Western Alliance Bancorporation(WAL) - 2024 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2024 was $193.6 million, up $16.2 million from Q1 2024, but down $22.1 million from Q2 2023[19]. - Net income for the three months ended June 30, 2024, was $193.6 million, an increase from $177.4 million in the previous quarter[32]. - Net income available to common stockholders was $190.4 million in Q2 2024, a decrease of 10.4% from $212.5 million in Q2 2023[55]. - Net income for the six months ended June 30, 2024, was $371.0 million, compared to $210.4 million in the same period last year, showing a significant increase of approximately 76.5%[67]. - Net income for the quarter was $357.9 million, an increase from $299.0 million year-over-year[69]. Asset Growth - Total assets increased to $80,581 million as of June 30, 2024, up 18.2% from $68,160 million in June 30, 2023[1]. - Total assets rose by 4.7% to $80.6 billion at June 30, 2024, from $77.0 billion at March 31, 2024, and increased by 18.2% from $68.2 billion at June 30, 2023[44]. - Total assets grew to $78.55 billion, up from $72.68 billion in the prior period[78]. Loan and Deposit Metrics - HFI loans, net of deferred fees, rose to $52,430 million, reflecting a 9.5% increase from $47,875 million year-over-year[1]. - Total deposits reached $66,244 million, marking a 29.8% increase from $51,041 million in June 30, 2023[1]. - HFI loans totaled $52.4 billion, an increase of $1.7 billion or 3.4% from the previous quarter[13]. - Total deposits reached $66.2 billion, up $4.0 billion or 6.5% compared to the previous quarter[13]. - Total loans held for investment (HFI) amounted to $50,251 million, with a yield of 6.78%, compared to $49,351 million and a yield of 6.38% in the previous year[64]. Income and Expense Analysis - The net interest income for the three months ended June 30, 2024, was $656.6 million, with a net interest margin of 3.63%[6]. - Total interest income was $1,147.5 million for the three months ended June 30, 2024, an increase from $1,055.0 million in the previous quarter[32]. - Total non-interest income was $115.2 million for the three months ended June 30, 2024, a decrease from $129.9 million in the previous quarter[32]. - Total non-interest expense was $486.8 million for the three months ended June 30, 2024, an increase from $481.8 million in the previous quarter[32]. - Non-interest expenses rose to $735.3 million, up 27.3% from $283.6 million in the previous year[69]. Capital and Equity - Common Equity Tier 1 capital stood at 11.0% as of June 30, 2024, compared to 10.1% a year earlier[7]. - Stockholders' equity rose to $6,334 million, an 11.4% increase from $5,685 million in June 30, 2023[1]. - Stockholders' equity increased to $6.3 billion at June 30, 2024, compared to $6.2 billion at March 31, 2024, and $5.7 billion at June 30, 2023, driven by net income[44]. - Total tangible common equity rose to $5,375 million, compared to $5,211 million in the previous quarter[86]. Credit Quality - Nonaccrual loans amounted to $401 million, with a ratio of nonaccrual loans to funded HFI loans at 0.76%[8]. - The provision for credit losses was $37.1 million, up $21.9 million from the previous quarter, primarily due to loan growth and net charge-offs of $22.8 million[40]. - Annualized net loan charge-offs to average loans outstanding was 0.18%, compared to 0.06% in the previous quarter[13]. - The allowance for credit losses stood at $349 million, compared to $314 million in the previous year, indicating a strengthening of reserves[64]. Operational Efficiency - The efficiency ratio, adjusted for deposit costs, improved to 51.5% in Q2 2024 from 57.3% in Q1 2024[19]. - The company's ratio of HFI loans to deposits was 79.1% at June 30, 2024, down from 81.5% in the previous quarter[43]. - Non-interest income reached $245.1 million, up from $234.8 million, indicating a growth of approximately 4.0% year-over-year[67]. Market Position and Recognition - The company received top rankings in 2023 for Best CEO, Best CFO, and Best Investor Relations Team, highlighting its strong market position[6]. - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[80].