Can WAL sustain its earnings momentum into next year?

**Western Alliance Bank's (WAL) ability to sustain its earnings momentum into next year is uncertain** due to a combination of factors affecting its financial performance and broader market conditions.

1. **Recent Data Breach Impact**: The bank's recent data breach, which led to the unauthorized access of sensitive customer information, could potentially impact customer trust and loyalty. This might result in decreased demand for the bank's services or increased expenses for remediation and compliance, affecting future earnings.
2. **Earnings Projection Gap**: There are no available estimates for WAL's estimated EPS or revenue for fiscal 2025. This lack of visibility makes it difficult to assess the bank's earnings momentum and predict future performance.
3. **Deposit Growth and Financial Resilience**: Despite the data breach, WAL has reaffirmed its financial strength and deposit growth guidance. The bank's insured deposits represent over 74% of total deposits, indicating a strong depositor base. Additionally, the bank's recent capital raise through the issuance of preferred stock could provide a buffer for future earnings.
4. **Institutional Investor Sentiment**: There have been some institutional adjustments to WAL's stock, with the California Public Employees Retirement System reducing its stake, while others, like Franklin Resources Inc., have increased their holdings. Institutional sentiment is mixed, which could reflect varying views on the bank's future earnings prospects.
5. **Market Valuation and Strategic Moves**: WAL's market capitalization and recent capital raise suggest that the bank is viewed as a potentially attractive investment by some market participants. However, the overall market conditions and how they affect the banking sector will also play a crucial role in determining the bank's future earnings.

In conclusion, while WAL has shown resilience in certain areas, such as its deposit base and recent capital raise, the uncertainty surrounding the data breach's impact and the lack of earnings projections for next year make it challenging to definitively state that the bank can sustain its earnings momentum into 2025. The bank's future performance will likely depend on how quickly it can address the data breach, maintain depositor confidence, and navigate the broader economic and regulatory environment.