Western Alliance Bank Issues Updated Financial Figures in Wake of Industry Developments
March 10, 2023
PHOENIX--(BUSINESS WIRE)-- Western Alliance Bank (NYSE: WAL), in light of recent industry events, updates the following financial (unaudited) information:
Deposits remain strong with the following balances, as of 3/9/2023:
Total deposits of $61.5 billion, an increase of $7.8 billion since year end, led by our deposit verticals of Settlement Services, Home Owner Associations and Mortgage Warehouse. The company expects deposits to moderately decline from these levels by quarter end due to typical seasonal and monthly activity
Total technology-related deposits of $6.5 billion, which are down $201 million quarter to date, as of 3/9/2023
Total Equity Fund Resources & Life Sciences deposits of $1.5 billion, which are up $118 million quarter to date, as of 3/9/2023
Liquidity remains robust with available liquidity, as of 3/9/2023:
Cash held on balance sheet of approximately $2.5 billion, as of 3/9/2023
Fully collateralized credit facility from the Federal Home Loan Bank of San Francisco of $13.1 billion with a $0 balance, as of 3/9/2023
Uncommitted credit lines from various financial institutions of $4.6 billion with a $198 million balance, as of 3/9/2023
Fully collateralized credit facility from the Federal Reserve Bank of San Francisco of $5.2 billion with a $0 balance, as of 3/9/2023
Unpledged available for sale marketable securities of $5.3 billion with an adverse mark of $383 million already captured in Accumulated Other Comprehensive Income (AOCI), as of 2/28/2023, that could be liquidated or pledged to provide additional liquidity, if needed
Held to maturity securities of less than 2% of assets with an unrecognized adverse mark of only $192 million, as of 2/28/2023
Capital remains strong with CET1 of 9.32%, as of 12/31/2022. We expect CET1 to continue to rise from year end levels to 9.5% or higher at first quarter end
Asset quality remains excellent, and we have experienced no significant changes since year end, including classified assets, non-performing assets, and charge-offs
Furthermore, Western Alliance affirms its full-year deposit growth guidance of 13% – 17%
Western Alliance Bank
With more than $70 billion in assets, Western Alliance Bancorporation is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, offers a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by banking and mortgage experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2023 by American Banker and Bank Director. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands and has offices in key markets nationwide.
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. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, including deposit balances and capital ratios, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the Securities and Exchange Commission; the potential adverse effects of 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; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.