Q2 2024 Western Alliance Bancorp Earnings Call Transcript
Key Points
- Western Alliance Bancorp (WAL) reported earnings of $1.75 per share for Q2 2024, indicating strong financial performance.
- The company achieved significant core deposit growth of $4 billion and HFI loan growth of $1.7 billion, or 14% annualized from Q1.
- Net interest income grew by 39% annualized, driven by higher average earning assets and an expanding net interest margin (NIM).
- The liquidity profile was bolstered by a $1.7 billion increase in securities and cash, allowing for a reduction in borrowings and broker deposits.
- Tangible book value per share increased by 3% from March 31 to $48.79, reflecting strong retained earnings growth.
- Non-interest income decreased by $15 million quarter-over-quarter, primarily due to lower income from equity investments and softer mortgage revenue.
- Non-interest expense was $487 million, with deposit costs growing to $174 million, reflecting the elevated rate environment.
- Provision expense of $37 million was driven by loan growth above industry trends and $23 million of net charge-offs.
- The cost of interest-bearing deposits increased by 6 basis points from Q1, while the total cost of funds declined by only 3 basis points.
- Asset quality is normalizing, with total classified assets declining by $33 million but net charge-offs remaining at 18 basis points of average loans, primarily due to issues with a Downtown San Diego office property.
Good day, everyone. Welcome to Western Alliance Bancorporation's second-quarter 2024 earnings call. You may also view the presentation today via webcast through the company's website at www.westernalliancebancorporation.com.
I would now like to turn the call over to Miles Pondelik, Director of Investor Relations and Corporate Development. Please go ahead.
Thank you. Welcome to Western Alliance Bank's second-quarter 2024 conference call. Our speakers today are Ken Vecchione, President and Chief Executive Officer, and Dale Gibbons, Chief Financial Officer.
Before I hand the call over to Ken, please note that today's presentation contains forward-looking statements, which are subject to risks, uncertainties, and assumptions. Except as required by law, the company does not undertake any obligation to update any forward-looking statements. For a more complete
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