NYSE$WAL
Western Alliance Bancorporation · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Reported net income of $93.3 million and EPS of $0.93, reflecting perseverance in challenging times.
Western Alliance Bancorporation reported a net income of $93.3 million and earnings per share of $0.93 for Q2 2020. Despite a $40.8 million increase in the provision for credit losses, these figures represent an increase of over 10% from the first quarter. The company facilitated $1.9 billion in loans under the Payroll Protection Program, contributing to a $1.9 billion loan growth, which was surpassed by a $2.7 billion deposit growth.
- Net income increased to $93.3 million, and EPS reached $0.93, both up over 10% from Q1.
- Operating pre-provision net revenue rose by 19% from the prior quarter and 28% from the prior year.
- Facilitated $1.9 billion in loans to over 4,700 clients under the Payroll Protection Program, driving loan growth.
- Deposit growth of $2.7 billion outpaced loan growth, including $1.1 billion in deposits related to PPP loans.
Headline financials
Revenue & EPS history
Western Alliance · Revenue · Quarterly
$320M
Forward guidance
Western Alliance Corporation did not publish full forward guidance. Macroeconomic inputs resulting from the COVID-19 pandemic contributed to the $92.0 million provision for credit losses recognized during the quarter. Continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the accounting for credit losses under the new standard.
Tailwinds
- Preventative health measures were put in place and the majority of employees worked remotely for the majority of the second quarter.
- The Company also established social distancing precautions for all employees in the office and customers visiting branches, preventative cleaning at offices and branches, and eliminated business related travel.
- Implemented business continuity measures as necessary throughout the pandemic, including establishing a cross-functional COVID-19 team, monitoring potential business interruptions, making improvements to our remote working technology, and conducting regular discussions with our technology vendors.
- Helping business customers through the Paycheck Protection Program (PPP) and other loan products.
- Offering flexible repayment options to current customers and a streamlined loan modification process, when appropriate.
Headwinds
- The continued decline in macroeconomic inputs resulting from the COVID-19 pandemic relative to March 31, 2020 contributed to the $92.0 million provision for credit losses recognized during the quarter
- Continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the accounting for credit losses under the new standard.
- Temporarily suspending stock repurchases.
- Placing limits on originations to higher risk industries and customers including, but not limited to, transportation, travel, hospitality, entertainment, and retail.
- Tightened underwriting standards
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
+1.0%
Avg return
Earnings day
+2.1%
Avg return
5 days after
+4.4%
Avg return
30 days after
58%
38 / 65 earnings
Positive
+22.9%
Q1 2023
Best reaction
-13.2%
Q4 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -2.0% | +2.7% | +0.2% | |
| Q4 2025 | +1.3% | +4.0% | +0.9% | |
| Q3 2025 | +3.1% | +4.0% | +3.8% | |
| Q2 2025 | -1.7% | -1.7% | +5.4% | |
| Q1 2025 | +0.7% | +7.4% | +11.3% | |
| Q4 2024 | -5.1% | -6.5% | -8.3% | |
| Q3 2024 | -6.7% | -10.2% | -1.4% | |
| Q2 2024 | +4.6% | +6.4% | +7.2% | |
| Q1 2024 | +3.5% | +7.8% | +17.1% | |
| Q4 2023 | +1.4% | +3.0% | -11.5% | |
| Q3 2023 | -9.9% | -12.2% | +5.2% | |
| Q2 2023 | +16.5% | +21.4% | +19.9% | |
| Q1 2023 | +22.9% | +23.7% | +7.2% | |
| Q4 2022 | +4.1% | +9.7% | +8.4% | |
| Q3 2022 | +1.1% | +7.4% | +10.9% | |
| Q2 2022 | -5.8% | -7.4% | +5.3% | |
| Q1 2022 | -0.9% | -3.0% | -5.5% | |
| Q4 2021 | -13.2% | -9.3% | -14.1% | |
| Q3 2021 | +2.5% | -0.4% | -3.9% | |
| Q2 2021 | -1.9% | -1.8% | +3.8% | |
| Q1 2021 | +6.6% | +3.1% | +11.1% | |
| Q4 2020 | -0.2% | -2.5% | +23.5% | |
| Q3 2020 | +8.7% | +1.5% | +37.7% | |
| Q2 2020 | -2.1% | +1.9% | +3.9% | |
| Q1 2020 | +4.5% | +4.1% | -1.3% | |
| Q4 2019 | +0.4% | -0.5% | -2.3% | |
| Q3 2019 | +5.0% | +6.6% | +12.7% | |
| Q2 2019 | +5.5% | +8.0% | -1.5% | |
| Q1 2019 | +6.1% | +7.9% | -0.2% | |
| Q4 2018 | +2.6% | +2.5% | +5.3% | |
| Q3 2018 | -9.4% | -11.3% | -13.2% | |
| Q2 2018 | +0.0% | -0.1% | -1.0% | |
| Q1 2018 | +4.6% | +5.0% | +8.5% | |
| Q4 2017 | -0.6% | -2.1% | -0.2% | |
| Q3 2017 | +7.0% | +6.9% | +4.7% | |
| Q2 2017 | +1.5% | +5.3% | -3.7% | |
| Q1 2017 | +0.3% | +5.7% | -1.9% | |
| Q4 2016 | +2.4% | +0.1% | +4.6% | |
| Q3 2016 | -1.4% | -1.3% | +21.0% | |
| Q2 2016 | +0.7% | -0.1% | +4.9% | |
| Q1 2016 | -0.6% | — | — | |
| Q4 2015 | +1.9% | — | — | |
| Q3 2015 | +7.0% | — | — | |
| Q2 2015 | -1.1% | — | — | |
| Q1 2015 | +4.1% | — | — | |
| Q4 2014 | +6.0% | — | — | |
| Q3 2014 | +6.3% | — | — | |
| Q2 2014 | -1.0% | — | — | |
| Q1 2014 | +0.6% | — | — | |
| Q4 2013 | -5.9% | — | — | |
| Q3 2013 | +0.8% | — | — | |
| Q2 2013 | +7.0% | — | — | |
| Q1 2013 | +5.5% | — | — | |
| Q4 2012 | +7.7% | — | — | |
| Q3 2012 | +1.2% | — | — | |
| Q2 2012 | -4.1% | — | — | |
| Q1 2011 | -0.7% | — | — | |
| Q1 2012 | +2.2% | — | — | |
| Q4 2011 | -1.9% | — | — | |
| Q4 2010 | -1.9% | — | — | |
| Q3 2011 | -4.4% | — | — | |
| Q2 2011 | -11.7% | — | — | |
| Q3 2010 | -5.3% | — | — | |
| Q2 2010 | -3.6% | — | — | |
| Q1 2010 | +2.7% | — | — |
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