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Western Alliance Bancorporation Reports Third Quarter 2023 Financial Results

Western Alliance Bancorporation (NYSE:WAL):

THIRD QUARTER 2023 FINANCIAL RESULTS

Quarter Highlights:

 

Net income

 

Earnings per share

 

PPNR1

 

Net interest margin

 

Adjusted efficiency ratio1

 

Book value per

common share

 

 

 

 

 

 

 

 

 

 

$49.78

$216.6 million

 

$1.97

 

$290.0 million

 

3.67%

 

50.0%

 

$43.661, excluding

goodwill and intangibles

CEO COMMENTARY:

“Western Alliance continued to execute its balance sheet repositioning strategy and produced strengthening profitability in the third quarter, highlighted by net interest income growth and net interest margin expansion, while maintaining stable asset quality. Deposit momentum continued to improve liquidity levels and demonstrates the vibrancy of the franchise,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly deposit growth of $3.2 billion lowered our HFI loan-to-deposit ratio to 91%, with total insured and collateralized deposits representing 82% of deposits and available liquidity coverage of 293% of uninsured deposits. We achieved net income of $216.6 million and earnings per share of $1.97 for the third quarter 2023, which resulted in a return on tangible common equity1 of 17.3%. Tangible book value per share1 climbed 1.3% quarterly to $43.66, or 17.5% year-over-year, with a CET1 ratio of 10.6%.”

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

 

 

FINANCIAL HIGHLIGHTS:
  • Net income of $216.6 million and earnings per share of $1.97, compared to $215.7 million and $1.96, respectively
  • Net income of $216.6 million and earnings per share of $1.97, down 18.0% and 18.6%, from $264.0 million and $2.42, respectively
  • Net revenue of $716.2 million, an increase of 7.0%, or $46.9 million, compared to an increase in non-interest expenses of 10.0%, or $38.8 million
  • Net revenue of $716.2 million, an increase of 7.9%, or $52.3 million, compared to an increase in non-interest expenses of 39.4%, or $120.4 million
  • Pre-provision net revenue1 of $290.0 million, up $8.1 million from $281.9 million
  • Pre-provision net revenue1 of $290.0 million, down $68.1 million from $358.1 million
  • Effective tax rate of 22.1%, compared to 17.1%
  • Effective tax rate of 22.1%, compared to 19.9%

FINANCIAL POSITION RESULTS:

  • HFI loans of $49.4 billion, up $1.6 billion, or 3.3%, primarily due to $1.3 billion that was transferred from HFS
  • Decrease in HFI loans of $2.8 billion, or 5.3%
  • Total deposits of $54.3 billion, up $3.2 billion, or 6.4%
  • Decrease in total deposits of $1.3 billion, or 2.3%
  • Stockholders' equity of $5.7 billion, up $61 million
  • Increase in stockholders' equity of $725 million

LOANS AND ASSET QUALITY:

  • Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.35%, compared to 0.39%
  • Nonperforming assets to total assets of 0.35%, compared to 0.15%
  • Annualized net loan charge-offs to average loans outstanding of 0.07%, compared to 0.06%
  • Annualized net loan charge-offs (recoveries) to average loans outstanding of 0.07%, compared to (0.02)%

KEY PERFORMANCE METRICS:

  • Net interest margin of 3.67% increased from 3.42%
  • Net interest margin of 3.67% decreased from 3.78%
  • Return on average assets and on tangible common equity1 of 1.24% and 17.3%, compared to 1.23% and 18.2%, respectively
  • Return on average assets and on tangible common equity1 of 1.24% and 17.3%, compared to 1.53% and 24.9%, respectively
  • Tangible common equity ratio1 of 6.8%, compared to 7.0%
  • Tangible common equity ratio1 of 6.8% increased from 5.9%
  • CET 1 ratio of 10.6% increased from 10.1%
  • CET 1 ratio of 10.6% increased from 8.7%
  • Tangible book value per share1, net of tax, of $43.66, an increase of 1.3% from $43.09
  • Tangible book value per share1, net of tax, of $43.66, an increase of 17.5% from $37.16
  • Adjusted efficiency ratio1 of 50.0%, compared to 50.5%
  • Adjusted efficiency ratio1 of 50.0%, compared to 40.5%

Income Statement

Net interest income totaled $587.0 million in the third quarter 2023, an increase of $36.7 million, or 6.7%, from $550.3 million in the second quarter 2023, and a decrease of $15.1 million, or 2.5%, compared to the third quarter 2022. The increase in net interest income from the second quarter 2023 is due to a decrease in average short-term borrowings, combined with higher yields on HFI loans and was partially offset by an increase in deposit balances and rates. The decrease in net interest income from the third quarter 2022 was driven by an increase in both the balances and rates of borrowings and deposits, partially offset by higher yields on HFI loans.

The Company recorded a provision for credit losses of $12.1 million in the third quarter 2023, a decrease of $9.7 million from $21.8 million in the second quarter 2023, and a decrease of $16.4 million from $28.5 million in the third quarter 2022. The decrease in provision for credit losses during the third quarter 2023 is primarily due to modest improvement in economic forecasts and stable asset quality.

The Company’s net interest margin in the third quarter 2023 was 3.67%, an increase from 3.42% in the second quarter 2023, and a decrease from 3.78% in the third quarter 2022. A decrease in short-term borrowings and higher yields on HFI loans drove an increase in net interest margin from the second quarter 2023, with higher rates on short-term borrowings and on deposits partially offsetting this increase. The decrease in net interest margin from the third quarter 2022 was driven by higher average balances and rates on deposits and short-term borrowings.

Non-interest income was $129.2 million for the third quarter 2023, compared to $119.0 million for the second quarter 2023, and $61.8 million for the third quarter 2022. The $10.2 million increase in non-interest income for the second quarter 2023 was due to a $0.1 million gain on sale of securities in the third quarter compared to a loss of $13.6 million in the second quarter, combined with an increase in fair value gain adjustments of $5.1 million and a $3.1 million increase in net loan servicing revenue due to higher servicing income and MSR fair value changes. These increases were offset by a $10.3 million decrease in net gain on loan origination and sale activities from lower spreads and volume. The $67.4 million increase in non-interest income from the third quarter 2022 was driven by a higher net gain on loan origination and sale activities, fair value gain adjustments, and service charges and fees.

Net revenue totaled $716.2 million for the third quarter 2023, an increase of $46.9 million or 7.0%, compared to $669.3 million for the second quarter 2023, and an increase of $52.3 million or 7.9%, compared to $663.9 million for the third quarter 2022.

Non-interest expense was $426.2 million for the third quarter 2023, compared to $387.4 million for the second quarter 2023, and $305.8 million for the third quarter 2022. The Company’s adjusted efficiency ratio1 was 50.0% for the third quarter 2023, compared to 50.5% in the second quarter 2023, and 40.5% for the third quarter 2022. The increase in non-interest expense from the second quarter 2023 is due primarily to increased deposit costs. The increase in non-interest expense from the third quarter 2022 is primarily attributable to an increase in deposit and insurance costs.

Income tax expense was $61.3 million for the third quarter 2023, compared to $44.4 million for the second quarter 2023, and $65.6 million for the third quarter 2022. The increase in income tax expense from the second quarter 2023 is primarily due to discrete nondeductible items.

Net income was $216.6 million for the third quarter 2023, an increase of $0.9 million from $215.7 million for the second quarter 2023, and a decrease of $47.4 million from $264.0 million for the third quarter 2022. Earnings per share totaled $1.97 for the third quarter 2023, compared to $1.96 for the second quarter 2023, and $2.42 for the third quarter 2022.

The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the third quarter 2023, the Company’s PPNR1 was $290.0 million, up $8.1 million from $281.9 million in the second quarter 2023, and down $68.1 million from $358.1 million in the third quarter 2022.

The Company had 3,272 full-time equivalent employees and 56 offices at September 30, 2023, compared to 3,336 employees and 56 offices at June 30, 2023, and 3,368 employees and 60 offices at September 30, 2022.

Balance Sheet

HFI loans, net of deferred fees totaled $49.4 billion at September 30, 2023, compared to $47.9 billion at June 30, 2023, and $52.2 billion at September 30, 2022. The increase in HFI loans of $1.6 billion from the prior quarter was primarily related to loan transfers from HFS to HFI totaling $1.3 billion, which drove an increase of $1.7 billion in commercial and industrial loans and $241 million in construction and land development loans. The decrease in HFI loans of $2.8 billion from September 30, 2022 was driven by a $4.0 billion decrease in commercial and industrial loans, resulting from the transfer of a significant portion of HFI loans to HFS in the first quarter 2023 as part of the Company's balance sheet repositioning strategy. This decrease was partially offset by increases in CRE non-owner occupied and construction and land development loans of $1.1 billion and $1.0 billion, respectively. HFS loans totaled $1.8 billion at September 30, 2023, compared to $3.2 billion at June 30, 2023, and $2.2 billion at September 30, 2022. The balance of HFS loans at September 30, 2023 primarily consisted of AmeriHome HFS loans, consistent with the balance at December 31, 2022 and prior periods. The decrease of $1.4 billion in HFS loans from the prior quarter is primarily related to transfer of loans to HFI. The decrease of $438 million in HFS loans from September 30, 2022 primarily relates to a decrease in AmeriHome HFS loans.

The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. At September 30, 2023, the allowance for loan losses to funded HFI loans ratio was 0.66%, compared to 0.67% at June 30, 2023, and 0.58% at September 30, 2022. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.74% at September 30, 2023, compared to 0.76% at June 30, 2023, and 0.68% at September 30, 2022. The Company is a party to credit linked note transactions, which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $9.3 billion, $9.4 billion, and $10.8 billion as of September 30, 2023, June 30, 2023, and September 30, 2022, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance of $17.4 million as of September 30, 2023, $21.4 million as of June 30, 2023, and $18.5 million as of September 30, 2022, related to these pools of loans. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 0.91% at September 30, 2023, 0.94% at June 30, 2023, and 0.86% at September 30, 2022.

Deposits totaled $54.3 billion at September 30, 2023, an increase of $3.2 billion from $51.0 billion at June 30, 2023, and a decrease of $1.3 billion from $55.6 billion at September 30, 2022. By deposit type, the increase from the prior quarter is attributable to increases of $1.6 billion from savings and money market accounts, $1.3 billion from non-interest bearing demand deposits, $204 million from certificates of deposits, and $197 million from interest-bearing demand deposits. From September 30, 2022, non-interest bearing demand deposits and savings and money market accounts decreased $6.9 billion and $4.5 billion, respectively. These decreases were partially offset by increases in certificates of deposit and interest-bearing demand deposits of $5.7 billion and $4.5 billion, respectively. Non-interest bearing deposits were $18.0 billion at September 30, 2023, compared to $16.7 billion at June 30, 2023, and $24.9 billion at September 30, 2022.

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

 

 

Sep 30, 2023

 

Jun 30, 2023

 

Sep 30, 2022

Non-interest bearing

 

33.1

%

 

32.8

%

 

44.8

%

Savings and money market

 

27.0

 

 

25.6

 

 

34.6

 

Interest-bearing demand

 

23.7

 

 

24.8

 

 

15.0

 

Certificates of deposit

 

16.2

 

 

16.8

 

 

5.6

 

The Company’s ratio of HFI loans to deposits was 91.1% at September 30, 2023, compared to 93.8% at June 30, 2023, and 93.9% at September 30, 2022.

Borrowings were $8.7 billion at September 30, 2023, $9.6 billion at June 30, 2023, and $6.3 billion at September 30, 2022. Borrowings decreased from June 30, 2023 due primarily to a decrease in short-term borrowings of $817 million. The increase in borrowings from September 30, 2022 is due to an increase in short-term borrowings of $2.9 billion, partially offset by payoffs of credit linked notes in the first half of 2023.

Qualifying debt totaled $890 million at September 30, 2023, compared to $888 million at June 30, 2023, and $889 million at September 30, 2022.

Stockholders’ equity was $5.7 billion at September 30, 2023, compared to $5.7 billion at June 30, 2023 and $5.0 billion at September 30, 2022. The slight increase in stockholders’ equity from the prior quarter was due to net income, partially offset by dividends to shareholders and unrealized fair value losses of $121 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax. Cash dividends of $39.4 million ($0.36 per common share) and $3.2 million ($0.27 per depository share) were paid to shareholders during the third quarter 2023. The increase in stockholders' equity from September 30, 2022 is primarily a function of net income, partially offset by dividends to shareholders.

At September 30, 2023, tangible common equity, net of tax1, was 6.8% of tangible assets1 and total capital was 13.5% of risk-weighted assets. The Company’s tangible book value per share1 was $43.66 at September 30, 2023, an increase of 1.3% from $43.09 at June 30, 2023, and up 17.5% from $37.16 at September 30, 2022. The increase in tangible book value per share from June 30, 2023 is attributable to net income.

Total assets increased 4.0% to $70.9 billion at September 30, 2023, from $68.2 billion at June 30, 2023, and increased 2.5% from $69.2 billion at September 30, 2022. The increase in total assets from June 30, 2023 was driven by an increase in HFI loans, cash, and investments, partially offset by a decrease in HFS loans. The increase in total assets from September 30, 2022 was driven by an increase in investments and cash, partially offset by a decrease in HFI and HFS loans.

Asset Quality

Provision for credit losses totaled $12.1 million for the third quarter 2023, compared to $21.8 million for the second quarter 2023, and $28.5 million for the third quarter 2022. Net loan charge-offs (recoveries) in the third quarter 2023 were $8.0 million, or 0.07% of average loans (annualized), compared to $7.4 million, or 0.06%, in the second quarter 2023, and $(1.9) million, or (0.02)%, in the third quarter 2022.

Nonaccrual loans decreased $19 million to $237 million during the quarter and increased $147 million from September 30, 2022. Loans past due 90 days and still accruing interest were zero at each of the periods ended September 30, 2023, June 30, 2023, and September 30, 2022 (excluding government guaranteed loans of $439 million, $481 million, and $644 million, respectively). Loans past due 30-89 days and still accruing interest totaled $189 million at September 30, 2023, an increase from $121 million at June 30, 2023, and an increase from $56 million at September 30, 2022 (excluding government guaranteed loans of $261 million, $289 million, and $245 million, respectively).

Repossessed assets totaled $8 million at September 30, 2023, a $3 million decrease from $11 million at June 30, 2023 and September 30, 2022. Classified assets totaled $639 million at September 30, 2023, an increase of $35 million from $604 million at June 30, 2023, and an increase of $254 million from $385 million at September 30, 2022.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 10.2% at September 30, 2023, compared to 10.0% at June 30, 2023, and 7.0% at September 30, 2022.

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.

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 $28.7 billion at September 30, 2023, an increase of $581 million during the quarter, and a decrease of $3.3 billion during the last twelve months. The Commercial segment did not have any loans held for sale at September 30, 2023, a decrease of $1.0 billion during the quarter. Deposits for the Commercial segment totaled $22.6 billion at September 30, 2023, an increase of $1.2 billion during the quarter, and a decrease of $7.4 billion during the last twelve months.

Pre-tax income for the Commercial segment was $196.1 million for the three months ended September 30, 2023, a decrease of $25.3 million from the three months ended June 30, 2023, and a decrease of $102.1 million from the three months ended September 30, 2022. For the nine months ended September 30, 2023, the Commercial segment reported total pre-tax income of $576.8 million, a decrease of $198.0 million compared to the nine months ended September 30, 2022.

The Consumer Related segment reported an HFI loan balance of $20.7 billion at September 30, 2023, an increase of $991 million during the quarter, and an increase of $586 million during the last twelve months. The Consumer Related segment also has loans held for sale of $1.8 billion at September 30, 2023, a decrease of $341 million during the quarter, and a decrease of $438 million during the last twelve months. Deposits for the Consumer Related segment totaled $25.1 billion, an increase of $2.7 billion during the quarter and an increase of $4.1 billion during the last twelve months.

Pre-tax income for the Consumer Related segment was $68.9 million for the three months ended September 30, 2023, an increase of $12.2 million from the three months ended June 30, 2023, and a decrease of $24.3 million from the three months ended September 30, 2022. Pre-tax income for the Consumer Related segment for the nine months ended September 30, 2023 totaled $182.4 million, a decrease of $197.9 million compared to the nine months ended September 30, 2022.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2023 financial results at 12:00 p.m. ET on Friday, October 20, 2023. Participants may access the call by dialing 1-833-470-1428 and using access code 448677 or via live audio webcast using the website link https://events.q4inc.com/attendee/123936476. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET October 20th through 11:00 p.m. ET November 20th by dialing 1-866-813-9403, using access code 831794.

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, 2022 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the bank failures earlier in 2023 and any related impact on depositor behavior; risks related to the sufficiency of liquidity; the potential adverse effects of unusual and infrequently occurring events 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 wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.

About Western Alliance Bancorporation

With more than $70 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, business clients benefit from a full spectrum of tailored banking solutions and outstanding service delivered by industry experts who put customers first. Influential sources from Forbes to American Banker again rank Western Alliance Bank among the top U.S. banks in 2023. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit westernalliancebank.com.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

 

Selected Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

 

 

 

 

 

2023

 

2022

 

Change %

 

 

 

 

 

 

 

 

(in millions)

 

 

Total assets

 

 

 

 

 

 

 

$

70,891

 

$

69,165

 

2.5

%

Loans held for sale

 

 

 

 

 

 

 

 

1,766

 

 

2,204

 

(19.9

)

HFI loans, net of deferred fees

 

 

 

 

 

 

 

 

49,447

 

 

52,201

 

(5.3

)

Investment securities

 

 

 

 

 

 

 

 

11,423

 

 

8,603

 

32.8

 

Total deposits

 

 

 

 

 

 

 

 

54,287

 

 

55,589

 

(2.3

)

Borrowings

 

 

 

 

 

 

 

 

8,745

 

 

6,319

 

38.4

 

Qualifying debt

 

 

 

 

 

 

 

 

890

 

 

889

 

0.1

 

Stockholders' equity

 

 

 

 

 

 

 

 

5,746

 

 

5,021

 

14.4

 

Tangible common equity, net of tax (1)

 

 

 

 

 

 

 

 

4,781

 

 

4,047

 

18.1

 

Common equity Tier 1 capital

 

 

 

 

 

 

 

 

5,540

 

 

4,771

 

16.1

 

 

Selected Income Statement Data:

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2023

 

2022

 

Change %

 

2023

 

2022

 

Change %

 

 

(in millions, except per share data)

 

 

 

(in millions, except per share data)

 

 

Interest income

 

$

1,026.6

 

$

739.4

 

38.8

%

 

$

2,996.3

 

$

1,803.5

 

66.1

%

Interest expense

 

 

439.6

 

 

137.3

 

NM

 

 

 

1,249.1

 

 

226.9

 

NM

 

Net interest income

 

 

587.0

 

 

602.1

 

(2.5

)

 

 

1,747.2

 

 

1,576.6

 

10.8

 

Provision for credit losses

 

 

12.1

 

 

28.5

 

(57.5

)

 

 

53.3

 

 

65.0

 

(18.0

)

Net interest income after provision for credit losses

 

 

574.9

 

 

573.6

 

0.2

 

 

 

1,693.9

 

 

1,511.6

 

12.1

 

Non-interest income

 

 

129.2

 

 

61.8

 

NM

 

 

 

190.2

 

 

263.1

 

(27.7

)

Non-interest expense

 

 

426.2

 

 

305.8

 

39.4

 

 

 

1,161.5

 

 

823.3

 

41.1

 

Income before income taxes

 

 

277.9

 

 

329.6

 

(15.7

)

 

 

722.6

 

 

951.4

 

(24.0

)

Income tax expense

 

 

61.3

 

 

65.6

 

(6.6

)

 

 

148.1

 

 

187.1

 

(20.8

)

Net income

 

 

216.6

 

 

264.0

 

(18.0

)

 

 

574.5

 

 

764.3

 

(24.8

)

Dividends on preferred stock

 

 

3.2

 

 

3.2

 

 

 

 

9.6

 

 

9.6

 

 

Net income available to common stockholders

 

$

213.4

 

$

260.8

 

(18.2

)

 

$

564.9

 

$

754.7

 

(25.1

)

Diluted earnings per common share

 

$

1.97

 

$

2.42

 

(18.6

)

 

$

5.21

 

$

7.03

 

(25.9

)

(1)

See Reconciliation of Non-GAAP Financial Measures.

NM

Changes +/- 100% are not meaningful

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

 

Common Share Data:

 

 

 

 

At or For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2023

 

2022

 

Change %

 

2023

 

2022

 

Change %

Diluted earnings per common share

 

$

1.97

 

$

2.42

 

(18.6

)%

 

$

5.21

 

$

7.03

 

(25.9

)%

Book value per common share

 

 

49.78

 

 

43.39

 

14.7

 

 

 

 

 

 

 

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

 

 

43.66

 

 

37.16

 

17.5

 

 

 

 

 

 

 

Average common shares outstanding

(in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

108.3

 

 

107.5

 

0.8

 

 

 

108.3

 

 

107.0

 

1.2

 

Diluted

 

 

108.5

 

 

107.9

 

0.5

 

 

 

108.4

 

 

107.4

 

0.9

 

Common shares outstanding

 

 

109.5

 

 

108.9

 

0.5

 

 

 

 

 

 

 

Selected Performance Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (2)

 

1.24

%

 

1.53

%

 

(19.0

)%

 

1.09

%

 

1.60

%

 

(31.9

)%

Return on average tangible common equity (1, 2)

 

17.3

 

 

24.9

 

 

(30.5

)

 

16.0

 

 

24.8

 

 

(35.5

)

Net interest margin (2)

 

3.67

 

 

3.78

 

 

(2.9

)

 

3.62

 

 

3.56

 

 

1.7

 

Efficiency ratio, adjusted for deposit costs (1)

 

50.0

 

 

40.5

 

 

23.5

 

 

51.6

 

 

41.5

 

 

24.3

 

HFI loan to deposit ratio

 

91.1

 

 

93.9

 

 

(3.0

)

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs to average loans outstanding (2)

 

0.07

%

 

(0.02

)%

 

NM

 

 

0.06

%

 

0.00

%

 

NM

 

Nonaccrual loans to funded HFI loans

 

0.48

 

 

0.17

 

 

NM

 

 

 

 

 

 

 

Nonaccrual loans and repossessed assets to total assets

 

0.35

 

 

0.15

 

 

NM

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans

 

0.66

 

 

0.58

 

 

13.8

 

 

 

 

 

 

 

Allowance for loan losses to nonaccrual HFI loans

 

138

 

 

338

 

 

(59.1

)

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

Sep 30, 2023

 

Jun 30, 2023

 

Sep 30, 2022

Tangible common equity (1)

 

6.8

%

 

7.0

%

 

5.9

%

Common Equity Tier 1 (3)

 

10.6

 

 

10.1

 

 

8.7

 

Tier 1 Leverage ratio (3)

 

8.5

 

 

8.1

 

 

7.5

 

Tier 1 Capital (3)

 

11.3

 

 

10.8

 

 

9.3

 

Total Capital (3)

 

13.5

 

 

13.0

 

 

11.4

 

(1)

See Reconciliation of Non-GAAP Financial Measures.

(2)

Annualized on an actual/actual basis for periods less than 12 months.

(3)

Capital ratios for September 30, 2023 are preliminary.

NM

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

2023

 

2022

 

2023

 

2022

 

 

(dollars in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

Loans

 

$

860.8

 

 

$

657.0

 

 

$

2,550.7

 

 

$

1,608.3

 

Investment securities

 

 

122.8

 

 

 

75.9

 

 

 

331.3

 

 

 

183.2

 

Other

 

 

43.0

 

 

 

6.5

 

 

 

114.3

 

 

 

12.0

 

Total interest income

 

 

1,026.6

 

 

 

739.4

 

 

 

2,996.3

 

 

 

1,803.5

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

316.2

 

 

 

77.6

 

 

 

798.9

 

 

 

118.8

 

Qualifying debt

 

 

9.5

 

 

 

8.9

 

 

 

28.3

 

 

 

25.9

 

Borrowings

 

 

113.9

 

 

 

50.8

 

 

 

421.9

 

 

 

82.2

 

Total interest expense

 

 

439.6

 

 

 

137.3

 

 

 

1,249.1

 

 

 

226.9

 

Net interest income

 

 

587.0

 

 

 

602.1

 

 

 

1,747.2

 

 

 

1,576.6

 

Provision for credit losses

 

 

12.1

 

 

 

28.5

 

 

 

53.3

 

 

 

65.0

 

Net interest income after provision for credit losses

 

 

574.9

 

 

 

573.6

 

 

 

1,693.9

 

 

 

1,511.6

 

Non-interest income:

 

 

 

 

 

 

 

 

Net gain on loan origination and sale activities

 

 

52.0

 

 

 

14.5

 

 

 

145.7

 

 

 

78.6

 

Net loan servicing revenue

 

 

27.2

 

 

 

23.0

 

 

 

93.2

 

 

 

109.5

 

Service charges and fees

 

 

23.3

 

 

 

6.5

 

 

 

53.6

 

 

 

21.1

 

Commercial banking related income

 

 

5.6

 

 

 

5.1

 

 

 

17.8

 

 

 

16.0

 

Income from equity investments

 

 

0.5

 

 

4.3

 

 

 

2.6

 

 

 

13.6

 

(Loss) gain on recovery from credit guarantees

 

 

(4.0

 

 

0.4

 

 

 

0.5

 

 

 

11.7

 

Gain (loss) on sales of investment securities

 

 

0.1

 

 

 

 

 

 

(26.0

)

 

 

6.7

 

Fair value gain (loss) adjustments, net

 

 

17.8

 

 

 

(2.8

)

 

 

(117.3

)

 

 

(19.4

)

Other

 

 

6.7

 

 

 

10.8

 

 

 

20.1

 

 

 

25.3

 

Total non-interest income

 

 

129.2

 

 

 

61.8

 

 

 

190.2

 

 

 

263.1

 

Non-interest expenses:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

137.2

 

 

 

136.5

 

 

 

431.7

 

 

 

413.8

 

Deposit costs

 

 

127.8

 

 

 

56.2

 

 

 

305.7

 

 

 

83.6

 

Data processing

 

 

33.9

 

 

 

21.8

 

 

 

88.9

 

 

 

59.1

 

Insurance

 

 

33.1

 

 

 

8.1

 

 

 

81.8

 

 

 

22.2

 

Legal, professional, and directors' fees

 

 

28.3

 

 

 

24.8

 

 

 

77.8

 

 

 

73.9

 

Occupancy

 

 

16.8

 

 

 

13.9

 

 

 

48.7

 

 

 

39.7

 

Loan servicing expenses

 

 

11.9

 

 

 

15.2

 

 

 

44.1

 

 

 

40.7

 

Loan acquisition and origination expenses

 

 

5.6

 

 

 

5.8

 

 

 

15.6

 

 

 

18.7

 

Business development and marketing

 

 

4.9

 

 

 

5.0

 

 

 

15.1

 

 

 

14.8

 

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

 

 

2.2

 

 

 

(0.2

)

 

 

2.7

 

 

 

(0.4

)

Gain on extinguishment of debt

 

 

 

 

 

 

 

 

(13.4

)

 

 

 

Other

 

 

24.5

 

 

 

18.7

 

 

 

62.8

 

 

 

57.2

 

Total non-interest expense

 

 

426.2

 

 

 

305.8

 

 

 

1,161.5

 

 

 

823.3

 

Income before income taxes

 

 

277.9

 

 

 

329.6

 

 

 

722.6

 

 

 

951.4

 

Income tax expense

 

 

61.3

 

 

 

65.6

 

 

 

148.1

 

 

 

187.1

 

Net income

 

 

216.6

 

 

 

264.0

 

 

 

574.5

 

 

 

764.3

 

Dividends on preferred stock

 

 

3.2

 

 

 

3.2

 

 

 

9.6

 

 

 

9.6

 

Net income available to common stockholders

 

$

213.4

 

 

$

260.8

 

 

$

564.9

 

 

$

754.7

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

Diluted shares

 

 

108.5

 

 

 

107.9

 

 

 

108.4

 

 

 

107.4

 

Diluted earnings per share

 

$

1.97

 

 

$

2.42

 

 

$

5.21

 

 

$

7.03

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

 

 

Three Months Ended

 

 

Sep 30, 2023

 

Jun 30, 2023

 

Mar 31, 2023

 

Dec 31, 2022

 

Sep 30, 2022

 

 

(in millions, except per share data)

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans

 

$

860.8

 

 

$

857.2

 

 

$

832.7

 

 

$

785.1

 

 

$

657.0

 

Investment securities

 

 

122.8

 

 

 

112.4

 

 

 

96.1

 

 

 

89.4

 

 

 

75.9

 

Other

 

 

43.0

 

 

 

31.2

 

 

 

40.1

 

 

 

13.8

 

 

 

6.5

 

Total interest income

 

 

1,026.6

 

 

 

1,000.8

 

 

 

968.9

 

 

 

888.3

 

 

 

739.4

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

316.2

 

 

 

251.1

 

 

 

231.6

 

 

 

157.6

 

 

 

77.6

 

Qualifying debt

 

 

9.5

 

 

 

9.5

 

 

 

9.3

 

 

 

9.1

 

 

 

8.9

 

Borrowings

 

 

113.9

 

 

 

189.9

 

 

 

118.1

 

 

 

81.9

 

 

 

50.8

 

Total interest expense

 

 

439.6

 

 

 

450.5

 

 

 

359.0

 

 

 

248.6

 

 

 

137.3

 

Net interest income

 

 

587.0

 

 

 

550.3

 

 

 

609.9

 

 

 

639.7

 

 

 

602.1

 

Provision for credit losses

 

 

12.1

 

 

 

21.8

 

 

 

19.4

 

 

 

3.1

 

 

 

28.5

 

Net interest income after provision for credit losses

 

 

574.9

 

 

 

528.5

 

 

 

590.5

 

 

 

636.6

 

 

 

573.6

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Net gain on loan origination and sale activities

 

 

52.0

 

 

 

62.3

 

 

 

31.4

 

 

 

25.4

 

 

 

14.5

 

Net loan servicing revenue

 

 

27.2

 

 

 

24.1

 

 

 

41.9

 

 

 

21.4

 

 

 

23.0

 

Service charges and fees

 

 

23.3

 

 

 

20.8

 

 

 

9.5

 

 

 

5.9

 

 

 

6.5

 

Commercial banking related income

 

 

5.6

 

 

 

6.0

 

 

 

6.2

 

 

 

5.5

 

 

 

5.1

 

Income from equity investments

 

 

0.5

 

 

 

0.7

 

 

 

1.4

 

 

 

4.2

 

 

 

4.3

 

(Loss) gain on recovery from credit guarantees

 

 

(4.0

)

 

 

1.2

 

 

 

3.3

 

 

 

3.0

 

 

 

0.4

 

Gain (loss) on sales of investment securities

 

 

0.1

 

 

 

(13.6

)

 

 

(12.5

)

 

 

0.1

 

 

 

 

Fair value gain (loss) adjustments, net

 

 

17.8

 

 

 

12.7

 

 

 

(147.8

)

 

 

(9.2

)

 

 

(2.8

)

Other

 

 

6.7

 

 

 

4.8

 

 

 

8.6

 

 

 

5.2

 

 

 

10.8

 

Total non-interest income

 

 

129.2

 

 

 

119.0

 

 

 

(58.0

)

 

 

61.5

 

 

 

61.8

 

Non-interest expenses:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

137.2

 

 

 

145.6

 

 

 

148.9

 

 

 

125.7

 

 

 

136.5

 

Deposit costs

 

 

127.8

 

 

 

91.0

 

 

 

86.9

 

 

 

82.2

 

 

 

56.2

 

Data processing

 

 

33.9

 

 

 

28.6

 

 

 

26.4

 

 

 

23.9

 

 

 

21.8

 

Insurance

 

 

33.1

 

 

 

33.0

 

 

 

15.7

 

 

 

8.9

 

 

 

8.1

 

Legal, professional, and directors' fees

 

 

28.3

 

 

 

26.4

 

 

 

23.1

 

 

 

26.0

 

 

 

24.8

 

Occupancy

 

 

16.8

 

 

 

15.4

 

 

 

16.5

 

 

 

15.8

 

 

 

13.9

 

Loan servicing expenses

 

 

11.9

 

 

 

18.4

 

 

 

13.8

 

 

 

14.8

 

 

 

15.2

 

Loan acquisition and origination expenses

 

 

5.6

 

 

 

5.6

 

 

 

4.4

 

 

 

4.4

 

 

 

5.8

 

Business development and marketing

 

 

4.9

 

 

 

5.0

 

 

 

5.2

 

 

 

7.3

 

 

 

5.0

 

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

 

 

2.2

 

 

 

0.5

 

 

 

0.0

 

 

 

(0.3

)

 

 

(0.2

)

Gain on extinguishment of debt

 

 

 

 

 

(0.7

)

 

 

(12.7

)

 

 

 

 

 

 

Other

 

 

24.5

 

 

 

18.6

 

 

 

19.7

 

 

 

24.7

 

 

 

18.7

 

Total non-interest expense

 

 

426.2

 

 

 

387.4

 

 

 

347.9

 

 

 

333.4

 

 

 

305.8

 

Income before income taxes

 

 

277.9

 

 

 

260.1

 

 

 

184.6

 

 

 

364.7

 

 

 

329.6

 

Income tax expense

 

 

61.3

 

 

 

44.4

 

 

 

42.4

 

 

 

71.7

 

 

 

65.6

 

Net income

 

 

216.6

 

 

 

215.7

 

 

 

142.2

 

 

 

293.0

 

 

 

264.0

 

Dividends on preferred stock

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

 

 

3.2

 

Net income available to common stockholders

 

$

213.4

 

 

$

212.5

 

 

$

139.0

 

 

$

289.8

 

 

$

260.8

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Diluted shares

 

 

108.5

 

 

 

108.3

 

 

 

108.3

 

 

 

108.4

 

 

 

107.9

 

Diluted earnings per share

 

$

1.97

 

 

$

1.96

 

 

$

1.28

 

 

$

2.67

 

 

$

2.42

 

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

 

 

Sep 30, 2023

 

Jun 30, 2023

 

Mar 31, 2023

 

Dec 31, 2022

 

Sep 30, 2022

 

 

(in millions)

Assets:

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

3,497

 

 

$

2,153

 

 

$

3,639

 

 

$

1,043

 

 

$

1,610

 

Investment securities

 

 

11,423

 

 

 

10,374

 

 

 

9,493

 

 

 

8,760

 

 

 

8,603

 

Loans held for sale

 

 

1,766

 

 

 

3,156

 

 

 

7,022

 

 

 

1,184

 

 

 

2,204

 

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

18,344

 

 

 

16,657

 

 

 

15,503

 

 

 

20,710

 

 

 

22,318

 

Commercial real estate - non-owner occupied

 

 

9,810

 

 

 

9,913

 

 

 

9,617

 

 

 

9,319

 

 

 

8,668

 

Commercial real estate - owner occupied

 

 

1,771

 

 

 

1,805

 

 

 

1,809

 

 

 

1,818

 

 

 

1,848

 

Construction and land development

 

 

4,669

 

 

 

4,428

 

 

 

4,407

 

 

 

4,013

 

 

 

3,621

 

Residential real estate

 

 

14,779

 

 

 

15,000

 

 

 

15,024

 

 

 

15,928

 

 

 

15,674

 

Consumer

 

 

74

 

 

 

72

 

 

 

75

 

 

 

74

 

 

 

72

 

Loans HFI, net of deferred fees

 

 

49,447

 

 

 

47,875

 

 

 

46,435

 

 

 

51,862

 

 

 

52,201

 

Allowance for loan losses

 

 

(327

)

 

 

(321

)

 

 

(305

)

 

 

(310

)

 

 

(304

)

Loans HFI, net of deferred fees and allowance

 

 

49,120

 

 

 

47,554

 

 

 

46,130

 

 

 

51,552

 

 

 

51,897

 

Mortgage servicing rights

 

 

1,233

 

 

 

1,007

 

 

 

910

 

 

 

1,148

 

 

 

1,044

 

Premises and equipment, net

 

 

327

 

 

 

315

 

 

 

293

 

 

 

276

 

 

 

237

 

Operating lease right-of-use asset

 

 

150

 

 

 

151

 

 

 

156

 

 

 

163

 

 

 

131

 

Other assets acquired through foreclosure, net

 

 

8

 

 

 

11

 

 

 

11

 

 

 

11

 

 

 

11

 

Bank owned life insurance

 

 

184

 

 

 

184

 

 

 

183

 

 

 

182

 

 

 

181

 

Goodwill and other intangibles, net

 

 

672

 

 

 

674

 

 

 

677

 

 

 

680

 

 

 

682

 

Other assets

 

 

2,511

 

 

 

2,581

 

 

 

2,533

 

 

 

2,735

 

 

 

2,565

 

Total assets

 

$

70,891

 

 

$

68,160

 

 

$

71,047

 

 

$

67,734

 

 

$

69,165

 

Liabilities and Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

17,991

 

 

$

16,733

 

 

$

16,465

 

 

$

19,691

 

 

$

24,926

 

Interest bearing:

 

 

 

 

 

 

 

 

 

 

Demand

 

 

12,843

 

 

 

12,646

 

 

 

10,719

 

 

 

9,507

 

 

 

8,350

 

Savings and money market

 

 

14,672

 

 

 

13,085

 

 

 

13,845

 

 

 

19,397

 

 

 

19,202

 

Certificates of deposit

 

 

8,781

 

 

 

8,577

 

 

 

6,558

 

 

 

5,049

 

 

 

3,111

 

Total deposits

 

 

54,287

 

 

 

51,041

 

 

 

47,587

 

 

 

53,644

 

 

 

55,589

 

Borrowings

 

 

8,745

 

 

 

9,567

 

 

 

15,853

 

 

 

6,299

 

 

 

6,319

 

Qualifying debt

 

 

890

 

 

 

888

 

 

 

895

 

 

 

893

 

 

 

889

 

Operating lease liability

 

 

180

 

 

 

179

 

 

 

184

 

 

 

185

 

 

 

149

 

Accrued interest payable and other liabilities

 

 

1,043

 

 

 

800

 

 

 

1,007

 

 

 

1,357

 

 

 

1,198

 

Total liabilities

 

 

65,145

 

 

 

62,475

 

 

 

65,526

 

 

 

62,378

 

 

 

64,144

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

 

 

295

 

Common stock and additional paid-in capital

 

 

2,073

 

 

 

2,064

 

 

 

2,054

 

 

 

2,058

 

 

 

2,049

 

Retained earnings

 

 

4,111

 

 

 

3,937

 

 

 

3,764

 

 

 

3,664

 

 

 

3,413

 

Accumulated other comprehensive loss

 

 

(733

)

 

 

(611

)

 

 

(592

)

 

 

(661

)

 

 

(736

)

Total stockholders' equity

 

 

5,746

 

 

 

5,685

 

 

 

5,521

 

 

 

5,356

 

 

 

5,021

 

Total liabilities and stockholders' equity

 

$

70,891

 

 

$

68,160

 

 

$

71,047

 

 

$

67,734

 

 

$

69,165

 

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

 

 

Three Months Ended

 

 

Sep 30, 2023

 

Jun 30, 2023

 

Mar 31, 2023

 

Dec 31, 2022

 

Sep 30, 2022

 

 

(in millions)

Allowance for loan losses

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

321.1

 

 

$

304.7

 

 

$

309.7

 

 

$

304.1

 

 

$

273.2

 

Provision for credit losses (1)

 

 

14.3

 

 

 

23.8

 

 

 

1.0

 

 

 

7.4

 

 

 

29.0

 

Recoveries of loans previously charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

0.4

 

 

 

0.7

 

 

 

3.2

 

 

 

0.3

 

 

 

3.8

 

Commercial real estate - non-owner occupied

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.1

 

Commercial real estate - owner occupied

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.1

 

Residential real estate

 

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

0.1

 

 

 

 

 

 

 

 

 

 

Total recoveries

 

 

0.5

 

 

 

0.8

 

 

 

3.2

 

 

 

0.4

 

 

 

4.0

 

Loans charged-off:

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

5.5

 

 

 

6.0

 

 

 

9.1

 

 

 

1.1

 

 

 

2.1

 

Commercial real estate - non-owner occupied

 

 

3.0

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

Commercial real estate - owner occupied

 

 

 

 

 

 

 

 

 

 

 

0.5

 

 

 

 

Construction and land development

 

 

 

 

 

 

 

 

 

 

 

0.6

 

 

 

 

Residential real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

0.1

 

 

 

 

 

 

 

Total loans charged-off

 

 

8.5

 

 

 

8.2

 

 

 

9.2

 

 

 

2.2

 

 

 

2.1

 

Net loan charge-offs (recoveries)

 

 

8.0

 

 

 

7.4

 

 

 

6.0

 

 

 

1.8

 

 

 

(1.9

)

Balance, end of period

 

$

327.4

 

 

$

321.1

 

 

$

304.7

 

 

$

309.7

 

 

$

304.1

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for unfunded loan commitments

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

$

41.1

 

 

$

44.8

 

 

$

47.0

 

 

$

52.1

 

 

$

53.8

 

Recovery of credit losses (1)

 

 

(3.2

)

 

 

(3.7

)

 

 

(2.2

)

 

 

(5.1

)

 

 

(1.7

)

Balance, end of period (2)

 

$

37.9

 

 

$

41.1

 

 

$

44.8

 

 

$

47.0

 

 

$

52.1

 

 

 

 

 

 

 

 

 

 

 

 

Components of the allowance for credit losses on loans

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

327.4

 

 

$

321.1

 

 

$

304.7

 

 

$

309.7

 

 

$

304.1

 

Allowance for unfunded loan commitments

 

 

37.9

 

 

 

41.1

 

 

 

44.8

 

 

 

47.0

 

 

 

52.1

 

Total allowance for credit losses on loans

 

$

365.3

 

 

$

362.2

 

 

$

349.5

 

 

$

356.7

 

 

$

356.2

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.07

%

 

 

0.06

%

 

 

0.05

%

 

 

0.01

%

 

 

(0.02

)%

 

 

 

 

 

 

 

 

 

 

 

Allowance ratios

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to funded HFI loans (3)

 

 

0.66

%

 

 

0.67

%

 

 

0.66

%

 

 

0.60

%

 

 

0.58

%

Allowance for credit losses to funded HFI loans (3)

 

 

0.74

 

 

 

0.76

 

 

 

0.75

 

 

 

0.69

 

 

 

0.68

 

Allowance for loan losses to nonaccrual HFI loans

 

 

138

 

 

 

125

 

 

 

285

 

 

 

364

 

 

 

338

 

Allowance for credit losses to nonaccrual HFI loans

 

 

154

 

 

 

141

 

 

 

327

 

 

 

420

 

 

 

396

 

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $0.3 million provision for credit losses on AFS investment securities and a $0.7 million provision release on HTM investment securities for the three months ended September 30, 2023. The allowance for credit losses on AFS and HTM investment securities totaled $4.7 million and $6.7 million, respectively, as of September 30, 2023.

(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 $17.4 million as of September 30, 2023 related to a pool of loans covered under three separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

 

 

Three Months Ended

 

 

Sep 30, 2023

 

Jun 30, 2023

 

Mar 31, 2023

 

Dec 31, 2022

 

Sep 30, 2022

 

 

(in millions)

Nonaccrual loans and repossessed assets

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

237

 

 

$

256

 

 

$

107

 

 

$

85

 

 

$

90

 

Nonaccrual loans to funded HFI loans

 

 

0.48

%

 

 

0.53

%

 

 

0.23

%

 

 

0.16

%

 

 

0.17

%

Repossessed assets

 

$

8

 

 

$

11

 

 

$

11

 

 

$

11

 

 

$

11

 

Nonaccrual loans and repossessed assets to total assets

 

 

0.35

%

 

 

0.39

%

 

 

0.17

%

 

 

0.14

%

 

 

0.15

%

 

 

 

 

 

 

 

 

 

 

 

Loans Past Due

 

 

 

 

 

 

 

 

 

 

Loans past due 90 days, still accruing (1)

 

$

 

 

$

 

 

$

1

 

 

$

 

 

$

 

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

 

 

%

 

 

%

 

 

%

 

 

%

 

 

%

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

 

$

189

 

 

$

121

 

 

$

58

 

 

$

70

 

 

$

56

 

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

 

 

0.38

%

 

 

0.25

%

 

 

0.13

%

 

 

0.13

%

 

 

0.11

%

 

 

 

 

 

 

 

 

 

 

 

Other credit quality metrics

 

 

 

 

 

 

 

 

 

 

Special mention loans

 

$

668

 

 

$

694

 

 

$

320

 

 

$

351

 

 

$

312

 

Special mention loans to funded HFI loans

 

 

1.35

%

 

 

1.45

%

 

 

0.69

%

 

 

0.68

%

 

 

0.60

%

 

 

 

 

 

 

 

 

 

 

 

Classified loans on accrual

 

$

381

 

 

$

324

 

 

$

325

 

 

$

280

 

 

$

268

 

Classified loans on accrual to funded HFI loans

 

 

0.77

%

 

 

0.68

%

 

 

0.70

%

 

 

0.54

%

 

 

0.51

%

Classified assets

 

$

639

 

 

$

604

 

 

$

459

 

 

$

393

 

 

$

385

 

Classified assets to total assets

 

 

0.90

%

 

 

0.89

%

 

 

0.65

%

 

 

0.58

%

 

 

0.56

%

(1)

Excludes government guaranteed residential mortgage loans of $439 million, $481 million, $494 million, $582 million, and $644 million as of each respective date in the table above.

(2)

Excludes government guaranteed residential mortgage loans of $261 million, $289 million, $281 million, $334 million, and $245 million as of each respective date in the table above.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

 

 

Three Months Ended

 

 

September 30, 2023

 

June 30, 2023

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

3,069

 

 

$

47.3

 

6.11

%

 

$

6,343

 

 

$

105.2

 

6.65

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

16,855

 

 

 

324.3

 

7.70

 

 

 

15,712

 

 

 

302.3

 

7.78

 

CRE - non-owner occupied

 

 

9,950

 

 

 

196.1

 

7.83

 

 

 

9,754

 

 

 

180.7

 

7.44

 

CRE - owner occupied

 

 

1,790

 

 

 

26.4

 

5.97

 

 

 

1,816

 

 

 

25.1

 

5.66

 

Construction and land development

 

 

4,545

 

 

 

110.3

 

9.63

 

 

 

4,420

 

 

 

103.6

 

9.40

 

Residential real estate

 

 

14,914

 

 

 

155.0

 

4.12

 

 

 

15,006

 

 

 

139.0

 

3.72

 

Consumer

 

 

73

 

 

 

1.4

 

7.43

 

 

 

73

 

 

 

1.3

 

7.15

 

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

 

 

48,127

 

 

 

813.5

 

6.73

 

 

 

46,781

 

 

 

752.0

 

6.48

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

8,272

 

 

 

101.1

 

4.85

 

 

 

7,879

 

 

 

91.4

 

4.65

 

Securities - tax-exempt

 

 

2,103

 

 

 

21.7

 

5.12

 

 

 

2,062

 

 

 

21.0

 

5.12

 

Total securities (1)

 

 

10,375

 

 

 

122.8

 

4.91

 

 

 

9,941

 

 

 

112.4

 

4.76

 

Cash and other

 

 

2,911

 

 

 

43.0

 

5.87

 

 

 

2,584

 

 

 

31.2

 

4.84

 

Total interest earning assets

 

 

64,482

 

 

 

1,026.6

 

6.37

 

 

 

65,649

 

 

 

1,000.8

 

6.17

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

279

 

 

 

 

 

 

 

259

 

 

 

 

 

Allowance for credit losses

 

 

(334

)

 

 

 

 

 

 

(314

)

 

 

 

 

Bank owned life insurance

 

 

184

 

 

 

 

 

 

 

183

 

 

 

 

 

Other assets

 

 

4,513

 

 

 

 

 

 

 

4,361

 

 

 

 

 

Total assets

 

$

69,124

 

 

 

 

 

 

$

70,138

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

12,947

 

 

$

98.9

 

3.03

%

 

$

11,893

 

 

$

80.2

 

2.71

%

Savings and money market

 

 

13,832

 

 

 

106.3

 

3.05

 

 

 

13,167

 

 

 

87.2

 

2.66

 

Certificates of deposit

 

 

9,125

 

 

 

111.0

 

4.83

 

 

 

7,626

 

 

 

83.7

 

4.40

 

Total interest-bearing deposits

 

 

35,904

 

 

 

316.2

 

3.49

 

 

 

32,686

 

 

 

251.1

 

3.08

 

Short-term borrowings

 

 

6,260

 

 

 

97.2

 

6.16

 

 

 

12,195

 

 

 

170.4

 

5.60

 

Long-term debt

 

 

764

 

 

 

16.7

 

8.68

 

 

 

826

 

 

 

19.5

 

9.45

 

Qualifying debt

 

 

888

 

 

 

9.5

 

4.26

 

 

 

895

 

 

 

9.5

 

4.27

 

Total interest-bearing liabilities

 

 

43,816

 

 

 

439.6

 

3.98

 

 

 

46,602

 

 

 

450.5

 

3.88

 

Interest cost of funding earning assets

 

 

 

2.70

 

 

 

 

 

 

2.75

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

18,402

 

 

 

 

 

 

 

16,701

 

 

 

 

 

Other liabilities

 

 

1,052

 

 

 

 

 

 

 

1,183

 

 

 

 

 

Stockholders’ equity

 

 

5,854

 

 

 

 

 

 

 

5,652

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

69,124

 

 

 

 

 

 

$

70,138

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

587.0

 

3.67

%

 

 

 

$

550.3

 

3.42

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.9 million and $8.7 million for the three months ended September 30, 2023 and June 30, 2023, respectively.

(2)

Included in the yield computation are net loan fees of $28.0 million and $36.8 million for the three months ended September 30, 2023 and June 30, 2023, respectively.

(3)

Includes non-accrual loans.

(4)

Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

 

 

Three Months Ended

 

 

September 30, 2023

 

September 30, 2022

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

$

3,069

 

 

$

47.3

 

6.11

%

 

$

3,993

 

 

$

49.0

 

4.87

%

Loans held for investment:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

16,855

 

 

 

324.3

 

7.70

 

 

 

21,551

 

 

 

282.1

 

5.25

 

CRE - non-owner-occupied

 

 

9,950

 

 

 

196.1

 

7.83

 

 

 

8,128

 

 

 

111.4

 

5.44

 

CRE - owner-occupied

 

 

1,790

 

 

 

26.4

 

5.97

 

 

 

1,839

 

 

 

23.3

 

5.12

 

Construction and land development

 

 

4,545

 

 

 

110.3

 

9.63

 

 

 

3,471

 

 

 

59.5

 

6.80

 

Residential real estate

 

 

14,914

 

 

 

155.0

 

4.12

 

 

 

15,125

 

 

 

130.9

 

3.43

 

Consumer

 

 

73

 

 

 

1.4

 

7.43

 

 

 

63

 

 

 

0.8

 

5.32

 

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

 

 

48,127

 

 

 

813.5

 

6.73

 

 

 

50,177

 

 

 

608.0

 

4.84

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

8,272

 

 

 

101.1

 

4.85

 

 

 

6,680

 

 

 

56.4

 

3.35

 

Securities - tax-exempt

 

 

2,103

 

 

 

21.7

 

5.12

 

 

 

2,047

 

 

 

19.5

 

4.73

 

Total securities (1)

 

 

10,375

 

 

 

122.8

 

4.91

 

 

 

8,727

 

 

 

75.9

 

3.66

 

Cash and other

 

 

2,911

 

 

 

43.0

 

5.87

 

 

 

1,239

 

 

 

6.5

 

2.07

 

Total interest earning assets

 

 

64,482

 

 

 

1,026.6

 

6.37

 

 

 

64,136

 

 

 

739.4

 

4.62

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

279

 

 

 

 

 

 

 

242

 

 

 

 

 

Allowance for credit losses

 

 

(334

)

 

 

 

 

 

 

(282

)

 

 

 

 

Bank owned life insurance

 

 

184

 

 

 

 

 

 

 

180

 

 

 

 

 

Other assets

 

 

4,513

 

 

 

 

 

 

 

4,100

 

 

 

 

 

Total assets

 

$

69,124

 

 

 

 

 

 

$

68,376

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

12,947

 

 

$

98.9

 

3.03

%

 

$

8,466

 

 

$

24.5

 

1.15

%

Savings and money market accounts

 

 

13,832

 

 

 

106.3

 

3.05

 

 

 

18,515

 

 

 

44.5

 

0.95

 

Certificates of deposit

 

 

9,125

 

 

 

111.0

 

4.83

 

 

 

2,843

 

 

 

8.6

 

1.19

 

Total interest-bearing deposits

 

 

35,904

 

 

 

316.2

 

3.49

 

 

 

29,824

 

 

 

77.6

 

1.03

 

Short-term borrowings

 

 

6,260

 

 

 

97.2

 

6.16

 

 

 

4,136

 

 

 

27.0

 

2.59

 

Long-term debt

 

 

764

 

 

 

16.7

 

8.68

 

 

 

1,228

 

 

 

23.8

 

7.69

 

Qualifying debt

 

 

888

 

 

 

9.5

 

4.26

 

 

 

891

 

 

 

8.9

 

3.94

 

Total interest-bearing liabilities

 

 

43,816

 

 

 

439.6

 

3.98

 

 

 

36,079

 

 

 

137.3

 

1.51

 

Interest cost of funding earning assets

 

 

 

2.70

 

 

 

 

 

 

0.84

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

18,402

 

 

 

 

 

 

 

25,865

 

 

 

 

 

Other liabilities

 

 

1,052

 

 

 

 

 

 

 

1,282

 

 

 

 

 

Stockholders’ equity

 

 

5,854

 

 

 

 

 

 

 

5,150

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

69,124

 

 

 

 

 

 

$

68,376

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

587.0

 

3.67

%

 

 

 

$

602.1

 

3.78

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.9 million and $8.5 million for the three months ended September 30, 2023 and 2022, respectively.

(2)

Included in the yield computation are net loan fees of $28.0 million and $31.9 million for the three months ended September 30, 2023 and 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

 

 

Nine Months Ended

 

 

September 30, 2023

 

September 30, 2022

 

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

Average

Balance

 

Interest

 

Average Yield /

Cost

 

 

($ in millions)

Interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Loans HFS

 

$

3,858

 

 

$

183.8

 

6.37

%

 

$

4,939

 

 

$

142.5

 

3.86

%

Loans HFI:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

 

17,669

 

 

 

994.7

 

7.59

 

 

 

19,553

 

 

 

653.5

 

4.53

 

CRE - non-owner occupied

 

 

9,743

 

 

 

546.2

 

7.50

 

 

 

7,328

 

 

 

267.6

 

4.89

 

CRE - owner occupied

 

 

1,805

 

 

 

76.2

 

5.76

 

 

 

1,844

 

 

 

68.8

 

5.08

 

Construction and land development

 

 

4,399

 

 

 

307.1

 

9.34

 

 

 

3,301

 

 

 

148.9

 

6.03

 

Residential real estate

 

 

15,250

 

 

 

438.8

 

3.85

 

 

 

13,087

 

 

 

325.0

 

3.32

 

Consumer

 

 

73

 

 

 

3.9

 

7.14

 

 

 

58

 

 

 

2.0

 

4.57

 

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

 

 

48,939

 

 

 

2,366.9

 

6.49

 

 

 

45,171

 

 

 

1,465.8

 

4.37

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

Securities - taxable

 

 

7,609

 

 

 

267.7

 

4.70

 

 

 

6,300

 

 

 

127.5

 

2.71

 

Securities - tax-exempt

 

 

2,094

 

 

 

63.6

 

5.08

 

 

 

2,067

 

 

 

55.7

 

4.51

 

Total securities (1)

 

 

9,703

 

 

 

331.3

 

4.79

 

 

 

8,367

 

 

 

183.2

 

3.14

 

Other

 

 

2,941

 

 

 

114.3

 

5.20

 

 

 

1,646

 

 

 

12.0

 

0.97

 

Total interest earning assets

 

 

65,441

 

 

 

2,996.3

 

6.18

 

 

 

60,123

 

 

 

1,803.5

 

4.06

 

Non-interest earning assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

 

268

 

 

 

 

 

 

 

250

 

 

 

 

 

Allowance for credit losses

 

 

(321

)

 

 

 

 

 

 

(270

)

 

 

 

 

Bank owned life insurance

 

 

183

 

 

 

 

 

 

 

180

 

 

 

 

 

Other assets

 

 

4,600

 

 

 

 

 

 

 

3,724

 

 

 

 

 

Total assets

 

$

70,171

 

 

 

 

 

 

$

64,007

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing transaction accounts

 

$

11,800

 

 

$

247.4

 

2.80

%

 

$

8,188

 

 

$

35.2

 

0.57

%

Savings and money market accounts

 

 

15,006

 

 

 

308.9

 

2.75

 

 

 

18,474

 

 

 

70.6

 

0.51

 

Certificates of deposit

 

 

7,437

 

 

 

242.6

 

4.36

 

 

 

2,271

 

 

 

13.0

 

0.76

 

Total interest-bearing deposits

 

 

34,243

 

 

 

798.9

 

3.12

 

 

 

28,933

 

 

 

118.8

 

0.55

 

Short-term borrowings

 

 

8,578

 

 

 

355.2

 

5.54

 

 

 

2,745

 

 

 

37.4

 

1.82

 

Long-term debt

 

 

953

 

 

 

66.7

 

9.36

 

 

 

930

 

 

 

44.8

 

6.45

 

Qualifying debt

 

 

892

 

 

 

28.3

 

4.24

 

 

 

893

 

 

 

25.9

 

3.87

 

Total interest-bearing liabilities

 

 

44,666

 

 

 

1,249.1

 

3.74

 

 

 

33,501

 

 

 

226.9

 

0.91

 

Interest cost of funding earning assets

 

 

 

2.56

 

 

 

 

 

 

0.50

 

Non-interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing demand deposits

 

 

18,534

 

 

 

 

 

 

 

24,269

 

 

 

 

 

Other liabilities

 

 

1,272

 

 

 

 

 

 

 

1,183

 

 

 

 

 

Stockholders’ equity

 

 

5,699

 

 

 

 

 

 

 

5,054

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

70,171

 

 

 

 

 

 

$

64,007

 

 

 

 

 

Net interest income and margin (4)

 

 

 

$

1,747.2

 

3.62

%

 

 

 

$

1,576.6

 

3.56

%

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $26.4 million and $24.7 million for the nine ended September 30, 2023 and 2022, respectively.

(2)

Included in the yield computation are net loan fees of $100.4 million and $97.4 million for the nine ended September 30, 2023 and 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

Operating Segment Results

Unaudited

 

Balance Sheet:

 

 

 

 

Consolidated Company

 

Commercial

 

Consumer Related

 

Corporate & Other

At September 30, 2023:

 

(dollars in millions)

Assets:

 

 

 

 

 

 

 

 

Cash, cash equivalents, and investment securities

 

$

14,920

 

 

$

11

 

 

$

125

 

 

$

14,784

 

Loans HFS

 

 

1,766

 

 

 

 

 

 

1,766

 

 

 

 

Loans HFI, net of deferred fees and costs

 

 

49,447

 

 

 

28,720

 

 

 

20,727

 

 

 

 

Less: allowance for credit losses

 

 

(327

)

 

 

(277

)

 

 

(50

)

 

 

 

Net loans HFI

 

 

49,120

 

 

 

28,443

 

 

 

20,677

 

 

 

 

Other assets acquired through foreclosure, net

 

 

8

 

 

 

8

 

 

 

 

 

 

 

Goodwill and other intangible assets, net

 

 

672

 

 

 

292

 

 

 

380

 

 

 

 

Other assets

 

 

4,405

 

 

 

409

 

 

 

1,902

 

 

 

2,094

 

Total assets

 

$

70,891

 

 

$

29,163

 

 

$

24,850

 

 

$

16,878

 

Liabilities:

 

 

 

 

 

 

 

 

Deposits

 

$

54,287

 

 

$

22,643

 

 

$

25,094

 

 

$

6,550

 

Borrowings and qualifying debt

 

 

9,635

 

 

 

9

 

 

 

2,164

 

 

 

7,462

 

Other liabilities

 

 

1,223

 

 

 

136

 

 

 

264

 

 

 

823

 

Total liabilities

 

 

65,145

 

 

 

22,788

 

 

 

27,522

 

 

 

14,835

 

Allocated equity:

 

 

5,746

 

 

 

2,672

 

 

 

1,805

 

 

 

1,269

 

Total liabilities and stockholders' equity

 

$

70,891

 

 

$

25,460

 

 

$

29,327

 

 

$

16,104

 

Excess funds provided (used)

 

 

 

 

 

(3,703

)