Western Alliance Stock Dips After Q3 Results: Here's Why

Western Alliance Bancorporation WAL shares are trading lower after the company reported its third-quarter financial results after Thursday's closing bell. Here's a look at the details from the report. 

The Details: Western Alliance reported quarterly earnings of $1.80 per share, which missed the analyst consensus estimate of $1.89. Quarterly revenue came in at $823.1 million, which beat the analyst consensus estimate of $808.19 million.

• Net interest income totaled $696.9 million in the third quarter 2024, an increase of $40.3 million, or 6.1%, from $656.6 million in the second quarter 2024, and an increase of $109.9 million, or 18.7%, compared to the third quarter 2023.
• Non-interest income was $126.2 million for the third quarter 2024, compared to $115.2 million for the second quarter 2024, and $129.2 million for the third quarter 2023.
• Net interest margin in the third quarter 2024 was 3.61%, a decrease from 3.63% in the second quarter 2024, and a decrease from 3.67% in the third quarter 2023.
• The company recorded a provision for credit losses of $33.6 million in the third quarter 2024, a decrease of $3.5 million from $37.1 million in the second quarter 2024, and an increase of $21.5 million from $12.1 million in the third quarter 2023.

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“Western Alliance delivered solid third-quarter results featuring strong net interest income growth, continued loan and deposit momentum, and healthy earnings generation,” said Kenneth A. Vecchione, CEO of Western Alliance.

“Quarterly loan and deposit growth of $916 million and $1.8 billion, respectively, continued their upward trajectory and produced PPNR1 of $285.7 million. Asset quality remained stable with our nonperforming assets to total assets ratio declining to 0.45% and net loan charge-offs of 0.20% of average loans,” Vecchione added.

WAL Price Action: According to Benzinga Pro, Western Alliance shares are down 5.24% after-hours at $89 at the time of publication Thursday.

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