Thu, Oct 31, 8:50 PM (63 days ago)
Western Alliance Bancorporation (WAL) reported its Q3 2024 financial results, showing a net income of $199.8 million, down from $216.6 million in Q3 2023. Diluted earnings per share decreased to $1.80 from $1.97. Total assets rose to $80.1 billion, a 13% increase from year-end 2023, largely driven by a $12.7 billion increase in deposits, which reached $68.0 billion. Loans held for investment (HFI) increased by 6.1% to $53.3 billion. The net interest margin slightly decreased to 3.61%, reflecting higher deposit costs amid a competitive rate environment. The provision for credit losses rose significantly to $33.6 million from $12.1 million year-over-year, attributed to loan growth and net charge-offs. Non-interest income was stable at $126.2 million, while non-interest expenses increased to $537.4 million due to higher deposit costs. The efficiency ratio worsened to 64.5%. WAL's capital ratios remained strong, with a Common Equity Tier 1 ratio of 11.2%. However, the allowance for credit losses to loans HFI was 0.67%. The bank continues to face challenges from rising interest rates and economic uncertainties, particularly in the commercial real estate sector.