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Western Alliance Bancorporation

DB:WEA
Snowflake Description

Flawless balance sheet and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEA
DB
$5B
Market Cap
  1. Home
  2. DE
  3. Banks
Company description

Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. The last earnings update was 77 days ago. More info.


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WEA Share Price and Events
7 Day Returns
-0.5%
DB:WEA
2%
DE Banks
-1%
DE Market
1 Year Returns
-19.4%
DB:WEA
-23.8%
DE Banks
-6.2%
DE Market
WEA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Western Alliance Bancorporation (WEA) -0.5% 1.5% -1.7% -19.4% 25.9% 122.7%
DE Banks 2% 3.9% -15.3% -23.8% 6.2% -32.8%
DE Market -1% 2.1% -1.8% -6.2% 10.4% 12.6%
1 Year Return vs Industry and Market
  • WEA outperformed the Banks industry which returned -23.8% over the past year.
  • WEA underperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
WEA
Industry
5yr Volatility vs Market

WEA Value

 Is Western Alliance Bancorporation undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Western Alliance Bancorporation to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Western Alliance Bancorporation.

DB:WEA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= $31.05 * 17.2%
$5.33
Book Value of Equity per Share Weighted future Book Value estimates from 10 analysts. $31.05
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:WEA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 21%) (11.3%))
0.763
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.8 * 5.96%)
5%

Discounted Cash Flow Calculation for DB:WEA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Western Alliance Bancorporation is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:WEA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (17.2% – 5%) * $31.05)
$3.78
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.78 / (5% - 0.23%)
$79.22
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $31.05 + $79.22
$110.27
DB:WEA Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:WEA represents 0.88275x of NYSE:WAL
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88275x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 110.27 x 0.88275
€97.34
Value per share (EUR) From above. €97.34
Current discount Discount to share price of €39.00
= -1 x (€39.00 - €97.34) / €97.34
59.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Western Alliance Bancorporation is available for.
Intrinsic value
>50%
Share price is €39 vs Future cash flow value of €97.34
Current Discount Checks
For Western Alliance Bancorporation to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Western Alliance Bancorporation's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Western Alliance Bancorporation's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Western Alliance Bancorporation's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Western Alliance Bancorporation's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:WEA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.36
NYSE:WAL Share Price ** NYSE (2019-07-16) in USD $44.18
Germany Banks Industry PE Ratio Median Figure of 6 Publicly-Listed Banks Companies 14.76x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 19.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Western Alliance Bancorporation.

DB:WEA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:WAL Share Price ÷ EPS (both in USD)

= 44.18 ÷ 4.36

10.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Alliance Bancorporation is good value based on earnings compared to the DE Banks industry average.
  • Western Alliance Bancorporation is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Western Alliance Bancorporation's expected growth come at a high price?
Raw Data
DB:WEA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.14x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
7.8%per year
Europe Banks Industry PEG Ratio Median Figure of 114 Publicly-Listed Banks Companies 0.89x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:WEA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.14x ÷ 7.8%

1.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Alliance Bancorporation is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Western Alliance Bancorporation's assets?
Raw Data
DB:WEA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $26.30
NYSE:WAL Share Price * NYSE (2019-07-16) in USD $44.18
Germany Banks Industry PB Ratio Median Figure of 6 Publicly-Listed Banks Companies 0.7x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:WEA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:WAL Share Price ÷ Book Value per Share (both in USD)

= 44.18 ÷ 26.30

1.68x

* Primary Listing of Western Alliance Bancorporation.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Western Alliance Bancorporation is overvalued based on assets compared to the DE Banks industry average.
X
Value checks
We assess Western Alliance Bancorporation's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Western Alliance Bancorporation has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WEA Future Performance

 How is Western Alliance Bancorporation expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Western Alliance Bancorporation expected to grow at an attractive rate?
  • Western Alliance Bancorporation's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Western Alliance Bancorporation's earnings growth is positive but not above the Germany market average.
  • Western Alliance Bancorporation's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:WEA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:WEA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 7.8%
DB:WEA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 9.5%
Germany Banks Industry Earnings Growth Rate Market Cap Weighted Average 11.9%
Germany Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:WEA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:WEA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 1,344 607 1
2020-12-31 1,195 518 7
2019-12-31 1,109 490 7
DB:WEA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 975 604 456
2018-12-31 936 541 436
2018-09-30 905 509 406
2018-06-30 879 456 378
2018-03-31 847 384 353
2017-12-31 813 384 325
2017-09-30 778 337 306
2017-06-30 752 341 290
2017-03-31 721 297 272
2016-12-31 692 281 260
2016-09-30 658 290 248
2016-06-30 622 246 237

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Western Alliance Bancorporation's earnings are expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).
  • Western Alliance Bancorporation's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:WEA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Western Alliance Bancorporation Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WEA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.90 5.90 5.90 1.00
2020-12-31 5.03 5.43 4.80 10.00
2019-12-31 4.72 4.84 4.62 10.00
DB:WEA Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.36
2018-12-31 4.16
2018-09-30 3.88
2018-06-30 3.62
2018-03-31 3.38
2017-12-31 3.12
2017-09-30 2.94
2017-06-30 2.79
2017-03-31 2.62
2016-12-31 2.52
2016-09-30 2.43
2016-06-30 2.33

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Western Alliance Bancorporation is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Western Alliance Bancorporation's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Western Alliance Bancorporation has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WEA Past Performance

  How has Western Alliance Bancorporation performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Western Alliance Bancorporation's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Western Alliance Bancorporation has delivered over 20% year on year earnings growth in the past 5 years.
  • Western Alliance Bancorporation's 1-year earnings growth exceeds its 5-year average (29.1% vs 25.8%)
  • Western Alliance Bancorporation's earnings growth has exceeded the DE Banks industry average in the past year (29.1% vs 4.7%).
Earnings and Revenue History
Western Alliance Bancorporation's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Western Alliance Bancorporation Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:WEA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 975.38 455.68 354.75
2018-12-31 936.00 435.79 343.81
2018-09-30 904.59 406.05 327.86
2018-06-30 879.17 377.77 312.86
2018-03-31 846.96 353.05 308.34
2017-12-31 812.76 325.49 301.18
2017-09-30 777.85 305.95 293.07
2017-06-30 752.04 290.15 288.66
2017-03-31 721.44 271.81 277.44
2016-12-31 692.13 259.80 269.88
2016-09-30 657.64 248.37 249.70
2016-06-30 622.32 237.01 239.79
2016-03-31 566.92 214.62 220.40
2015-12-31 519.23 193.49 209.27
2015-09-30 479.17 175.20 193.09
2015-06-30 437.49 160.08 176.89
2015-03-31 422.12 156.54 176.19
2014-12-31 405.32 147.72 171.42
2014-09-30 383.68 139.41 169.77
2014-06-30 368.14 127.11 166.74
2014-03-31 349.55 125.31 159.34
2013-12-31 333.22 114.42 157.62
2013-09-30 317.50 116.22 152.76
2013-06-30 298.80 103.30 150.47
2013-03-31 283.29 82.27 154.68
2012-12-31 272.36 71.34 142.54
2012-09-30 258.30 43.78 145.84

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Western Alliance Bancorporation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Western Alliance Bancorporation used its assets more efficiently than the DE Banks industry average last year based on Return on Assets.
  • Unable to establish if Western Alliance Bancorporation improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Western Alliance Bancorporation's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Western Alliance Bancorporation has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WEA Health

 How is Western Alliance Bancorporation's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Western Alliance Bancorporation's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Western Alliance Bancorporation Company Filings, last reported 3 months ago.

DB:WEA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,720.62 437.01 786.34
2018-12-31 2,613.73 916.83 353.15
2018-09-30 2,488.39 411.97 702.33
2018-06-30 2,391.68 491.26 507.42
2018-03-31 2,293.76 724.91 441.27
2017-12-31 2,229.70 847.37 314.08
2017-09-30 2,145.63 456.68 650.42
2017-06-30 2,058.67 470.81 609.02
2017-03-31 1,968.99 459.79 647.07
2016-12-31 1,891.53 562.73 252.38
2016-09-30 1,857.35 527.37 360.43
2016-06-30 1,796.21 527.69 704.00
2016-03-31 1,660.16 335.73 1,035.71
2015-12-31 1,591.50 463.27 190.31
2015-09-30 1,583.70 630.43 329.42
2015-06-30 1,514.74 369.06 758.53
2015-03-31 1,051.33 436.26 492.41
2014-12-31 1,000.93 543.42 152.80
2014-09-30 1,003.12 455.38 258.80
2014-06-30 957.66 463.15 379.28
2014-03-31 894.81 458.61 465.93
2013-12-31 855.50 454.55 286.41
2013-09-30 826.29 491.26 509.07
2013-06-30 799.53 510.92 383.49
2013-03-31 781.30 395.20 556.28
2012-12-31 759.62 309.72 189.33
2012-09-30 698.01 332.90 307.92
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Western Alliance Bancorporation has an acceptable proportion of non-loan assets held.
  • Western Alliance Bancorporation's liabilities are made up of primarily low risk sources of funding.
  • Loans at Western Alliance Bancorporation are broadly funded by customer deposits.
  • Western Alliance Bancorporation's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Western Alliance Bancorporation has a sufficient allowance for bad loans.
  • Western Alliance Bancorporation has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Western Alliance Bancorporation's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Western Alliance Bancorporation has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WEA Dividends

 What is Western Alliance Bancorporation's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Western Alliance Bancorporation dividends. Estimated to be 1.39% next year.
If you bought €2,000 of Western Alliance Bancorporation shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Western Alliance Bancorporation's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Western Alliance Bancorporation's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:WEA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Germany Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:WEA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.55 2.00
2020-12-31 0.83 6.00
2019-12-31 0.42 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Western Alliance Bancorporation has not reported any payouts.
  • Unable to verify if Western Alliance Bancorporation's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Western Alliance Bancorporation's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Western Alliance Bancorporation has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (6.8x coverage).
X
Income/ dividend checks
We assess Western Alliance Bancorporation's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Western Alliance Bancorporation afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Western Alliance Bancorporation has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WEA Management

 What is the CEO of Western Alliance Bancorporation's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ken Vecchione
COMPENSATION $4,830,831
AGE 65
TENURE AS CEO 1.3 years
CEO Bio

Mr. Kenneth A. Vecchione, also known as Ken, has been Chief Executive Officer of Western Alliance Bancorporation and Western Alliance Bank since April 01, 2018. Mr. Vecchione served as President of Western Alliance Bancorporation from July 10, 2017 to April 01, 2018. Mr. Vecchione served as the President and Chief Executive Officer of Encore Capital Group, Inc., from April 8, 2013 and May 2013 to June 15, 2017. Mr. Vecchione served as the President and Chief Operating Officer of Western Alliance Bancorporation from April 2010 to April 5, 2013. He served as the Chief Financial Officer at Apollo Global Management, LLC from October 29, 2007 to 2010. He served as the Interim Chief Financial Officer, Secretary and Treasurer of Apollo Commercial Real Estate Finance, Inc. He is a leader with more than 35 years of experience and relationships in senior management roles at large, publicly traded banking and credit card companies. He has deep and diverse background in operations, corporate strategy, risk management and regulatory affairs. He served as the Chief Financial Officer of MBNA Corp. from September 30, 2004 to 2006, Executive Vice President from April 2001 to August 2002 and also served as its Co-Chief Financial Officer. He served as the Chief Financial Officer of MBNA Delaware. He joined MBNA America Bank in 1998 and served as its Division Head of Finance from 1998 to 2000, where he was responsible for accounting and tax, corporate and strategic planning and financial operations and financial planning. He served as the Chief Financial Officer of MBNA America Bank from October 2000 to 2004. He served as the Chief Financial Officer of AT&T Universal Card Services from 1997 to 1998. He served as Chief Financial Officer and Group President of First Data Corporation's Electronic Funds Management business from 1994 to 1997. Mr. Vecchione worked for 17 years at Citicorp., where he served as the Chief Financial Officer of CitiCorp. Credit Card business. He has been a Director of Western Alliance Bank at Western Alliance Bancorporation since March 2017 and served as its Chairman since January 2014 until December 2015. He served as Non-Executive Chairman of Cabot Credit Management Group Limited since May 1, 2017 until May 30, 2017. He served as Senior Vice Chairman of MBNA America Bank since July 2002 and also served as its Vice Chairman. He served as Vice Chairman of MBNA Corp. from 2004 to 2006. He served as Vice Chairman and Director at Bank of Nevada. He served as Non-Executive Director of Cabot Credit Management Group Limited until May 30, 2017. Mr. Vecchione has been a Director of Western Alliance Bancorporation since October 2007 and International Securities Exchange, Inc. since May 2007. He serves as a Director of International Securities Exchange, LLC. He served as a Director of Encore Capital Group, Inc. from April 2013 to June 15, 2017. He served as a Director of Federal Home Loan Bank of San Francisco since January 1, 2012 until December 31, 2015. He served as a Director of Affinion Group Inc. from November 21, 2006 to January 14, 2011 and Affinion Group Holdings, Inc. from November 21, 2006 to January 14, 2011. He served as a Director of MBNA America Bank, from 2000 to 2004 and MBNA Corp., since January 2005. Mr. Vecchione holds a B.S in Accounting from the State University of New York, Albany.

CEO Compensation
  • Ken's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Ken's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Western Alliance Bancorporation management team in years:

2.6
Average Tenure
59
Average Age
  • The tenure for the Western Alliance Bancorporation management team is about average.
Management Team

Robert Sarver

TITLE
Executive Chairman of the Board
COMPENSATION
$5M
AGE
58
TENURE
1.3 yrs

Ken Vecchione

TITLE
CEO & Director
COMPENSATION
$5M
AGE
65
TENURE
1.3 yrs

Jim Haught

TITLE
President & COO
COMPENSATION
$2M
AGE
50
TENURE
1.3 yrs

Dale Gibbons

TITLE
Vice Chairman & CFO
COMPENSATION
$2M
AGE
59
TENURE
16.2 yrs

Barbara Kennedy

TITLE
Executive VP & Chief Human Resource Officer
COMPENSATION
$2M
AGE
52
TENURE
1.3 yrs

Bob McAuslan

TITLE
Chairman of Senior Loan Committee
COMPENSATION
$1M
AGE
71
TENURE
8.3 yrs

Dan Myers

TITLE
Executive Vice President of Northern California Administration
COMPENSATION
$2M
AGE
59
TENURE
4 yrs

James Ardrey

TITLE
Senior VP & Chief Accounting Officer
AGE
51
TENURE
7.8 yrs

Randall Theisen

TITLE
Executive VP
AGE
61

Robyn Young

TITLE
Executive VP & Chief Marketing Officer
Board of Directors Tenure

Average tenure and age of the Western Alliance Bancorporation board of directors in years:

14.2
Average Tenure
68.5
Average Age
  • The average tenure for the Western Alliance Bancorporation board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Ken Vecchione

TITLE
CEO & Director
COMPENSATION
$5M
AGE
65
TENURE
11.8 yrs

Donald Snyder

TITLE
Director
COMPENSATION
$292K
AGE
72
TENURE
22.5 yrs

Robert Sarver

TITLE
Executive Chairman of the Board
COMPENSATION
$5M
AGE
58
TENURE
16.6 yrs

James Nave

TITLE
Director
COMPENSATION
$292K
AGE
75
TENURE
23.8 yrs

Sung Sohn

TITLE
Director
COMPENSATION
$302K
AGE
75
TENURE
8.8 yrs

Howard Gould

TITLE
Director
COMPENSATION
$292K
AGE
69
TENURE
3.8 yrs

Michael Patriarca

TITLE
Director
COMPENSATION
$357K
AGE
68
TENURE
2.8 yrs

Bruce Beach

TITLE
Lead Independent Director
COMPENSATION
$307K
AGE
70
TENURE
9.5 yrs

Marianne Johnson

TITLE
Director
COMPENSATION
$282K
AGE
61
TENURE
23.8 yrs

Steve Hilton

TITLE
Director
COMPENSATION
$282K
AGE
58
TENURE
16.6 yrs
Who owns this company?
Recent Insider Trading
  • Western Alliance Bancorporation individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
21. Jun 19 Buy William Boyd Individual 17. May 19 17. May 19 2,500 €40.54 €101,360
26. Apr 19 Sell Robert Sarver Individual 24. Apr 19 24. Apr 19 -66,351 €41.74 €-2,769,185
19. Mar 19 Sell Robert McAuslan Individual 15. Mar 19 15. Mar 19 -2,000 €39.72 €-79,435
07. Mar 19 Sell Randall Theisen Individual 05. Mar 19 05. Mar 19 -6,358 €40.86 €-259,791
22. Feb 19 Sell Bruce Beach Individual 20. Feb 19 20. Feb 19 -3,750 €40.97 €-153,650
30. Jan 19 Sell Randall Theisen Individual 29. Jan 19 29. Jan 19 -2,370 €40.34 €-95,601
30. Jan 19 Sell Robert McAuslan Individual 28. Jan 19 28. Jan 19 -2,000 €40.22 €-80,436
25. Oct 18 Buy Michael Patriarca Individual 24. Oct 18 24. Oct 18 2,140 €41.05 €87,856
30. Jul 18 Buy Dale Gibbons Individual 27. Jul 18 27. Jul 18 2,093 €48.81 €102,169
30. Jul 18 Buy Kenneth Vecchione Individual 27. Jul 18 27. Jul 18 10,400 €48.87 €508,281
25. Jul 18 Sell Donald Snyder Individual 23. Jul 18 23. Jul 18 -4,500 €50.11 €-225,485
X
Management checks
We assess Western Alliance Bancorporation's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Western Alliance Bancorporation has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WEA News

Simply Wall St News

WEA Company Info

Description

Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. The company offers deposit products, including checking accounts, savings accounts, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts. It also offers commercial and industrial loan products, such as working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as Internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. As of December 31, 2018, the company operated 38 branch locations and 11 loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

Details
Name: Western Alliance Bancorporation
WEA
Exchange: DB
Founded: 1994
$4,061,920,241
103,446,076
Website: http://www.westernalliancebancorporation.com
Address: Western Alliance Bancorporation
One East Washington Street,
Suite 1400,
Phoenix,
Arizona, 85004,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE WAL Common Shares New York Stock Exchange US USD 30. Jun 2005
DB WEA Common Shares Deutsche Boerse AG DE EUR 30. Jun 2005
BOVESPA WABC34 BDR EACH 1 REP 1 COM USD0.0001 Bolsa de Valores de Sao Paulo BR BRL 17. May 2019
Number of employees
Current staff
Staff numbers
1,773
Western Alliance Bancorporation employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 21:47
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/04/30
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.