Investor Presentaiton
Conservative, Economically Resilient Portfolio Positioning
Specialized underwriting expertise and conservative sector allocations position portfolio to withstand economic uncertainty
Insured (27%)
Resistant (27%)
Historically low-to-no-loss loan
categories
Credit protected, government
guaranteed and cash-secured
19%
Residential
9%
Warehouse Lending
Includes Core WH Lending, Note
Financing, MSR financing
3%
Equity Fund Resources
8%
1%
Warehouse Lending
Residential
• Low LTVs; DQs significantly below
national percentages
•
Equity Fund Resources
Capital Call & Subscription LOCs
Underwrite LPs behind private funds
4%
4%
Early Buyout ("EBO") Resi. &
Other Government-Guaranteed
or Cash-Secured Assets
3%
2%
CRE Industrial & Medical
1%
Avg Loss Rate: 0.00%
Max Loss Rate: 0.00%
WA
Western Alliance
Bancorporation®
Municipal/Public Finance
HOA
-
• Extremely low LTVs; lien in front of
homeowner's first mortgage
Avg Loss Rate: 0.00%
Max Loss Rate: 0.10%
Resilient (33%)
Limited uncovered collateral risk,
underwriting expertise, and strong
counterparties
7% Regional CRE - Investor
6% Regional C&I
6% Hotel Franchise Finance (ex-Central
Business District)
3% Regional CRE - Owner Occupied
2% Corporate Finance
2% Lot Banking
7% Specialized NBLs
•
-
Gaming Off-strip, middle market
gaming companies and tribal gaming
enterprises
-
Resort Timeshare resort developers;
hypothecation of consumer receivables
Other NBLS
Avg Loss Rate: 0.02%
Max Loss Rate: 0.16%
Note: Average and maximum loss rates are quarterly annualized and from the period of Q1 2014 - Q4 2022.
More Sensitive (13%)
Categories more directly correlated to
economic growth
6% Construction (ex-Lot Banking)
Focused on note-on-note financing
and Built-to-Rent developments
•
4% Tech & Innovation
•
Established tech firms with operating
and financial flexibility, validated
product, path to profitability
2% Hotel Franchise Finance (CBD
•
•
only)
Large, sophisticated hotel sponsors
who operate >25 hotels
90% operate >10 properties with top
franchisor flags
1% Small Business, CRA-Related, and
Consumer
Avg Loss Rate: 0.05%
Max Loss Rate: 0.71%
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