Western Alliance Bancorp

Latest Results (20.12.2024):

Net Income and Earnings Per Share

Western Alliance Bancorp reported a net income of $199.8 million for the third quarter of 2024, reflecting a 3.2% increase from the previous quarter's $193.6 million. However, this represents a 7.8% decrease compared to the third quarter of 2023, where net income was $216.6 million. Earnings per share for the third quarter of 2024 were $1.80, up from $1.75 in the second quarter of 2024, but down from $1.97 in the third quarter of 2023.

Net Interest Income and Margin

For the third quarter of 2024, Western Alliance Bancorp's net interest income was $696.9 million, marking a 6.1% increase from the second quarter of 2024 and an 18.7% increase from the third quarter of 2023. The net interest margin for the third quarter of 2024 was 3.61%, a slight decrease from 3.63% in the second quarter of 2024 and 3.67% in the third quarter of 2023, primarily due to lower yields on HFI loans and higher deposit rates.

Loan and Deposit Growth

Western Alliance Bancorp experienced significant growth in loans and deposits during the third quarter of 2024. HFI loans increased by $916 million, or 1.7%, reaching $53.3 billion, while total deposits rose by $1.8 billion, or 2.7%, totaling $68.0 billion. This growth contributed to a decrease in the HFI loan-to-deposit ratio to 78.4% from 79.1% in the previous quarter.

Non-Interest Income and Expenses

Non-interest income for Western Alliance Bancorp in the third quarter of 2024 was $126.2 million, up from $115.2 million in the second quarter of 2024 but slightly down from $129.2 million in the third quarter of 2023. Non-interest expenses increased to $537.4 million in the third quarter of 2024, compared to $486.8 million in the second quarter of 2024 and $426.2 million in the third quarter of 2023, driven by higher deposit costs and employee benefits.

Asset Quality and Capital Ratios

Western Alliance Bancorp maintained stable asset quality in the third quarter of 2024, with nonperforming assets to total assets ratio at 0.45%, down from 0.51% in the previous year. The tangible common equity ratio improved to 7.2% from 6.8% in the second quarter of 2024. The CET1 ratio was 11.2%, up from 11.0% in the previous quarter, indicating a strong capital position.