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what it is
Western Alliance takes deposits and lends them out to businesses, property owners, builders, and consumers.
how it gets paid
Last year Western Alliance made $136M in revenue. Commercial and industrial loans was the main engine at $40.8M, or 30% of sales.
why it's growing
Revenue grew 99.7% last year. The rebound came from steadier quarterly earnings, with EPS rising from $1.59 in Q1 2024 to $1.95 in Q4 2024.
what just happened
Quarterly revenue hit $71M, while fourth-quarter EPS improved to $1.95 from $1.33 a year earlier.
At a glance
B balance sheet — gets the job done, barely
70/100 earnings predictability — reasonably predictable
10.9x trailing p/e — the market's not buying it — or you found a deal
2.5% dividend yield — cash in your pocket every quarter
$7.09 fy2024 eps est
xvary composite: 49/100 — below average
What they do
Western Alliance takes deposits and lends them out to businesses, property owners, builders, and consumers.
Banks win when depositors stay and borrowers come back. Western Alliance offers checking, savings, money market accounts, CDs, cash management, and several loan types, so more of your financial life can stay in one place. That breadth helped annual revenue reach $136M, up 99.7% vs. prior year, based on company filings.
How they make money
$136M
annual revenue · their business grew +99.7% last year
Commercial and industrial loans
$40.8M
Commercial real estate loans
$38.1M
Construction and land development loans
$24.5M
Deposit and treasury services
$18.0M
Consumer and other loans
$14.6M
The products that matter
business lending and deposits
Commercial Banking
core driver · tied to $90B in assets
This is the main earnings machine behind the bank's $90B asset base and most of its $5.4B annual revenue. If you are underwriting WAL, this is the line you are really underwriting.
core earnings
specialized industry lending
Association Banking
one of five divisions
It is one of the bank's five operating divisions. That matters because specialized verticals are where regional banks try to earn better spreads than plain-vanilla lending.
niche exposure
business cash management
Treasury Management
fee income support
This helps diversify revenue, but Q4 2025 still saw a $56.6M reduction from earnings credits. Translation: fee lines help, but they do not cancel out pressure on the core spread business.
margin watch
Key numbers
31%
debt/capital
Debt/capital → how much of the bank is financed with borrowed money → at 31%, funding costs can move earnings fast.
10.9x
trailing p/e
P/E → how many dollars you pay for $1 of profit → you are paying a normal bank multiple for a stock with 1.9 beta.
$7.09
2024 eps
EPS → profit per share → it improved from $6.54 in 2023 but still trails the $9.70 posted in 2022.
2.5%
dividend yield
Dividend yield → cash paid to you as a share of price → WAL pays you some income while you wait for earnings to recover.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 3 — safer than 50% of stocks
- price stability 5 / 100
- long-term debt $3.3B (31% of capital)
B — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for WAL right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Quarterly revenue hit $71M, while fourth-quarter EPS improved to $1.95 from $1.33 a year earlier.
The rebound came from steadier quarterly earnings, with EPS rising from $1.59 in Q1 2024 to $1.95 in Q4 2024. Annual EPS also improved to $7.09 from $6.54 in 2023, and annual revenue reached $136M, up 99.7% vs. prior year.
$71M
revenue
$1.95
q4 eps
+190%
revenue growth
the number that mattered
$7.09 in full-year EPS matters most because it proves earnings are recovering, but it is still 26.9% below the $9.70 earned in 2022.
source: company filings, 2024
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What could go wrong
WAL does not need a mystery problem. The known problems are enough: a $56.6M earnings-credit hit, a $126M legal dispute, and a 2026 growth plan that asks for both loan and deposit momentum at the same time.
high
Earnings-credit pressure keeps hitting the core engine
Earnings credits reduced Q4 2025 interest income by $56.6M. For a bank that gets 67% of revenue from net interest income, that is not a side issue. It is the business model getting taxed.
direct pressure on the main profit engine
med
The Jefferies dispute becomes more than a headline
Western Alliance sued Jefferies over a $126M payment in March 2026. If that amount turns into a real loss or long-running capital drag, the market will not treat it as background noise.
up to ~1.8% of market cap at issue
med
Growth targets miss on one side of the balance sheet
Management is targeting $6B in loan growth and $8B in deposit growth for 2026. That sounds tidy on a slide. In practice, missing either side weakens the cheap-multiple case.
the valuation case depends on funding and loan momentum holding together
med
Volatility keeps the trust discount alive
A 5 / 100 price-stability score tells you this is not owned like a utility. Sharp swings can keep the shareholder base nervous even when the latest quarter looks better.
multiple stays depressed if confidence does not return
Here is what would change our mind: another quarter near the recent $907.9M revenue run-rate with less pressure from earnings credits and visible progress toward the $6B loan and $8B deposit targets. Here is what would make us more cautious: more pressure on net interest income or a legal outcome that turns $126M into a real capital event.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net interest income
It was $3.6B for the year and remains 67% of revenue. If this line weakens again, the thesis weakens with it.
risk
Jefferies lawsuit
The disputed amount is $126M. You do not ignore that just because the market cap is ~$7B.
calendar
2026 investor day
Management presents strategy on May 12, 2026. Watch how directly they defend the funding and growth plan.
trend
loan and deposit growth
The 2026 guide calls for $6B in loan growth and $8B in deposit growth. Same story. Two moving parts. Both matter.
Analyst rankings
earnings predictability
70 / 100
in human-speak, analysts think the earnings base is decent but not clean enough to rule out surprises.
consensus target spread
+11.5%
The average target is $98.50 versus $88.37 today. The street sees upside. The recent trim from $102.67 says conviction got smaller.
source: institutional data
Institutional activity
institutional ownership data for WAL is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$88
current price
n/a
target midpoint · n/a from current
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