Western Alliance Bancorporation 8-K, filed Jan 24, 2023

Western Alliance Bancorporation (WAL)

8-K 2023-01-24 For: 2023-01-24

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Added on April 09, 2026

About this 8-K

Western Alliance Bancorporation filed this 8-K on January 24, 2023.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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99.1						Press Release dated January 2 4 , 20 23

99.2						Fourth Quarter 2022 Earnings Conference Call dated January 25, 2023

104						Cover Page Interactive Data File (embedded within the Inline XBRL document)


			WESTERN ALLIANCE BANCORPORATION
			(Registrant)


			/s/ Dale Gibbons

			Dale Gibbons
			Executive Vice President and
			Chief Financial Officer



Date:			January 24, 2023


Western Alliance Bancorporation
One East Washington Street
Phoenix, AZ 85004
www.westernalliancebancorporation.com


	Dec 31, 2022		Sep 30, 2022		Dec 31, 2021
Non-interest bearing	36.7	%	44.8	%	44.9	%
Savings and money market	36.2		34.6		36.3
Interest-bearing demand	17.7		15.0		14.5
Certificates of deposit	9.4		5.6		4.3


Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited


Selected Balance Sheet Data:
							As of December 31,
							2022		2021		Change %
							(in millions)
Total assets							$	67,734	$	55,983	21.0	%
Loans held for sale							1,184		5,635		(79.0)
HFI loans, net of deferred fees							51,862		39,075		32.7
Investment securities							8,760		7,541		16.2
Total deposits							53,644		47,612		12.7
Borrowings							6,299		1,502		NM
Qualifying debt							893		896		(0.3)
Stockholders' equity							5,356		4,963		7.9
Tangible common equity, net of tax (1)							4,383		4,035		8.6
Common equity Tier 1 capital							5,073		4,068		24.7

Selected Income Statement Data:
	For the Three Months Ended December 31,						For the Year Ended December 31,
	2022		2021		Change %		2022		2021		Change %
	(in millions, except per share data)						(in millions, except per share data)
Interest income	$	888.3	$	483.3	83.8	%	$	2,691.8	$	1,658.7	62.3	%
Interest expense	248.6		32.7		NM		475.5		109.9		NM
Net interest income	639.7		450.6		42.0		2,216.3		1,548.8		43.1
Provision for (recovery of) credit losses	3.1		13.2		(76.5)		68.1		(21.4)		NM
Net interest income after provision for credit losses	636.6		437.4		45.5		2,148.2		1,570.2		36.8
Non-interest income	61.5		110.4		(44.3)		324.6		404.2		(19.7)
Non-interest expense	333.4		237.8		40.2		1,156.7		851.4		35.9
Income before income taxes	364.7		310.0		17.6		1,316.1		1,123.0		17.2
Income tax expense	71.7		64.0		12.0		258.8		223.8		15.6
Net income	293.0		246.0		19.1		1,057.3		899.2		17.6
Dividends on preferred stock	3.2		3.5		(8.6)		12.8		3.5		NM
Net income available to common stockholders	$	289.8	$	242.5	19.5		$	1,044.5	$	895.7	16.6
Diluted earnings per common share	$	2.67	$	2.32	15.1		$	9.70	$	8.67	11.9


Selected Performance Ratios:
Return on average assets (2)	1.67	%	1.69	%	(1.2)	%	1.62	%	1.83	%	(11.5)	%
Return on average tangible common equity (1, 2)	27.0		25.8		4.7		25.4		26.2		(3.1)
Return on average tangible common equity, excluding AOCI (1, 2)	23.1		26.0		(11.2)		23.1		26.6		(13.2)
Net interest margin (2)	3.98		3.33		19.5		3.67		3.41		7.6
Efficiency ratio - tax equivalent basis (1)	46.9		41.8		12.2		44.9		42.9		4.7
Loan to deposit ratio	96.7		82.1		17.8

Asset Quality Ratios:
Net charge-offs (recoveries) to average loans outstanding (2)	0.01	%	0.02	%	(50.0)	%	0.00	%	0.02	%	NM
Nonaccrual loans to funded HFI loans	0.16		0.19		(15.8)
Nonaccrual loans and repossessed assets to total assets	0.14		0.15		(6.7)

Allowance for loan losses to funded HFI loans	0.60		0.65		(7.7)
Allowance for loan losses to nonaccrual HFI loans	364		348		4.6


Capital Ratios:

	Dec 31, 2022		Sep 30, 2022		Dec 31, 2021
Tangible common equity (1)	6.5	%	5.9	%	7.3	%
Common Equity Tier 1 (3)	9.3		8.7		9.1
Tier 1 Leverage ratio (3)	7.8		7.5		7.8
Tier 1 Capital (3)	10.0		9.3		9.9
Total Capital (3)	12.1		11.4		12.3


Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
	Three Months Ended December 31,				Year Ended December 31,
	2022		2021		2022		2021
	(dollars in millions, except per share data)
Interest income:
Loans	$	785.1	$	438.6	$	2,393.4	$	1,488.8
Investment securities	89.4		43.7		272.6		164.7
Other	13.8		1.0		25.8		5.2
Total interest income	888.3		483.3		2,691.8		1,658.7
Interest expense:
Deposits	157.6		12.8		276.4		47.5
Qualifying debt	9.1		9.2		35.0		33.1
Borrowings	81.9		10.7		164.1		29.3
Total interest expense	248.6		32.7		475.5		109.9
Net interest income	639.7		450.6		2,216.3		1,548.8
Provision for (recovery of) credit losses	3.1		13.2		68.1		(21.4)
Net interest income after provision for credit losses	636.6		437.4		2,148.2		1,570.2
Non-interest income:
Net gain on loan origination and sale activities	25.4		73.2		104.0		326.2
Net loan servicing revenue (expense)	21.4		2.3		130.9		(16.3)
Service charges and fees	5.9		7.1		27.0		28.3
Commercial banking related income	5.5		4.9		21.5		17.4
Income from equity investments	4.2		5.2		17.8		22.1
Gain on recovery from credit guarantees	3.0		7.2		14.7		7.2
Gain on sales of investment securities	0.1		8.3		6.8		8.3
Fair value loss adjustments on assets measured at fair value, net	(9.2)		(0.8)		(28.6)		(1.3)
Other	5.2		3.0		30.5		12.3
Total non-interest income	61.5		110.4		324.6		404.2
Non-interest expenses:
Salaries and employee benefits	125.7		120.6		539.5		466.7
Deposit costs	82.2		9.1		165.8		29.8
Legal, professional, and directors' fees	26.0		20.8		99.9		58.6
Data processing	23.9		17.9		83.0		58.2
Occupancy	15.8		12.4		55.5		43.8
Loan servicing expenses	14.8		15.6		55.5		53.5
Insurance	8.9		7.1		31.1		23.0
Business development and marketing	7.3		6.1		22.1		13.5
Loan acquisition and origination expenses	4.4		8.6		23.1		28.8
Loss on extinguishment of debt	—		5.9		—		5.9
Net gain on sales and valuations of repossessed and other assets	(0.3)		(0.4)		(0.7)		(3.5)
Acquisition and restructure expenses (recoveries)	—		(3.2)		0.4		15.3
Other	24.7		17.3		81.5		57.8
Total non-interest expense	333.4		237.8		1,156.7		851.4
Income before income taxes	364.7		310.0		1,316.1		1,123.0
Income tax expense	71.7		64.0		258.8		223.8
Net income	293.0		246.0		1,057.3		899.2
Dividends on preferred stock	3.2		3.5		12.8		3.5
Net income available to common stockholders	$	289.8	$	242.5	$	1,044.5	$	895.7

Earnings per common share:
Diluted shares	108.4		104.5		107.6		103.3
Diluted earnings per share	$	2.67	$	2.32	$	9.70	$	8.67


Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
	Three Months Ended
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021
	(in millions, except per share data)
Interest income:
Loans	$	785.1	$	657.0	$	516.6	$	434.7	$	438.6
Investment securities	89.4		75.9		59.3		48.0		43.7
Other	13.8		6.5		3.7		1.8		1.0
Total interest income	888.3		739.4		579.6		484.5		483.3
Interest expense:
Deposits	157.6		77.6		27.1		14.1		12.8
Qualifying debt	9.1		8.9		8.6		8.4		9.2
Borrowings	81.9		50.8		18.9		12.5		10.7
Total interest expense	248.6		137.3		54.6		35.0		32.7
Net interest income	639.7		602.1		525.0		449.5		450.6
Provision for credit losses	3.1		28.5		27.5		9.0		13.2
Net interest income after provision for credit losses	636.6		573.6		497.5		440.5		437.4
Non-interest income:
Net gain on loan origination and sale activities	25.4		14.5		27.2		36.9		73.2
Net loan servicing revenue	21.4		23.0		45.4		41.1		2.3
Service charges and fees	5.9		6.5		7.6		7.0		7.1
Commercial banking related income	5.5		5.1		5.8		5.1		4.9
Income from equity investments	4.2		4.3		5.2		4.1		5.2
Gain on recovery from credit guarantees	3.0		0.4		9.0		2.3		7.2
Gain (loss) on sales of investment securities	0.1		—		(0.2)		6.9		8.3
Fair value loss adjustments on assets measured at fair value, net	(9.2)		(2.8)		(10.0)		(6.6)		(0.8)
Other	5.2		10.8		5.0		9.5		3.0
Total non-interest income	61.5		61.8		95.0		106.3		110.4
Non-interest expenses:
Salaries and employee benefits	125.7		136.5		139.0		138.3		120.6
Deposit costs	82.2		56.2		18.1		9.3		9.1
Legal, professional, and directors' fees	26.0		24.8		25.1		24.0		20.8
Data processing	23.9		21.8		19.7		17.6		17.9
Occupancy	15.8		13.9		13.0		12.8		12.4
Loan servicing expenses	14.8		15.2		14.7		10.8		15.6
Insurance	8.9		8.1		6.9		7.2		7.1
Business development and marketing	7.3		5.0		5.4		4.4		6.1
Loan acquisition and origination expenses	4.4		5.8		6.4		6.5		8.6
Net (gain) loss on sales and valuations of repossessed and other assets	(0.3)		(0.2)		(0.3)		0.1		(0.4)
Loss on extinguishment of debt	—		—		—		—		5.9
Acquisition and restructure expenses (recoveries)	—		—		—		0.4		(3.2)
Other	24.7		18.7		20.9		17.2		17.3
Total non-interest expense	333.4		305.8		268.9		248.6		237.8
Income before income taxes	364.7		329.6		323.6		298.2		310.0
Income tax expense	71.7		65.6		63.4		58.1		64.0
Net income	293.0		264.0		260.2		240.1		246.0
Dividends on preferred stock	3.2		3.2		3.2		3.2		3.5
Net income available to common stockholders	$	289.8	$	260.8	$	257.0	$	236.9	$	242.5

Earnings per common share:
Diluted shares	108.4		107.9		107.7		106.6		104.5
Diluted earnings per share	$	2.67	$	2.42	$	2.39	$	2.22	$	2.32


Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
	Dec 31, 2022		Sep 30, 2022		Jun 30, 2022		Mar 31, 2022		Dec 31, 2021
	(in millions)
Assets:
Cash and due from banks	$	1,043	$	1,610	$	1,886	$	2,602	$	516
Investment securities	8,760		8,603		8,802		8,277		7,541
Loans held for sale	1,184		2,204		2,803		4,762		5,635
Loans held for investment:
Commercial and industrial	20,710		22,318		20,754		17,862		18,297
Commercial real estate - non-owner occupied	9,319		8,668		7,775		6,849		6,526
Commercial real estate - owner occupied	1,818		1,848		1,848		1,805		1,898
Construction and land development	4,013		3,621		3,231		3,278		3,023
Residential real estate	15,928		15,674		14,908		11,270		9,282
Consumer	74		72		56		55		49
Loans HFI, net of deferred fees	51,862		52,201		48,572		41,119		39,075
Allowance for loan losses	(310)		(304)		(273)		(258)		(252)
Loans HFI, net of deferred fees and allowance	51,552		51,897		48,299		40,861		38,823
Mortgage servicing rights	1,148		1,044		826		950		698
Premises and equipment, net	276		237		210		196		182
Operating lease right-of-use asset	163		131		136		142		133
Other assets acquired through foreclosure, net	11		11		12		12		12
Bank owned life insurance	182		181		180		179		180
Goodwill and other intangibles, net	680		682		695		698		635
Other assets	2,735		2,565		2,206		1,897		1,628
Total assets	$	67,734	$	69,165	$	66,055	$	60,576	$	55,983
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits	$	19,691	$	24,926	$	23,721	$	23,520	$	21,353
Interest bearing:
Demand	9,507		8,350		8,387		8,268		6,924
Savings and money market	19,397		19,202		19,026		18,553		17,279
Certificates of deposit	5,049		3,111		2,578		1,818		2,056
Total deposits	53,644		55,589		53,712		52,159		47,612



Borrowings	6,299		6,319		5,210		833		1,502
Qualifying debt	893		889		891		893		896
Operating lease liability	185		149		151		155		143
Accrued interest payable and other liabilities	1,357		1,198		1,132		1,524		867
Total liabilities	62,378		64,144		61,096		55,564		51,020
Stockholders' Equity:
Preferred stock	295		295		295		295		295
Common stock and additional paid-in capital	2,058		2,049		1,990		1,979		1,879
Retained earnings	3,664		3,413		3,192		2,973		2,773
Accumulated other comprehensive (loss) income	(661)		(736)		(518)		(235)		16
Total stockholders' equity	5,356		5,021		4,959		5,012		4,963
Total liabilities and stockholders' equity	$	67,734	$	69,165	$	66,055	$	60,576	$	55,983


Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
	Three Months Ended
	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
	(in millions)
Allowance for loan losses
Balance, beginning of period	$	304.1		$	273.2		$	257.6		$	252.5		$	246.9
Provision for credit losses (1)	7.4			29.0			17.0			5.3			7.0
Recoveries of loans previously charged-off:
Commercial and industrial	0.3			3.8			0.8			2.4			1.8
Commercial real estate - non-owner occupied	—			0.1			—			—			0.3
Commercial real estate - owner occupied	0.1			—			0.1			—			—
Construction and land development	—			0.1			—			—			—
Residential real estate	—			—			0.1			—			0.4
Consumer	—			—			—			—			—
Total recoveries	0.4			4.0			1.0			2.4			2.5
Loans charged-off:
Commercial and industrial	1.1			2.1			2.4			2.6			3.8
Commercial real estate - non-owner occupied	—			—			—			—			—
Commercial real estate - owner occupied	0.5			—			—			—			—
Construction and land development	0.6			—			—			—			—
Residential real estate	—			—			—			—			0.1
Consumer	—			—			—			—			—
Total loans charged-off	2.2			2.1			2.4			2.6			3.9
Net loan charge-offs (recoveries)	1.8			(1.9)			1.4			0.2			1.4
Balance, end of period	$	309.7		$	304.1		$	273.2		$	257.6		$	252.5

Allowance for unfunded loan commitments
Balance, beginning of period	$	52.1		$	53.8		$	43.3		$	37.6		$	32.1
(Recovery of) provision for credit losses (1)	(5.1)			(1.7)			10.5			5.7			5.5
Balance, end of period (2)	$	47.0		$	52.1		$	53.8		$	43.3		$	37.6

Components of the allowance for credit losses on loans
Allowance for loan losses	$	309.7		$	304.1		$	273.2		$	257.6		$	252.5
Allowance for unfunded loan commitments	47.0			52.1			53.8			43.3			37.6
Total allowance for credit losses on loans	$	356.7		$	356.2		$	327.0		$	300.9		$	290.1

Net charge-offs (recoveries) to average loans - annualized	0.01		%	(0.02)		%	0.01		%	0.00		%	0.02		%

Allowance ratios
Allowance for loan losses to funded HFI loans (3)	0.60		%	0.58		%	0.56		%	0.63		%	0.65		%

Allowance for credit losses to funded HFI loans (3)	0.69			0.68			0.67			0.73			0.74

Allowance for loan losses to nonaccrual HFI loans	364			338			321			283			346
Allowance for credit losses to nonaccrual HFI loans	420			396			385			331			397


Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
	Three Months Ended
	Dec 31, 2022			Sep 30, 2022			Jun 30, 2022			Mar 31, 2022			Dec 31, 2021
	(in millions)



































Nonaccrual loans and repossessed assets
Nonaccrual loans	$	85		$	90		$	85		$	91		$	73
Nonaccrual loans to funded HFI loans	0.16		%	0.17		%	0.17		%	0.22		%	0.19		%
Repossessed assets	$	11		$	11		$	12		$	12		$	12
Nonaccrual loans and repossessed assets to total assets	0.14		%	0.15		%	0.15		%	0.17		%	0.15		%

Loans Past Due



Loans past due 90 days, still accruing (1)	$	—		$	—		$	—		$	—		$	—
Loans past due 90 days, still accruing to funded HFI loans	—		%	—		%	—		%	—		%	—		%




Loans past due 30 to 89 days, still accruing (2)	$	70		$	56		$	117		$	58		$	53
Loans past due 30 to 89 days, still accruing to funded HFI loans	0.13		%	0.11		%	0.24		%	0.14		%	0.13		%

Other credit quality metrics
Special mention loans	$	351		$	312		$	317		$	350		$	331
Special mention loans to funded HFI loans	0.68		%	0.60		%	0.65		%	0.85		%	0.85		%

Classified loans on accrual	$	280		$	268		$	232		$	253		$	216
Classified loans on accrual to funded HFI loans	0.54		%	0.51		%	0.48		%	0.61		%	0.55		%
Classified assets	$	393		$	385		$	346		$	365		$	301
Classified assets to total assets	0.58		%	0.56		%	0.52		%	0.60		%	0.54		%


Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Three Months Ended
	December 31, 2022						September 30, 2022
	Average Balance		Interest		Average Yield / Cost		Average Balance		Interest		Average Yield / Cost
	($ in millions)						($ in millions)
Interest earning assets
Loans held for sale	$	2,659	$	37.8	5.63	%	$	3,993	$	49.0	4.87	%
Loans held for investment:
Commercial and industrial	21,654		349.3		6.45		21,551		282.1		5.25
CRE - non-owner occupied	9,077		148.8		6.51		8,128		111.4		5.44
CRE - owner occupied	1,830		24.4		5.39		1,839		23.3		5.12
Construction and land development	3,798		80.2		8.38		3,471		59.5		6.80
Residential real estate	15,803		143.5		3.60		15,125		130.9		3.43
Consumer	71		1.1		6.26		63		0.8		5.32
Total HFI loans (1), (2), (3)	52,233		747.3		5.70		50,177		608.0		4.84
Securities:
Securities - taxable	6,397		68.4		4.25		6,680		56.4		3.35
Securities - tax-exempt	2,068		21.0		5.07		2,047		19.5		4.73
Total securities (1)	8,465		89.4		4.45		8,727		75.9		3.66
Cash and other	1,361		13.8		4.02		1,239		6.5		2.07
Total interest earning assets	64,718		888.3		5.50		64,136		739.4		4.62
Non-interest earning assets
Cash and due from banks	289						242
Allowance for credit losses	(308)						(282)
Bank owned life insurance	181						180
Other assets	4,613						4,100
Total assets	$	69,493					$	68,376
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	8,754	$	43.6	1.98	%	$	8,466	$	24.5	1.15	%
Savings and money market	18,651		88.0		1.87		18,515		44.5		0.95
Certificates of deposit	4,260		26.0		2.42		2,843		8.6		1.19
Total interest-bearing deposits	31,665		157.6		1.97		29,824		77.6		1.03
Short-term borrowings	5,440		54.8		3.99		4,136		27.0		2.59
Long-term debt	1,240		27.1		8.68		1,228		23.8		7.69
Qualifying debt	890		9.1		4.08		891		8.9		3.94
Total interest-bearing liabilities	39,235		248.6		2.51		36,079		137.3		1.51
Interest cost of funding earning assets					1.52						0.84
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	23,729						25,865
Other liabilities	1,296						1,282
Stockholders’ equity	5,233						5,150
Total liabilities and stockholders' equity	$	69,493					$	68,376
Net interest income and margin (4)			$	639.7	3.98	%			$	602.1	3.78	%


Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited

Balance Sheet:
	Consolidated Company		Commercial		Consumer Related		Corporate & Other
At December 31, 2022:	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	9,803	$	12	$	—	$	9,791
Loans held for sale	1,184		—		1,184		—
Loans, net of deferred fees and costs	51,862		31,414		20,448		—
Less: allowance for credit losses	(310)		(262)		(48)		—
Total loans	51,552		31,152		20,400		—
Other assets acquired through foreclosure, net	11		11		—		—
Goodwill and other intangible assets, net	680		293		387		—
Other assets	4,504		435		2,180		1,889
Total assets	$	67,734	$	31,903	$	24,151	$	11,680
Liabilities:
Deposits	$	53,644	$	29,494	$	18,492	$	5,658
Borrowings and qualifying debt	7,192		27		340		6,825
Other liabilities	1,542		83		656		803
Total liabilities	62,378		29,604		19,488		13,286
Allocated equity:	5,356		2,684		1,691		981
Total liabilities and stockholders' equity	$	67,734	$	32,288	$	21,179	$	14,267
Excess funds provided (used)	—		385		(2,972)		2,587

No. of offices	56		46		8		2
No. of full-time equivalent employees	3,365		671		785		1,909

Income Statement:

Three Months Ended December 31, 2022:	(in millions)
Net interest income	$	639.7	$	428.0	$	216.4	$	(4.7)
Provision for (recovery of) credit losses	3.1		(5.9)		8.2		0.8
Net interest income (expense) after provision for credit losses	636.6		433.9		208.2		(5.5)
Non-interest income	61.5		8.7		49.2		3.6
Non-interest expense	333.4		122.1		187.6		23.7
Income (loss) before income taxes	364.7		320.5		69.8		(25.6)
Income tax expense (benefit)	71.7		76.1		16.3		(20.7)
Net income (loss)	$	293.0	$	244.4	$	53.5	$	(4.9)

Year Ended December 31, 2022:	(in millions)
Net interest income	$	2,216.3	$	1,546.3	$	854.1	$	(184.1)
Provision for (recovery of) credit losses	68.1		47.2		21.1		(0.2)
Net interest income (expense) after provision for credit losses	2,148.2		1,499.1		833.0		(183.9)
Non-interest income	324.6		59.7		247.2		17.7
Non-interest expense	1,156.7		463.5		630.1		63.1
Income (loss) before income taxes	1,316.1		1,095.3		450.1		(229.3)
Income tax expense (benefit)	258.8		260.5		107.1		(108.8)
Net income (loss)	$	1,057.3	$	834.8	$	343.0	$	(120.5)


Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited


LINKED-QUARTER BASIS			FULL YEAR



FINANCIAL HIGHLIGHTS:


FINANCIAL POSITION RESULTS:


LOANS AND ASSET QUALITY:


KEY PERFORMANCE METRICS:


Pre-Provision Net Revenue by Quarter:
	Three Months Ended
	12/31/2022		9/30/2022		6/30/2022		3/31/2022		12/31/2021
	(in millions)
Net interest income	$	639.7	$	602.1	$	525.0	$	449.5	$	450.6
Total non-interest income	61.5		61.8		95.0		106.3		110.4
Net revenue	$	701.2	$	663.9	$	620.0	$	555.8	$	561.0
Total non-interest expense	333.4		305.8		268.9		248.6		237.8




Pre-provision net revenue (1)	$	367.8	$	358.1	$	351.1	$	307.2	$	323.2
Less:


Provision for credit losses	3.1		28.5		27.5		9.0		13.2
Income tax expense	71.7		65.6		63.4		58.1		64.0
Net income	$	293.0	$	264.0	$	260.2	$	240.1	$	246.0





Efficiency Ratio by Quarter:
Total non-interest expense	$	333.4		$	305.8		$	268.9		$	248.6		$	237.8
Divided by:
Total net interest income	639.7			602.1			525.0			449.5			450.6
Plus:
Tax equivalent interest adjustment	9.0			8.5			8.2			8.0			8.4
Total non-interest income	61.5			61.8			95.0			106.3			110.4
	$	710.2		$	672.4		$	628.2		$	563.8		$	569.4
Efficiency ratio - tax equivalent basis (2)	46.9		%	45.5		%	42.8		%	44.1		%	41.8		%


Tangible Common Equity:
	12/31/2022			9/30/2022			6/30/2022			3/31/2022			12/31/2021
	(dollars and shares in millions)
Total stockholders' equity	$	5,356		$	5,021		$	4,959		$	5,012		$	4,963
Less:
Goodwill and intangible assets	680			682			695			698			635
Preferred stock	295			295			295			295			295
Total tangible common equity	4,381			4,044			3,969			4,019			4,033
Plus: deferred tax - attributed to intangible assets	2			3			2			2			2
Total tangible common equity, net of tax	$	4,383		$	4,047		$	3,971		$	4,021		$	4,035
Total assets	$	67,734		$	69,165		$	66,055		$	60,576		$	55,983
Less: goodwill and intangible assets, net	680			682			695			698			635
Tangible assets	67,054			68,483			65,360			59,878			55,348
Plus: deferred tax - attributed to intangible assets	2			3			2			2			2
Total tangible assets, net of tax	$	67,056		$	68,486		$	65,362		$	59,880		$	55,350
Tangible common equity ratio (3)	6.5		%	5.9		%	6.1		%	6.7		%	7.3		%
Common shares outstanding	108.9			108.9			108.3			108.3			106.6
Tangible book value per share, net of tax (3)	$	40.25		$	37.16		$	36.67		$	37.13		$	37.84


Non-GAAP Financial Measures Footnotes

(1)			We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2)			We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3)			We believe this non-GAAP metric provides an important metric with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.