Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

WESTERN ALLIANCE BANCORPORATION

(WAL)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Western Alliance Bancorporation : 2nd Quarter 2021 Earnings Call Presentation

07/15/2021 | 05:01pm EDT

EARNINGS CALL

2nd Quarter 2021

JULY 16, 2021

Forward-Looking Statements

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 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, 2020 as filed with the Securities and Exchange Commission; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic 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; inflation, interest rate, market and monetary fluctuations; our ability to successfully integrate and operate AmeriHome; 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 presentation 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.

Non-GAAP Financial Measures

This presentation 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 the Company's press release as of and for the quarter ended June 30, 2021. 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.

2

2nd Quarter 2021 | Financial Highlights

Highlights

Earnings & Profitability

Q2-21

Q1-21

Q2-20

Net Income

$223.8

$192.5

$93.3

Net Revenue

$506.5

$337.0

$319.7

Pre Provision Net Revenue1

$277.4

$202.4

$204.9

EPS - Adjusted1

$2.29

$1.90

$0.93

Net Interest Margin

3.51%

3.37%

4.19%

Efficiency Ratio1

44.5%

39.0%

35.1%

ROAA

1.86%

1.93%

1.22%

ROTCE1

28.1%

24.2%

13.6%

Balance Sheet & Capital

Total Loans, HFI

$30,026

$28,711

$25,029

Total Deposits

$41,921

$38,393

$27,545

CET1 Ratio

9.2%

10.3%

10.2%

TCE Ratio1

7.1%

7.9%

8.9%

Tangible Book Value per Share1

$32.86

$33.02

$27.84

Asset Quality

(Recovery of) Provision for Credit losses

$(14.5)

$(32.4)

$92.0

Net Charge-Offs

$0.1

$1.4

$5.5

Net Charge-Offs/Avg. Loans

0.00%

0.02%

0.09%

Total Loan ACL/Funded HFI Loans

0.88%

0.97%

1.39%

NPAs2/Total Assets

0.20%

0.27%

0.47%

Net Income

EPS

$223.8 million

$2.17

EPS, Adjusted1 $2.29

PPNR1 Growth

ROTCE1

Q2: $75.0 million

28.1%

35% YoY

Loan Growth

Deposit Growth

Q2: $1.3 billion

Q2: $3.5 billion

$2.0 billion3, excluding PPP

20% YoY

52% YoY

25%3, excluding PPP

Tangible Book

NPAs2/

Value PER SHARE1

Total

$32.86

0.20%

18% YoY

Dollars in millions, except EPS

1)Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses. Refer to slide 2 for further discussion of Non-GAAP

financial measures.3 2)Nonperforming assets includes nonaccrual loans and repossessed assets.

3)Loans held for investment excluding PPP

Quarterly Income Statement

Q2-21

Q1-21

Q2-20

Net Interest Income

$370.5

1

$317.3

$298.4

Mortgage Banking Related Activity

$111.2

$-

$-

Other

24.8

19.7

21.3

Non-Interest Income

$136.0

2

$19.7

$21.3

Net Revenue

$506.5

$337.0

$319.7

Salaries and Employee Benefits

(128.9)

(83.7)

(69.6)

3

Deposit Costs

(7.1)

(6.3)

(3.5)

Other

(93.1)

(44.6)

(41.7)

Non-Interest Expense, Adjusted1

$ (229.1)

$ (134.6)

$ (114.8)

Pre-Provision Net Revenue1

$277.4

$202.4

$204.9

Recovery of (Provision for) Credit Losses

14.5

32.4

(92.0)

4

Pre-Tax Income, Adjusted1

$291.9

$234.8

$112.9

Income Tax, Adjusted1

(55.4)

(41.9)

(19.6)

Net Income before Merger/Restructure Exp.1

$236.5

$192.9

$93.3

Merger/Restructure Expense, Net of Tax

(12.7)

(0.4)

0.0

5

Net Income

$223.8

$192.5

$93.3

1

2

3

4

Q2 2021 Highlights

Net Interest Income increased $53.2 million, primarily from interest income on AMH Loans HFS and loan growth, partially offset by increased interest expense from $600 million subordinated debt issuance and assumption of AMH borrowings

Non-Interest Income increased $116.3 million, representing 27% of net revenue, primarily from AMH mortgage banking related income

  • $20.4 billion loan production in Q2 (47% purchase / 53% refinance), down 3.6% compared to Q1
  • Gain on Sale margin of 64bps in Q2, compared to 83bps in Q1 and 63bps in FY 2019
  • $57.1 billion in servicing portfolio UPB

Salaries and Employee Benefits increased $45.2 million due to the addition of AMH employees and an increase in incentive compensation

Recovery of Credit Losses of $14.5 million as economic forecasts continued to improve, offset by loan growth in low loss segments

Diluted Shares

103.4

101.4

100.0

Earnings Per Share

$2.17

$1.90

$0.93

Merger/Restructure Expense per Share

$0.12

$0.00

$0.00

$2.29

$1.90

$0.93

Earnings Per Share - Adjusted1

6

Dollars in millions, except EPS

5

6

Merger/Restructure Expense, Net of Tax of $12.7 million as management has taken action to optimize the balance sheet with MSR dispositions

AmeriHome contributed $0.39 to EPS in 2Q

1)Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses. Refer to slide 2 for further discussion of Non-GAAP

4

financial measures.

Net Interest Drivers

Spot Rate

Total Investments and Yield

2.46%

3.02%

2.79%

2.61%

2.37%

2.47%

$7.9

$7.8

$5.5

$4.2

$4.7

Q2-20Q3-20Q4-20Q1-21Q2-21

Spot Rate

Interest Bearing Deposits and Cost

0.21%

Q2 2021 Highlights

Total Loans and HFI Yield

Spot Rate

4.26%

• Loans, HFI yields decreased 11bps

4.82%

4.47%

4.67%

4.59%

4.48%

following continued mix shift into

residential loans and slight reduction in

$4.5

non-CRE loan yields, including decreased

PPP yields

$25.0

$26.0

$27.1

$28.7

$30.0

• Yield on PPP loans of 3.63%

(4.19% in Q1)

• Yield on Loans HFS of 3.21%

Q2-20

Q3-20Q4-20

Q1-21Q2-21

Loans, HFI

Loans, HFS

• Cost of interest-bearing deposits flat at

22bps, however, total cost of funds

increased 8bps to 0.27% due to $600

Spot Rate

Deposits, Borrowings & Cost of Liability Funding

million subordinated debt issuance during

0.28%

Q2-21 and assumption of AMH borrowings

0.40%

0.31%

$15.3 $15.8

0.25%

0.22%

0.22%

$20.9

$21.8

$18.5

0.30%

0.28%

0.22%

0.19%

0.27%

Spot rate for cost of interest-bearing

$20.1

deposits of 21bps (11bps, including

$17.5

non-interest DDA)

$13.4

$12.2

$13.0

$15.3

$15.8

$18.5

$20.9

$21.8

Q2-20

Q3-20

Q4-20

Q1-21

Q2-21

Q2-20Q3-20Q4-20Q1-21Q2-21

Dollars in billions, unless otherwise indicated

Non-Interest Bearing Deposits

Total Borrowings

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Western Alliance Bancorporation published this content on 15 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 July 2021 21:00:08 UTC.


© Publicnow 2021
All news about WESTERN ALLIANCE BANCORPORATION
12:22pLAW.COM : Objectors And Cy Pres Funds Aren't All Bad, Report Says
PU
12:12pWESTERN ALLIANCE BANCORPORATION : Bank Adds Senior Vice President of Settlement ..
PU
09/16WESTERN ALLIANCE BANCORPORATION : Entry into a Material Definitive Agreement, Fi..
AQ
08/26WESTERN ALLIANCE BANCORPORATION : Finalizes $9 Million Investment in FVLCRUM Fun..
BU
08/12WESTERN ALLIANCE BANCORPORATION : Ex-dividend day for
FA
08/11INSIDER TRENDS : Insider 90-Day Selling Trend Extended at Western Alliance Banco..
MT
08/03WESTERN ALLIANCE BANCORPORATION : WAL Investor Update - August 2021
PU
07/30WESTERN ALLIANCE BANCORPORATION : Management's Discussion and Analysis of Financ..
AQ
07/27WESTERN ALLIANCE BANCORPORATION : Bank Launches New Franchise Finance Group
PU
07/27WESTERN ALLIANCE BANCORPORATION : Other Events, Financial Statements and Exhibit..
AQ
More news
Analyst Recommendations on WESTERN ALLIANCE BANCORPORATION
More recommendations
Financials (USD)
Sales 2021 1 919 M - -
Net income 2021 877 M - -
Net Debt 2021 - - -
P/E ratio 2021 11,7x
Yield 2021 1,09%
Capitalization 10 224 M 10 224 M -
Capi. / Sales 2021 5,33x
Capi. / Sales 2022 4,52x
Nbr of Employees 1 915
Free-Float 95,1%
Chart WESTERN ALLIANCE BANCORPORATION
Duration : Period :
Western Alliance Bancorporation Technical Analysis Chart | WAL | US9576381092 | MarketScreener
Technical analysis trends WESTERN ALLIANCE BANCORPORATION
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 12
Last Close Price 99,01 $
Average target price 120,42 $
Spread / Average Target 21,6%
EPS Revisions
Managers and Directors
Kenneth A. Vecchione President, Chief Executive Officer & Director
Dale M. Gibbons Vice Chairman & Chief Financial Officer
Robert Gary Sarver Executive Chairman
Jeffrey Semonovich Chief Information Officer & Executive VP
Timothy W. Boothe Chief Operating Officer