers
Q1 2021 Highlights Net Interest Drivers Spot Rate Spot Rate Total Investments and Yield 2.47% Loans and Yield 4.46% • Loan yields declined 8bps following mix 2.98% 3.02% 2.79% shift into residential loans and general 2.61% 2.37% 5.27% 4.82% 4.47% 4.67% 4.59% reduction in loan yields, partially offse
Slide 6: Net Interest Income
Q1 2021 Highlights Net Interest Income Net Interest Income, NIM, and Average Interest Earning Assets Forecasted Accretion on PPP Loans • NIM decline mainly driven by excess liquidity and mix of interest earning Round 1: Net PPP loan fees $42.9MM received in Q2-20 assets $317.3 $314.8 Round 2: Net PP
Slide 7: Expenses and Efficiency
Q1 2021 Highlights Expenses and Efficiency1 • Efficiency ratio1 increased 90 bps to 39.1% Non-Interest Expenses and Efficiency Ratio compared to the prior quarter and has fallen 380bps from the same period last year 42.9% • Higher efficiency ratio1 was driven by the 39.7% 39.1% 38.2% modest decline
Slide 8: Pre-Provision Net Revenue, Net Income, and ROA
Q1 2021 Highlights Pre-Provision Net Revenue1, Net Income, and ROA • PPNR decreased $4.4 million from the PPNR, Net Income & ROA prior quarter, but increased $48.4 million or 31.5% from the same period last year 2.69% 2.37% • PPNR ROA1 decreased 34 basis points 2.24% 2.22% 2.03% from the prior quart
Slide 9: Consolidated Balance Sheet
Q1 2021 Highlights Consolidated Balance Sheet Q1-21 Q4-20 Q1-20 Loans increased $1.7 billion, or 6.1%, Investments & Cash $13,235 $8,177 $4,771 1 over prior quarter and $5.5 billion, or Loans $28,711 1 $27,053 $23,166 23.9%, over prior year Allowance for Loan Losses (247) (279) (235) Deposits increa
Slide 10: Five Quarter Loan Growth and Composition
Highlights Five Quarter Loan Growth and Composition Quarter-over-quarter loan growth of $1.7 $5.5 Billion Year-Over-Year Growth billion driven by (in millions): C&I $746 Total Loans $23.1 $25.0 $26.0 $27.1 $28.7 Residential & Consumer 653 Qtr. Change +$2.0 +$1.9 +$1.0 +$1.0 +$1.7 Construction & Land
Slide 11: Five Quarter Deposit Growth and Composition
Highlights Five Quarter Deposit Growth and Composition Quarter-over-quarter deposit growth of $13.6 Billion Year-Over-Year Growth $6.5 billion driven by (in millions): Non-Interest-Bearing DDA $4,080 Total Deposits $24.8 $27.5 $28.8 $31.9 $38.4 Savings and MMDA 2,863 Qtr. Change +$2.0 +$2.7 +$1.3 +$
Slide 12: Asset Quality
Q1 2021 Highlights Asset Quality Classified Assets Special Mention Loans • At quarter end, Total Deferrals were $326 $68.5MM (24bps of Total Loans); nearly all $298 1.83% $281 1.58% 1.67% 1.65% low LTV residential forbearances $247 $171 $224 $149 • Total Classified Assets of $281 million $163 $477 $
Slide 13: Credit Losses and ACL Ratios
Q1 2021 Highlights Credit Losses and ACL Ratios Allowance for Credit Losses Gross Charge-offs and Recoveries • Provision expense release of $32.4 $7 $6 Gross Charge Offs $8.8 million, driven by improved $36 $44 $7 Recoveries macroeconomic factors and loan growth $37 $9 $3 $33 $5.7 in lower loss segm
Slide 14: Capital Accumulation
Q1 2021 Highlights Capital Accumulation Robust Capital Levels Common Equity Tier 1 11.2% 11.4% 11.4% • CET1 remains strong at 10.3% 11.1% 10.2% 10.0% 10.0% 9.9% 10.3% Tangible Common Equity / Tangible Assets1 9.4% 8.9% 8.9% • TCE / TA decreased 70bps from the prior 8.7% 8.6% quarter to 7.9% 8.2% 8.3
Slide 15: Management Outlook
Management Outlook Balance Sheet Growth Interest Margin Pre-Provision Net Revenue Asset Quality Capital and Liquidity 15
Slide 16: Questions & Answers
ee M\VAN | Nes Wester Alliance Questions & Answers
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