Western Alliance's Q4 net income rises 35% on loan growth

Overview

• Bank's Q4 net income rose 35% yr/yr, driven by loan and deposit growth

• Q4 EPS increased 32.8% yr/yr, reflecting strong financial performance

• Company repurchased $57.5 mln in shares during Q4

Outlook

• Western Alliance expects strong earnings trajectory in 2026

Result Drivers

• LOAN AND DEPOSIT GROWTH - Co reported $2.0 bln loan growth and $10.8 bln deposit increase, boosting total assets to $93 bln

• RECORD NET INTEREST INCOME - Co achieved record net interest income due to higher average interest-earning asset balances and lower rates on liabilities

• NON-INTEREST INCOME INCREASE - Co's non-interest income rose due to higher service charges, fees, and gains on mortgage activities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Western Alliance Bancorp is $100.00, about 13.1% above its January 26 closing price of $88.42

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBwcdhL2ka

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