Western Alliance Bancorporation(US:WAL)2025-01-27 21:25Financial Performance - Net income for Q4 2024 was $216.9 million, an increase of 8.6% from $199.8 million in Q3 2024 and 46.6% higher than Q4 2023[10] - Earnings per share for Q4 2024 reached $1.95, up 8.3% from $1.80 in Q3 2024 and 46.6% from $1.33 in Q4 2023[10] - Non-interest income for Q4 2024 was $171.9 million, up 36.2% from $126.2 million in Q3 2024 and 90.1% from $90.5 million in Q4 2023[7] - The Company's net income for the fourth quarter 2024 was $216.9 million, a 46.7% increase from $147.9 million in the fourth quarter 2023[33] - Net income available to common stockholders reached $213.7 million in Q4 2024, compared to $144.7 million in Q4 2023, an increase of 47.7%[40] - Net interest income after provision for credit losses was $606.5 million for Q4 2024, compared to $582.4 million in Q4 2023, marking a 4.3% increase[40] - Net interest income for the year ended December 31, 2024, was $2,618.9 million, up from $2,338.9 million in 2023, representing a year-over-year increase of 12.0%[53] Asset and Deposit Management - Total assets increased by $854 million, or 1.1%, to $80.9 billion at December 31, 2024, compared to $80.1 billion at September 30, 2024, and increased by 14.2% from $70.9 billion at December 31, 2023[19] - Total deposits decreased by $1.7 billion, or 2.5%, to $66.3 billion in Q4 2024, but increased by $11.0 billion, or 19.9%, year-over-year[15] - The Company's total assets of the company were $82.688 billion, reflecting a strong balance sheet position[51] Loan Performance - HFI loans totaled $53.7 billion, an increase of $330 million, or 0.6%, from Q3 2024 and up $3.4 billion, or 6.7%, year-over-year[13] - Loans held for investment increased to $53.676 million in Q4 2024, compared to $53.346 million in Q3 2024, an increase of 0.6%[42] - The allowance for loan losses was $374 million as of December 31, 2024, up from $357 million in Q3 2024, indicating a rise of 4.8%[42] - Nonaccrual loans rose to $476 million, representing 0.89% of funded HFI loans, compared to 0.65% in the prior quarter[46] - Loans past due 30 to 89 days, still accruing, amounted to $92 million, which is 0.17% of funded HFI loans[46] Credit Quality and Provisions - The provision for credit losses increased to $60.0 million in Q4 2024, up from $33.6 million in Q3 2024 and $9.3 million in Q4 2023[5] - The provision for credit losses totaled $60.0 million for the fourth quarter 2024, compared to $33.6 million for the third quarter 2024, and $9.3 million for the fourth quarter 2023[21] - The company reported a provision for credit losses of $60.0 million in Q4 2024, up from $9.3 million in Q4 2023, reflecting a more cautious outlook on credit quality[55] Efficiency and Ratios - The efficiency ratio, adjusted for deposit costs, improved to 51.1% in Q4 2024 from 52.7% in Q3 2024 and 59.1% in Q4 2023[9] - The efficiency ratio improved to 61.2% in Q4 2024 from 66.8% in Q4 2023, demonstrating enhanced operational efficiency[56] - The Company's common equity tier 1 capital ratio was 11.3% at December 31, 2024, up from 10.8% at December 31, 2023[19] - The tangible common equity ratio remained stable at 7.2% as of December 31, 2024, consistent with the previous quarter[37] Investment and Interest Income - Total interest income rose to $1,138.6 million in Q4 2024, up from $1,039.0 million in Q4 2023, reflecting a year-over-year increase of 9.6%[40] - Total interest earning assets decreased to $77.306 billion with net interest income of $666.5 million, resulting in a net interest margin of 3.48% for the three months ended December 31, 2024[51] - Average yield on loans held for investment (HFI) was 6.63% in 2024, compared to 6.53% in 2023, indicating a slight improvement in loan profitability[53]