Compared to Estimates, Western Alliance (WAL) Q1 Earnings: A Look at Key Metrics

Core Insights - Western Alliance (WAL) reported revenue of $788.2 million for the quarter ended March 2025, reflecting a 6.7% increase year-over-year, while EPS rose to $1.79 from $1.72 in the previous year [1] - The revenue fell short of the Zacks Consensus Estimate of $794.4 million, resulting in a surprise of -0.78%, whereas the EPS exceeded the consensus estimate of $1.78 by +0.56% [1] Financial Performance Metrics - Efficiency Ratio stood at 63.5%, higher than the three-analyst average estimate of 60.3% [4] - Net Interest Margin was reported at 3.5%, surpassing the three-analyst average estimate of 3.2% [4] - Average Balance of Total Interest Earning Assets was $77.18 billion, slightly below the two-analyst average estimate of $77.62 billion [4] - Net charge-offs to average loans (annualized) were 0.2%, better than the 0.3% estimated by two analysts [4] - Total Non-Interest Income reached $127.40 million, lower than the three-analyst average estimate of $134.90 million [4] - Net Interest Income was reported at $650.60 million, compared to the two-analyst average estimate of $660.53 million [4] - Service Charges and Fees amounted to $37.20 million, exceeding the two-analyst average estimate of $31.20 million [4] - Net Gain on Loan Origination and Sale Activities was $49.50 million, compared to the $51.51 million average estimate based on two analysts [4] Stock Performance - Shares of Western Alliance have declined by -14.4% over the past month, in contrast to the Zacks S&P 500 composite's decline of -5.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]