Since February 2025, Western Alliance Bancorporation has been in a holding pattern, posting a small return of 2% while floating around $87.13. The stock also fell short of the S&P 500’s 8.6% gain during that period.

Is now the time to buy WAL? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.

Why Is Western Alliance Bancorporation a Good Business?

Operating through five distinct regional banking divisions across the western United States, Western Alliance Bancorporation (NYSE: WAL) provides commercial banking, treasury management, mortgage services, and specialized financial solutions through its banking divisions and subsidiaries.

1. Net Interest Income Skyrockets, Fueling Growth Opportunities

Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.

Western Alliance Bancorporation’s net interest income has grown at a 18.9% annualized rate over the last five years, much better than the broader banking industry. Its growth was driven by an increase in its outstanding loans as its net interest margin, which represents how much a bank earns in relation to its outstanding loan book, was flat throughout that period.

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Western Alliance Bancorporation’s EPS grew at an astounding 11.6% compounded annual growth rate over the last five years. This performance was better than most banking businesses.

3. Growing TBVPS Reflects Strong Asset Base

We consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation.

Western Alliance Bancorporation’s TBVPS increased by 15% annually over the last five years, and the past two years show a similar trajectory as TBVPS grew at an impressive 14.1% annual clip (from $43.42 to $56.57 per share).

Final Judgment

These are just a few reasons why Western Alliance Bancorporation ranks highly on our list. With its shares trailing the market in recent months, the stock trades at 1.3× forward P/B (or $87.13 per share). Is now a good time to initiate a position? See for yourself in our in-depth research report, it’s free.

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