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Mar 31, 2021

Western Alliance Q1 2021 Earnings Report

Reported record quarterly highs driven by the growing national commercial business strategy.

Key Takeaways

Western Alliance Bancorporation reported a strong first quarter in 2021, marked by record highs in key financial performance results and balance sheet growth. Loans were up by $1.7 billion and deposits increased by $6.5 billion. Net income was $192.5 million and earnings per share reached $1.90.

Balance sheet growth continued with loans up $1.7 billion (24.9% annualized), and deposits up $6.5 billion (82.1% annualized).

Total assets reached $43.4 billion, an increase of $6.9 billion from year end.

Net income was $192.5 million, with earnings per share at $1.90.

Asset quality remained stable, with nonperforming assets to total assets at 0.27% and annualized net charge-offs to average loans outstanding at a modest 0.02%.

Total Revenue
$337M
Previous year: $274M
+22.9%
EPS
$1.9
Previous year: $0.83
+128.9%
Net Interest Margin
3.37%
Previous year: 4.22%
-20.1%
Return on Tang. Common Eq.
24.2%
Previous year: 12.18%
+98.7%
Cash and Equivalents
$5.35B
Previous year: $416M
+1186.1%
Total Assets
$43.4B
Previous year: $29.2B
+48.8%

Western Alliance

Western Alliance

Forward Guidance

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.

Positive Outlook

  • Statements regarding expectations with regard to business.
  • Statements regarding expectations with regard to financial and operating results.
  • Statements regarding expectations with regard to future economic performance and dividends.
  • Statements regarding expectations with regard to the impact of the COVID-19 pandemic and related economic conditions.
  • Statements regarding the ability to successfully integrate and operate AmeriHome.

Challenges Ahead

  • Risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission.
  • Potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, including the distribution and effectiveness of COVID-19 vaccines, or other unusual and infrequently occurring events.
  • Changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business.
  • Inflation, interest rate, market and monetary fluctuations.
  • Increases in competitive pressures among financial institutions and businesses offering similar products and services.