Western Alliance Bancorporation (WAL) operates as the bank holding company for Western Alliance Bank, offering various banking products and related services primarily in Arizona, California, and Nevada. The company operates through two segments, Commercial and Consumer Related. Its deposit products include checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts, demand deposits, and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans.
The company also offers commercial real estate loans, construction and land development loans, and consumer loans. In addition, it provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. And, it holds certain investment securities, municipal and non-profit loans, and leases, invests primarily in low-income housing tax credits and small business investment corporations, and holds certain real estate loans and related securities.
as of March 13, 2023
The 2023 bank run began last week and continued today, at least from a market perspective. Western Alliance’s stock dropped to $7.51 today, a price it hadn’t seen since 2012. In moments like this, it doesn’t matter how great the company has done in the past. WA started in 1994 and in the last decade grew revenue from $333 million to nearly $3 billion with net income following the same margin rate on the way up. In the last twelve months, the company did over $1 billion in net income. Most of this came on the back of interest income. WA has roughly $52 billion in gross loans and has built book value from $8.31 to nearly $47 per share. The stock normally trades closer to 2x book value. Today, it’s valued at roughly 50% of book. With the way options are pricing tonight, it’s hard to say what direction to take.
