Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2012 Earnings Presentation
19 slides from Western Alliance Bancorporation's earnings presentation, Apr 20, 2012
Slide 1: 1st Quarter 2012 Earnings Call
1st Quarter 2012 Earnings Call Western Alliance Bancorporation (NYSE: WAL) April 20, 2012
Slide 2: Forward-Looking Information
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. The forward-looking statements contained herein reflect our cur
Slide 3: 1st Quarter 2012 Financial Highlights
1st Quarter 2012 Financial Highlights Sustained Earning Power –Net income of $11.3 million, 59% over Q4 2011 and 119% over Q1 2011 –Net interest income of $70.1 million, up over $8.9 million or 14.7% from Q1 2011–Net interest margin of 4.53%, compared to 4.51% in prior quarter and 4.35% last year –P
Slide 4: Loans: Q1 2012 Loan Growth of $146 Million
Loans Q1 2012 Loan Growth of $146 Million Loan Portfolio Composition, Q1 10 through Q4 11 $936 $1,030 $1,153 $1,337 $1,437 $1,300 $1,285 $1,225 $1,252 $1,294 $1,081 $1,164 $1,233 $1,294 $1,355$570 $537 $511 $516 $493 $392 $396 $404 $382 $348 $0 $1,000 $2,000 $3,000 $4,000 $5,000 Q1-11 Q2-11 Q3-11 Q4
Slide 5: Q1 2012 Loan Growth
Q1 2012 Loan Growth 1st Quarter net increase in Total Loans of $146 million $100 $65 $38 -$22 -$34 -$75 -$25 $25 $75 $125 $175 Q1 Change by Loan Type -$5 $100 $60 $45 -$39 -$14 -$1 $0 $0 -$75 -$25 $25 $75 $125 $175 1 2 3 4 5 6 7 8 9 Q1 Change by Loan Grade Pass Watch Classified C&I CRE Non- Owner Oc
Slide 6: Cumulative Charge-Offs January 2000 – March 2012
5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Cumulative Charge-Offs January 2000 – March 2012 Construction & Land Residential RE CRE Non-Owner Occupied CRE Owner Occupied Commercial Consumer Charge- 1Q12 Balance 442,35
Slide 7: SBLF Dividend Rate
5.00% 4.73% 3.93% 2.59% 1.00% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% $0.00 0.0% $37.75 2.5% $75.50 5.0% $113.25 7.5% $151.00 10+% Tier Rate Weighted Rate $ Growth % Growth SBLF Dividend Rate ($ in millions) SBLF qualifying loan growth exceeded baseline by $169 million which is expected to result in a di
Slide 8: Deposits: Q1 2012 Deposit Growth of $241 Million
Deposits Q1 2012 Deposit Growth of $241 Million $1,455 $1,517 $1,519 $1,558 $1,758 $2,101 $2,105 $2,152 $2,133 $2,224 $521 $457 $466 $482 $527 $1,421 $1,510 $1,496 $1,485 $1,390 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 Q1 - 11 Q2 - 11 Q3 - 11 Q4 - 11 Q1-12 Deposit Composition, Q1 11 throu
Slide 9: Western Alliance Bank
Western Alliance Bank (1) Reported on a tax-equivalent basis. (2) Operating expenses exclude goodwill impairment, merger-related expenses and gains/losses on sale of repossessed assets. (3) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment s
Slide 10: Torrey Pines Bank
Torrey Pines Bank $10.1 $9.9 $10.0 $11.1 $11.1 54.9% 50.4% 48.0% 51.0% 49.3% 44% 46% 48% 50% 52% 54% 56% $8 $9 $10 $11 $12 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 $8.3 $9.7 $10.7 $10.6 $11.4 2.24% 2.50% 2.66% 2.55% 2.63% 2.0% 2.2% 2.4% 2.6% 2.8% $7 $9 $11 $13 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 (1) Reported on a ta
Slide 11: Bank of Nevada
Bank of Nevada $17.7 $17.9 $17.8 $17.3 $17.1 58.6% 56.9% 58.9% 54.0% 54.3% 50% 52% 54% 56% 58% 60% 62% $16 $17 $18 $19 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 $12.3 $13.3 $12.1 $13.9 $14.4 1.63% 1.72% 1.70% 1.88% 1.86% 1.5% 1.6% 1.7% 1.8% 1.9% 2.0% 2.1% $10 $11 $12 $13 $14 $15 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 (1
Slide 12: WAL Consolidated Q1 Results
WAL Consolidated Q1 Results (1) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment securities and repossessed assets, merger related expenses and gain on extinguishment of debt. ($ in millions, except EPS) Q1-12 Q4-11 Q1-11 Net Interest Incom
Slide 13: WAL Consolidated
WAL Consolidated (1) Reported on a tax-equivalent basis. (2) Operating expenses exclude goodwill impairment, merger-related expenses and gains/losses on sale of repossessed assets. (3) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment securi
Slide 14: Net Interest Margin Drivers
Net Interest Margin Drivers $ in billions 3.01% 3.13% 3.2% 3.4% $1.5 $1.6 $0.5 $0.6 Cash Total Investments Yield 2.67% 2.84% 2.91% 2.6% 2.8% 3.0% $1.2 $1.3 $1.4 $0.2 $0.3 $0.4 $1.32 $1.14 $1.31 $1.49 $1.42 2.2% 2.4% $1.0 $1.1 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 $0.363 $0.535 $0.306 $0.155 $0.180 $0.0 $0.1
Slide 15: Problem Loans & Repossessed Assets
$98 $86 $87 $89 $81 $115 $114 $116 $93 $104 $128 $127 $111 $112 $97 $204 $190 $168 $147 $133 $0 $125 $250 $375 $500 $625 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Repossessed Assets Non-Performing Loans Classifed Accruing Loans Watch Loans $547 $481 $441 $416 Problem Loans & Repossessed Assets(1)(1) Classified
Slide 16: Q1 2012 OREO Summary
Q1 2012 OREO Summary 6% 15% 3% 2% 4% Property Type ($ in millions) OREO Valuation at end of Q4 11 $88.3 Q1‐12 Changes: Additions 5 34 66% to OREO 5.34 Sales of OREO (9.97) Valuation Adjustments/Gain(Loss) on Sale (2.91) OREO Valuation at end of Q1 12 $80.7 Industrial Land Office Other Residential Re
Slide 17: Capital and Parent Liquidity
Capital and Parent Liquidity(1) (1) Capital ratios are considered estimates until Call Reports are filed. (2) Tier 1 Common is a non-GAAP ratio. Tier 1 Common(2) Bank of Nevada 11.9% 11.9% Western Alliance Bank 9.7% 11.0% Torrey Pines Bank 9.9% 11.0% WAL 8.1% 8.6% Subsidiary Dividend CapacityWestern
Slide 18: Outlook 2012
Loan and deposit growth Net interest margin Efficiency ratio Asset quality Branch strategy Outlook 2012
Slide 19: Question & Answer
WA WESTERN ALLIANCE BANCORFORATION’ Question & Answer
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