Western Alliance Bancorp.'s (WAL) shares were up more than 3% Friday after the Phoenix company reported that its first-quarter income more than tripled from a year ago.
The $6.9 billion-asset company said late Thursday that it earned $9.5 million, up from $2.7 million a year earlier. Despite these gains, the company's earnings per share of 12 cents fell short of analysts’ estimates by two cents, according to Thomson Reuters.
Western Alliance's revenue totaled $75.9 million, up 13% from a year ago, due largely to a 15% increase in loans. The company's loans totaled $4.9 billion, primarily due to growth in the commercial and industrial, commercial leases and commercial real estate segments.
In addition to loan growth, a rise in investment securities helped drive an 11% increase in the bank's net interest income. For the quarter, the company recorded $57 million in net interest income.
The company's performance was hurt by a 30% rise in its provision for credit losses, which totaled $13.1 million. It also recorded a $1.3 million after-tax charge from repossessed assets valuations and sales. Additionally, its noninterest income fell almost 14%, to $5.9 million as gains on sales of investment securities declined roughly 74% to $361,000.
Western Alliance's shares were trading at $8.78 at midday on Friday.