WESTERN ALLIANCE BANCORPORATION ITEM 8.01. OTHER EVENTS.
Change in Reportable Segments.
Western Alliance Bancorporation (together with its consolidated subsidiaries, referred to herein as "WAL", or "the Company") has made certain changes to its reportable segments effectiveOctober 1, 2020 . This change is consistent with how WAL's senior executive officers now evaluate operating performance, allocate resources, implement suitable risk oversight practices, and assess appropriateness of products and services offered to our clients. Prior to the fourth quarter of 2020, the Company had the following reportable segments: ?Four regional banking segments:Arizona ,Nevada ,Southern California , andNorthern California ?Five National Business Lines ("NBL") segments: Homeowner Associations ("HOA") Services,Hotel Franchise Finance ("HFF"), Public & Nonprofit Finance, Technology & Innovation, and Other NBLs ?Corporate & Other Beginning with the fourth quarter of 2020, the Company will provide financial results for the following three reportable segments: ?Commercial ?Consumer Related ?Corporate & Other
--------------------------------------------------------------------------------
The primary changes made were as follows:
[[Image Removed: wal-20210119_g1.jpg]]
The Commercial segment provides commercial banking and treasury management
products and services to small and middle-market businesses, specialized banking
services to sophisticated commercial institutions and investors within niche
industries, as well as financial services to the real estate industry.
The Consumer Related segment provides commercial banking services to enterprises in consumer-related sectors as well as consumer banking activities, such as residential mortgage banking.
The Corporate & Other segment consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.
These changes in reportable segments are effective beginningOctober 1, 2020 and have no impact on the Company's historical consolidated financial position and results of operations. Prior period segment results have been restated to conform to the new reportable segments. --------------------------------------------------------------------------------
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. Prior period results are presented on a comparable basis in the following tables:
Western Alliance Bancorporation and Subsidiaries Operating Segment Results Unaudited Balance Sheets: Consumer Corporate & Consolidated Commercial Related Other Company (in millions) AtSeptember 30, 2020 : Loans, net of deferred loan fees and costs$ 19,590.3 $ 6,419.6 $ 4.1 $ 26,014.0 Allowance for credit losses (296.4) (14.1) - (310.5) Deposits 19,888.6 8,035.6 919.2 28,843.4 At June 30, 2020: Loans, net of deferred loan fees and costs$ 19,329.4 $ 5,699.6 $ 0.4 $ 25,029.4 Allowance for credit losses (292.8) (17.6) (0.1) (310.5) Deposits 19,220.8 6,962.4 1,361.4 27,544.6 At March 31, 2020:
Loans, net of deferred loan fees and costs
$ 3.6 $ 23,166.2 Allowance for credit losses (208.7) (26.6) - (235.3) Deposits 17,546.1 6,510.1 774.5 24,830.7 AtDecember 31, 2019 : Loans, net of deferred loan fees and costs$ 16,767.3 $ 4,352.5 $ 3.5 $ 21,123.3 Allowance for credit losses (134.2) (33.6) - (167.8) Deposits 17,067.6 4,644.7 1,084.2 22,796.5
--------------------------------------------------------------------------------Western Alliance Bancorporation and Subsidiaries Operating Segment Results Unaudited Income Statements: Quarterly Results Consumer Corporate & Consolidated Commercial Related Other Company (in millions) Three Months EndedSeptember 30, 2020 : Net interest income$ 245.5 $ 80.7 $ (41.5) $ 284.7 Provision for (recovery of) credit losses 20.1 (3.7) (1.8) 14.6 Net interest income after provision for credit losses 225.4 84.4 (39.7) 270.1 Non-interest income 13.4 0.5 6.7 20.6 Non-interest expense 77.3 21.1 25.7 124.1 Income (loss) before income taxes 161.5 63.8 (58.7) 166.6 Income tax expense (benefit) 39.0 15.1 (23.3) 30.8 Net income$ 122.5 $ 48.7 $ (35.4) $ 135.8 Three Months EndedJune 30, 2020 : Net interest income$ 254.9 $ 72.4 $ (28.9) $ 298.4 Provision for (recovery of) credit losses 97.9 (10.5) 4.6 92.0 Net interest income after provision for credit losses 157.0 82.9 (33.5) 206.4 Non-interest income 9.6 0.4 11.3 21.3 Non-interest expense 71.2 21.2 22.4 114.8 Income (loss) before income taxes 95.4 62.1 (44.6) 112.9 Income tax expense (benefit) 22.9 14.7 (18.0) 19.6 Net income$ 72.5 $ 47.4 $ (26.6) $ 93.3 Three Months EndedMarch 31, 2020 : Net interest income$ 228.5 $ 55.7 $ (15.2) $ 269.0 Provision for (recovery of) credit losses 47.9 3.0 0.3 51.2 Net interest income after provision for credit losses 180.6 52.7 (15.5) 217.8 Non-interest income 11.4 0.4 (6.7) 5.1 Non-interest expense 82.4 25.8 12.3 120.5 Income (loss) before income taxes 109.6 27.3 (34.5) 102.4 Income tax expense (benefit) 26.0 6.4 (13.9) 18.5 Net income$ 83.6 $ 20.9 $ (20.6) $ 83.9 Three Months EndedDecember 31, 2019 : Net interest income$ 225.8 $ 57.1 $ (10.9) $ 272.0 Provision for (recovery of) credit losses 3.4 0.6 - 4.0 Net interest income after provision for credit losses 222.4 56.5 (10.9) 268.0 Non-interest income 14.0 0.3 1.7 16.0 Non-interest expense 85.1 25.7 18.9 129.7 Income (loss) before income taxes 151.3 31.1 (28.1) 154.3 Income tax expense (benefit) 36.7 7.2 (17.7) 26.2 Net income$ 114.6 $ 23.9 $ (10.4) $ 128.1
--------------------------------------------------------------------------------
Western Alliance Bancorporation and Subsidiaries Operating Segment Results Unaudited Year-to-Date Results Consumer Corporate & Consolidated Commercial Related Other Company (in millions) Nine Months EndedSeptember 30, 2020 : Net interest income$ 728.9 $
208.8
165.9 (11.2) 3.1 157.8
Net interest income after provision for
credit losses 563.0 220.0 (88.7) 694.3
Non-interest income 34.4 1.3 11.3 47.0
Non-interest expense 230.9 68.1 60.4 359.4
Income (loss) before income taxes 366.5 153.2 (137.8) 381.9
Income tax expense (benefit) 87.9 36.2 (55.2) 68.9
Net income $ 278.6 $ 117.0 $ (82.6) $ 313.0
Year Ended December 31, 2019 :
Net interest income $ 837.2 $ 209.0 $ (5.8) $ 1,040.4
Provision for (recovery of) credit
losses 11.1 7.4 0.8 19.3
Net interest income after provision for
credit losses 826.1 201.6 (6.6) 1,021.1
Non-interest income 50.4 1.4 13.3 65.1
Non-interest expense 320.6 96.7 64.7 482.0
Income (loss) before income taxes 555.9 106.3 (58.0) 604.2
Income tax expense (benefit) 134.7 24.8 (54.5) 105.0
Net income $ 421.2 $ 81.5 $ (3.5) $ 499.2 --------------------------------------------------------------------------------
© Edgar Online, source
