Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2016 Earnings Presentation
17 slides from Western Alliance Bancorporation's earnings presentation, Apr 21, 2016
Slide 1: 1st Quarter 2016 Earnings Call
1st Quarter 2016 Earnings Call April 22, 2016
Slide 2: Financial Highlights
2 Financial Highlights ▪ Net income of $61.3 million and earnings per share of $0.60, compared to $58.5 million and $0.57 per share for Q4 2015, and $40.4 million and $0.45 per share for Q1 2015 ▪ Net interest margin of 4.58%, compared to 4.67% in Q4 2015, and 4.35% in Q1 2015 ▪ Efficiency ratio of
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results $ in millions, except EPS Q1 2016 HIGHLIGHTS ▪ Net Interest Income increased $2.4 million as a result of higher average loan balances ▪ Operating Non-Interest Income increased $2.7 million (28.7%), including $2.5 million of gain on sale of loans ▪ Operating
Slide 4: Net Interest Drivers
4 Net Interest Drivers $ in billions Interest Bearing Deposits and Cost of Funds Loans and Yield Interest Earning Assets Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q1 2016 HIGHLIGHTS ▪ Loans increased $105 million due to organic growth; yield decreased due to one less day in the quarter and the increased cash po
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Q1 2016 HIGHLIGHTS ▪ NIM decreased 9 bps largely due to one less day in the quarter ▪ NIM adjusted for acquired loan accretion was 4.42% for the quarter, compared to reported NIM of 4.58% Net Interest Income and NIM Acquired Loan Accretion and Adjust
Slide 6: Operating Expenses and Efficiency
6 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 $32.5 $32.4 $43.7 $41.2 $44.9 $6.9 $7.2 $9.3 $9.8 $9.6$7.1 $7.3 $8.4 $10.5 $10.1 $7.7 $7.7 $10.8 $11.3 $11.2 Operating Expenses and Efficiency $ in millions Q1 2016 HIGHLIGHTS ▪ The Efficiency Ratio rose forty basis points to 45.6% as expense growth slightly outpaced
Slide 7: Operating Pre-Provision Net Revenue, Net Income, and ROA
7 Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions Operating Pre-Provision Net Revenue and ROA Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 $54.5 $59.7 $73.7 $79.9 $82.1 2.03% 2.14% 2.16% 2.28% 2.27% Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 $40.4 $39.5 $55.9 $58.5 $61.3 1.50% 1.41% 1.64% 1.67% 1.70% Ope
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions ▪ Investments & Cash increased $864 million (38.1%) over prior quarter due to the increased cash position for the anticipated GE Asset Purchase ▪ Total Loans increased $105 million (0.9%) over prior quarter and $2.42 billion (27.5%) over prior year, the lat
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition $ in millions Q1 2016 HIGHLIGHTS ▪ Quarter-over-quarter loan growth driven by two loan categories: C&I increased $116 million and Construction & Land increased $47 million, offset by $51 million decrease in CRE, Owner Occupied ▪ Year-over-year loan growth driv
Slide 10: Loan Composition
10 Media: 1% Construction: 1% Retail: 7% Residential: 3% Utilities: 2% Media: 2% Construction: 2% Wholesale Trade: 1%Gaming: 1% Residential: 3% Loan Composition 3/31/2016 3/31/2015 10 Professional & Scientific: 1% Consumer: < 1% Other: 7% Consumer < 1% Other: 5% C&I CRE, Owner Occupied CRE, Non-Owne
Slide 11: Deposit Growth and Composition
11 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 $2,657 $3,924 $4,077 $4,094 $4,635 $937 $1,001 $1,024 $1,028 $1,088 $4,121 $4,734 $4,673 $5,297 $5,651 $1,947 $1,747 $1,836 $1,611 $1,708 Deposit Growth and Composition $ in millions Q1 2016 HIGHLIGHTS ▪ Quarter-over-quarter deposit growth driven by two deposit categ
Slide 12: Adversely Graded Loans and Non-Performing Assets
12 Adversely Graded Assets to Total Assets NPA's to Total Assets Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 2.77% 2.69% 2.70% 2.54% 2.05% 1.11% 0.88% 0.75% 0.65% 0.57% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 $64 $59 $58 $44 $53 $61 $59 $47 $48 $34 $
Slide 13: Provision for Credit Losses and ALLL Ratios
13 Gross Charge-Offs Recoveries Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 $2.0 $2.5 $8.0 $(2.0) $(5.0) $(3.1) $(2.0) $(5.7) 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/Total Loans Q
Slide 14: Capital Ratios, ROTCE and TBV/Share
14 ROTCE TBV/Share Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 17.3% 16.0% 19.0% 18.6% 18.4% $10.72 $11.25 $11.86 $12.54 $13.16 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 11.3% 12.2% 12.1% 12.1% 12.3% 9.0% 9.1% 9.1% 9.5% 9.9% 9.8% 10.0% 9.9% 9.8
Slide 15: GE Capital U.S. Hotel Franchise Portfolio Acquisition
15 GE Capital U.S. Hotel Franchise Portfolio Acquisition 15 ▪ On April 20, 2016, WAB, a wholly owned subsidiary of the Company, completed its previously announced Asset Purchase with GE and acquired their domestic select-service hotel franchise finance loan portfolio ▪ The portfolio consists of appr
Slide 16: Outlook 2nd Quarter 2016
16 Outlook 2nd 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 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- loo
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