WAL - Even After A Strong Rebound Western Alliance Has Some Upside

• Strong lending activity and PPP-driven NIM upside helped drive a 10% beat at the PPOP line, while credit made an even bigger positive contribution to earnings.
• Western Alliance is rate-sensitive, not really a good thing in this market, but has been offsetting that with exceptional loan growth.
• Credit looks well in hand, and the bigger risk to Western Alliance over the next couple of years would appear to be in maintaining its exceptional pace of loan growth.
• Based on a long-term core earnings growth rate in the high single-digits, Western Alliance looks undervalued today and priced for a long-term double-digit annualized return.

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