Western Alliance Bancorp (WAL)

Western Alliance Bancorporation (WAL) dropped by 8.38% from $46.08 to $42.22 in the trading on Friday October 20, 2023. The reason why WAL stock down today is due to the profit-taking after strong Q3 FY23 results. Q3 earnings "highlighted by net interest income growth and net interest margin expansion, while maintaining stable asset quality," said President and CEO Kenneth A. Vecchione.

• EPS of $1.97, surpassing the $1.92 Wall Street consensus, ticked up from $1.96 in Q2 and fell from $2.42 a year ago.
• Net revenue of $716.2M, beating the $687.8M consensus, climbed from $669.3M in Q2 and from $663.9M a year before.
• Net interest income came in at $587.0M, up 6.7% Q/Q and down 2.5% Y/Y. The sequential increase was driven by a decrease in average short-term borrowings, combined with higher yields on HFI loans and was partially offset by an increase in deposit balances and rates.

WAL's stock dropped due to deposit outflows following the collapses of Silicon Valley Bank and Signature Bank. Although deposit levels have since returned to normal, the bank has been implementing formal strategies to recover and improve its liquidity position. Despite the challenges, WAL remains committed to its long-term growth objectives and rebuilding investor confidence.

https://www.benzinga.com/news/mid-cap/23/04/31686449/whats-going-on-with-western-alliance-stock