Western Alliance Bancorp Q2 revenue rises, beating estimates on robust loan growth
WAL•Key reported metrics
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $995.70 million | $970.16 million (12 analysts) |
| Q2 EPS | $2.36 | ||
| Q2 Net Interest Margin | 3.53% |
Drivers behind the quarter
- Loan growth - Quarterly HFI loan growth of $1.8 billion, led by commercial and industrial lending, drove higher net interest income.
- Asset quality - Asset quality trends improved, with declines in special mention and criticized loans and lower net charge-offs.
- Deposit optimization - Deposits fell 1% as the company reduced higher-cost balances as part of its deposit optimization strategy.
Analyst views and valuation
The current average analyst rating on the shares is buy, with 11 strong buy or buy ratings, hold ratings and no sell or strong sell ratings.
