Western Alliance Bancorporation(US:WAL)2025-04-21 20:25Financial Performance - Net income for Q1 2025 was $199.1 million, a decrease of 8.2% from $216.9 million in Q4 2024, but an increase of 11.9% from $177.4 million in Q1 2024[9] - Earnings per share for Q1 2025 was $1.79, down from $1.95 in Q4 2024, but up from $1.60 in Q1 2024[9] - Pre-provision net revenue (PPNR) was $277.6 million, down $41.8 million from $319.4 million in Q4 2024, but up $30.6 million from $247.0 million in Q1 2024[10] - Non-interest income for Q1 2025 was $127.4 million, a decrease of $44.5 million from $171.9 million in Q4 2024, and a slight decrease from $129.9 million in Q1 2024[6] - The net interest margin for Q1 2025 was 3.47%, a decrease from 3.48% in Q4 2024 and from 3.60% in Q1 2024[5] - Net income available to common stockholders for Q1 2025 was $195.9 million, compared to $174.2 million in Q1 2024, marking an increase of 12.9%[37] - Diluted earnings per share increased to $1.79 in Q1 2025, up from $1.60 in Q1 2024, a growth of 11.9%[37] Asset and Deposit Growth - Total deposits increased by $3.0 billion, or 4.5%, to $69.3 billion compared to Q4 2024, and increased by $7.1 billion, or 11.4%, compared to Q1 2024[13] - Total assets rose by $2.1 billion, or 2.6%, to $83.0 billion at March 31, 2025, from $80.9 billion at December 31, 2024, and increased by 7.9% from $77.0 billion at March 31, 2024[17] - Total deposits increased to $69.3 billion at March 31, 2025, an 11.4% increase from $62.2 billion at March 31, 2024[30] - Total assets reached $83,043 million as of March 31, 2025, compared to $76,989 million a year earlier, indicating a growth of 8.0%[39] Loan and Credit Quality - HFI loans totaled $54.8 billion, an increase of $1.1 billion, or 2.0%, from Q4 2024, and an increase of $4.1 billion, or 8.0%, from Q1 2024[11] - The provision for credit losses was $31.2 million, a decrease from $60.0 million in Q4 2024, but an increase from $15.2 million in Q1 2024[4] - Nonaccrual loans decreased by $25 million to $451 million during the quarter, but increased by $52 million from March 31, 2024[20] - The ratio of classified assets to Tier 1 capital plus the allowance for credit losses was 15.9% at March 31, 2025, up from 14.2% at December 31, 2024, and 12.0% at March 31, 2024[22] - Special mention loans rose to $460 million, up from $392 million in the previous quarter, with a ratio of 0.84% to funded HFI loans[43] - Loans past due 30 to 89 days increased to $182 million, compared to $92 million in the previous quarter, reflecting a rise in early-stage delinquencies[43] Equity and Capital Ratios - The tangible book value per share increased by 14.4% year-over-year to $54.10, with a CET 1 ratio of 11.1%[2] - Total equity increased to $7.2 billion at March 31, 2025, compared to $6.7 billion at December 31, 2024, and $6.2 billion at March 31, 2024, marking a 16.9% increase[16] - The common equity tier 1 capital ratio was 11.1% at March 31, 2025, slightly down from 11.3% at December 31, 2024, and up from 11.0% at March 31, 2024[17] - Tangible common equity ratio increased to 7.2% as of March 31, 2025, compared to 6.8% a year earlier[34] Expense Management - Non-interest expenses totaled $500.4 million in Q1 2025, compared to $481.8 million in Q1 2024, representing an increase of 3.8%[37] - Total non-interest expense for Q1 2025 was $500.4 million, a decrease from $519.0 million in Q4 2024[51] - Deposit costs for Q1 2025 were $136.8 million, down from $174.5 million in Q4 2024[51] - The efficiency ratio, adjusted for deposit costs, was 55.8% in Q1 2025, compared to 51.1% in Q4 2024 and 57.3% in Q1 2024[8]