Western Alliance reports Q3 EPS $2.28, consensus $2.07

Reports Q3 revenue $938.2M, consensus $887.59M. “Western Alliance (WAL) achieved solid third quarter results with net income of $261 million and earnings per share of $2.28, up 10.1% from last quarter and 26.7% year-over-year. Healthy balance sheet growth and stable margins supported continued expansion of net interest income, which, alongside firming mortgage banking revenue, generated record PPNR of $394 million,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly loan and deposit growth of $707 million and $6.1 billion, respectively, boosted total assets over $90 billion. Asset quality continued to perform in line with guidance with our total criticized assets declining $284 million quarterly, nonperforming loans and repossessed assets to total assets ratio decreasing 2 basis points to 0.72% and net loan charge-offs to average loans remained unchanged from last quarter at 0.22%. Related to the Cantor Group V loan, although the most recent appraisals indicate sufficient collateral coverage, our reserve methodology for a $98 million non-accrual loan resulted in a reserve of $30 million. That reserve, in combination with our portfolio’s qualitative overlays, raised our allowance to total funded HFI loans to 0.85%. Tangible book value per share1 climbed 12.7% year-over-year to $58.56 with a CET 1 ratio of 11.3%.”