Western Alliance Bancorp Q3 revenue slightly beats estimates, profit rises on wider interest margin

Western Alliance Bancorporation

Mon 21:28

Overview
US commercial bank's Q3 revenue saw a slight beat versus analyst expectations
Diluted EPS for Q3 rose 7.5% yr/yr to $2.45
Company repurchased $92 mln of shares in Q3

Outlook
Company did not provide specific financial guidance for future quarters or the full year in its press release

Result Drivers
HIGHER YIELDS AND LOAN BALANCES - Co said net interest income growth was driven by higher yields on interest earning assets and increased average loan balances
DEPOSIT OPTIMIZATION - Co said deposit optimization actions lowered deposit costs, while commercial banking deposit growth kept total deposits stable
IMPROVED ASSET QUALITY - Co said asset quality improved with lower nonaccrual loans and increased reserve coverage

Company press release: Full Story

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$1 bln
$991.11 mln (11 Analysts)
Q3 EPS
 
$2.45
 
Q3 Net Income
 
$277.20 mln
 
Q3 Net Interest Income
 
$807.60 mln
 
Q3 Credit Loss Provision
 
$80 mln
 
Q3 Net Interest Margin
 
3.57%
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Western Alliance Bancorporation is $93.00, about 24.8% above its October 16 closing price of $74.51
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Oct 19 - Washington Trust Bancorp Q3 net income rises sequentially on higher net interest income
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 19 - Fifth Third Bancorp Q3 net interest income jumps on Comerica acquisition

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

Press Release https://www.sec.gov/Archives/edgar/data/1212545/000162828026066286/pressrelease-9302026.htm
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)