Workflow
Western Alliance Bancorporation(WAL)
icon
Search documents
Western Alliance Bancorporation(WAL) - 2024 Q1 - Quarterly Report
2024-05-02 20:38
For the quarterly period ended March 31, 2024 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from__________ to __________ Commission file number: 001-32550 WESTERN ALLIANCE BANCORPORATION (Exact name of registrant as specified in its chart ...
Western Alliance: Solid Growth And Cheap Valuation (Rating Upgrade)
Seeking Alpha· 2024-04-26 06:03
Gary Yeowell Western Alliance Bancorporation (NYSE:WAL) reported better than expected earnings for the first fiscal quarter on April 19, 2024. The regional bank posted almost flat net interest income year over year for Q1'24 due to a rapid repayment of outstanding borrowings that Western Alliance took on during last year's crisis in the regional banking market. The bank's deposits are also showing healthy growth, and the bank's latest consolidation provides a new entry opportunity for investors. With shares ...
Western Alliance Bancorporation(WAL) - 2024 Q1 - Earnings Call Transcript
2024-04-20 00:14
Financial Data and Key Metrics - The company reported pre-provision net revenue (PPNR) of $247 million, net income of $177 million, and earnings per share (EPS) of $1.60 for Q1 2024. Excluding the $18 million FDIC special assessment charge, PPNR was $265 million, net income was $191 million, and EPS was $1.72 [14] - Net interest income increased by $7 million from Q4 2023 to $599 million, driven by higher average earning asset balances and lower average borrowings [14] - Non-interest income rose by $39 million quarter-over-quarter to $130 million, primarily due to improved mortgage servicing rights (MSR) valuation [15] - Tangible book value per share increased by $0.58 to $47.30, driven by retained earnings growth [16] - The CET1 capital ratio reached 11%, and the loan-to-deposit ratio decreased by 10 points to 81% [10] Business Line Performance - Held-for-investment (HFI) loan growth was $403 million, predominantly in commercial and industrial (C&I) categories, with C&I growth of $646 million [16] - Deposit growth was $6.9 billion, driven by regional commercial banking, mortgage warehouse, and digital consumer channels [17] - Mortgage warehouse deposits rebounded by $3.5 billion, fully replacing Q4 outflows [21] Market Performance - The company experienced broad-based deposit growth across regions, with HOA and digital consumer channels contributing over $800 million each, and Juris Banking adding over $400 million [21] - The yield on total securities decreased by 33 basis points to 4.66%, reflecting efforts to enhance liquidity [22] Strategy and Industry Competition - The company has repositioned its balance sheet to optimize funding structure, increase capital, and enhance liquidity, aiming to mitigate future industry volatility [8][9] - The company plans to focus on deploying incremental liquidity into safe and thoughtful loans, with expected loan growth of $4 billion for the full year, up from the previous $2 billion guidance [35] - The company expects to maintain a CET1 ratio of around 11% and anticipates net interest income growth of 5% to 10% for 2024 [36] Management Commentary on Operating Environment and Future Outlook - Management highlighted the completion of the balance sheet repositioning, which has fortified the company's liquidity and capital position, enabling stronger loan growth starting in Q2 [10][12] - The company expects net interest margin (NIM) to trough in Q2 but anticipates NIM expansion in the second half of the year due to loan repricing and new originations [37] - Management remains cautious about the economic environment but is optimistic about the resilience of the mortgage banking business and the potential for growth in non-interest income [37] Other Important Information - Asset quality remained steady, with special mention loans and classified assets declining by $139 million from Q4 2023 [11] - Net charge-offs were $9.8 million, or 8 basis points of average loans, with provision expense of $15.2 million covering net charge-offs and supporting loan growth [27] - The company's effective tax rate decreased to 23.5% from a temporarily elevated rate in the previous quarter [19] Q&A Session Summary Question: Expense growth and NII expectations - The expense growth is primarily driven by ECR-related deposit costs, but it will also help drive net interest income (NII) as the company deploys additional funds into higher-yielding assets [45] - The company revised its loan growth guidance from $500 million per quarter to $1 billion per quarter, which will support NII growth throughout the year [46] Question: Capital and credit-linked notes (CLNs) - The company expects to maintain a CET1 ratio at or above 11% for the remainder of the year, with excess capital absorbed by increasing loan growth [47] - The runoff of CLNs is expected to contribute 40 to 50 basis points to the CET1 ratio [48] Question: Loan and deposit growth guidance - The company expects to grow deposits by $2 billion per quarter, with total deposit growth of $11 billion for the year, driven by strong performance in HOA, corporate trust, and regional banking [51][52] - Loan growth is expected to be $1 billion per quarter, with a focus on C&I, warehouse lending, and tech and innovation sectors [54][55] Question: Expense guidance and efficiency ratio - The expense guidance includes ECR-related deposit costs but excludes the $17 million FDIC special assessment. The company expects the efficiency ratio to trend towards the mid-50s [56][58] Question: Asset quality and non-performing loans (NPLs) - The increase in NPLs is primarily due to the company's strategy to accelerate resolution for certain loans. Two-thirds of NPLs are paying as agreed, and the company maintains a strong collateral position [96][97] Question: Deposit mix and cost outlook - The company expects minimal deposit mix shift, with growth primarily in money market accounts and a tapering off of higher-cost CDs [90] - Deposit costs increased by 11 basis points in Q1, but the overall cost of funds remained flat at 2.82% [23] Question: Net interest margin (NIM) outlook - NIM is expected to trough in Q2, with mid-single-digit basis points expansion in the second half of the year due to loan repricing and new originations [125][126] Question: M&A and capital deployment - The company is focused on organic growth and does not currently have plans for M&A, preferring to deploy excess capital into internal growth opportunities [101] Question: Asset sensitivity and NII impact - The company is asset-sensitive, with a 100 basis point rate increase expected to boost NII by 3%. The NII guide remains at the upper end of the range despite fewer rate cuts due to better loan growth [122][129]
Western Alliance (WAL) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
Zacks Investment Research· 2024-04-18 23:01
For the quarter ended March 2024, Western Alliance (WAL) reported revenue of $738.4 million, up 31.7% over the same period last year. EPS came in at $1.72, compared to $2.30 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $711.34 million, representing a surprise of +3.80%. The company delivered an EPS surprise of +1.78%, with the consensus EPS estimate being $1.69.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...
Western Alliance (WAL) Q1 Earnings and Revenues Surpass Estimates
Zacks Investment Research· 2024-04-18 22:30
Western Alliance (WAL) came out with quarterly earnings of $1.72 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $2.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.78%. A quarter ago, it was expected that this bank holding company would post earnings of $1.93 per share when it actually produced earnings of $1.91, delivering a surprise of -1.04%.Over the last four quarters, ...
Western Alliance Bancorporation(WAL) - 2024 Q1 - Quarterly Results
2024-04-18 20:13
Non-GAAP Financial Measures Footnotes | --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------|-----------|------------------------|------------------------------| | Efficiency Ratio (Tax Equivalent Basis), Adjusted for Deposit Costs and Notable Items: | Mar 31, | 2024 \n(dollars in | Dec 31, 2023 \nmillions) | | Total non-interest expense, excluding deposit costs | $ | 344.8 $ | 330.9 | | Less: FDIC special assessment | | 17.6 ...
Analysts Estimate Western Alliance (WAL) to Report a Decline in Earnings: What to Look Out for
Zacks Investment Research· 2024-04-09 15:06
The market expects Western Alliance (WAL) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if the ...
Western Alliance Bancorporation(WAL) - 2023 Q4 - Annual Report
2024-02-27 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 001-32550 WESTERN ALLIANCE BANCORPORATION (Exact name of registrant as specified in its charter) Delaware ...
Bret Rathwick and Michael Anthony Join Commercial and Industrial Team at Western Alliance Bank
Businesswire· 2024-02-20 20:14
LOS ANGELES--(BUSINESS WIRE)--Western Alliance Bank today announced the appointment of Bret Rathwick and Michael Anthony to the organization’s Commercial and Industrial team. Rathwick assumes the role of Vice President, Relationship Manager at Western Alliance Bank’s Costa Mesa office and Anthony takes on the role of Vice President, Relationship Manager at the organization’s Downtown Los Angeles office. “ Bret and Michael’s addition to the commercial banking team at Western Alliance Bank strengthens our ca ...
Western Alliance Bank Hires Paulina Woo as Senior Director, Treasury Management – Corporate Finance, Public and Nonprofit Finance
Businesswire· 2024-02-12 18:49
PHOENIX--(BUSINESS WIRE)--Western Alliance Bank today announced that Paulina Woo has joined the organization as a senior director, treasury management, in the bank’s Corporate Finance and Public and Nonprofit Finance groups. Woo brings more than 15 years of experience providing investment advisory and treasury management consulting services to institutional and government clients across the western U.S. In her new role, she will lead dedicated teams that tailor banking solutions to meet the unique needs ...