A bank's ability to earn money affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand financial shocks. Banks that are losing money, however, are less able to do those things.
Western Alliance Bank scored 24 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
One important measure of a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Western Alliance Bank's most recent annualized quarterly return on equity was 15.54 percent, above the national average of 8.10 percent.
The bank earned net income of $334.4 million on total equity of $2.29 billion for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.78 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.