WAL Q4 Deep Dive: Fee Income and Deposit Growth Drive Momentum, Asset Quality in Focus

Regional banking company Western Alliance Bancorporation will be announcing earnings results this Monday after the bell. Here’s what you need to know.

Western Alliance Bancorporation beat analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $921.4 million, up 13.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ tangible book value per share estimates.

Is Western Alliance Bancorporation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Western Alliance Bancorporation’s revenue to grow 10.3% year on year to $916.8 million, slowing from the 15.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.37 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Western Alliance Bancorporation has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Western Alliance Bancorporation’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 20.7%, beating analysts’ expectations by 5%, and Dime Community Bancshares reported revenues up 24.5%, topping estimates by 5.2%. ServisFirst Bancshares traded up 14.6% following the results while Dime Community Bancshares was also up 12.5%.

Read our full analysis of ServisFirst Bancshares’s results here and Dime Community Bancshares’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Western Alliance Bancorporation’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $101.50 (compared to the current share price of $87).

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including Western Alliance Bancorporation and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 9.7% on average since the latest earnings results.

Western Alliance Bancorporation

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

Western Alliance Bancorporation reported revenues of $921.4 million, up 13.1% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ tangible book value per share estimates.

“Western Alliance achieved solid third quarter results with net income of $261 million and earnings per share of $2.28, up 10.1% from last quarter and 26.7% year-over-year. Healthy balance sheet growth and stable margins supported continued expansion of net interest income, which, alongside firming mortgage banking revenue, generated record PPNR1 of $394 million,” said Kenneth A. Vecchione, President and Chief Executive Officer.

Interestingly, the stock is up 18.2% since reporting and currently trades at $90.16.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 19.5% since reporting. It currently trades at $78.37.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.6% since the results and currently trades at $69.81.

Read our full analysis of The Bancorp’s results here.

Amalgamated Financial

Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.

Amalgamated Financial reported revenues of $86.41 million, up 6.8% year on year. This result surpassed analysts’ expectations by 3.4%. It was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ net interest income estimates.

The stock is up 25.7% since reporting and currently trades at $33.55.

Read our full, actionable report on Amalgamated Financial here, it’s free.

Hilltop Holdings

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Hilltop Holdings reported revenues of $331.1 million, up 7.8% year on year. This number beat analysts’ expectations by 6.6%. Overall, it was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 7.7% since reporting and currently trades at $34.95.

Read our full, actionable report on Hilltop Holdings here, it’s free.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the regional banks stocks, including Amalgamated Financial and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 98 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.

Amalgamated Financial

Founded in 1923 by labor unions seeking a financial institution aligned with worker values, Amalgamated Financial (NASDAQGM:AMAL) operates a values-oriented bank that provides commercial banking, trust services, and investment management to socially responsible organizations and individuals.

Amalgamated Financial reported revenues of $86.41 million, up 6.8% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ net interest income estimates.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “What stands out to me this quarter is mainly that we keep delivering great results. And the quality and sustainability of our earnings allows us to handle problem situations with ease.”

Interestingly, the stock is up 22.7% since reporting and currently trades at $32.73.

We think Amalgamated Financial is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 16.8% since reporting. It currently trades at $76.56.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.6% since the results and currently trades at $69.82.

Read our full analysis of The Bancorp’s results here.

Western Alliance Bancorporation

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

Western Alliance Bancorporation reported revenues of $921.4 million, up 13.1% year on year. This print surpassed analysts’ expectations by 3.5%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ tangible book value per share estimates.

The stock is up 13.5% since reporting and currently trades at $86.55.

Read our full, actionable report on Western Alliance Bancorporation here, it’s free for active Edge members.

First Hawaiian Bank

Dating back to 1858 as Hawaii's oldest bank with deep roots in the Pacific island communities, First Hawaiian operates a full-service community bank providing deposit accounts, commercial and consumer loans, credit cards, and wealth management services across Hawaii, Guam, and Saipan.

First Hawaiian Bank reported revenues of $226.4 million, up 7.8% year on year. This number topped analysts’ expectations by 3.8%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is up 10.1% since reporting and currently trades at $26.07.

Read our full, actionable report on First Hawaiian Bank here, it’s free for active Edge members.

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Customers Bancorp and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 98 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 9.3% on average since the latest earnings results.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year. This print exceeded analysts’ expectations by 6.9%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

Q3 2025 net income available to common shareholders was $73.7 million, or $2.20 per diluted share; ROAA was 1.26% and ROCE was 15.57%. Q3 2025 core earnings*1 were $73.5 million, or $2.20 per diluted share; Core ROAA* was 1.25% and Core ROCE* was 15.52%. Q3 2025 net interest margin, tax equivalent (“NIM”) was 3.46%, compared to Q2 2025 NIM of 3.27%, an increase of 19 basis points, primarily due to higher interest income from loan and leases and higher average non-interest bearing deposit balances.

Interestingly, the stock is up 15.9% since reporting and currently trades at $75.95.

SouthState

With roots dating back to the Great Depression era of 1933, SouthState is a financial holding company that provides banking services, wealth management, and correspondent banking services across six southeastern states.

SouthState reported revenues of $698.8 million, up 63.9% year on year, outperforming analysts’ expectations by 6.6%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3.5% since reporting. It currently trades at $97.18.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.8% since the results and currently trades at $68.84.

Read our full analysis of The Bancorp’s results here.

Fifth Third Bancorp

Named after the merger of Third National Bank and Fifth National Bank in 1908, Fifth Third Bancorp is a financial services company that provides banking, lending, wealth management, and investment services to individuals and businesses across the Midwest and Southeast.

Fifth Third Bancorp reported revenues of $2.31 billion, up 6.4% year on year. This result topped analysts’ expectations by 0.8%. Overall, it was a satisfactory quarter as it also put up a narrow beat of analysts’ tangible book value per share estimates.

The stock is up 18.5% since reporting and currently trades at $47.84.

Read our full, actionable report on Fifth Third Bancorp here, it’s free for active Edge members.

Western Alliance Bancorporation

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

Western Alliance Bancorporation reported revenues of $921.4 million, up 13.1% year on year. This number beat analysts’ expectations by 3.5%. It was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ tangible book value per share estimates.

The stock is up 13.3% since reporting and currently trades at $86.40.

Read our full, actionable report on Western Alliance Bancorporation here, it’s free for active Edge members.