Earnings for Western Alliance Bancorporation in Phoenix jumped 550% for the third quarter from a year ago to $13 million, due largely to strong loan growth and improved asset quality.
Its earnings per share of four cents fell short of consensus analysts' estimates, but that was due mainly to a $6.9 million charge it took for repaying $140 million to the Troubled Asset Relief Program during the quarter.
Driven by growth in commercial and industrial loans and commercial leases, total loans increased 8.5% from Sept. 30, 2010 to $4.5 billion. Deposits rose 5.7% year over year, to $5.6 billion, due primarily to growth in savings, money-market and interest-bearing demand deposits. Net chargeoffs declined by more than 38% year over year, to $15.3 million, but rose 12.5% from the end second quarter.
The $6.6 billion-asset company released its earnings after the markets closed on Monday. In early trading Tuesday, Western Alliance's shares were up nearly 5%, to $5.72.