Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q4 2016 Earnings Presentation
16 slides from Western Alliance Bancorporation's earnings presentation, Jan 26, 2017
Slide 1: Earnings Call 4th Quarter 2016
Earnings Call 4th Quarter 2016 January 27, 2017
Slide 2: Financial Highlights
2 Financial Highlights ▪ Net income of $69.8 million and earnings per share of $0.67 (inclusive of $0.03 in acquisition / restructure expense), compared to $67.1 million and $0.64 per share for Q3 2016 (inclusive of $0.02 in acquisition / restructure expense), and $58.5 million and $0.57 per share f
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results $ in millions, except EPS Q4 2016 HIGHLIGHTS ▪ Net Interest Income increased $2.8 million as a result of loan growth and an increase in investment securities ▪ Operating Non-Interest Expense increased $0.3 million ▪ Acquisition / Restructure Expense include
Slide 4: Annual Consolidated Financial Results
4 Annual Consolidated Financial Results $ in millions, except EPS 2016 HIGHLIGHTS ▪ Net Interest Income increased $164.6 million (33.4%) commensurate to growth in loans of 18.6% and in deposits of 20.9% ▪ Growth in Net Operating Revenue of 34.0% outpaced growth in Operating Non-Interest Expense of 2
Slide 5: Net Interest Drivers
5 Net Interest Drivers $ in billions, unless otherwise indicated Interest Bearing Deposits and Cost of Funds Loans and Yield Borrowings and Cost of Borrowings Q4 2016 HIGHLIGHTS ▪ Loan yield decreased due to lower yields on CRE loans ▪ Cost of funds decreased one basis point for interest-bearing dep
Slide 6: Net Interest Income and Accretion
6 Net Interest Income and Accretion $ in millions Q4 2016 HIGHLIGHTS ▪ NIM increased 2 basis points to 4.57% quarter-over- quarter ▪ Adjusted NIM for acquired loan accretion was 4.40% for the quarter, compared to reported NIM of 4.57% Net Interest Income and NIM Acquired Loan Accretion and Adjusted
Slide 7: Operating Expenses and Efficiency
7 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 $41.2 $44.9 $44.7 $49.5 $49.7 $9.8 $9.6 $10.2 $10.0 $10.4$10.0 $9.6 $10.9 $10.7 $12.1$11.8 $11.7 $12.0 $12.2 $10.5 Operating Expenses and Efficiency $ in millions Q4 2016 HIGHLIGHTS ▪ The operating efficiency ratio decreased from 43.0% in Q3 2016 to 42.4% ▪ Operating
Slide 8: Operating Pre-Provision Net Revenue, Net Income, and ROA
8 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 $58.5 $61.3 $61.6 $67.1 $69.8 1.67% 1.70% 1.58% 1.63% Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions ▪ ROA increased from the prior quarter due to an increase in net interest income resulting from the deployment of excess cash into the purchase
Slide 9: Consolidated Balance Sheet
9 Consolidated Balance Sheet $ in millions ▪ Loans increased $175 million over prior quarter and $2.07 billion (18.6%) over prior year ▪ Deposits increased $107 million (7.4%) over prior quarter and $2.52 billion (20.9%) over prior year ▪ Shareholders' Equity increased $35 million as a function of N
Slide 10: Loan Growth and Portfolio Composition
10 Loan Growth and Portfolio Composition $ in millions Q4 2016 HIGHLIGHTS ▪ Quarter-over-quarter loan growth driven by: ◦ C&I $141 million ◦ Construction & Land $98 million ▪ Year-over-year loan growth driven by: ◦ CRE, Non-OO $1.26 billion ◦ C&I $593 million $2.07 BILLION YEAR OVER YEAR GROWTH Q4-1
Slide 11: Deposit Growth and Composition
11 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 $4,094 $4,635 $5,275 $5,625 $5,633 $1,028 $1,088 $1,278 $1,257 $1,347 $5,297 $5,651 $6,006 $5,969 $6,121 $1,611 $1,708 $1,642 $1,592 $1,449 Deposit Growth and Composition $ in millions Q4 2016 HIGHLIGHTS ▪ Quarter-over-quarter deposit growth driven by: ◦ Savings and
Slide 12: Adversely Graded Loans and Non-Performing Assets
12 Adversely Graded Assets to Total Assets NPAs to Total Assets Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 2.54% 2.11% 2.24% 2.03% 2.07% 0.65% 0.57% 0.54% 0.53% 0.51% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 $44 $53 $50 $50 $48 $48 $34 $40 $41 $40 $1
Slide 13: Charge-Offs, Recoveries, ALLL, and Provision
13 Gross Charge-Offs Recoveries Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs and Recoveries Net Recoveries / Charge-Offs and Rate ALLL+CD/Total Loans Provision for Credit Losses ALLL/Total Loans Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 1.25% 1.42% 1
Slide 14: Capital Ratios and ROTCE and TBV/Share
14 ROTCE TBV/Share Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 18.6% 18.4% 17.4% 17.5% 17.6% $12.54 $13.16 $14.25 $14.84 $15.17 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 12.2% 12.3% 12.9% 13.1% 13.2% 9.7% 9.9% 9.6% 9.8% 10.0% 9.8% 9.9% 9.8% 9.6
Slide 15: Outlook 1st Quarter 2017
15 Outlook 1st Quarter 2017 ▪ Loan and Deposit Growth ▪ Interest Margin ▪ Operating Efficiency ▪ Asset Quality 15
Slide 16: Forward-Looking Statements
16 Forward-Looking Statements 16 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 s
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