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Mar 31, 2023

Western Alliance Q1 2023 Earnings Report

Achieved net income and earnings per share, increasing tangible book value per share and maintaining a strong CET1 ratio

Key Takeaways

Western Alliance Bancorporation reported a net income of $142.2 million and earnings per share of $1.28 for Q1 2023. The company's deposits stabilized at $47.6 billion by the end of the quarter, with a subsequent increase of $2.0 billion through April 14. The CET1 ratio stood at 9.4%, and the tangible book value per share increased by 3.3% to $41.56 from year-end.

Net income for Q1 2023 was $142.2 million, with earnings per share at $1.28.

Deposits stabilized at $47.6 billion by the end of Q1, with an additional $2.0 billion increase through April 14.

Tangible book value per share increased by 3.3% to $41.56 from year-end.

CET1 ratio was reported at 9.4%.

Total Revenue
$552M
Previous year: $556M
-0.7%
EPS
$2.3
Previous year: $2.22
+3.6%
Net Interest Margin
3.79%
Previous year: 3.32%
+14.2%
Cash and Equivalents
$3.64B
Previous year: $2.6B
+39.8%
Total Assets
$71B
Previous year: $60.6B
+17.3%

Western Alliance

Western Alliance

Forward Guidance

Western Alliance Bancorporation is targeting a higher CET1 ratio at or above 11% and greater liquidity with a loan-to-deposit ratio in the mid-80% range as it progresses through the year and into 2024.

Positive Outlook

  • Targeting a CET1 ratio at or above 11%.
  • Aiming for a loan-to-deposit ratio in the mid-80% range.
  • Focus on sound financial fundamentals.
  • Prioritizing core client relationships with holistic lending, deposit, and treasury management needs.
  • Balance sheet repositioning will have an immediate accretive impact to regulatory capital.