Western Alliance Bancorp. in Phoenix reported higher third-quarter earnings due to double digit growth in loans and revenue.
The $10.3 billion-asset company said Thursday that it earned $40.9 million, up 43% from the previous year. Earnings per share of 46 cents beat estimates of analysts polled by Bloomberg by six cents.
Net operating revenue for the third quarter increased roughly 15% from a year earlier, to $103.7 million. Net interest income was up 16%, to $98.1 million, as total loans climbed 22%, to $7.8 billion. Deposits jumped 20%, to $8.7 billion.
The company's net interest margin increased two basis points, to 4.43%, from a year earlier.
Operating costs remained flat year over year, at $50 million, as an increase in employee salaries was offset by a decline in legal fees.
The company recorded a $419,000 credit for its loan loss provision in the third quarter, compared with not taking a provision a year earlier. Asset quality remained strong as net loan recoveries totaled $2.8 million, up roughly 87% from a year earlier.
Western Alliance said in a June regulatory filing that it could sell stock and use the proceeds for a range of purposes, including capital injections into its bank.