Western Alliance shares rise as Q2 earnings top estimates

Investing.com -- Western Alliance Bancorporation (NYSE:WAL) reported second-quarter earnings that exceeded analyst expectations, with shares rising 1% following the announcement.

The Phoenix-based bank posted earnings of $2.07 per share for the second quarter of 2025, surpassing the analyst consensus estimate of $2.02. Net income reached $237.8 million, up 22.8% compared to $193.6 million in the same quarter last year. Revenue totaled $845.9 million, representing a 9.6% increase YoY. The company’s stock edged up 1% in response to the results.

"Western Alliance delivered strong second quarter results featuring robust net interest income growth, continued loan and deposit momentum, and healthy earnings generated by improving profitability," said Kenneth A. Vecchione, President and Chief Executive Officer.

The bank reported solid growth in both loans and deposits during the quarter. Held-for-investment loans increased by $1.2 billion (2.2%) from the previous quarter to $55.9 billion, while total deposits grew by $1.8 billion (2.6%) to $71.1 billion. Year-over-year, loans increased 6.7% and deposits rose 7.3%.

Net interest margin improved to 3.53% from 3.47% in the previous quarter, though it declined from 3.63% in the same period last year. The bank’s efficiency ratio, adjusted for deposit costs, improved to 51.8% compared to 55.8% in the first quarter.

Asset quality metrics remained stable with nonperforming loans to total funded loans decreasing to 0.76% from 0.82% in the previous quarter. Net loan charge-offs were 0.22% of average loans, slightly up from 0.20% in the first quarter.

The bank maintained strong capital levels with a common equity tier 1 ratio of 11.2%, while tangible book value per share increased 14.5% YoY to $55.87.

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