Western Alliance Q3 Earnings Beat Estimates Despite Deposit Drop
Western Alliance Bancorp (NYSE:WAL) delivered third-quarter adjusted earnings per share of $2.45, exceeding estimates of $2.43 and rising from $2.28 in the prior-year period. However, quarterly revenue missed expectations as deposit growth lagged. Net interest income rose 7.6% year-over-year to $807.6 million, below forecasts of $813.3 million, while non-interest income grew 10.0% to $206.6 million, topping projections of $172.66 million.
Key balance sheet metrics contracted sequentially. Total deposits decreased to $81.76 billion from $81.87 billion in the prior quarter, missing expectations of $82.73 billion. Total assets fell to $98.07 billion from $98.70 billion, and total liabilities dropped to $90.13 billion from $90.57 billion. Provision for credit losses was unchanged at $80.0 million, above expectations of $72.16 million. Shares of Western Alliance Bancorp fell 1.18% to $73.63.
Market participants will monitor further management commentary regarding interest income, deposit trends, and balance sheet performance during the earnings conference call scheduled for 12:00 PM ET tomorrow.
Key points
- Adjusted third-quarter earnings per share came in at $2.45, exceeding projections of $2.43 and up from $2.28 a year ago.
- Net interest income grew 7.6% year-over-year to $807.6 million, trailing expectations of $813.3 million.
- Total deposits dropped sequentially to $81.76 billion, missing consensus estimates of $82.73 billion.
- Total assets decreased to $98.07 billion from $98.70 billion, coming in below forecasts of $98.91 billion.
- Provision for credit losses stood at $80.0 million, exceeding expected levels of $72.16 million.
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What were Western Alliance's Q3 earnings per share?
Western Alliance Bancorp reported adjusted diluted earnings per share of $2.45 for Q3, beating consensus estimates of $2.43 and up from $2.28 in the same period last year.
Why did Western Alliance miss Q3 revenue expectations?
Revenue fell short of forecasts primarily because total deposits missed expectations, declining to $81.76 billion, while net interest income of $807.6 million trailed estimates.
When is Western Alliance holding its earnings conference call?
Western Alliance Bancorp is holding its third-quarter earnings conference call tomorrow at 12:00 PM ET.