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Chris McGrathy

Research Analyst at KBW

Christopher McGratty is Head of U.S. Bank Research at KBW, specializing in equity analysis of both large-cap and mid-cap banks, with a coverage portfolio that includes leading U.S. financial institutions. He has consistently ranked among the top analysts in his field, earning the #2 spot for Mid-Cap Banks in the Institutional Investor All-America Research Team in 2023 and 2024, and leading KBW’s Mid-Cap Banks Team to a #1 ranking during those years. McGratty began his career as a Financial Controller at Morgan Stanley from 2002-2004 before joining KBW in 2004, where he has built a reputation for insightful industry commentary featured in major financial media outlets. He holds a B.S. from Villanova University and is a Chartered Financial Analyst (CFA).

Chris McGrathy's questions to WESTERN ALLIANCE BANCORPORATION (WAL) leadership

Chris McGrathy's questions to WESTERN ALLIANCE BANCORPORATION (WAL) leadership • Q3 2025

Question

Chris McGrathy inquired about Western Alliance Bancorporation's post-quarter-end buybacks and capital arbitrage strategy. He also asked for biases within the Q4 guidance ranges for net interest income, fees, and expenses.

Answer

CFO Dale Gibbons explained the $300 million stock buyback authorization, with $25 million executed, and the potential for subordinated debt issuance to accelerate buybacks, aiming for CET1 closer to 11%. President and CEO Ken Vecchione noted share purchases in the mid-to-high $80s and further purchases when the stock dropped. Dale Gibbons indicated continued strength in non-interest income (due to a class action settlement), bolstered incentive accruals for expenses, and stable insurance costs for Q4.

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Chris McGrathy's questions to WESTERN ALLIANCE BANCORPORATION (WAL) leadership • Q3 2025

Question

Chris McGrathy asked for clarification on Western Alliance Bancorporation's post-quarter-end buybacks and comments regarding capital arbitrage.

Answer

CFO Dale Gibbons explained that the company plans to use subordinated debt to provide liquidity at the parent, accelerating the $300 million stock buyback program and aiming to bring the CET1 ratio closer to the 11% target. President and CEO Ken Vecchione added that shares were purchased in the mid-to-high $80s and more aggressively when the stock dropped. In a follow-up on guidance biases, Dale Gibbons indicated expectations for continued strong non-interest income, bolstered incentive accruals in Q4, and stable insurance costs. Ken Vecchione emphasized the projected 17-19% EPS growth for 2025.

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