WAL - Western Alliance: Loan Growth Subdued Credit Costs To Drive Earnings

• The economic recovery will likely drive loan growth in the year ahead.
• As loan growth will likely outpace deposit growth in the remainder of the year, the excess liquidity will likely decline, thereby improving the margin.
• Further reversals of provisions for loan losses are likely because of the high allowance level relative to actual loan losses.
• The year-end target price is quite close to the current market price. Further, WAL is offering a low dividend yield.

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