Here's What Key Metrics Tell Us About Western Alliance (WAL) Q4 Earnings

Core Insights - Western Alliance (WAL) reported revenue of $848.4 million for Q4 2024, a year-over-year increase of 22.7% and a surprise of +3.82% over the Zacks Consensus Estimate of $817.22 million [1] - The EPS for the same quarter was $1.95, compared to $1.91 a year ago, with an EPS surprise of +1.56% over the consensus estimate of $1.92 [1] Financial Performance Metrics - Efficiency Ratio was reported at 51.1%, significantly better than the estimated 59.2% by analysts [4] - Net Interest Margin stood at 3.5%, exceeding the average estimate of 3.3% [4] - Net charge-offs to average loans were annualized at 0.3%, slightly above the average estimate of 0.2% [4] - Average Balance of Total interest earning assets was $77.31 billion, higher than the estimated $76.07 billion [4] - Total non-interest income reached $171.90 million, surpassing the estimated $129.96 million [4] - Service charges and fees were $31.70 million, slightly above the average estimate of $31.32 million [4] - Net interest income was reported at $666.50 million, below the average estimate of $673.83 million [4] - Net gain on loan origination and sale activities was $67.90 million, compared to the average estimate of $46.99 million [4] - Other non-interest income was $14.80 million, below the average estimate of $19.77 million [4] - Income from equity investments was $11.10 million, exceeding the average estimate of $6.55 million [4] - Net loan servicing revenue was $24.70 million, below the average estimate of $27 million [4] Stock Performance - Shares of Western Alliance have returned +10.1% over the past month, outperforming the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]