Western Alliance Bancorporation (NYSE:WAL) Q1 2022 Earnings Conference Call April 22, 2022 12:00 PM ET

Company Participants

Miles Pondelik - Director of IR and Corporate Development

Ken Vecchione - President and CEO

Dale Gibbons - CFO

Timothy Bruckner - Chief Credit Officer

Conference Call Participants

Ebrahim Poonawala - Bank of America

Casey Haire - Jefferies

Brock Vandervliet - UBS

Brad Milsaps - Piper Sandler

Brandon King - Truist Securities

Gary Tenner - D.A. Davidson

Jon Arfstrom - RBC

Timur Braziler - Wells Fargo

Chris O'Connell - KBW

Operator

Good day, everyone. Welcome to Western Alliance Bancorporation's First Quarter 2022 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.

Miles Pondelik

Thank you, and welcome to Western Alliance Bank's first quarter 2022 conference call. Your speakers today are Ken Vecchione, President and CEO; 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 discussion of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements, please refer to the company's SEC filings, including the Form 8-K filed yesterday, which are available on the company's website.

Now for opening remarks, I'd like to turn the call over to Ken Vecchione.

Ken Vecchione

Good morning, everyone.

Besides Dale, sitting alongside of me, Tim Bruckner, our Chief Credit Officer, is also here today as well. So we had solid performance this quarter as the company passed the $60 billion asset milestone, and we're excited by the business opportunities before us.

For the first quarter, WAL generated total net revenues of $555 million, net income of $240 million and EPS of $2.22. We remain one of the most profitable banks in the industry with return on average assets and return on average tangible common equity of 1.64% and 23.9%, respectively, which will continue to support capital accumulation and strong capital levels in the quarters to come.

Balance sheet expansion continued with quarterly loan growth of $2 billion or 21.2% annualized, and deposits rose by $4.5 billion or 38.7% annualized as we continue to effectively attract and deploy liquidity. Excluding PPP runoff, loans grew $2.2 billion in the first quarter, with residential loans increasing $2 billion.