Western Alliance declares quarterly dividends on stocks

Published 01/05/2025, 22:10
Western Alliance declares quarterly dividends on stocks

Western Alliance Bancorporation (NYSE:WAL) announced on Thursday that its Board of Directors has declared a quarterly cash dividend for both its common and preferred stock. The dividend for common stock is set at $0.38 per share, payable on May 30, 2025, to shareholders of record as of May 15, 2025. This continues the company’s track record of dividend growth, with InvestingPro data showing six consecutive years of dividend increases. The current dividend yield stands at 2.18%, with the stock trading at $70.98.

Additionally, a quarterly cash dividend of $106.25 per share on the company’s 4.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, was declared, which is equivalent to $0.265625 per depositary share. This dividend is due to be paid on June 30, 2025, to shareholders of record as of June 13, 2025.

The announcement was made in a Form 8-K filing with the Securities and Exchange Commission (SEC) on May 1, 2025. According to the filing, the decision was made during the Board meeting held on the same day.

Western Alliance Bancorporation, a Delaware-incorporated company, is headquartered in Phoenix, Arizona, and operates as a state commercial bank. The company’s common stock, with a par value of $0.0001 per share, and depositary shares representing interest in preferred stock, are both traded on the New York Stock Exchange under the symbols "WAL" and "WAL PrA" respectively.

This information is based on the recent SEC filing by Western Alliance Bancorporation and adheres to the reporting standards for such disclosures. The declaration of dividends is a routine part of the company’s financial operations, reflecting its current financial position and policy of returning value to its shareholders.

In other recent news, Western Alliance Bancorporation reported its Q1 2025 earnings, which aligned with analyst expectations for earnings per share (EPS) at $1.79 but missed revenue forecasts, bringing in $778 million compared to the anticipated $791.05 million. This revenue shortfall has raised some concerns among investors, despite a 12% year-over-year increase in pre-provision net revenue and a 9% rise in net interest income. The bank’s management remains focused on strong loan and deposit growth for the year, with guidance for a $5 billion increase in loans and an $8 billion rise in deposits.

Analysts have reacted to these developments with mixed adjustments to their price targets for Western Alliance. DA Davidson reduced its target from $106 to $90, while maintaining a Buy rating, citing concerns over criticized loans but noting the bank’s prudent approach to reserves. Similarly, Keefe, Bruyette & Woods lowered their target to $95 from $110, keeping an Outperform rating, and highlighted the bank’s strong capital position with a Common Equity Tier 1 ratio over 11%.

Despite these adjustments, analysts like Christopher McGratty from Keefe, Bruyette & Woods see intrinsic value in Western Alliance’s stock, although they advise patience due to macroeconomic volatility. The bank continues to emphasize its diversified business lines and digital platforms as key areas of focus, with expectations of a 6-8% increase in both net interest income and non-interest income for 2025. Western Alliance’s management has also expressed confidence in maintaining strong credit quality and has no immediate plans for stock buybacks or mergers.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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