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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	2020-06-30	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	2020-07-28	Other Events, Exhibits
8-K	2020-07-16	Earnings, Exhibits
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 2020-06-30

Balance Sheet	Income Statement	Cash Flow

Document

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 June 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 July 27, 2020, Western Alliance Bancorporation had 100,836,148 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	HFI	Held for Investment
ALCO	Asset and Liability Management Committee	HTM	Held-to-Maturity
AOCI	Accumulated Other Comprehensive Income	ICS	Insured Cash Sweep Service
APIC	Additional paid in capital	IRC	Internal Revenue Code
ASC	Accounting Standards Codification	ISDA	International Swaps and Derivatives Association
ASU	Accounting Standards Update	LGD	Loss Given Default
Basel III	Banking Supervision's December 2010 final capital framework	LIBOR	London Interbank Offered Rate
BOD	Board of Directors	LIHTC	Low-Income Housing Tax Credit
BSA	Bank Secrecy Act	MBS	Mortgage-Backed Securities
CARES Act	Coronavirus Aid, Relief and Economic Security Act	MSLP	Main Street Lending Program
CDARS	Certificate Deposit Account Registry Service	NBL	National Business Lines
CDO	Collateralized Debt Obligation	NOL	Net Operating Loss
CECL	Current Expected Credit Losses	NPV	Net Present Value
CEO	Chief Executive Officer	OCI	Other Comprehensive Income
CFO	Chief Financial Officer	OREO	Other Real Estate Owned
COVID-19	Coronavirus Disease 2019	OTTI	Other-than-Temporary Impairment
CRA	Community Reinvestment Act	PCI	Purchased Credit Impaired
CRE	Commercial Real Estate	PD	Probability of Default
EAD	Exposure at Default	PPNR	Pre-Provision Net Revenue
EPS	Earnings per share	PPP	Paycheck Protection Program
EVE	Economic Value of Equity	PPPFA	Paycheck Protection Program Flexibility Act
Exchange Act	Securities Exchange Act of 1934, as amended	REIT	Real Estate Investment Trust
FASB	Financial Accounting Standards Board	ROU	Right of use
FDIC	Federal Deposit Insurance Corporation	SBA	Small Business Administration
FHLB	Federal Home Loan Bank	SBIC	Small Business Investment Company
FHLMC	Federal Home Loan Mortgage Corporation	SEC	Securities and Exchange Commission
FinCEN	Financial Crimes Enforcement Network	SERP	Supplemental Executive Retirement Plan
FNMA	Federal National Mortgage Association	SOFR	Secured Overnight Financing Rate
FOMC	Federal Open Market Committee	SR	Supervision and Regulation Letters
FRB	Federal Reserve Bank	TDR	Troubled Debt Restructuring
FVO	Fair Value Option	TEB	Tax Equivalent Basis
GAAP	U.S. Generally Accepted Accounting Principles	TSR	Total Shareholder Return
GNMA	Government National Mortgage Association	XBRL	eXtensible Business Reporting Language
GSE	Government-Sponsored Enterprise

Table of Contents

Item 1.
Financial Statements

WESTERN ALLIANCE BANCORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



	June 30, 2020			December 31, 2019
	(Unaudited)
	(in thousands, except shares and per share amounts)
Assets:
Cash and due from banks	$	189,888		$	185,977
Interest-bearing deposits in other financial institutions	1,328,575			248,619
Cash, cash equivalents, and restricted cash	1,518,463			434,596
Investment securities - AFS, at fair value; amortized cost of $3,428,395 at June 30, 2020 and $3,317,928 at December 31, 2019	3,516,922			3,346,310
Investment securities - HTM, at amortized cost; fair value of $521,866 at June 30, 2020 and $516,261 at December 31, 2019	479,380			485,107
Less: allowance for credit losses	(7,649		)	—
Net HTM investment securities	471,731			485,107
Investment securities - equity	138,409			138,701
Investments in restricted stock, at cost	66,661			66,509
Loans - HFS	20,213			21,803
Loans, net of deferred loan fees and costs	25,009,215			21,101,493
Less: allowance for credit losses	(310,550		)	(167,797		)
Net loans held for investment	24,698,665			20,933,696
Premises and equipment, net	127,818			125,838
Operating lease right of use asset	70,332			72,558
Bank owned life insurance	174,863			174,046
Goodwill and intangible assets, net	296,860			297,608
Deferred tax assets, net	34,072			18,025
Investments in LIHTC and renewable energy	438,114			409,365
Other assets	333,273			297,786
Total assets	$	31,906,396		$	26,821,948
Liabilities:
Deposits:
Non-interest-bearing demand	$	12,235,975		$	8,537,905
Interest-bearing	15,308,611			14,258,588
Total deposits	27,544,586			22,796,493
Customer repurchase agreements	25,436			16,675
Other borrowings	10,000			—
Qualifying debt	617,729			393,563
Operating lease liability	76,904			78,112
Other liabilities	529,327			520,357
Total liabilities	28,803,982			23,805,200
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock - par value $0.0001; 200,000,000 authorized; 103,002,697 shares issued at June 30, 2020 and 104,527,544 at December 31, 2019	10			10
Treasury stock, at cost (2,154,039 shares at June 30, 2020 and 2,003,873 shares at December 31, 2019)	(70,583		)	(62,728		)
Additional paid in capital	1,376,859			1,374,141
Accumulated other comprehensive income	73,677			25,008
Retained earnings	1,722,451			1,680,317
Total stockholders’ equity	3,102,414			3,016,748
Total liabilities and stockholders’ equity	$	31,906,396		$	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 June 30,		Six Months Ended June 30,
	2020	2019	2020	2019
	(in thousands, except per share amounts)
Interest income:
Loans, including fees

EX-31.1	walex3116302020.htm
EX-31.2	walex3126302020.htm
EX-32	walex326302020.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	69
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	105
Item 6.	Exhibits	107

SIGNATURES		108

WAL 10Q Quarterly Report

Western Alliance Earnings 2020-06-30