Western Alliance (WAL) Reports Q3 Earnings: What Key Metrics Have to Say

Core Insights - Western Alliance (WAL) reported revenue of $833.1 million for Q3 2024, a year-over-year increase of 14.9% [1] - The EPS for the same period was $1.80, down from $1.97 a year ago, with a surprise of -5.26% compared to the consensus estimate of $1.90 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $811.4 million, resulting in a surprise of +2.67% [1] Financial Metrics - Efficiency Ratio was 64.5%, higher than the estimated 59.1% [2] - Net Interest Margin stood at 3.6%, surpassing the average estimate of 3.4% [2] - Net charge-offs to average loans were 0.2%, matching the estimate [2] - Average Balance of Total interest earning assets was $77.80 billion, exceeding the estimate of $76.26 billion [2] - Tier 1 Leverage Ratio was 7.8%, below the average estimate of 8.1% [2] - Total non-interest income reached $126.20 million, above the estimate of $116.12 million [2] - Net interest income was $696.90 million, compared to the estimate of $685.35 million [2] - Net loan servicing revenue was $12.30 million, significantly lower than the estimate of $37.42 million [2] - Service charges and fees totaled $30.10 million, exceeding the estimate of $10.97 million [2] - Net Interest Income (FTE) was $706.90 million, above the estimate of $694.74 million [2] - Net gain on loan origination and sale activities was $46.30 million, slightly below the estimate of $49.69 million [2] - Other non-interest income was $18.60 million, significantly higher than the estimate of $7.07 million [2] Stock Performance - Shares of Western Alliance have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]