Western Alliance Bancorporation (WAL) BancAnalysts Association of Boston Conference 2024 summary

Business performance and growth

• Consistent quarterly growth in loans and deposits, with a focus on sustainable, risk-adjusted returns.

• Loan growth is expected to accelerate as liquidity targets have been met, with guidance for $2 billion in deposit growth and $1.6 billion in loan growth per quarter in 2025.

• Diversified business lines include national commercial banking, specialty lending, and the largest HOA depository in the country.

• Tangible book value per share has grown over 600% in the past decade, outpacing peers.

• Asset quality remains stable, with low charge-offs and non-performing assets.

Risk management and capital strategy

• Maintains a strong interest rate risk-neutral position, with a liability-sensitive profile benefiting from declining rates.

• Reserve levels are lower than peers due to higher loan quality, with significant portions of the portfolio covered by credit-linked notes and strong collateral.

• CET1 capital ratio is just over 11%, targeted as appropriate for current and future needs.

• Plans to slow total asset growth to optimize capital ratios and prepare for crossing the $100 billion threshold.

Strategic initiatives and scalability

• Scalability plan initiated in 2021 to prepare for large financial institution status, embedding necessary costs and infrastructure.

• Optionality to control timing of crossing $100 billion in assets, with infrastructure and compliance already in place.

• Focus on organic growth, but open to M&A if it is accretive and complementary to existing business lines.

• Efficiency ratio expected to improve from low 50s to upper 40s before crossing $100 billion, then stabilize in the mid-40s.