Q1 2024 Earnings Summary
Reported on Feb 18, 2025 (After Market Close)
Pre-Earnings Price$57.44Last close (Apr 19, 2024)
Post-Earnings Price$57.44Last close (Apr 19, 2024)
Price Change
$0.00(0.00%)
- Western Alliance Bancorp expects strong deposit growth of approximately $2 billion per quarter, aiming for a total of $11 billion in deposit growth for the year, which enhances liquidity and provides funding for loan growth.
- The company has increased its loan growth projections from $500 million to $1 billion per quarter, which, combined with fewer anticipated Fed rate cuts, is expected to drive net interest income higher and support quarter-over-quarter growth.
- Western Alliance boasts a low charge-off rate of an annualized 8 basis points, which is significantly lower than the industry average, indicating strong asset quality and lower credit risk.
- Net Interest Margin (NIM) is expected to compress further by approximately 10 basis points in Q2, due to higher volumes and the impact of building high-quality liquid assets (HQLA), which may negatively affect profitability.
- Noninterest income is expected to decrease in future quarters due to seasonality, particularly in mortgage banking and Homeowners Associations (HOA), which had their best performance in Q1 and are expected to be lower in subsequent quarters.
- There may be a lag in deploying significant deposit growth into loan growth, potentially holding back net interest income growth in the second quarter, as the bank hasn't yet fully originated sufficient quality loans to utilize the increased deposits.