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Western Alliance Bancorporation Reports Second Quarter 2022 Financial Results

Western Alliance Bancorporation (NYSE:WAL):

SECOND QUARTER 2022 FINANCIAL RESULTS

Second Quarter Highlights:

 

 

 

 

 

 

 

 

 

 

 

Net income

 

Earnings per share

 

PPNR1

 

Net interest margin

 

Efficiency ratio1

 

Book value per

common share

$260.2 million

 

$2.39

 

$351.1 million

 

3.54%

 

42.8%

 

$43.07

 

 

 

 

 

$36.671, excluding

goodwill and intangibles

CEO COMMENTARY:

“Western Alliance's solid performance in the second quarter of 2022 produced record revenues, PPNR and earnings for the quarter,” said Kenneth Vecchione, President and Chief Executive Officer. “Our capital driven business model delivered strong quarterly results, achieving $260.2 million in net income and earnings per share of $2.39, an increase of 10.1% over prior year. Quarterly loan and deposit increases of $7.2 billion and $1.6 billion, respectively, lifted total assets to $66 billion. Quarterly net interest margin of 3.54% increased 22 basis points from prior quarter, driving net interest income higher by 16.8% to $525.0 million. Asset quality remained strong with nonperforming assets to total assets of 0.15%."

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 $260.2 million and earnings per share of $2.39, compared to $240.1 million and $2.22, respectively
  • Net income of $260.2 million and earnings per share of $2.39, up 16.3% and 10.1%, from $223.8 million and $2.17, respectively
  • Net revenue of $620.0 million, an increase of 11.6%, or $64.2 million, compared to an increase in non-interest expenses of 8.2%, or $20.3 million
  • Net revenue of $620.0 million, an increase of 22.4%, or $113.5 million, compared to an increase in non-interest expenses of 9.8%, or $24.1 million
  • Pre-provision net revenue1 of $351.1 million, up $43.9 million from $307.2 million
  • Pre-provision net revenue1 of $351.1 million, up $89.4 million from $261.7 million
  • Effective tax rate of 19.6%, compared to 19.5%
  • Effective tax rate of 19.6%, compared to 19.0%

 

FINANCIAL POSITION RESULTS:

  • HFI loans of $48.4 billion, up $5.3 billion, net of a $1.9 billion HFS to HFI loan transfer, or 52.2% annualized
  • Increase in HFI loans of $16.4 billion, net of a $1.9 billion HFS to HFI loan transfer, or 48.9%
  • Total deposits of $53.7 billion, up $1.6 billion, or 11.9% annualized
  • Increase in total deposits of $11.8 billion, or 28.1%
  • Stockholders' equity of $5.0 billion, down $53 million
  • Increase in stockholders' equity of $924.5 million

 

LOANS AND ASSET QUALITY:

  • Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.15%, compared to 0.17%
  • Nonperforming assets to total assets of 0.15%, compared to 0.20%
  • Annualized net loan charge-offs to average loans outstanding of 0.01%, compared to approximately 0.00%
  • Annualized net loan charge-offs to average loans outstanding of 0.01%, compared to approximately 0.00%

 

KEY PERFORMANCE METRICS:

  • Net interest margin of 3.54%, compared to 3.32%
  • Net interest margin of 3.54%, compared to 3.51%
  • Return on average assets and on tangible common equity1 of 1.62% and 25.6%, compared to 1.64% and 23.9%, respectively
  • Return on average assets and on tangible common equity1 of 1.62% and 25.6%, compared to 1.86% and 28.1%, respectively
  • Tangible common equity ratio1 of 6.1%, compared to 6.7%
  • Tangible common equity ratio1 of 6.1%, compared to 7.1%
  • Tangible book value per share1, net of tax, of $36.67, a decrease of 1.2% from $37.13
  • Tangible book value per share1, net of tax, of $36.67, an increase of 11.6% from $32.86
  • Efficiency ratio1 of 42.8%, compared to 44.1%
  • Efficiency ratio1 of 42.8%, compared to 47.5%

1 See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income was $525.0 million in the second quarter 2022, an increase of $75.5 million from $449.5 million in the first quarter 2022, and an increase of $154.5 million, or 41.7%, compared to the second quarter 2021. The increase in net interest income from the first quarter 2022 is due to strong 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, partially offset by higher interest rates on deposits, drove the increase in net interest income from the second quarter 2021.

The Company recorded a provision for credit losses totaling $27.5 million in the second quarter 2022, an increase of $18.5 million from $9.0 million in the first quarter 2022, compared to a provision release of $14.5 million in the second quarter 2021. The provision for credit losses during the second quarter 2022 is primarily due to loan growth and emerging economic uncertainty.

The Company’s net interest margin in the second quarter 2022 was 3.54%, an increase from 3.32% in the first quarter 2022, and an increase from 3.51% in the second 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 short-term borrowings. The increase in net interest margin from the second quarter 2021 was driven by HFI loan growth, partially offset by higher debt and deposit balances coupled with higher rates on deposits.

Non-interest income was $95.0 million for the second quarter 2022, compared to $106.3 million for the first quarter 2022, and $136.0 million for the second quarter 2021. The $11.3 million decrease in non-interest income from the first quarter 2022 was primarily the result of a decrease in net gain on loan origination and sale activities of $9.7 million from decreased gain on sale margins and a small loss on sale of securities in the current quarter of $0.2 million compared to a gain of $6.9 million in the first quarter 2022, which was partially offset by an increase in gain on recovery from credit guarantees of $6.7 million and an increase in loan servicing revenue of $4.3 million. The $41.0 million decrease from the second quarter 2021 was driven by a decrease in net gain on loan origination and sale activities of $104.8 million from lower production volume and gain on sale margins and a $10.0 million loss on fair value adjustments on assets measured at fair value compared to a gain of $3.2 million in the second quarter 2021, partially offset by a $66.2 million increase in loan servicing revenue and a $9.0 million gain on recovery from credit guarantees, which arose from the credit risk transfer transactions undertaken by the Company that transfer first loss exposure to unrelated third parties.

Net revenue was $620.0 million for the second quarter 2022, an increase of $64.2 million, or 11.6%, compared to $555.8 million for the first quarter 2022, and an increase of $113.5 million, or 22.4%, compared to $506.5 million for the second quarter 2021.

Non-interest expense was $268.9 million for the second quarter 2022, compared to $248.6 million for the first quarter 2022, and $244.8 million for the second quarter 2021. The Company’s efficiency ratio1 was 42.8% for the second quarter 2022, compared to 44.1% in the first quarter 2022, and 47.5% for the second quarter 2021. Non-interest expense increased from the first quarter 2022 due to increased deposit costs and loan servicing expenses. The increase in non-interest expense from the second quarter 2021 is attributable to increased legal, professional, and director's fees, deposit and compensation costs, partially offset by lower acquisition and restructuring costs and loan servicing expenses.

Income tax expense was $63.4 million for the second quarter 2022, compared to $58.1 million for the first quarter 2022, and $52.4 million for the second quarter 2021.

Net income was $260.2 million for the second quarter 2022, an increase of $20.1 million from $240.1 million for the first quarter 2022, and an increase of $36.4 million from $223.8 million for the second quarter 2021. Earnings per share was $2.39 for the second quarter 2022, compared to $2.22 for the first quarter 2022, and $2.17 for the second 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 second quarter 2022, the Company’s PPNR1 was $351.1 million, up $43.9 million from $307.2 million in the first quarter 2022, and up $89.4 million from $261.7 million in the second quarter 2021.

The Company had 3,254 full-time equivalent employees and 60 offices at June 30, 2022, compared to 3,170 employees and 60 offices at March 31, 2022, and 3,075 employees and 53 offices at June 30, 2021.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees totaled $48.4 billion at June 30, 2022, compared to $41.1 billion at March 31, 2022, and $30.0 billion at June 30, 2021. HFI loan growth of $5.3 billion from the prior quarter excludes a $1.9 billion transfer of government guaranteed early buyout ("EBO") residential loans from HFS to HFI and was driven by increases of $2.9 billion in commercial and industrial, $1.5 billion in residential real estate, and $926 million in CRE non-owner occupied loans. From June 30, 2021, HFI loan growth of $16.4 billion (which excludes $1.9 billion of transferred EBO loans), was primarily driven by residential real estate, commercial and industrial, and CRE non-owner occupied loans which increased $7.7 billion, $6.5 billion, and $2.1 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 June 30, 2022, the allowance for loan losses to funded HFI loans ratio was 0.56%, compared to 0.63% at March 31, 2022, and 0.78% at June 30, 2021. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.68% at June 30, 2022, compared to 0.73% at March 31, 2022, and 0.88% at June 30, 2021. The decrease in the allowance for credit loss ratios from the prior quarter and 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 June 30, 2022 and March 31, 2022, the Company is protected from credit losses on reference pools of loans totaling $11.1 billion and $5.4 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 as of June 30, 2022 and March 31, 2022 include an allowance of $19 million and $10 million, respectively, related to these pools of loans. The allowance for credit losses to funded HFI loans ratio, adjusted to take into consideration the transfer of risk associated with the credit linked note transactions, was 0.88% at June 30, 2022 and 0.84% at March 31, 2022.

Deposits totaled $53.7 billion at June 30, 2022, an increase of $1.6 billion from $52.2 billion at March 31, 2022, and an increase of $11.8 billion from $41.9 billion at June 30, 2021. By deposit type, the increase from the prior quarter is attributable to an increase of $760 million from certificates of deposits, $473 million from savings and money market accounts, $201 million from non-interest bearing demand deposits, and $119 million from interest bearing demand deposits. From June 30, 2021, deposits increased across all deposit types, with increases in interest-bearing demand deposits of $4.2 billion, non-interest bearing demand deposits of $3.6 billion, savings and money market accounts of $3.2 billion, and certificates of deposit of $761 million. Non-interest bearing deposits were $23.7 billion at June 30, 2022, compared to $23.5 billion at March 31, 2022, and $20.1 billion at June 30, 2021.

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

 

 

Jun 30, 2022

 

Mar 31, 2022

 

Jun 30, 2021

Non-interest bearing

 

44.2

%

 

45.1

%

 

48.0

%

Savings and money market

 

35.4

 

 

35.6

 

 

37.7

 

Interest-bearing demand

 

15.6

 

 

15.8

 

 

10.0

 

Certificates of deposit

 

4.8

 

 

3.5

 

 

4.3

 

The Company’s ratio of HFI loans to deposits was 90.0% at June 30, 2022, compared to 78.8% at March 31, 2022, and 71.6% at June 30, 2021.

Borrowings were $5.2 billion at June 30, 2022, $833 million at March 31, 2022, and $615 million at June 30, 2021. The increase in borrowings from March 31, 2022 is due primarily to an increase in short-term borrowings of $3.9 billion and the issuance of credit linked notes totaling $486 million, net of $8 million in issuance costs, during the quarter. The increase in borrowings from June 30, 2021 is due to the increases described above and the issuance of $225 million in credit linked notes, net of issuance costs, during the second half of 2021.

Qualifying debt totaled $891 million at June 30, 2022, compared to $893 million at March 31, 2022, and $1.1 billion at June 30, 2021. The decrease in qualifying debt from June 30, 2021 is primarily related to $250 million in subordinated debt redemptions during 2021.

Stockholders’ equity was $5.0 billion at June 30, 2022, compared to $5.0 billion at March 31, 2022, and $4.0 billion at June 30, 2021. Stockholders' equity remained consistent quarter over quarter as net income was offset by dividends to shareholders and unrealized fair value losses of approximately $285 million on the Company's available for sale securities, which are recorded in other comprehensive income, net of tax. A cash dividend of $0.35 per share was paid to common shareholders on May 27, 2022, totaling $37.9 million, and a cash dividend of $0.27 per depository share was paid to preferred shareholders on June 30, 2022, totaling $3.2 million. The increase in stockholders' equity from June 30, 2021 is primarily a function of net income, issuance of preferred stock, and sales of common stock under the Company's ATM program, partially offset by dividends to shareholders and losses on available for sale securities.

At June 30, 2022, tangible common equity, net of tax1, was 6.1% of tangible assets1 and total capital was 11.9% of risk-weighted assets. The Company’s tangible book value per share1 was $36.67 at June 30, 2022, a decrease of 1.2% from $37.13, and up 11.6% from $32.86 at June 30, 2021. The decrease in tangible book value per share from March 31, 2022 is attributable to fair value marks on the Company's available for sale securities, which are recorded in other comprehensive income, net of tax.

Total assets increased 9.0% to $66.1 billion at June 30, 2022, from $60.6 billion at March 31, 2022, and increased 34.6% from $49.1 billion at June 30, 2021. The increase in total assets from March 31, 2022 was driven by continued organic loan and deposit growth. The increase in total assets from June 30, 2021 was also driven by continued organic loan growth.

1 See reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $27.5 million for the second quarter 2022, compared to $9.0 million for the first quarter 2022, and a recovery of credit losses of $14.5 million for the second quarter 2021. Net loan charge-offs in the second quarter 2022 were $1.4 million, or 0.01% of average loans (annualized), compared to $0.2 million, or approximately 0.00%, in the first quarter 2022, and $0.1 million, or approximately 0.00%, in the second quarter 2021.

Nonaccrual loans decreased $6 million to $85 million during the quarter and decreased $12 million from June 30, 2021. Loans past due 90 days and still accruing interest were zero (excluding government insured loans of $555 million) at June 30, 2022, compared to zero at March 31, 2022 and June 30, 2021. Loans past due 30-89 days and still accruing interest totaled $117 million (excluding government insured loans of $161 million) at June 30, 2022, an increase from $58 million at March 31, 2022, and an increase from $10 million at June 30, 2021.

Repossessed assets totaled $12 million at June 30, 2022, flat from March 31, 2022, and an increase of $8 million from $4 million at June 30, 2021. Classified assets totaled $346 million at June 30, 2022, a decrease of $19 million from $365 million at March 31, 2022, and an increase of $107 million from $239 million at June 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 6.7% at June 30, 2022, compared to 7.4% at March 31, 2022, and 6.4% at June 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 $29.4 billion at June 30, 2022, an increase of $3.7 billion during the quarter, and an increase of $8.8 billion during the last twelve months. Deposits for the Commercial segment totaled $29.5 billion at June 30, 2022, a decrease of $651 million during the quarter, and an increase of $3.2 billion during the last twelve months.

Pre-tax income for the Commercial segment was $239.9 million for the three months ended June 30, 2022, an increase of $3.1 million from the three months ended March 31, 2022, and an increase of $30.8 million from the three months ended June 30, 2021. For the six months ended June 30, 2022, the Commercial segment reported total pre-tax income of $476.6 million, an increase of $46.6 million compared to the six months ended June 30, 2021.

The Consumer Related segment reported an HFI loan balance of $18.9 billion at June 30, 2022, an increase of $3.6 billion during the quarter, and an increase of $9.5 billion during the last twelve months. The Consumer Related segment also has loans held for sale, initially acquired as part of the AmeriHome acquisition, of $3.0 billion at June 30, 2022, a decrease of $1.8 billion during the quarter. Deposits for the Consumer Related segment totaled $19.7 billion, an increase of $1.2 billion during the quarter, and an increase of $4.8 billion during the last twelve months.

Pre-tax income for the Consumer Related segment was $160.1 million for the three months ended June 30, 2022, an increase of $33.2 million from the three months ended March 31, 2022, and an increase of $46.5 million from the three months ended June 30, 2021. Pre-tax income for the Consumer Related segment for the six months ended June 30, 2022 totaled $287.1 million, an increase of $102.0 million compared to the six months ended June 30, 2021.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2022 financial results at 12:00 p.m. ET on Friday, July 22, 2022. Participants may access the call by dialing 1-888-396-8049 and using the conference ID 57514725 or via live audio webcast using the website link https://event.on24.com/wcc/r/3825847/3012FB8A58AE72C7E9C5700F7983D54D. 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 July 22nd through 11:00 p.m. ET August 22nd by dialing 1-877-674-7070, using passcode 514725#.

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 $60 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. The company is #2 best-performing of the 50 largest public U.S. banks in the S&P Global Market Intelligence listing for 2021, ranks high year after year on the Forbes list of “America’s Best Banks” and was named #1 Best Emerging Regional Bank per Bank Director’s 2022 RankingBanking study. Its primary subsidiary, Western Alliance Bank, Member FDIC, helps clients realize their ambitions with teams of experienced bankers and mortgage experts who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities, including 24/7 funds transfer and other blockchain-based offerings. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking brands and has 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 June 30,

 

 

 

 

 

 

 

 

2022

 

2021

 

Change %

 

 

 

 

 

 

 

 

(in millions)

 

 

Total assets

 

 

 

 

 

 

 

$

66,055

 

$

49,069

 

 

34.6

%

Loans held for sale

 

 

 

 

 

 

 

 

3,010

 

 

4,465

 

 

(32.6

)

HFI loans, net of deferred fees

 

 

 

 

 

 

 

 

48,365

 

 

30,027

 

 

61.1

 

Investment securities

 

 

 

 

 

 

 

 

8,802

 

 

7,845

 

 

12.2

 

Total deposits

 

 

 

 

 

 

 

 

53,712

 

 

41,921

 

 

28.1

 

Qualifying debt

 

 

 

 

 

 

 

 

891

 

 

1,140

 

 

(21.8

)

Stockholders' equity

 

 

 

 

 

 

 

 

4,959

 

 

4,035

 

 

22.9

 

Tangible common equity, net of tax (1)

 

 

 

 

 

 

 

 

3,971

 

 

3,426

 

 

15.9

 

 

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2022

 

2021

 

Change %

 

2022

 

2021

 

Change %

 

 

(in millions, except per share data)

 

 

 

(in millions, except per share data)

 

 

Interest income

 

$

579.6

 

$

398.5

 

 

45.4

%

 

$

1,064.1

 

$

732.6

 

 

45.2

%

Interest expense

 

 

54.6

 

 

28.0

 

 

95.0

 

 

 

89.6

 

 

44.8

 

 

NM

 

Net interest income

 

 

525.0

 

 

370.5

 

 

41.7

 

 

 

974.5

 

 

687.8

 

 

41.7

 

Provision for (recovery of) credit losses

 

 

27.5

 

 

(14.5

)

 

NM

 

 

 

36.5

 

 

(46.9

)

 

NM

 

Net interest income after provision for credit losses

 

 

497.5

 

 

385.0

 

 

29.2

 

 

 

938.0

 

 

734.7

 

 

27.7

 

Non-interest income

 

 

95.0

 

 

136.0

 

 

(30.1

)

 

 

201.3

 

 

155.7

 

 

29.3

 

Non-interest expense

 

 

268.9

 

 

244.8

 

 

9.8

 

 

 

517.5

 

 

379.8

 

 

36.3

 

Income before income taxes

 

 

323.6

 

 

276.2

 

 

17.2

 

 

 

621.8

 

 

510.6

 

 

21.8

 

Income tax expense

 

 

63.4

 

 

52.4

 

 

21.0

 

 

 

121.5

 

 

94.3

 

 

28.8

 

Net income

 

 

260.2

 

 

223.8

 

 

16.3

 

 

 

500.3

 

 

416.3

 

 

20.2

 

Dividends on preferred stock

 

 

3.2

 

 

 

 

 

 

 

6.4

 

 

 

 

 

Net income available to common stockholders

 

$

257.0

 

$

223.8

 

 

14.8

 

 

$

493.9

 

$

416.3

 

 

18.6

 

Diluted earnings per common share

 

$

2.39

 

$

2.17

 

 

10.1

 

 

$

4.61

 

$

4.07

 

 

13.3

 

(1)

 

See Reconciliation of Non-GAAP Financial Measures.

NM

 

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At or For the Three Months Ended June 30,

 

For the Six Months Ended June 30,

 

 

2022

 

2021

 

Change %

 

2022

 

2021

 

Change %

Diluted earnings per common share

 

$

2.39

 

$

2.17

 

10.1

%

 

$

4.61

 

$

4.07

 

13.3

%

Book value per common share

 

 

43.07

 

 

38.70

 

11.3

 

 

 

 

 

 

 

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

 

 

36.67

 

 

32.86

 

11.6

 

 

 

 

 

 

 

Average common shares outstanding

(in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

107.3

 

 

102.7

 

4.5

 

 

 

106.7

 

 

101.8

 

4.8

 

Diluted

 

 

107.7

 

 

103.4

 

4.2

 

 

 

107.1

 

 

102.4

 

4.6

 

Common shares outstanding

 

 

108.3

 

 

104.2

 

3.9

 

 

 

 

 

 

 

Selected Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

1.62

%

 

1.86

%

 

(12.9

) %

 

1.63

%

 

1.89

%

 

(13.8

) %

Return on average tangible common equity (1, 2)

 

25.6

 

 

28.1

 

 

(8.9

)

 

24.8

 

 

26.2

 

 

(5.4

)

Net interest margin (2)

 

3.54

 

 

3.51

 

 

0.9

 

 

3.44

 

 

3.45

 

 

(0.3

)

Efficiency ratio - tax equivalent basis (1)

 

42.8

 

 

47.5

 

 

(9.9

)

 

43.4

 

 

44.2

 

 

(1.8

)

Loan to deposit ratio

 

90.0

 

 

71.6

 

 

25.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans outstanding (2)

 

0.01

%

 

0.00

%

 

NM

 

 

0.01

%

 

0.01

%

 

%

Nonaccrual loans to funded HFI loans

 

0.18

 

 

0.32

 

 

(43.8

)

 

 

 

 

 

 

Nonaccrual loans and repossessed assets to total assets

 

0.15

 

 

0.20

 

 

(25.0

)

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans

 

0.56

 

 

0.78

 

 

(28.2

)

 

 

 

 

 

 

Allowance for loan losses to nonaccrual HFI loans

 

322

 

 

242

 

 

33.2

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

Jun 30, 2022

 

Mar 31, 2022

 

Jun 30, 2021

Tangible common equity (1)

 

6.1

%

 

6.7

%

 

7.1

%

Common Equity Tier 1 (3)

 

9.0

 

 

9.0

 

 

9.2

 

Tier 1 Leverage ratio (3)

 

7.6

 

 

8.0

 

 

7.3

 

Tier 1 Capital (3)

 

9.7

 

 

9.8

 

 

9.4

 

Total Capital (3)

 

11.9

 

 

12.0

 

 

12.8

 

(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 June 30, 2022 are preliminary.

NM

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

2022

 

2021

 

 

(dollars in millions, except per share data)

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

Loans

 

$

516.6

 

 

$

353.8

 

 

$

951.3

 

 

$

652.2

 

Investment securities

 

 

59.3

 

 

 

43.5

 

 

 

107.3

 

 

 

77.5

 

Other

 

 

3.7

 

 

 

1.2

 

 

 

5.5

 

 

 

2.9

 

Total interest income

 

 

579.6

 

 

 

398.5

 

 

 

1,064.1

 

 

 

732.6

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

27.1

 

 

 

11.6

 

 

 

41.2

 

 

 

22.4

 

Qualifying debt

 

 

8.6

 

 

 

7.2

 

 

 

17.0

 

 

 

13.1

 

Borrowings

 

 

18.9

 

 

 

9.2

 

 

 

31.4

 

 

 

9.3

 

Total interest expense

 

 

54.6

 

 

 

28.0

 

 

 

89.6

 

 

 

44.8

 

Net interest income

 

 

525.0

 

 

 

370.5

 

 

 

974.5

 

 

 

687.8

 

Provision for (recovery of) credit losses

 

 

27.5

 

 

 

(14.5

)

 

 

36.5

 

 

 

(46.9

)

Net interest income after provision for credit losses

 

 

497.5

 

 

 

385.0

 

 

 

938.0

 

 

 

734.7

 

Non-interest income:

 

 

 

 

 

 

 

 

Net loan servicing revenue (expense)

 

 

45.4

 

 

 

(20.8

)

 

 

86.5

 

 

 

(20.8

)

Net gain on loan origination and sale activities

 

 

27.2

 

 

 

132.0

 

 

 

64.1

 

 

 

132.0

 

Gain on recovery from credit guarantees

 

 

9.0

 

 

 

 

 

 

11.3

 

 

 

 

Service charges and fees

 

 

7.6

 

 

 

7.4

 

 

 

14.6

 

 

 

14.1

 

Commercial banking related income

 

 

5.8

 

 

 

4.5

 

 

 

10.9

 

 

 

7.9

 

Income from equity investments

 

 

5.2

 

 

 

6.8

 

 

 

9.3

 

 

 

14.4

 

(Loss) gain on sales of investment securities

 

 

(0.2

)

 

 

 

 

 

6.7

 

 

 

0.1

 

Fair value (loss) gain adjustments on assets measured at fair value, net

 

 

(10.0

)

 

 

3.2

 

 

 

(16.6

)

 

 

1.7

 

Other

 

 

5.0

 

 

 

2.9

 

 

 

14.5

 

 

 

6.3

 

Total non-interest income

 

 

95.0

 

 

 

136.0

 

 

 

201.3

 

 

 

155.7

 

Non-interest expenses:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

139.0

 

 

 

128.9

 

 

 

277.3

 

 

 

212.6

 

Legal, professional, and directors' fees

 

 

25.1

 

 

 

14.0

 

 

 

49.1

 

 

 

24.1

 

Data processing

 

 

19.7

 

 

 

15.0

 

 

 

37.3

 

 

 

24.9

 

Deposit costs

 

 

18.1

 

 

 

7.1

 

 

 

27.4

 

 

 

13.4

 

Loan servicing expenses

 

 

14.7

 

 

 

22.3

 

 

 

25.5

 

 

 

22.3

 

Occupancy

 

 

13.0

 

 

 

10.4

 

 

 

25.8

 

 

 

19.0

 

Insurance

 

 

6.9

 

 

 

5.5

 

 

 

14.1

 

 

 

9.7

 

Loan acquisition and origination expenses

 

 

6.4

 

 

 

10.5

 

 

 

12.9

 

 

 

10.5

 

Business development and marketing

 

 

5.4

 

 

 

3.2

 

 

 

9.8

 

 

 

4.6

 

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

 

 

(0.3

)

 

 

(1.5

)

 

 

(0.2

)

 

 

(1.8

)

Acquisition and restructure expenses

 

 

 

 

 

15.7

 

 

 

0.4

 

 

 

16.1

 

Other

 

 

20.9

 

 

 

13.7

 

 

 

38.1

 

 

 

24.4

 

Total non-interest expense

 

 

268.9

 

 

 

244.8

 

 

 

517.5

 

 

 

379.8

 

Income before income taxes

 

 

323.6

 

 

 

276.2

 

 

 

621.8

 

 

 

510.6

 

Income tax expense

 

 

63.4

 

 

 

52.4

 

 

 

121.5

 

 

 

94.3

 

Net income

 

 

260.2

 

 

 

223.8

 

 

 

500.3

 

 

 

416.3

 

Dividends on preferred stock

 

 

3.2

 

 

 

 

 

 

6.4

 

 

 

 

Net income available to common stockholders

 

$

257.0

 

 

$

223.8

 

 

$

493.9

 

 

$

416.3

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted shares

 

 

107.7

 

 

 

103.4

 

 

 

107.1

 

 

 

102.4

 

Diluted earnings per share

 

$

2.39

 

 

$

2.17

 

 

$

4.61

 

 

$

4.07

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

 

 

 

 

Three Months Ended

 

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

Jun 30, 2021

 

 

(in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

516.6

 

 

$

434.7

 

 

$

438.6

 

 

$

398.0

 

 

$

353.8

 

Investment securities

 

 

59.3

 

 

 

48.0

 

 

 

43.7

 

 

 

43.5

 

 

 

43.5

 

Other

 

 

3.7

 

 

 

1.8

 

 

 

1.0

 

 

 

1.3

 

 

 

1.2

 

Total interest income

 

 

579.6

 

 

 

484.5

 

 

 

483.3

 

 

 

442.8

 

 

 

398.5

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

27.1

 

 

 

14.1

 

 

 

12.8

 

 

 

12.3

 

 

 

11.6

 

Qualifying debt

 

 

8.6

 

 

 

8.4

 

 

 

9.2

 

 

 

10.8

 

 

 

7.2

 

Borrowings

 

 

18.9

 

 

 

12.5

 

 

 

10.7

 

 

 

9.3

 

 

 

9.2

 

Total interest expense

 

 

54.6

 

 

 

35.0

 

 

 

32.7

 

 

 

32.4

 

 

 

28.0

 

Net interest income

 

 

525.0

 

 

 

449.5

 

 

 

450.6

 

 

 

410.4

 

 

 

370.5

 

Provision for (recovery of) credit losses

 

 

27.5

 

 

 

9.0

 

 

 

13.2

 

 

 

12.3

 

 

 

(14.5

)

Net interest income after provision for credit losses

 

 

497.5

 

 

 

440.5

 

 

 

437.4

 

 

 

398.1

 

 

 

385.0

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Net loan servicing revenue (expense)

 

 

45.4

 

 

 

41.1

 

 

 

2.3

 

 

 

2.2

 

 

 

(20.8

)

Net gain on loan origination and sale activities

 

 

27.2

 

 

 

36.9

 

 

 

73.2

 

 

 

121.0

 

 

 

132.0

 

Gain on recovery from credit guarantees

 

 

9.0

 

 

 

2.3

 

 

 

7.2

 

 

 

 

 

 

 

Service charges and fees

 

 

7.6

 

 

 

7.0

 

 

 

7.1

 

 

 

7.1

 

 

 

7.4

 

Commercial banking related income

 

 

5.8

 

 

 

5.1

 

 

 

4.9

 

 

 

4.6

 

 

 

4.5

 

Income from equity investments

 

 

5.2

 

 

 

4.1

 

 

 

5.2

 

 

 

2.5

 

 

 

6.8

 

(Loss) gain on sales of investment securities

 

 

(0.2

)

 

 

6.9

 

 

 

8.3

 

 

 

 

 

 

 

Fair value (loss) gain adjustments on assets measured at fair value, net

 

 

(10.0

)

 

 

(6.6

)

 

 

(0.8

)

 

 

(2.2

)

 

 

3.2

 

Other

 

 

5.0

 

 

 

9.5

 

 

 

3.0

 

 

 

2.9

 

 

 

2.9

 

Total non-interest income

 

 

95.0

 

 

 

106.3

 

 

 

110.4

 

 

 

138.1

 

 

 

136.0

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

139.0

 

 

 

138.3

 

 

 

120.6

 

 

 

133.5

 

 

 

128.9

 

Legal, professional, and directors' fees

 

 

25.1

 

 

 

24.0

 

 

 

20.8

 

 

 

13.7

 

 

 

14.0

 

Data processing

 

 

19.7

 

 

 

17.6

 

 

 

17.9

 

 

 

15.4

 

 

 

15.0

 

Deposit costs

 

 

18.1

 

 

 

9.3

 

 

 

9.1

 

 

 

7.3

 

 

 

7.1

 

Loan servicing expenses

 

 

14.7

 

 

 

10.8

 

 

 

15.6

 

 

 

15.6

 

 

 

22.3

 

Occupancy

 

 

13.0

 

 

 

12.8

 

 

 

12.4

 

 

 

12.4

 

 

 

10.4

 

Insurance

 

 

6.9

 

 

 

7.2

 

 

 

7.1

 

 

 

6.2

 

 

 

5.5

 

Loan acquisition and origination expenses

 

 

6.4

 

 

 

6.5

 

 

 

8.6

 

 

 

9.7

 

 

 

10.5

 

Business development and marketing

 

 

5.4

 

 

 

4.4

 

 

 

6.1

 

 

 

2.8

 

 

 

3.2

 

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

 

 

(0.3

)

 

 

0.1

 

 

 

(0.4

)

 

 

(1.3

)

 

 

(1.5

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

5.9

 

 

 

 

 

 

 

Acquisition and restructure expenses (recoveries)

 

 

 

 

 

0.4

 

 

 

(3.2

)

 

 

2.4

 

 

 

15.7

 

Other

 

 

20.9

 

 

 

17.2

 

 

 

17.3

 

 

 

16.1

 

 

 

13.7

 

Total non-interest expense

 

 

268.9

 

 

 

248.6

 

 

 

237.8

 

 

 

233.8

 

 

 

244.8

 

Income before income taxes

 

 

323.6

 

 

 

298.2

 

 

 

310.0

 

 

 

302.4

 

 

 

276.2

 

Income tax expense

 

 

63.4

 

 

 

58.1

 

 

 

64.0

 

 

 

65.5

 

 

 

52.4

 

Net income

 

 

260.2

 

 

 

240.1

 

 

 

246.0

 

 

 

236.9

 

 

 

223.8

 

Dividends on preferred stock

 

 

3.2

 

 

 

3.2

 

 

 

3.5

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

257.0

 

 

$

236.9

 

 

$

242.5

 

 

$

236.9

 

 

$

223.8

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Diluted shares

 

 

107.7

 

 

 

106.6

 

 

 

104.5

 

 

 

103.9

 

 

 

103.4

 

Diluted earnings per share

 

$

2.39

 

 

$

2.22

 

 

$

2.32

 

 

$

2.28

 

 

$

2.17

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

 

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

Jun 30, 2021

 

 

(in millions)

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,886

 

 

$

2,602

 

 

$

516

 

 

$

918

 

 

$

3,396

 

Investment securities

 

 

8,802

 

 

 

8,277

 

 

 

7,541

 

 

 

7,696

 

 

 

7,845

 

Loans held for sale

 

 

3,010

 

 

 

4,762

 

 

 

5,635

 

 

 

6,534

 

 

 

4,465

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

20,754

 

 

 

17,862

 

 

 

18,297

 

 

 

16,525

 

 

 

14,284

 

Commercial real estate - non-owner occupied

 

 

7,775

 

 

 

6,849

 

 

 

6,526

 

 

 

5,844

 

 

 

5,696

 

Commercial real estate - owner occupied

 

 

1,848

 

 

 

1,805

 

 

 

1,898

 

 

 

1,996

 

 

 

2,028

 

Construction and land development

 

 

3,231

 

 

 

3,278

 

 

 

3,023

 

 

 

2,943

 

 

 

2,857

 

Residential real estate

 

 

14,701

 

 

 

11,270

 

 

 

9,282

 

 

 

7,453

 

 

 

5,121

 

Consumer

 

 

56

 

 

 

55

 

 

 

49

 

 

 

41

 

 

 

41

 

Loans, net of deferred fees

 

 

48,365

 

 

 

41,119

 

 

 

39,075

 

 

 

34,802

 

 

 

30,027

 

Allowance for loan losses

 

 

(273

)

 

 

(258

)

 

 

(252

)

 

 

(247

)

 

 

(233

)

Loans, net of deferred fees and allowance

 

 

48,092

 

 

 

40,861

 

 

 

38,823

 

 

 

34,555

 

 

 

29,794

 

Mortgage servicing rights

 

 

826

 

 

 

950

 

 

 

698

 

 

 

605

 

 

 

726

 

Premises and equipment, net

 

 

210

 

 

 

196

 

 

 

182

 

 

 

161

 

 

 

150

 

Operating lease right-of-use asset

 

 

136

 

 

 

142

 

 

 

133

 

 

 

106

 

 

 

95

 

Other assets acquired through foreclosure, net

 

 

12

 

 

 

12

 

 

 

12

 

 

 

12

 

 

 

4

 

Bank owned life insurance

 

 

180

 

 

 

179

 

 

 

180

 

 

 

179

 

 

 

178

 

Goodwill and other intangibles, net

 

 

695

 

 

 

698

 

 

 

635

 

 

 

608

 

 

 

611

 

Other assets

 

 

2,206

 

 

 

1,897

 

 

 

1,628

 

 

 

1,401

 

 

 

1,805

 

Total assets

 

$

66,055

 

 

$

60,576

 

 

$

55,983

 

 

$

52,775

 

 

$

49,069

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

23,721

 

 

$

23,520

 

 

$

21,353

 

 

$

21,058

 

 

$

20,106

 

Interest bearing:

 

 

 

 

 

 

 

 

 

 

Demand

 

 

8,387

 

 

 

8,268

 

 

 

6,924

 

 

 

4,955

 

 

 

4,188

 

Savings and money market

 

 

19,026

 

 

 

18,553

 

 

 

17,279

 

 

 

17,440

 

 

 

15,810

 

Certificates of deposit

 

 

2,578

 

 

 

1,818

 

 

 

2,056

 

 

 

1,830

 

 

 

1,817

 

Total deposits

 

 

53,712

 

 

 

52,159

 

 

 

47,612

 

 

 

45,283

 

 

 

41,921

 

Borrowings

 

 

5,210

 

 

 

833

 

 

 

1,502

 

 

 

1,003

 

 

 

615

 

Qualifying debt

 

 

891

 

 

 

893

 

 

 

896

 

 

 

1,065

 

 

 

1,140

 

Operating lease liability

 

 

151

 

 

 

155

 

 

 

143

 

 

 

115

 

 

 

102

 

Accrued interest payable and other liabilities

 

 

1,132

 

 

 

1,524

 

 

 

867

 

 

 

795

 

 

 

1,256

 

Total liabilities

 

 

61,096

 

 

 

55,564

 

 

 

51,020

 

 

 

48,261

 

 

 

45,034

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

 

 

 

Common stock and additional paid-in capital

 

 

1,990

 

 

 

1,979

 

 

 

1,879

 

 

 

1,610

 

 

 

1,603

 

Retained earnings

 

 

3,192

 

 

 

2,973

 

 

 

2,773

 

 

 

2,567

 

 

 

2,367

 

Accumulated other comprehensive (loss) income

 

 

(518

)

 

 

(235

)

 

 

16

 

 

 

42

 

 

 

65

 

Total stockholders' equity

 

 

4,959

 

 

 

5,012

 

 

 

4,963

 

 

 

4,514

 

 

 

4,035

 

Total liabilities and stockholders' equity

 

$

66,055

 

 

$

60,576

 

 

$

55,983

 

 

$

52,775

 

 

$

49,069

 

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

 

 

Three Months Ended

 

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

Jun 30, 2021

 

 

(in millions)

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

 

$

232.9

 

 

$

247.1

 

Provision for (recovery of) credit losses (1)

 

 

17.0

 

 

 

5.3

 

 

 

7.0

 

 

 

17.0

 

 

 

(14.1

)

Recoveries of loans previously charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.8

 

 

 

2.4

 

 

 

1.8

 

 

 

0.1

 

 

 

0.4

 

Commercial real estate - non-owner occupied

 

 

 

 

 

 

 

 

0.3

 

 

 

 

 

 

1.7

 

Commercial real estate - owner occupied

 

 

0.1

 

 

 

 

 

 

 

 

 

0.1

 

 

 

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

 

Residential real estate

 

 

0.1

 

 

 

 

 

 

0.4

 

 

 

 

 

 

0.1

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total recoveries

 

 

1.0

 

 

 

2.4

 

 

 

2.5

 

 

 

0.3

 

 

 

2.2

 

Loans charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

2.4

 

 

 

2.6

 

 

 

3.8

 

 

 

3.3

 

 

 

2.3

 

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

 

 

2.4

 

 

 

2.6

 

 

 

3.9

 

 

 

3.3

 

 

 

2.3

 

Net loan charge-offs

 

 

1.4

 

 

 

0.2

 

 

 

1.4

 

 

 

3.0

 

 

 

0.1

 

Balance, end of period

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

 

$

232.9

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for unfunded loan commitments

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

43.3

 

 

$

37.6

 

 

$

32.1

 

 

$

31.3

 

 

$

32.6

 

Provision for (recovery of) credit losses (1)

 

 

10.5

 

 

 

5.7

 

 

 

5.5

 

 

 

0.8

 

 

 

(1.3

)

Balance, end of period (2)

 

$

53.8

 

 

$

43.3

 

 

$

37.6

 

 

$

32.1

 

 

$

31.3

 

 

 

 

 

 

 

 

 

 

 

 

Components of the allowance for credit losses on loans

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

273.2

 

 

$

257.6

 

 

$

252.5

 

 

$

246.9

 

 

$

232.9

 

Allowance for unfunded loan commitments

 

 

53.8

 

 

 

43.3

 

 

 

37.6

 

 

 

32.1

 

 

 

31.3

 

Total allowance for credit losses on loans

 

$

327.0

 

 

$

300.9

 

 

$

290.1

 

 

$

279.0

 

 

$

264.2

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans - annualized

 

 

0.01

%

 

 

0.00

%

 

 

0.02

%

 

 

0.04

%

 

 

0.00

%

 

 

 

 

 

 

 

 

 

 

 

Allowance ratios

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans (3)

 

 

0.56

%

 

 

0.63

%

 

 

0.65

%

 

 

0.71

%

 

 

0.78

%

Allowance for credit losses to funded HFI loans (3)

 

 

0.68

 

 

 

0.73

 

 

 

0.74

 

 

 

0.80

 

 

 

0.88

 

Allowance for loan losses to nonaccrual HFI loans

 

 

322

 

 

 

283

 

 

 

348

 

 

 

316

 

 

 

242

 

Allowance for credit losses to nonaccrual HFI loans

 

 

386

 

 

 

331

 

 

 

400

 

 

 

357

 

 

 

274

 

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. There was no provision for credit losses on investment securities for the three months ended June 30, 2022. The allowance for credit losses on investment securities totaled $3 million as of June 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 June 30, 2022 related to an $11.1 billion pool of loans covered under four separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

 

 

Three Months Ended

 

 

Jun 30, 2022

 

Mar 31, 2022

 

Dec 31, 2021

 

Sep 30, 2021

 

Jun 30, 2021

 

 

(in millions)

Nonaccrual loans and repossessed assets

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

85

 

 

$

91

 

 

$

73

 

 

$

78

 

 

$

96

 

Nonaccrual loans to funded HFI loans

 

 

0.18

%

 

 

0.22

%

 

 

0.19

%

 

 

0.22

%

 

 

0.32

%

Repossessed assets

 

$

12

 

 

$

12

 

 

$

12

 

 

$

12

 

 

$

4

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.15

%

 

 

0.17

%

 

 

0.15

%

 

 

0.17

%

 

 

0.20

%

 

 

 

 

 

 

 

 

 

 

 

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)

 

$

117

 

 

$

58

 

 

$

53

 

 

$

24

 

 

$

10

 

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

 

 

0.24

%

 

 

0.14

%

 

 

0.13

%

 

 

0.07

%

 

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

Other credit quality metrics

 

 

 

 

 

 

 

 

 

 

Special mention loans

 

$

317

 

 

$

350

 

 

$

331

 

 

$

364

 

 

$

405

 

Special mention loans to funded HFI loans

 

 

0.66

%

 

 

0.85

%

 

 

0.85

%

 

 

1.05

%

 

 

1.35

%

 

 

 

 

 

 

 

 

 

 

 

Classified loans on accrual

 

$

232

 

 

$

253

 

 

$

216

 

 

$

175

 

 

$

138

 

Classified loans on accrual to funded HFI loans

 

 

0.48

%

 

 

0.61

%

 

 

0.55

%

 

 

0.50

%

 

 

0.46

%

Classified assets

 

$

346

 

 

$

365

 

 

$

301

 

 

$

265

 

 

$

239

 

Classified assets to total assets

 

 

0.52

%

 

 

0.60

%

 

 

0.54

%

 

 

0.50

%

 

 

0.49

%

(1)

Excludes government guaranteed residential mortgage loans of $555 million as of June 30, 2022.

(2)

Excludes government guaranteed residential mortgage loans of $161 million as of June 30, 2022.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

 

 

Three Months Ended

 

 

June 30, 2022

 

March 31, 2022

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

 

 

 

($ in millions)

 

 

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

4,333

 

 

$

43.1

 

3.99

%

 

$

6,521

 

 

$

50.4

 

3.14

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

19,576

 

 

 

205.6

 

4.27

 

 

 

17,487

 

 

 

165.9

 

3.91

 

CRE - non-owner occupied

 

 

7,152

 

 

 

83.1

 

4.67

 

 

 

6,690

 

 

 

73.2

 

4.44

 

CRE - owner occupied

 

 

1,836

 

 

 

22.7

 

5.05

 

 

 

1,859

 

 

 

22.8

 

5.07

 

Construction and land development

 

 

3,336

 

 

 

47.7

 

5.73

 

 

 

3,090

 

 

 

41.7

 

5.47

 

Residential real estate

 

 

13,698

 

 

 

113.8

 

3.33

 

 

 

10,384

 

 

 

80.2

 

3.13

 

Consumer

 

 

58

 

 

 

0.6

 

4.29

 

 

 

52

 

 

 

0.5

 

3.95

 

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

 

 

45,656

 

 

 

473.5

 

4.19

 

 

 

39,562

 

 

 

384.3

 

3.98

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,674

 

 

 

41.3

 

2.48

 

 

 

5,534

 

 

 

29.9

 

2.19

 

Securities - tax-exempt

 

 

2,017

 

 

 

18.0

 

4.53

 

 

 

2,136

 

 

 

18.1

 

4.29

 

Total securities (1)

 

 

8,691

 

 

 

59.3

 

2.94

 

 

 

7,670

 

 

 

48.0

 

2.77

 

Cash and other

 

 

1,650

 

 

 

3.7

 

0.91

 

 

 

2,058

 

 

 

1.8

 

0.36

 

Total interest earning assets

 

 

60,330

 

 

 

579.6

 

3.91

 

 

 

55,811

 

 

 

484.5

 

3.58

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

262

 

 

 

 

 

 

 

245

 

 

 

 

 

Allowance for credit losses

 

 

(266

)

 

 

 

 

 

 

(262

)

 

 

 

 

Bank owned life insurance

 

 

179

 

 

 

 

 

 

 

181

 

 

 

 

 

Other assets

 

 

3,766

 

 

 

 

 

 

 

3,299

 

 

 

 

 

Total assets

 

$

64,271

 

 

 

 

 

 

$

59,274

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,346

 

 

$

8.0

 

0.38

%

 

$

7,743

 

 

$

2.7

 

0.14

%

Savings and money market

 

 

18,771

 

 

 

16.5

 

0.35

 

 

 

18,131

 

 

 

9.6

 

0.21

 

Certificates of deposit

 

 

2,040

 

 

 

2.6

 

0.52

 

 

 

1,920

 

 

 

1.8

 

0.38

 

Total interest-bearing deposits

 

 

29,157

 

 

 

27.1

 

0.37

 

 

 

27,794

 

 

 

14.1

 

0.21

 

Short-term borrowings

 

 

2,917

 

 

 

8.6

 

1.19

 

 

 

1,150

 

 

 

1.7

 

0.62

 

Long-term debt

 

 

786

 

 

 

10.3

 

5.24

 

 

 

770

 

 

 

10.8

 

5.67

 

Qualifying debt

 

 

894

 

 

 

8.6

 

3.85

 

 

 

896

 

 

 

8.4

 

3.81

 

Total interest-bearing liabilities

 

 

33,754

 

 

 

54.6

 

0.65

 

 

 

30,610

 

 

 

35.0

 

0.46

 

Interest cost of funding earning assets

 

 

 

0.37

 

 

 

 

 

 

0.26

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

24,327

 

 

 

 

 

 

 

22,580

 

 

 

 

 

Other liabilities

 

 

1,169

 

 

 

 

 

 

 

1,095

 

 

 

 

 

Stockholders’ equity

 

 

5,021

 

 

 

 

 

 

 

4,989

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

64,271

 

 

 

 

 

 

$

59,274

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

525.0

 

3.54

%

 

 

 

$

449.5

 

3.32

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.2 million and $8.0 million for the three months ended June 30, 2022 and March 31, 2022, respectively.

(2)

Included in the yield computation are net loan fees of $36.4 million and $29.1 million for the three months ended June 30, 2022 and March 31, 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

 

 

June 30, 2022

 

June 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

 

$

4,333

 

 

$

43.1

 

3.99

%

 

$

5,347

 

 

$

42.7

 

3.21

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

19,576

 

 

 

205.6

 

4.27

 

 

 

13,897

 

 

 

148.2

 

4.37

 

CRE - non-owner-occupied

 

 

7,152

 

 

 

83.1

 

4.67

 

 

 

5,698

 

 

 

67.8

 

4.78

 

CRE - owner-occupied

 

 

1,836

 

 

 

22.7

 

5.05

 

 

 

2,025

 

 

 

24.1

 

4.88

 

Construction and land development

 

 

3,336

 

 

 

47.7

 

5.73

 

 

 

2,792

 

 

 

39.9

 

5.73

 

Residential real estate

 

 

13,698

 

 

 

113.8

 

3.33

 

 

 

3,748

 

 

 

30.7

 

3.29

 

Consumer

 

 

58

 

 

 

0.6

 

4.29

 

 

 

34

 

 

 

0.4

 

4.52

 

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

 

 

45,656

 

 

 

473.5

 

4.19

 

 

 

28,194

 

 

 

311.1

 

4.48

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,674

 

 

 

41.3

 

2.48

 

 

 

5,630

 

 

 

26.0

 

1.85

 

Securities - tax-exempt

 

 

2,017

 

 

 

18.0

 

4.53

 

 

 

2,166

 

 

 

17.5

 

4.07

 

Total securities (1)

 

 

8,691

 

 

 

59.3

 

2.94

 

 

 

7,796

 

 

 

43.5

 

2.47

 

Other

 

 

1,650

 

 

 

3.7

 

0.91

 

 

 

1,911

 

 

 

1.2

 

0.25

 

Total interest earning assets

 

 

60,330

 

 

 

579.6

 

3.91

 

 

 

43,248

 

 

 

398.5

 

3.77

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

262

 

 

 

 

 

 

 

458

 

 

 

 

 

Allowance for credit losses

 

 

(266

)

 

 

 

 

 

 

(257

)

 

 

 

 

Bank owned life insurance

 

 

179

 

 

 

 

 

 

 

178

 

 

 

 

 

Other assets

 

 

3,766

 

 

 

 

 

 

 

4,518

 

 

 

 

 

Total assets

 

$

64,271

 

 

 

 

 

 

$

48,145

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,346

 

 

$

8.0

 

0.38

%

 

$

4,370

 

 

$

1.5

 

0.14

%

Savings and money market accounts

 

 

18,771

 

 

 

16.5

 

0.35

 

 

 

15,168

 

 

 

8.0

 

0.21

 

Certificates of deposit

 

 

2,040

 

 

 

2.6

 

0.52

 

 

 

1,737

 

 

 

2.1

 

0.49

 

Total interest-bearing deposits

 

 

29,157

 

 

 

27.1

 

0.37

 

 

 

21,275

 

 

 

11.6

 

0.22

 

Short-term borrowings

 

 

2,917

 

 

 

8.6

 

1.19

 

 

 

1,506

 

 

 

4.5

 

1.21

 

Long-term debt

 

 

786

 

 

 

10.3

 

5.24

 

 

 

353

 

 

 

4.7

 

5.30

 

Qualifying debt

 

 

894

 

 

 

8.6

 

3.85

 

 

 

701

 

 

 

7.2

 

4.12

 

Total interest-bearing liabilities

 

 

33,754

 

 

 

54.6

 

0.65

 

 

 

23,835

 

 

 

28.0

 

0.47

 

Interest cost of funding earning assets

 

 

 

0.37

 

 

 

 

 

 

0.26

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

24,327

 

 

 

 

 

 

 

18,385

 

 

 

 

 

Other liabilities

 

 

1,169

 

 

 

 

 

 

 

2,140

 

 

 

 

 

Stockholders’ equity

 

 

5,021

 

 

 

 

 

 

 

3,785

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

64,271

 

 

 

 

 

 

$

48,145

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

525.0

 

3.54

%

 

 

 

$

370.5

 

3.51

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.2 million and $8.5 million for the three months ended June 30, 2022 and 2021, respectively.

(2)

Included in the yield computation are net loan fees of $36.4 million and $32.6 million for the three months ended June 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

 

 

Six Months Ended

 

 

June 30, 2022

 

June 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

 

$

5,421

 

 

$

93.6

 

3.48

%

 

$

2,688

 

 

$

42.7

 

3.21

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

18,537

 

 

 

371.5

 

4.10

 

 

 

13,925

 

 

 

299.1

 

4.43

 

CRE - non-owner occupied

 

 

6,922

 

 

 

156.2

 

4.56

 

 

 

5,674

 

 

 

132.9

 

4.73

 

CRE - owner occupied

 

 

1,847

 

 

 

45.5

 

5.06

 

 

 

2,059

 

 

 

48.5

 

4.86

 

Construction and land development

 

 

3,214

 

 

 

89.3

 

5.61

 

 

 

2,639

 

 

 

75.5

 

5.77

 

Residential real estate

 

 

12,050

 

 

 

194.1

 

3.25

 

 

 

3,131

 

 

 

52.7

 

3.39

 

Consumer

 

 

55

 

 

 

1.1

 

4.14

 

 

 

34

 

 

 

0.8

 

4.96

 

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

 

 

42,625

 

 

 

857.7

 

4.09

 

 

 

27,462

 

 

 

609.5

 

4.53

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

6,107

 

 

 

71.1

 

2.35

 

 

 

5,084

 

 

 

44.5

 

1.77

 

Securities - tax-exempt

 

 

2,076

 

 

 

36.2

 

4.41

 

 

 

2,074

 

 

 

33.0

 

4.03

 

Total securities (1)

 

 

8,183

 

 

 

107.3

 

2.86

 

 

 

7,158

 

 

 

77.5

 

2.42

 

Other

 

 

1,853

 

 

 

5.5

 

0.60

 

 

 

3,877

 

 

 

2.9

 

0.15

 

Total interest earning assets

 

 

58,082

 

 

 

1,064.1

 

3.75

 

 

 

41,185

 

 

 

732.6

 

3.67

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

254

 

 

 

 

 

 

 

313

 

 

 

 

 

Allowance for credit losses

 

 

(264

)

 

 

 

 

 

 

(273

)

 

 

 

 

Bank owned life insurance

 

 

180

 

 

 

 

 

 

 

177

 

 

 

 

 

Other assets

 

 

3,534

 

 

 

 

 

 

 

2,904

 

 

 

 

 

Total assets

 

$

61,786

 

 

 

 

 

 

$

44,306

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

8,046

 

 

$

10.7

 

0.27

%

 

$

4,139

 

 

$

2.8

 

0.14

%

Savings and money market accounts

 

 

18,453

 

 

 

26.1

 

0.29

 

 

 

14,584

 

 

 

15.1

 

0.21

 

Certificates of deposit

 

 

1,981

 

 

 

4.4

 

0.45

 

 

 

1,709

 

 

 

4.5

 

0.54

 

Total interest-bearing deposits

 

 

28,480

 

 

 

41.2

 

0.29

 

 

 

20,432

 

 

 

22.4

 

0.22

 

Short-term borrowings

 

 

2,038

 

 

 

10.4

 

1.03

 

 

 

769

 

 

 

4.6

 

1.21

 

Long-term debt

 

 

778

 

 

 

21.0

 

5.45

 

 

 

178

 

 

 

4.7

 

5.30

 

Qualifying debt

 

 

895

 

 

 

17.0

 

3.83

 

 

 

625

 

 

 

13.1

 

4.24

 

Total interest-bearing liabilities

 

 

32,191

 

 

 

89.6

 

0.56

 

 

 

22,004

 

 

 

44.8

 

0.41

 

Interest cost of funding earning assets

 

 

 

0.31

 

 

 

 

 

 

0.22

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

23,458

 

 

 

 

 

 

 

17,186

 

 

 

 

 

Other liabilities

 

 

1,132

 

 

 

 

 

 

 

1,460

 

 

 

 

 

Stockholders’ equity

 

 

5,005

 

 

 

 

 

 

 

3,656

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

61,786

 

 

 

 

 

 

$

44,306

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

974.5

 

3.44

%

 

 

 

$

687.8

 

3.45

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $16.2 million and $16.5 million for the six ended June 30, 2022 and 2021, respectively.

(2)

Included in the yield computation are net loan fees of $65.5 million for the six ended June 30, 2022 and 2021.

(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 June 30, 2022:

 

(dollars in millions)

Assets:

 

 

 

 

 

 

 

 

Cash, cash equivalents, and investment securities

 

$

10,688

 

 

$

15

 

 

$

 

 

$

10,673

 

Loans held for sale

 

 

3,010

 

 

 

 

 

 

3,010

 

 

 

 

Loans, net of deferred fees and costs

 

 

48,365

 

 

 

29,448

 

 

 

18,917

 

 

 

 

Less: allowance for credit losses

 

 

(273

)

 

 

(242

)

 

 

(31

)

 

 

 

Total loans

 

 

48,092

 

 

 

29,206

 

 

 

18,886

 

 

 

 

Other assets acquired through foreclosure, net

 

 

12

 

 

 

12

 

 

 

 

 

 

 

Goodwill and other intangible assets, net

 

 

695

 

 

 

294

 

 

 

401

 

 

 

 

Other assets

 

 

3,558

 

 

 

275

 

 

 

1,510

 

 

 

1,773

 

Total assets

 

$

66,055

 

 

$

29,802

 

 

$

23,807

 

 

$

12,446

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits

 

$

53,712

 

 

$

29,482

 

 

$

19,690

 

 

$

4,540

 

Borrowings and qualifying debt

 

 

6,101

 

 

 

29

 

 

 

356

 

 

 

5,716

 

Other liabilities

 

 

1,283

 

 

 

235

 

 

 

300

 

 

 

748

 

Total liabilities

 

 

61,096

 

 

 

29,746

 

 

 

20,346

 

 

 

11,004

 

Allocated equity:

 

 

4,959

 

 

 

2,842

 

 

 

1,852

 

 

 

265

 

Total liabilities and stockholders' equity

 

$

66,055

 

 

$

32,588

 

 

$

22,198

 

 

$

11,269

 

Excess funds provided (used)

 

 

 

 

 

2,786

 

 

 

(1,609

)

 

 

(1,177

)

 

 

 

 

 

 

 

 

 

No. of offices

 

 

60

 

 

 

50

 

 

 

8

 

 

 

2

 

No. of full-time equivalent employees

 

 

3,254

 

 

 

607

 

 

 

1,084

 

 

 

1,563

 

 

 

 

 

 

 

 

 

 

Income Statement: