Western Alliance Bancorporation
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 1 day ago. More info.
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WAL Share Price and Events
7 Day Returns
1 Year Returns
WAL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Western Alliance Bancorporation (WAL) | 4.6% | 20.3% | 5.8% | -20.9% | 26.3% | 107.2% |
| US Banks | 1.2% | 8.6% | 3.7% | -5.2% | 43.3% | 51.7% |
| US Market | -0.1% | 3.7% | 10.2% | 7.6% | 38.1% | 46.4% |
1 Year Return vs Industry and Market
- WAL underperformed the Banks industry which returned -5.2% over the past year.
- WAL underperformed the Market in United States of America which returned 7.6% over the past year.
WAL Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Western Alliance Bancorporation.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 7 analysts.
= Stable Book Value * Return on Equity = $31.58 * 16.7% |
$5.29 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 10 analysts. | $31.58 |
| Discount Rate (Cost of Equity) | See below | 7.5% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Banks Unlevered Beta | Simply Wall St/ S&P Global | 0.63 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.63 (1 + (1- 21%) (9.6%)) |
0.784 |
| 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)
= 2.73% + (0.8 * 5.96%) |
7.5% |
Discounted Cash Flow Calculation for NYSE:WAL 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.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (16.7% – 7.5%) * $31.58) |
$2.92 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $2.92 / (7.5% - 2.73%) |
$61.25 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $31.58 + $61.25 |
$92.83 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $92.83 |
| Current discount | Discount to share price of
$46.99
= -1 x ($46.99 - $92.83) / $92.83 |
49.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2019-03-31) in USD | $4.36 |
| NYSE:WAL Share Price ** | NYSE (2019-04-23) in USD | $46.99 |
| United States of America Banks Industry PE Ratio | Median Figure of 587 Publicly-Listed Banks Companies | 12.86x |
| United States of America Market PE Ratio | Median Figure of 3,080 Publicly-Listed Companies | 18.03x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Western Alliance Bancorporation.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:WAL Share Price ÷ EPS (both in USD) = 46.99 ÷ 4.36 |
10.77x |
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 US Banks industry average.
- Western Alliance Bancorporation is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Western Alliance Bancorporation's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 10.77x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts |
8.3%per year |
| United States of America Banks Industry PEG Ratio | Median Figure of 262 Publicly-Listed Banks Companies | 1.25x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.55x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 10.77x ÷ 8.3% |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2019-03-31) in USD | $26.04 |
| NYSE:WAL Share Price * | NYSE (2019-04-23) in USD | $46.99 |
| United States of America Banks Industry PB Ratio | Median Figure of 592 Publicly-Listed Banks Companies | 1.22x |
| United States of America Market PB Ratio | Median Figure of 5,185 Publicly-Listed Companies | 1.92x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:WAL Share Price ÷ Book Value per Share (both in USD) = 46.99 ÷ 26.04 |
1.8x |
* 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 US Banks industry average.
Value checks
We assess Western Alliance Bancorporation's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check) 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.
WAL Future Performance
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!
Earnings growth vs Low Risk Savings
- Western Alliance Bancorporation's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Western Alliance Bancorporation's earnings growth is positive but not above the United States of America market average.
- Western Alliance Bancorporation's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:WAL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts | 8.3% |
| NYSE:WAL Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts | 9.7% |
| United States of America Banks Industry Earnings Growth Rate | Market Cap Weighted Average | 4.2% |
| United States of America Banks Industry Revenue Growth Rate | Market Cap Weighted Average | 4.3% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.5% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 1,316 | 580 | 1 | |
| 2020-12-31 | 1,215 | 523 | 7 | |
| 2019-12-31 | 1,114 | 483 | 7 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2019-03-31 | 975 | 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 weeks ago) | See Below |
| Future Estimates | Average of up to 9 Analyst Estimates (S&P Global) | See Below |
All data from Western Alliance Bancorporation Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 5.42 | 5.42 | 5.42 | 1.00 |
| 2020-12-31 | 5.06 | 5.75 | 4.80 | 11.00 |
| 2019-12-31 | 4.85 | 5.12 | 4.71 | 3.00 |
| 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%).
Future performance checks
We assess Western Alliance Bancorporation's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
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.
WAL 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
Past Earnings growth analysis
- 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 not exceeded the US Banks industry average in the past year (29.1% vs 43.5%).
Earnings and Revenue History
All data from Western Alliance Bancorporation Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | 302.21 | |
| 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 | |
| 2012-06-30 | 254.79 | 32.51 | 141.00 |
*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 US 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.
Past performance checks
We assess Western Alliance Bancorporation's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Western Alliance Bancorporation has a total score of 3/6, 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.
WAL Health
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.
Balance sheet
Assets
Liabilities and shares
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.
All data from Western Alliance Bancorporation Company Filings, last reported 3 weeks ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2019-03-31 | 2,720.60 | 466.90 | 785.60 |
| 2018-12-31 | 2,613.73 | 916.83 | 352.67 |
| 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 | 439.41 |
| 2017-12-31 | 2,229.70 | 847.37 | 312.08 |
| 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 | 243.14 |
| 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 |
| 2012-06-30 | 672.12 | 427.07 | 178.92 |
BANK ANALYSIS
This company is a bank or financial institution, which is analysed accordingly below.
- 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%).
Financial health checks
We assess Western Alliance Bancorporation's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Western Alliance Bancorporation has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
WAL Dividends
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
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
- 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.
| 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 9 Analyst Estimates (S&P Global) | See Below |
| United States of America Banks Industry Average Dividend Yield | Market Cap Weighted Average of 472 Stocks | 2.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2008 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 0.70 | 2.00 |
| 2020-12-31 | 1.20 | 1.00 |
| 2019-12-31 | 0.75 | 1.00 |
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.
Income/ dividend checks
We assess Western Alliance Bancorporation's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
WAL Management
CEO
| COMPENSATION | $6,918,693 |
| AGE | 64 |
| TENURE AS CEO | 1 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 increased by more than 20% in the past year.
- Ken's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Western Alliance Bancorporation management team in years:
- The tenure for the Western Alliance Bancorporation management team is about average.
Management Team
Robert Sarver
Executive Chairman of the Board
$6M
57
1 yrs
Ken Vecchione
CEO & Director
$7M
64
1 yrs
Jim Haught
President & COO
$2M
49
1 yrs
Dale Gibbons
Vice Chairman & CFO
$2M
58
15.9 yrs
Dan Myers
Executive Vice President of Northern California Administration
$1M
58
3.8 yrs
James Ardrey
Senior VP & Chief Accounting Officer
50
7.6 yrs
Randall Theisen
Executive VP
60
Robyn Young
Executive VP & Chief Marketing Officer
Barbara Kennedy
Executive VP & Chief Human Resource Officer
51
1 yrs
Gary Cady
EVP of Southern California Administration
$1M
64
15.9 yrs
Board of Directors Tenure
Average tenure and age of the Western Alliance Bancorporation board of directors in years:
- 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
CEO & Director
$7M
64
11.5 yrs
Donald Snyder
Director
$255K
71
22.3 yrs
Robert Sarver
Executive Chairman of the Board
$6M
57
16.3 yrs
James Nave
Director
$255K
74
23.5 yrs
Sung Sohn
Director
$262K
74
8.5 yrs
Howard Gould
Director
$250K
68
3.5 yrs
Michael Patriarca
Director
$418K
67
2.6 yrs
Bruce Beach
Lead Independent Director
$271K
69
9.3 yrs
Bill Boyd
Director
$237K
87
17.3 yrs
Cary Mack
Director
$245K
59
14 yrs
Who owns this company?
Recent Insider Trading
- Western Alliance Bancorporation insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 19. Mar 19 | Sell | Robert McAuslan | Individual | 15. Mar 19 | 15. Mar 19 | -2,000 | $44.97 | $-89,940 | ||
| 07. Mar 19 | Sell | Randall Theisen | Individual | 05. Mar 19 | 05. Mar 19 | -6,358 | $46.17 | $-293,549 | ||
| 22. Feb 19 | Sell | Bruce Beach | Individual | 20. Feb 19 | 20. Feb 19 | -3,750 | $46.55 | $-174,563 | ||
| 30. Jan 19 | Sell | Randall Theisen | Individual | 29. Jan 19 | 29. Jan 19 | -2,370 | $46.09 | $-109,233 | ||
| 30. Jan 19 | Sell | Robert McAuslan | Individual | 28. Jan 19 | 28. Jan 19 | -2,000 | $46.00 | $-92,000 | ||
| 25. Oct 18 | Buy | Michael Patriarca | Individual | 24. Oct 18 | 24. Oct 18 | 2,140 | $46.78 | $100,109 | ||
| 30. Jul 18 | Buy | Dale Gibbons | Individual | 27. Jul 18 | 27. Jul 18 | 2,093 | $56.88 | $119,050 | ||
| 30. Jul 18 | Buy | Kenneth Vecchione | Individual | 27. Jul 18 | 27. Jul 18 | 10,400 | $56.95 | $592,264 | ||
| 25. Jul 18 | Sell | Donald Snyder | Individual | 23. Jul 18 | 23. Jul 18 | -4,500 | $58.64 | $-263,880 | ||
| 18. Jun 18 | Sell | Donald Snyder | Individual | 14. Jun 18 | 14. Jun 18 | -6,352 | $61.48 | $-390,521 | ||
| 08. Jun 18 | Sell | Robert McAuslan | Individual | 06. Jun 18 | 06. Jun 18 | -3,000 | $62.26 | $-186,780 | ||
| 08. May 18 | Sell | Sung Sohn | Individual | 04. May 18 | 04. May 18 | -2,500 | $60.00 | $-150,000 | ||
| 02. May 18 | Sell | Gerald Cady | Individual | 30. Apr 18 | 30. Apr 18 | -5,500 | $60.00 | $-330,000 | ||
Management checks
We assess Western Alliance Bancorporation's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
WAL News
Simply Wall St News
What Should You Know About Western Alliance Bancorporation's (NYSE:WAL) Earnings Outlook?
The latest earnings announcement Western Alliance Bancorporation (NYSE:WAL) released in December 2018a
Simply Wall St - – Full articleWhat You Should Know About Western Alliance Bancorporation’s (NYSE:WAL) Risks
Western Alliance Bancorporation (NYSE:WAL) is a small-cap bank with a market capitalisation of US$4.5b. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting Western Alliance Bancorporation’s bottom line. … View our latest analysis for Western Alliance Bancorporation
Simply Wall St - – Full articleUpdate: Western Alliance Bancorporation (NYSE:WAL) Stock Gained 62% In The Last Five Years
Western Alliance Bancorporation (NYSE:WAL) shareholders have seen the share price descend 13% over the month. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, Western Alliance Bancorporation managed to grow its earnings per share at 26% a year.
Simply Wall St - – Full articleDoes Western Alliance Bancorporation (NYSE:WAL) Have A Good P/E Ratio?
We'll look at Western Alliance Bancorporation's (NYSE:WAL) P/E ratio and reflect on what it tells us about the company's share price. … Western Alliance Bancorporation has a P/E ratio of 10.57, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleShould You Be Concerned About Western Alliance Bancorporation’s (NYSE:WAL) Liquidity?
As a small-cap finance stock with a market capitalisation of US$4.9b, the risk and profitability of Western Alliance Bancorporation (NYSE:WAL) are largely tied to the underlying economic growth of the region it operates in US. … Today we will be measuring Western Alliance Bancorporation’s financial risk position by looking at three leverage and liquidity metrics. … See our latest analysis for Western Alliance Bancorporation
Simply Wall St - – Full articleHave Insiders Been Selling Western Alliance Bancorporation (NYSE:WAL) Shares This Year?
So before you buy or sell Western Alliance Bancorporation (NYSE:WAL), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Western Alliance Bancorporation.
Simply Wall St - – Full articleWhat Are Analysts Saying About Western Alliance Bancorporation's (NYSE:WAL) Future?
Based on Western Alliance Bancorporation's (NYSE:WAL) earnings update on 31 December 2018, … analyst consensus outlook appear cautiously subdued, … the higher past 5-year average growth rate of 26%.
Simply Wall St - – Full articleWhy Western Alliance Bancorporation (NYSE:WAL) Could Be Worth Watching
saw significant share price movement during recent months on the NYSE, rising to highs of $59.17 and falling to the lows of $37.61. … A question to answer is whether Western Alliance Bancorporation's current trading price of $39.47 reflective of the actual value of the? … Let’s take a look at Western Alliance Bancorporation’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleWestern Alliance Bancorporation (NYSE:WAL) Is Trading At A 24.84% Discount
This is because the rules banks face are different to other companies, which can impact the way we forecast their cash flows. … For example, banks are required to hold more capital to reduce the risk to depositors.
Simply Wall St - – Full articleHave You Considered These Key Risks For Western Alliance Bancorporation (NYSE:WAL)?
As a small-cap bank with a market capitalisation of US$5.0b, Western Alliance Bancorporation’s (NYSE:WAL) profit and value are directly affected by economic activity. … Risk associate with repayment is measured by the level of bad debt which is an expense written off Western Alliance Bancorporation’s bottom line. … Check out our latest analysis for Western Alliance Bancorporation
Simply Wall St - – Full articleWAL 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 |
| WAL | |
| Exchange: | NYSE |
| Founded: | 1994 |
| $4,861,397,440 | |
| 103,456,000 | |
| 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 |
Number of employees
Current staff
Industry
| Regional Banks | |
| Banks |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/23 23:59 |
| End of day share price update: | 2019/04/23 00:00 |
| Last estimates confirmation: | 2019/04/23 |
| Last earnings filing: | 2019/04/22 |
| 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.
