Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q4 2011 Earnings Presentation
28 slides from Western Alliance Bancorporation's earnings presentation, Jan 19, 2012
Slide 1: 4th Quarter 2011 Earnings Call
Ken VecchionePresident & COODale GibbonsExecutive Vice President & CFO 4th Quarter 2011 Earnings Call Western Alliance Bancorporation (NYSE: WAL) January 20, 2012
Slide 2: Forward-Looking Information
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 cont
Slide 3: 4th Quarter 2011 Financial Highlights
4th Quarter 2011 Financial Highlights Expanding Earning PowerNet income of $7.1 million, compared to net loss of $10.8 million last yearNet interest income of $68.7 million, up $7.8 million or 12.8% from last yearNet interest margin of 4.51%, compared to 4.29% in prior quarter and 4.26% last yearPre
Slide 4: Full Year 2011 Financial Highlights
Full Year 2011 Financial Highlights Expanding Earning PowerNet income of $31.5 million, compared to net loss of $7.2 million last yearNet interest income of $257.7 million, up $25.1 million, or 10.8% from last yearNet interest margin of 4.37% compared to 4.23% last yearPre-tax, pre-credit income of
Slide 5: Summary of Achievements
Summary of Achievements Q4 2011 Record loan growthRecord net interest incomeTenth consecutive quarter of Pre-Tax Pre-Credit Income growthRepurchased TARP warrants, precluding further share dilutionCommenced dividends to parent company from TPB and WAB Calendar 2011Completed bank integration, reducin
Slide 6: Bank of Nevada Key Financial Metrics
Bank of Nevada Key Financial Metrics ($ in millions) (1) Reported on a tax-equivalent basis (2) Operating expenses exclude goodwill impairment, merger related expenses and gains/losses on sale of repossessed assets. ($ in millions) Operating Expense(2)
Slide 7: Bank of Nevada Key Financial Metrics (cont'd)
Bank of Nevada Key Financial Metrics (cont’d) Provision Expense ($ in millions) (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
Slide 8: Western Alliance Bank Key Financial Metrics
Western Alliance Bank Key Financial Metrics Body: (1) Reported on a tax-equivalent basis (2) Operating expenses exclude goodwill impairment, merger related expenses and gains/losses on sale of repossessed assets. ($ in millions) ($ in millions) Operating Expense(2)
Slide 9: Western Alliance Bank Key Financial Metrics (cont'd)
Western Alliance Bank Key Financial Metrics (cont’d) Body: (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 Provision Expense ($ in millions)
Slide 10: Torrey Pines Bank Key Financial Metrics
Torrey Pines Bank Key Financial Metrics ($ in millions) (1) Reported on a tax-equivalent basis (2) Operating expenses exclude goodwill impairment, merger related expenses and gains/losses on sale of repossessed assets. ($ in millions) Operating Expense(2)
Slide 11: Torrey Pines Bank Key Financial Metrics (cont'd)
Torrey Pines Bank Key Financial Metrics (cont’d) ($ in millions) Provision Expense (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
Slide 12: 2010 vs. 2011 Loan Portfolio Summary
2010 vs. 2011 Loan Portfolio Summary (in millions) 2011 Loan Growth of $540 Million, primarily in CRE and Commercial
Slide 13: 4th Quarter Change in Total Loans by Grade
4th Quarter Change in Total Loans by Grade 4th Quarter net increase in Total Loans of $254 million (Gp:) Pass Watch (Gp:) Classified
Slide 14: Change in Composition of Pass Credits
Change in Composition of Pass Credits 12/31/10 12/31/11
Slide 15: 2010 vs. 2011 Deposit Summary
2010 vs. 2011 Deposit Summary 2011 Deposit Growth of $320 Million (in millions)
Slide 16: 4th Quarter Net Income Comparison
4th Quarter Net Income Comparison Body: (1) ) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment securities and repossessed assets, merger related expenses and gain on extinguishment of debt
Slide 17: 2011 Net Income Comparison
2011 Net Income Comparison Body: (1) ) Excludes securities and goodwill impairment, mark-to-market gains/losses, gains/losses on sale of investment securities and repossessed assets, merger related expenses and gain on extinguishment of debt
Slide 18: WAL Key Financial Metrics
WAL Key Financial Metrics ($ in millions) (1) Reported on a tax-equivalent basis (2) Operating expenses exclude goodwill impairment, merger related expenses and gains/losses on sale of repossessed assets. ($ in millions) Operating Expense(2)
Slide 19: WAL Key Financial Metrics (cont'd)
WAL Key Financial Metrics (cont’d) Body: (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 Provision Expense ($ in millions)
Slide 20: Net Interest Margin Summary
Net Interest Margin Summary (1) Reported on a tax-equivalent basis. (in billions)
Slide 21: Net Interest Margin Analysis
NIM grew from 4.29% in Q3 to 4.51% in Q4, an increase of 22 bps. Net Interest Margin Analysis Decline in cost of liabilities more than offset decline in loan yields; 2 bps net benefitReducing cash and reinvesting into higher yielding loans and securities added 16 bpsTax benefits from increased munic
Slide 22: WAL Key Financial Metrics
WAL Key Financial Metrics ($ in billions) (1) Reported on a tax-equivalent basis (2) Operating expenses exclude goodwill impairment, merger related expenses and gains/losses on sale of repossessed assets. ($ in billions) ($ in billions) $ in millions
Slide 23: Decline in Problem Loans & Repossessed Assets
Decline in Problem Loans & Repossessed Assets(1) Body: (1) Classified Accruing Loans are reported net of loans already counted as NPAs. (in millions)
Slide 24: SBLF Dividend Rate
SBLF Dividend Rate ($ in millions) SBLF qualifying loan growth exceeded baseline by $91.5 million which is expected to result in a dividend rate of 3.7% for second quarter 2012
Slide 25: OREO Summary @ 12/31/11
OREO Summary @ 12/31/11(1) Body: (1) Excludes other repossessed assets of $0.8 million. (2) Includes charge-offs that were booked to the Loan Loss Reserve.
Slide 26: Capital and Parent Liquidity
Capital and Parent Liquidity(1) Body: (1) Capital ratios are considered estimates until Call Reports are filed. (2) Tier 1 Common is a non-GAAP ratio. ($ in millions) Q4-10 Q4-11
Slide 27: Outlook 2012
Loan and deposit growthNet interest marginEfficiency ratioAsset QualityBranch Strategy Title: Outlook 2012
Slide 28: Question & Answer
WA MME IAL pean E Question & Answer
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