Western Alliance Bancorporation Reports Strong Q2 Financial Results

By Tamara Parker • Friday, July 19 15:24 • Permanent Link

Western Alliance Bancorporation has reported its second quarter 2024 financial results, showing a strong performance across various key metrics. Net income for the quarter was $193.6 million, marking a 9.1% increase from the previous quarter and a 10.2% decrease from the same period last year. Earnings per share also saw a positive trend, reaching $1.75, up 9.4% from the last quarter but down 10.7% from the same period in 2023.

Pre-provision net revenue (PPNR) for the quarter was $285.0 million, reflecting a significant increase of $38.0 million from the first quarter of 2024 and a slight increase of $3.1 million from the second quarter of 2023. Net revenue totaled $771.8 million for the quarter, representing a 5.9% increase from the last quarter and a substantial 15.3% increase from the same period last year.

The financial position of the bank also showed positive growth. HFI loans increased by $1.7 billion, or 3.4%, from the previous quarter, while total deposits grew by $4.0 billion, or 6.5%. Stockholders' equity saw a $162 million increase from the last quarter. Additionally, nonperforming assets to total assets stood at 0.51%, compared to 0.53% in the previous quarter, while annualized net loan charge-offs to average loans outstanding reached 0.18%, up from 0.08% in the first quarter of 2024.

In terms of key performance metrics, the net interest margin increased to 3.63% from 3.60% in the first quarter of 2024. The return on average assets and on tangible common equity stood at 0.99% and 14.3%, respectively, compared to 0.98% and 13.4% in the last quarter. The CET 1 ratio of 11.0% remained stable from the previous quarter.

The company's balance sheet also demonstrated growth, with HFI loans reaching $52.4 billion, an increase of $1.7 billion from the previous quarter and $4.6 billion from the same period last year. Total deposits stood at $66.2 billion, marking a $4.0 billion increase from the last quarter and a substantial $15.2 billion increase from the second quarter of 2023.

As a result of these announcements, the company's shares have moved 8.8% on the market, and are now trading at a price of $77.33. If you want to know more, read the company's complete 8-K report here.

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