This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Bank Stocks Turning the Credit Corner

9. Western Alliance Bancorporation

Shares of Western Alliance Bancorporation (WAL) of Phoenix closed at $5.17 Wednesday, down 30% year-to-date.

The company had $6.5 billion in total assets as of June 30, with a nonperforming assets ratio of 4.38%, declining from 4.63% the previous quarter and 5.16% in June 2010, according to SNL Financial.

Western Alliance announced on Wednesday that the company had received $141 million through the Treasury Department's Small Business Lending Fund (SBLF), exchanging the preferred shares held by the government for a previous investment made through the Troubled Assets Relief Program, or TARP, for new preferred shares.

Western Alliance president Ken Vecchione said the company's participation in the small business lending fund would "aid in promoting lending to this vital part of our economy and we look forward to using it to assist small businesses in our Arizona, California and Nevada markets."

The company reported second-quarter net income to common shareholders of $3.7 million, or five cents a share, increasing from a loss to common shareholders of $1.2 million, or two cents a share, in the second quarter of 2010. The main factor in the earnings improvement was a reduction in the provision for loan losses to $11.9 million in the second quarter, from $23.1 million a year earlier.

KBW analyst Brian Klock on Wednesday reiterated his "market perform" rating for Western Alliance with a $7.50 price target, saying "with the swap of the TARP with SBLF, we are lowering 3Q11 EPS by $0.09 to reflect the non-cash accelerated TARP discount amortization, but raising our '12 EPS estimate $0.05 to reflect lower SBLF funding cost (assuming 4% coupon)."

Klock now expects the company to earn 50 cents a share in 2012.

The shares trade for nine times the consensus 2012 EPS estimate of 59 cents, among analysts polled by FactSet, and just under their June 30 tangible book value of $5.43, according to SNL.

Out of 15 analysts covering Western Alliance, eight rate the shares a buy, while the remaining analysts all have neutral ratings.

3 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CSE $15.50 -0.51%
SNV $28.12 0.00%
TCB $15.81 0.00%
PNC $93.85 0.00%
BPOP $34.05 0.00%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs