Western Alliance Bancorporation shares slip 5% on Q3 earnings miss

NEW YORK - Shares of Western Alliance (NYSE:WAL ) Bancorporation (NYSE:WAL) fell 5.3% in after-hours trading on Thursday after the bank reported third quarter earnings that missed analyst expectations.

The Phoenix-based bank reported earnings per share of $1.80 for the third quarter, falling short of the $1.89 consensus estimate. Revenue came in at $823.1 million, surpassing analyst projections of $809.23 million.

Western Alliance's net income declined 7.8% year-over-year to $199.8 million in Q3. Net interest income rose 18.7% to $696.9 million compared to the same quarter last year, while non-interest income dipped 2.3% to $126.2 million.

The bank's net interest margin contracted slightly to 3.61% from 3.67% in Q3 2023. Total loans increased 7.9% YoY to $53.3 billion, while deposits surged 25.3% to $68.0 billion.

"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, President and CEO.

The company's provision for credit losses rose to $33.6 million from $12.1 million in the year-ago quarter. Net charge-offs increased to 0.20% of average loans, up from 0.07% a year earlier.

Western Alliance's tangible book value per share grew 19.1% YoY to $51.98. The bank's CET1 ratio improved to 11.2% from 10.6% in Q3 2023.

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Source: Investing.com