Western Alliance earnings miss in Q2, deposits inch higher

Investing.com -- Western Alliance Bancorp on Tuesday reported mixed second-quarter results as earnings missed, but revenue beat Wall Street estimates, while deposits continued to improve following the banking turmoil earlier this year. 

Western Alliance Bancorporation (NYSE:WAL) fell more than 4% in after-hours following the report.  

The lender reported EPS of $1.96 on revenue of $669 million, beating Wall Street estimates for $1.97 on revenue of $658M. 

Total deposits rose 7.3% to $51 billion in the second quarter from the previous three months, though that is only slightly higher than the $49.4B reported on May 9. 

"Quarterly deposit growth of $3.5B lowered our HFI loan-to-deposit ratio to 94%, with total insured and collateralized deposits representing 81% of deposits and available liquidity coverage of 276% of uninsured deposits," the company said.

Net interest income increased 4.8% to $550.3M in Q2 year-on-year, but fell 9.8% from Q1, driven by an "increase in average short-term borrowings, combined with higher interest rates and was partially offset by higher yields on loans," it added. 

Similar to other regional banks, Western Alliance is down sharply this year, about 25%, pressured by a wave of selling pressure on bets the banking crisis in March would spark deposit outflows from smaller banks.