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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 6/01/21 Western Alliance Bancorporation 8-K:7,9 6/01/21 12:6.9M Donnelley … Solutions/FA |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 28K 2: EX-99.1 Miscellaneous Exhibit HTML 65K 8: R1 Document and Entity Information HTML 50K 10: XML IDEA XML File -- Filing Summary XML 12K 7: XML XBRL Instance -- d153119d8k_htm XML 18K 9: EXCEL IDEA Workbook of Financial Reports XLSX 6K 4: EX-101.DEF XBRL Definitions -- wal-20210601_def XML 40K 5: EX-101.LAB XBRL Labels -- wal-20210601_lab XML 66K 6: EX-101.PRE XBRL Presentations -- wal-20210601_pre XML 42K 3: EX-101.SCH XBRL Schema -- wal-20210601 XSD 15K 11: JSON XBRL Instance as JSON Data -- MetaLinks 14± 22K 12: ZIP XBRL Zipped Folder -- 0001193125-21-177701-xbrl Zip 25K
| EX-99.1 |
Exhibit 99.1 INVESTOR CALL PRESENTATION JUNE 1, 2021Exhibit 99.1 INVESTOR CALL PRESENTATION JUNE 1, 2021
Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends, future capital ratios, the impact of the AmeriHome acquisition, and the impact of the COVID-19 pandemic and related economic conditions. 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 Companys Annual Report on Form 10-K for the year ended December 31, 2020 and the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, in each case as filed with the Securities and Exchange Commission; the potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, including the distribution and effectiveness of COVID-19 vaccines, or other unusual and infrequently occurring events; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; our ability to successfully integrate and operate AmeriHome; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in managements estimate of the adequacy of the allowance for credit losses; our ability to successfully implement strategies to improve our capital ratios; legislative or regulatory changes including in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act of 2020 and the rules and regulations that may be promulgated thereunder; 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; managements estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Companys results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends, future capital ratios, the impact of the AmeriHome acquisition, and the impact of the COVID-19 pandemic and related economic conditions. 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 Companys Annual Report on Form 10-K for the year ended December 31, 2020 and the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, in each case as filed with the Securities and Exchange Commission; the potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, including the distribution and effectiveness of COVID-19 vaccines, or other unusual and infrequently occurring events; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; our ability to successfully integrate and operate AmeriHome; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in managements estimate of the adequacy of the allowance for credit losses; our ability to successfully implement strategies to improve our capital ratios; legislative or regulatory changes including in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act of 2020 and the rules and regulations that may be promulgated thereunder; 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; managements estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Companys results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Companys Quarterly Report on Form 10-Q for the quarter ended March 31, 2021. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2
Investment Highlights Seasoned Leadership Team Diversified Business Model Sustainable Across Market Cycles Diverse, High Quality Loan Portfolio Conservative Credit Culture Superior Asset Quality Stable, Low-Cost Deposit Franchise Well Capitalized with Excess Liquidity 3Investment Highlights Seasoned Leadership Team Diversified Business Model Sustainable Across Market Cycles Diverse, High Quality Loan Portfolio Conservative Credit Culture Superior Asset Quality Stable, Low-Cost Deposit Franchise Well Capitalized with Excess Liquidity 3
Management & Leadership Overview Kenneth A. Vecchione Dale M. Gibbons President & Chief Executive Officer Vice Chairman, Chief Financial Officer 13 total years at WAL 17 years at WAL 35+ years experience, including senior positions in 30+ years in commercial banking financial services Appointed CEO in April 2018 Ranked #1 Best CFO overall, among Mid-cap and Small-cap Has served on Western Alliance Board of Directors since 2007 and banks, by Institutional Investor magazine (2017 & 2018) was WALs COO from 2010 2013 CFO and Secretary of the Board at Zions Bancorporation (1996 Previously, served in senior leadership positions at MBNA Corp., 2001) Apollo Global Management, and Citi Card Services Tim R. Bruckner Timothy W. Boothe Chief Credit Officer Chief Operating Officer 4 years at WAL 5 years at WAL 15+ years in senior credit administration 20+ years in commercial banking Previously, served as Managing Director of Arizona Commercial Previously, served as President of Bridge Bank, a division of Banking at BMO Harris Bank and as a Senior Vice President in a Western Alliance Bank, from July 2015 through October 2019 variety of divisions including Manager of the Special Assets Also served as Chief Operating Officer of Bridge Bank from 2006 Division, President of M&I Business Credit and President of M&I until its acquisition by WAL in July 2015 Equipment Finance 4Management & Leadership Overview Kenneth A. Vecchione Dale M. Gibbons President & Chief Executive Officer Vice Chairman, Chief Financial Officer 13 total years at WAL 17 years at WAL 35+ years experience, including senior positions in 30+ years in commercial banking financial services Appointed CEO in April 2018 Ranked #1 Best CFO overall, among Mid-cap and Small-cap Has served on Western Alliance Board of Directors since 2007 and banks, by Institutional Investor magazine (2017 & 2018) was WALs COO from 2010 2013 CFO and Secretary of the Board at Zions Bancorporation (1996 Previously, served in senior leadership positions at MBNA Corp., 2001) Apollo Global Management, and Citi Card Services Tim R. Bruckner Timothy W. Boothe Chief Credit Officer Chief Operating Officer 4 years at WAL 5 years at WAL 15+ years in senior credit administration 20+ years in commercial banking Previously, served as Managing Director of Arizona Commercial Previously, served as President of Bridge Bank, a division of Banking at BMO Harris Bank and as a Senior Vice President in a Western Alliance Bank, from July 2015 through October 2019 variety of divisions including Manager of the Special Assets Also served as Chief Operating Officer of Bridge Bank from 2006 Division, President of M&I Business Credit and President of M&I until its acquisition by WAL in July 2015 Equipment Finance 4
Summary Western Alliance Bancorporation Overview National Commercial Bank Strategy NYSE Headquarters A national banking platform of specialized financial services paired with WAL Phoenix, AZ attractive regional markets provides complementary, diversified revenue streams and high operating leverage to produce superior financial returns 1 IPO Market Cap 2005 $10.3bn Serving a wide range of commercial and consumer related clients nationwide, from corporate and small business to public and non-profit Branches Employees borrowers 38 1,900+ Diversified business model provides flexibility to adapt business and capital Total Assets TCE/TA allocation in response to changing environment to sustain results across $43.4B 7.9% market cycles 2 NPAs/Assets Tier 1 Leverage 8.8% 0.27% FORBES S&P GLOBAL MI Institutional Investor LTM NCOs/ Total RBC #1 Best-Performing of the 50 One of the Most Honored Top 15 Best Banks in Avg. Loans 12.6% Largest Public U.S. Banks, America list 2016 - 2021 Companies in America, 2021 2020 0.07% Note: Financial data as of March 31, 2021 1)Market data as of May 28, 2021 5 2)Nonperforming assets includes nonaccrual loans and repossessed assetsSummary Western Alliance Bancorporation Overview National Commercial Bank Strategy NYSE Headquarters A national banking platform of specialized financial services paired with WAL Phoenix, AZ attractive regional markets provides complementary, diversified revenue streams and high operating leverage to produce superior financial returns 1 IPO Market Cap 2005 $10.3bn Serving a wide range of commercial and consumer related clients nationwide, from corporate and small business to public and non-profit Branches Employees borrowers 38 1,900+ Diversified business model provides flexibility to adapt business and capital Total Assets TCE/TA allocation in response to changing environment to sustain results across $43.4B 7.9% market cycles 2 NPAs/Assets Tier 1 Leverage 8.8% 0.27% FORBES S&P GLOBAL MI Institutional Investor LTM NCOs/ Total RBC #1 Best-Performing of the 50 One of the Most Honored Top 15 Best Banks in Avg. Loans 12.6% Largest Public U.S. Banks, America list 2016 - 2021 Companies in America, 2021 2020 0.07% Note: Financial data as of March 31, 2021 1)Market data as of May 28, 2021 5 2)Nonperforming assets includes nonaccrual loans and repossessed assets
Highlights Historical Financial Trends (10 years) Net Income ($ million) Consistently profitable organic growth Total Assets Organic growth comes with less $36.5 $507 $499 operational and execution risk $436 $26.8 Targeted opportunistic M&A $325 $23.1 $20.3 Tuck-in acquisitions where appropriate $260 $17.2 to supplement income diversity and $14.3 $194 reduce risk $148 $10.6 $9.3 $115 $7.6 $6.8 2 whole bank acquisitions and 3 $73 $31 business line acquisitions in past 10 years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Prudent capital management Total Risk Based Capital Ratio Deposits Efficient capital stack helps produce 1 industry leading returns $31.9 13.2% 13.3% 13.2% 12.8% 12.6% Cultural focus on credit 12.6% 12.5% 12.4% 12.2% $22.8 11.7% Consistent industry leading returns, efficiency $19.2 $17.0 ratio, net interest margin, and core non- $14.5 1 $12.0 interest-bearing deposits $8.9 $7.8 $6.5 $5.7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dollars in billions, unless otherw ise indicated 1) Peers consist of major exchange traded banks w ith total assets betw een $15B and $150B as of December 31, 2020, excluding target banks of pending acquisitions; S&P Global Market Intelligence 6Highlights Historical Financial Trends (10 years) Net Income ($ million) Consistently profitable organic growth Total Assets Organic growth comes with less $36.5 $507 $499 operational and execution risk $436 $26.8 Targeted opportunistic M&A $325 $23.1 $20.3 Tuck-in acquisitions where appropriate $260 $17.2 to supplement income diversity and $14.3 $194 reduce risk $148 $10.6 $9.3 $115 $7.6 $6.8 2 whole bank acquisitions and 3 $73 $31 business line acquisitions in past 10 years 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Prudent capital management Total Risk Based Capital Ratio Deposits Efficient capital stack helps produce 1 industry leading returns $31.9 13.2% 13.3% 13.2% 12.8% 12.6% Cultural focus on credit 12.6% 12.5% 12.4% 12.2% $22.8 11.7% Consistent industry leading returns, efficiency $19.2 $17.0 ratio, net interest margin, and core non- $14.5 1 $12.0 interest-bearing deposits $8.9 $7.8 $6.5 $5.7 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dollars in billions, unless otherw ise indicated 1) Peers consist of major exchange traded banks w ith total assets betw een $15B and $150B as of December 31, 2020, excluding target banks of pending acquisitions; S&P Global Market Intelligence 6
Q1 2021 Highlights Net Interest Drivers Spot Rate Spot Rate Total Investments and Yield Loans and Yield Loan yields declined 8bps following mix 2.47% 4.46% shift into residential loans and general 3.02% 2.98% 2.79% reduction in loan yields, partially offset by 2.61% 5.27% 2.37% 4.82% 4.59% 4.67% 4.47% increased PPP yields $7.9 $28.7 Yield on PPP loans of 4.19% $27.1 $26.0 $25.0 $23.2 (3.67% in Q4) $5.5 $4.7 $4.4 $4.2 QTD average balances for loans ($26.7bn) and investments ($6.5bn) lower than quarter-end levels Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Cost of interest-bearing deposits decreased 3bps due to repricing efforts in a lower rate environment, driving total cost Spot Rate Spot Rate Interest Bearing Deposits and Cost Deposits, Borrowings & Cost of Liability Funding 0.21% 0.20% of funds down 3bps to 0.19% 0.64% 0.30% 0.28% CD rates continue to decline with a 0.22% 0.19% 0.90% 0.22% 0.40% 0.31% 19bps decrease for the quarter 0.25% $17.5 Spot rate for cost of interest-bearing $13.4 $13.0 deposits of 21bps (11bps, including $20.9 $12.2 $9.9 $18.5 non-interest DDA) mainly driven by $15.8 $20.9 the roll-off of higher cost CDs $15.3 $18.5 $14.9 $14.9 $15.3 $15.8 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Non-Interest Bearing Deposits Total Borrowings Dollars in billions, unless otherw ise indicated 7Q1 2021 Highlights Net Interest Drivers Spot Rate Spot Rate Total Investments and Yield Loans and Yield Loan yields declined 8bps following mix 2.47% 4.46% shift into residential loans and general 3.02% 2.98% 2.79% reduction in loan yields, partially offset by 2.61% 5.27% 2.37% 4.82% 4.59% 4.67% 4.47% increased PPP yields $7.9 $28.7 Yield on PPP loans of 4.19% $27.1 $26.0 $25.0 $23.2 (3.67% in Q4) $5.5 $4.7 $4.4 $4.2 QTD average balances for loans ($26.7bn) and investments ($6.5bn) lower than quarter-end levels Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Cost of interest-bearing deposits decreased 3bps due to repricing efforts in a lower rate environment, driving total cost Spot Rate Spot Rate Interest Bearing Deposits and Cost Deposits, Borrowings & Cost of Liability Funding 0.21% 0.20% of funds down 3bps to 0.19% 0.64% 0.30% 0.28% CD rates continue to decline with a 0.22% 0.19% 0.90% 0.22% 0.40% 0.31% 19bps decrease for the quarter 0.25% $17.5 Spot rate for cost of interest-bearing $13.4 $13.0 deposits of 21bps (11bps, including $20.9 $12.2 $9.9 $18.5 non-interest DDA) mainly driven by $15.8 $20.9 the roll-off of higher cost CDs $15.3 $18.5 $14.9 $14.9 $15.3 $15.8 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Non-Interest Bearing Deposits Total Borrowings Dollars in billions, unless otherw ise indicated 7
Q1 2021 Highlights Profitability HighlightsΉ Top decile NIM, efficiency ratio, and ROAA PPNRΉ, Net Income & ROA Net Interest Income and NIM 2 among peers on an LTM basis $317.3 $314.8 2.69% $298.4 PPNR decreased $4.4 million from the 2.37% 2.24% $284.7 2.22% prior quarter, but increased $48.4 million or 2.03% $269.0 31.5% from the same period last year 2.22% 1.93% 4.22% 4.19% 1.22% 3.79% 3.84% 1.22% NIM decline mainly driven by excess 1.66% 4.22% 4.12% 3.37% 3.80% 3.71% liquidity and mix of interest earning assets 3.29% $206.4 $202.0 $204.9 $193.6 $192.5 Higher efficiency ratioΉ was driven by the $181.2 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 modest decline in non-interest income, a Net Interest Income NIM NIM ex. PPP $153.6 marginal increase in expenses, mainly $135.8 attributable to deposit costs, which were Non-Interest Expenses and Efficiency Ratio partially offset by higher net interest 42.9% $93.3 39.7% income 38.2% 39.1% $83.9 35.1% $135.0 $132.2 Low efficiency ratio leaves room for $120.5 $124.1 $114.8 investment in risk management and technology Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 PPNR Net Income PPNR ROA ROA Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Non-Interest Expenses Efficiency Ratio Dollars in millions 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 2)Peers consist of major exchange traded banks w ith total assets betw een $15B and $150B as of December 31, 2020, 8 excluding target banks of pending acquisitions; S&P Global Market IntelligenceQ1 2021 Highlights Profitability HighlightsΉ Top decile NIM, efficiency ratio, and ROAA PPNRΉ, Net Income & ROA Net Interest Income and NIM 2 among peers on an LTM basis $317.3 $314.8 2.69% $298.4 PPNR decreased $4.4 million from the 2.37% 2.24% $284.7 2.22% prior quarter, but increased $48.4 million or 2.03% $269.0 31.5% from the same period last year 2.22% 1.93% 4.22% 4.19% 1.22% 3.79% 3.84% 1.22% NIM decline mainly driven by excess 1.66% 4.22% 4.12% 3.37% 3.80% 3.71% liquidity and mix of interest earning assets 3.29% $206.4 $202.0 $204.9 $193.6 $192.5 Higher efficiency ratioΉ was driven by the $181.2 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 modest decline in non-interest income, a Net Interest Income NIM NIM ex. PPP $153.6 marginal increase in expenses, mainly $135.8 attributable to deposit costs, which were Non-Interest Expenses and Efficiency Ratio partially offset by higher net interest 42.9% $93.3 39.7% income 38.2% 39.1% $83.9 35.1% $135.0 $132.2 Low efficiency ratio leaves room for $120.5 $124.1 $114.8 investment in risk management and technology Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 PPNR Net Income PPNR ROA ROA Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Non-Interest Expenses Efficiency Ratio Dollars in millions 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 2)Peers consist of major exchange traded banks w ith total assets betw een $15B and $150B as of December 31, 2020, 8 excluding target banks of pending acquisitions; S&P Global Market Intelligence
Highlights Five Quarter Loan Growth and Composition Diverse mix of regionally-focused commercial banking divisions & nationally- $5.5 Billion Year-Over-Year Growth oriented specialized businesses Deep segment expertise fuels specialized Total Loans $23.1 $25.0 $26.0 $27.1 $28.7 banking services for attractive niche Qtr. Change +$2.0 +$1.9 +$1.0 +$1.0 +$1.7 markets across the country $3.1 10.9% National banking platform of specialized $2.5 $2.4 financial services support industry and $2.8 9.6% $2.5 $2.4 nationwide geographic diversification with $2.3 9.9% $2.3 $2.2 centralized, sophisticated management Commercial & $5.7 $2.1 8.9% 19.8% $5.7 Industrial $5.4 $5.3 Segment-focused model leads to superior 22.8% $5.3 $2.0 CRE, Owner 7.2% $2.2 client value, strong returns and effective $2.2 Occupied $2.3 company risk management 9.9% $2.3 CRE, Non-Owner Occupied Construction & 52.5% $15.1 $14.3 $13.7 Land $12.8 $11.2 48.5% Residential & Consumer 1 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Dollars in billions, unless otherw ise indicated 1)Includes Round 1 and Round 2 PPP loans of $1.5 billion as of March 31, 2021. During Q1-21: 9 PPP1 payoffs of $479 million and PPP2 originations of $560 millionHighlights Five Quarter Loan Growth and Composition Diverse mix of regionally-focused commercial banking divisions & nationally- $5.5 Billion Year-Over-Year Growth oriented specialized businesses Deep segment expertise fuels specialized Total Loans $23.1 $25.0 $26.0 $27.1 $28.7 banking services for attractive niche Qtr. Change +$2.0 +$1.9 +$1.0 +$1.0 +$1.7 markets across the country $3.1 10.9% National banking platform of specialized $2.5 $2.4 financial services support industry and $2.8 9.6% $2.5 $2.4 nationwide geographic diversification with $2.3 9.9% $2.3 $2.2 centralized, sophisticated management Commercial & $5.7 $2.1 8.9% 19.8% $5.7 Industrial $5.4 $5.3 Segment-focused model leads to superior 22.8% $5.3 $2.0 CRE, Owner 7.2% $2.2 client value, strong returns and effective $2.2 Occupied $2.3 company risk management 9.9% $2.3 CRE, Non-Owner Occupied Construction & 52.5% $15.1 $14.3 $13.7 Land $12.8 $11.2 48.5% Residential & Consumer 1 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Dollars in billions, unless otherw ise indicated 1)Includes Round 1 and Round 2 PPP loans of $1.5 billion as of March 31, 2021. During Q1-21: 9 PPP1 payoffs of $479 million and PPP2 originations of $560 million
Highlights Loan Composition by Classification & Borrower Type Loan portfolio has maintained low losses Classification Borrower Type throughout pandemic Trailing four quarters net charge-offs Residential & Consumer 10.9% were $19.0 million, or 7 bps Construction & Other Land Over 40% of portfolio in essentially no-to- C&D Warehouse 9.6% 0.5% 9.6% low-loss categories; Mortgage Warehouse, Lending 17.1% 1-4 Family Residential, Capital Call Residential C&I CRE, Non- 52.5% 10.6% Ow ner lending, Public Finance, Resort Finance Occupied and HOA 19.8% Municipal & Nonprofit CRE, Ow ner Occupied 5.8% 71% of CRE & CLD are in branch footprint Hotel 7.2% Franchise Finance Tech & 7.1% 16.3% of loans are to borrowers in Innovation Loan Distribution by Property Location 8.8% industries that are generally considered to be the most impacted by the COVID-19 California 39.5% CRE, Non- Owner pandemic. No deferrals in these categories Arizona 12.3% Occupied Nevada 9.5% 7.9% Hotel 12.6% CRE, New York 4.6% Other C&I Owner 4.0% Investor Dependent 21.5% Florida 3.8% Occupied 2.4% Retail 6.3% Texas 3.7% Pennsylvania 2.3% 2.0% Gaming Washington 1.9% Other 22.3% A majority of the Companys assets are floating rate loans, subject to caps or floors 10Highlights Loan Composition by Classification & Borrower Type Loan portfolio has maintained low losses Classification Borrower Type throughout pandemic Trailing four quarters net charge-offs Residential & Consumer 10.9% were $19.0 million, or 7 bps Construction & Other Land Over 40% of portfolio in essentially no-to- C&D Warehouse 9.6% 0.5% 9.6% low-loss categories; Mortgage Warehouse, Lending 17.1% 1-4 Family Residential, Capital Call Residential C&I CRE, Non- 52.5% 10.6% Ow ner lending, Public Finance, Resort Finance Occupied and HOA 19.8% Municipal & Nonprofit CRE, Ow ner Occupied 5.8% 71% of CRE & CLD are in branch footprint Hotel 7.2% Franchise Finance Tech & 7.1% 16.3% of loans are to borrowers in Innovation Loan Distribution by Property Location 8.8% industries that are generally considered to be the most impacted by the COVID-19 California 39.5% CRE, Non- Owner pandemic. No deferrals in these categories Arizona 12.3% Occupied Nevada 9.5% 7.9% Hotel 12.6% CRE, New York 4.6% Other C&I Owner 4.0% Investor Dependent 21.5% Florida 3.8% Occupied 2.4% Retail 6.3% Texas 3.7% Pennsylvania 2.3% 2.0% Gaming Washington 1.9% Other 22.3% A majority of the Companys assets are floating rate loans, subject to caps or floors 10
Highlights Net Interest Income and NIM Selected Portfolios Hotel Franchise Finance ($2.3bn) No losses were recognized within hotel Statistics Strong and sophisticated sponsor backing provides ongoing support franchise finance since the beginning of the Financial flexibility is maximized through deep industry expertise, strong Loan ACL / Loans: 2.26% pandemic operating partners, and conservative underwriting structure All hotel loans are paying as agreed 85% of the portfolio is with the top three Franchisors: Marriott, Hilton & Classified / Loans: 3.69% IHG (only 1 Flag represents more than 10% of Portfolio) 52% of Portfolio located in Top 25 MSAs (68.2% in Top 50 MSAs) Tech & Innovation: Investor Dependent ($1.1bn) Statistics Significant sponsor support continues Primarily focused on established growth companies with successful products and strong investor support, which provides greater flexibility Tech & Innovation in total accounted for Loan ACL / Loans: 1.89% Bridge Bank (acquired in Jun-15) has a long-standing, successful track-record approximately $760 million of deposit growth in in national technology lending dated back to 2001 Classified / Loans: 2.83% Q1 2021 Holistic banking relationship (TM, WC / AR lines, etc.) provides line-of-sight Since 2007, total warrant income >2x into business operations, performance against plan, and financial health cumulative NCOs CRE: Retail ($698mm) Statistics Primarily focus on local services with limited merchandise strip retail exposure Throughout 2020, WALs portfolio modestly Loan ACL / Loans: 1.16% National averages of rent collections for CRE Retail shopping center exceeded the national averages on rent tenants have increased from ~50% in May 2020 to ~90% in March 2021 collections Classified / Loans: 1.24% No destination mall exposure 11Highlights Net Interest Income and NIM Selected Portfolios Hotel Franchise Finance ($2.3bn) No losses were recognized within hotel Statistics Strong and sophisticated sponsor backing provides ongoing support franchise finance since the beginning of the Financial flexibility is maximized through deep industry expertise, strong Loan ACL / Loans: 2.26% pandemic operating partners, and conservative underwriting structure All hotel loans are paying as agreed 85% of the portfolio is with the top three Franchisors: Marriott, Hilton & Classified / Loans: 3.69% IHG (only 1 Flag represents more than 10% of Portfolio) 52% of Portfolio located in Top 25 MSAs (68.2% in Top 50 MSAs) Tech & Innovation: Investor Dependent ($1.1bn) Statistics Significant sponsor support continues Primarily focused on established growth companies with successful products and strong investor support, which provides greater flexibility Tech & Innovation in total accounted for Loan ACL / Loans: 1.89% Bridge Bank (acquired in Jun-15) has a long-standing, successful track-record approximately $760 million of deposit growth in in national technology lending dated back to 2001 Classified / Loans: 2.83% Q1 2021 Holistic banking relationship (TM, WC / AR lines, etc.) provides line-of-sight Since 2007, total warrant income >2x into business operations, performance against plan, and financial health cumulative NCOs CRE: Retail ($698mm) Statistics Primarily focus on local services with limited merchandise strip retail exposure Throughout 2020, WALs portfolio modestly Loan ACL / Loans: 1.16% National averages of rent collections for CRE Retail shopping center exceeded the national averages on rent tenants have increased from ~50% in May 2020 to ~90% in March 2021 collections Classified / Loans: 1.24% No destination mall exposure 11
Q1 2021 Highlights Asset Quality Classified Assets Special Mention Loans At quarter end, Total Deferrals were $68.5MM (24bps of Total Loans); nearly all $326 low LTV residential forbearances $298 1.83% $281 1.67% 1.65% 1.58% $247 $224 $171 $149 Total Classified Assets of $281 million $477 $474 $163 $451 (65bps to Total Assets) increased $57 $396 $150 $107 0.45% million in Q1 Classified Assets rose due to $140 $146 $115 $114 $86 remaining COVID impact to travel, $104 $4 $9 $11 $9 $2 leisure and entertainment sectors Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Borrowers remain stable, liquid and OREO Non-Performing Classified Accruing Loans Special Mention Loans SM to Funded supported 1 Loans Loans Non-Performing Loans + OREO of $118 million (27bps to Total Assets) Asset Quality Ratios an increase of $1 million in Q1 0.98% 0.94% 0.85% 0.65% 0.61% Over last 5+ years, less than 1% of Special Mention loans have migrated to lossh 0.47% 0.47% 0.33% 0.32% 0.27% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Classified Assets to Total Assets Non-Performing Loans + OREO to Total Assets Dollars in millions 1)Includes HFS Loans. 12Q1 2021 Highlights Asset Quality Classified Assets Special Mention Loans At quarter end, Total Deferrals were $68.5MM (24bps of Total Loans); nearly all $326 low LTV residential forbearances $298 1.83% $281 1.67% 1.65% 1.58% $247 $224 $171 $149 Total Classified Assets of $281 million $477 $474 $163 $451 (65bps to Total Assets) increased $57 $396 $150 $107 0.45% million in Q1 Classified Assets rose due to $140 $146 $115 $114 $86 remaining COVID impact to travel, $104 $4 $9 $11 $9 $2 leisure and entertainment sectors Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Borrowers remain stable, liquid and OREO Non-Performing Classified Accruing Loans Special Mention Loans SM to Funded supported 1 Loans Loans Non-Performing Loans + OREO of $118 million (27bps to Total Assets) Asset Quality Ratios an increase of $1 million in Q1 0.98% 0.94% 0.85% 0.65% 0.61% Over last 5+ years, less than 1% of Special Mention loans have migrated to lossh 0.47% 0.47% 0.33% 0.32% 0.27% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Classified Assets to Total Assets Non-Performing Loans + OREO to Total Assets Dollars in millions 1)Includes HFS Loans. 12
Q1 2021 Highlights Credit Losses and ACL Ratios Allowance for Credit Losses Gross Charge-offs and Recoveries Provision expense release of $32.4 million, driven by improved macroeconomic factors $6 Gross Charge Offs $7 $8.8 and loan growth in lower loss segments $44 $36 Recoveries $7 $37 $9 2 $3 $33 $5.7 Total Loan ACL / Funded Loans $30 $5.7 decreased 20bps to 0.97% in Q1 as a result of provision expense release $311 $311 $279 $2.1 $247 $235 Excluding PPP at 1.03% $0.1 Q4-19 at 0.84% (prior to the ($0.2) adoption of CECL) ($0.7) ($0.6) Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 ($1.8) 1 Allowance for Loan & Lease Losses Unfunded Loan Commits. Net Charge-Offs of $1.4 million, 2bps, ($3.3) HTM Securities compared to $3.9 million, 6bps, in Q4-20 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Estimated remaining average maturity of Loan ACL Adequacy Ratios loan portfolio is 2.5 years 142% 2.50% 120% 112% 112% 101% 1.37% 1.39% 1.50% 1.14% 1.17% 0.97% 0.50% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 2 Total Loan ACL /Non-Performing Loans + Classified Loans Total Loan ACL/Funded Loans Dollars in millions 1)Included as a component of other liabilities on the balance sheet. 2)Total Loan ACL includes allow ance for unfunded commitments. 13Q1 2021 Highlights Credit Losses and ACL Ratios Allowance for Credit Losses Gross Charge-offs and Recoveries Provision expense release of $32.4 million, driven by improved macroeconomic factors $6 Gross Charge Offs $7 $8.8 and loan growth in lower loss segments $44 $36 Recoveries $7 $37 $9 2 $3 $33 $5.7 Total Loan ACL / Funded Loans $30 $5.7 decreased 20bps to 0.97% in Q1 as a result of provision expense release $311 $311 $279 $2.1 $247 $235 Excluding PPP at 1.03% $0.1 Q4-19 at 0.84% (prior to the ($0.2) adoption of CECL) ($0.7) ($0.6) Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 ($1.8) 1 Allowance for Loan & Lease Losses Unfunded Loan Commits. Net Charge-Offs of $1.4 million, 2bps, ($3.3) HTM Securities compared to $3.9 million, 6bps, in Q4-20 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Estimated remaining average maturity of Loan ACL Adequacy Ratios loan portfolio is 2.5 years 142% 2.50% 120% 112% 112% 101% 1.37% 1.39% 1.50% 1.14% 1.17% 0.97% 0.50% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 2 Total Loan ACL /Non-Performing Loans + Classified Loans Total Loan ACL/Funded Loans Dollars in millions 1)Included as a component of other liabilities on the balance sheet. 2)Total Loan ACL includes allow ance for unfunded commitments. 13
Highlights Five Quarter Deposit Growth and Composition Quarter-over-quarter deposit growth of $6.5 billion driven by (in millions): $13.6 Billion Year-Over-Year Growth Non-Interest-Bearing DDA $4,080 Total Deposits $24.8 $27.5 $28.8 $31.9 $38.4 Savings and MMDA 2,863 Qtr. Change +$2.0 +$2.7 +$1.3 +$3.1 +$6.5 CDs 23 4.4% Offset by decrease in: $1.7 Interest-Bearing DDA (503) $1.7 Total $6,463 $15.3 39.8% $1.7 $2.0 $12.4 $2.4 9.6% $10.6 Non-Interest Year-over-year deposit growth of $13.6 $9.8 Bearing DDA $3.9 10.1% billion driven by (in millions): $9.0 36.2% Interest Bearing $4.4 DDA $3.5 Non-Interest Bearing DDA $7,656 $3.5 $3.5 Savings and 14.4% Savings and MMDA 6,298 MMDA 45.7% $17.5 Interest-Bearing DDA 315 $13.5 $13.0 CDs $12.2 39.8% $9.9 Offset by decrease in: CDs (706) Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Total $13,563 Dollars in billions, unless otherw ise indicated 14Highlights Five Quarter Deposit Growth and Composition Quarter-over-quarter deposit growth of $6.5 billion driven by (in millions): $13.6 Billion Year-Over-Year Growth Non-Interest-Bearing DDA $4,080 Total Deposits $24.8 $27.5 $28.8 $31.9 $38.4 Savings and MMDA 2,863 Qtr. Change +$2.0 +$2.7 +$1.3 +$3.1 +$6.5 CDs 23 4.4% Offset by decrease in: $1.7 Interest-Bearing DDA (503) $1.7 Total $6,463 $15.3 39.8% $1.7 $2.0 $12.4 $2.4 9.6% $10.6 Non-Interest Year-over-year deposit growth of $13.6 $9.8 Bearing DDA $3.9 10.1% billion driven by (in millions): $9.0 36.2% Interest Bearing $4.4 DDA $3.5 Non-Interest Bearing DDA $7,656 $3.5 $3.5 Savings and 14.4% Savings and MMDA 6,298 MMDA 45.7% $17.5 Interest-Bearing DDA 315 $13.5 $13.0 CDs $12.2 39.8% $9.9 Offset by decrease in: CDs (706) Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Total $13,563 Dollars in billions, unless otherw ise indicated 14
Highlights Interest Rate Profile Parallel Shift Rate Scenario Interest Rate Ramp Scenario Asset sensitive balance sheet poised for net interest income expansion in rising rate +9.2% +17.1% environment Net Interest Income Net Interest Income Conservative ALCO approach favors prudent management over interest rate +3.9% bets +6.1% $13.4Bn, or 77%, of variable rate loans have floors 0.0% 0.0% 97% of variable rate loans with floors (0.9%) (1.6%) are at floors Down 100 Base Up 100 Up 200 Down 100 Base Up 100 Up 200 Fixed rate loans are 34% of total loans Economic Value of Equity Variable rate loans at floors, when combined with fixed rate and long-term +19.8% Net Present Value adjustable rate loans, totals $24.1Bn +14.7% +8.8% 84% of loan portfolio is acting as +4.3% fixed rate 0.0% AmeriHome acquisition provides (7.3%) complementary income profile during flat to downward rate environments Down 100 Base Up 100 Up 200 Up 300 Up 400 Dollars in millions 15Highlights Interest Rate Profile Parallel Shift Rate Scenario Interest Rate Ramp Scenario Asset sensitive balance sheet poised for net interest income expansion in rising rate +9.2% +17.1% environment Net Interest Income Net Interest Income Conservative ALCO approach favors prudent management over interest rate +3.9% bets +6.1% $13.4Bn, or 77%, of variable rate loans have floors 0.0% 0.0% 97% of variable rate loans with floors (0.9%) (1.6%) are at floors Down 100 Base Up 100 Up 200 Down 100 Base Up 100 Up 200 Fixed rate loans are 34% of total loans Economic Value of Equity Variable rate loans at floors, when combined with fixed rate and long-term +19.8% Net Present Value adjustable rate loans, totals $24.1Bn +14.7% +8.8% 84% of loan portfolio is acting as +4.3% fixed rate 0.0% AmeriHome acquisition provides (7.3%) complementary income profile during flat to downward rate environments Down 100 Base Up 100 Up 200 Up 300 Up 400 Dollars in millions 15
Highlights Diversified Investment Portfolio >80% of the portfolio is investment grade Investment Type Investment Rating Of that >50% is AAA/AA+ or better BB+ and below Other AFS CRA Pref. stock 1% ~89% of the liquid portfolio is investment 1% 1% 2% BBB+ grade Treasuries to BBB- Unrated 0% 4% Of that >55% is AAA/AA+ or better 10% HTM AAA 9% 25% Tax-exempt CLO 17% Comm'l MBS A+ Low risk securities portfolio of ~$8 billion 12% 1% to A- with majority of balance made up of MBS 13% Corp. debt 85% of securities portfolio is rated 4% A- or better AA+ Resi. MBS to AA- AAA/ Priv. label 29% 16% AA+ CLO portfolio A rated or better resi. MBS 31% 24% Average rating of AA 16Highlights Diversified Investment Portfolio >80% of the portfolio is investment grade Investment Type Investment Rating Of that >50% is AAA/AA+ or better BB+ and below Other AFS CRA Pref. stock 1% ~89% of the liquid portfolio is investment 1% 1% 2% BBB+ grade Treasuries to BBB- Unrated 0% 4% Of that >55% is AAA/AA+ or better 10% HTM AAA 9% 25% Tax-exempt CLO 17% Comm'l MBS A+ Low risk securities portfolio of ~$8 billion 12% 1% to A- with majority of balance made up of MBS 13% Corp. debt 85% of securities portfolio is rated 4% A- or better AA+ Resi. MBS to AA- AAA/ Priv. label 29% 16% AA+ CLO portfolio A rated or better resi. MBS 31% 24% Average rating of AA 16
Business Overview AmeriHome Mortgage Company Acquisition AmeriHome is a leading national multi- On April 7, 2021, WAL completed the acquisition of Aris Mortgage Holding Company, LLC, the parent channel mortgage purchaser and servicer company for AmeriHome Mortgage Company, LLC for total consideration of $1.2 billion in cash 3rd largest correspondent mortgage acquirer with ~6% market share Strategic Rationale Founded in 2013, licensed in 49 states Leading scale position in complementary national platform HQ in Thousand Oaks, CA with locations 3rd largest correspondent mortgage producer delivers scalability, flexibility and consistent profitability in Dallas and Irvine Purpose-built proprietary platform with tech-enabled, scalable, low-cost operating model Geographically diversified B2B network and Revenue diversification across economic cycles Mortgage business provides natural macro offset to asset sensitivity to generate consistent growth MSR portfolio across market cycles Highly seasoned founder-led management Diversifies revenue mix and commercial-focused portfolio team with ~27 years of average experience Strong cultural fit WAL client for 4+ years with strong historical ties at the C-suite level Chief Executive Officer: Jim Furash All 11 founders still with the company (29 years of experience) Chief Investment Officer: Josh Adler Financial Rationale Business Diversification (25 years of experience) 2022E Op. Rev.² Rev Mix EPS accretion of over 30%Ή Growing Consumer direct channel protects NII Fee Income WAL Commercial 5% MSR values through recapture and provides WAL Cons. Related Projected incremental net income contribution of $159M and 31% AmeriHome optionality for lead generation $234M in 2021 and 2022, respectively, drives capital accumulation Increases fee income ratio from 5% to >30% 99% 95% 724 approved correspondent sellers provide 29% 69% 53% access to $635bn of LTM looks, Anticipated TBVPS earnback within one year 18% (representing ~19% of total market) 1% Significant funding synergies WAL AMH Pro Forma 1)Excludes merger costs, build out costs, and other one-time transaction related expenses 2)WAL Commercial and Consumer Related operating revenue split excluding AMH impact (75% / 25%) based on gross 17 loans breakdow n for both businesses as of December 31, 2020, applied to 2022E consensus operating revenue as of February 2021Business Overview AmeriHome Mortgage Company Acquisition AmeriHome is a leading national multi- On April 7, 2021, WAL completed the acquisition of Aris Mortgage Holding Company, LLC, the parent channel mortgage purchaser and servicer company for AmeriHome Mortgage Company, LLC for total consideration of $1.2 billion in cash 3rd largest correspondent mortgage acquirer with ~6% market share Strategic Rationale Founded in 2013, licensed in 49 states Leading scale position in complementary national platform HQ in Thousand Oaks, CA with locations 3rd largest correspondent mortgage producer delivers scalability, flexibility and consistent profitability in Dallas and Irvine Purpose-built proprietary platform with tech-enabled, scalable, low-cost operating model Geographically diversified B2B network and Revenue diversification across economic cycles Mortgage business provides natural macro offset to asset sensitivity to generate consistent growth MSR portfolio across market cycles Highly seasoned founder-led management Diversifies revenue mix and commercial-focused portfolio team with ~27 years of average experience Strong cultural fit WAL client for 4+ years with strong historical ties at the C-suite level Chief Executive Officer: Jim Furash All 11 founders still with the company (29 years of experience) Chief Investment Officer: Josh Adler Financial Rationale Business Diversification (25 years of experience) 2022E Op. Rev.² Rev Mix EPS accretion of over 30%Ή Growing Consumer direct channel protects NII Fee Income WAL Commercial 5% MSR values through recapture and provides WAL Cons. Related Projected incremental net income contribution of $159M and 31% AmeriHome optionality for lead generation $234M in 2021 and 2022, respectively, drives capital accumulation Increases fee income ratio from 5% to >30% 99% 95% 724 approved correspondent sellers provide 29% 69% 53% access to $635bn of LTM looks, Anticipated TBVPS earnback within one year 18% (representing ~19% of total market) 1% Significant funding synergies WAL AMH Pro Forma 1)Excludes merger costs, build out costs, and other one-time transaction related expenses 2)WAL Commercial and Consumer Related operating revenue split excluding AMH impact (75% / 25%) based on gross 17 loans breakdow n for both businesses as of December 31, 2020, applied to 2022E consensus operating revenue as of February 2021
Q1 2021 Highlights Capital Management Conservative credit culture affords Leverage Ratio CET1 Ratio shareholder friendly capital management 10.3% 10.2% 10.0% 10.0% 9.9% 10.2% Significant profitability and capital retention 9.5% 9.3% 9.2% 8.8% fund organic growth Recent stock performance enhanced efficient and opportunistic capital raise Continued focus on regulatory capital ratios enables continued growth Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Total Risk Based Capital Ratio Tangible Common Equity / Tangible Assets 13.4% 13.0% 12.6% 12.5% 12.3% 9.4% 8.9% 8.9% 8.6% 7.9% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 1)Refer to slide 2 for further discussion of Non-GAAP financial measures 18Q1 2021 Highlights Capital Management Conservative credit culture affords Leverage Ratio CET1 Ratio shareholder friendly capital management 10.3% 10.2% 10.0% 10.0% 9.9% 10.2% Significant profitability and capital retention 9.5% 9.3% 9.2% 8.8% fund organic growth Recent stock performance enhanced efficient and opportunistic capital raise Continued focus on regulatory capital ratios enables continued growth Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Total Risk Based Capital Ratio Tangible Common Equity / Tangible Assets 13.4% 13.0% 12.6% 12.5% 12.3% 9.4% 8.9% 8.9% 8.6% 7.9% Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 1)Refer to slide 2 for further discussion of Non-GAAP financial measures 18
Conclusion Seasoned Leadership Team Diversified Business Model Sustainable Across Market Cycles Diverse, High Quality Loan Portfolio Conservative Credit Culture Superior Asset Quality Stable, Low-Cost Deposit Franchise Well Capitalized with Excess Liquidity 19Conclusion Seasoned Leadership Team Diversified Business Model Sustainable Across Market Cycles Diverse, High Quality Loan Portfolio Conservative Credit Culture Superior Asset Quality Stable, Low-Cost Deposit Franchise Well Capitalized with Excess Liquidity 19
AppendixAppendix
Highlights 1st Quarter 2021 | Financial Highlights Earnings & Profitability Q1-21 Q4-20 Q1-20 $192.5 $193.6 $83.9 Net Income Net Income EPS $317.3 $314.8 $269.0 Net Interest Income 1 Pre Provision Net Revenue $202.0 $206.4 $153.6 $192.5 million $1.90 EPS $1.90 $1.93 $0.83 Net Interest Margin 3.37% 3.84% 4.22% 1 1 1 Efficiency Ratio 39.1% 38.2% 42.9% PPNR Growth ROTCE ROAA 1.93% 2.22% 1.22% Q1: $(4.4) million 24.2% 1 ROTCE 24.2% 25.7% 12.2% 31% YoY Balance Sheet & Capital $28,711 $27,053 $23,166 Total Loans, Gross Total Deposits $38,393 $31,931 $24,831 Loan Growth Deposit Growth CET1 Ratio 10.3% 9.9% 10.0% 1 Q1: $1.7 billion Q1: $6.5 billion TCE Ratio 7.9% 8.6% 9.4% 1 24% YoY 55% YoY Tangible Book Value per Share $33.02 $30.90 $26.73 Asset Quality 2 $(32.4) $(34.2) $51.2 (Recovery of) Provision for Credit losses Tangible Book NPAs / Net Charge-Offs (Recoveries) $1.4 $3.9 $(3.2) 1 Value PER SHARE Total Net Charge-Offs (Recoveries)/Avg. Loans 0.02% 0.06% (0.06)% $33.02 Total Loan ACL/Funded Loans 0.97% 1.17% 1.14% 0.27% 2 24% YoY NPAs /Total Assets 0.27% 0.32% 0.33% Dollars in millions, except EPS 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 2)Nonperforming assets includes nonaccrual loans and repossessed assets. 21Highlights 1st Quarter 2021 | Financial Highlights Earnings & Profitability Q1-21 Q4-20 Q1-20 $192.5 $193.6 $83.9 Net Income Net Income EPS $317.3 $314.8 $269.0 Net Interest Income 1 Pre Provision Net Revenue $202.0 $206.4 $153.6 $192.5 million $1.90 EPS $1.90 $1.93 $0.83 Net Interest Margin 3.37% 3.84% 4.22% 1 1 1 Efficiency Ratio 39.1% 38.2% 42.9% PPNR Growth ROTCE ROAA 1.93% 2.22% 1.22% Q1: $(4.4) million 24.2% 1 ROTCE 24.2% 25.7% 12.2% 31% YoY Balance Sheet & Capital $28,711 $27,053 $23,166 Total Loans, Gross Total Deposits $38,393 $31,931 $24,831 Loan Growth Deposit Growth CET1 Ratio 10.3% 9.9% 10.0% 1 Q1: $1.7 billion Q1: $6.5 billion TCE Ratio 7.9% 8.6% 9.4% 1 24% YoY 55% YoY Tangible Book Value per Share $33.02 $30.90 $26.73 Asset Quality 2 $(32.4) $(34.2) $51.2 (Recovery of) Provision for Credit losses Tangible Book NPAs / Net Charge-Offs (Recoveries) $1.4 $3.9 $(3.2) 1 Value PER SHARE Total Net Charge-Offs (Recoveries)/Avg. Loans 0.02% 0.06% (0.06)% $33.02 Total Loan ACL/Funded Loans 0.97% 1.17% 1.14% 0.27% 2 24% YoY NPAs /Total Assets 0.27% 0.32% 0.33% Dollars in millions, except EPS 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 2)Nonperforming assets includes nonaccrual loans and repossessed assets. 21
Q1 2021 Highlights Consolidated Balance Sheet Q1-21 Q4-20 Q1-20 Loans increased $1.7 billion, or 6.1%, Investments & Cash $13,235 $8,177 $4,771 1 over prior quarter and $5.5 billion, or Loans $28,711 1 $27,053 $23,166 23.9%, over prior year Allowance for Loan Losses (247) (279) (235) Deposits increased $6.5 billion, or 2 Other Assets 1,698 1,510 1,456 20.2%, over prior quarter and $13.6 Total Assets $43,397 $36,461 $29,158 billion, or 54.6%, over prior year Shareholders' Equity increased $299 3 2 Deposits $38,393 $31,931 $24,831 million over prior quarter and increased $713 million over prior year as Net Borrowings $565 $570 $721 Income growth was partially offset by Other Liabilities $726 $547 $606 share repurchases and dividends in Total Liabilities $39,684 $33,048 $26,158 2020 3 Shareholders Equity $3,713 $3,413 $3,000 During Q1-21, WAL completed a common stock offering of 2.3 Total Liabilities and Equity $43,397 $36,461 $29,158 million shares for an aggregate amount of $209 million 1 4 Tangible Book Value Per Share $33.02 $30.90 $26.73 1 Tangible Book Value/Share increased 4 $2.12, or 6.9%, over prior quarter and $6.29, or 23.5%, over prior year Dollars in millions 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 22Q1 2021 Highlights Consolidated Balance Sheet Q1-21 Q4-20 Q1-20 Loans increased $1.7 billion, or 6.1%, Investments & Cash $13,235 $8,177 $4,771 1 over prior quarter and $5.5 billion, or Loans $28,711 1 $27,053 $23,166 23.9%, over prior year Allowance for Loan Losses (247) (279) (235) Deposits increased $6.5 billion, or 2 Other Assets 1,698 1,510 1,456 20.2%, over prior quarter and $13.6 Total Assets $43,397 $36,461 $29,158 billion, or 54.6%, over prior year Shareholders' Equity increased $299 3 2 Deposits $38,393 $31,931 $24,831 million over prior quarter and increased $713 million over prior year as Net Borrowings $565 $570 $721 Income growth was partially offset by Other Liabilities $726 $547 $606 share repurchases and dividends in Total Liabilities $39,684 $33,048 $26,158 2020 3 Shareholders Equity $3,713 $3,413 $3,000 During Q1-21, WAL completed a common stock offering of 2.3 Total Liabilities and Equity $43,397 $36,461 $29,158 million shares for an aggregate amount of $209 million 1 4 Tangible Book Value Per Share $33.02 $30.90 $26.73 1 Tangible Book Value/Share increased 4 $2.12, or 6.9%, over prior quarter and $6.29, or 23.5%, over prior year Dollars in millions 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 22
Q1 2021 Highlights Quarterly Income Statement Q1-21 Q4-20 Q1-20 Net Interest Income increased $2.5 million, Interest Income $334.1 $331.6 $307.2 1 primarily as a result of loan growth, PPP Interest Expense (16.8) (16.8) (38.2) loan fee recognition and lower interest $317.3 1 $314.8 $269.0 Net Interest Income costs Investment Related Income and Gains $6.1 2 $11.1 $(7.5) Investment Related Income and Gains Other 13.6 12.7 12.6 2 consist of warrant income related to tech $19.7 $23.8 $5.1 Non-Interest Income lending of $7.3 million in Q1, offset by FMV $337.0 $338.6 $274.1 Net Revenue losses on equity securities Salaries and Employee Benefits (83.7) (83.1) (72.1) Deposit costs increased as lower rates Deposit Costs (6.3) 3 (4.5) (7.3) 3 were offset by higher average balances Gain (Loss) on OREO 0.3 0.2 1.4 Other (45.3) (44.8) (42.5) 4 Includes $0.4 million of merger expenses, 4 which is expected to increase in Q2 as $ (135.0) $ (132.2) $ (120.5) Non-Interest Expense AmeriHome integration efforts progress 1 $202.0 5 $206.4 $153.6 Pre-Provision Net Revenue 6 Recovery of (Provision for) Credit Losses 32.4 34.2 (51.2) PPNR decreased $4.4 million, primarily as 5 $234.4 $240.6 $102.4 Pre-Tax Income a result of an increase in expenses and reduced investment income and gains Income Tax (41.9) (47.0) (18.5) $192.5 $193.6 $83.9 Net Income Recovery of Credit Losses of $32.4 million 6 101.4 100.4 101.7 Diluted Shares as economic forecasts improved relative to st $1.90 $1.93 $0.83 Earnings Per Share December 31 and loan growth continued in segments with lower loss rates Dollars in millions, except EPS 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 23Q1 2021 Highlights Quarterly Income Statement Q1-21 Q4-20 Q1-20 Net Interest Income increased $2.5 million, Interest Income $334.1 $331.6 $307.2 1 primarily as a result of loan growth, PPP Interest Expense (16.8) (16.8) (38.2) loan fee recognition and lower interest $317.3 1 $314.8 $269.0 Net Interest Income costs Investment Related Income and Gains $6.1 2 $11.1 $(7.5) Investment Related Income and Gains Other 13.6 12.7 12.6 2 consist of warrant income related to tech $19.7 $23.8 $5.1 Non-Interest Income lending of $7.3 million in Q1, offset by FMV $337.0 $338.6 $274.1 Net Revenue losses on equity securities Salaries and Employee Benefits (83.7) (83.1) (72.1) Deposit costs increased as lower rates Deposit Costs (6.3) 3 (4.5) (7.3) 3 were offset by higher average balances Gain (Loss) on OREO 0.3 0.2 1.4 Other (45.3) (44.8) (42.5) 4 Includes $0.4 million of merger expenses, 4 which is expected to increase in Q2 as $ (135.0) $ (132.2) $ (120.5) Non-Interest Expense AmeriHome integration efforts progress 1 $202.0 5 $206.4 $153.6 Pre-Provision Net Revenue 6 Recovery of (Provision for) Credit Losses 32.4 34.2 (51.2) PPNR decreased $4.4 million, primarily as 5 $234.4 $240.6 $102.4 Pre-Tax Income a result of an increase in expenses and reduced investment income and gains Income Tax (41.9) (47.0) (18.5) $192.5 $193.6 $83.9 Net Income Recovery of Credit Losses of $32.4 million 6 101.4 100.4 101.7 Diluted Shares as economic forecasts improved relative to st $1.90 $1.93 $0.83 Earnings Per Share December 31 and loan growth continued in segments with lower loss rates Dollars in millions, except EPS 1)Refer to slide 2 for further discussion of Non-GAAP financial measures. 23
| This 8-K Filing | Date | Other Filings | ||
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| Filed on / For Period end: | 6/1/21 | |||
| 4/7/21 | 8-K | |||
| 3/31/21 | 10-Q | |||
| 12/31/20 | 10-K | |||
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