Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q1 2017 Earnings Presentation
15 slides from Western Alliance Bancorporation's earnings presentation, Apr 20, 2017
Slide 1: Earnings Call 1st Quarter 2017
Earnings Call 1st Quarter 2017 April 21, 2017
Slide 2: Q1 2017 Financial Highlights
2 Financial Highlights ▪ Net income of $73.4 million and earnings per share of $0.70, compared to $69.8 million and $0.67 per share for Q4 2016, and $61.3 million and $0.60 per share for Q1 2016 ▪ Net interest margin of 4.63%, compared to 4.57% in Q4 2016, and 4.58% in Q1 2016 ▪ Operating efficiency
Slide 3: Quarterly Consolidated Financial Results
3 Quarterly Consolidated Financial Results $ in millions, except EPS Q1 2017 Highlights ▪ Net Interest Income increased primarily as a result of higher yields on loans and securities from rising interest rates ▪ Operating Non-Interest Expense increased due to higher professional fees and compensatio
Slide 4: Net Interest Drivers
4 Net Interest Drivers $ in billions, unless otherwise indicated Interest Bearing Deposits and Cost of Funds Loans and Yield Borrowings and Cost of Borrowings Q1 2017 Highlights ▪ Loan yield increased due to higher yields on C&I and CRE loans, reflecting an increase in accretion on acquired loans an
Slide 5: Net Interest Income and Accretion
5 Net Interest Income and Accretion $ in millions Q1 2017 Highlights ▪ NIM increased 6 basis points to 4.63% quarter-over- quarter as a result of rising interest rates and non- interest bearing DDA growth ▪ Adjusted NIM for acquired loan accretion was 4.48% for the quarter, an increase of 8 basis po
Slide 6: Operating Expenses and Efficiency
6 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 $44.9 $44.7 $49.5 $49.7 $51.6 $9.6 $10.2 $10.0 $10.4 $10.1$9.6 $10.9 $10.7 $12.1 $14.1$11.7 $12.0 $12.2 $10.5 Operating Expenses and Efficiency $ in millions Q1 2017 Highlights ▪ The operating efficiency ratio increased from 42.4% in Q4 2016 to 44.4% due to higher pro
Slide 7: Operating Pre-Provision Net Revenue, Net Income, and ROA
7 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 $61.3 $61.6 $67.1 $69.8 $73.4 1.70% 1.55% 1.58% 1.63% 1.69% Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions Operating Pre-Provision Net Revenue and Operating PPNR ROA Net Income and ROA Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 $82.1 $94.5 $100.8 $103.1 $10
Slide 8: Consolidated Balance Sheet
8 Consolidated Balance Sheet $ in millions ▪ Loans increased 3.4% over prior quarter and 21.6% over prior year ▪ Deposits increased 5.5% over prior quarter and 17.4% over prior year ▪ Loan to Deposit Ratio of 89.0%, compared to 90.8% in prior quarter and 85.9% in prior year ▪ Shareholders' Equity in
Slide 9: Loan Growth and Portfolio Composition
9 Loan Growth and Portfolio Composition $ in millions Q1 2017 Highlights ▪ Quarter-over-quarter loan growth driven by: ◦ C&I $198 million ◦ Construction & Land $124 million ◦ Residential $55 million ▪ Year-over-year loan growth driven by: ◦ CRE, Non-OO $1.32 billion* ◦ C&I $676 million $2.42 Billion
Slide 10: Deposit Growth and Composition
10 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 $4,635 $5,275 $5,625 $5,633 $6,114 $1,088 $1,278 $1,257 $1,347 $1,449 $5,651 $6,006 $5,969 $6,121 $6,254 $1,708 $1,642 $1,592 $1,449 $1,539 Deposit Growth and Composition $ in millions Q1 2017 Highlights ▪ Quarter-over-quarter deposit growth across all deposit types:
Slide 11: Adversely Graded Loans and Non-Performing Assets
11 Adversely Graded Assets to Total Assets NPAs to Total Assets Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 2.11% 2.24% 2.03% 2.07% 2.25% 0.57% 0.54% 0.53% 0.51% 0.44% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 $53 $50 $50 $48 $45 $34 $40 $41 $40 $34 $9
Slide 12: Charge-Offs, Recoveries, ALLL, and Provision
12 Gross Charge-Offs Recoveries Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 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 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 1.21% 1.42% 1
Slide 13: Capital Ratios and ROTCE and TBV/Share
13 ROTCE TBV/Share Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 18.4% 17.5% 17.6% 17.8% $13.16 $14.25 $14.84 $15.17 $15.86 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 12.3% 12.9% 13.1% 13.2% 13.2% 9.9% 9.6% 9.8% 10.0% 10.1%9.9% 9.8% 9.9% 10.2% 9.1
Slide 14: Outlook 2nd Quarter 2017
14 Outlook 2nd Quarter 2017 ▪ Loan and Deposit Growth ▪ Interest Margin ▪ Operating Efficiency ▪ Asset Quality 14
Slide 15: Forward-Looking Statements
15 Forward-Looking Statements 15 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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