Western Alliance Shares Surge On Earnings Beat, Recent Deposit Strength: The Details

Western Alliance Bancorp WAL shares are trading higher Wednesday after the company reported first-quarter results and said deposits stabilized late in the quarter. 

• Q1 Revenue: $551.9 million missed estimates of $666.44 million
• Q1 EPS: $2.30 beat estimates of $2.04

Net interest income totaled $609.9 million, up 35.7% year-over-year, while net interest margins reached 3.79%, up 3.32%.

Deposits totaled $47.6 billion as of March 31, a decrease of $4.6 billion year-over-year. However, Western Alliance said deposits rose by an additional $2 billion from March 31 to April 14. Total assets increased 4.9% sequentially. 

"The flexibility of our diversified, national commercial banking strategy, with a broad range of value-added deposit channels and deep commercial customer relationships in a wide variety of sectors and geographies, all contributed to our firm's resilience in the face of recent turbulence in the banking industry," said Kenneth Vecchione, president and CEO of Western Alliance.

"While we experienced elevated net deposit outflows immediately following the closure of other banks, deposit balances quickly stabilized."

Following the print, Wedbush analyst David Chiaverini upgraded Western Alliance from Neutral to Outperform and raised the price target from $38 to $50.

Western Alliance is set to host a conference call to discuss its results at 12 p.m. ET Wednesday.

WAL Price Action: Western Alliance has a 52-week high of $86.87 and a 52-week low of $7.46. 

The stock was up 21.6% at $39.55 at time of publication, according to Benzinga Pro.

Photo: Thomas Breher from Pixabay.