Western Alliance Bancorporation(US:WAL)2025-05-01 21:02Financial Performance - Net income for the three months ended March 31, 2025, was $199.1 million, compared to $177.4 million for the same period in 2024, reflecting an increase of 12.8%[13] - Earnings per share (EPS) for Q1 2025 was $1.80, up from $1.61 in Q1 2024, indicating a year-over-year growth of 11.8%[13] - Comprehensive income attributable to controlling interest for Q1 2025 was $254.3 million, compared to $132.7 million in Q1 2024, reflecting a substantial increase of 91.8%[15] - Net income for the three months ended March 31, 2025, was $199.1 million, an increase from $177.4 million in the same period of 2024, representing a growth of 11.0%[21] - Revenue from contracts with customers for the three months ended March 31, 2025, was $23.0 million, up from $13.5 million in the same period of 2024[208] Asset and Liability Management - Total assets increased to $83,043 million as of March 31, 2025, up from $80,934 million at December 31, 2024, representing a growth of 2.75%[11] - The company’s total liabilities were reported at $75,828 million as of March 31, 2025[204] - Total deposits increased to $69,322 million as of March 31, 2025, compared to $66,341 million at December 31, 2024, representing a growth of 4.5%[11] - The allowance for credit losses was $389 million as of March 31, 2025, compared to $374 million at December 31, 2024, an increase of 4.0%[11] Income and Expense Analysis - Total interest income rose to $1,095.6 million in Q1 2025, compared to $1,055.0 million in Q1 2024, marking an increase of 3.8%[13] - Non-interest income totaled $127.4 million in Q1 2025, slightly down from $129.9 million in Q1 2024, a decrease of 1.9%[13] - Total non-interest expense for Q1 2025 was $500.4 million, up from $481.8 million in Q1 2024, indicating an increase of 3.3%[13] - The company’s interest expense for the same period was $445.0 million, leading to a net interest income after provision for credit losses of $619.4 million[204] Credit Quality and Loss Provisions - Provision for credit losses increased to $31.2 million in Q1 2025, up from $15.2 million in Q1 2024, reflecting a significant rise of 105.3%[13] - The total allowance for credit losses (ACL) on loans held for investment (HFI) increased from $373.8 million as of December 31, 2024, to $388.6 million as of March 31, 2025, reflecting a net increase of $14.8 million[83] - The provision for credit losses for the three months ended March 31, 2025, was $40.6 million, compared to $13.4 million for the same period in 2024, indicating a significant increase in provisions[85] Loan Portfolio and Performance - Total loans held for sale (HFS) increased to $3,238 million, up from $2,286 million as of December 31, 2024, representing a growth of approximately 42%[63] - The total loans held for investment (HFI) as of March 31, 2025, amounted to $54,761 million, an increase from $53,676 million as of December 31, 2024, reflecting a growth of approximately 2%[66] - Total loans as of March 31, 2025, amounted to $54.761 billion, with past due loans totaling $662 million[71] - Nonaccrual loans totaled $451 million as of March 31, 2025, with $319 million classified as past due 90 days or more and still accruing[67] Securities and Investments - The Company reported significant unrealized losses in available-for-sale debt securities, totaling $671 million as of March 31, 2025[46] - The Company reported a total of $1,536 million in held-to-maturity securities with a fair value of $1,359 million as of March 31, 2025, reflecting unrealized losses of $178 million[44] - The fair value of available-for-sale (AFS) debt securities was reported at $14,231 million as of March 31, 2025, with $4,046 million from quoted prices in active markets and $10,185 million from significant observable inputs[177] Capital Management - The company issued $1,200.0 million in long-term debt during Q1 2025, compared to no issuances in Q1 2024[22] - The company paid cash dividends of $45.0 million on common and preferred stock in Q1 2025, slightly up from $43.9 million in Q1 2024[22] - The Company declared and paid a quarterly cash dividend of $0.38 per share, totaling $41.8 million for the three months ended March 31, 2025, compared to $40.7 million in the same period of 2024[127] Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was 19.2%, down from 23.5% in the same period of 2024[152] - The net deferred tax asset (DTA) balance as of March 31, 2025, was $272 million, a decrease of $9 million from $281 million at December 31, 2024[153] Derivatives and Risk Management - The net loss on derivatives for the three months ended March 31, 2025, was $37.1 million, compared to a net gain of $7.1 million for the same period in 2024[149] - The Company utilized interest rate swaps to manage interest rate risk, converting fixed rates to variable rates and vice versa[133] - The Company had a notional amount of $28.268 billion in forward contracts as of March 31, 2025, with a fair value of $21 million[146]