GICS Sector : Financial Services
Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada.It operates in Commercial, Consumer Related, and Corporate & Other segments.The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; and treasury management and residential mortgage products and services.
Western Alliance Bancorporation reported a record net revenue of $938 million and pre-provision net revenue of $394 million for the third quarter of 2025. The company's net interest income grew 8% quarter-over-quarter to $750 million, driven by solid organic loan growth and higher average earning asset balances. Non-interest income rose 27% to $188 million, led by firming mortgage banking results. The adjusted efficiency ratio dropped below 50%, and the company generated EPS of $2.28, beating estimates of $2.11, with a return on average assets of 1.13% and return on average tangible common equity of 15.6%. As Dale M. Gibbons noted, the increase in expenses is largely balance-driven, with some deposits growing more quickly than expected.
Publication Date: Oct -23
The company's asset quality performed in line with guidance, with total criticized assets declining 17% and net charge-offs of 22 basis points. Western Alliance addressed two credit relationships, a $98.5 million note finance loan to Cantor Group V and an ABL facility to Leucadia Asset Management, and expressed confidence in its underwriting expertise and ability to minimize losses. Kenneth A. Vecchione emphasized that the company's executive management is highly concerned about credit governance and asset quality, with a robust construct in place for credit risk review.
The company's CET1 capital ratio is around 11.3%, and tangible book value per share increased 13% year-over-year. For 2025, Western Alliance reiterated its loan growth outlook of $5 billion, raised year-end deposit growth expectations to $8.5 billion, and expects net interest income growth of 8-10% and non-interest income growth of 12-16%. The company forecasts a mid-3.5% net interest margin for the full year and an effective tax rate of about 20% for the fourth quarter.
With a Price-to-Tangible Book Value (P/TBV) ratio of 1.16 and a Dividend Yield of 1.93%, Western Alliance Bancorporation appears to be reasonably valued. Analysts estimate next year's revenue growth at 9.4%, which is slightly higher than the company's expected earnings trajectory of 17-19% growth for 2025. The stock's current valuation multiples suggest that the market has already priced in some of the company's growth expectations.
WAL Investor News: If You Have Suffered Losses in Western Alliance Bancorporation (NYSE: WAL), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Dec -04
ROSEN, A LONGSTANDING FIRM, Encourages Western Alliance Bancorporation Investors to Inquire About Securities Class Action Investigation - WAL
Dec -03
Western Alliance Bank Provides $35 Million Financing for Major Capital Improvements at Marina City Club
Dec -02
WAL Investor News: If You Have Suffered Losses in Western Alliance Bancorporation (NYSE: WAL), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Nov -30
ROSEN, NATIONAL TRIAL LAWYERS, Encourages Western Alliance Bancorporation Investors with Losses in Excess of $100K to Inquire About Securities Class Action Investigation - WAL
Nov -29
ROSEN, A GLOBALLY RESPECTED LAW FIRM, Encourages Western Alliance Bancorporation Investors to Inquire About Securities Class Action Investigation - WAL
Nov -28
WAL Investor News: If You Have Suffered Losses in Western Alliance Bancorporation (NYSE: WAL), You Are Encouraged to Contact The Rosen Law Firm About Your Rights
Nov -27
Rosen Law Firm Encourages agilon health, inc. Investors to Inquire About Securities Class Action Investigation - AGL
Nov -27
Western Alliance Bancorporation's 10% commercial growth is driven by increasing demand for commercial loans, expansion into new markets, and strategic partnerships. Additionally, the bank's focus on technology and digital transformation has improved operational efficiency, allowing for better customer service and increased revenue. Furthermore, a strong economy and low unemployment rates have contributed to the growth, as businesses are more likely to borrow and invest in their operations.
Western Alliance Bancorporation's 12% growth in Consumer Related segment is driven by increasing demand for consumer loans, expansion of digital banking channels, and strategic partnerships with fintech companies. Additionally, the company's focus on customer experience, competitive pricing, and targeted marketing efforts have contributed to the growth.
Western Alliance Bancorporation's Corporate & Other Segment growth of 9% is driven by increasing mortgage banking revenue, growth in treasury management services, and expansion of its insurance business. Additionally, the segment benefits from the company's strategic investments in digital transformation, cost savings initiatives, and a favorable interest rate environment.
Western Alliance Bancorporation offers a range of commercial loans to help businesses achieve their goals, including term loans, lines of credit, and construction loans.
Western Alliance's treasury management services help businesses manage their cash flow, mitigate risk, and optimize their financial performance.
Western Alliance offers a range of deposit services, including checking and savings accounts, CDs, and IRAs, to help individuals and businesses manage their finances.
Western Alliance's mortgage banking services provide financing solutions for residential and commercial properties, including construction loans and permanent financing.
Western Alliance's wealth management services provide investment and financial planning solutions to help individuals and families achieve their financial goals.
Western Alliance's capital markets services provide access to debt and equity markets, helping businesses raise capital and achieve their financial goals.
The threat of substitutes for Western Alliance Bancorporation is moderate, as customers have some alternatives for banking services, but the company's strong brand and customer loyalty mitigate this threat.
The bargaining power of customers is low, as Western Alliance Bancorporation has a diverse customer base and is not heavily dependent on a few large customers.
The bargaining power of suppliers is low, as Western Alliance Bancorporation has a strong negotiating position with its suppliers due to its large size and scale.
The threat of new entrants is low, as the banking industry has significant barriers to entry, including regulatory hurdles and high capital requirements.
The intensity of rivalry is high, as Western Alliance Bancorporation operates in a highly competitive banking industry with many established players.
| Value | |
|---|---|
| Debt Weight | 70.79% |
| Debt Cost | 8.62% |
| Equity Weight | 29.21% |
| Equity Cost | 11.24% |
| WACC | 9.39% |
| Leverage | 242.32% |
Value: 5.9
Growth: 4.2
Quality: 7.4
Yield: 10.0
Momentum: 6.0
Volatility: 6.7
1-Year Total Return ->
Value: 5.9
Growth: 4.6
Quality: 6.4
Yield: 8.0
Momentum: 7.0
Volatility: 6.3
1-Year Total Return ->
Value: 4.2
Growth: 6.9
Quality: 6.9
Yield: 6.0
Momentum: 6.0
Volatility: 8.0
1-Year Total Return ->
Value: 5.1
Growth: 4.8
Quality: 4.3
Yield: 8.0
Momentum: 7.0
Volatility: 7.0
1-Year Total Return ->
Value: 4.1
Growth: 4.0
Quality: 7.5
Yield: 6.0
Momentum: 3.5
Volatility: 9.0
1-Year Total Return ->
Value: 8.1
Growth: 5.7
Quality: 7.0
Yield: 4.0
Momentum: 4.0
Volatility: 4.0
1-Year Total Return ->