Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2014 Earnings Presentation
19 slides from Western Alliance Bancorporation's earnings presentation, Jul 17, 2014
Slide 1: 2nd Quarter Earnings Call
(NYSE: WAL) July 18, 2014 Western Alliance Bancorporation 2nd Quarter Earnings Call
Slide 2: Q2 2014 Financial Highlights
Q2 2014 Financial Highlights Q2 2014 net income of $35.5 million, EPS of $0.40, net operating revenue of $99.6 million Loan growth of $436 million to $7.54 billion, deposit growth of $321 million to $8.47 billion, and asset growth of $277 million to $10.02 billion Performance includes $1.4 mil
Slide 3: Loan Growth and Portfolio Composition
$2,174 $2,235 $2,478 $2,723 $3,028 $1,550 $1,551 $1,562 $1,606 $1,603 $1,833 $1,856 $1,832 $1,842 $1,934 $438 $414 $393 $383 $370 $417 $460 $536 $554 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Loan Growth and Portfolio Composition $ in millions Commercial & Industrial CRE, Owner Occupied CRE, Non- Owner Occupied
Slide 4: Deposit Growth and Composition
Deposit Growth and Composition $ in millions Savings & MMDA NOW CDs Non-Int Bearing DDA $1,920 $1,972 $2,200 $2,094 $2,279 $2,945 $3,050 $3,310 $3,672 $3,637 $631 $674 $710 $750 $795 $1,505 $1,579 $1,618 $1,633 $1,759 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 $7,001 $7,275 $7,838 $8,149 $8,470 Growth: +266* +27
Slide 5: Consolidated Balance Sheet
Consolidated Balance Sheet $ in millions Decrease in Investments & Cash as a result of discontinuing securities sold short ($110 million) during the quarter Loan/deposit ratio decreased slightly year over year from 91.6% to 89.1% Shareholders’ Equity increased $63 million during the quarter: $
Slide 6: Consolidated Financial Results
Consolidated Financial Results Highlights Year over year, total revenue increased 14.2% (17.2% on tax-equivalent basis) while expenses only rose 10.8% Net income rose $4.4 million quarter over quarter as assets rose and asset quality improved $ in millions, except EPS 6 Q2-14 Q1-14 Q2-13 Net Int
Slide 7: Segment Reporting: Loans and Deposits
Segment Reporting1: Loans and Deposits Q2 2014 7 Loans by Segment - $7.45 billion $ in billions California $2.06 25.0% Nevada $3.19 38.7% Arizona $2.12 25.7% National Business Lines $0.88 10.6% Deposits by Segment - $8.25 billion California $1.69 22.7% Nevada $1.68 22.6% Arizona $2.13 28.6% National
Slide 8: Segment Reporting: Revenue and Pretax Income
Revenue by Segment - $104.4 million $ in millions California $25.7 24.6% Nevada $31.7 30.4% Arizona $30.1 28.8% National Business Lines $16.9 16.2% California $14.0 25.1% Nevada $17.7 31.7% Arizona $17.3 31.0% National Business Lines $6.8 12.2% Pretax Income by Segment - $55.8 million Segment Report
Slide 9: Net Interest Drivers
$6.4 $6.5 $6.8 $7.1 $7.5 5.40% 5.44% 5.48% 5.27% 5.29% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 $249 $381 $306 $355 $379 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 $1.3 $1.4 $1.7 $1.7 $1.6 2.92% 3.01% 3.11% 3.15% 3.08% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 $5.1 $5.3 $5.6 $6.1 $6.2 0.32% 0.33% 0.33% 0.32% 0.32% Q2-13 Q3-13 Q4-13 Q1
Slide 10: Net Interest Income and Accretion
$82.2 $84.6 $90.0 $90.8 $93.9 4.36% 4.41% 4.44% 4.41% 4.39% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 $1.9 $2.4 $2.2 $2.4 $1.8 $0.0 $1.3 $2.5 $1.0 $3.1 4.36% 4.34% 4.34% 4.37% 4.26% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Disposition Accretion Normal Accretion Adjusted Net Interest Margin, excluding disposition accretion
Slide 11: Operating Expenses and Efficiency
$47.0 $48.3 $51.4 $52.1 $52.2 52.2% 51.6% 51.9% 51.0% 49.4% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Operating Expenses and Efficiency $ in millions Highlights Efficiency ratio improved 160 basis points quarter over quarter due to flat expenses and increased total revenue Year over year compensation increa
Slide 12: Pre-Tax, Pre-Provision Income, Net Income, and ROA
Pre-Tax, Pre-Provision Income, Net Income, and ROA $ in millions $40.1 $42.1 $43.8 $44.4 $47.4 1.91% 1.95% 1.93% 1.90% 1.95% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Note: Pre-Tax, Pre-Provision Income excludes gains/losses on repossessed assets, debt valuation adjustments and securities gains, merger/restruct
Slide 13: Adversely Graded Loans and Non-Performing Assets
Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 $110 $110 $98 $69 $68 $56 $48 $51 $82 $75 $74 $70 $64 $71 $78 $79 $85 $101 $115 $103 $93 $91 $72 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Adversely Graded Loans and Non-Performing Assets Organic Acquired* NPA’s Adversely Graded Loans * Net of Centennial and Western Liberty credit
Slide 14: Charge-Offs and Provision
-$3.1 -$4.8 -$2.4 -$2.4 -$3.5 $5.8 $3.3 $4.5 $2.1 $2.0 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Gross Charge Offs Recoveries $2.7 -$1.5 $2.1 -$0.3 -$1.5 0.17% -0.10% 0.13% -0.02% -0.09% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Net Charge Offs (Recoveries) Net Charge Off (Recovery) Rate Charge-Offs and Provision Highlight
Slide 15: Regulatory Ratios and Tangible Common Equity
12.0% 12.5% 12.4% 12.4% 12.4% 8.3% 8.8% 8.8% 8.8% 9.0% 10.8% 11.2% 11.1% 11.1% 11.2% 7.4% 7.4% 7.4% 7.5% 7.9% 9.9% 10.0% 9.8% 9.9% 10.0% Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Total RBC Tier 1 Common Tier 1 RBC Tangible Common Equity Tier 1 Leverage Capital Q2 2013 – Q2 2014 Regulatory Ratios and Tangible Co
Slide 16: Tangible Book Value Walkforward Q1 2014 – Q2 2014
$8.32 $0.40 $0.12 $0.10 $0.02 $0.06 $9.02 Tangible Book Value Walkforward Q1 2014 – Q2 2014 16 Components of Changes in Tangible Book Value Per Share (net of tax) Q1 2014 TBV/Share EPS OCI – AFS Valuation OCI – Impact of HTM Transfer ATM Offering Other Q2 2014 TBV/Share
Slide 17: Outlook 3rd Quarter 2014
Outlook 3rd Quarter 2014 17 Loan and Deposit Growth Interest Margin Operational Efficiency Asset Quality
Slide 18: Question & Answer
Question & Answer 18
Slide 19: 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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