The earnings call presented a balanced view with significant achievements in deposit and loan growth, strong earnings per share, and improvements in asset quality. However, challenges in net interest margin compression, elevated deposit costs, and declines in mortgage banking income were notable. The sentiment reflects a cautious optimism as the bank navigates a changing rate environment.

Company Guidance

During the Western Alliance Bancorporation Q3 2024 earnings call, the company provided detailed guidance for the rest of the year and into 2025, emphasizing strategic metrics and financial expectations. The bank reported Q3 earnings of $1.80 per share, with a net income of $200 million and a net interest income increase of $40 million from Q2, reaching $697 million. They highlighted a strong deposit growth of $1.8 billion or 11% annualized, and HFI loan growth of $916 million or 7% annualized. The bank anticipates a 3% decline in net interest income for Q4, with a significant reduction of 25% in ECR-related deposit costs. They forecast a CET1 ratio to remain at 11%, expecting loan growth of approximately $1.25 billion in Q4. Noninterest income is projected to rise by 8% to 12%, while noninterest expenses are expected to decline between 5% and 9%. Asset quality remains stable, with net charge-offs projected at 20 basis points for Q4, aligning with their full-year target. The bank also anticipates an effective tax rate between 20% and 22% for 2024.

Solid Earnings Per Share

Western Alliance delivered solid third quarter results with earnings of $1.80 per share, demonstrating the bank's ability to grow earnings during a changing rate environment.

Strong Deposit and Loan Growth

The bank achieved healthy deposit growth of $1.8 billion or 11% annualized and HFI loan growth of $916 million or 7% annualized, despite sluggish demand for credit in the economy.

Increase in Noninterest Income

Noninterest income increased by $11 million or 10% quarter-over-quarter, driven by higher service charges and loan fees, despite a decline in mortgage banking income.

Asset Quality Improvements

Asset quality remained stable with nonperforming assets to total assets declining 6 basis points to 45 basis points.

Tangible Book Value Growth

Tangible book value per share climbed 19% year-over-year, indicating strong shareholder value growth.

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Western Alliance (WAL) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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WAL Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 19, 2018	2018 (Q2)	- / 0.99	0.76	30.26% (+0.23)	―	―
Oct 18, 2018	2018 (Q3)	- / 1.05	0.79	32.91% (+0.26)	―	―
Jan 24, 2019	2018 (Q4)	- / 1.13	0.85	32.94% (+0.28)	―	―
Apr 22, 2019	2019 (Q1)	- / 1.16	0.96	20.83% (+0.20)	―	―
Jul 18, 2019	2019 (Q2)	- / 1.19	0.99	20.20% (+0.20)	―	―
Oct 17, 2019	2019 (Q3)	- / 1.24	1.05	18.10% (+0.19)	―	―
Jan 23, 2020	2019 (Q4)	- / 1.25	1.13	10.62% (+0.12)	―	―
Apr 16, 2020	2020 (Q1)	- / 0.83	1.16	-28.45% (-0.33)	―	―
Jul 16, 2020	2020 (Q2)	- / 0.93	1.19	-21.85% (-0.26)	―	―
Oct 22, 2020	2020 (Q3)	- / 1.36	1.24	9.68% (+0.12)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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WAL Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 17, 2024	$93.53	$85.18	-8.93%
Jul 18, 2024	$70.44	$76.04	+7.95%
Apr 18, 2024	$54.92	$56.60	+3.06%
Jan 25, 2024	$64.35	$65.94	+2.47%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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