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Western Alliance Bancorporation Reports Third Quarter 2022 Financial Results

Western Alliance Bancorporation (NYSE:WAL):

THIRD QUARTER 2022 FINANCIAL RESULTS

Third Quarter Highlights:

 

Net income

 

Earnings per share

 

PPNR1

 

Net interest margin

 

Efficiency ratio1

 

Book value per

common share

 

 

 

 

 

 

 

 

 

 

$43.39

$264.0 million

 

$2.42

 

$358.1 million

 

3.78%

 

45.5%

 

$37.161, excluding

goodwill and intangibles

CEO COMMENTARY:

“Western Alliance continued to execute on its diversified, national commercial business strategy, thoughtfully deploying liquidity into sound organic growth, generating record PPNR and earnings for the third quarter 2022,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly loan and deposit growth of $3.6 billion and $1.9 billion, respectively, lifted total assets to $69 billion and PPNR to $358.1 million. We achieved net income of $264.0 million and earnings per share of $2.42 for the third quarter 2022, which drove return on tangible common equity1 to 24.9%. Tangible book value per share1 climbed 1.3% quarterly to $37.16, or 7.2% year-over-year. Asset quality remained stable and strong with a nonperforming assets to total assets ratio of 0.15% and net loan recoveries of $1.9 million for the quarter."

Acquisition of Digital Disbursements and AmeriHome Mortgage Company:

On January 25, 2022, the Company completed its acquisition of Digital Settlement Technologies LLC, doing business as Digital Disbursements, a digital payments platform for the class action legal industry. On April 7, 2021, the Company completed its acquisition of Aris Mortgage Holding Company, LLC, the parent company of AmeriHome Mortgage Company, LLC ("AmeriHome"). The Company's results include the financial results of Digital Disbursements and AmeriHome beginning on the acquisition dates noted.

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

 

 

FINANCIAL HIGHLIGHTS:

 

  • Net income of $264.0 million and earnings per share of $2.42, compared to $260.2 million and $2.39, respectively
  • Net income of $264.0 million and earnings per share of $2.42, up 11.4% and 6.1%, from $236.9 million and $2.28, respectively
  • Net revenue of $663.9 million, an increase of 7.1%, or $43.9 million, compared to an increase in non-interest expenses of 13.7%, or $36.9 million
  • Net revenue of $663.9 million, an increase of 21.0%, or $115.4 million, compared to an increase in non-interest expenses of 30.8%, or $72.0 million
  • Pre-provision net revenue1 of $358.1 million, up $7.0 million from $351.1 million
  • Pre-provision net revenue1 of $358.1 million, up $43.4 million from $314.7 million
  • Effective tax rate of 19.9%, compared to 19.6%
  • Effective tax rate of 19.9%, compared to 21.7%
 
  • FINANCIAL POSITION RESULTS:

 

  • HFI loans of $52.2 billion, up $3.6 billion, or 29.6% annualized
  • Increase in HFI loans of $15.6 billion or 44.8%, net of EBO loans with a $1.8 billion balance at September 30, 2022 transferred from HFS to HFI in the second quarter 2022
  • Total deposits of $55.6 billion, up $1.9 billion, or 13.9% annualized
  • Increase in total deposits of $10.3 billion, or 22.8%
  • Stockholders' equity of $5.0 billion, up $62 million
  • Increase in stockholders' equity of $507 million
 

LOANS AND ASSET QUALITY:

 

  • Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.15%, compared to 0.15%
  • Nonperforming assets to total assets of 0.15%, compared to 0.17%
  • Annualized net loan (recoveries) charge-offs to average loans outstanding of (0.02)%, compared to 0.01%
  • Annualized net loan (recoveries) charge-offs to average loans outstanding of (0.02)%, compared to 0.04%
 
  • KEY PERFORMANCE METRICS:

 

  • Net interest margin of 3.78%, compared to 3.54%
  • Net interest margin of 3.78%, compared to 3.43%
  • Return on average assets and on tangible common equity1 of 1.53% and 24.9%, compared to 1.62% and 25.6%, respectively
  • Return on average assets and on tangible common equity1 of 1.53% and 24.9%, compared to 1.83% and 26.6%, respectively
  • Tangible common equity ratio1 of 5.9%, compared to 6.1%
  • Tangible common equity ratio1 of 5.9%, compared to 6.9%
  • Tangible book value per share1, net of tax, of $37.16, an increase of 1.3% from $36.67
  • Tangible book value per share1, net of tax, of $37.16, an increase of 7.2% from $34.67
  • Efficiency ratio1 of 45.5%, compared to 42.8%
  • Efficiency ratio1 of 45.5%, compared to 42.0%

1 See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income was $602.1 million in the third quarter 2022, an increase of $77.1 million from $525.0 million in the second quarter 2022, and an increase of $191.7 million, or 46.7%, compared to the third quarter 2021. The increase in net interest income from the second quarter 2022 is due to HFI loan growth and a higher rate environment, which drove an increase in yields on interest earning assets and also pushed interest rates higher on deposits and short-term borrowings. HFI loan growth and higher yields on HFI loans, partially offset by higher interest rates on deposits and an increase in other borrowings, drove the increase in net interest income from the third quarter 2021.

The Company recorded a provision for credit losses of $28.5 million in the third quarter 2022, an increase of $1.0 million from $27.5 million in the second quarter 2022, and an increase of $16.2 million from $12.3 million in the third quarter 2021. The provision for credit losses during the third quarter 2022 is primarily due to loan growth and heightened economic uncertainty.

The Company’s net interest margin in the third quarter 2022 was 3.78%, an increase from 3.54% in the second quarter 2022, and an increase from 3.43% in the third quarter 2021. The higher rate environment drove an increase in net interest margin, with yields on interest earning assets more than offsetting the increase in rates on deposits and debt. The increase in net interest margin from the third quarter 2021 was driven by HFI loan growth, partially offset by higher debt and deposit balances coupled with higher rates.

Non-interest income was $61.8 million for the third quarter 2022, compared to $95.0 million for the second quarter 2022, and $138.1 million for the third quarter 2021. The $33.2 million decrease in non-interest income from the second quarter 2022 was primarily related to a decrease in mortgage banking related income as a result of lower production volume and overall gain on sale margin attributable to the rising rate environment. Loan servicing revenue decreased $22.4 million as losses on MSR hedges increased, which was partially offset by an increase to the value of MSRs. Net gain on loan origination and sale activities decreased $12.7 million as a result of valuation losses on HFS loans and locks, partially offset by a reduction in losses on loan sales. The $76.3 million decrease from the third quarter 2021 was driven by a decrease in net gain on loan origination and sale activities of $106.5 million from lower production volume, partially offset by a $20.8 million increase in loan servicing revenue.

Net revenue was $663.9 million for the third quarter 2022, an increase of $43.9 million, or 7.1%, compared to $620.0 million for the second quarter 2022, and an increase of $115.4 million, or 21.0%, compared to $548.5 million for the third quarter 2021.

Non-interest expense was $305.8 million for the third quarter 2022, compared to $268.9 million for the second quarter 2022, and $233.8 million for the third quarter 2021. The Company’s efficiency ratio1 was 45.5% for the third quarter 2022, compared to 42.8% in the second quarter 2022, and 42.0% for the third quarter 2021. Non-interest expense increased from the second quarter 2022 due primarily to increased deposit costs. The increase in non-interest expense from the third quarter 2021 is attributable to increased deposit costs, legal, professional, and director's fees, and data processing costs, partially offset by lower loan acquisition and origination expenses as well as lower acquisition and restructure expenses.

Income tax expense was $65.6 million for the third quarter 2022, compared to $63.4 million for the second quarter 2022, and $65.5 million for the third quarter 2021.

Net income was $264.0 million for the third quarter 2022, an increase of $3.8 million from $260.2 million for the second quarter 2022, and an increase of $27.1 million from $236.9 million for the third quarter 2021. Earnings per share was $2.42 for the third quarter 2022, compared to $2.39 for the second quarter 2022, and $2.28 for the third quarter 2021.

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 2022, the Company’s PPNR1 was $358.1 million, up $7.0 million from $351.1 million in the second quarter 2022, and up $43.4 million from $314.7 million in the third quarter 2021.

The Company had 3,368 full-time equivalent employees and 60 offices at September 30, 2022, compared to 3,254 employees and 60 offices at June 30, 2022, and 3,061 employees and 54 offices at September 30, 2021.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees totaled $52.2 billion at September 30, 2022, compared to $48.6 billion at June 30, 2022, and $34.8 billion at September 30, 2021. HFI loan growth of $3.6 billion from the prior quarter was driven by increases of $1.6 billion in commercial and industrial, $893 million in CRE non-owner occupied, $766 million in residential real estate, and $390 million in construction and land development loans. From September 30, 2021, HFI loan growth of $15.6 billion (which excludes a transfer of government guaranteed early buyout ("EBO") residential loans from HFS to HFI in the second quarter of 2022 with a balance of $1.8 billion at September 30, 2022), was primarily driven by residential real estate, commercial and industrial, and CRE non-owner occupied loans which increased $6.4 billion, $5.8 billion, and $2.8 billion, respectively.

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 September 30, 2022, the allowance for loan losses to funded HFI loans ratio was 0.58%, compared to 0.56% at June 30, 2022, and 0.71% at September 30, 2021. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.68% at September 30, 2022, compared to 0.68% at June 30, 2022, and 0.80% at September 30, 2021. The decrease in the allowance for credit loss ratios from the prior year is due to loan mix changes resulting from growth in low loss segments. The Company is a party to credit linked note transactions, which effectively transfers a portion of the risk of loan losses on reference pools of loans to the purchasers of the notes. As of September 30, 2022, June 30, 2022, and September 30, 2021, the Company is protected from credit losses on reference pools of loans totaling $10.8 billion, $11.1 billion, and $1.9 billion, 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 of $19 million as of September 30, 2022 and June 30, 2022 and $0.4 million as of September 30, 2021 related to these pools of loans. 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 0.86% at September 30, 2022 and 0.88% at June 30, 2022.

Deposits totaled $55.6 billion at September 30, 2022, an increase of $1.9 billion from $53.7 billion at June 30, 2022, and an increase of $10.3 billion from $45.3 billion at September 30, 2021. By deposit type, the increase from the prior quarter is attributable to an increase of $1.2 billion from non-interest bearing demand deposits, $533 million from certificates of deposits, and $176 million from savings and money market accounts. From September 30, 2021, deposits increased across all deposit types, with increases in non-interest bearing demand deposits of $3.9 billion, interest-bearing demand deposits of $3.4 billion, savings and money market accounts of $1.8 billion, and certificates of deposit of $1.3 billion. Non-interest bearing deposits were $24.9 billion at September 30, 2022, compared to $23.7 billion at June 30, 2022, and $21.1 billion at September 30, 2021.

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

 

 

Sep 30, 2022

 

Jun 30, 2022

 

Sep 30, 2021

Non-interest bearing

 

44.8

%

 

44.2

%

 

46.5

%

Savings and money market

 

34.6

 

 

35.4

 

 

38.5

 

Interest-bearing demand

 

15.0

 

 

15.6

 

 

11.0

 

Certificates of deposit

 

5.6

 

 

4.8

 

 

4.0

 

The Company’s ratio of HFI loans to deposits was 93.9% at September 30, 2022, compared to 90.4% at June 30, 2022, and 76.9% at September 30, 2021.

Borrowings were $6.3 billion at September 30, 2022, $5.2 billion at June 30, 2022, and $1.0 billion at September 30, 2021. The increase in borrowings from June 30, 2022 is due primarily to an increase in short-term borrowings of $1.1 billion. The increase in borrowings from September 30, 2021 is due to an increase in short-term borrowings of $4.6 billion and the issuance of $486 million of credit linked notes in the second quarter 2022 and $225 million in the fourth quarter 2021.

Qualifying debt totaled $889 million at September 30, 2022, compared to $891 million at June 30, 2022, and $1.1 billion at September 30, 2021. The decrease in qualifying debt from September 30, 2021 is primarily related to a $175 million subordinated debt redemption during the fourth quarter 2021.

Stockholders’ equity was $5.0 billion at September 30, 2022, compared to $5.0 billion at June 30, 2022, and $4.5 billion at September 30, 2021. Stockholders’ equity remained consistent quarter over quarter as net income and $50 million of sales of common stock under the Company's ATM program was offset by dividends to shareholders and unrealized fair value losses of approximately $220 million on the Company's available for sale securities, which are recorded in other comprehensive (loss) income, net of tax. A cash dividend of $0.36 per share was paid to common shareholders on August 26, 2022, totaling $39.0 million, and a cash dividend of $0.27 per depository share was paid to preferred shareholders on September 30, 2022, totaling $3.2 million. The increase in stockholders' equity from September 30, 2021 is primarily a function of net income and sales of common stock under the Company's ATM program, partially offset by dividends to shareholders and unrealized fair value losses on available for sale securities.

At September 30, 2022, tangible common equity, net of tax1, was 5.9% of tangible assets1 and total capital was 11.4% of risk-weighted assets. The Company’s tangible book value per share1 was $37.16 at September 30, 2022, an increase of 1.3% from $36.67, and up 7.2% from $34.67 at September 30, 2021. The increase in tangible book value per share from June 30, 2022 is attributable to net income and sales of common shares under the ATM program offset by fair value marks on the Company's available for sale securities, which are recorded in other comprehensive (loss) income, net of tax.

Total assets increased 4.7% to $69.2 billion at September 30, 2022, from $66.1 billion at June 30, 2022, and increased 31.1% from $52.8 billion at September 30, 2021. The increase in total assets from June 30, 2022 and September 30, 2021 was driven by continued organic loan and deposit growth.

1 See reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $28.5 million for the third quarter 2022, compared to $27.5 million for the second quarter 2022, and $12.3 million for the third quarter 2021. Net loan (recoveries) charge-offs in the third quarter 2022 were $(1.9) million, or (0.02)% of average loans (annualized), compared to $1.4 million, or 0.01%, in the second quarter 2022, and $3.0 million, or 0.04%, in the third quarter 2021.

Nonaccrual loans increased $5 million to $90 million during the quarter and increased $12 million from September 30, 2021. Loans past due 90 days and still accruing interest were zero (excluding government guaranteed loans of $644 million) at September 30, 2022, compared to zero at June 30, 2022 and September 30, 2021 (excluding government guaranteed loans of $827 million and zero at June 30, 2022 and September 30, 2021, respectively). Loans past due 30-89 days and still accruing interest totaled $56 million (excluding government guaranteed loans of $245 million) at September 30, 2022, a decrease from $117 million at June 30, 2022, and an increase from $24 million at September 30, 2021 (excluding government guaranteed loans of $202 million and zero at June 30, 2022 and September 30, 2021, respectively).

Repossessed assets totaled $11 million at September 30, 2022, a $1 million decrease from $12 million at June 30, 2022 and September 30, 2021. Classified assets totaled $385 million at September 30, 2022, a increase of $39 million from $346 million at June 30, 2022, and an increase of $120 million from $265 million at September 30, 2021.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 7.1% at September 30, 2022, compared to 6.7% at June 30, 2022, and 6.3% at September 30, 2021.

1 See reconciliation of Non-GAAP Financial Measures.

Segment Highlights

The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:

  • Commercial segment: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.
  • Consumer Related segment: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and beginning on January 25, 2022 includes the financial results of Digital Disbursements.
  • Corporate & Other segment: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.

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 $32.1 billion at September 30, 2022, an increase of $2.6 billion during the quarter, and an increase of $9.2 billion during the last twelve months. Deposits for the Commercial segment totaled $30.0 billion at September 30, 2022, an increase of $524 million during the quarter, and an increase of $1.6 billion during the last twelve months.

Pre-tax income for the Commercial segment was $298.2 million for the three months ended September 30, 2022, an increase of $58.3 million from the three months ended June 30, 2022, and an increase of $105.0 million from the three months ended September 30, 2021. For the nine months ended September 30, 2022, the Commercial segment reported total pre-tax income of $774.8 million, an increase of $151.7 million compared to the nine months ended September 30, 2021.

The Consumer Related segment reported an HFI loan balance of $20.1 billion at September 30, 2022, an increase of $1.0 billion during the quarter, and an increase of $8.2 billion during the last twelve months. The Consumer Related segment also has loans held for sale of $2.2 billion at September 30, 2022, a decrease of $599 million during the quarter, and a decrease of $4.3 billion during the last twelve months. Deposits for the Consumer Related segment totaled $21.0 billion, an increase of $1.3 billion during the quarter, and an increase of $5.2 billion during the last twelve months.

Pre-tax income for the Consumer Related segment was $93.2 million for the three months ended September 30, 2022, a decrease of $66.9 million from the three months ended June 30, 2022, and a decrease of $82.8 million from the three months ended September 30, 2021. Pre-tax income for the Consumer Related segment for the nine months ended September 30, 2022 totaled $380.3 million, an increase of $19.2 million compared to the nine months ended September 30, 2021.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2022 financial results at 12:00 p.m. ET on Friday, October 21, 2022. Participants may access the call by dialing 1-888-396-8049 and using the conference ID 11467649 or via live audio webcast using the website link https://events.q4inc.com/attendee/649968884. 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 21st through 11:00 p.m. ET November 21st by dialing 1-877-674-7070, using passcode 467649.

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, 2021 and the Company's subsequent Quarterly Reports on Form 10-Q, each 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; the impact on financial markets from geopolitical conflicts such as the war between Russia and Ukraine; 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 $65 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, business clients benefit from a full spectrum of tailored banking solutions and outstanding service delivered by industry experts who put customers first. Major accolades include #2 best-performing of the 50 largest public U.S. banks in the S&P Global Market Intelligence listing for 2021, and #1 Best Emerging Regional Bank for 2022 by Bank Director. 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,

 

2022

 

2021

 

Change %

 

(in millions)

 

 

Total assets

$

69,165

 

$

52,775

 

 

31.1

%

Loans held for sale

 

2,204

 

 

6,534

 

 

(66.3

)

HFI loans, net of deferred fees

 

52,201

 

 

34,802

 

 

50.0

 

Investment securities

 

8,603

 

 

7,696

 

 

11.8

 

Total deposits

 

55,589

 

 

45,283

 

 

22.8

 

Borrowings

 

6,319

 

 

1,003

 

 

NM

 

Qualifying debt

 

889

 

 

1,065

 

 

(16.5

)

Stockholders' equity

 

5,021

 

 

4,514

 

 

11.2

 

Tangible common equity, net of tax (1)

 

4,047

 

 

3,613

 

 

12.0

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2022

 

2021

 

Change %

 

2022

 

2021

 

Change %

 

 

(in millions, except per share data)

 

 

 

(in millions, except per share data)

 

 

Interest income

 

$

739.4

 

$

442.8

 

67.0

%

 

$

1,803.5

 

$

1,175.4

 

 

53.4

%

Interest expense

 

 

137.3

 

 

32.4

 

NM

 

 

 

226.9

 

 

77.2

 

 

NM

 

Net interest income

 

 

602.1

 

 

410.4

 

46.7

 

 

 

1,576.6

 

 

1,098.2

 

 

43.6

 

Provision for (recovery of) credit losses

 

 

28.5

 

 

12.3

 

NM

 

 

 

65.0

 

 

(34.6

)

 

NM

 

Net interest income after provision for credit losses

 

 

573.6

 

 

398.1

 

44.1

 

 

 

1,511.6

 

 

1,132.8

 

 

33.4

 

Non-interest income

 

 

61.8

 

 

138.1

 

(55.2

)

 

 

263.1

 

 

293.8

 

 

(10.4

)

Non-interest expense

 

 

305.8

 

 

233.8

 

30.8

 

 

 

823.3

 

 

613.6

 

 

34.2

 

Income before income taxes

 

 

329.6

 

 

302.4

 

9.0

 

 

 

951.4

 

 

813.0

 

 

17.0

 

Income tax expense

 

 

65.6

 

 

65.5

 

0.2

 

 

 

187.1

 

 

159.8

 

 

17.1

 

Net income

 

 

264.0

 

 

236.9

 

11.4

 

 

 

764.3

 

 

653.2

 

 

17.0

 

Dividends on preferred stock

 

 

3.2

 

 

 

NM

 

 

 

9.6

 

 

 

 

NM

 

Net income available to common stockholders

 

$

260.8

 

$

236.9

 

10.1

 

 

$

754.7

 

$

653.2

 

 

15.5

 

Diluted earnings per common share

 

$

2.42

 

$

2.28

 

6.1

 

 

$

7.03

 

$

6.35

 

 

10.7

 

(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,

 

 

2022

 

2021

 

Change %

 

2022

 

2021

 

Change %

Diluted earnings per common share

 

$

2.42

 

 

$

2.28

 

 

6.1

%

 

$

7.03

 

 

$

6.35

 

 

10.7

%

Book value per common share

 

 

43.39

 

 

 

40.49

 

 

7.2

 

 

 

 

 

 

 

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

 

 

37.16

 

 

 

34.67

 

 

7.2

 

 

 

 

 

 

 

Average common shares outstanding

(in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

107.5

 

 

 

103.3

 

 

4.1

 

 

 

107.0

 

 

 

102.3

 

 

4.6

 

Diluted

 

 

107.9

 

 

 

103.9

 

 

3.9

 

 

 

107.4

 

 

 

102.9

 

 

4.4

 

Common shares outstanding

 

 

108.9

 

 

 

104.2

 

 

4.5

 

 

 

 

 

 

 

 

Selected Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

 

1.53

%

 

 

1.83

%

 

(16.4

) %

 

 

1.60

%

 

 

1.89

%

 

(15.3

) %

Return on average tangible common equity (1, 2)

 

 

24.9

 

 

 

26.6

 

 

(6.4

)

 

 

24.8

 

 

 

26.3

 

 

(5.7

)

Net interest margin (2)

 

 

3.78

 

 

 

3.43

 

 

10.2

 

 

 

3.56

 

 

 

3.44

 

 

3.5

 

Efficiency ratio - tax equivalent basis (1)

 

 

45.5

 

 

 

42.0

 

 

8.3

 

 

 

44.2

 

 

 

43.3

 

 

2.1

 

Loan to deposit ratio

 

 

93.9

 

 

 

76.9

 

 

22.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge-offs to average loans outstanding (2)

 

 

(0.02

) %

 

 

0.04

%

 

NM

 

 

 

0.00

%

 

 

0.02

%

 

NM

 

Nonaccrual loans to funded HFI loans

 

 

0.17

 

 

 

0.22

 

 

(22.7

)

 

 

 

 

 

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.15

 

 

 

0.17

 

 

(11.8

)

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans

 

 

0.58

 

 

 

0.71

 

 

(18.3

)

 

 

 

 

 

 

Allowance for loan losses to nonaccrual HFI loans

 

 

338

 

 

 

316

 

 

7.0

 

 

 

 

 

 

 

Capital Ratios:

 

 

Sep 30, 2022

 

Jun 30, 2022

 

Sep 30, 2021

Tangible common equity (1)

 

5.9

%

 

6.1

%

 

6.9

%

Common Equity Tier 1 (3)

 

8.7

 

 

9.0

 

 

8.7

 

Tier 1 Leverage ratio (3)

 

7.5

 

 

7.6

 

 

7.9

 

Tier 1 Capital (3)

 

9.3

 

 

9.7

 

 

9.6

 

Total Capital (3)

 

11.4

 

 

11.9

 

 

12.6

 

(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, 2022 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,

 

 

2022

 

2021

 

2022

 

2021

 

 

(dollars in millions, except per share data)

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

Loans

 

$

657.0

 

 

$

398.0

 

 

$

1,608.3

 

 

$

1,050.2

 

Investment securities

 

 

75.9

 

 

 

43.5

 

 

 

183.2

 

 

 

121.0

 

Other

 

 

6.5

 

 

 

1.3

 

 

 

12.0

 

 

 

4.2

 

Total interest income

 

 

739.4

 

 

 

442.8

 

 

 

1,803.5

 

 

 

1,175.4

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

77.6

 

 

 

12.3

 

 

 

118.8

 

 

 

34.7

 

Qualifying debt

 

 

8.9

 

 

 

10.8

 

 

 

25.9

 

 

 

23.9

 

Borrowings

 

 

50.8

 

 

 

9.3

 

 

 

82.2

 

 

 

18.6

 

Total interest expense

 

 

137.3

 

 

 

32.4

 

 

 

226.9

 

 

 

77.2

 

Net interest income

 

 

602.1

 

 

 

410.4

 

 

 

1,576.6

 

 

 

1,098.2

 

Provision for (recovery of) credit losses

 

 

28.5

 

 

 

12.3

 

 

 

65.0

 

 

 

(34.6

)

Net interest income after provision for credit losses

 

 

573.6

 

 

 

398.1

 

 

 

1,511.6

 

 

 

1,132.8

 

Non-interest income:

 

 

 

 

 

 

 

 

Net loan servicing revenue (expense)

 

 

23.0

 

 

 

2.2

 

 

 

109.5

 

 

 

(18.6

)

Net gain on loan origination and sale activities

 

 

14.5

 

 

 

121.0

 

 

 

78.6

 

 

 

253.0

 

Service charges and fees

 

 

6.5

 

 

 

7.1

 

 

 

21.1

 

 

 

21.2

 

Commercial banking related income

 

 

5.1

 

 

 

4.6

 

 

 

16.0

 

 

 

12.5

 

Income from equity investments

 

 

4.3

 

 

 

2.5

 

 

 

13.6

 

 

 

16.9

 

Gain on recovery from credit guarantees

 

 

0.4

 

 

 

 

 

 

11.7

 

 

 

 

Gain on sales of investment securities

 

 

 

 

 

 

 

 

6.7

 

 

 

0.1

 

Fair value loss adjustments on assets measured at fair value, net

 

 

(2.8

)

 

 

(2.2

)

 

 

(19.4

)

 

 

(0.5

)

Other

 

 

10.8

 

 

 

2.9

 

 

 

25.3

 

 

 

9.2

 

Total non-interest income

 

 

61.8

 

 

 

138.1

 

 

 

263.1

 

 

 

293.8

 

Non-interest expenses:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

136.5

 

 

 

133.5

 

 

 

413.8

 

 

 

346.1

 

Deposit costs

 

 

56.2

 

 

 

7.3

 

 

 

83.6

 

 

 

20.7

 

Legal, professional, and directors' fees

 

 

24.8

 

 

 

13.7

 

 

 

73.9

 

 

 

37.8

 

Data processing

 

 

21.8

 

 

 

15.4

 

 

 

59.1

 

 

 

40.3

 

Loan servicing expenses

 

 

15.2

 

 

 

15.6

 

 

 

40.7

 

 

 

37.9

 

Occupancy

 

 

13.9

 

 

 

12.4

 

 

 

39.7

 

 

 

31.4

 

Insurance

 

 

8.1

 

 

 

6.2

 

 

 

22.2

 

 

 

15.9

 

Loan acquisition and origination expenses

 

 

5.8

 

 

 

9.7

 

 

 

18.7

 

 

 

20.2

 

Business development and marketing

 

 

5.0

 

 

 

2.8

 

 

 

14.8

 

 

 

7.4

 

Net gain on sales and valuations of repossessed and other assets

 

 

(0.2

)

 

 

(1.3

)

 

 

(0.4

)

 

 

(3.1

)

Acquisition and restructure expenses

 

 

 

 

 

2.4

 

 

 

0.4

 

 

 

18.5

 

Other

 

 

18.7

 

 

 

16.1

 

 

 

56.8

 

 

 

40.5

 

Total non-interest expense

 

 

305.8

 

 

 

233.8

 

 

 

823.3

 

 

 

613.6

 

Income before income taxes

 

 

329.6

 

 

 

302.4

 

 

 

951.4

 

 

 

813.0

 

Income tax expense

 

 

65.6

 

 

 

65.5

 

 

 

187.1

 

 

 

159.8

 

Net income

 

 

264.0

 

 

 

236.9

 

 

 

764.3

 

 

 

653.2

 

Dividends on preferred stock

 

 

3.2

 

 

 

 

 

 

9.6

 

 

 

 

Net income available to common stockholders

 

$

260.8

 

 

$

236.9

 

 

$

754.7

 

 

$

653.2

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted shares

 

 

107.9

 

 

 

103.9

 

 

 

107.4

 

 

 

102.9

 

Diluted earnings per share

 

$

2.42

 

 

$

2.28

 

 

$

7.03

 

 

$

6.35

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

 

 

Three Months Ended

 

 

Sep 30, 2022

Jun 30, 2022

Mar 31, 2022

Dec 31, 2021

Sep 30, 2021

 

 

(in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

657.0

 

 

$

516.6

 

 

$

434.7

 

 

$

438.6

 

 

$

398.0

 

Investment securities

 

 

75.9

 

 

 

59.3

 

 

 

48.0

 

 

 

43.7

 

 

 

43.5

 

Other

 

 

6.5

 

 

 

3.7

 

 

 

1.8

 

 

 

1.0

 

 

 

1.3

 

Total interest income

 

 

739.4

 

 

 

579.6

 

 

 

484.5

 

 

 

483.3

 

 

 

442.8

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

77.6

 

 

 

27.1

 

 

 

14.1

 

 

 

12.8

 

 

 

12.3

 

Qualifying debt

 

 

8.9

 

 

 

8.6

 

 

 

8.4

 

 

 

9.2

 

 

 

10.8

 

Borrowings

 

 

50.8

 

 

 

18.9

 

 

 

12.5

 

 

 

10.7

 

 

 

9.3

 

Total interest expense

 

 

137.3

 

 

 

54.6

 

 

 

35.0

 

 

 

32.7

 

 

 

32.4

 

Net interest income

 

 

602.1

 

 

 

525.0

 

 

 

449.5

 

 

 

450.6

 

 

 

410.4

 

Provision for credit losses

 

 

28.5

 

 

 

27.5

 

 

 

9.0

 

 

 

13.2

 

 

 

12.3

 

Net interest income after provision for credit losses

 

 

573.6

 

 

 

497.5

 

 

 

440.5

 

 

 

437.4

 

 

 

398.1

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Net loan servicing revenue

 

 

23.0

 

 

 

45.4

 

 

 

41.1

 

 

 

2.3

 

 

 

2.2

 

Net gain on loan origination and sale activities

 

 

14.5

 

 

 

27.2

 

 

 

36.9

 

 

 

73.2

 

 

 

121.0

 

Service charges and fees

 

 

6.5

 

 

 

7.6

 

 

 

7.0

 

 

 

7.1

 

 

 

7.1

 

Commercial banking related income

 

 

5.1

 

 

 

5.8

 

 

 

5.1

 

 

 

4.9

 

 

 

4.6

 

Income from equity investments

 

 

4.3

 

 

 

5.2

 

 

 

4.1

 

 

 

5.2

 

 

 

2.5

 

Gain on recovery from credit guarantees

 

 

0.4

 

 

 

9.0

 

 

 

2.3

 

 

 

7.2

 

 

 

 

Gain (loss) on sales of investment securities

 

 

 

 

 

(0.2

)

 

 

6.9

 

 

 

8.3

 

 

 

 

Fair value loss adjustments on assets measured at fair value, net

 

 

(2.8

)

 

 

(10.0

)

 

 

(6.6

)

 

 

(0.8

)

 

 

(2.2

)

Other

 

 

10.8

 

 

 

5.0

 

 

 

9.5

 

 

 

3.0

 

 

 

2.9

 

Total non-interest income

 

 

61.8

 

 

 

95.0

 

 

 

106.3

 

 

 

110.4

 

 

 

138.1

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

136.5

 

 

 

139.0

 

 

 

138.3

 

 

 

120.6

 

 

 

133.5

 

Deposit costs

 

 

56.2

 

 

 

18.1

 

 

 

9.3

 

 

 

9.1

 

 

 

7.3

 

Legal, professional, and directors' fees

 

 

24.8

 

 

 

25.1

 

 

 

24.0

 

 

 

20.8

 

 

 

13.7

 

Data processing

 

 

21.8

 

 

 

19.7

 

 

 

17.6

 

 

 

17.9

 

 

 

15.4

 

Loan servicing expenses

 

 

15.2

 

 

 

14.7

 

 

 

10.8

 

 

 

15.6

 

 

 

15.6

 

Occupancy

 

 

13.9

 

 

 

13.0

 

 

 

12.8

 

 

 

12.4

 

 

 

12.4

 

Insurance

 

 

8.1

 

 

 

6.9

 

 

 

7.2

 

 

 

7.1

 

 

 

6.2

 

Loan acquisition and origination expenses

 

 

5.8

 

 

 

6.4

 

 

 

6.5

 

 

 

8.6

 

 

 

9.7

 

Business development and marketing

 

 

5.0

 

 

 

5.4

 

 

 

4.4

 

 

 

6.1

 

 

 

2.8

 

Net (gain) loss on sales and valuations of repossessed and other assets

 

 

(0.2

)

 

 

(0.3

)

 

 

0.1

 

 

 

(0.4

)

 

 

(1.3

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

5.9

 

 

 

 

Acquisition and restructure expenses (recoveries)

 

 

 

 

 

 

 

 

0.4

 

 

 

(3.2

)

 

 

2.4

 

Other

 

 

18.7

 

 

 

20.9

 

 

 

17.2

 

 

 

17.3

 

 

 

16.1

 

Total non-interest expense

 

 

305.8

 

 

 

268.9

 

 

 

248.6

 

 

 

237.8

 

 

 

233.8

 

Income before income taxes

 

 

329.6

 

 

 

323.6

 

 

 

298.2

 

 

 

310.0

 

 

 

302.4

 

Income tax expense

 

 

65.6

 

 

 

63.4

 

 

 

58.1

 

 

 

64.0

 

 

 

65.5

 

Net income

 

 

264.0

 

 

 

260.2

 

 

 

240.1

 

 

 

246.0

 

 

 

236.9

 

Dividends on preferred stock

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

 

 

3.5

 

 

 

 

Net income available to common stockholders

 

$

260.8

 

 

$

257.0

 

 

$

236.9

 

 

$

242.5

 

 

$

236.9

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Diluted shares

 

 

107.9

 

 

 

107.7

 

 

 

106.6

 

 

 

104.5

 

 

 

103.9

 

Diluted earnings per share

 

$

2.42

 

 

$

2.39

 

 

$

2.22

 

 

$

2.32

 

 

$

2.28

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

 

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

 

(in millions)

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,610

 

 

$

1,886

 

 

$

2,602

 

 

$

516

 

 

$

918

 

Investment securities

 

 

8,603

 

 

 

8,802

 

 

 

8,277

 

 

 

7,541

 

 

 

7,696

 

Loans held for sale

 

 

2,204

 

 

 

2,803

 

 

 

4,762

 

 

 

5,635

 

 

 

6,534

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

22,318

 

 

 

20,754

 

 

 

17,862

 

 

 

18,297

 

 

 

16,525

 

Commercial real estate - non-owner occupied

 

 

8,668

 

 

 

7,775

 

 

 

6,849

 

 

 

6,526

 

 

 

5,844

 

Commercial real estate - owner occupied

 

 

1,848

 

 

 

1,848

 

 

 

1,805

 

 

 

1,898

 

 

 

1,996

 

Construction and land development

 

 

3,621

 

 

 

3,231

 

 

 

3,278

 

 

 

3,023

 

 

 

2,943

 

Residential real estate

 

 

15,674

 

 

 

14,908

 

 

 

11,270

 

 

 

9,282

 

 

 

7,453

 

Consumer

 

 

72

 

 

 

56

 

 

 

55

 

 

 

49

 

 

 

41

 

Loans, net of deferred fees

 

 

52,201

 

 

 

48,572

 

 

 

41,119

 

 

 

39,075

 

 

 

34,802

 

Allowance for loan losses

 

 

(304

)

 

 

(273

)

 

 

(258

)

 

 

(252

)

 

 

(247

)

Loans, net of deferred fees and allowance

 

 

51,897

 

 

 

48,299

 

 

 

40,861

 

 

 

38,823

 

 

 

34,555

 

Mortgage servicing rights

 

 

1,044

 

 

 

826

 

 

 

950

 

 

 

698

 

 

 

605

 

Premises and equipment, net

 

 

237

 

 

 

210

 

 

 

196

 

 

 

182

 

 

 

161

 

Operating lease right-of-use asset

 

 

131

 

 

 

136

 

 

 

142

 

 

 

133

 

 

 

106

 

Other assets acquired through foreclosure, net

 

 

11

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

12

 

Bank owned life insurance

 

 

181

 

 

 

180

 

 

 

179

 

 

 

180

 

 

 

179

 

Goodwill and other intangibles, net

 

 

682

 

 

 

695

 

 

 

698

 

 

 

635

 

 

 

608

 

Other assets

 

 

2,565

 

 

 

2,206

 

 

 

1,897

 

 

 

1,628

 

 

 

1,401

 

Total assets

 

$

69,165

 

 

$

66,055

 

 

$

60,576

 

 

$

55,983

 

 

$

52,775

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

24,926

 

 

$

23,721

 

 

$

23,520

 

 

$

21,353

 

 

$

21,058

 

Interest bearing:

 

 

 

 

 

 

 

 

 

 

Demand

 

 

8,350

 

 

 

8,387

 

 

 

8,268

 

 

 

6,924

 

 

 

4,955

 

Savings and money market

 

 

19,202

 

 

 

19,026

 

 

 

18,553

 

 

 

17,279

 

 

 

17,440

 

Certificates of deposit

 

 

3,111

 

 

 

2,578

 

 

 

1,818

 

 

 

2,056

 

 

 

1,830

 

Total deposits

 

 

55,589

 

 

 

53,712

 

 

 

52,159

 

 

 

47,612

 

 

 

45,283

 

Borrowings

 

 

6,319

 

 

 

5,210

 

 

 

833

 

 

 

1,502

 

 

 

1,003

 

Qualifying debt

 

 

889

 

 

 

891

 

 

 

893

 

 

 

896

 

 

 

1,065

 

Operating lease liability

 

 

149

 

 

 

151

 

 

 

155

 

 

 

143

 

 

 

115

 

Accrued interest payable and other liabilities

 

 

1,198

 

 

 

1,132

 

 

 

1,524

 

 

 

867

 

 

 

795

 

Total liabilities

 

 

64,144

 

 

 

61,096

 

 

 

55,564

 

 

 

51,020

 

 

 

48,261

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

Common stock and additional paid-in capital

 

 

2,049

 

 

 

1,990

 

 

 

1,979

 

 

 

1,879

 

 

 

1,610

 

Retained earnings

 

 

3,413

 

 

 

3,192

 

 

 

2,973

 

 

 

2,773

 

 

 

2,567

 

Accumulated other comprehensive (loss) income

 

 

(736

)

 

 

(518

)

 

 

(235

)

 

 

16

 

 

 

42

 

Total stockholders' equity

 

 

5,021

 

 

 

4,959

 

 

 

5,012

 

 

 

4,963

 

 

 

4,514

 

Total liabilities and stockholders' equity

 

$

69,165

 

 

$

66,055

 

 

$

60,576

 

 

$

55,983

 

 

$

52,775

 

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

 

 

Three Months Ended

 

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

 

(in millions)

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

 

$

232.9

 

Provision for credit losses (1)

 

 

29.0

 

 

 

17.0

 

 

 

5.3

 

 

 

7.0

 

 

 

17.0

 

Recoveries of loans previously charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

3.8

 

 

 

0.8

 

 

 

2.4

 

 

 

1.8

 

 

 

0.1

 

Commercial real estate - non-owner occupied

 

 

0.1

 

 

 

 

 

 

 

 

 

0.3

 

 

 

 

Commercial real estate - owner occupied

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

Construction and land development

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

0.1

 

Residential real estate

 

 

 

 

 

0.1

 

 

 

 

 

 

0.4

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total recoveries

 

 

4.0

 

 

 

1.0

 

 

 

2.4

 

 

 

2.5

 

 

 

0.3

 

Loans charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

2.1

 

 

 

2.4

 

 

 

2.6

 

 

 

3.8

 

 

 

3.3

 

Commercial real estate - non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans charged-off

 

 

2.1

 

 

 

2.4

 

 

 

2.6

 

 

 

3.9

 

 

 

3.3

 

Net loan (recoveries) charge-offs

 

 

(1.9

)

 

 

1.4

 

 

 

0.2

 

 

 

1.4

 

 

 

3.0

 

Balance, end of period

 

$

304.1

 

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for unfunded loan commitments

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

53.8

 

 

$

43.3

 

 

$

37.6

 

 

$

32.1

 

 

$

31.3

 

(Recovery of) provision for credit losses (1)

 

 

(1.7

)

 

 

10.5

 

 

 

5.7

 

 

 

5.5

 

 

 

0.8

 

Balance, end of period (2)

 

$

52.1

 

 

$

53.8

 

 

$

43.3

 

 

$

37.6

 

 

$

32.1

 

 

 

 

 

 

 

 

 

 

 

 

Components of the allowance for credit losses on loans

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

304.1

 

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

Allowance for unfunded loan commitments

 

 

52.1

 

 

 

53.8

 

 

 

43.3

 

 

 

37.6

 

 

 

32.1

 

Total allowance for credit losses on loans

 

$

356.2

 

 

$

327.0

 

 

$

300.9

 

 

$

290.1

 

 

$

279.0

 

 

 

 

 

 

 

 

 

 

 

 

Net (recoveries) charge-offs to average loans - annualized

 

 

(0.02

) %

 

 

0.01

%

 

 

0.00

%

 

 

0.02

%

 

 

0.04

%

 

 

 

 

 

 

 

 

 

 

 

Allowance ratios

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans (3)

 

 

0.58

%

 

 

0.56

%

 

 

0.63

%

 

 

0.65

%

 

 

0.71

%

Allowance for credit losses to funded HFI loans (3)

 

 

0.68

 

 

 

0.68

 

 

 

0.73

 

 

 

0.74

 

 

 

0.80

 

Allowance for loan losses to nonaccrual HFI loans

 

 

338

 

 

 

321

 

 

 

283

 

 

 

346

 

 

 

317

 

Allowance for credit losses to nonaccrual HFI loans

 

 

396

 

 

 

385

 

 

 

331

 

 

 

397

 

 

 

358

 

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $1.2 million provision for credit losses on investment securities for the three months ended September 30, 2022. The allowance for credit losses on investment securities totaled $4.4 million as of September 30, 2022.

(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 $19 million as of September 30, 2022 related to a $10.8 billion pool of loans covered under four separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

 

 

Three Months Ended

 

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

 

(in millions)

Nonaccrual loans and repossessed assets

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

90

 

 

$

85

 

 

$

91

 

 

$

73

 

 

$

78

 

Nonaccrual loans to funded HFI loans

 

 

0.17

%

 

 

0.17

%

 

 

0.22

%

 

 

0.19

%

 

 

0.22

%

Repossessed assets

 

$

11

 

 

$

12

 

 

$

12

 

 

$

12

 

 

$

12

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.15

%

 

 

0.15

%

 

 

0.17

%

 

 

0.15

%

 

 

0.17

%

 

 

 

 

 

 

 

 

 

 

 

Loans Past Due

 

 

 

 

 

 

 

 

 

 

Loans past due 90 days, still accruing (1)

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

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

 

 

%

 

 

%

 

 

%

 

 

%

 

 

%

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

 

$

56

 

 

$

117

 

 

$

58

 

 

$

53

 

 

$

24

 

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

 

 

0.11

%

 

 

0.24

%

 

 

0.14

%

 

 

0.13

%

 

 

0.07

%

 

 

 

 

 

 

 

 

 

 

 

Other credit quality metrics

 

 

 

 

 

 

 

 

 

 

Special mention loans

 

$

312

 

 

$

317

 

 

$

350

 

 

$

331

 

 

$

364

 

Special mention loans to funded HFI loans

 

 

0.60

%

 

 

0.65

%

 

 

0.85

%

 

 

0.85

%

 

 

1.05

%

 

 

 

 

 

 

 

 

 

 

 

Classified loans on accrual

 

$

268

 

 

$

232

 

 

$

253

 

 

$

216

 

 

$

175

 

Classified loans on accrual to funded HFI loans

 

 

0.51

%

 

 

0.48

%

 

 

0.61

%

 

 

0.55

%

 

 

0.50

%

Classified assets

 

$

385

 

 

$

346

 

 

$

365

 

 

$

301

 

 

$

265

 

Classified assets to total assets

 

 

0.56

%

 

 

0.52

%

 

 

0.60

%

 

 

0.54

%

 

 

0.50

%

(1)

Excludes government guaranteed residential mortgage loans of $644 million and $827 million as of September 30, 2022 and June 30, 2022, respectively.

(2)

Excludes government guaranteed residential mortgage loans of $245 million and $202 million as of September 30, 2022 and June 30, 2022, respectively.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

 

 

Three Months Ended

 

 

September 30, 2022

 

June 30, 2022

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

 

 

 

($ in millions)

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

3,993

 

 

$

49.0

 

4.87

%

 

$

4,333

 

 

$

43.1

 

3.99

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

21,551

 

 

 

282.1

 

5.25

 

 

 

19,576

 

 

 

205.6

 

4.27

 

CRE - non-owner occupied

 

 

8,128

 

 

 

111.4

 

5.44

 

 

 

7,152

 

 

 

83.1

 

4.67

 

CRE - owner occupied

 

 

1,839

 

 

 

23.3

 

5.12

 

 

 

1,836

 

 

 

22.7

 

5.05

 

Construction and land development

 

 

3,471

 

 

 

59.5

 

6.80

 

 

 

3,336

 

 

 

47.7

 

5.73

 

Residential real estate

 

 

15,125

 

 

 

130.9

 

3.43

 

 

 

13,698

 

 

 

113.8

 

3.33

 

Consumer

 

 

63

 

 

 

0.8

 

5.32

 

 

 

58

 

 

 

0.6

 

4.29

 

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

 

 

50,177

 

 

 

608.0

 

4.84

 

 

 

45,656

 

 

 

473.5

 

4.19

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,680

 

 

 

56.4

 

3.35

 

 

 

6,674

 

 

 

41.3

 

2.48

 

Securities - tax-exempt

 

 

2,047

 

 

 

19.5

 

4.73

 

 

 

2,017

 

 

 

18.0

 

4.53

 

Total securities (1)

 

 

8,727

 

 

 

75.9

 

3.66

 

 

 

8,691

 

 

 

59.3

 

2.94

 

Cash and other

 

 

1,239

 

 

 

6.5

 

2.07

 

 

 

1,650

 

 

 

3.7

 

0.91

 

Total interest earning assets

 

 

64,136

 

 

 

739.4

 

4.62

 

 

 

60,330

 

 

 

579.6

 

3.91

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

242

 

 

 

 

 

 

 

262

 

 

 

 

 

Allowance for credit losses

 

 

(282

)

 

 

 

 

 

 

(266

)

 

 

 

 

Bank owned life insurance

 

 

180

 

 

 

 

 

 

 

179

 

 

 

 

 

Other assets

 

 

4,100

 

 

 

 

 

 

 

3,766

 

 

 

 

 

Total assets

 

$

68,376

 

 

 

 

 

 

$

64,271

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,466

 

 

$

24.5

 

1.15

%

 

$

8,346

 

 

$

8.0

 

0.38

%

Savings and money market

 

 

18,515

 

 

 

44.5

 

0.95

 

 

 

18,771

 

 

 

16.5

 

0.35

 

Certificates of deposit

 

 

2,843

 

 

 

8.6

 

1.19

 

 

 

2,040

 

 

 

2.6

 

0.52

 

Total interest-bearing deposits

 

 

29,824

 

 

 

77.6

 

1.03

 

 

 

29,157

 

 

 

27.1

 

0.37

 

Short-term borrowings

 

 

4,136

 

 

 

27.0

 

2.59

 

 

 

2,917

 

 

 

8.6

 

1.19

 

Long-term debt

 

 

1,228

 

 

 

23.8

 

7.69

 

 

 

786

 

 

 

10.3

 

5.24

 

Qualifying debt

 

 

891

 

 

 

8.9

 

3.94

 

 

 

894

 

 

 

8.6

 

3.85

 

Total interest-bearing liabilities

 

 

36,079

 

 

 

137.3

 

1.51

 

 

 

33,754

 

 

 

54.6

 

0.65

 

Interest cost of funding earning assets

 

 

 

0.84

 

 

 

 

 

 

0.37

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

25,865

 

 

 

 

 

 

 

24,327

 

 

 

 

 

Other liabilities

 

 

1,282

 

 

 

 

 

 

 

1,169

 

 

 

 

 

Stockholders’ equity

 

 

5,150

 

 

 

 

 

 

 

5,021

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

68,376

 

 

 

 

 

 

$

64,271

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

602.1

 

3.78

%

 

 

 

$

525.0

 

3.54

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.5 million and $8.2 million for the three months ended September 30, 2022 and June 30, 2022, respectively.

(2)

Included in the yield computation are net loan fees of $31.9 million and $36.4 million for the three months ended September 30, 2022 and June 30, 2022, 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, 2022

 

September 30, 2021

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

 

 

 

($ in millions)

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

3,993

 

 

$

49.0

 

4.87

%

 

$

7,254

 

 

$

61.3

 

3.35

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

21,551

 

 

 

282.1

 

5.25

 

 

 

14,943

 

 

 

156.1

 

4.23

 

CRE - non-owner-occupied

 

 

8,128

 

 

 

111.4

 

5.44

 

 

 

5,754

 

 

 

68.5

 

4.73

 

CRE - owner-occupied

 

 

1,839

 

 

 

23.3

 

5.12

 

 

 

2,030

 

 

 

25.1

 

5.00

 

Construction and land development

 

 

3,471

 

 

 

59.5

 

6.80

 

 

 

2,863

 

 

 

40.6

 

5.63

 

Residential real estate

 

 

15,125

 

 

 

130.9

 

3.43

 

 

 

5,907

 

 

 

46.0

 

3.09

 

Consumer

 

 

63

 

 

 

0.8

 

5.32

 

 

 

44

 

 

 

0.4

 

4.18

 

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

 

 

50,177

 

 

 

608.0

 

4.84

 

 

 

31,541

 

 

 

336.7

 

4.28

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,680

 

 

 

56.4

 

3.35

 

 

 

5,521

 

 

 

25.6

 

1.84

 

Securities - tax-exempt

 

 

2,047

 

 

 

19.5

 

4.73

 

 

 

2,223

 

 

 

17.9

 

4.00

 

Total securities (1)

 

 

8,727

 

 

 

75.9

 

3.66

 

 

 

7,744

 

 

 

43.5

 

2.46

 

Other

 

 

1,239

 

 

 

6.5

 

2.07

 

 

 

1,883

 

 

 

1.3

 

0.27

 

Total interest earning assets

 

 

64,136

 

 

 

739.4

 

4.62

 

 

 

48,422

 

 

 

442.8

 

3.70

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

242

 

 

 

 

 

 

 

291

 

 

 

 

 

Allowance for credit losses

 

 

(282

)

 

 

 

 

 

 

(242

)

 

 

 

 

Bank owned life insurance

 

 

180

 

 

 

 

 

 

 

179

 

 

 

 

 

Other assets

 

 

4,100

 

 

 

 

 

 

 

2,684

 

 

 

 

 

Total assets

 

$

68,376

 

 

 

 

 

 

$

51,334

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,466

 

 

$

24.5

 

1.15

%

 

$

4,787

 

 

$

1.4

 

0.12

%

Savings and money market accounts

 

 

18,515

 

 

 

44.5

 

0.95

 

 

 

16,833

 

 

 

8.9

 

0.21

 

Certificates of deposit

 

 

2,843

 

 

 

8.6

 

1.19

 

 

 

1,902

 

 

 

2.0

 

0.41

 

Total interest-bearing deposits

 

 

29,824

 

 

 

77.6

 

1.03

 

 

 

23,522

 

 

 

12.3

 

0.21

 

Short-term borrowings

 

 

4,136

 

 

 

27.0

 

2.59

 

 

 

418

 

 

 

1.1

 

1.07

 

Long-term debt

 

 

1,228

 

 

 

23.8

 

7.69

 

 

 

558

 

 

 

8.2

 

5.79

 

Qualifying debt

 

 

891

 

 

 

8.9

 

3.94

 

 

 

1,076

 

 

 

10.8

 

3.98

 

Total interest-bearing liabilities

 

 

36,079

 

 

 

137.3

 

1.51

 

 

 

25,574

 

 

 

32.4

 

0.50

 

Interest cost of funding earning assets

 

 

 

0.84

 

 

 

 

 

 

0.27

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

25,865

 

 

 

 

 

 

 

20,732

 

 

 

 

 

Other liabilities

 

 

1,282

 

 

 

 

 

 

 

855

 

 

 

 

 

Stockholders’ equity

 

 

5,150

 

 

 

 

 

 

 

4,173

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

68,376

 

 

 

 

 

 

$

51,334

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

602.1

 

3.78

%

 

 

 

$

410.4

 

3.43

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.5 million and $8.5 million for the three months ended September 30, 2022 and 2021, respectively.

(2)

Included in the yield computation are net loan fees of $31.9 million and $30.4 million for the three months ended September 30, 2022 and 2021, 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, 2022

 

September 30, 2021

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

 

 

 

($ in millions)

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

4,939

 

 

$

142.5

 

3.86

%

 

$

4,235

 

 

$

104.1

 

3.29

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

19,553

 

 

 

653.5

 

4.53

 

 

 

14,268

 

 

 

455.3

 

4.36

 

CRE - non-owner occupied

 

 

7,328

 

 

 

267.6

 

4.89

 

 

 

5,701

 

 

 

201.3

 

4.73

 

CRE - owner occupied

 

 

1,844

 

 

 

68.8

 

5.08

 

 

 

2,050

 

 

 

73.5

 

4.91

 

Construction and land development

 

 

3,301

 

 

 

148.9

 

6.03

 

 

 

2,714

 

 

 

116.1

 

5.72

 

Residential real estate

 

 

13,087

 

 

 

325.0

 

3.32

 

 

 

4,067

 

 

 

98.6

 

3.24

 

Consumer

 

 

58

 

 

 

2.0

 

4.57

 

 

 

37

 

 

 

1.3

 

4.65

 

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

 

 

45,171

 

 

 

1,465.8

 

4.37

 

 

 

28,837

 

 

 

946.1

 

4.44

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,300

 

 

 

127.5

 

2.71

 

 

 

5,231

 

 

 

70.2

 

1.79

 

Securities - tax-exempt

 

 

2,067

 

 

 

55.7

 

4.51

 

 

 

2,124

 

 

 

50.8

 

4.02

 

Total securities (1)

 

 

8,367

 

 

 

183.2

 

3.14

 

 

 

7,355

 

 

 

121.0

 

2.44

 

Other

 

 

1,646

 

 

 

12.0

 

0.97

 

 

 

3,205

 

 

 

4.2

 

0.17

 

Total interest earning assets

 

 

60,123

 

 

 

1,803.5

 

4.06

 

 

 

43,632

 

 

 

1,175.4

 

3.68

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

250

 

 

 

 

 

 

 

306

 

 

 

 

 

Allowance for credit losses

 

 

(270

)

 

 

 

 

 

 

(263

)

 

 

 

 

Bank owned life insurance

 

 

180

 

 

 

 

 

 

 

178

 

 

 

 

 

Other assets

 

 

3,724

 

 

 

 

 

 

 

2,392

 

 

 

 

 

Total assets

 

$

64,007

 

 

 

 

 

 

$

46,245

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,188

 

 

$

35.2

 

0.57

%

 

$

4,357

 

 

$

4.2

 

0.13

%

Savings and money market accounts

 

 

18,474

 

 

 

70.6

 

0.51

 

 

 

15,342

 

 

 

24.0

 

0.21

 

Certificates of deposit

 

 

2,271

 

 

 

13.0

 

0.76

 

 

 

1,774

 

 

 

6.5

 

0.49

 

Total interest-bearing deposits

 

 

28,933

 

 

 

118.8

 

0.55

 

 

 

21,473

 

 

 

34.7

 

0.22

 

Short-term borrowings

 

 

2,745

 

 

 

37.4

 

1.82

 

 

 

664

 

 

 

5.8

 

1.16

 

Long-term debt

 

 

930

 

 

 

44.8

 

6.45

 

 

 

309

 

 

 

12.8

 

5.55

 

Qualifying debt

 

 

893

 

 

 

25.9

 

3.87

 

 

 

777

 

 

 

23.9

 

4.12

 

Total interest-bearing liabilities

 

 

33,501

 

 

 

226.9

 

0.91

 

 

 

23,223

 

 

 

77.2

 

0.44

 

Interest cost of funding earning assets

 

 

 

0.50

 

 

 

 

 

 

0.24

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

24,269

 

 

 

 

 

 

 

18,380

 

 

 

 

 

Other liabilities

 

 

1,183

 

 

 

 

 

 

 

812

 

 

 

 

 

Stockholders’ equity

 

 

5,054

 

 

 

 

 

 

 

3,830

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

64,007

 

 

 

 

 

 

$

46,245

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

1,576.6

 

3.56

%

 

 

 

$

1,098.2

 

3.44

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $24.7 million and $24.9 million for the nine months ended September 30, 2022 and 2021, respectively.

(2)

Included in the yield computation are net loan fees of $97.4 million and $95.9 million for the nine months ended September 30, 2022 and 2021, 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 September 30, 2022:

 

(dollars in millions)

Assets:

 

 

 

 

 

 

 

 

Cash, cash equivalents, and investment securities

 

$

10,213

 

 

$

12

 

 

$

 

 

$

10,201

 

Loans held for sale

 

 

2,204

 

 

 

 

 

 

2,204

 

 

 

 

Loans, net of deferred fees and costs

 

 

52,201

 

 

 

32,060

 

 

 

20,141

 

 

 

 

Less: allowance for credit losses

 

 

(304

)

 

 

(266

)

 

 

(38

)

 

 

 

Total loans

 

 

51,897

 

 

 

31,794

 

 

 

20,103

 

 

 

 

Other assets acquired through foreclosure, net

 

 

11

 

 

 

11

 

 

 

 

 

 

 

Goodwill and other intangible assets, net

 

 

682

 

 

 

294

 

 

 

388

 

 

 

 

Other assets

 

 

4,158

 

 

 

370

 

 

 

1,890

 

 

 

1,898

 

Total assets

 

$

69,165

 

 

$

32,481

 

 

$

24,585

 

 

$

12,099

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits

 

$

55,589

 

 

$

30,006

 

 

$

20,957

 

 

$

4,626

 

Borrowings and qualifying debt

 

 

7,208

 

 

 

26

 

 

 

375

 

 

 

6,807

 

Other liabilities

 

 

1,347

 

 

 

105

 

 

 

447

 

 

 

795

 

Total liabilities

 

 

64,144

 

 

 

30,137

 

 

 

21,779

 

 

 

12,228

 

Allocated equity:

 

 

5,021

 

 

 

2,802

 

 

 

1,711

 

 

 

508

 

Total liabilities and stockholders' equity

 

$

69,165

 

 

$

32,939

 

 

$

23,490

 

 

$

12,736

 

Excess funds provided (used)

 

 

 

 

 

458

 

 

 

(1,095

)

 

 

637

 

 

 

 

 

 

 

 

 

 

No. of offices

 

 

60

 

 

 

50

 

 

 

8

 

 

 

2

 

No. of full-time equivalent employees

 

 

3,368

 

 

 

659

 

 

 

1,077

 

 

 

1,632

 

 

 

 

Income Statement:

 

 

 

 

 

Three Months Ended September 30, 2022:

 

(in millions)

Net interest income

 

$

602.1

 

 

$

413.0

 

 

$

235.0

 

 

$

(45.9

)

Provision for (recovery of) credit losses

 

 

28.5

 

 

 

19.9

 

 

 

7.6

 

 

 

1.0

 

Net interest income (expense) after provision for credit losses

 

 

573.6

 

 

 

393.1