WAL Western Alliance Bancorporation

Western Alliance Bancorporation (NYSE:WAL):

THIRD QUARTER 2024 FINANCIAL RESULTS

Quarter Highlights:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

Earnings per share

 

PPNR1

 

Net interest margin

 

Efficiency ratio

 

Book value per

common share

$199.8 million

 

$1.80

 

$285.7 million

 

3.61%

 

64.5%

 

$57.97

 

 

 

 

52.7%1, adjusted for deposit costs

 

$51.981, excluding

goodwill and intangibles

CEO COMMENTARY:

“Western Alliance delivered solid third quarter results featuring strong net interest income growth, continued loan and deposit momentum, and healthy earnings generation,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly loan and deposit growth of $916 million and $1.8 billion, respectively, continued their upward trajectory and produced PPNR1 of $285.7 million. Asset quality remained stable with our nonperforming assets to total assets ratio declining to 0.45% and net loan charge-offs of 0.20% of average loans. Overall, we achieved net income of $199.8 million and earnings per share of $1.80 for the third quarter 2024, which resulted in a return on tangible common equity1 of 13.8%. Tangible book value per share1 climbed 19.1% year-over-year to $51.98 with a CET1 ratio of 11.2%.

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

 

 

FINANCIAL HIGHLIGHTS:

 

• Net income of $199.8 million and earnings per share of $1.80, up 3.2% and 2.9%, from $193.6 million and $1.75, respectively

• Net income of $199.8 million and earnings per share of $1.80, down 7.8% and 8.6%, from $216.6 million and $1.97, respectively

• Net revenue of $823.1 million, an increase of 6.6%, or $51.3 million, compared to an increase in non-interest expenses of 10.4%, or $50.6 million

• Net revenue of $823.1 million, an increase of 14.9%, or $106.9 million, compared to an increase in non-interest expenses of 26.1%, or $111.2 million

• Pre-provision net revenue1 of $285.7 million, up $0.7 million from $285.0 million

• Pre-provision net revenue1 of $285.7 million, down $4.3 million from $290.0 million

• Effective tax rate of 20.7%, compared to 21.9%

• Effective tax rate of 20.7%, compared to 22.1%

 

 

FINANCIAL POSITION RESULTS:

 

• HFI loans of $53.3 billion, up $916 million, or 1.7%

• Increase in HFI loans of $3.9 billion, or 7.9%

• Total deposits of $68.0 billion, up $1.8 billion, or 2.7%

• Increase in total deposits of $13.8 billion, or 25.3%

• HFI loan-to-deposit ratio of 78.4%, down from 79.1%

• HFI loan-to-deposit ratio of 78.4%, down from 91.1%

• Stockholders' equity of $6.7 billion, up $343 million

• Increase in stockholders' equity of $931 million

 

 

LOANS AND ASSET QUALITY:

 

• Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.45%, compared to 0.51%

• Nonperforming assets to total assets of 0.45%, compared to 0.35%

• Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.18%

• Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.07%

 

 

KEY PERFORMANCE METRICS:

 

• Net interest margin of 3.61%, decreased from 3.63%

• Net interest margin of 3.61%, decreased from 3.67%

• Return on average assets and on tangible common equity1 of 0.96% and 13.8%, compared to 0.99% and 14.3%, respectively

• Return on average assets and on tangible common equity1 of 0.96% and 13.8%, compared to 1.24% and 17.3%, respectively

• Tangible common equity ratio1 of 7.2%, increased from 6.7%

• Tangible common equity ratio1 of 7.2%, increased from 6.8%

• CET 1 ratio of 11.2%, compared to 11.0%

• CET 1 ratio of 11.2%, compared to 10.6%

• Tangible book value per share1, net of tax, of $51.98, an increase of 6.5% from $48.79

• Tangible book value per share1, net of tax, of $51.98, an increase of 19.1% from $43.66

• Adjusted efficiency ratio1 of 52.7%, compared to 51.5%

• Adjusted efficiency ratio1 of 52.7%, compared to 50.0%

 

 

1 See reconciliation of Non-GAAP Financial Measures.

 

Income Statement

Net interest income totaled $696.9 million in the third quarter 2024, an increase of $40.3 million, or 6.1%, from $656.6 million in the second quarter 2024, and an increase of $109.9 million, or 18.7%, compared to the third quarter 2023. The increase in net interest income from the second quarter 2024 is due to an increase in average HFI and HFS loan balances, partially offset by a decrease in HFI loan yields. The increase in net interest income from the third quarter 2023 was driven by an increase in average HFI loan and investment securities balances, partially offset by higher balances and rates on deposits and a lower yields on HFI loans.

The Company recorded a provision for credit losses of $33.6 million in the third quarter 2024, a decrease of $3.5 million from $37.1 million in the second quarter 2024, and an increase of $21.5 million from $12.1 million in the third quarter 2023. The provision for credit losses during the third quarter 2024 is primarily reflective of net-charge offs of $26.6 million and loan growth.

The Company’s net interest margin in the third quarter 2024 was 3.61%, a decrease from 3.63% in the second quarter 2024, and a decrease from 3.67% in the third quarter 2023. The decrease in net interest margin from the second quarter 2024 was driven by lower yields on HFI loans. The decrease in net interest margin from the third quarter 2023 was driven by lower HFI loan yields and higher deposit rates.

Non-interest income was $126.2 million for the third quarter 2024, compared to $115.2 million for the second quarter 2024, and $129.2 million for the third quarter 2023. The $11.0 million increase in non-interest income from the second quarter 2024 was primarily due to increases in service charges and loan fees of $12.3 million, gain on sales of investment securities of $6.5 million, and other non-interest income of $10.8 million primarily from income on recently purchased bank owned life insurance policies. These increases were partially offset by a decrease of $25.8 million in net loan servicing revenue due to higher MSR fair value losses combined with lower servicing income. The $3.0 million decrease in non-interest income from the third quarter 2023 was primarily driven by lower net loan servicing revenue and lower fair value gain adjustments, partially offset by higher other non-interest income due to income on new bank owned life insurance policies.

Net revenue totaled $823.1 million for the third quarter 2024, an increase of $51.3 million or 6.6%, compared to $771.8 million for the second quarter 2024, and an increase of $106.9 million or 14.9%, compared to $716.2 million for the third quarter 2023.

Non-interest expense was $537.4 million for the third quarter 2024, compared to $486.8 million for the second quarter 2024, and $426.2 million for the third quarter 2023. The Company’s efficiency ratio, adjusted for deposit costs1 was 52.7% for the third quarter 2024, compared to 51.5% in the second quarter 2024, and 50.0% for the third quarter 2023. The increase in non-interest expense from the second quarter 2024 is due primarily to an increase of $34.3 million in deposit costs. The increase in non-interest expense from the third quarter 2023 is primarily attributable to an increase in deposit costs and salaries and employee benefits.

Income tax expense was $52.3 million for the third quarter 2024, compared to $54.3 million for the second quarter 2024, and $61.3 million for the third quarter 2023. The decrease in income tax expense from the second quarter 2024 is primarily related to increased expected utilization of tax credits. The decrease in income tax expense from the third quarter 2023 is primarily related to lower pre-tax income.

Net income was $199.8 million for the third quarter 2024, an increase of $6.2 million from $193.6 million for the second quarter 2024, and a decrease of $16.8 million from $216.6 million for the third quarter 2023. Earnings per share totaled $1.80 for the third quarter 2024, compared to $1.75 for the second quarter 2024, and $1.97 for the third 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 third quarter 2024, the Company’s PPNR1 was $285.7 million, up $0.7 million from $285.0 million in the second quarter 2024, and down $4.3 million from $290.0 million in the third quarter 2023.

The Company had 3,426 full-time equivalent employees and 56 offices at September 30, 2024, compared to 3,310 full-time equivalent employees and 56 offices at June 30, 2024, and 3,272 full-time equivalent employees and 56 offices at September 30, 2023.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees totaled $53.3 billion at September 30, 2024, compared to $52.4 billion at June 30, 2024, and $49.4 billion at September 30, 2023. The increase in HFI loans of $916 million from the prior quarter was primarily driven by increases of $861 million and $154 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively, partially offset by decreases of $69 million and $50 million in commercial real estate owner occupied and residential real estate loans, respectively. The increase in HFI loans of $3.9 billion from September 30, 2023 was primarily driven by an increase of $4.2 billion in commercial and industrial loans, partially offset by a decrease of $384 million in residential real estate loans. HFS loans totaled $2.3 billion at September 30, 2024, compared to $2.0 billion at June 30, 2024, and $1.8 billion at September 30, 2023. The increases of $320 million and $561 million in HFS loans from June 30, 2024 and September 30, 2023, respectively, are primarily related to an increase in agency conforming loans.

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. The allowance for loan losses to funded HFI loans ratio was 0.67%, 0.67%, and 0.66% at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.74% at September 30, 2024, June 30, 2024, and September 30, 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 $8.8 billion, $8.9 billion, and $9.3 billion as of September 30, 2024, June 30, 2024, and September 30, 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 $11.8 million as of September 30, 2024, $11.7 million as of June 30, 2024, and $17.4 million as of September 30, 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 0.88% at September 30, 2024, 0.89% at June 30, 2024, and 0.91% at September 30, 2023.

Deposits totaled $68.0 billion at September 30, 2024, an increase of $1.8 billion from $66.2 billion at June 30, 2024, and an increase of $13.8 billion from $54.3 billion at September 30, 2023. By deposit type, the increase from the prior quarter is attributable to increases of $3.4 billion from non-interest bearing deposits and $2.5 billion from savings and money market deposits, partially offset by decreases of $3.4 billion from interest-bearing demand deposits and $714 million from certificates of deposits. From September 30, 2023, non-interest bearing deposits increased $7.0 billion, savings and money market deposits increased $4.9 billion, interest-bearing demand deposits increased $1.0 billion, and certificates of deposit increased $873 million. Non-interest bearing deposits were $25.0 billion at September 30, 2024, compared to $21.5 billion at June 30, 2024, and $18.0 billion at September 30, 2023.

The table below shows the Company's deposit types as a percentage of total deposits:

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Sep 30, 2023

Non-interest bearing

 

36.7

%

 

32.5

%

 

33.1

%

Interest-bearing demand

 

20.3

 

 

26.1

 

 

23.7

 

Savings and money market

 

28.8

 

 

25.8

 

 

27.0

 

Certificates of deposit

 

14.2

 

 

15.6

 

 

16.2

 

The Company’s ratio of HFI loans to deposits was 78.4% at September 30, 2024, compared to 79.1% at June 30, 2024, and 91.1% at September 30, 2023.

Borrowings were $3.0 billion at September 30, 2024, $5.6 billion at June 30, 2024, and $8.7 billion at September 30, 2023. Borrowings decreased $2.6 billion from June 30, 2024 primarily due to a decrease of $3.6 billion in short-term borrowings, partially offset by a $1.0 billion increase in long-term borrowings. The decrease in borrowings from September 30, 2023 is primarily due to a decrease in short-term borrowings of $6.4 billion and payoff of the AmeriHome senior notes as part of the Company's balance sheet repositioning, partially offset by an increase in long term borrowings of $1.0 billion.

Stockholders’ equity was $6.7 billion at September 30, 2024, compared to $6.3 billion at June 30, 2024 and $5.7 billion at September 30, 2023. The increase in stockholders’ equity from the prior quarter was due to net income and unrealized fair value gains of $176 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax, partially offset by 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 stockholders during the third quarter 2024. The increase in stockholders' equity from September 30, 2023 is primarily a function of net income and unrealized fair value gains on available-for-sale securities, partially offset by dividends to stockholders.

The Company's common equity tier 1 capital ratio was 11.2% at September 30, 2024, compared to 11.0% and 10.6% at June 30, 2024 and September 30, 2023, respectively. At September 30, 2024, tangible common equity, net of tax1, was 7.2% of tangible assets1 and total capital was 14.1% of risk-weighted assets. The Company’s tangible book value per share1 was $51.98 at September 30, 2024, an increase of 6.5% from $48.79 at June 30, 2024, and an increase of 19.1% from $43.66 at September 30, 2023. The increase in tangible book value per share from June 30, 2024 and September 30, 2023 is attributable to net income.

Total assets decreased $501 million, or 0.6%, to $80.1 billion at September 30, 2024 from $80.6 billion at June 30, 2024, and increased 13.0% from $70.9 billion at September 30, 2023. The decrease in total assets from June 30, 2024 was primarily driven by a decrease in cash and due from banks and investment securities, which funded an increase in HFI loans and bank owned life insurance. The increase in total assets from September 30, 2023 was primarily driven by an increase in investment securities and HFI loans, partially offset by a decrease in cash and due from banks.

1 See reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $33.6 million for the third quarter 2024, compared to $37.1 million for the second quarter 2024, and $12.1 million for the third quarter 2023. Net loan charge-offs in the third quarter 2024 totaled $26.6 million, or 0.20% of average loans (annualized), compared to $22.8 million, or 0.18%, in the second quarter 2024, and $8.0 million, or 0.07%, in the third quarter 2023.

Nonaccrual loans decreased $52 million to $349 million during the quarter and increased $112 million from September 30, 2023. Loans past due 90 days and still accruing interest totaled $4 million at September 30, 2024 and zero at June 30, 2024 and September 30, 2023 (excluding government guaranteed loans of $313 million, $330 million, and $439 million, respectively). Loans past due 30-89 days and still accruing interest totaled $110 million at September 30, 2024, an increase from $83 million at June 30, 2024, and a decrease from $189 million at September 30, 2023 (excluding government guaranteed loans of $203 million, $221 million, and $261 million, respectively).

Repossessed assets totaled $8 million at September 30, 2024, flat from June 30, 2024 and September 30, 2023. Classified assets totaled $838 million at September 30, 2024, an increase of $90 million from $748 million at June 30, 2024, and an increase of $199 million from $639 million at September 30, 2023.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 12.2% at September 30, 2024, compared to 11.2% at June 30, 2024, and 10.2% at September 30, 2023.

2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2024 financial results at 12:00 p.m. ET on Friday, October 18, 2024. Participants may access the call by dialing 1-833-470-1428 and using access code 586867 or via live audio webcast using the website link https://events.q4inc.com/attendee/875780058. 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 October 18th through 11:59 p.m. ET November 17th by dialing 1-866-813-9403, using access code 196595.

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 and the Company's subsequent Quarterly Reports on Form 10-Q, each 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 $80 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 September 30,

 

 

 

 

 

 

 

 

 

2024

 

 

2023

 

Change %

 

 

 

 

 

 

 

 

(in millions)

 

 

Total assets

 

 

 

 

 

 

 

$

80,080

 

$

70,891

 

13.0

%

Loans held for sale

 

 

 

 

 

 

 

 

2,327

 

 

1,766

 

31.8

 

HFI loans, net of deferred fees

 

 

 

 

 

 

 

 

53,346

 

 

49,447

 

7.9

 

Investment securities

 

16,382

 

 

11,204

 

46.2

 

Total deposits

 

 

 

 

 

 

 

 

68,040

 

 

54,287

 

25.3

 

Borrowings

 

 

 

 

 

 

 

 

2,995

 

 

8,745

 

(65.8

)

Qualifying debt

 

 

 

 

 

 

 

 

898

 

 

890

 

0.9

 

Stockholders' equity

 

 

 

 

 

 

 

 

6,677

 

 

5,746

 

16.2

 

Tangible common equity, net of tax (1)

 

 

 

 

 

 

 

 

5,723

 

 

4,781

 

19.7

 

Common equity Tier 1 capital

 

 

 

 

 

 

 

 

6,126

 

 

5,540

 

10.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

Change %

 

 

2024

 

 

2023

 

Change %

 

 

(in millions, except per share data)

 

 

 

(in millions, except per share data)

 

 

Interest income

 

$

1,200.0

 

$

1,026.6

 

16.9

%

 

$

3,402.5

 

$

2,996.3

 

13.6

%

Interest expense

 

 

503.1

 

 

439.6

 

14.4

 

 

 

1,450.1

 

 

1,249.1

 

16.1

 

Net interest income

 

 

696.9

 

 

587.0

 

18.7

 

 

 

1,952.4

 

 

1,747.2

 

11.7

 

Provision for credit losses

 

 

33.6

 

 

12.1

 

NM

 

 

 

85.9

 

 

53.3

 

61.2

 

Net interest income after provision for credit losses

 

 

663.3

 

 

574.9

 

15.4

 

 

 

1,866.5

 

 

1,693.9

 

10.2

 

Non-interest income

 

 

126.2

 

 

129.2

 

(2.3

)

 

 

371.3

 

 

190.2

 

95.2

 

Non-interest expense

 

 

537.4

 

 

426.2

 

26.1

 

 

 

1,506.0

 

 

1,161.5

 

29.7

 

Income before income taxes

 

 

252.1

 

 

277.9

 

(9.3

)

 

 

731.8

 

 

722.6

 

1.3

 

Income tax expense

 

 

52.3

 

 

61.3

 

(14.7

)

 

 

161.0

 

 

148.1

 

8.7

 

Net income

 

 

199.8

 

 

216.6

 

(7.8

)

 

 

570.8

 

 

574.5

 

(0.6

)

Dividends on preferred stock

 

 

3.2

 

 

3.2

 

—

 

 

 

9.6

 

 

9.6

 

—

 

Net income available to common stockholders

 

$

196.6

 

$

213.4

 

(7.9

)

 

$

561.2

 

$

564.9

 

(0.7

)

Diluted earnings per common share

 

$

1.80

 

$

1.97

 

(8.6

)

 

$

5.14

 

$

5.21

 

(1.3

)

(1)

See Reconciliation of Non-GAAP Financial Measures.

NM

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2024

 

2023

 

Change %

 

2024

 

2023

 

Change %

Diluted earnings per common share

 

$

1.80

 

 

$

1.97

 

 

(8.6

)%

 

$

5.14

 

 

$

5.21

 

 

(1.3

)%

Book value per common share

 

 

57.97

 

 

 

49.78

 

 

16.5

 

 

 

 

 

 

 

Tangible book value per common share, net of tax (1)

 

 

51.98

 

 

 

43.66

 

 

19.1

 

 

 

 

 

 

 

Average common shares outstanding

(in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

108.7

 

 

 

108.3

 

 

0.3

 

 

 

108.6

 

 

 

108.3

 

 

0.3

 

Diluted

 

 

109.5

 

 

 

108.5

 

 

0.9

 

 

 

109.2

 

 

 

108.4

 

 

0.8

 

Common shares outstanding

 

 

110.1

 

 

 

109.5

 

 

0.5

 

 

 

 

 

 

 

 

Selected Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

 

0.96

%

 

 

1.24

%

 

(22.6

)%

 

 

0.98

%

 

 

1.09

%

 

(10.1

)%

Return on average tangible common equity (1, 2)

 

 

13.8

 

 

 

17.3

 

 

(20.2

)

 

 

13.8

 

 

 

16.0

 

 

(13.8

)

Net interest margin (2)

 

 

3.61

 

 

 

3.67

 

 

(1.6

)

 

 

3.61

 

 

 

3.62

 

 

(0.3

)

Efficiency ratio, adjusted for deposit costs (1)

 

 

52.7

 

 

 

50.0

 

 

5.4

 

 

 

53.8

 

 

 

51.6

 

 

4.3

 

HFI loan to deposit ratio

 

 

78.4

 

 

 

91.1

 

 

(13.9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans outstanding (2)

 

 

0.20

%

 

 

0.07

%

 

NM

 

 

 

0.15

%

 

 

0.06

%

 

NM

 

Nonaccrual loans to funded HFI loans

 

 

0.65

 

 

 

0.48

 

 

35.4

 

 

 

 

 

 

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.45

 

 

 

0.35

 

 

28.6

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans

 

 

0.67

 

 

 

0.66

 

 

1.5

 

 

 

 

 

 

 

Allowance for loan losses to nonaccrual HFI loans

 

 

102

 

 

 

138

 

 

(26.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Sep 30, 2023

Tangible common equity (1)

 

 

7.2

%

 

 

6.7

%

 

6.8

%

Common Equity Tier 1 (3)

 

 

11.2

 

 

 

11.0

 

 

10.6

 

Tier 1 Leverage ratio (3)

 

 

7.8

 

 

 

8.0

 

 

8.5

 

Tier 1 Capital (3)

 

 

11.9

 

 

 

11.7

 

 

11.3

 

Total Capital (3)

 

 

14.1

 

 

 

13.9

 

 

13.5

 

(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 September 30, 2024 are preliminary.

NM

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

 

 

 

 

 

 

 

 

Condensed Consolidated Income Statements

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(dollars in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

Loans

 

$

945.3

 

$

860.8

 

 

$

2,713.9

 

 

$

2,550.7

 

Investment securities

 

 

197.1

 

 

122.8

 

 

 

531.6

 

 

 

331.3

 

Other

 

 

57.6

 

 

43.0

 

 

 

157.0

 

 

 

114.3

 

Total interest income

 

 

1,200.0

 

 

1,026.6

 

 

 

3,402.5

 

 

 

2,996.3

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

422.1

 

 

316.2

 

 

 

1,213.0

 

 

 

798.9

 

Qualifying debt

 

 

9.5

 

 

9.5

 

 

 

28.6

 

 

 

28.3

 

Borrowings

 

 

71.5

 

 

113.9

 

 

 

208.5

 

 

 

421.9

 

Total interest expense

 

 

503.1

 

 

439.6

 

 

 

1,450.1

 

 

 

1,249.1

 

Net interest income

 

 

696.9

 

 

587.0

 

 

 

1,952.4

 

 

 

1,747.2

 

Provision for credit losses

 

 

33.6

 

 

12.1

 

 

 

85.9

 

 

 

53.3

 

Net interest income after provision for credit losses

 

 

663.3

 

 

574.9

 

 

 

1,866.5

 

 

 

1,693.9

 

Non-interest income:

 

 

 

 

 

 

 

 

Net gain on loan origination and sale activities

 

 

46.3

 

 

52.0

 

 

 

138.4

 

 

 

145.7

 

Service charges and loan fees

 

 

30.1

 

 

29.7

 

 

 

64.3

 

 

 

72.3

 

Net loan servicing revenue

 

 

12.3

 

 

27.2

 

 

 

96.8

 

 

 

93.2

 

Income from equity investments

 

 

5.8

 

 

0.5

 

 

 

27.1

 

 

 

2.6

 

Gain (loss) on sales of investment securities

 

 

8.8

 

 

0.1

 

 

 

10.2

 

 

 

(26.0

)

Fair value gain (loss) adjustments, net

 

 

4.1

 

 

17.8

 

 

 

5.1

 

 

 

(117.3

)

Gain (loss) on recovery from credit guarantees

 

 

0.2

 

 

(4.0

)

 

 

(2.8

)

 

 

0.5

 

Other

 

 

18.6

 

 

5.9

 

 

 

32.2

 

 

 

19.2

 

Total non-interest income

 

 

126.2

 

 

129.2

 

 

 

371.3

 

 

 

190.2

 

Non-interest expenses:

 

 

 

 

 

 

 

 

Deposit costs

 

 

208.0

 

 

127.8

 

 

 

518.7

 

 

 

305.7

 

Salaries and employee benefits

 

 

157.8

 

 

137.2

 

 

 

465.7

 

 

 

431.7

 

Data processing

 

 

38.7

 

 

33.9

 

 

 

110.4

 

 

 

88.9

 

Insurance

 

 

35.4

 

 

33.1

 

 

 

128.1

 

 

 

81.8

 

Legal, professional, and directors' fees

 

 

24.8

 

 

28.3

 

 

 

80.7

 

 

 

77.8

 

Loan servicing expenses

 

 

18.7

 

 

11.9

 

 

 

50.3

 

 

 

44.1

 

Occupancy

 

 

17.6

 

 

16.8

 

 

 

53.5

 

 

 

48.7

 

Business development and marketing

 

 

9.7

 

 

4.9

 

 

 

21.6

 

 

 

15.1

 

Loan acquisition and origination expenses

 

 

5.9

 

 

5.6

 

 

 

15.8

 

 

 

15.6

 

Gain on extinguishment of debt

 

 

—

 

 

—

 

 

 

—

 

 

 

(13.4

)

Other

 

 

20.8

 

 

26.7

 

 

 

61.2

 

 

 

65.5

 

Total non-interest expense

 

 

537.4

 

 

426.2

 

 

 

1,506.0

 

 

 

1,161.5

 

Income before income taxes

 

 

252.1

 

 

277.9

 

 

 

731.8

 

 

 

722.6

 

Income tax expense

 

 

52.3

 

 

61.3

 

 

 

161.0

 

 

 

148.1

 

Net income

 

 

199.8

 

 

216.6

 

 

 

570.8

 

 

 

574.5

 

Dividends on preferred stock

 

 

3.2

 

 

3.2

 

 

 

9.6

 

 

 

9.6

 

Net income available to common stockholders

 

$

196.6

 

$

213.4

 

 

$

561.2

 

 

$

564.9

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted shares

 

 

109.5

 

 

108.5

 

 

 

109.2

 

 

 

108.4

 

Diluted earnings per share

 

$

1.80

 

$

1.97

 

 

$

5.14

 

 

$

5.21

 

Western Alliance Bancorporation and Subsidiaries

 

 

 

 

 

 

 

 

Five Quarter Condensed Consolidated Income Statements

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

 

(in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

945.3

 

$

896.7

 

 

$

871.9

 

 

$

859.0

 

 

$

860.8

 

Investment securities

 

 

197.1

 

 

190.5

 

 

 

144.0

 

 

 

136.2

 

 

 

122.8

 

Other

 

 

57.6

 

 

60.3

 

 

 

39.1

 

 

 

43.8

 

 

 

43.0

 

Total interest income

 

 

1,200.0

 

 

1,147.5

 

 

 

1,055.0

 

 

 

1,039.0

 

 

 

1,026.6

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

422.1

 

 

410.3

 

 

 

380.6

 

 

 

343.7

 

 

 

316.2

 

Qualifying debt

 

 

9.5

 

 

9.6

 

 

 

9.5

 

 

 

9.6

 

 

 

9.5

 

Borrowings

 

 

71.5

 

 

71.0

 

 

 

66.0

 

 

 

94.0

 

 

 

113.9

 

Total interest expense

 

 

503.1

 

 

490.9

 

 

 

456.1

 

 

 

447.3

 

 

 

439.6

 

Net interest income

 

 

696.9

 

 

656.6

 

 

 

598.9

 

 

 

591.7

 

 

 

587.0

 

Provision for credit losses

 

 

33.6

 

 

37.1

 

 

 

15.2

 

 

 

9.3

 

 

 

12.1

 

Net interest income after provision for credit losses

 

 

663.3

 

 

619.5

 

 

 

583.7

 

 

 

582.4

 

 

 

574.9

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Net gain on loan origination and sale activities

 

 

46.3

 

 

46.8

 

 

 

45.3

 

 

 

47.8

 

 

 

52.0

 

Service charges and loan fees

 

 

30.1

 

 

17.8

 

 

 

16.4

 

 

 

28.7

 

 

 

29.7

 

Net loan servicing revenue

 

 

12.3

 

 

38.1

 

 

 

46.4

 

 

 

9.1

 

 

 

27.2

 

Income from equity investments

 

 

5.8

 

 

4.2

 

 

 

17.1

 

 

 

13.1

 

 

 

0.5

 

Gain (loss) on sales of investment securities

 

 

8.8

 

 

2.3

 

 

 

(0.9

)

 

 

(14.8

)

 

 

0.1

 

Fair value gain (loss) adjustments, net

 

 

4.1

 

 

0.7

 

 

 

0.3

 

 

 

1.3

 

 

 

17.8

 

Gain (loss) on recovery from credit guarantees

 

 

0.2

 

 

(2.5

)

 

 

(0.5

)

 

 

(2.7

)

 

 

(4.0

)

Other

 

 

18.6

 

 

7.8

 

 

 

5.8

 

 

 

8.0

 

 

 

5.9

 

Total non-interest income

 

 

126.2

 

 

115.2

 

 

 

129.9

 

 

 

90.5

 

 

 

129.2

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

Deposit costs

 

 

208.0

 

 

173.7

 

 

 

137.0

 

 

 

131.0

 

 

 

127.8

 

Salaries and employee benefits

 

 

157.8

 

 

153.0

 

 

 

154.9

 

 

 

134.6

 

 

 

137.2

 

Data processing

 

 

38.7

 

 

35.7

 

 

 

36.0

 

 

 

33.1

 

 

 

33.9

 

Insurance

 

 

35.4

 

 

33.8

 

 

 

58.9

 

 

 

108.6

 

 

 

33.1

 

Legal, professional, and directors' fees

 

 

24.8

 

 

25.8

 

 

 

30.1

 

 

 

29.4

 

 

 

28.3

 

Loan servicing expenses

 

 

18.7

 

 

16.6

 

 

 

15.0

 

 

 

14.7

 

 

 

11.9

 

Occupancy

 

 

17.6

 

 

18.4

 

 

 

17.5

 

 

 

16.9

 

 

 

16.8

 

Business development and marketing

 

 

9.7

 

 

6.4

 

 

 

5.5

 

 

 

6.7

 

 

 

4.9

 

Loan acquisition and origination expenses

 

 

5.9

 

 

5.1

 

 

 

4.8

 

 

 

4.8

 

 

 

5.6

 

Gain on extinguishment of debt

 

 

—

 

 

—

 

 

 

—

 

 

 

(39.3

)

 

 

—

 

Other

 

 

20.8

 

 

18.3

 

 

 

22.1

 

 

 

21.4

 

 

 

26.7

 

Total non-interest expense

 

 

537.4

 

 

486.8

 

 

 

481.8

 

 

 

461.9

 

 

 

426.2

 

Income before income taxes

 

 

252.1

 

 

247.9

 

 

 

231.8

 

 

 

211.0

 

 

 

277.9

 

Income tax expense

 

 

52.3

 

 

54.3

 

 

 

54.4

 

 

 

63.1

 

 

 

61.3

 

Net income

 

 

199.8

 

 

193.6

 

 

 

177.4

 

 

 

147.9

 

 

 

216.6

 

Dividends on preferred stock

 

 

3.2

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

Net income available to common stockholders

 

$

196.6

 

$

190.4

 

 

$

174.2

 

 

$

144.7

 

 

$

213.4

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Diluted shares

 

 

109.5

 

 

109.1

 

 

 

109.0

 

 

 

108.7

 

 

 

108.5

 

Diluted earnings per share

 

$

1.80

 

$

1.75

 

 

$

1.60

 

 

$

1.33

 

 

$

1.97

 

Western Alliance Bancorporation and Subsidiaries

 

 

 

 

 

 

 

 

 

 

Five Quarter Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

 

(in millions)

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

2,592

 

 

$

4,077

 

 

$

3,550

 

 

$

1,576

 

 

$

3,497

 

Investment securities

 

 

16,382

 

 

 

17,268

 

 

 

16,092

 

 

 

12,712

 

 

 

11,204

 

Loans held for sale

 

 

2,327

 

 

 

2,007

 

 

 

1,841

 

 

 

1,402

 

 

 

1,766

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

22,551

 

 

 

21,690

 

 

 

19,749

 

 

 

19,103

 

 

 

18,344

 

Commercial real estate - non-owner occupied

 

 

9,801

 

 

 

9,647

 

 

 

9,637

 

 

 

9,650

 

 

 

9,810

 

Commercial real estate - owner occupied

 

 

1,817

 

 

 

1,886

 

 

 

1,859

 

 

 

1,810

 

 

 

1,771

 

Construction and land development

 

 

4,727

 

 

 

4,712

 

 

 

4,781

 

 

 

4,889

 

 

 

4,669

 

Residential real estate

 

 

14,395

 

 

 

14,445

 

 

 

14,624

 

 

 

14,778

 

 

 

14,779

 

Consumer

 

 

55

 

 

 

50

 

 

 

50

 

 

 

67

 

 

 

74

 

Loans HFI, net of deferred fees

 

 

53,346

 

 

 

52,430

 

 

 

50,700

 

 

 

50,297

 

 

 

49,447

 

Allowance for loan losses

 

 

(357

)

 

 

(352

)

 

 

(340

)

 

 

(337

)

 

 

(327

)

Loans HFI, net of deferred fees and allowance

 

 

52,989

 

 

 

52,078

 

 

 

50,360

 

 

 

49,960

 

 

 

49,120

 

Mortgage servicing rights

 

 

1,011

 

 

 

1,145

 

 

 

1,178

 

 

 

1,124

 

 

 

1,233

 

Premises and equipment, net

 

 

354

 

 

 

351

 

 

 

344

 

 

 

339

 

 

 

327

 

Operating lease right-of-use asset

 

 

127

 

 

 

133

 

 

 

139

 

 

 

145

 

 

 

150

 

Other assets acquired through foreclosure, net

 

 

8

 

 

 

8

 

 

 

8

 

 

 

8

 

 

 

8

 

Bank owned life insurance

 

 

1,000

 

 

 

187

 

 

 

187

 

 

 

186

 

 

 

184

 

Goodwill and other intangibles, net

 

 

661

 

 

 

664

 

 

 

666

 

 

 

669

 

 

 

672

 

Other assets

 

 

2,629

 

 

 

2,663

 

 

 

2,624

 

 

 

2,741

 

 

 

2,730

 

Total assets

 

$

80,080

 

 

$

80,581

 

 

$

76,989

 

 

$

70,862

 

 

$

70,891

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Non-interest bearing deposits

 

$

24,965

 

 

$

21,522

 

 

$

18,399

 

 

$

14,520

 

 

$

17,991

 

Interest bearing:

 

 

 

 

 

 

 

 

 

 

Demand

 

 

13,846

 

 

 

17,267

 

 

 

16,965

 

 

 

15,916

 

 

 

12,843

 

Savings and money market

 

 

19,575

 

 

 

17,087

 

 

 

16,194

 

 

 

14,791

 

 

 

14,672

 

Certificates of deposit

 

 

9,654

 

 

 

10,368

 

 

 

10,670

 

 

 

10,106

 

 

 

8,781

 

Total deposits

 

 

68,040

 

 

 

66,244

 

 

 

62,228

 

 

 

55,333

 

 

 

54,287

 

Borrowings

 

 

2,995

 

 

 

5,587

 

 

 

6,221

 

 

 

7,230

 

 

 

8,745

 

Qualifying debt

 

 

898

 

 

 

897

 

 

 

896

 

 

 

895

 

 

 

890

 

Operating lease liability

 

 

159

 

 

 

165

 

 

 

172

 

 

 

179

 

 

 

180

 

Accrued interest payable and other liabilities

 

 

1,311

 

 

 

1,354

 

 

 

1,300

 

 

 

1,147

 

 

 

1,043

 

Total liabilities

 

 

73,403

 

 

 

74,247

 

 

 

70,817

 

 

 

64,784

 

 

 

65,145

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

Common stock and additional paid-in capital

 

 

2,110

 

 

 

2,099

 

 

 

2,087

 

 

 

2,081

 

 

 

2,073

 

Retained earnings

 

 

4,654

 

 

 

4,498

 

 

 

4,348

 

 

 

4,215

 

 

 

4,111

 

Accumulated other comprehensive loss

 

 

(382

)

 

 

(558

)

 

 

(558

)

 

 

(513

)

 

 

(733

)

Total stockholders' equity

 

 

6,677

 

 

 

6,334

 

 

 

6,172

 

 

 

6,078

 

 

 

5,746

 

Total liabilities and stockholders' equity

 

$

80,080

 

 

$

80,581

 

 

$

76,989

 

 

$

70,862

 

 

$

70,891

 

Western Alliance Bancorporation and Subsidiaries

 

 

 

 

 

 

 

 

 

 

Changes in the Allowance For Credit Losses on Loans

 

 

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

 

(in millions)

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

351.8

 

 

$

340.3

 

 

$

336.7

 

 

$

327.4

 

 

$

321.1

 

Provision for credit losses (1)

 

 

31.4

 

 

 

34.3

 

 

 

13.4

 

 

 

17.8

 

 

 

14.3

 

Recoveries of loans previously charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.5

 

 

 

0.1

 

 

 

0.4

 

 

 

0.7

 

 

 

0.4

 

Commercial real estate - non-owner occupied

 

 

0.7

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate - owner occupied

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

—

 

Construction and land development

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total recoveries

 

 

1.2

 

 

 

0.1

 

 

 

0.4

 

 

 

0.8

 

 

 

0.5

 

Loans charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

4.3

 

 

 

5.3

 

 

 

2.3

 

 

 

9.3

 

 

 

5.5

 

Commercial real estate - non-owner occupied

 

 

21.7

 

 

 

17.6

 

 

 

7.9

 

 

 

—

 

 

 

3.0

 

Commercial real estate - owner occupied

 

 

0.3

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Construction and land development

 

 

1.5

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Residential real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Consumer

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans charged-off

 

 

27.8

 

 

 

22.9

 

 

 

10.2

 

 

 

9.3

 

 

 

8.5

 

Net loan charge-offs

 

 

26.6

 

 

 

22.8

 

 

 

9.8

 

 

 

8.5

 

 

 

8.0

 

Balance, end of period

 

$

356.6

 

 

$

351.8

 

 

$

340.3

 

 

$

336.7

 

 

$

327.4

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for unfunded loan commitments

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

35.9

 

 

$

33.1

 

 

$

31.6

 

 

$

37.9

 

 

$

41.1

 

Provision for (recovery of) credit losses (1)

 

 

1.7

 

 

 

2.8

 

 

 

1.5

 

 

 

(6.3

)

 

 

(3.2

)

Balance, end of period (2)

 

$

37.6

 

 

$

35.9

 

 

$

33.1

 

 

$

31.6

 

 

$

37.9

 

 

 

 

 

 

 

 

 

 

 

 

Components of the allowance for credit losses on loans

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

356.6

 

 

$

351.8

 

 

$

340.3

 

 

$

336.7

 

 

$

327.4

 

Allowance for unfunded loan commitments

 

 

37.6

 

 

 

35.9

 

 

 

33.1

 

 

 

31.6

 

 

 

37.9

 

Total allowance for credit losses on loans

 

$

394.2

 

 

$

387.7

 

 

$

373.4

 

 

$

368.3

 

 

$

365.3

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans - annualized

 

 

0.20

%

 

 

0.18

%

 

 

0.08

%

 

 

0.07

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

Allowance ratios

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans (3)

 

 

0.67

%

 

 

0.67

%

 

 

0.67

%

 

 

0.67

%

 

 

0.66

%

Allowance for credit losses to funded HFI loans (3)

 

 

0.74

 

 

 

0.74

 

 

 

0.74

 

 

 

0.73

 

 

 

0.74

 

Allowance for loan losses to nonaccrual HFI loans

 

 

102

 

 

 

88

 

 

 

85

 

 

 

123

 

 

 

138

 

Allowance for credit losses to nonaccrual HFI loans

 

 

113

 

 

 

97

 

 

 

94

 

 

 

135

 

 

 

154

 

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $0.4 million provision release on AFS investment securities and a $0.9 million provision for credit losses on HTM investment securities for the three months ended September 30, 2024. The allowance for credit losses on AFS and HTM investment securities totaled $0.4 million and $9.6 million, respectively, as of September 30, 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 $11.8 million as of September 30, 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

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

 

(in millions)

Nonaccrual loans and repossessed assets

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

349

 

 

$

401

 

 

$

399

 

 

$

273

 

 

$

237

 

Nonaccrual loans to funded HFI loans

 

 

0.65

%

 

 

0.76

%

 

 

0.79

%

 

 

0.54

%

 

 

0.48

%

Repossessed assets

 

$

8

 

 

$

8

 

 

$

8

 

 

$

8

 

 

$

8

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.45

%

 

 

0.51

%

 

 

0.53

%

 

 

0.40

%

 

 

0.35

%

 

 

 

 

 

 

 

 

 

 

 

Loans Past Due

 

 

 

 

 

 

 

 

 

 

Loans past due 90 days, still accruing (1)

 

$

4

 

 

$

—

 

 

$

6

 

 

$

42

 

 

$

—

 

Loans past due 90 days, still accruing to funded HFI loans

 

 

0.01

%

 

 

—

%

 

 

0.01

%

 

 

0.08

%

 

 

—

%

Loans past due 30 to 89 days, still accruing (2)

 

$

110

 

 

$

83

 

 

$

117

 

 

$

164

 

 

$

189

 

Loans past due 30 to 89 days, still accruing to funded HFI loans

 

 

0.21

%

 

 

0.16

%

 

 

0.23

%

 

 

0.33

%

 

 

0.38

%

 

 

 

 

 

 

 

 

 

 

 

Other credit quality metrics

 

 

 

 

 

 

 

 

 

 

Special mention loans

 

$

502

 

 

$

532

 

 

$

394

 

 

$

641

 

 

$

668

 

Special mention loans to funded HFI loans

 

 

0.94

%

 

 

1.01

%

 

 

0.78

%

 

 

1.27

%

 

 

1.35

%

 

 

 

 

 

 

 

 

 

 

 

Classified loans on accrual

 

$

479

 

 

$

328

 

 

$

361

 

 

$

379

 

 

$

381

 

Classified loans on accrual to funded HFI loans

 

 

0.90

%

 

 

0.63

%

 

 

0.71

%

 

 

0.75

%

 

 

0.77

%

Classified assets

 

$

838

 

 

$

748

 

 

$

781

 

 

$

673

 

 

$

639

 

Classified assets to total assets

 

 

1.05

%

 

 

0.93

%

 

 

1.01

%

 

 

0.95

%

 

 

0.90

%

(1)

Excludes government guaranteed residential mortgage loans of $313 million, $330 million, $349 million, $399 million, and $439 million as of each respective date in the table above.

(2)

Excludes government guaranteed residential mortgage loans of $203 million, $221 million, $224 million, $279 million, and $261 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

 

 

September 30, 2024

 

June 30, 2024

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans HFS

 

$

4,288

 

 

$

66.9

 

6.21

%

 

$

2,860

 

 

$

43.0

 

6.05

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

21,982

 

 

 

392.0

 

7.15

 

 

 

19,913

 

 

 

370.1

 

7.54

 

CRE - non-owner occupied

 

 

9,689

 

 

 

190.4

 

7.83

 

 

 

9,680

 

 

 

185.0

 

7.69

 

CRE - owner occupied

 

 

1,833

 

 

 

28.2

 

6.23

 

 

 

1,865

 

 

 

28.5

 

6.24

 

Construction and land development

 

 

4,757

 

 

 

110.7

 

9.26

 

 

 

4,740

 

 

 

112.3

 

9.53

 

Residential real estate

 

 

14,441

 

 

 

156.1

 

4.30

 

 

 

14,531

 

 

 

157.0

 

4.35

 

Consumer

 

 

53

 

 

 

1.0

 

7.15

 

 

 

48

 

 

 

0.8

 

6.94

 

Total HFI loans (1), (2), (3)

 

 

52,755

 

 

 

878.4

 

6.65

 

 

 

50,777

 

 

 

853.7

 

6.79

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

14,321

 

 

 

173.4

 

4.82

 

 

 

14,029

 

 

 

166.5

 

4.77

 

Tax-exempt

 

 

2,225

 

 

 

23.7

 

5.33

 

 

 

2,221

 

 

 

24.0

 

5.45

 

Total investment securities (1)

 

 

16,546

 

 

 

197.1

 

4.89

 

 

 

16,250

 

 

 

190.5

 

4.87

 

Cash and other

 

 

4,206

 

 

 

57.6

 

5.44

 

 

 

3,983

 

 

 

60.3

 

6.09

 

Total interest earning assets

 

 

77,795

 

 

 

1,200.0

 

6.19

 

 

 

73,870

 

 

 

1,147.5

 

6.30

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

278

 

 

 

 

 

 

 

294

 

 

 

 

 

Allowance for credit losses

 

 

(366

)

 

 

 

 

 

 

(350

)

 

 

 

 

Bank owned life insurance

 

 

973

 

 

 

 

 

 

 

187

 

 

 

 

 

Other assets

 

 

4,409

 

 

 

 

 

 

 

4,554

 

 

 

 

 

Total assets

 

$

83,089

 

 

 

 

 

 

$

78,555

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

 

$

16,456

 

 

$

126.2

 

3.05

%

 

$

17,276

 

 

$

131.2

 

3.05

%

Savings and money market

 

 

18,092

 

 

 

166.3

 

3.66

 

 

 

16,579

 

 

 

146.2

 

3.55

 

Certificates of deposit

 

 

10,134

 

 

 

129.6

 

5.09

 

 

 

10,427

 

 

 

132.9

 

5.12

 

Total interest-bearing deposits

 

 

44,682

 

 

 

422.1

 

3.76

 

 

 

44,282

 

 

 

410.3

 

3.73

 

Short-term borrowings

 

 

4,214

 

 

 

57.8

 

5.46

 

 

 

4,165

 

 

 

58.9

 

5.69

 

Long-term debt

 

 

569

 

 

 

13.7

 

9.57

 

 

 

437

 

 

 

12.1

 

11.19

 

Qualifying debt

 

 

897

 

 

 

9.5

 

4.23

 

 

 

896

 

 

 

9.6

 

4.28

 

Total interest-bearing liabilities

 

 

50,362

 

 

 

503.1

 

3.97

 

 

 

49,780

 

 

 

490.9

 

3.97

 

Interest cost of funding earning assets

 

 

 

2.58

 

 

 

 

 

 

2.67

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

24,638

 

 

 

 

 

 

 

20,996

 

 

 

 

 

Other liabilities

 

 

1,457

 

 

 

 

 

 

 

1,449

 

 

 

 

 

Stockholders’ equity

 

 

6,632

 

 

 

 

 

 

 

6,330

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

83,089

 

 

 

 

 

 

$

78,555

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

696.9

 

3.61

%

 

 

 

$

656.6

 

3.63

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $9.9 million for the three months ended September 30, 2024 and June 30, 2024, respectively.

(2)

Included in the yield computation are net loan fees of $21.7 million and $32.1 million for the three months ended September 30, 2024 and June 30, 2024, 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

 

 

September 30, 2024

 

September 30, 2023

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

4,288

 

 

$

66.9

 

6.21

%

 

$

3,069

 

 

$

47.3

 

6.11

%

Loans HFI:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

21,982

 

 

 

392.0

 

7.15

 

 

 

16,855

 

 

 

324.3

 

7.70

 

CRE - non-owner-occupied

 

 

9,689

 

 

 

190.4

 

7.83

 

 

 

9,950

 

 

 

196.1

 

7.83

 

CRE - owner-occupied

 

 

1,833

 

 

 

28.2

 

6.23

 

 

 

1,790

 

 

 

26.4

 

5.97

 

Construction and land development

 

 

4,757

 

 

 

110.7

 

9.26

 

 

 

4,545

 

 

 

110.3

 

9.63

 

Residential real estate

 

 

14,441

 

 

 

156.1

 

4.30

 

 

 

14,914

 

 

 

155.0

 

4.12

 

Consumer

 

 

53

 

 

 

1.0

 

7.15

 

 

 

73

 

 

 

1.4

 

7.43

 

Total loans HFI (1), (2), (3)

 

 

52,755

 

 

 

878.4

 

6.65

 

 

 

48,127

 

 

 

813.5

 

6.73

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

14,321

 

 

 

173.4

 

4.82

 

 

 

8,272

 

 

 

101.1

 

4.85

 

Tax-exempt

 

 

2,225

 

 

 

23.7

 

5.33

 

 

 

2,103

 

 

 

21.7

 

5.12

 

Total investment securities (1)

 

 

16,546

 

 

 

197.1

 

4.89

 

 

 

10,375

 

 

 

122.8

 

4.91

 

Cash and other

 

 

4,206

 

 

 

57.6

 

5.44

 

 

 

2,911

 

 

 

43.0

 

5.87

 

Total interest earning assets

 

 

77,795

 

 

 

1,200.0

 

6.19

 

 

 

64,482

 

 

 

1,026.6

 

6.37

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

278

 

 

 

 

 

 

 

279

 

 

 

 

 

Allowance for credit losses

 

 

(366

)

 

 

 

 

 

 

(334

)

 

 

 

 

Bank owned life insurance

 

 

973

 

 

 

 

 

 

 

184

 

 

 

 

 

Other assets

 

 

4,409

 

 

 

 

 

 

 

4,513

 

 

 

 

 

Total assets

 

$

83,089

 

 

 

 

 

 

$

69,124

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

 

$

16,456

 

 

$

126.2

 

3.05

%

 

$

12,947

 

 

$

98.9

 

3.03

%

Savings and money market accounts

 

 

18,092

 

 

 

166.3

 

3.66

 

 

 

13,832

 

 

 

106.3

 

3.05

 

Certificates of deposit

 

 

10,134

 

 

 

129.6

 

5.09

 

 

 

9,125

 

 

 

111.0

 

4.83

 

Total interest-bearing deposits

 

 

44,682

 

 

 

422.1

 

3.76

 

 

 

35,904

 

 

 

316.2

 

3.49

 

Short-term borrowings

 

 

4,214

 

 

 

57.8

 

5.46

 

 

 

6,260

 

 

 

97.2

 

6.16

 

Long-term debt

 

 

569

 

 

 

13.7

 

9.57

 

 

 

764

 

 

 

16.7

 

8.68

 

Qualifying debt

 

 

897

 

 

 

9.5

 

4.23

 

 

 

888

 

 

 

9.5

 

4.26

 

Total interest-bearing liabilities

 

 

50,362

 

 

 

503.1

 

3.97

 

 

 

43,816

 

 

 

439.6

 

3.98

 

Interest cost of funding earning assets

 

 

 

2.58

 

 

 

 

 

 

2.70

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

24,638

 

 

 

 

 

 

 

18,402

 

 

 

 

 

Other liabilities

 

 

1,457

 

 

 

 

 

 

 

1,052

 

 

 

 

 

Stockholders’ equity

 

 

6,632

 

 

 

 

 

 

 

5,854

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

83,089

 

 

 

 

 

 

$

69,124

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

696.9

 

3.61

%

 

 

 

$

587.0

 

3.67

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $8.9 million for the three months ended September 30, 2024 and 2023, respectively.

(2)

Included in the yield computation are net loan fees of $21.7 million and $28.0 million for the three months ended September 30, 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

 

 

 

 

 

 

 

 

Analysis of Average Balances, Yields and Rates

 

 

 

 

 

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

September 30, 2024

 

September 30, 2023

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans HFS

 

$

3,192

 

 

$

149.1

 

6.24

%

 

$

3,858

 

 

$

183.8

 

6.37

%

Loans HFI:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

20,220

 

 

 

1,107.8

 

7.38

 

 

 

17,669

 

 

 

994.7

 

7.59

 

CRE - non-owner occupied

 

 

9,613

 

 

 

560.6

 

7.80

 

 

 

9,743

 

 

 

546.2

 

7.50

 

CRE - owner occupied

 

 

1,835

 

 

 

83.5

 

6.18

 

 

 

1,805

 

 

 

76.2

 

5.76

 

Construction and land development

 

 

4,806

 

 

 

340.0

 

9.45

 

 

 

4,399

 

 

 

307.1

 

9.34

 

Residential real estate

 

 

14,565

 

 

 

470.0

 

4.31

 

 

 

15,250

 

 

 

438.8

 

3.85

 

Consumer

 

 

54

 

 

 

2.9

 

7.14

 

 

 

73

 

 

 

3.9

 

7.14

 

Total loans HFI (1), (2), (3)

 

 

51,093

 

 

 

2,564.8

 

6.74

 

 

 

48,939

 

 

 

2,366.9

 

6.49

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

13,027

 

 

 

461.0

 

4.73

 

 

 

7,609

 

 

 

267.7

 

4.70

 

Tax-exempt

 

 

2,217

 

 

 

70.6

 

5.34

 

 

 

2,094

 

 

 

63.6

 

5.08

 

Total investment securities (1)

 

 

15,244

 

 

 

531.6

 

4.82

 

 

 

9,703

 

 

 

331.3

 

4.79

 

Cash and other

 

 

3,716

 

 

 

157.0

 

5.64

 

 

 

2,941

 

 

 

114.3

 

5.20

 

Total interest earning assets

 

 

73,245

 

 

 

3,402.5

 

6.26

 

 

 

65,441

 

 

 

2,996.3

 

6.18

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

285

 

 

 

 

 

 

 

268

 

 

 

 

 

Allowance for credit losses

 

 

(355

)

 

 

 

 

 

 

(321

)

 

 

 

 

Bank owned life insurance

 

 

451

 

 

 

 

 

 

 

183

 

 

 

 

 

Other assets

 

 

4,501

 

 

 

 

 

 

 

4,600

 

 

 

 

 

Total assets

 

$

78,127

 

 

 

 

 

 

$

70,171

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand accounts

 

$

16,693

 

 

$

379.4

 

3.04

%

 

$

11,800

 

 

$

247.4

 

2.80

%

Savings and money market accounts

 

 

16,644

 

 

 

442.4

 

3.55

 

 

 

15,006

 

 

 

308.9

 

2.75

 

Certificates of deposit

 

 

10,230

 

 

 

391.2

 

5.11

 

 

 

7,437

 

 

 

242.6

 

4.36

 

Total interest-bearing deposits

 

 

43,567

 

 

 

1,213.0

 

3.72

 

 

 

34,243

 

 

 

798.9

 

3.12

 

Short-term borrowings

 

 

4,032

 

 

 

170.4

 

5.65

 

 

 

8,578

 

 

 

355.2

 

5.54

 

Long-term debt

 

 

483

 

 

 

38.1

 

10.51

 

 

 

953

 

 

 

66.7

 

9.36

 

Qualifying debt

 

 

896

 

 

 

28.6

 

4.26

 

 

 

892

 

 

 

28.3

 

4.24

 

Total interest-bearing liabilities

 

 

48,978

 

 

 

1,450.1

 

3.95

 

 

 

44,666

 

 

 

1,249.1

 

3.74

 

Interest cost of funding earning assets

 

 

 

2.65

 

 

 

 

 

 

2.56

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

 

21,284

 

 

 

 

 

 

 

18,534

 

 

 

 

 

Other liabilities

 

 

1,481

 

 

 

 

 

 

 

1,272

 

 

 

 

 

Stockholders’ equity

 

 

6,384

 

 

 

 

 

 

 

5,699

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

78,127

 

 

 

 

 

 

$

70,171

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

1,952.4

 

3.61

%

 

 

 

$

1,747.2

 

3.62

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $29.5 million and $26.4 million for the nine months ended September 30, 2024 and 2023, respectively.

(2)

Included in the yield computation are net loan fees of $86.9 million and $100.4 million for the nine months ended September 30, 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

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter:

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

(in millions)

Net interest income

$

696.9

 

$

656.6

 

$

598.9

 

$

591.7

 

$

587.0

Total non-interest income

 

126.2

 

 

115.2

 

 

129.9

 

 

90.5

 

 

129.2

Net revenue

$

823.1

 

$

771.8

 

$

728.8

 

$

682.2

 

$

716.2

Total non-interest expense

 

537.4

 

 

486.8

 

 

481.8

 

 

461.9

 

 

426.2

Pre-provision net revenue (1)

$

285.7

 

$

285.0

 

$

247.0

 

$

220.3

 

$

290.0

Adjusted for:

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

33.6

 

 

37.1

 

 

15.2

 

 

9.3

 

 

12.1

Income tax expense

 

52.3

 

 

54.3

 

 

54.4

 

 

63.1

 

 

61.3

Net income

$

199.8

 

$

193.6

 

$

177.4

 

$

147.9

 

$

216.6

Efficiency Ratio (Tax Equivalent Basis) by Quarter:

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

(dollars in millions)

Total non-interest expense

$

537.4

 

 

$

486.8

 

 

$

481.8

 

 

$

461.9

 

 

$

426.2

 

Less: Deposit costs

 

208.0

 

 

 

173.7

 

 

 

137.0

 

 

 

131.0

 

 

 

127.8

 

Total non-interest expense, excluding deposit costs

 

329.4

 

 

 

313.1

 

 

 

344.8

 

 

 

330.9

 

 

 

298.4

 

Divided by:

 

 

 

 

 

 

 

 

 

Total net interest income

 

696.9

 

 

 

656.6

 

 

 

598.9

 

 

 

591.7

 

 

 

587.0

 

Plus:

 

 

 

 

 

 

 

 

 

Tax equivalent interest adjustment

 

10.0

 

 

 

9.9

 

 

 

9.6

 

 

 

9.1

 

 

 

8.9

 

Total non-interest income

 

126.2

 

 

 

115.2

 

 

 

129.9

 

 

 

90.5

 

 

 

129.2

 

Less: Deposit costs

 

208.0

 

 

 

173.7

 

 

 

137.0

 

 

 

131.0

 

 

 

127.8

 

 

$

625.1

 

 

$

608.0

 

 

$

601.4

 

 

$

560.3

 

 

$

597.3

 

Efficiency ratio (2)

 

64.5

%

 

 

62.3

%

 

 

65.2

%

 

 

66.8

%

 

 

58.8

%

Efficiency ratio, adjusted for deposit costs (2)

 

52.7

%

 

 

51.5

%

 

 

57.3

%

 

 

59.1

%

 

 

50.0

%

Tangible Common Equity:

 

 

 

 

 

 

 

 

 

 

Sep 30, 2024

 

Jun 30, 2024

 

Mar 31, 2024

 

Dec 31, 2023

 

Sep 30, 2023

 

(dollars and shares in millions, except per share data)

Total stockholders' equity

$

6,677

 

 

$

6,334

 

 

$

6,172

 

 

$

6,078

 

 

$

5,746

 

Less:

 

 

 

 

 

 

 

 

 

Goodwill and intangible assets

 

661

 

 

 

664

 

 

 

666

 

 

 

669

 

 

 

672

 

Preferred stock

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

Total tangible common equity

 

5,721

 

 

 

5,375

 

 

 

5,211

 

 

 

5,114

 

 

 

4,779

 

Plus: deferred tax - attributed to intangible assets

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

Total tangible common equity, net of tax

$

5,723

 

 

$

5,377

 

 

$

5,213

 

 

$

5,116

 

 

$

4,781

 

Total assets

$

80,080

 

 

$

80,581

 

 

$

76,989

 

 

$

70,862

 

 

$

70,891

 

Less: goodwill and intangible assets, net

 

661

 

 

 

664

 

 

 

666

 

 

 

669

 

 

 

672

 

Tangible assets

 

79,419

 

 

 

79,917

 

 

 

76,323

 

 

 

70,193

 

 

 

70,219

 

Plus: deferred tax - attributed to intangible assets

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

2

 

Total tangible assets, net of tax

$

79,421

 

 

$

79,919

 

 

$

76,325

 

 

$

70,195

 

 

$

70,221

 

Tangible common equity ratio (3)

 

7.2

%

 

 

6.7

%

 

 

6.8

%

 

 

7.3

%

 

 

6.8

%

Common shares outstanding

 

110.1

 

 

 

110.2

 

 

 

110.2

 

 

 

109.5

 

 

 

109.5

 

Tangible book value per share, net of tax (3)

$

51.98

 

 

$

48.79

 

 

$

47.30

 

 

$

46.72

 

 

$

43.66

 

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/20241016746260/en/

Investors: Miles Pondelik, 602-346-7462 Email: MPondelik@westernalliancebank.com

Media: Stephanie Whitlow, 480-998-6547 Email: SWhitlow@westernalliancebank.com