WAL - How 1 Little-Known Bank Expects to Outlast Coronavirus Fears
The coronavirus pandemic continues to spread around the world, and the health impacts have been severe. Financial consequences of the outbreak have also taken a big toll, and although much of the attention has gone to the too-big-to-fail national banking institutions, regional banks have been closer to the front lines in dealing with the ramifications for small and mid-sized businesses forced to shut down because of COVID-19 concerns. In the Western U.S., Western Alliance Bancorporation (NYSE: WAL) has seen its stock fall dramatically on worries about how the crisis will play out.
Coming into Thursday's first-quarter financial report, Western Alliance shareholders were prepared to see some big declines in the bank's results. Nevertheless, they hoped to see signs that the regional financial institution was working to overcome longer-term concerns, and in that respect, Western Alliance delivered.
Western Alliance's first-quarter results weren't all that surprising in showing the economic damage done by the COVID-19 outbreak. Net income came in at $84 million, down 30% from year-ago levels. That resulted in earnings of $0.83 per share. Western Alliance did manage to boost net operating revenue, which rose almost 10% year over year to $285.4 million.