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Western Alliance Bancorporation

WAL Q1 2025 Earnings

Reported Apr 21, 2025 at 4:25 PM ET · SEC Source

Q1 25 EPS

$1.79

BEAT +0.66%

Est. $1.78

Q1 25 Revenue

$778.0M

MISS 1.92%

Est. $793.2M

vs S&P Since Q1 25

-11.8%

TRAILING MARKET

WAL +27.3% vs S&P +39.1%

Market Reaction

Did WAL Beat Earnings? Q1 2025 Results

Western Alliance Bancorporation delivered a mixed first quarter in 2025, edging past earnings expectations while falling short on revenue. The Phoenix-based regional bank posted diluted EPS of $1.79, a narrow beat against the $1.78 consensus, while n… Read more Western Alliance Bancorporation delivered a mixed first quarter in 2025, edging past earnings expectations while falling short on revenue. The Phoenix-based regional bank posted diluted EPS of $1.79, a narrow beat against the $1.78 consensus, while net income grew 12.2% year-over-year to $199.10 million. Revenue, however, came in at $778.00 million, missing the $793.20 million estimate by 1.92% and declining 33.5% from the year-ago period, pressuring shares in after-hours trading. The primary driver of the top-line shortfall was a sequential pullback in non-interest income, which slipped to $127.40 million partly due to a $7.90 million equity investment loss and softer mortgage banking activity. On the balance sheet, deposit growth remained a standout, surging $3.00 billion quarter-over-quarter to $69.30 billion, reinforcing the bank's liquidity position. Looking ahead, management guided for 6-8% net interest income growth and HFI loan expansion of $5.00 billion in 2025, while noting it intends to maintain excess capital given ongoing uncertainty around trade policy and tariffs.

Key Takeaways

  • • Commercial and industrial loan growth of $989 million quarter-over-quarter and $4.4 billion year-over-year
  • • Deposit growth of $3.0 billion quarter-over-quarter driven by non-interest bearing and savings/money market deposits
  • • Reduced provision for credit losses to $31.2 million from $60.0 million in Q4
  • • Lower deposit costs from reduced ECR rates, declining $37.7 million quarter-over-quarter
  • • Net interest income growth of 8.6% year-over-year driven by higher earning asset balances and lower deposit rates
  • • Mortgage loan production of $12.1 billion in Q1 (81% purchase / 19% refinance), up 25% year-over-year
24/7 Wall St

WAL YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

WAL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Western Alliance delivered solid first quarter results led by continued loan and deposit growth following the completion of our balance sheet repositioning efforts in 2024. Our deep segment and product expertise enables our business to adapt quickly to an evolving macro environment, while our fortified capital and liquidity levels position the firm to maintain business momentum and prudent credit risk management. Quarterly loan and deposit growth of $1.1 billion and $3.0 billion, respectively, continued their upward trajectory and produced PPNR of $277.6 million. Asset quality remained stable with nonperforming assets declining to 0.60% of total assets and net loan charge-offs declining to 0.20% of average loans. Overall, we achieved net income of $199.1 million and earnings per share of $1.79 for the first quarter 2025, which resulted in a return on tangible common equity of 13.4%. Tangible book value per share climbed 14.4% year-over-year to $54.10 with a CET 1 ratio of 11.1%.”

— Kenneth A. Vecchione, Q1 2025 Earnings Press Release

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