PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited consolidated financial statements for Western Alliance Bancorporation as of March 31, 2024, show significant asset and deposit growth, alongside increased net income [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets and deposits significantly increased, accompanied by growth in investment securities and a modest rise in net loans Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$76,989** | **$70,862** | | Cash and cash equivalents | $3,550 | $1,576 | | Investment securities (AFS & HTM) | $15,962 | $12,586 | | Net loans held for investment | $50,360 | $49,960 | | **Total Liabilities** | **$70,817** | **$64,784** | | Total deposits | $62,228 | $55,333 | | Other borrowings | $6,221 | $7,230 | | **Total Stockholders' Equity** | **$6,172** | **$6,078** | [Consolidated Income Statements](index=5&type=section&id=Consolidated%20Income%20Statements) For Q1 2024, net income available to common stockholders significantly increased, driven by a substantial recovery in non-interest income despite higher expenses Consolidated Income Statement Highlights (in millions, except per share data) | Account | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net interest income | $598.9 | $609.9 | | Provision for credit losses | $15.2 | $19.4 | | Total non-interest income | $129.9 | $(58.0) | | Total non-interest expense | $481.8 | $347.9 | | Net income | $177.4 | $142.2 | | **Net income available to common stockholders** | **$174.2** | **$139.0** | | **Diluted EPS** | **$1.60** | **$1.28** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures on the company's accounting policies and financial items, essential for understanding the primary financial statements [Note 2. Investment Securities](index=13&type=section&id=Note%202.%20Investment%20Securities) As of March 31, 2024, total investment securities increased, with a portfolio shift towards high-quality liquid assets and significant unrealized losses on AFS securities Investment Securities Portfolio (Amortized Cost, in millions) | Security Type | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Available-for-Sale (AFS)** | | | | U.S. Treasury securities | $7,019 | $4,853 | | Residential MBS issued by GSEs | $4,928 | $2,328 | | Private label residential MBS | $1,301 | $1,320 | | CLO | $0 | $1,407 | | **Total AFS Debt Securities** | **$15,251** | **$11,849** | | **Held-to-Maturity (HTM)** | | | | Tax-exempt | $1,278 | $1,243 | | **Total HTM Securities** | **$1,461** | **$1,429** | - The company sold its **Collateralized Loan Obligation (CLO) portfolio** during Q1 **2024** as part of an effort to shift the investment portfolio mix toward high-quality liquid assets[68](index=68&type=chunk) - At March **31**, **2024**, there were **770 AFS debt securities** in an unrealized loss position, with total gross unrealized losses of **$754 million**, mainly due to changes in interest rates[50](index=50&type=chunk)[52](index=52&type=chunk) [Note 4. Loans, Leases and Allowance for Credit Losses](index=19&type=section&id=Note%204.%20Loans%2C%20Leases%20and%20Allowance%20for%20Credit%20Losses) The HFI loan portfolio grew slightly, with an increase in nonaccrual loans and a stable allowance for credit losses Loan Portfolio Composition (HFI, in millions) | Loan Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Warehouse lending | $6,915 | $6,618 | | Other commercial and industrial | $7,754 | $7,452 | | Other CRE - non-owner occupied | $6,365 | $5,974 | | Residential | $13,078 | $13,287 | | Construction and land development | $4,746 | $4,862 | | **Total loans HFI** | **$50,700** | **$50,297** | Asset Quality Metrics | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Nonaccrual Loans | $399 million | $273 million | | Nonaccrual Loans / Total Loans HFI | 0.79% | 0.54% | | Allowance for Credit Losses (ACL) | $340.3 million | $336.7 million | | ACL / Total Loans HFI | 0.67% | 0.67% | [Note 6. Deposits](index=30&type=section&id=Note%206.%20Deposits) Total deposits surged significantly, driven by growth in non-interest-bearing demand deposits and strategic use of reciprocal networks Deposit Composition (in millions) | Deposit Type | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-interest-bearing demand | $18,399 | $14,520 | | Interest-bearing transaction | $16,965 | $15,916 | | Savings and money market | $16,194 | $14,791 | | Time deposits | $10,670 | $10,106 | | **Total deposits** | **$62,228** | **$55,333** | - The company actively uses deposit placement services to offer expanded FDIC insurance, with reciprocal deposits totaling **$14.5 billion** at quarter-end, up from **$13.3 billion** at year-end **2023**[100](index=100&type=chunk) [Note 16. Segments](index=50&type=section&id=Note%2016.%20Segments) The company operates through Commercial, Consumer Related, and Corporate & Other segments, with both Commercial and Consumer Related segments contributing positively to net income - The company's reportable segments are Commercial, Consumer Related, and Corporate & Other, aggregated based on products and services offered[200](index=200&type=chunk)[205](index=205&type=chunk) Segment Financial Highlights (Three Months Ended March 31, 2024, in millions) | Segment | Total Assets | Total Deposits | Net Income (Loss) | | :--- | :--- | :--- | :--- | | Commercial | $30,080 | $25,146 | $109.9 | | Consumer Related | $25,182 | $30,481 | $71.0 | | Corporate & Other | $21,727 | $6,601 | $(3.5) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong Q1 2024 results with increased net income, significant deposit growth, and improved non-interest income, despite net interest margin compression and higher expenses Q1 2024 Financial Highlights vs. Q1 2023 | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Income (common) | $174.2M | $139.0M | | Diluted EPS | $1.60 | $1.28 | | Net Revenue | $728.8M | $551.9M | | PPNR | $247.0M | $204.0M | | Net Interest Margin | 3.60% | 3.79% | - Total deposits grew by **$6.9 billion** (**12.5%**) during the quarter, reaching **$62.2 billion**, driven by a **$3.9 billion** increase in non-interest bearing demand deposits[226](index=226&type=chunk) - Non-interest expense rose by **$133.9 million** YoY, primarily due to a **$50.1 million** increase in deposit costs and a **$43.2 million** increase in insurance costs, which includes a **$17.6 million** FDIC special assessment[249](index=249&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages interest rate risk through simulation models, with its balance sheet positioned to benefit from rising rates while remaining within approved limits Sensitivity of Net Interest Income (Next 12 Months) | Parallel Shift Scenario | % Change from Base | | :--- | :--- | | Up 200 bps | +13.6% | | Up 100 bps | +6.8% | | Down 100 bps | -6.9% | | Down 200 bps | -14.1% | Sensitivity of Economic Value of Equity (EVE) | Interest Rate Scenario | % Change from Base | | :--- | :--- | | Up 200 bps | -11.6% | | Up 100 bps | -6.4% | | Down 100 bps | +6.4% | | Down 200 bps | +10.1% | [Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and found them to be effective as of March **31**, **2024**[319](index=319&type=chunk) - No changes occurred during the quarter ended March **31**, **2024**, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[320](index=320&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=79&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings, with any ongoing litigation considered routine and without expected material financial impact - There are no material pending legal proceedings involving the Company or its properties[321](index=321&type=chunk) [Risk Factors](index=80&type=page&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes to the risk factors disclosed in the **2023** Form **10-K** have occurred[323](index=323&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=80&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2024, the company purchased shares from employees to satisfy tax withholding obligations on vested restricted stock awards, without a formal repurchase program - The Company purchased **122,597 shares** during Q1 **2024** from employees to cover tax withholding on vested restricted stock awards[324](index=324&type=chunk) - The Company does not have a publicly announced common stock repurchase program[325](index=325&type=chunk) [Exhibits](index=81&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and interactive data files (XBRL)

Gary Yeowell Western Alliance Bancorporation (NYSE:WAL) reported better than expected earnings for the first fiscal quarter on April 19, 2024. The regional bank posted almost flat net interest income year over year for Q1'24 due to a rapid repayment of outstanding borrowings that Western Alliance took on during last year's crisis in the regional banking market. The bank's deposits are also showing healthy growth, and the bank's latest consolidation provides a new entry opportunity for investors. With shares ...

Financial Data and Key Metrics - The company reported pre-provision net revenue (PPNR) of $247 million, net income of $177 million, and earnings per share (EPS) of $1.60 for Q1 2024. Excluding the $18 million FDIC special assessment charge, PPNR was $265 million, net income was $191 million, and EPS was $1.72 [14] - Net interest income increased by $7 million from Q4 2023 to $599 million, driven by higher average earning asset balances and lower average borrowings [14] - Non-interest income rose by $39 million quarter-over-quarter to $130 million, primarily due to improved mortgage servicing rights (MSR) valuation [15] - Tangible book value per share increased by $0.58 to $47.30, driven by retained earnings growth [16] - The CET1 capital ratio reached 11%, and the loan-to-deposit ratio decreased by 10 points to 81% [10] Business Line Performance - Held-for-investment (HFI) loan growth was $403 million, predominantly in commercial and industrial (C&I) categories, with C&I growth of $646 million [16] - Deposit growth was $6.9 billion, driven by regional commercial banking, mortgage warehouse, and digital consumer channels [17] - Mortgage warehouse deposits rebounded by $3.5 billion, fully replacing Q4 outflows [21] Market Performance - The company experienced broad-based deposit growth across regions, with HOA and digital consumer channels contributing over $800 million each, and Juris Banking adding over $400 million [21] - The yield on total securities decreased by 33 basis points to 4.66%, reflecting efforts to enhance liquidity [22] Strategy and Industry Competition - The company has repositioned its balance sheet to optimize funding structure, increase capital, and enhance liquidity, aiming to mitigate future industry volatility [8][9] - The company plans to focus on deploying incremental liquidity into safe and thoughtful loans, with expected loan growth of $4 billion for the full year, up from the previous $2 billion guidance [35] - The company expects to maintain a CET1 ratio of around 11% and anticipates net interest income growth of 5% to 10% for 2024 [36] Management Commentary on Operating Environment and Future Outlook - Management highlighted the completion of the balance sheet repositioning, which has fortified the company's liquidity and capital position, enabling stronger loan growth starting in Q2 [10][12] - The company expects net interest margin (NIM) to trough in Q2 but anticipates NIM expansion in the second half of the year due to loan repricing and new originations [37] - Management remains cautious about the economic environment but is optimistic about the resilience of the mortgage banking business and the potential for growth in non-interest income [37] Other Important Information - Asset quality remained steady, with special mention loans and classified assets declining by $139 million from Q4 2023 [11] - Net charge-offs were $9.8 million, or 8 basis points of average loans, with provision expense of $15.2 million covering net charge-offs and supporting loan growth [27] - The company's effective tax rate decreased to 23.5% from a temporarily elevated rate in the previous quarter [19] Q&A Session Summary Question: Expense growth and NII expectations - The expense growth is primarily driven by ECR-related deposit costs, but it will also help drive net interest income (NII) as the company deploys additional funds into higher-yielding assets [45] - The company revised its loan growth guidance from $500 million per quarter to $1 billion per quarter, which will support NII growth throughout the year [46] Question: Capital and credit-linked notes (CLNs) - The company expects to maintain a CET1 ratio at or above 11% for the remainder of the year, with excess capital absorbed by increasing loan growth [47] - The runoff of CLNs is expected to contribute 40 to 50 basis points to the CET1 ratio [48] Question: Loan and deposit growth guidance - The company expects to grow deposits by $2 billion per quarter, with total deposit growth of $11 billion for the year, driven by strong performance in HOA, corporate trust, and regional banking [51][52] - Loan growth is expected to be $1 billion per quarter, with a focus on C&I, warehouse lending, and tech and innovation sectors [54][55] Question: Expense guidance and efficiency ratio - The expense guidance includes ECR-related deposit costs but excludes the $17 million FDIC special assessment. The company expects the efficiency ratio to trend towards the mid-50s [56][58] Question: Asset quality and non-performing loans (NPLs) - The increase in NPLs is primarily due to the company's strategy to accelerate resolution for certain loans. Two-thirds of NPLs are paying as agreed, and the company maintains a strong collateral position [96][97] Question: Deposit mix and cost outlook - The company expects minimal deposit mix shift, with growth primarily in money market accounts and a tapering off of higher-cost CDs [90] - Deposit costs increased by 11 basis points in Q1, but the overall cost of funds remained flat at 2.82% [23] Question: Net interest margin (NIM) outlook - NIM is expected to trough in Q2, with mid-single-digit basis points expansion in the second half of the year due to loan repricing and new originations [125][126] Question: M&A and capital deployment - The company is focused on organic growth and does not currently have plans for M&A, preferring to deploy excess capital into internal growth opportunities [101] Question: Asset sensitivity and NII impact - The company is asset-sensitive, with a 100 basis point rate increase expected to boost NII by 3%. The NII guide remains at the upper end of the range despite fewer rate cuts due to better loan growth [122][129]

For the quarter ended March 2024, Western Alliance (WAL) reported revenue of $738.4 million, up 31.7% over the same period last year. EPS came in at $1.72, compared to $2.30 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $711.34 million, representing a surprise of +3.80%. The company delivered an EPS surprise of +1.78%, with the consensus EPS estimate being $1.69.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

Western Alliance (WAL) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $2.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.78%. A quarter ago, it was expected that this bank holding company would post earnings of $1.93 per share when it actually produced earnings of $1.91, delivering a surprise of -1.04%.Over the last four quarters, ...

Financial Performance - Net income for Q1 2024 was $177.4 million, an increase of $29.5 million from Q4 2023 and $35.2 million from Q1 2023[14]. - Earnings per share for Q1 2024 was $1.60, compared to $1.33 in Q4 2023 and $1.28 in Q1 2023[14]. - Net income for Q1 2024 was $177.4 million, a 24.8% increase from $142.2 million in Q1 2023[49]. - Diluted earnings per common share increased to $1.60, up 25.0% from $1.28 in Q1 2023[49]. - Net income available to common stockholders for the three months ended March 31, 2024, was $174.2 million, resulting in diluted earnings per share of $1.60, up from $1.33[55]. - Net income reached $177.4 million, reflecting strong financial performance[67]. Deposits and Loans - Total deposits increased by $6.9 billion to $62.2 billion, representing a 12.5% growth from the previous quarter[5]. - Total deposits increased by 30.8% to $62.2 billion at March 31, 2024, from $47.6 billion at March 31, 2023[23]. - HFI loans totaled $50.7 billion, up $403 million or 0.8% from the previous quarter[5]. - The Commercial segment reported an HFI loan balance of $29.6 billion at March 31, 2024, an increase of $506 million during the quarter, and an increase of $2.4 billion year-over-year[18]. - The Consumer Related segment's deposits totaled $30.5 billion, an increase of $5.6 billion during the quarter, and an increase of $10.5 billion year-over-year[18]. Asset Quality - Nonperforming assets to total assets ratio was 0.53%, compared to 0.17% in the previous quarter[12]. - The allowance for loan losses to funded HFI loans ratio was 0.67%, unchanged from the previous quarter[8]. - Nonaccrual loans increased to $399 million, representing 0.79% of funded HFI loans, compared to 0.54% in the previous quarter[30]. - Special mention loans decreased to $394 million from $641 million in the previous quarter, indicating improved asset quality[58]. - Classified loans on accrual decreased to $361 million from $379 million in the previous quarter, reflecting a positive trend in loan performance[58]. Revenue and Expenses - Net revenue reached $728.8 million, a 6.8% increase compared to the previous quarter, while non-interest expenses increased by 4.3% to $463.8 million[35]. - Non-interest income was $129.9 million, significantly up from $90.5 million in Q4 2023, driven by higher servicing income and fair value changes[37]. - Total non-interest expenses increased to $481.8 million, up 38.5% from $347.9 million in Q1 2023[49]. - Total non-interest income for the three months ended March 31, 2024, was $129.9 million, compared to a loss of $58.0 million in the same period last year[81]. Capital Ratios - The CET 1 ratio stood at 11.0%, up from 10.8% in the previous quarter[13]. - The Company's common equity tier 1 capital ratio was 11.0% at March 31, 2024, up from 10.8% at December 31, 2023, and 9.4% at March 31, 2023[16]. - Tangible common equity ratio decreased to 6.8% from 7.3% in Q4 2023[52]. - Total capital ratio increased to 14.0% from 13.7% in Q4 2023[52]. Employee Metrics - The company had 3,312 full-time equivalent employees as of March 31, 2024, an increase from 3,260 at December 31, 2023[14]. - The total number of full-time equivalent employees increased to 3,312 as of March 31, 2024, from 2,998 in the previous quarter[78]. Tax and Provisions - The effective tax rate decreased to 23.5% from 29.9% in the previous year[35]. - Provision for credit losses totaled $15.2 million for Q1 2024, compared to $9.3 million for Q4 2023, and $19.4 million for Q1 2023[17]. - Provision for credit losses decreased to $15.2 million from $19.4 million in Q1 2023, a reduction of 21.6%[49].

The market expects Western Alliance (WAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 001-32550 WESTERN ALLIANCE BANCORPORATION (Exact name of registrant as specified in its charter) Delaware ...

LOS ANGELES--(BUSINESS WIRE)--Western Alliance Bank today announced the appointment of Bret Rathwick and Michael Anthony to the organization’s Commercial and Industrial team. Rathwick assumes the role of Vice President, Relationship Manager at Western Alliance Bank’s Costa Mesa office and Anthony takes on the role of Vice President, Relationship Manager at the organization’s Downtown Los Angeles office. “ Bret and Michael’s addition to the commercial banking team at Western Alliance Bank strengthens our ca ...

PHOENIX--(BUSINESS WIRE)--Western Alliance Bank today announced that Paulina Woo has joined the organization as a senior director, treasury management, in the bank’s Corporate Finance and Public and Nonprofit Finance groups. Woo brings more than 15 years of experience providing investment advisory and treasury management consulting services to institutional and government clients across the western U.S. In her new role, she will lead dedicated teams that tailor banking solutions to meet the unique needs ...