Is SPDR S&P Regional Banking ETF a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 17 2024
0mins
Should l Buy WAL?
Source: Benzinga
Overview of SPDR S&P Regional Banking ETF (KRE): Launched in 2006, KRE is a smart beta ETF focused on regional banks, with $3.25 billion in assets and an annual expense ratio of 0.35%. It aims to match the performance of the S&P Regional Banks Select Industry Index and has shown a year-to-date increase of approximately 9.31%.
Investment Considerations: While KRE offers diversified exposure within the Financials sector, it carries higher risk with a beta of 1.07. Investors seeking lower-risk alternatives may consider traditional market cap weighted ETFs or other options like Invesco KBW Regional Banking ETF and iShares U.S. Regional Banks ETF.
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Analyst Views on WAL
Wall Street analysts forecast WAL stock price to rise
10 Analyst Rating
9 Buy
0 Hold
1 Sell
Strong Buy
Current: 94.260
Low
85.00
Averages
101.38
High
115.00
Current: 94.260
Low
85.00
Averages
101.38
High
115.00
About WAL
Western Alliance Bancorporation is a bank holding company. It provides a full spectrum of customized loan, deposit and treasury management capabilities, including funds transfer and other digital payment offerings through its wholly owned banking subsidiary, Western Alliance Bank. It operates through its banking divisions: Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank, and Torrey Pines Bank. The Company also provides an array of specialized financial services to business customers across the country, including mortgage banking services through AmeriHome, treasury management services to the homeowner's association sector, and digital payment services for the class-action legal industry. It has two non-bank subsidiaries, such as CS Insurance Company (CSI) and Western Alliance Trust Company, N.A. (WATC). CSI is a captive insurance company. WATC provides corporate trust services and levered loan administration solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Western Alliance Bank Appoints New Market Manager
- Market Expansion: Western Alliance Bank has appointed Ian Hawk as the New York market manager, aiming to enhance its presence in one of the most competitive private credit hubs, which is expected to improve the bank's operational capabilities in the region.
- Experienced Professional: Hawk brings nearly a decade of experience in public and private real estate, capital markets, and financial analysis, enabling him to provide differentiated leverage solutions to New York-based private credit platforms, thereby facilitating more informed decision-making for clients.
- Client Relationships: Hawk's extensive experience in commercial real estate financing and strong relationships with key real estate lenders, portfolio managers, and institutional investors will assist Western Alliance Bank in expanding the availability of note finance and single note-on-note products in New York.
- Industry Leadership: The bank's distinctive entrepreneurial approach and flexible financing solutions in the note finance industry allow it to respond quickly to market demands, further solidifying its position as a top-performing bank.
See More
Western Alliance Bank Appoints New Market Manager
- Market Expansion: Western Alliance Bank has appointed Ian Hawk as the New York market manager to enhance its presence in one of the most competitive private credit hubs, addressing the growing demand for note finance solutions.
- Professional Background: Hawk brings nearly a decade of experience in commercial real estate and private credit, having worked at Lument and Dwight Securities Management, and is equipped to provide clients with deep data-driven insights to facilitate informed decision-making.
- Client Relationships: His addition is expected to strengthen Western Alliance Bank's relationships with key real estate lenders, portfolio managers, and institutional investors, enhancing the availability of note finance and single-note products to meet the market's demand for flexible financing.
- Industry Leadership: Positioned at the heart of the note finance industry, Western Alliance Bank leverages its distinctive entrepreneurial approach and customer-first service philosophy to deliver rapid financing solutions to funds nationwide.
See More
J.P. Morgan Downgrades Western Alliance to Neutral
- Rating Downgrade: J.P. Morgan downgraded Western Alliance Bancorporation from Overweight to Neutral due to concerns over upside risks to 2026 ECR deposit costs, with analysts favoring the high end of the projected $535M-$585M range.
- Earnings Forecast Reduction: The bank lowered its core EPS estimates for 2026 and 2027 from $10.02 and $11.66 to $9.75 and $11.35, respectively, primarily driven by rising ECR costs and provision expenses, although partially offset by higher core NII.
- Price Target Increase: Despite the downgrade, J.P. Morgan raised its price target for the stock from $100 to $105, indicating a cautiously optimistic outlook on the company's future performance, aligning with the market's Hold rating.
- Market Sentiment: While J.P. Morgan's rating is Neutral, Wall Street analysts and Seeking Alpha authors generally rate WAL as Buy, reflecting confidence in its growth potential, particularly against the backdrop of its ambitious $6B loan and $8B deposit growth targets for 2026.
See More
Latest Rating Changes on Wall Street
- Mizuho Upgrades Applied Materials: Mizuho upgrades Applied Materials (AMAT) to Outperform from Neutral, raising the price target to $370, reflecting confidence in the semiconductor company's accelerating growth, which is expected to boost its stock price.
- Jefferies Downgrades BJ's Wholesale: Jefferies downgrades BJ's Wholesale from Buy to Hold, citing slower growth and increased risks in competitive markets, which may lead to underperformance and affect investor sentiment.
- Morgan Stanley Upgrades Johnson & Johnson: Morgan Stanley upgrades Johnson & Johnson (JNJ) to Overweight with a price target increase to $252, based on expectations of new product contributions and a higher P/E ratio, likely driving future earnings growth.
- Barclays Initiates TPG as Overweight: Barclays initiates TPG with an Overweight rating, highlighting its strong positioning for medium-term growth in a recovering capital markets environment, which is expected to attract more investor interest.
See More
Western Alliance Bancorporation Q4 2025 Earnings Highlights
- Significant Earnings Growth: Western Alliance reported Q4 2025 EPS of $2.59, a 33% year-over-year increase, reflecting strong momentum in loan and deposit growth, with projections of $6 billion in loan growth and $8 billion in deposit growth for 2026.
- Record Net Interest Income: The company achieved $2.9 billion in net interest income for 2025, with Q4 net interest income at $766 million, up $16 million from Q3, indicating sustained profitability in the current interest rate environment.
- Effective Cost Control: Noninterest expense growth was limited to 4%, while noninterest income surged by 25%, demonstrating the company's ability to manage costs while driving growth in commercial banking and disbursement fees, enhancing overall profitability.
- Stable Asset Quality: Although net charge-offs are expected to remain between 25 and 35 basis points in the first half of 2026, management is optimistic about improvements in nonaccrual loans, anticipating significant reductions by the end of Q2, ensuring stability in asset quality.
See More
Western Alliance Reports Strong Q4 Earnings with Revenue Growth
- Earnings Per Share Growth: Western Alliance reported a GAAP EPS of $2.59 for Q4, reflecting a 17.0% year-over-year increase, which significantly boosts investor confidence in the company's profitability.
- Strong Revenue Performance: The company achieved revenues of $980.9 million in Q4, marking a 17.0% increase compared to the previous year, indicating robust business expansion and strong market demand that further solidifies its market position.
- Loan and Deposit Dynamics: HFI loans totaled $58.7 billion, up $2.0 billion, with a loan-to-deposit ratio rising to 76.0%, demonstrating increased activity in the credit market, while total deposits slightly decreased by $88 million due to seasonal factors.
- Increase in Shareholder Equity: Total equity reached $7.9 billion, up $256 million or 3.3%, indicating a healthy financial condition that provides a solid foundation for future investments and expansion.
See More
Western Alliance Bank Appoints New Market Manager
- Market Expansion: Western Alliance Bank has appointed Ian Hawk as the New York market manager, aiming to enhance its presence in one of the most competitive private credit hubs, which is expected to improve the bank's operational capabilities in the region.
- Experienced Professional: Hawk brings nearly a decade of experience in public and private real estate, capital markets, and financial analysis, enabling him to provide differentiated leverage solutions to New York-based private credit platforms, thereby facilitating more informed decision-making for clients.
- Client Relationships: Hawk's extensive experience in commercial real estate financing and strong relationships with key real estate lenders, portfolio managers, and institutional investors will assist Western Alliance Bank in expanding the availability of note finance and single note-on-note products in New York.
- Industry Leadership: The bank's distinctive entrepreneurial approach and flexible financing solutions in the note finance industry allow it to respond quickly to market demands, further solidifying its position as a top-performing bank.
See More
Western Alliance Bank Appoints New Market Manager
- Market Expansion: Western Alliance Bank has appointed Ian Hawk as the New York market manager to enhance its presence in one of the most competitive private credit hubs, addressing the growing demand for note finance solutions.
- Professional Background: Hawk brings nearly a decade of experience in commercial real estate and private credit, having worked at Lument and Dwight Securities Management, and is equipped to provide clients with deep data-driven insights to facilitate informed decision-making.
- Client Relationships: His addition is expected to strengthen Western Alliance Bank's relationships with key real estate lenders, portfolio managers, and institutional investors, enhancing the availability of note finance and single-note products to meet the market's demand for flexible financing.
- Industry Leadership: Positioned at the heart of the note finance industry, Western Alliance Bank leverages its distinctive entrepreneurial approach and customer-first service philosophy to deliver rapid financing solutions to funds nationwide.
See More
J.P. Morgan Downgrades Western Alliance to Neutral
- Rating Downgrade: J.P. Morgan downgraded Western Alliance Bancorporation from Overweight to Neutral due to concerns over upside risks to 2026 ECR deposit costs, with analysts favoring the high end of the projected $535M-$585M range.
- Earnings Forecast Reduction: The bank lowered its core EPS estimates for 2026 and 2027 from $10.02 and $11.66 to $9.75 and $11.35, respectively, primarily driven by rising ECR costs and provision expenses, although partially offset by higher core NII.
- Price Target Increase: Despite the downgrade, J.P. Morgan raised its price target for the stock from $100 to $105, indicating a cautiously optimistic outlook on the company's future performance, aligning with the market's Hold rating.
- Market Sentiment: While J.P. Morgan's rating is Neutral, Wall Street analysts and Seeking Alpha authors generally rate WAL as Buy, reflecting confidence in its growth potential, particularly against the backdrop of its ambitious $6B loan and $8B deposit growth targets for 2026.
See More
Latest Rating Changes on Wall Street
- Mizuho Upgrades Applied Materials: Mizuho upgrades Applied Materials (AMAT) to Outperform from Neutral, raising the price target to $370, reflecting confidence in the semiconductor company's accelerating growth, which is expected to boost its stock price.
- Jefferies Downgrades BJ's Wholesale: Jefferies downgrades BJ's Wholesale from Buy to Hold, citing slower growth and increased risks in competitive markets, which may lead to underperformance and affect investor sentiment.
- Morgan Stanley Upgrades Johnson & Johnson: Morgan Stanley upgrades Johnson & Johnson (JNJ) to Overweight with a price target increase to $252, based on expectations of new product contributions and a higher P/E ratio, likely driving future earnings growth.
- Barclays Initiates TPG as Overweight: Barclays initiates TPG with an Overweight rating, highlighting its strong positioning for medium-term growth in a recovering capital markets environment, which is expected to attract more investor interest.
See More
Western Alliance Bancorporation Q4 2025 Earnings Highlights
- Significant Earnings Growth: Western Alliance reported Q4 2025 EPS of $2.59, a 33% year-over-year increase, reflecting strong momentum in loan and deposit growth, with projections of $6 billion in loan growth and $8 billion in deposit growth for 2026.
- Record Net Interest Income: The company achieved $2.9 billion in net interest income for 2025, with Q4 net interest income at $766 million, up $16 million from Q3, indicating sustained profitability in the current interest rate environment.
- Effective Cost Control: Noninterest expense growth was limited to 4%, while noninterest income surged by 25%, demonstrating the company's ability to manage costs while driving growth in commercial banking and disbursement fees, enhancing overall profitability.
- Stable Asset Quality: Although net charge-offs are expected to remain between 25 and 35 basis points in the first half of 2026, management is optimistic about improvements in nonaccrual loans, anticipating significant reductions by the end of Q2, ensuring stability in asset quality.
See More
Western Alliance Reports Strong Q4 Earnings with Revenue Growth
- Earnings Per Share Growth: Western Alliance reported a GAAP EPS of $2.59 for Q4, reflecting a 17.0% year-over-year increase, which significantly boosts investor confidence in the company's profitability.
- Strong Revenue Performance: The company achieved revenues of $980.9 million in Q4, marking a 17.0% increase compared to the previous year, indicating robust business expansion and strong market demand that further solidifies its market position.
- Loan and Deposit Dynamics: HFI loans totaled $58.7 billion, up $2.0 billion, with a loan-to-deposit ratio rising to 76.0%, demonstrating increased activity in the credit market, while total deposits slightly decreased by $88 million due to seasonal factors.
- Increase in Shareholder Equity: Total equity reached $7.9 billion, up $256 million or 3.3%, indicating a healthy financial condition that provides a solid foundation for future investments and expansion.
See More
