Western Alliance Bancorporation(US:WAL)2024-10-31 20:42Financial Performance - Net income available to common stockholders for Q3 2024 was $196.6 million, down from $213.4 million in Q3 2023[249]. - Net income for the three months ended September 30, 2024, was $199.8 million, down from $216.6 million in the same period of 2023[260]. - Basic earnings per share for the three months ended September 30, 2024, was $1.81, a decrease of $0.16 from $1.97 in the same period of 2023[260]. - The efficiency ratio for Q3 2024 was 64.5%, compared to 58.8% in Q3 2023[249]. - The effective tax rate for the three months ended September 30, 2024 was 20.7%, down from 22.1% in the same period of 2023[293]. Loan and Deposit Growth - Total loans held for investment (HFI) increased by $3.0 billion, or 6.1%, to $53.3 billion from December 31, 2023[249]. - Total deposits rose by $12.7 billion, or 23.0%, to $68.0 billion compared to December 31, 2023[249]. - Loans held for investment (HFI) increased by $3.0 billion, or 6.1%, to $53.3 billion as of September 30, 2024, driven primarily by commercial and industrial loans[258]. - Total deposits rose by $12.7 billion, or 23.0%, to $68.0 billion as of September 30, 2024, compared to $55.3 billion at December 31, 2023[259]. Asset and Equity Changes - Total assets increased to $80.1 billion as of September 30, 2024, up from $70.9 billion at December 31, 2023, representing a 13.0% increase[258]. - Stockholders' equity increased by $599 million to $6.7 billion from December 31, 2023[249]. - Total stockholders' equity increased by $599 million, or 9.9%, to $6.7 billion at September 30, 2024, primarily due to net income and unrealized fair value gains[300]. Interest Income and Expense - Net interest income for the three months ended September 30, 2024, was $696.9 million, an increase of $109.9 million from $587.0 million in the same period of 2023[260]. - For the three months ended September 30, 2024, interest income was $1.2 billion, an increase of $173.4 million, or 16.9%, compared to the same period in 2023[281]. - For the three months ended September 30, 2024, interest expense was $503.1 million, an increase of $63.5 million, or 14.4%, compared to the same period in 2023[283]. Credit Quality and Losses - Nonaccrual loans and repossessed assets increased to 0.45% of total assets, up from 0.40% at December 31, 2023[249]. - Annualized net loan charge-offs to average loans outstanding were 0.20%, compared to 0.07% for Q3 2023[249]. - The provision for credit losses for the three and nine months ended September 30, 2024 was $33.6 million and $85.9 million, respectively, compared to $12.1 million and $53.3 million for the same periods in 2023[288]. - The total problem loan balance as of September 30, 2024, was $591 million, representing 1.11% of total loans HFI[329]. Capital Ratios - Common equity tier 1 ratio improved to 11.2% as of September 30, 2024, compared to 10.8% at the end of 2023[275]. - Total capital ratio increased to 14.1% as of September 30, 2024, from 13.7% at the end of 2023[275]. - The Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized as of September 30, 2024, with a Total Capital Ratio of 14.1% for WAL and 13.2% for WAB[347]. Non-Interest Income and Expense - Non-interest income for the three months ended September 30, 2024, was $126.2 million, a slight decrease from $129.2 million in the same period of 2023[260]. - Total non-interest income for the three months ended September 30, 2024 decreased by $3.0 million compared to the same period in 2023[289]. - Total non-interest expense for the three months ended September 30, 2024 increased by $111.2 million to $537.4 million compared to the same period in 2023, primarily driven by higher deposit costs[291]. Liquidity and Funding - As of September 30, 2024, the Company has $14.1 billion in liquid assets, including $1.6 billion in cash at the FRB and $12.5 billion in securities not used as collateral[354]. - The Company maintains adequate liquidity capacity to operate without additional funding for over twelve months under stressed conditions[355]. - The Company paid dividends of $60 million and $180 million to the Parent during the three and nine months ended September 30, 2024, respectively[362].