Western Alliance reports Q2 EPS $1.96, consensus $1.98

Reports Q2 revenue $669.3M, consensus $651.85M. Reports net interest margin 3.42%. “Western Alliance continued to successfully execute its balance sheet repositioning strategy and return to normal business operations by bolstering liquidity and capital, sustaining profitability and expanding core client relationships,” said Kenneth Vecchione, President and CEO. “Quarterly deposit growth of $3.5 billion lowered our HFI loan-to-deposit ratio to 94%, with total insured and collateralized deposits representing 81% of deposits and available liquidity coverage of 276% of uninsured deposits. We achieved net income of $215.7 million and earnings per share of $1.96 for the second quarter 2023, which resulted in a return on tangible common equity1 of 18.2%. Tangible book value per share climbed 3.7% quarterly to $43.09, or 17.5% year-over-year, with a CET1 ratio of 10.1%.”