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Western Alliance Bancorporation Reports Fourth Quarter and Full Year 2022 Financial Results

Western Alliance Bancorporation (NYSE:WAL):

FOURTH QUARTER AND FULL YEAR 2022 FINANCIAL RESULTS

Fourth Quarter Highlights:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

Earnings per share

 

PPNR1

 

Net interest margin

 

Efficiency ratio1

 

Book value per

common share

$293.0 million

 

$2.67

 

$367.8 million

 

3.98%

 

46.9%

 

$46.47

 

 

 

 

 

$40.251, excluding

goodwill and intangibles

CEO COMMENTARY:

“Western Alliance’s diversified, national commercial business strategy drove the strong momentum that was sustained throughout the year, closing out the fourth quarter with record revenues, earnings and tangible book value as we thoughtfully deployed liquidity into sound organic growth,” said Kenneth A. Vecchione, President and Chief Executive Officer. “We achieved a record $293.0 million in net income and earnings per share of $2.67 for the quarter, an increase of 15.1% from the prior year, while tangible book value per share rose 6.4% year-over-year to $40.25. Quarterly deposits declined $1.9 billion, primarily driven by short-term seasonal tax and insurance escrow deposit outflows in our Mortgage Warehouse Group. These seasonal factors have already reversed since year end, with quarter-to-date 2023 average total deposit balances up more than $2.4 billion from year end.”

 

“Western Alliance’s full year results are a direct reflection of our collaborative culture and flexible business model that strongly position us to sustain our earnings trajectory into 2023, all while continuing our focus on asset quality. Net charge-offs for the year totaled a modest $1.5 million, with a non-performing assets to total assets ratio of 0.14% at the end of the year. Our growing net interest income during the year drove an increase in earnings as PPNR climbed 25.7% over the prior year to $1.4 billion, with net income of $1.1 billion and earnings per share up 11.9% to $9.70.”

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

FULL YEAR

 

 

FINANCIAL HIGHLIGHTS:

  • Net income of $293.0 million and earnings per share of $2.67, compared to $264.0 million and $2.42, respectively
  • Net income of $1.1 billion and earnings per share of $9.70, up 17.6% and 11.9%, from $899.2 million and $8.67, respectively
  • Net revenue of $701.2 million, an increase of 5.6%, or $37.3 million, compared to an increase in non-interest expenses of 9.0%, or $27.6 million
  • Net revenue of $2.5 billion, an increase of 30.1%, or $587.9 million, compared to an increase in non-interest expenses of 35.9%, or $305.3 million
  • Pre-provision net revenue1 of $367.8 million, up $9.7 million from $358.1 million
  • Pre-provision net revenue1 of $1.4 billion, up $282.6 million from $1.1 billion
  • Effective tax rate of 19.7%, compared to 19.9%
  • Effective tax rate of 19.7%, compared to 19.9%

 

 

FINANCIAL POSITION RESULTS:

  • HFI loans of $51.9 billion, down $339 million, or 0.6%
  • Increase in HFI loans of $10.9 billion, or 27.9%, net of EBO loans with a $1.9 billion balance at December 31, 2022 transferred from HFS to HFI during 2022
  • Total deposits of $53.6 billion, down $1.9 billion, or 3.5%
  • Increase in total deposits of $6.0 billion, or 12.7%
  • Stockholders' equity of $5.4 billion, up $335 million
  • Increase in stockholders' equity of $393 million

 

 

LOANS AND ASSET QUALITY:

  • Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.14%, compared to 0.15%
  • Nonperforming assets to total assets of 0.14%, compared to 0.15%
  • Annualized net loan charge-offs (recoveries) to average loans outstanding of 0.01%, compared to (0.02)%
  • Net loan charge-offs (recoveries) to average loans outstanding of approximately 0.00%, compared to 0.02%

 

 

KEY PERFORMANCE METRICS:
  • Net interest margin of 3.98%, compared to 3.78%
  • Net interest margin of 3.67%, compared to 3.41%
  • Return on average assets and on tangible common equity1 of 1.67% and 27.0%, compared to 1.53% and 24.9%, respectively
  • Return on average assets and on tangible common equity1 of 1.62% and 25.4%, compared to 1.83% and 26.2%, respectively
  • Tangible common equity ratio1 of 6.5%, compared to 5.9%
  • Tangible common equity ratio1 of 6.5%, compared to 7.3%
  • CET 1 ratio of 9.3%, compared to 8.7%
  • CET 1 ratio of 9.3%, compared to 9.1%
  • Tangible book value per share1, net of tax, of $40.25, an increase of 8.3% from $37.16
  • Tangible book value per share1, net of tax, of $40.25, an increase of 6.4% from $37.84
  • Efficiency ratio1 of 46.9%, compared to 45.5%
  • Efficiency ratio1 of 44.9%, compared to 42.9%

1 See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income was $639.7 million in the fourth quarter 2022, an increase of $37.6 million from $602.1 million in the third quarter 2022, and an increase of $189.1 million, or 42.0%, compared to the fourth quarter 2021. The increase in net interest income from the third quarter 2022 is due to 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 fourth quarter 2021.

The Company recorded a provision for credit losses of $3.1 million in the fourth quarter 2022, a decrease of $25.4 million from $28.5 million in the third quarter 2022, and a decrease of $10.1 million from $13.2 million in the fourth quarter 2021. The provision for credit losses during the fourth quarter 2022 is primarily due to heightened economic uncertainty, offset by a decrease in loans.

The Company’s net interest margin in the fourth quarter 2022 was 3.98%, an increase from 3.78% in the third quarter 2022, and an increase from 3.33% in the fourth 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 borrowings. The increase in net interest margin from the fourth quarter 2021 was driven by HFI loan growth plus an increase in rates, partially offset by higher deposits and borrowings coupled with higher rates.

Non-interest income was $61.5 million for the fourth quarter 2022, compared to $61.8 million for the third quarter 2022, and $110.4 million for the fourth quarter 2021. The $0.3 million decrease in non-interest income from the third quarter 2022 was primarily related to fair value loss adjustments from HFI loans transferred to HFS and sold in the fourth quarter 2022 and a revaluation in the third quarter 2022 of the contingent consideration liability related to the Digital Disbursements acquisition that did not recur. These items were partially offset by a $10.9 million increase in net gain on loan origination and sale activities due to gains from hedging activity, partially offset by a reduction in spreads and production volume. Net loan servicing revenue decreased $1.6 million due to a decrease in the value of MSRs, which was partially offset by an increase in servicing revenue. The $48.9 million decrease from the fourth quarter 2021 was driven by a decrease in net gain on loan origination and sale activities of $47.8 million from lower production volume, partially offset by a $19.1 million increase in loan servicing revenue.

Net revenue was $701.2 million for the fourth quarter 2022, an increase of $37.3 million, or 5.6%, compared to $663.9 million for the third quarter 2022, and an increase of $140.2 million, or 25.0%, compared to $561.0 million for the fourth quarter 2021.

Non-interest expense was $333.4 million for the fourth quarter 2022, compared to $305.8 million for the third quarter 2022, and $237.8 million for the fourth quarter 2021. The Company’s efficiency ratio1 was 46.9% for the fourth quarter 2022, compared to 45.5% in the third quarter 2022, and 41.8% for the fourth quarter 2021. Non-interest expense increased from the third quarter 2022 due primarily to increased deposit costs. The increase in non-interest expense from the fourth quarter 2021 is also attributable to increased deposit costs.

Income tax expense was $71.7 million for the fourth quarter 2022, compared to $65.6 million for the third quarter 2022, and $64.0 million for the fourth quarter 2021.

Net income was $293.0 million for the fourth quarter 2022, an increase of $29.0 million from $264.0 million for the third quarter 2022, and an increase of $47.0 million from $246.0 million for the fourth quarter 2021. Earnings per share totaled $2.67 for the fourth quarter 2022, compared to $2.42 for the third quarter 2022, and $2.32 for the fourth 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 fourth quarter 2022, the Company’s PPNR1 was $367.8 million, up $9.7 million from $358.1 million in the third quarter 2022, and up $44.6 million from $323.2 million in the fourth quarter 2021.

The Company had 3,365 full-time equivalent employees and 56 offices at December 31, 2022, compared to 3,368 employees and 60 offices at September 30, 2022, and 3,139 employees and 58 offices at December 31, 2021.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees totaled $51.9 billion at December 31, 2022, compared to $52.2 billion at September 30, 2022, and $39.1 billion at December 31, 2021. The decrease in HFI loans of $339 million from the prior quarter was driven by a decrease of $1.6 billion in commercial and industrial loans, partially offset by increases of $651 million in CRE non-owner occupied, $392 million in construction and land development, and $254 million in residential real estate loans. From December 31, 2021, HFI loan growth of $10.9 billion (which excludes transfers of government guaranteed early buyout ("EBO") residential loans from HFS to HFI in 2022 with a balance of $1.9 billion at December 31, 2022), was primarily driven by residential real estate, commercial and industrial, and CRE non-owner occupied, loans which increased $4.8 billion, $2.8 billion, and, $2.4 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 December 31, 2022, the allowance for loan losses to funded HFI loans ratio was 0.60%, compared to 0.58% at September 30, 2022, and 0.65% at December 31, 2021. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.69% at December 31, 2022, compared to 0.68% at September 30, 2022, and 0.74% at December 31, 2021. 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. As of December 31, 2022, September 30, 2022, and December 31, 2021, the Company is protected from first credit losses on reference pools of loans totaling $12.0 billion, $10.8 billion, and $6.4 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 $21.9 million as of December 31, 2022, $19 million as of September 30, 2022, and $7.2 million as of December 31, 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 0.89% at December 31, 2022, 0.86% at September 30, 2022, and 0.89% at December 31, 2021.

Deposits totaled $53.6 billion at December 31, 2022, a decrease of $1.9 billion from $55.6 billion at September 30, 2022, and an increase of $6.0 billion from $47.6 billion at December 31, 2021. By deposit type, the decrease from the prior quarter is attributable to a decrease of $5.2 billion from non-interest bearing demand deposits, partially offset by increases of $1.9 billion from certificates of deposits, $1.2 billion from interest bearing demand deposits, and $195 million from savings and money market accounts. From December 31, 2021, certificates of deposit, interest-bearing demand deposits, and savings and money market accounts increased by $3.0 billion, $2.6 billion, and $2.1 billion, respectively. These increases were partially offset by a decrease in non-interest bearing demand deposits of $1.7 billion. Non-interest bearing deposits were $19.7 billion at December 31, 2022, compared to $24.9 billion at September 30, 2022, and $21.4 billion at December 31, 2021.

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

 

 

Dec 31, 2022

 

Sep 30, 2022

 

Dec 31, 2021

Non-interest bearing

 

36.7

%

 

44.8

%

 

44.9

%

Savings and money market

 

36.2

 

 

34.6

 

 

36.3

 

Interest-bearing demand

 

17.7

 

 

15.0

 

 

14.5

 

Certificates of deposit

 

9.4

 

 

5.6

 

 

4.3

 

The Company’s ratio of HFI loans to deposits was 96.7% at December 31, 2022, compared to 93.9% at September 30, 2022, and 82.1% at December 31, 2021.

Borrowings were $6.3 billion at December 31, 2022 and September 30, 2022, and $1.5 billion at December 31, 2021. Borrowings remained flat from September 30, 2022 due primarily to the issuance of $93 million of credit linked notes in the fourth quarter 2022 offset by a decrease in short-term borrowings. The increase in borrowings from December 31, 2021 is due to an increase in short-term borrowings of $4.3 billion and issuance of $579 million of credit linked notes, net of issuance costs, during 2022.

Qualifying debt totaled $893 million at December 31, 2022, compared to $889 million at September 30, 2022, and $896 million at December 31, 2021.

Stockholders’ equity was $5.4 billion at December 31, 2022, compared to $5.0 billion at September 30, 2022 and December 31, 2021. The increase in stockholders’ equity quarter over quarter was due to net income and unrealized fair value gains of approximately $77 million on the Company's available for sale securities, which are recorded in other comprehensive (loss) income, net of tax, partially offset by dividends to shareholders. A cash dividend of $0.36 per share was paid to common shareholders on December 2, 2022, totaling $39.2 million, and a cash dividend of $0.27 per depository share was paid to preferred shareholders on December 30, 2022, totaling $3.2 million. The increase in stockholders' equity from December 31, 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 December 31, 2022, tangible common equity, net of tax1, was 6.5% of tangible assets1 and total capital was 12.1% of risk-weighted assets. The Company’s tangible book value per share1 was $40.25 at December 31, 2022, an increase of 8.3% from $37.16, and up 6.4% from $37.84 at December 31, 2021. The increase in tangible book value per share from September 30, 2022 is attributable to net income and fair value marks on the Company's available for sale securities, which are recorded in other comprehensive (loss) income, net of tax.

Total assets decreased 2.1% to $67.7 billion at December 31, 2022, from $69.2 billion at September 30, 2022, and increased 21.0% from $56.0 billion at December 31, 2021. The decrease in total assets from September 30, 2022 and December 31, 2021 was driven by decreases in HFS and HFI loans.

1 See reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $3.1 million for the fourth quarter 2022, compared to $28.5 million for the third quarter 2022, and $13.2 million for the fourth quarter 2021. Net loan charge-offs (recoveries) in the fourth quarter 2022 were $1.8 million, or 0.01% of average loans (annualized), compared to $(1.9) million, or (0.02)%, in the third quarter 2022, and $1.4 million, or 0.02%, in the fourth quarter 2021.

Nonaccrual loans decreased $5 million to $85 million during the quarter and increased $12 million from December 31, 2021. Loans past due 90 days and still accruing interest were zero (excluding government guaranteed loans of $582 million) at December 31, 2022, compared to zero at September 30, 2022 and December 31, 2021 (excluding government guaranteed loans of $644 million and zero at September 30, 2022 and December 31, 2021, respectively). Loans past due 30-89 days and still accruing interest totaled $70 million (excluding government guaranteed loans of $334 million) at December 31, 2022, an increase from $56 million at September 30, 2022, and an increase from $53 million at December 31, 2021 (excluding government guaranteed loans of $245 million and zero at September 30, 2022 and December 31, 2021, respectively).

Repossessed assets totaled $11 million at December 31, 2022, flat from September 30, 2022, and a $1 million decrease from $12 million at December 31, 2021. Classified assets totaled $393 million at December 31, 2022, an increase of $8 million from $385 million at September 30, 2022, and an increase of $92 million from $301 million at December 31, 2021.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 6.8% at December 31, 2022, compared to 7.0% at September 30, 2022, and 6.4% at December 31, 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 $31.4 billion at December 31, 2022, a decrease of $646 million during the quarter, and an increase of $6.3 billion during the year. Deposits for the Commercial segment totaled $29.5 billion at December 31, 2022, a decrease of $512 million during the quarter, and a decrease of $973 million during the year.

Pre-tax income for the Commercial segment was $320.5 million for the three months ended December 31, 2022, an increase of $22.3 million from the three months ended September 30, 2022, and an increase of $82.2 million from the three months ended December 31, 2021. For the year ended December 31, 2022, the Commercial segment reported total pre-tax income of $1.1 billion, an increase of $233.8 million compared to the year ended December 31, 2021.

The Consumer Related segment reported an HFI loan balance of $20.4 billion at December 31, 2022, an increase of $307 million during the quarter, and an increase of $6.5 billion during the year. The Consumer Related segment also has loans held for sale of $1.2 billion at December 31, 2022, a decrease of $1.0 billion during the quarter, and a decrease of $4.5 billion during the year. Deposits for the Consumer Related segment totaled $18.5 billion, a decrease of $2.5 billion during the quarter, and an increase of $3.1 billion during the year.

Pre-tax income for the Consumer Related segment was $69.8 million for the three months ended December 31, 2022, a decrease of $23.4 million from the three months ended September 30, 2022, and a decrease of $65.2 million from the three months ended December 31, 2021. Pre-tax income for the Consumer Related segment for the year ended December 31, 2022 totaled $450.1 million, a decrease of $46.0 million compared to the year ended December 31, 2021.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter 2022 financial results at 12:00 p.m. ET on Wednesday, January 25, 2023. Participants may access the call by dialing 1-844-200-6205 and using access code 669213 or via live audio webcast using the website link https://events.q4inc.com/attendee/484930167. 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 January 25th through 11:00 p.m. ET February 25th by dialing 1-866-813-9403, using access code 597938.

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 December 31,

 

 

 

 

 

 

 

 

2022

 

2021

 

Change %

 

 

 

 

 

 

 

 

(in millions)

 

 

Total assets

 

 

 

 

 

 

 

$

67,734

 

$

55,983

 

 

21.0

%

Loans held for sale

 

 

 

 

 

 

 

 

1,184

 

 

5,635

 

 

(79.0

)

HFI loans, net of deferred fees

 

 

 

 

 

 

 

 

51,862

 

 

39,075

 

 

32.7

 

Investment securities

 

 

 

 

 

 

 

 

8,760

 

 

7,541

 

 

16.2

 

Total deposits

 

 

 

 

 

 

 

 

53,644

 

 

47,612

 

 

12.7

 

Borrowings

 

 

 

 

 

 

 

 

6,299

 

 

1,502

 

 

NM

 

Qualifying debt

 

 

 

 

 

 

 

 

893

 

 

896

 

 

(0.3

)

Stockholders' equity

 

 

 

 

 

 

 

 

5,356

 

 

4,963

 

 

7.9

 

Tangible common equity, net of tax (1)

 

 

 

 

 

 

 

 

4,383

 

 

4,035

 

 

8.6

 

Common equity Tier 1 capital

5,073

4,068

24.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended December 31,

 

For the Year Ended December 31,

 

 

2022

 

2021

 

Change %

 

2022

 

2021

 

Change %

 

 

(in millions, except per share data)

 

 

 

(in millions, except per share data)

 

 

Interest income

 

$

888.3

 

$

483.3

 

83.8

%

 

$

2,691.8

 

$

1,658.7

 

 

62.3

%

Interest expense

 

 

248.6

 

 

32.7

 

NM

 

 

 

475.5

 

 

109.9

 

 

NM

 

Net interest income

 

 

639.7

 

 

450.6

 

42.0

 

 

 

2,216.3

 

 

1,548.8

 

 

43.1

 

Provision for (recovery of) credit losses

 

 

3.1

 

 

13.2

 

(76.5

)

 

 

68.1

 

 

(21.4

)

 

NM

 

Net interest income after provision for credit losses

 

 

636.6

 

 

437.4

 

45.5

 

 

 

2,148.2

 

 

1,570.2

 

 

36.8

 

Non-interest income

 

 

61.5

 

 

110.4

 

(44.3

)

 

 

324.6

 

 

404.2

 

 

(19.7

)

Non-interest expense

 

 

333.4

 

 

237.8

 

40.2

 

 

 

1,156.7

 

 

851.4

 

 

35.9

 

Income before income taxes

 

 

364.7

 

 

310.0

 

17.6

 

 

 

1,316.1

 

 

1,123.0

 

 

17.2

 

Income tax expense

 

 

71.7

 

 

64.0

 

12.0

 

 

 

258.8

 

 

223.8

 

 

15.6

 

Net income

 

 

293.0

 

 

246.0

 

19.1

 

 

 

1,057.3

 

 

899.2

 

 

17.6

 

Dividends on preferred stock

 

 

3.2

 

 

3.5

 

(8.6

)

 

 

12.8

 

 

3.5

 

 

NM

 

Net income available to common stockholders

 

$

289.8

 

$

242.5

 

19.5

 

 

$

1,044.5

 

$

895.7

 

 

16.6

 

Diluted earnings per common share

 

$

2.67

 

$

2.32

 

15.1

 

 

$

9.70

 

$

8.67

 

 

11.9

 

(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 December 31,

 

For the Year Ended December 31,

 

 

2022

 

2021

 

Change %

 

2022

 

2021

 

Change %

Diluted earnings per common share

 

$

2.67

 

$

2.32

 

15.1

%

 

$

9.70

 

$

8.67

 

11.9

%

Book value per common share

 

 

46.47

 

 

43.78

 

6.1

 

 

 

 

 

 

 

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

 

 

40.25

 

 

37.84

 

6.4

 

 

 

 

 

 

 

Average common shares outstanding

(in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

108.0

 

 

103.9

 

4.0

 

 

 

107.2

 

 

102.7

 

4.4

 

Diluted

 

 

108.4

 

 

104.5

 

3.7

 

 

 

107.6

 

 

103.3

 

4.2

 

Common shares outstanding

 

 

108.9

 

 

106.6

 

2.1

 

 

 

 

 

 

 

Selected Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

1.67

%

 

1.69

%

 

(1.2

) %

 

1.62

%

 

1.83

%

 

(11.5

) %

Return on average tangible common equity (1, 2)

 

27.0

 

 

25.8

 

 

4.7

 

 

25.4

 

 

26.2

 

 

(3.1

)

Return on average tangible common equity, excluding AOCI (1, 2)

 

23.1

 

 

26.0

 

 

(11.2

)

 

23.1

 

 

26.6

 

 

(13.2

)

Net interest margin (2)

 

3.98

 

 

3.33

 

 

19.5

 

 

3.67

 

 

3.41

 

 

7.6

 

Efficiency ratio - tax equivalent basis (1)

 

46.9

 

 

41.8

 

 

12.2

 

 

44.9

 

 

42.9

 

 

4.7

 

Loan to deposit ratio

 

96.7

 

 

82.1

 

 

17.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

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

 

0.01

%

 

0.02

%

 

(50.0

) %

 

0.00

%

 

0.02

%

 

NM

 

Nonaccrual loans to funded HFI loans

 

0.16

 

 

0.19

 

 

(15.8

)

 

 

 

 

 

 

Nonaccrual loans and repossessed assets to total assets

 

0.14

 

 

0.15

 

 

(6.7

)

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans

 

0.60

 

 

0.65

 

 

(7.7

)

 

 

 

 

 

 

Allowance for loan losses to nonaccrual HFI loans

 

364

 

 

348

 

 

4.6

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

Dec 31, 2022

 

Sep 30, 2022

 

Dec 31, 2021

Tangible common equity (1)

 

6.5

%

 

5.9

%

 

7.3

%

Common Equity Tier 1 (3)

 

9.3

 

 

8.7

 

 

9.1

 

Tier 1 Leverage ratio (3)

 

7.8

 

 

7.5

 

 

7.8

 

Tier 1 Capital (3)

 

10.0

 

 

9.3

 

 

9.9

 

Total Capital (3)

 

12.1

 

 

11.4

 

 

12.3

 

(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 December 31, 2022 are preliminary.

NM

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

2021

 

2022

 

2021

 

 

(dollars in millions, except per share data)

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

Loans

 

$

785.1

 

 

$

438.6

 

 

$

2,393.4

 

 

$

1,488.8

 

Investment securities

 

 

89.4

 

 

 

43.7

 

 

 

272.6

 

 

 

164.7

 

Other

 

 

13.8

 

 

 

1.0

 

 

 

25.8

 

 

 

5.2

 

Total interest income

 

 

888.3

 

 

 

483.3

 

 

 

2,691.8

 

 

 

1,658.7

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

157.6

 

 

 

12.8

 

 

 

276.4

 

 

 

47.5

 

Qualifying debt

 

 

9.1

 

 

 

9.2

 

 

 

35.0

 

 

 

33.1

 

Borrowings

 

 

81.9

 

 

 

10.7

 

 

 

164.1

 

 

 

29.3

 

Total interest expense

 

 

248.6

 

 

 

32.7

 

 

 

475.5

 

 

 

109.9

 

Net interest income

 

 

639.7

 

 

 

450.6

 

 

 

2,216.3

 

 

 

1,548.8

 

Provision for (recovery of) credit losses

 

 

3.1

 

 

 

13.2

 

 

 

68.1

 

 

 

(21.4

)

Net interest income after provision for credit losses

 

 

636.6

 

 

 

437.4

 

 

 

2,148.2

 

 

 

1,570.2

 

Non-interest income:

 

 

 

 

 

 

 

 

Net gain on loan origination and sale activities

 

 

25.4

 

 

 

73.2

 

 

 

104.0

 

 

 

326.2

 

Net loan servicing revenue (expense)

 

 

21.4

 

 

 

2.3

 

 

 

130.9

 

 

 

(16.3

)

Service charges and fees

 

 

5.9

 

 

 

7.1

 

 

 

27.0

 

 

 

28.3

 

Commercial banking related income

 

 

5.5

 

 

 

4.9

 

 

 

21.5

 

 

 

17.4

 

Income from equity investments

 

 

4.2

 

 

 

5.2

 

 

 

17.8

 

 

 

22.1

 

Gain on recovery from credit guarantees

 

 

3.0

 

 

 

7.2

 

 

 

14.7

 

 

 

7.2

 

Gain on sales of investment securities

 

 

0.1

 

 

 

8.3

 

 

 

6.8

 

 

 

8.3

 

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

 

 

(9.2

)

 

 

(0.8

)

 

 

(28.6

)

 

 

(1.3

)

Other

 

 

5.2

 

 

 

3.0

 

 

 

30.5

 

 

 

12.3

 

Total non-interest income

 

 

61.5

 

 

 

110.4

 

 

 

324.6

 

 

 

404.2

 

Non-interest expenses:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

125.7

 

 

 

120.6

 

 

 

539.5

 

 

 

466.7

 

Deposit costs

 

 

82.2

 

 

 

9.1

 

 

 

165.8

 

 

 

29.8

 

Legal, professional, and directors' fees

 

 

26.0

 

 

 

20.8

 

 

 

99.9

 

 

 

58.6

 

Data processing

 

 

23.9

 

 

 

17.9

 

 

 

83.0

 

 

 

58.2

 

Occupancy

 

 

15.8

 

 

 

12.4

 

 

 

55.5

 

 

 

43.8

 

Loan servicing expenses

 

 

14.8

 

 

 

15.6

 

 

 

55.5

 

 

 

53.5

 

Insurance

 

 

8.9

 

 

 

7.1

 

 

 

31.1

 

 

 

23.0

 

Business development and marketing

 

 

7.3

 

 

 

6.1

 

 

 

22.1

 

 

 

13.5

 

Loan acquisition and origination expenses

 

 

4.4

 

 

 

8.6

 

 

 

23.1

 

 

 

28.8

 

Loss on extinguishment of debt

 

 

 

 

 

5.9

 

 

 

 

 

 

5.9

 

Net gain on sales and valuations of repossessed and other assets

 

 

(0.3

)

 

 

(0.4

)

 

 

(0.7

)

 

 

(3.5

)

Acquisition and restructure expenses (recoveries)

 

 

 

 

 

(3.2

)

 

 

0.4

 

 

 

15.3

 

Other

 

 

24.7

 

 

 

17.3

 

 

 

81.5

 

 

 

57.8

 

Total non-interest expense

 

 

333.4

 

 

 

237.8

 

 

 

1,156.7

 

 

 

851.4

 

Income before income taxes

 

 

364.7

 

 

 

310.0

 

 

 

1,316.1

 

 

 

1,123.0

 

Income tax expense

 

 

71.7

 

 

 

64.0

 

 

 

258.8

 

 

 

223.8

 

Net income

 

 

293.0

 

 

 

246.0

 

 

 

1,057.3

 

 

 

899.2

 

Dividends on preferred stock

 

 

3.2

 

 

 

3.5

 

 

 

12.8

 

 

 

3.5

 

Net income available to common stockholders

 

$

289.8

 

 

$

242.5

 

 

$

1,044.5

 

 

$

895.7

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted shares

 

 

108.4

 

 

 

104.5

 

 

 

107.6

 

 

 

103.3

 

Diluted earnings per share

 

$

2.67

 

 

$

2.32

 

 

$

9.70

 

 

$

8.67

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

 

 

Three Months Ended

 

 

Dec 31, 2022

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

 

(in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

785.1

 

 

$

657.0

 

 

$

516.6

 

 

$

434.7

 

 

$

438.6

 

Investment securities

 

 

89.4

 

 

 

75.9

 

 

 

59.3

 

 

 

48.0

 

 

 

43.7

 

Other

 

 

13.8

 

 

 

6.5

 

 

 

3.7

 

 

 

1.8

 

 

 

1.0

 

Total interest income

 

 

888.3

 

 

 

739.4

 

 

 

579.6

 

 

 

484.5

 

 

 

483.3

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

157.6

 

 

 

77.6

 

 

 

27.1

 

 

 

14.1

 

 

 

12.8

 

Qualifying debt

 

 

9.1

 

 

 

8.9

 

 

 

8.6

 

 

 

8.4

 

 

 

9.2

 

Borrowings

 

 

81.9

 

 

 

50.8

 

 

 

18.9

 

 

 

12.5

 

 

 

10.7

 

Total interest expense

 

 

248.6

 

 

 

137.3

 

 

 

54.6

 

 

 

35.0

 

 

 

32.7

 

Net interest income

 

 

639.7

 

 

 

602.1

 

 

 

525.0

 

 

 

449.5

 

 

 

450.6

 

Provision for credit losses

 

 

3.1

 

 

 

28.5

 

 

 

27.5

 

 

 

9.0

 

 

 

13.2

 

Net interest income after provision for credit losses

 

 

636.6

 

 

 

573.6

 

 

 

497.5

 

 

 

440.5

 

 

 

437.4

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Net gain on loan origination and sale activities

 

 

25.4

 

 

 

14.5

 

 

 

27.2

 

 

 

36.9

 

 

 

73.2

 

Net loan servicing revenue

 

 

21.4

 

 

 

23.0

 

 

 

45.4

 

 

 

41.1

 

 

 

2.3

 

Service charges and fees

 

 

5.9

 

 

 

6.5

 

 

 

7.6

 

 

 

7.0

 

 

 

7.1

 

Commercial banking related income

 

 

5.5

 

 

 

5.1

 

 

 

5.8

 

 

 

5.1

 

 

 

4.9

 

Income from equity investments

 

 

4.2

 

 

 

4.3

 

 

 

5.2

 

 

 

4.1

 

 

 

5.2

 

Gain on recovery from credit guarantees

 

 

3.0

 

 

 

0.4

 

 

 

9.0

 

 

 

2.3

 

 

 

7.2

 

Gain (loss) on sales of investment securities

 

 

0.1

 

 

 

 

 

 

(0.2

)

 

 

6.9

 

 

 

8.3

 

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

 

 

(9.2

)

 

 

(2.8

)

 

 

(10.0

)

 

 

(6.6

)

 

 

(0.8

)

Other

 

 

5.2

 

 

 

10.8

 

 

 

5.0

 

 

 

9.5

 

 

 

3.0

 

Total non-interest income

 

 

61.5

 

 

 

61.8

 

 

 

95.0

 

 

 

106.3

 

 

 

110.4

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

125.7

 

 

 

136.5

 

 

 

139.0

 

 

 

138.3

 

 

 

120.6

 

Deposit costs

 

 

82.2

 

 

 

56.2

 

 

 

18.1

 

 

 

9.3

 

 

 

9.1

 

Legal, professional, and directors' fees

 

 

26.0

 

 

 

24.8

 

 

 

25.1

 

 

 

24.0

 

 

 

20.8

 

Data processing

 

 

23.9

 

 

 

21.8

 

 

 

19.7

 

 

 

17.6

 

 

 

17.9

 

Occupancy

 

 

15.8

 

 

 

13.9

 

 

 

13.0

 

 

 

12.8

 

 

 

12.4

 

Loan servicing expenses

 

 

14.8

 

 

 

15.2

 

 

 

14.7

 

 

 

10.8

 

 

 

15.6

 

Insurance

 

 

8.9

 

 

 

8.1

 

 

 

6.9

 

 

 

7.2

 

 

 

7.1

 

Business development and marketing

 

 

7.3

 

 

 

5.0

 

 

 

5.4

 

 

 

4.4

 

 

 

6.1

 

Loan acquisition and origination expenses

 

 

4.4

 

 

 

5.8

 

 

 

6.4

 

 

 

6.5

 

 

 

8.6

 

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

 

 

(0.3

)

 

 

(0.2

)

 

 

(0.3

)

 

 

0.1

 

 

 

(0.4

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5.9

 

Acquisition and restructure expenses (recoveries)

 

 

 

 

 

 

 

 

 

 

 

0.4

 

 

 

(3.2

)

Other

 

 

24.7

 

 

 

18.7

 

 

 

20.9

 

 

 

17.2

 

 

 

17.3

 

Total non-interest expense

 

 

333.4

 

 

 

305.8

 

 

 

268.9

 

 

 

248.6

 

 

 

237.8

 

Income before income taxes

 

 

364.7

 

 

 

329.6

 

 

 

323.6

 

 

 

298.2

 

 

 

310.0

 

Income tax expense

 

 

71.7

 

 

 

65.6

 

 

 

63.4

 

 

 

58.1

 

 

 

64.0

 

Net income

 

 

293.0

 

 

 

264.0

 

 

 

260.2

 

 

 

240.1

 

 

 

246.0

 

Dividends on preferred stock

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

 

 

3.5

 

Net income available to common stockholders

 

$

289.8

 

 

$

260.8

 

 

$

257.0

 

 

$

236.9

 

 

$

242.5

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Diluted shares

 

 

108.4

 

 

 

107.9

 

 

 

107.7

 

 

 

106.6

 

 

 

104.5

 

Diluted earnings per share

 

$

2.67

 

 

$

2.42

 

 

$

2.39

 

 

$

2.22

 

 

$

2.32

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

 

 

Dec 31, 2022

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

 

(in millions)

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,043

 

 

$

1,610

 

 

$

1,886

 

 

$

2,602

 

 

$

516

 

Investment securities

 

 

8,760

 

 

 

8,603

 

 

 

8,802

 

 

 

8,277

 

 

 

7,541

 

Loans held for sale

 

 

1,184

 

 

 

2,204

 

 

 

2,803

 

 

 

4,762

 

 

 

5,635

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

20,710

 

 

 

22,318

 

 

 

20,754

 

 

 

17,862

 

 

 

18,297

 

Commercial real estate - non-owner occupied

 

 

9,319

 

 

 

8,668

 

 

 

7,775

 

 

 

6,849

 

 

 

6,526

 

Commercial real estate - owner occupied

 

 

1,818

 

 

 

1,848

 

 

 

1,848

 

 

 

1,805

 

 

 

1,898

 

Construction and land development

 

 

4,013

 

 

 

3,621

 

 

 

3,231

 

 

 

3,278

 

 

 

3,023

 

Residential real estate

 

 

15,928

 

 

 

15,674

 

 

 

14,908

 

 

 

11,270

 

 

 

9,282

 

Consumer

 

 

74

 

 

 

72

 

 

 

56

 

 

 

55

 

 

 

49

 

Loans HFI, net of deferred fees

 

 

51,862

 

 

 

52,201

 

 

 

48,572

 

 

 

41,119

 

 

 

39,075

 

Allowance for loan losses

 

 

(310

)

 

 

(304

)

 

 

(273

)

 

 

(258

)

 

 

(252

)

Loans HFI, net of deferred fees and allowance

 

 

51,552

 

 

 

51,897

 

 

 

48,299

 

 

 

40,861

 

 

 

38,823

 

Mortgage servicing rights

 

 

1,148

 

 

 

1,044

 

 

 

826

 

 

 

950

 

 

 

698

 

Premises and equipment, net

 

 

276

 

 

 

237

 

 

 

210

 

 

 

196

 

 

 

182

 

Operating lease right-of-use asset

 

 

163

 

 

 

131

 

 

 

136

 

 

 

142

 

 

 

133

 

Other assets acquired through foreclosure, net

 

 

11

 

 

 

11

 

 

 

12

 

 

 

12

 

 

 

12

 

Bank owned life insurance

 

 

182

 

 

 

181

 

 

 

180

 

 

 

179

 

 

 

180

 

Goodwill and other intangibles, net

 

 

680

 

 

 

682

 

 

 

695

 

 

 

698

 

 

 

635

 

Other assets

 

 

2,735

 

 

 

2,565

 

 

 

2,206

 

 

 

1,897

 

 

 

1,628

 

Total assets

 

$

67,734

 

 

$

69,165

 

 

$

66,055

 

 

$

60,576

 

 

$

55,983

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

19,691

 

 

$

24,926

 

 

$

23,721

 

 

$

23,520

 

 

$

21,353

 

Interest bearing:

 

 

 

 

 

 

 

 

 

 

Demand

 

 

9,507

 

 

 

8,350

 

 

 

8,387

 

 

 

8,268

 

 

 

6,924

 

Savings and money market

 

 

19,397

 

 

 

19,202

 

 

 

19,026

 

 

 

18,553

 

 

 

17,279

 

Certificates of deposit

 

 

5,049

 

 

 

3,111

 

 

 

2,578

 

 

 

1,818

 

 

 

2,056

 

Total deposits

 

 

53,644

 

 

 

55,589

 

 

 

53,712

 

 

 

52,159

 

 

 

47,612

 

Borrowings

 

 

6,299

 

 

 

6,319

 

 

 

5,210

 

 

 

833

 

 

 

1,502

 

Qualifying debt

 

 

893

 

 

 

889

 

 

 

891

 

 

 

893

 

 

 

896

 

Operating lease liability

 

 

185

 

 

 

149

 

 

 

151

 

 

 

155

 

 

 

143

 

Accrued interest payable and other liabilities

 

 

1,357

 

 

 

1,198

 

 

 

1,132

 

 

 

1,524

 

 

 

867

 

Total liabilities

 

 

62,378

 

 

 

64,144

 

 

 

61,096

 

 

 

55,564

 

 

 

51,020

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

Common stock and additional paid-in capital

 

 

2,058

 

 

 

2,049

 

 

 

1,990

 

 

 

1,979

 

 

 

1,879

 

Retained earnings

 

 

3,664

 

 

 

3,413

 

 

 

3,192

 

 

 

2,973

 

 

 

2,773

 

Accumulated other comprehensive (loss) income

 

 

(661

)

 

 

(736

)

 

 

(518

)

 

 

(235

)

 

 

16

 

Total stockholders' equity

 

 

5,356

 

 

 

5,021

 

 

 

4,959

 

 

 

5,012

 

 

 

4,963

 

Total liabilities and stockholders' equity

 

$

67,734

 

 

$

69,165

 

 

$

66,055

 

 

$

60,576

 

 

$

55,983

 

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

 

 

Three Months Ended

 

 

Dec 31, 2022

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

 

(in millions)

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

304.1

 

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

Provision for credit losses (1)

 

 

7.4

 

 

 

29.0

 

 

 

17.0

 

 

 

5.3

 

 

 

7.0

 

Recoveries of loans previously charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.3

 

 

 

3.8

 

 

 

0.8

 

 

 

2.4

 

 

 

1.8

 

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

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

0.1

 

 

 

 

 

 

0.4

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total recoveries

 

 

0.4

 

 

 

4.0

 

 

 

1.0

 

 

 

2.4

 

 

 

2.5

 

Loans charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

1.1

 

 

 

2.1

 

 

 

2.4

 

 

 

2.6

 

 

 

3.8

 

Commercial real estate - non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate - owner occupied

 

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

 

0.6

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.1

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans charged-off

 

 

2.2

 

 

 

2.1

 

 

 

2.4

 

 

 

2.6

 

 

 

3.9

 

Net loan charge-offs (recoveries)

 

 

1.8

 

 

 

(1.9

)

 

 

1.4

 

 

 

0.2

 

 

 

1.4

 

Balance, end of period

 

$

309.7

 

 

$

304.1

 

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for unfunded loan commitments

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

52.1

 

 

$

53.8

 

 

$

43.3

 

 

$

37.6

 

 

$

32.1

 

(Recovery of) provision for credit losses (1)

 

 

(5.1

)

 

 

(1.7

)

 

 

10.5

 

 

 

5.7

 

 

 

5.5

 

Balance, end of period (2)

 

$

47.0

 

 

$

52.1

 

 

$

53.8

 

 

$

43.3

 

 

$

37.6

 

 

 

 

 

 

 

 

 

 

 

 

Components of the allowance for credit losses on loans

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

309.7

 

 

$

304.1

 

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

Allowance for unfunded loan commitments

 

 

47.0

 

 

 

52.1

 

 

 

53.8

 

 

 

43.3

 

 

 

37.6

 

Total allowance for credit losses on loans

 

$

356.7

 

 

$

356.2

 

 

$

327.0

 

 

$

300.9

 

 

$

290.1

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.01

%

 

 

(0.02

) %

 

 

0.01

%

 

 

0.00

%

 

 

0.02

%

 

 

 

 

 

 

 

 

 

 

 

Allowance ratios

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans (3)

 

 

0.60

%

 

 

0.58

%

 

 

0.56

%

 

 

0.63

%

 

 

0.65

%

Allowance for credit losses to funded HFI loans (3)

 

 

0.69

 

 

 

0.68

 

 

 

0.67

 

 

 

0.73

 

 

 

0.74

 

Allowance for loan losses to nonaccrual HFI loans

 

 

364

 

 

 

338

 

 

 

321

 

 

 

283

 

 

 

346

 

Allowance for credit losses to nonaccrual HFI loans

 

 

420

 

 

 

396

 

 

 

385

 

 

 

331

 

 

 

397

 

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $0.8 million provision for credit losses on investment securities for the three months ended December 31, 2022. The allowance for credit losses on investment securities totaled $5.2 million as of December 31, 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 $21.9 million as of December 31, 2022 related to a $12.0 billion pool of loans covered under five separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

 

 

Three Months Ended

 

 

Dec 31, 2022

 

Sep 30, 2022

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

 

(in millions)

Nonaccrual loans and repossessed assets

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

85

 

 

$

90

 

 

$

85

 

 

$

91

 

 

$

73

 

Nonaccrual loans to funded HFI loans

 

 

0.16

%

 

 

0.17

%

 

 

0.17

%

 

 

0.22

%

 

 

0.19

%

Repossessed assets

 

$

11

 

 

$

11

 

 

$

12

 

 

$

12

 

 

$

12

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.14

%

 

 

0.15

%

 

 

0.15

%

 

 

0.17

%

 

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

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)

 

$

70

 

 

$

56

 

 

$

117

 

 

$

58

 

 

$

53

 

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

 

 

0.13

%

 

 

0.11

%

 

 

0.24

%

 

 

0.14

%

 

 

0.13

%

 

 

 

 

 

 

 

 

 

 

 

Other credit quality metrics

 

 

 

 

 

 

 

 

 

 

Special mention loans

 

$

351

 

 

$

312

 

 

$

317

 

 

$

350

 

 

$

331

 

Special mention loans to funded HFI loans

 

 

0.68

%

 

 

0.60

%

 

 

0.65

%

 

 

0.85

%

 

 

0.85

%

 

 

 

 

 

 

 

 

 

 

 

Classified loans on accrual

 

$

280

 

 

$

268

 

 

$

232

 

 

$

253

 

 

$

216

 

Classified loans on accrual to funded HFI loans

 

 

0.54

%

 

 

0.51

%

 

 

0.48

%

 

 

0.61

%

 

 

0.55

%

Classified assets

 

$

393

 

 

$

385

 

 

$

346

 

 

$

365

 

 

$

301

 

Classified assets to total assets

 

 

0.58

%

 

 

0.56

%

 

 

0.52

%

 

 

0.60

%

 

 

0.54

%

(1)

Excludes government guaranteed residential mortgage loans of $582 million, $644 million, and $827 million as of December 31, 2022, September 30, 2022, and June 30, 2022, respectively.

(2)

Excludes government guaranteed residential mortgage loans of $334 million, $245 million, and $202 million as of December 31, 2022, September 30, 2022, and June 30, 2022, respectively.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

 

 

Three Months Ended

 

 

December 31, 2022

 

September 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

 

$

2,659

 

 

$

37.8

 

5.63

%

 

$

3,993

 

 

$

49.0

 

4.87

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

21,654

 

 

 

349.3

 

6.45

 

 

 

21,551

 

 

 

282.1

 

5.25

 

CRE - non-owner occupied

 

 

9,077

 

 

 

148.8

 

6.51

 

 

 

8,128

 

 

 

111.4

 

5.44

 

CRE - owner occupied

 

 

1,830

 

 

 

24.4

 

5.39

 

 

 

1,839

 

 

 

23.3

 

5.12

 

Construction and land development

 

 

3,798

 

 

 

80.2

 

8.38

 

 

 

3,471

 

 

 

59.5

 

6.80

 

Residential real estate

 

 

15,803

 

 

 

143.5

 

3.60

 

 

 

15,125

 

 

 

130.9

 

3.43

 

Consumer

 

 

71

 

 

 

1.1

 

6.26

 

 

 

63

 

 

 

0.8

 

5.32

 

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

 

 

52,233

 

 

 

747.3

 

5.70

 

 

 

50,177

 

 

 

608.0

 

4.84

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,397

 

 

 

68.4

 

4.25

 

 

 

6,680

 

 

 

56.4

 

3.35

 

Securities - tax-exempt

 

 

2,068

 

 

 

21.0

 

5.07

 

 

 

2,047

 

 

 

19.5

 

4.73

 

Total securities (1)

 

 

8,465

 

 

 

89.4

 

4.45

 

 

 

8,727

 

 

 

75.9

 

3.66

 

Cash and other

 

 

1,361

 

 

 

13.8

 

4.02

 

 

 

1,239

 

 

 

6.5

 

2.07

 

Total interest earning assets

 

 

64,718

 

 

 

888.3

 

5.50

 

 

 

64,136

 

 

 

739.4

 

4.62

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

289

 

 

 

 

 

 

 

242

 

 

 

 

 

Allowance for credit losses

 

 

(308

)

 

 

 

 

 

 

(282

)

 

 

 

 

Bank owned life insurance

 

 

181

 

 

 

 

 

 

 

180

 

 

 

 

 

Other assets

 

 

4,613

 

 

 

 

 

 

 

4,100

 

 

 

 

 

Total assets

 

$

69,493

 

 

 

 

 

 

$

68,376

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,754

 

 

$

43.6

 

1.98

%

 

$

8,466

 

 

$

24.5

 

1.15

%

Savings and money market

 

 

18,651

 

 

 

88.0

 

1.87

 

 

 

18,515

 

 

 

44.5

 

0.95

 

Certificates of deposit

 

 

4,260

 

 

 

26.0

 

2.42

 

 

 

2,843

 

 

 

8.6

 

1.19

 

Total interest-bearing deposits

 

 

31,665

 

 

 

157.6

 

1.97

 

 

 

29,824

 

 

 

77.6

 

1.03

 

Short-term borrowings

 

 

5,440

 

 

 

54.8

 

3.99

 

 

 

4,136

 

 

 

27.0

 

2.59

 

Long-term debt

 

 

1,240

 

 

 

27.1

 

8.68

 

 

 

1,228

 

 

 

23.8

 

7.69

 

Qualifying debt

 

 

890

 

 

 

9.1

 

4.08

 

 

 

891

 

 

 

8.9

 

3.94

 

Total interest-bearing liabilities

 

 

39,235

 

 

 

248.6

 

2.51

 

 

 

36,079

 

 

 

137.3

 

1.51

 

Interest cost of funding earning assets

 

 

 

1.52

 

 

 

 

 

 

0.84

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

23,729

 

 

 

 

 

 

 

25,865

 

 

 

 

 

Other liabilities

 

 

1,296

 

 

 

 

 

 

 

1,282

 

 

 

 

 

Stockholders’ equity

 

 

5,233

 

 

 

 

 

 

 

5,150

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

69,493

 

 

 

 

 

 

$

68,376

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

639.7

 

3.98

%

 

 

 

$

602.1

 

3.78

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.0 million and $8.5 million for the three months ended December 31, 2022 and September 30, 2022, respectively.

(2)

Included in the yield computation are net loan fees of $34.8 million and $31.9 million for the three months ended December 31, 2022 and September 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

 

 

December 31, 2022

 

December 31, 2021

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

 

 

 

($ in millions)

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

2,659

 

 

$

37.8

 

5.63

%

 

$

9,159

 

 

$

70.3

 

3.04

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

21,654

 

 

 

349.3

 

6.45

 

 

 

17,087

 

 

 

169.5

 

4.01

 

CRE - non-owner-occupied

 

 

9,077

 

 

 

148.8

 

6.51

 

 

 

6,209

 

 

 

70.0

 

4.48

 

CRE - owner-occupied

 

 

1,830

 

 

 

24.4

 

5.39

 

 

 

1,971

 

 

 

24.2

 

4.96

 

Construction and land development

 

 

3,798

 

 

 

80.2

 

8.38

 

 

 

3,016

 

 

 

43.9

 

5.78

 

Residential real estate

 

 

15,803

 

 

 

143.5

 

3.60

 

 

 

8,282

 

 

 

60.3

 

2.89

 

Consumer

 

 

71

 

 

 

1.1

 

6.26

 

 

 

44

 

 

 

0.4

 

3.85

 

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

 

 

52,233

 

 

 

747.3

 

5.70

 

 

 

36,609

 

 

 

368.3

 

4.03

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,397

 

 

 

68.4

 

4.25

 

 

 

5,443

 

 

 

25.6

 

1.86

 

Securities - tax-exempt

 

 

2,068

 

 

 

21.0

 

5.07

 

 

 

2,175

 

 

 

18.1

 

4.12

 

Total securities (1)

 

 

8,465

 

 

 

89.4

 

4.45

 

 

 

7,618

 

 

 

43.7

 

2.51

 

Other

 

 

1,361

 

 

 

13.8

 

4.02

 

 

 

1,274

 

 

 

1.0

 

0.31

 

Total interest earning assets

 

 

64,718

 

 

 

888.3

 

5.50

 

 

 

54,660

 

 

 

483.3

 

3.57

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

289

 

 

 

 

 

 

 

253

 

 

 

 

 

Allowance for credit losses

 

 

(308

)

 

 

 

 

 

 

(256

)

 

 

 

 

Bank owned life insurance

 

 

181

 

 

 

 

 

 

 

179

 

 

 

 

 

Other assets

 

 

4,613

 

 

 

 

 

 

 

2,767

 

 

 

 

 

Total assets

 

$

69,493

 

 

 

 

 

 

$

57,603

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,754

 

 

$

43.6

 

1.98

%

 

$

5,918

 

 

$

1.7

 

0.11

%

Savings and money market accounts

 

 

18,651

 

 

 

88.0

 

1.87

 

 

 

17,215

 

 

 

9.1

 

0.21

 

Certificates of deposit

 

 

4,260

 

 

 

26.0

 

2.42

 

 

 

2,074

 

 

 

2.0

 

0.38

 

Total interest-bearing deposits

 

 

31,665

 

 

 

157.6

 

1.97

 

 

 

25,207

 

 

 

12.8

 

0.20

 

Short-term borrowings

 

 

5,440

 

 

 

54.8

 

3.99

 

 

 

2,815

 

 

 

2.4

 

0.35

 

Long-term debt

 

 

1,240

 

 

 

27.1

 

8.68

 

 

 

565

 

 

 

8.3

 

5.81

 

Qualifying debt

 

 

890

 

 

 

9.1

 

4.08

 

 

 

978

 

 

 

9.2

 

3.72

 

Total interest-bearing liabilities

 

 

39,235

 

 

 

248.6

 

2.51

 

 

 

29,565

 

 

 

32.7

 

0.44

 

Interest cost of funding earning assets

 

 

 

1.52

 

 

 

 

 

 

0.24

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

23,729

 

 

 

 

 

 

 

22,487

 

 

 

 

 

Other liabilities

 

 

1,296

 

 

 

 

 

 

 

913

 

 

 

 

 

Stockholders’ equity

 

 

5,233

 

 

 

 

 

 

 

4,638

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

69,493

 

 

 

 

 

 

$

57,603

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

639.7

 

3.98

%

 

 

 

$

450.6

 

3.33

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.0 million and $8.4 million for the three months ended December 31, 2022 and 2021, respectively.

(2)

Included in the yield computation are net loan fees of $34.8 million and $35.8 million for the three months ended December 31, 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

 

 

Year Ended

 

 

December 31, 2022

 

December 31, 2021

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

 

 

 

($ in millions)

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

4,364

 

 

$

180.3

 

4.13

%

 

$

5,476

 

 

$

174.4

 

3.18

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

20,082

 

 

 

1,002.8

 

5.05

 

 

 

14,979

 

 

 

624.8

 

4.26

 

CRE - non-owner occupied

 

 

7,769

 

 

 

416.4

 

5.37

 

 

 

5,829

 

 

 

271.3

 

4.67

 

CRE - owner occupied

 

 

1,841

 

 

 

93.2

 

5.16

 

 

 

2,030

 

 

 

97.7

 

4.92

 

Construction and land development

 

 

3,426

 

 

 

229.1

 

6.69

 

 

 

2,790

 

 

 

160.0

 

5.74

 

Residential real estate

 

 

13,771

 

 

 

468.5

 

3.40

 

 

 

5,129

 

 

 

158.9

 

3.10

 

Consumer

 

 

61

 

 

 

3.1

 

5.07

 

 

 

39

 

 

 

1.7

 

4.43

 

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

 

 

46,951

 

 

 

2,213.1

 

4.74

 

 

 

30,796

 

 

 

1,314.4

 

4.32

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,324

 

 

 

195.3

 

3.09

 

 

 

5,284

 

 

 

95.8

 

1.81

 

Securities - tax-exempt

 

 

2,067

 

 

 

77.3

 

4.68

 

 

 

2,137

 

 

 

68.9

 

4.05

 

Total securities (1)

 

 

8,391

 

 

 

272.6

 

3.48

 

 

 

7,421

 

 

 

164.7

 

2.46

 

Other

 

 

1,574

 

 

 

25.8

 

1.64

 

 

 

2,718

 

 

 

5.2

 

0.19

 

Total interest earning assets

 

 

61,281

 

 

 

2,691.8

 

4.45

 

 

 

46,411

 

 

 

1,658.7

 

3.65

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

260

 

 

 

 

 

 

 

293

 

 

 

 

 

Allowance for credit losses

 

 

(280

)

 

 

 

 

 

 

(261

)

 

 

 

 

Bank owned life insurance

 

 

180

 

 

 

 

 

 

 

178

 

 

 

 

 

Other assets

 

 

3,948

 

 

 

 

 

 

 

2,487

 

 

 

 

 

Total assets

 

$

65,389

 

 

 

 

 

 

$

49,108

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,331

 

 

$

78.8

 

0.95

%

 

$

4,751

 

 

$

5.9

 

0.13

%

Savings and money market accounts

 

 

18,518

 

 

 

158.6

 

0.86

 

 

 

15,814

 

 

 

33.1

 

0.21

 

Certificates of deposit

 

 

2,772

 

 

 

39.0

 

1.40

 

 

 

1,850

 

 

 

8.5

 

0.46

 

Total interest-bearing deposits

 

 

29,621

 

 

 

276.4

 

0.93

 

 

 

22,415

 

 

 

47.5

 

0.21

 

Short-term borrowings

 

 

3,424

 

 

 

92.1

 

2.69

 

 

 

1,206

 

 

 

8.2

 

0.68

 

Long-term debt

 

 

1,008

 

 

 

72.0

 

7.14

 

 

 

373

 

 

 

21.1

 

5.65

 

Qualifying debt

 

 

893

 

 

 

35.0

 

3.92

 

 

 

827

 

 

 

33.1

 

4.00

 

Total interest-bearing liabilities

 

 

34,946

 

 

 

475.5

 

1.36

 

 

 

24,821

 

 

 

109.9

 

0.44

 

Interest cost of funding earning assets

 

 

 

0.78

 

 

 

 

 

 

0.24

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

24,133

 

 

 

 

 

 

 

19,416

 

 

 

 

 

Other liabilities

 

 

1,211

 

 

 

 

 

 

 

837

 

 

 

 

 

Stockholders’ equity

 

 

5,099

 

 

 

 

 

 

 

4,034

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

65,389

 

 

 

 

 

 

$

49,108

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

2,216.3

 

3.67

%

 

 

 

$

1,548.8

 

3.41

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $33.7 million and $33.3 million for the year ended December 31, 2022 and 2021, respectively.

(2)

Included in the yield computation are net loan fees of $132.2 million and $131.7 million for the year ended December 31, 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 December 31, 2022:

 

(dollars in millions)

Assets:

 

 

 

 

 

 

 

 

Cash, cash equivalents, and investment securities

 

$

9,803

 

 

$

12

 

 

$

 

 

$

9,791

 

Loans held for sale

 

 

1,184

 

 

 

 

 

 

1,184

 

 

 

 

Loans, net of deferred fees and costs

 

 

51,862

 

 

 

31,414

 

 

 

20,448

 

 

 

 

Less: allowance for credit losses

 

 

(310

)

 

 

(262

)

 

 

(48

)

 

 

 

Total loans

 

 

51,552

 

 

 

31,152

 

 

 

20,400

 

 

 

 

Other assets acquired through foreclosure, net

 

 

11

 

 

 

11

 

 

 

 

 

 

 

Goodwill and other intangible assets, net

 

 

680

 

 

 

293

 

 

 

387

 

 

 

 

Other assets

 

 

4,504

 

 

 

435

 

 

 

2,180

 

 

 

1,889

 

Total assets

 

$

67,734

 

 

$

31,903

 

 

$

24,151

 

 

$

11,680

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits

 

$

53,644

 

 

$

29,494

 

 

$

18,492

 

 

$

5,658

 

Borrowings and qualifying debt

 

 

7,192

 

 

 

27

 

 

 

340

 

 

 

6,825

 

Other liabilities

 

 

1,542

 

 

 

83

 

 

 

656