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Mar 31, 2024

Western Alliance Q1 2024 Earnings Report

Reported strong first quarter results driven by deposit growth and balance sheet repositioning.

Key Takeaways

Western Alliance Bancorporation reported a net income of $177.4 million and earnings per share of $1.60 for Q1 2024. The company saw significant deposit growth of $6.9 billion, which enhanced liquidity and allowed for the repayment of $1.0 billion in borrowings. Excluding notable items, net income was $190.9 million and earnings per share were $1.72.

Net income reached $177.4 million, with earnings per share at $1.60.

Deposits grew by $6.9 billion, improving the loan-to-deposit ratio to 81.5%.

The company repaid $1.0 billion of borrowings, enhancing its liquidity profile.

Tangible book value per share climbed 13.8% year-over-year to $47.30, with a CET 1 ratio of 11.0%.

Total Revenue
$729M
Previous year: $552M
+32.1%
EPS
$1.72
Previous year: $2.3
-25.2%
Net Interest Margin
3.6%
Previous year: 3.79%
-5.0%
Efficiency Ratio (Adj.)
57.3%
Return on Avg. Assets
0.98%
Cash and Equivalents
$3.55B
Previous year: $3.64B
-2.5%
Total Assets
$77B
Previous year: $71B
+8.4%

Western Alliance

Western Alliance

Forward Guidance

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.

Positive Outlook

  • Expectations with regard to our business
  • Financial and operating results
  • Future economic performance
  • Dividends
  • Management’s estimates and projections of interest rates and interest rate policy

Challenges Ahead

  • The risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission
  • Adverse developments in the financial services industry generally such as the bank failures in 2023 and any related impact on depositor behavior
  • Risks related to the sufficiency of liquidity
  • Changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business
  • The impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East