WAL - Western Alliance Bancorporation's Strong Loan Growth To Limit Earnings Decline
Western Alliance Bancorporation’s (WAL) earnings plunged in the first quarter due to a surge in provisions expenses and losses on fair value adjustments of assets. Earnings will likely recover in the rest of the year, but remain lower than the earnings reported for the corresponding period last year. Provisions will likely be higher in the remainder of 2020 compared to 2019 due to the ongoing lockdown and economic crisis. Moreover, the net interest margin will likely compress further due to the Federal Funds rate cuts in March and the Paycheck Protection Program. Furthermore,