We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Western Alliance Bancorporation | NYSE:WAL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.635 | 1.02% | 62.695 | 62.85 | 62.2001 | 62.41 | 89,543 | 16:00:20 |
Western Alliance Bancorporation (NYSE:WAL):
FIRST QUARTER 2024 FINANCIAL RESULTS
Quarter Highlights:
Net income
Earnings per share
PPNR1
Net interest margin
Efficiency ratio
Book value per
common share
$177.4 million
$1.60
$247.0 million
3.60%
65.2%
$53.33
$190.9 million1, excluding notable items
$1.721, excluding notable items
54.4%1, adjusted for deposit costs and notable items
$47.301, excluding
goodwill and intangibles
CEO COMMENTARY:
“Western Alliance delivered strong first quarter results with continued robust business and deposit momentum that allowed us to largely complete our balance sheet repositioning efforts, while maintaining stable asset quality,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly deposit growth of $6.9 billion enhanced our liquidity profile, drove the loan-to-deposit ratio down to 81.5%, and allowed us to repay $1.0 billion of borrowings. In total, excluding a $17.6 million increase to the FDIC special assessment and related tax impact, we achieved net income of $190.9 million1 and earnings per share of $1.721, which resulted in a return on tangible common equity of 14.5%1. Tangible book value per share1 climbed 13.8% year-over-year to $47.30 with a CET 1 ratio of 11.0%.”
LINKED-QUARTER BASIS
YEAR-OVER-YEAR
FINANCIAL HIGHLIGHTS:
FINANCIAL POSITION RESULTS:
LOANS AND ASSET QUALITY:
KEY PERFORMANCE METRICS:
1
See reconciliation of Non-GAAP Financial Measures.
Income Statement
Net interest income totaled $598.9 million in the first quarter 2024, an increase of $7.2 million, or 1.2%, from $591.7 million in the fourth quarter 2023, and a decrease of $11.0 million, or 1.8%, compared to the first quarter 2023. The increase in net interest income from the fourth quarter 2023 is due to a decrease in average short-term borrowings combined with an increase in average HFS loan and securities balances, partially offset by an increase in deposit balances and rates. The decrease in net interest income from the first quarter 2023 was driven by an increase in both the balances and rates of deposits, partially offset by higher yields on HFI loans and a higher average securities balance.
The Company recorded a provision for credit losses of $15.2 million in the first quarter 2024, an increase of $5.9 million from $9.3 million in the fourth quarter 2023, and a decrease of $4.2 million from $19.4 million in the first quarter 2023. The provision for credit losses during the first quarter 2024 is primarily reflective of loan growth, net-charge offs of $9.8 million and a stable economic outlook.
The Company’s net interest margin in the first quarter 2024 was 3.60%, a decrease from 3.65% in the fourth quarter 2023, and a decrease from 3.79% in the first quarter 2023. Lower yields on average earning assets drove a decrease in net interest margin from the fourth quarter 2023. The decrease in net interest margin from the first quarter 2023 was driven by higher average balances and rates on deposits, partially offset by higher yields on HFI loan balances and a higher average securities balance.
Non-interest income was $129.9 million for the first quarter 2024, compared to $90.5 million for the fourth quarter 2023, and $(58.0) million for the first quarter 2023. The $39.4 million increase in non-interest income from the fourth quarter 2023 was primarily due to an increase of $37.3 million in net loan servicing revenue due to higher servicing income and fair value changes combined with lower losses on sales of investment securities of $13.9 million. These changes were partially offset by a $12.8 million decrease in service charges and fees and a $2.5 million decrease in net gain on loan origination and sale activities from lower spreads. The $187.9 million increase in non-interest income from the first quarter 2023 was primarily driven by fair value loss adjustments in the first quarter 2023 due to the Company's balance sheet repositioning efforts that did not reoccur, paired with higher income from equity investments and net gain on loan origination and sale activities.
Net revenue totaled $728.8 million for the first quarter 2024, an increase of $46.6 million or 6.8%, compared to $682.2 million for the fourth quarter 2023, and an increase of $176.9 million or 32.1%, compared to $551.9 million for the first quarter 2023.
Non-interest expense was $481.8 million for the first quarter 2024, compared to $461.9 million for the fourth quarter 2023, and $347.9 million for the first quarter 2023. The Company’s efficiency ratio, adjusted for deposit costs1 was 57.3% (or 54.4% further adjusted for notable items1) for the first quarter 2024, compared to 59.1% in the fourth quarter 2023, and 55.1% for the first quarter 2023. The increase in non-interest expense from the fourth quarter 2023 is due primarily to a $39.3 million gain on debt extinguishment related to the early payoff of the AmeriHome senior notes in the fourth quarter 2023 that did not reoccur, combined with increased salaries and benefits of $20.3 million due to seasonal compensation costs, partially offset by a decrease in insurance cost of $49.7 million due to the higher FDIC special assessment recognized in the fourth quarter 2023. The increase in non-interest expense from the first quarter 2023 is primarily attributable to an increase in deposit and insurance costs.
Income tax expense was $54.4 million for the first quarter 2024, compared to $63.1 million for the fourth quarter 2023, and $42.4 million for the first quarter 2023. The decrease in income tax expense from the fourth quarter 2023 is primarily related to the timing of benefits from Low Income Housing Tax Credit investments.
Net income was $177.4 million for the first quarter 2024, an increase of $29.5 million from $147.9 million for the fourth quarter 2023, and an increase of $35.2 million from $142.2 million for the first quarter 2023. Earnings per share totaled $1.60 for the first quarter 2024, compared to $1.33 for the fourth quarter 2023, and $1.28 for the first quarter 2023.
The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the first quarter 2024, the Company’s PPNR1 was $247.0 million, up $26.7 million from $220.3 million in the fourth quarter 2023, and up $43.0 million from $204.0 million in the first quarter 2023.
The Company had 3,312 full-time equivalent employees and 56 offices at March 31, 2024, compared to 3,260 full-time equivalent employees and 57 offices at December 31, 2023, and 3,340 full-time equivalent employees and 57 offices at March 31, 2023.
1
See reconciliation of Non-GAAP Financial Measures.
Balance Sheet
HFI loans, net of deferred fees totaled $50.7 billion at March 31, 2024, compared to $50.3 billion at December 31, 2023, and $46.4 billion at March 31, 2023. The increase in HFI loans of $403 million from the prior quarter was primarily driven by an increase of $646 million in commercial and industrial loans, partially offset by decreases of $154 million and $108 million in residential real estate and construction and land development loans, respectively. The increase in HFI loans of $4.3 billion from March 31, 2023 was primarily driven by a $4.2 billion and $374 million increase in commercial and industrial and construction and land development loans, respectively. This increase was partially offset by a $400 million decrease in residential real estate loans. HFS loans totaled $1.8 billion at March 31, 2024, compared to $1.4 billion at December 31, 2023, and $7.0 billion at March 31, 2023. The balance of HFS loans at March 31, 2024 and December 31, 2023 primarily consisted of AmeriHome HFS loans. The increase of $439 million in HFS loans from the prior quarter is primarily related to an increase in agency conforming loans. The decrease of $5.2 billion in HFS loans from March 31, 2023 primarily related to the sale and disposition of loans during 2023 related to the Company's balance sheet repositioning strategy.
The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. At March 31, 2024, the allowance for loan losses to funded HFI loans ratio was 0.67%, flat from December 31, 2023, and 0.66% at March 31, 2023. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.74% at March 31, 2024, compared to 0.73% at December 31, 2023, and 0.75% at March 31, 2023. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $9.0 billion, $9.1 billion, and $9.8 billion as of March 31, 2024, December 31, 2023, and March 31, 2023, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $14.2 million as of March 31, 2024, $14.7 million as of December 31, 2023, and $20.8 million as of March 31, 2023. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 0.90% at March 31, 2024, 0.89% at December 31, 2023, and 0.95% at March 31, 2023.
Deposits totaled $62.2 billion at March 31, 2024, an increase of $6.9 billion from $55.3 billion at December 31, 2023, and an increase of $14.6 billion from $47.6 billion at March 31, 2023. By deposit type, the increase from the prior quarter is attributable to increases of $3.9 billion from non-interest bearing demand deposits, $1.4 billion from savings and money market deposits, $1.0 billion from interest-bearing demand deposits, and $564 million from certificates of deposits. From March 31, 2023, interest-bearing demand deposits increased $6.2 billion, certificates of deposit increased $4.1 billion, savings and money market deposits increased $2.3 billion, and non-interest bearing demand deposits increased $1.9 billion. Non-interest bearing deposits were $18.4 billion at March 31, 2024, compared to $14.5 billion at December 31, 2023, and $16.5 billion at March 31, 2023.
The table below shows the Company's deposit types as a percentage of total deposits:
Mar 31, 2024
Dec 31, 2023
Mar 31, 2023
Non-interest bearing
29.6
%
26.2
%
34.6
%
Savings and money market
26.0
26.7
29.1
Interest-bearing demand
27.3
28.8
22.5
Certificates of deposit
17.1
18.3
13.8
The Company’s ratio of HFI loans to deposits was 81.5% at March 31, 2024, compared to 90.9% at December 31, 2023, and 97.6% at March 31, 2023.
Borrowings were $6.2 billion at March 31, 2024, $7.2 billion at December 31, 2023, and $15.9 billion at March 31, 2023. Borrowings decreased $1.0 billion from December 31, 2023, primarily due to a decrease in short-term borrowings. The decrease in borrowings from March 31, 2023 is due primarily to a decrease in short-term borrowings of $9.0 billion, combined with payoffs of the AmeriHome senior notes and credit linked notes, as part of the Company's balance sheet repositioning.
Qualifying debt totaled $896 million at March 31, 2024, compared to $895 million at December 31, 2023 and March 31, 2023.
Stockholders’ equity was $6.2 billion at March 31, 2024, compared to $6.1 billion at December 31, 2023 and $5.5 billion at March 31, 2023. The increase in stockholders’ equity from the prior quarter was due to net income, partially offset by unrealized fair value losses of $88 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax, and dividends to shareholders. Cash dividends of $40.7 million ($0.37 per common share) and $3.2 million ($0.27 per depository share) were paid to shareholders during the first quarter 2024. The increase in stockholders' equity from March 31, 2023 is primarily a function of net income, partially offset by dividends to shareholders.
The Company's common equity tier 1 capital ratio was 11.0% at March 31, 2024, compared to 10.8% and 9.4% at December 31, 2023 and March 31, 2023, respectively. At March 31, 2024, tangible common equity, net of tax1, was 6.8% of tangible assets1 and total capital was 14.0% of risk-weighted assets. The Company’s tangible book value per share1 was $47.30 at March 31, 2024, an increase of 1.2% from $46.72 at December 31, 2023, and an increase of 13.8% from $41.56 at March 31, 2023. The increase in tangible book value per share from December 31, 2023 and March 31, 2023 is attributable to net income.
Total assets increased 8.6% to $77.0 billion at March 31, 2024 from $70.9 billion at December 31, 2023, and increased 8.4% from $71.0 billion at March 31, 2023. The increase in total assets from December 31, 2023 was primarily driven by an increase in investments and cash. The increase in total assets from March 31, 2023 was primarily driven by an increase in investments and HFI loans, partially offset by a decrease in HFS loans.
1
See reconciliation of Non-GAAP Financial Measures.
Asset Quality
Provision for credit losses totaled $15.2 million for the first quarter 2024, compared to $9.3 million for the fourth quarter 2023, and $19.4 million for the first quarter 2023. Net loan charge-offs in the first quarter 2024 were $9.8 million, or 0.08% of average loans (annualized), compared to $8.5 million, or 0.07%, in the fourth quarter 2023, and $6.0 million, or 0.05%, in the first quarter 2023.
Nonaccrual loans increased $126 million to $399 million during the quarter and increased $292 million from March 31, 2023. Loans past due 90 days and still accruing interest totaled $6 million at March 31, 2024, $42 million at December 31, 2023, and $1 million at March 31, 2023 (excluding government guaranteed loans of $349 million, $399 million, and $494 million, respectively). Loans past due 30-89 days and still accruing interest totaled $117 million at March 31, 2024, a decrease from $164 million at December 31, 2023, and an increase from $58 million at March 31, 2023 (excluding government guaranteed loans of $224 million, $279 million, and $281 million, respectively).
Repossessed assets totaled $8 million at March 31, 2024, flat from December 31, 2023, and a decrease of $3 million from March 31, 2023. Classified assets totaled $781 million at March 31, 2024, an increase of $108 million from $673 million at December 31, 2023, and an increase of $322 million from $459 million at March 31, 2023.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 12.0% at March 31, 2024, compared to 10.5% at December 31, 2023, and 7.8% at March 31, 2023.
1
See reconciliation of Non-GAAP Financial Measures.
2
The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.Segment Highlights
The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:
Key management metrics for evaluating the performance of the Company's Commercial and Consumer Related segments include loan and deposit growth, asset quality, and pre-tax income.
The Commercial segment reported an HFI loan balance of $29.6 billion at March 31, 2024, an increase of $506 million during the quarter, and an increase of $2.4 billion during the last twelve months. Loans held for sale totaled zero at March 31, 2024 and December 31, 2023, compared to $4.7 billion as of March 31, 2023 as the Company executed its balance sheet repositioning strategy. Deposits for the Commercial segment totaled $25.1 billion at March 31, 2024, an increase of $1.2 billion during the quarter, and an increase of $3.2 billion during the last twelve months.
Pre-tax income for the Commercial segment was $143.6 million for the three months ended March 31, 2024, a decrease of $24.8 million from the three months ended December 31, 2023, and a decrease of $15.8 million from the three months ended March 31, 2023.
The Consumer Related segment reported an HFI loan balance of $21.1 billion at March 31, 2024, a decrease of $103 million during the quarter, and an increase of $1.9 billion during the last twelve months. The Consumer Related segment also had loans held for sale of $1.8 billion at March 31, 2024, an increase of $439 million during the quarter, and a decrease of $449 million during the last twelve months. Deposits for the Consumer Related segment totaled $30.5 billion, an increase of $5.6 billion during the quarter, and an increase of $10.5 billion during the last twelve months.
Pre-tax income for the Consumer Related segment was $92.8 million for the three months ended March 31, 2024, an increase of $17.2 million from the three months ended December 31, 2023, and an increase of $36.0 million from the three months ended March 31, 2023.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2024 financial results at 12:00 p.m. ET on Friday, April 19, 2024. Participants may access the call by dialing 1-833-470-1428 and using access code 075340 or via live audio webcast using the website link https://events.q4inc.com/attendee/894297638. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET April 19th through 11:59 p.m. ET May 19th by dialing 1-866-813-9403, using access code 742981.
Reclassifications
Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.
Use of Non-GAAP Financial Information
This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Cautionary Note Regarding Forward-Looking Statements
This release 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 statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the bank failures in 2023 and any related impact on depositor behavior; risks related to the sufficiency of liquidity; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.
About Western Alliance Bancorporation
With more than $70 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, clients benefit from a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2023 by American Banker and Bank Director and receiving #1 rankings on Institutional Investor's All-America Executive Team Midcap 2023-2024 for Best CEO, Best CFO, Best Company Board of Directors and Best Investor Relations Team. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit westernalliancebank.com.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of March 31,
2024
2023
Change %
(in millions)
Total assets
$
76,989
$
71,047
8.4
%
Loans held for sale
1,841
7,022
(73.8
)
HFI loans, net of deferred fees
50,700
46,435
9.2
Investment securities
16,092
9,105
76.7
Total deposits
62,228
47,587
30.8
Borrowings
6,221
15,853
(60.8
)
Qualifying debt
896
895
0.1
Stockholders' equity
6,172
5,521
11.8
Tangible common equity, net of tax (1)
5,213
4,551
14.5
Common equity Tier 1 capital
5,787
5,159
12.2
Selected Income Statement Data:
For the Three Months Ended March 31,
2024
2023
Change %
(in millions, except per share data)
Interest income
$
1,055.0
$
968.9
8.9
%
Interest expense
456.1
359.0
27.0
Net interest income
598.9
609.9
(1.8
)
Provision for credit losses
15.2
19.4
(21.6
)
Net interest income after provision for credit losses
583.7
590.5
(1.2
)
Non-interest income
129.9
(58.0
)
NM
Non-interest expense
481.8
347.9
38.5
Income before income taxes
231.8
184.6
25.6
Income tax expense
54.4
42.4
28.3
Net income
177.4
142.2
24.8
Dividends on preferred stock
3.2
3.2
—
Net income available to common stockholders
$
174.2
$
139.0
25.3
Diluted earnings per common share
$
1.60
$
1.28
25.0
(1)
See Reconciliation of Non-GAAP Financial Measures.
NMChanges +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended March 31,
2024
2023
Change %
Diluted earnings per common share
$
1.60
$
1.28
25.0
%
Book value per common share
53.33
47.72
11.8
Tangible book value per common share, net of tax (1)
47.30
41.56
13.8
Average common shares outstanding (in millions):
Basic
108.5
108.2
0.3
Diluted
109.0
108.3
0.6
Common shares outstanding
110.2
109.5
0.6
Selected Performance Ratios:
Return on average assets (2)
0.98
%
0.81
%
21.0
%
Return on average tangible common equity (1, 2)
13.4
12.2
9.8
Net interest margin (2)
3.60
3.79
(5.0
)
Efficiency ratio, adjusted for deposit costs (1)
57.3
55.1
4.0
HFI loan to deposit ratio
81.5
97.6
(16.5
)
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)
0.08
%
0.05
%
60.0
%
Nonaccrual loans to funded HFI loans
0.79
0.23
NM
Nonaccrual loans and repossessed assets to total assets
0.53
0.17
NM
Allowance for loan losses to funded HFI loans
0.67
0.66
1.5
Allowance for loan losses to nonaccrual HFI loans
85
286
(70.2
)
Capital Ratios:
Mar 31, 2024
Dec 31, 2023
Mar 31, 2023
Tangible common equity (1)
6.8
%
7.3
%
6.5
%
Common Equity Tier 1 (3)
11.0
10.8
9.4
Tier 1 Leverage ratio (3)
8.5
8.6
7.8
Tier 1 Capital (3)
11.7
11.5
10.1
Total Capital (3)
14.0
13.7
12.1
(1)
See Reconciliation of Non-GAAP Financial Measures.
(2)
Annualized on an actual/actual basis for periods less than 12 months.(3)
Capital ratios for March 31, 2024 are preliminary.NM
Changes +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended March 31,
2024
2023
(dollars in millions, except per share data)
Interest income:
Loans
$
871.9
$
832.7
Investment securities
144.0
96.1
Other
39.1
40.1
Total interest income
1,055.0
968.9
Interest expense:
Deposits
380.6
231.6
Qualifying debt
9.5
9.3
Borrowings
66.0
118.1
Total interest expense
456.1
359.0
Net interest income
598.9
609.9
Provision for credit losses
15.2
19.4
Net interest income after provision for credit losses
583.7
590.5
Non-interest income:
Net loan servicing revenue
46.4
41.9
Net gain on loan origination and sale activities
45.3
31.4
Income from equity investments
17.1
1.4
Service charges and fees
9.9
9.5
Commercial banking related income
6.5
6.2
Fair value gain (loss) adjustments, net
0.3
(147.8
)
(Loss) gain on recovery from credit guarantees
(0.5
)
3.3
(Loss) gain on sales of investment securities
(0.9
)
(12.5
)
Other
5.8
8.6
Total non-interest income
129.9
(58.0
)
Non-interest expenses:
Salaries and employee benefits
154.9
148.9
Deposit costs
137.0
86.9
Insurance
58.9
15.7
Data processing
36.0
26.4
Legal, professional, and directors' fees
30.1
23.1
Occupancy
17.5
16.5
Loan servicing expenses
15.0
13.8
Business development and marketing
5.5
5.2
Loan acquisition and origination expenses
4.8
4.4
Net (gain) loss on sales and valuations of repossessed and other assets
(0.4
)
—
Gain on extinguishment of debt
—
(12.7
)
Other
22.5
19.7
Total non-interest expense
481.8
347.9
Income before income taxes
231.8
184.6
Income tax expense
54.4
42.4
Net income
177.4
142.2
Dividends on preferred stock
3.2
3.2
Net income available to common stockholders
$
174.2
$
139.0
Earnings per common share:
Diluted shares
109.0
108.3
Diluted earnings per share
$
1.60
$
1.28
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
(in millions, except per share data)
Interest income:
Loans
$
871.9
$
859.0
$
860.8
$
857.2
$
832.7
Investment securities
144.0
136.2
122.8
112.4
96.1
Other
39.1
43.8
43.0
31.2
40.1
Total interest income
1,055.0
1,039.0
1,026.6
1,000.8
968.9
Interest expense:
Deposits
380.6
343.7
316.2
251.1
231.6
Qualifying debt
9.5
9.6
9.5
9.5
9.3
Borrowings
66.0
94.0
113.9
189.9
118.1
Total interest expense
456.1
447.3
439.6
450.5
359.0
Net interest income
598.9
591.7
587.0
550.3
609.9
Provision for credit losses
15.2
9.3
12.1
21.8
19.4
Net interest income after provision for credit losses
583.7
582.4
574.9
528.5
590.5
Non-interest income:
Net loan servicing revenue
46.4
9.1
27.2
24.1
41.9
Net gain on loan origination and sale activities
45.3
47.8
52.0
62.3
31.4
Income from equity investments
17.1
13.1
0.5
0.7
1.4
Service charges and fees
9.9
22.7
23.3
20.8
9.5
Commercial banking related income
6.5
5.9
5.6
6.0
6.2
Fair value gain (loss) adjustments, net
0.3
1.3
17.8
12.7
(147.8
)
(Loss) gain on recovery from credit guarantees
(0.5
)
(2.7
)
(4.0
)
1.2
3.3
(Loss) gain on sales of investment securities
(0.9
)
(14.8
)
0.1
(13.6
)
(12.5
)
Other
5.8
8.1
6.7
4.8
8.6
Total non-interest income
129.9
90.5
129.2
119.0
(58.0
)
Non-interest expenses:
Salaries and employee benefits
154.9
134.6
137.2
145.6
148.9
Deposit costs
137.0
131.0
127.8
91.0
86.9
Insurance
58.9
108.6
33.1
33.0
15.7
Data processing
36.0
33.1
33.9
28.6
26.4
Legal, professional, and directors' fees
30.1
29.4
28.3
26.4
23.1
Occupancy
17.5
16.9
16.8
15.4
16.5
Loan servicing expenses
15.0
14.7
11.9
18.4
13.8
Business development and marketing
5.5
6.7
4.9
5.0
5.2
Loan acquisition and origination expenses
4.8
4.8
5.6
5.6
4.4
Net (gain) loss on sales and valuations of repossessed and other assets
(0.4
)
0.3
2.2
0.5
—
Gain on extinguishment of debt
—
(39.3
)
—
(0.7
)
(12.7
)
Other
22.5
21.1
24.5
18.6
19.7
Total non-interest expense
481.8
461.9
426.2
387.4
347.9
Income before income taxes
231.8
211.0
277.9
260.1
184.6
Income tax expense
54.4
63.1
61.3
44.4
42.4
Net income
177.4
147.9
216.6
215.7
142.2
Dividends on preferred stock
3.2
3.2
3.2
3.2
3.2
Net income available to common stockholders
$
174.2
$
144.7
$
213.4
$
212.5
$
139.0
Earnings per common share:
Diluted shares
109.0
108.7
108.5
108.3
108.3
Diluted earnings per share
$
1.60
$
1.33
$
1.97
$
1.96
$
1.28
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
(in millions)
Assets:
Cash and due from banks
$
3,550
$
1,576
$
3,497
$
2,153
$
3,639
Investment securities
16,092
12,712
11,204
10,131
9,105
Loans held for sale
1,841
1,402
1,766
3,156
7,022
Loans held for investment:
Commercial and industrial
19,749
19,103
18,344
16,657
15,503
Commercial real estate - non-owner occupied
9,637
9,650
9,810
9,913
9,617
Commercial real estate - owner occupied
1,859
1,810
1,771
1,805
1,809
Construction and land development
4,781
4,889
4,669
4,428
4,407
Residential real estate
14,624
14,778
14,779
15,000
15,024
Consumer
50
67
74
72
75
Loans HFI, net of deferred fees
50,700
50,297
49,447
47,875
46,435
Allowance for loan losses
(340
)
(337
)
(327
)
(321
)
(305
)
Loans HFI, net of deferred fees and allowance
50,360
49,960
49,120
47,554
46,130
Mortgage servicing rights
1,178
1,124
1,233
1,007
910
Premises and equipment, net
344
339
327
315
293
Operating lease right-of-use asset
139
145
150
151
156
Other assets acquired through foreclosure, net
8
8
8
11
11
Bank owned life insurance
187
186
184
184
183
Goodwill and other intangibles, net
666
669
672
674
677
Other assets
2,624
2,741
2,730
2,824
2,921
Total assets
$
76,989
$
70,862
$
70,891
$
68,160
$
71,047
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits
$
18,399
$
14,520
$
17,991
$
16,733
$
16,465
Interest bearing:
Demand
16,965
15,916
12,843
12,646
10,719
Savings and money market
16,194
14,791
14,672
13,085
13,845
Certificates of deposit
10,670
10,106
8,781
8,577
6,558
Total deposits
62,228
55,333
54,287
51,041
47,587
Borrowings
6,221
7,230
8,745
9,567
15,853
Qualifying debt
896
895
890
888
895
Operating lease liability
172
179
180
179
184
Accrued interest payable and other liabilities
1,300
1,147
1,043
800
1,007
Total liabilities
70,817
64,784
65,145
62,475
65,526
Stockholders' Equity:
Preferred stock
295
295
295
295
295
Common stock and additional paid-in capital
2,087
2,081
2,073
2,064
2,054
Retained earnings
4,348
4,215
4,111
3,937
3,764
Accumulated other comprehensive loss
(558
)
(513
)
(733
)
(611
)
(592
)
Total stockholders' equity
6,172
6,078
5,746
5,685
5,521
Total liabilities and stockholders' equity
$
76,989
$
70,862
$
70,891
$
68,160
$
71,047
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
(in millions)
Allowance for loan losses
Balance, beginning of period
$
336.7
$
327.4
$
321.1
$
304.7
$
309.7
Provision for credit losses (1)
13.4
17.8
14.3
23.8
1.0
Recoveries of loans previously charged-off:
Commercial and industrial
0.4
0.7
0.4
0.7
3.2
Commercial real estate - non-owner occupied
—
—
—
—
—
Commercial real estate - owner occupied
—
0.1
—
—
—
Construction and land development
—
—
—
—
—
Residential real estate
—
—
0.1
—
—
Consumer
—
—
—
0.1
—
Total recoveries
0.4
0.8
0.5
0.8
3.2
Loans charged-off:
Commercial and industrial
2.3
9.3
5.5
6.0
9.1
Commercial real estate - non-owner occupied
7.9
—
3.0
2.2
—
Commercial real estate - owner occupied
—
—
—
—
—
Construction and land development
—
—
—
—
—
Residential real estate
—
—
—
—
—
Consumer
—
—
—
—
0.1
Total loans charged-off
10.2
9.3
8.5
8.2
9.2
Net loan charge-offs
9.8
8.5
8.0
7.4
6.0
Balance, end of period
$
340.3
$
336.7
$
327.4
$
321.1
$
304.7
Allowance for unfunded loan commitments
Balance, beginning of period
$
31.6
$
37.9
$
41.1
$
44.8
$
47.0
Provision for (recovery of) credit losses (1)
1.5
(6.3
)
(3.2
)
(3.7
)
(2.2
)
Balance, end of period (2)
$
33.1
$
31.6
$
37.9
$
41.1
$
44.8
Components of the allowance for credit losses on loans
Allowance for loan losses
$
340.3
$
336.7
$
327.4
$
321.1
$
304.7
Allowance for unfunded loan commitments
33.1
31.6
37.9
41.1
44.8
Total allowance for credit losses on loans
$
373.4
$
368.3
$
365.3
$
362.2
$
349.5
Net charge-offs to average loans - annualized
0.08
%
0.07
%
0.07
%
0.06
%
0.05
%
Allowance ratios
Allowance for loan losses to funded HFI loans (3)
0.67
%
0.67
%
0.66
%
0.67
%
0.66
%
Allowance for credit losses to funded HFI loans (3)
0.74
0.73
0.74
0.76
0.75
Allowance for loan losses to nonaccrual HFI loans
85
123
138
125
285
Allowance for credit losses to nonaccrual HFI loans
94
135
154
141
327
(1)
The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $0.1 million provision release on AFS investment securities and a $0.4 million provision for credit losses on HTM investment securities for the three months ended March 31, 2024. The allowance for credit losses on AFS and HTM investment securities totaled $1.3 million and $8.2 million, respectively, as of March 31, 2024.
(2)
The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.
(3)
Ratio includes an allowance for credit losses of $14.2 million as of March 31, 2024 related to a pool of loans covered under three separate credit linked note transactions.
Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
(in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans
$
399
$
273
$
237
$
256
$
107
Nonaccrual loans to funded HFI loans
0.79
%
0.54
%
0.48
%
0.53
%
0.23
%
Repossessed assets
$
8
$
8
$
8
$
11
$
11
Nonaccrual loans and repossessed assets to total assets
0.53
%
0.40
%
0.35
%
0.39
%
0.17
%
Loans Past Due
Loans past due 90 days, still accruing (1)
$
6
$
42
$
—
$
—
$
1
Loans past due 90 days, still accruing to funded HFI loans
0.01
%
0.08
%
—
%
—
%
0.00
%
Loans past due 30 to 89 days, still accruing (2)
$
117
$
164
$
189
$
121
$
58
Loans past due 30 to 89 days, still accruing to funded HFI loans
0.23
%
0.33
%
0.38
%
0.25
%
0.13
%
Other credit quality metrics
Special mention loans
$
394
$
641
$
668
$
694
$
320
Special mention loans to funded HFI loans
0.78
%
1.27
%
1.35
%
1.45
%
0.69
%
Classified loans on accrual
$
361
$
379
$
381
$
324
$
325
Classified loans on accrual to funded HFI loans
0.71
%
0.75
%
0.77
%
0.68
%
0.70
%
Classified assets
$
781
$
673
$
639
$
604
$
459
Classified assets to total assets
1.01
%
0.95
%
0.90
%
0.89
%
0.65
%
(1)
Excludes government guaranteed residential mortgage loans of $349 million, $399 million, $439 million, $481 million, and $494 million as of each respective date in the table above.
(2)
Excludes government guaranteed residential mortgage loans of $224 million, $279 million, $261 million, $289 million, and $281 million as of each respective date in the table above.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
March 31, 2024
December 31, 2023
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
($ in millions)
Interest earning assets
Loans held for sale
$
2,416
$
39.1
6.51
%
$
1,830
$
29.6
6.42
%
Loans held for investment:
Commercial and industrial
18,745
345.7
7.48
18,530
343.2
7.40
CRE - non-owner occupied
9,468
185.1
7.87
9,715
188.7
7.71
CRE - owner occupied
1,808
26.8
6.06
1,786
26.0
5.88
Construction and land development
4,922
117.1
9.57
4,789
112.6
9.33
Residential real estate
14,722
157.0
4.29
14,758
157.6
4.24
Consumer
61
1.1
7.28
71
1.3
7.52
Total HFI loans (1), (2), (3)
49,726
832.8
6.77
49,649
829.4
6.65
Securities:
Securities - taxable
10,717
121.1
4.54
9,168
113.5
4.91
Securities - tax-exempt
2,205
22.9
5.24
2,106
22.7
5.35
Total securities (1)
12,922
144.0
4.66
11,274
136.2
4.99
Cash and other
2,953
39.1
5.33
2,572
43.8
6.75
Total interest earning assets
68,017
1,055.0
6.29
65,325
1,039.0
6.37
Non-interest earning assets
Cash and due from banks
285
287
Allowance for credit losses
(349
)
(340
)
Bank owned life insurance
186
185
Other assets
4,542
4,525
Total assets
$
72,681
$
69,982
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts
$
16,348
$
122.0
3.00
%
$
14,268
$
104.6
2.91
%
Savings and money market
15,247
129.9
3.43
14,595
119.1
3.24
Certificates of deposit
10,129
128.7
5.11
9,453
120.0
5.03
Total interest-bearing deposits
41,724
380.6
3.67
38,316
343.7
3.56
Short-term borrowings
3,715
53.8
5.82
5,492
79.4
5.74
Long-term debt
444
12.2
11.06
594
14.6
9.73
Qualifying debt
895
9.5
4.28
891
9.6
4.26
Total interest-bearing liabilities
46,778
456.1
3.92
45,293
447.3
3.92
Interest cost of funding earning assets
2.69
2.72
Non-interest-bearing liabilities
Non-interest-bearing demand deposits
18,183
17,579
Other liabilities
1,536
1,330
Stockholders’ equity
6,184
5,780
Total liabilities and stockholders' equity
$
72,681
$
69,982
Net interest income and margin (4)
$
598.9
3.60
%
$
591.7
3.65
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.6 million and $9.1 million for the three months ended March 31, 2024 and December 31, 2023, respectively.
(2)
Included in the yield computation are net loan fees of $33.0 million and $30.8 million for the three months ended March 31, 2024 and December 31, 2023, respectively.
(3)
Includes non-accrual loans.
(4)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
March 31, 2024
March 31, 2023
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
($ in millions)
Interest earning assets
Loans held for sale
$
2,416
$
39.1
6.51
%
$
2,153
$
31.3
5.90
%
Loans held for investment:
Commercial and industrial
18,745
345.7
7.48
20,481
368.2
7.35
CRE - non-owner-occupied
9,468
185.1
7.87
9,520
169.4
7.22
CRE - owner-occupied
1,808
26.8
6.06
1,809
24.6
5.62
Construction and land development
4,922
117.1
9.57
4,230
93.3
8.94
Residential real estate
14,722
157.0
4.29
15,839
144.7
3.71
Consumer
61
1.1
7.28
73
1.2
6.82
Total loans HFI (1), (2), (3)
49,726
832.8
6.77
51,952
801.4
6.28
Securities:
Securities - taxable
10,717
121.1
4.54
6,658
75.2
4.58
Securities - tax-exempt
2,205
22.9
5.24
2,117
20.9
5.00
Total securities (1)
12,922
144.0
4.66
8,775
96.1
4.68
Cash and other
2,953
39.1
5.33
3,331
40.1
4.88
Total interest earning assets
68,017
1,055.0
6.29
66,211
968.9
5.99
Non-interest earning assets
Cash and due from banks
285
265
Allowance for credit losses
(349
)
(315
)
Bank owned life insurance
186
182
Other assets
4,542
4,931
Total assets
$
72,681
$
71,274
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts
$
16,348
$
122.0
3.00
%
$
10,534
$
68.2
2.63
%
Savings and money market accounts
15,247
129.9
3.43
18,066
115.5
2.59
Certificates of deposit
10,129
128.7
5.11
5,520
47.9
3.52
Total interest-bearing deposits
41,724
380.6
3.67
34,120
231.6
2.75
Short-term borrowings
3,715
53.8
5.82
7,288
87.5
4.87
Long-term debt
444
12.2
11.06
1,275
30.6
9.73
Qualifying debt
895
9.5
4.28
893
9.3
4.24
Total interest-bearing liabilities
46,778
456.1
3.92
43,576
359.0
3.34
Interest cost of funding earning assets
2.69
2.20
Non-interest-bearing liabilities
Non-interest-bearing demand deposits
18,183
20,521
Other liabilities
1,536
1,589
Stockholders’ equity
6,184
5,588
Total liabilities and stockholders' equity
$
72,681
$
71,274
Net interest income and margin (4)
$
598.9
3.60
%
$
609.9
3.79
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.6 million and $8.8 million for the three months ended March 31, 2024 and 2023, respectively.
(2)
Included in the yield computation are net loan fees of $33.0 million and $35.6 million for the three months ended March 31, 2024 and 2023, respectively.
(3)
Includes non-accrual loans.
(4)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated Company
Commercial
Consumer Related
Corporate & Other
At March 31, 2024:
(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities
$
19,890
$
12
$
—
$
19,878
Loans HFS
1,841
—
1,841
—
Loans HFI, net of deferred fees and costs
50,700
29,642
21,058
—
Less: allowance for credit losses
(340
)
(287
)
(53
)
—
Net loans HFI
50,360
29,355
21,005
—
Other assets acquired through foreclosure, net
8
8
—
—
Goodwill and other intangible assets, net
666
291
375
—
Other assets
4,224
414
1,961
1,849
Total assets
$
76,989
$
30,080
$
25,182
$
21,727
Liabilities:
Deposits
$
62,228
$
25,146
$
30,481
$
6,601
Borrowings and qualifying debt
7,117
9
21
7,087
Other liabilities
1,472
139
421
912
Total liabilities
70,817
25,294
30,923
14,600
Allocated equity:
6,172
2,590
1,814
1,768
Total liabilities and stockholders' equity
$
76,989
$
27,884
$
32,737
$
16,368
Excess funds provided (used)
—
(2,196
)
7,555
(5,359
)
No. of offices
56
45
8
3
No. of full-time equivalent employees
3,312
588
726
1,998
Income Statement:
Three Months Ended March 31, 2024:
(in millions)
Net interest income
$
598.9
$
288.8
$
292.6
$
17.5
Provision for (recovery of) credit losses
15.2
15.3
(0.4
)
0.3
Net interest income after provision for credit losses
583.7
273.5
293.0
17.2
Non-interest income
129.9
26.1
95.7
8.1
Non-interest expense
481.8
156.0
295.9
29.9
Income (loss) before income taxes
231.8
143.6
92.8
(4.6
)
Income tax expense (benefit)
54.4
33.7
21.8
(1.1
)
Net income (loss)
$
177.4
$
109.9
$
71.0
$
(3.5
)
Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated Company
Commercial
Consumer Related
Corporate & Other
At December 31, 2023:
(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities
$
14,569
$
13
$
125
$
14,431
Loans held for sale
1,402
—
1,402
—
Loans, net of deferred fees and costs
50,297
29,136
21,161
—
Less: allowance for credit losses
(337
)
(284
)
(53
)
—
Total loans
49,960
28,852
21,108
—
Other assets acquired through foreclosure, net
8
8
—
—
Goodwill and other intangible assets, net
669
292
377
—
Other assets
4,254
390
1,826
2,038
Total assets
$
70,862
$
29,555
$
24,838
$
16,469
Liabilities:
Deposits
$
55,333
$
23,897
$
24,925
$
6,511
Borrowings and qualifying debt
8,125
7
402
7,716
Other liabilities
1,326
109
338
879
Total liabilities
64,784
24,013
25,665
15,106
Allocated equity:
6,078
2,555
1,790
1,733
Total liabilities and stockholders' equity
$
70,862
$
26,568
$
27,455
$
16,839
Excess funds provided (used)
—
(2,987
)
2,617
370
No. of offices
57
46
8
3
No. of full-time equivalent employees
3,260
584
711
1,965
Income Statement:
Three Months Ended March 31, 2023:
(in millions)
Net interest income
$
609.9
$
389.4
$
199.3
$
21.2
Provision for (recovery of) credit losses
19.4
(2.7
)
1.5
20.6
Net interest income (expense) after provision for credit losses
590.5
392.1
197.8
0.6
Non-interest income
(58.0
)
(96.7
)
51.0
(12.3
)
Non-interest expense
347.9
136.0
192.0
19.9
Income (loss) before income taxes
184.6
159.4
56.8
(31.6
)
Income tax expense (benefit)
42.4
38.5
12.8
(8.9
)
Net income (loss)
$
142.2
$
120.9
$
44.0
$
(22.7
)
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Pre-Provision Net Revenue by Quarter:
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
(in millions)
Net interest income
$
598.9
$
591.7
$
587.0
$
550.3
$
609.9
Total non-interest income
129.9
90.5
129.2
119.0
(58.0
)
Net revenue
$
728.8
$
682.2
$
716.2
$
669.3
$
551.9
Total non-interest expense
481.8
461.9
426.2
387.4
347.9
Pre-provision net revenue (1)
$
247.0
$
220.3
$
290.0
$
281.9
$
204.0
Less:
Provision for credit losses
15.2
9.3
12.1
21.8
19.4
Income tax expense
54.4
63.1
61.3
44.4
42.4
Net income
$
177.4
$
147.9
$
216.6
$
215.7
$
142.2
Pre-Provision Net Revenue, Excluding Notable Items
Three Months Ended
Mar 31, 2024
(in millions)
Pre-provision net revenue (1)
$
247.0
Excluding notable items:
FDIC special assessment
17.6
Pre-provision net revenue, excluding notable items (1)
$
264.6
Less:
Provision for credit losses
15.2
Income tax expense
54.4
FDIC special assessment
17.6
Net income
$
177.4
Earnings per Share, Excluding Notable Items:
Three Months Ended
Mar 31, 2024
(in millions)
Net income available to common stockholders
$
174.2
Excluding:
FDIC special assessment
17.6
Tax effect of notable items
(4.1
)
Net income available to common stockholders, excluding notable items
$
187.7
Diluted shares
109.0
Diluted earnings per share, excluding notable items (1)
$
1.72
Return on Average Assets, Excluding Notable Items:
Three Months Ended
Mar 31, 2024
(in millions)
Net income
$
177.4
Excluding:
FDIC special assessment
17.6
Tax effect of notable items
(4.1
)
Net income, excluding notable items
$
190.9
Divided by:
Average assets
$
72,681
Return on average assets, excluding notable items (1)
1.06
%
Western Alliance Bancorporation and SubsidiariesReconciliation of Non-GAAP Financial Measures
Unaudited
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
Efficiency Ratio (Tax Equivalent Basis) by Quarter:
(dollars in millions)
Total non-interest expense
$
481.8
$
461.9
$
426.2
$
387.4
$
347.9
Less: Deposit costs
137.0
131.0
127.8
91.0
86.9
Total non-interest expense, excluding deposit costs
344.8
330.9
298.4
296.4
261.0
Divided by:
Total net interest income
598.9
591.7
587.0
550.3
609.9
Plus:
Tax equivalent interest adjustment
9.6
9.1
8.9
8.7
8.8
Total non-interest income
129.9
90.5
129.2
119.0
(58.0
)
Less: Deposit costs
137.0
131.0
127.8
91.0
86.9
$
601.4
$
560.3
$
597.3
$
587.0
$
473.8
Efficiency ratio (2)
65.2
%
66.8
%
58.8
%
57.1
%
62.0
%
Efficiency ratio, adjusted for deposit costs (2)
57.3
%
59.1
%
50.0
%
50.5
%
55.1
%
Three Months Ended
Mar 31, 2024
Dec 31, 2023
Efficiency Ratio (Tax Equivalent Basis), Adjusted for Deposit Costs and Notable Items:
(dollars in millions)
Total non-interest expense, excluding deposit costs
$
344.8
$
330.9
Less: FDIC special assessment
17.6
66.3
Total non-interest expense, excluding deposit costs and notable items
327.2
264.6
Divided by:
Total net interest income
598.9
591.7
Plus:
Tax equivalent interest adjustment
9.6
9.1
Total non-interest income
129.9
90.5
Less: Deposit costs
137.0
131.0
$
601.4
$
560.3
Efficiency ratio, adjusted for deposit costs and notable items (2)
54.4
%
47.2
%
Tangible Common Equity:
Mar 31, 2024
Dec 31, 2023
Sep 30, 2023
Jun 30, 2023
Mar 31, 2023
(dollars and shares in millions)
Total stockholders' equity
$
6,172
$
6,078
$
5,746
$
5,685
$
5,521
Less:
Goodwill and intangible assets
666
669
672
674
677
Preferred stock
295
295
295
295
295
Total tangible common equity
5,211
5,114
4,779
4,716
4,549
Plus: deferred tax - attributed to intangible assets
2
2
2
2
2
Total tangible common equity, net of tax
$
5,213
$
5,116
$
4,781
$
4,718
$
4,551
Total assets
$
76,989
$
70,862
$
70,891
$
68,160
$
71,047
Less: goodwill and intangible assets, net
666
669
672
674
677
Tangible assets
76,323
70,193
70,219
67,486
70,370
Plus: deferred tax - attributed to intangible assets
2
2
2
2
2
Total tangible assets, net of tax
$
76,325
$
70,195
$
70,221
$
67,488
$
70,372
Tangible common equity ratio (3)
6.8
%
7.3
%
6.8
%
7.0
%
6.5
%
Common shares outstanding
110.2
109.5
109.5
109.5
109.5
Tangible book value per share, net of tax (3)
$
47.30
$
46.72
$
43.66
$
43.09
$
41.56
Return on Average Tangible Common Equity, Excluding Notable Items:
Three Months Ended
Mar 31, 2024
(in millions)
Net income available to common shareholders, excluding notable items
$
187.7
Divided by:
Average stockholders' equity
$
6,184
Less:
Average goodwill and intangible assets
668
Average preferred stock
295
Average tangible common equity
$
5,221
Return on average tangible common equity, excluding notable items (1)
14.5
%
Non-GAAP Financial Measures Footnotes
(1)
We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2)
We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3)
We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240417197435/en/
Investors: Miles Pondelik, 602-346-7462 Email: MPondelik@westernalliancebank.com
Media: Stephanie Whitlow, 480-998-6547 Email: SWhitlow@westernalliancebank.com
1 Year Western Alliance Bancorp... Chart |
1 Month Western Alliance Bancorp... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions