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Western Alliance

Financials

Price	45.84	EPS	5
Shares	103	P/E	10
MCap	4,743	P/FCF	9
Net Debt	-872	EBIT	771
TEV	3,871	TEV/EBIT	5
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-09-30	Filed 2020-10-30
10-Q	2020-06-30	Filed 2020-07-31
10-Q	2020-03-31	Filed 2020-04-30
10-K	2019-12-31	Filed 2020-03-02
10-Q	2019-09-30	Filed 2019-10-31
10-Q	2019-06-30	Filed 2019-08-01
10-Q	2019-03-31	Filed 2019-04-30
10-K	2018-12-31	Filed 2019-03-01
10-Q	2018-09-30	Filed 2018-10-30
10-Q	2018-06-30	Filed 2018-07-31
10-Q	2018-03-31	Filed 2018-04-27
10-K	2017-12-31	Filed 2018-02-26
10-Q	2017-09-30	Filed 2017-10-27
10-Q	2017-06-30	Filed 2017-07-28
10-Q	2017-03-31	Filed 2017-04-27
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-09-30	Filed 2016-10-31
10-Q	2016-06-30	Filed 2016-07-29
10-Q	2016-03-31	Filed 2016-05-02
10-K	2015-12-31	Filed 2016-02-16
10-Q	2015-09-30	Filed 2015-10-30
10-Q	2015-06-30	Filed 2015-08-07
10-Q	2015-03-31	Filed 2015-05-08
10-K	2014-12-31	Filed 2015-02-17
10-Q	2014-09-30	Filed 2014-10-30
10-Q	2014-06-30	Filed 2014-07-30
10-Q	2014-03-31	Filed 2014-04-30
10-K	2013-12-31	Filed 2014-02-21
10-Q	2013-09-30	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-08-09
10-Q	2013-03-31	Filed 2013-05-03
10-K	2012-12-31	Filed 2013-03-01
10-Q	2012-09-30	Filed 2012-11-02
10-Q	2012-06-30	Filed 2012-08-03
10-Q	2012-03-31	Filed 2012-05-03
10-K	2011-12-31	Filed 2012-03-02
10-Q	2011-09-30	Filed 2011-11-08
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-Q	2010-09-30	Filed 2010-11-08
10-Q	2010-06-30	Filed 2010-08-05
10-Q	2010-03-31	Filed 2010-05-07
10-K	2009-12-31	Filed 2010-03-16
10-K	2001-12-31	Filed 2011-03-07

Reports

8-K	2020-10-29
8-K	2020-10-22
8-K	2020-07-28
8-K	2020-07-16
8-K	2020-06-11
8-K	2020-06-01
8-K	2020-05-22
8-K	2020-05-13
8-K	2020-04-28
8-K	2020-04-16
8-K	2020-03-09
8-K	2020-02-12
8-K	2020-02-07
8-K	2020-01-23
8-K	2019-11-02
8-K	2019-10-29
8-K	2019-10-29
8-K	2019-10-17
8-K	2019-07-30
8-K	2019-07-18
8-K	2019-06-04
8-K	2019-04-22
8-K	2019-03-04
8-K	2019-02-11
8-K	2019-01-24
8-K	2018-12-11
8-K	2018-10-18
8-K	2018-07-19
8-K	2018-06-12
8-K	2018-04-19
8-K	2018-04-16
8-K	2018-01-25

Western Alliance Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow

wal-20200930

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)



☒						Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2020


☐						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						88-0365922
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

One E. Washington Street, Suite 1400

Phoenix

Arizona

85004

(Address of principal executive offices)

(Zip Code)

(602) 389-3500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.0001 Par Value

WAL

New York Stock Exchange

6.25% Subordinated Debentures due 2056

WALA

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 26, 2020, Western Alliance Bancorporation had 100,829,164 shares of common stock outstanding.

Table of Contents

INDEX

Table of Contents

PART I

GLOSSARY OF ENTITIES AND TERMS

The acronyms and abbreviations identified below are used in various sections of this Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Item 2 and the Consolidated Financial Statements and the Notes to Unaudited Consolidated Financial Statements in Item 1 of this Form 10-Q.


ENTITIES / DIVISIONS:
ABA	Alliance Bank of Arizona	HOA Services	Homeowner Associations Services
BON	Bank of Nevada	LVSP	Las Vegas Sunset Properties
Bridge	Bridge Bank	TPB	Torrey Pines Bank
Company	Western Alliance Bancorporation and subsidiaries	WA PWI	Western Alliance Public Welfare Investments, LLC
CSI	CS Insurance Company	WAB or Bank	Western Alliance Bank
FIB	First Independent Bank	WABT	Western Alliance Business Trust
HFF	Hotel Franchise Finance	WAL or Parent	Western Alliance Bancorporation
TERMS:
AFS	Available-for-Sale	HELOC	Home Equity Line of Credit
ALCO	Asset and Liability Management Committee	HFI	Held for Investment
AOCI	Accumulated Other Comprehensive Income	HTM	Held-to-Maturity
APIC	Additional paid in capital	ICS	Insured Cash Sweep Service
ASC	Accounting Standards Codification	IRC	Internal Revenue Code
ASU	Accounting Standards Update	ISDA	International Swaps and Derivatives Association
Basel III	Banking Supervision's December 2010 final capital framework	LGD	Loss Given Default
BOD	Board of Directors	LIBOR	London Interbank Offered Rate
BSA	Bank Secrecy Act	LIHTC	Low-Income Housing Tax Credit
CARES Act	Coronavirus Aid, Relief and Economic Security Act	MBS	Mortgage-Backed Securities
CDARS	Certificate Deposit Account Registry Service	MSLP	Main Street Lending Program
CDO	Collateralized Debt Obligation	NBL	National Business Lines
CECL	Current Expected Credit Losses	NOL	Net Operating Loss
CEO	Chief Executive Officer	NPV	Net Present Value
CFO	Chief Financial Officer	OCI	Other Comprehensive Income
COVID-19	Coronavirus Disease 2019	OREO	Other Real Estate Owned
CRA	Community Reinvestment Act	OTTI	Other-than-Temporary Impairment
CRE	Commercial Real Estate	PCI	Purchased Credit Impaired
EAD	Exposure at Default	PD	Probability of Default
EPS	Earnings per share	PPNR	Pre-Provision Net Revenue
EVE	Economic Value of Equity	PPP	Paycheck Protection Program
Exchange Act	Securities Exchange Act of 1934, as amended	PPPFA	Paycheck Protection Program Flexibility Act
FASB	Financial Accounting Standards Board	REIT	Real Estate Investment Trust
FDIC	Federal Deposit Insurance Corporation	ROU	Right of use
FHLB	Federal Home Loan Bank	SBA	Small Business Administration
FHLMC	Federal Home Loan Mortgage Corporation	SBIC	Small Business Investment Company
FinCEN	Financial Crimes Enforcement Network	SEC	Securities and Exchange Commission
FNMA	Federal National Mortgage Association	SERP	Supplemental Executive Retirement Plan
FOMC	Federal Open Market Committee	SOFR	Secured Overnight Financing Rate
FRB	Federal Reserve Bank	SR	Supervision and Regulation Letters
FVO	Fair Value Option	TDR	Troubled Debt Restructuring
GAAP	U.S. Generally Accepted Accounting Principles	TEB	Tax Equivalent Basis
GNMA	Government National Mortgage Association	TSR	Total Shareholder Return
GSE	Government-Sponsored Enterprise	XBRL	eXtensible Business Reporting Language

Table of Contents

Item 1.Financial Statements

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS


	September 30, 2020		December 31, 2019
	(Unaudited)

	(in thousands, except shares and per share amounts)
Assets:
Cash and due from banks	$	163,893	$	185,977

Interest-bearing deposits in other financial institutions	1,254,842		248,619

Cash, cash equivalents, and restricted cash	1,418,735		434,596

Investment securities - AFS, at fair value; amortized cost of $3,876,586 at September 30, 2020 and $3,317,928 at December 31, 2019	3,975,225		3,346,310
Investment securities - HTM, at amortized cost; fair value of $548,140 at September 30, 2020 and $516,261 at December 31, 2019	504,477		485,107
Less: allowance for credit losses	(5,964)		—
Net HTM investment securities	498,513		485,107
Investment securities - equity	160,561		138,701
Investments in restricted stock, at cost	66,843		66,509
Loans - HFS	20,764		21,803
Loans, net of deferred loan fees and costs	25,993,254		21,101,493
Less: allowance for credit losses	(310,560)		(167,797)
Net loans held for investment	25,682,694		20,933,696
Premises and equipment, net	128,256		125,838
Operating lease right of use asset	71,393		72,558
Bank owned life insurance	175,478		174,046
Goodwill and intangible assets, net	298,987		297,608
Deferred tax assets, net	46,645		18,025
Investments in LIHTC and renewable energy	414,305		409,365

Other assets	377,107		297,786
Total assets	$	33,335,506	$	26,821,948
Liabilities:
Deposits:
Non-interest-bearing demand	$	13,013,014	$	8,537,905
Interest-bearing	15,830,382		14,258,588
Total deposits	28,843,396		22,796,493
Customer repurchase agreements	19,688		16,675

Other borrowings	10,000		—
Qualifying debt	618,772		393,563
Operating lease liability	78,613		78,112
Other liabilities	540,991		520,357
Total liabilities	30,111,460		23,805,200
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock - par value $0.0001; 200,000,000 authorized; 102,993,777 shares issued at September 30, 2020 and 104,527,544 at December 31, 2019	10		10
Treasury stock, at cost (2,168,437 shares at September 30, 2020 and 2,003,873 shares at December 31, 2019)	(71,098)		(62,728)
Additional paid in capital	1,383,537		1,374,141
Accumulated other comprehensive income	78,585		25,008
Retained earnings	1,833,012		1,680,317
Total stockholders’ equity	3,224,046		3,016,748
Total liabilities and stockholders’ equity	$	33,335,506	$	26,821,948

See accompanying Notes to Unaudited Consolidated Financial Statements.

Table of Contents

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except per share amounts)
Interest income:
Loans, including fees	$	276,623	$	278,932	$	843,085	$	808,099
Investment securities	26,323		28,928		79,778		84,929
Dividends	1,397		1,289		4,305		4,452
Other	500		6,459		3,129		12,144
Total interest income	304,843		315,608		930,297		909,624
Interest expense:
Deposits	12,215		43,354		59,736		121,030
Other borrowings	5		34		75		1,344
Qualifying debt	7,872		5,785		17,833		17,898
Other	13		13		495		913
Total interest expense	20,105		49,186		78,139		141,185
Net interest income	284,738		266,422		852,158		768,439
Provision for credit losses	14,661		3,803		157,837		15,303
Net interest income after provision for credit losses	270,077		262,619		694,321		753,136
Non-interest income:
Service charges and fees	5,913		5,888		17,447		17,121
Card income	1,873		1,729		4,768		5,195
Foreign currency income	1,755

EX-31.1	walex3119302020.htm
EX-31.2	walex3129302020.htm
EX-32	walex329302020.htm


		Page
PART I. FINANCIAL INFORMATION

Item 1.	Glossary of Entities and Terms	3
	Financial Statements (Unaudited)
	Consolidated Balance Sheets	4
	Consolidated Income Statements	5
	Consolidated Statements of Comprehensive Income	7
	Consolidated Statements of Stockholders’ Equity	8
	Consolidated Statements of Cash Flows	9
	Notes to Unaudited Consolidated Financial Statements	11
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	68
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	100
Item 4.	Controls and Procedures	103

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	103
Item 1A.	Risk Factors	104
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	105
Item 5.	Other Information	106
Item 6.	Exhibits	107

SIGNATURES		108

WAL 10Q Quarterly Report

Western Alliance Earnings 2020-09-30