US Market News
3月前
Western Alliance Bancorporation Reports First Quarter 2026 Financial ResultsApril 21, 2026 4:26 PM
Business Wire
Western Alliance Bancorporation (NYSE:WAL):
Quarter Highlights:
Net income
Earnings per share
PPNR1
Net interest margin
Efficiency ratio1
Book value per
common share
$189.2 million
$1.65
$444.5 million
3.54%
55.8%
$67.03
$251.3 million, as adjusted1
$2.22, as adjusted1
$394.0 million, as adjusted1
47.5%, adjusted for deposit costs1
$61.14, excluding
goodwill and intangibles1
CEO COMMENTARY:
Western Alliance achieved solid first quarter results featuring robust deposit growth, net interest margin expansion, and core earnings momentum, while taking decisive action to resolve two fraud-related credits, partially offset by gains from a series of well-executed security sales,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Continued business strength drove quarterly loan and deposit growth of $465 million and $5.6 billion, respectively, and generated adjusted earnings per share1 of $2.22, excluding $0.57 of notable items. Net interest margin of 3.54% expanded 3 basis points as the cost of interest-bearing deposits declined 21 basis points, which sustained net interest income despite two fewer days in the quarter. Core asset quality remained stable and steady as the total classified assets ratio declined 9 basis points to 1.08% and net loan charge-offs to average loans1 were 0.39%, excluding fraud-related charge-offs. Overall, tangible book value per share1 climbed 13.0% year-over-year to $61.14 with a stable CET1 ratio of 11.0%, while we completed opportunistic quarterly share repurchases of $50.0 million."
LINKED-QUARTER BASIS
YEAR-OVER-YEAR
The Company's first quarter 2026 financial results reflect an increased provision for credit losses related to the charge-off of the remaining $126.4 million Leucadia Asset Management LLC ("LAM") loan, partially offset by $50.5 million in gains from security sales. The adjusted metrics below exclude the impact of these items, as well as a $26.1 million charge-off from the specific reserve previously established on the Cantor Group V, LLC ("Cantor") loan. For reconciliations of the non-GAAP financial measures that exclude the effects of these actions, refer to the reconciliations.
FINANCIAL HIGHLIGHTS:
Net income of $189.2 million (or $251.3 million, as adjusted1) and earnings per share of $1.65 (or $2.22, as adjusted1), down 35.5% and 36.3%, from $293.2 million and $2.59, respectively
Net income of $189.2 million (or $251.3 million, as adjusted1) and earnings per share of $1.65 (or $2.22, as adjusted1), down 5.0% and 7.8%, from $199.1 million and $1.79, respectively
Net revenue of $1.0 billion, an increase of 3.9%, or $38.0 million, compared to an increase in non-interest expenses of 4.0%, or $22.2 million
Net revenue of $1.0 billion, an increase of 31.0%, or $240.9 million, compared to an increase in non-interest expenses of 14.8%, or $74.0 million
Pre-provision net revenue1 of $444.5 million, up $15.8 million from $428.7 million
Pre-provision net revenue1 of $444.5 million, up $166.9 million from $277.6 million
Effective tax rate of 18.2%, compared to 17.6%
Effective tax rate of 18.2%, compared to 19.2%
FINANCIAL POSITION RESULTS:
HFI loans of $59.1 billion, up $465 million
Increase in HFI loans of $4.4 billion, or 8.0%
Total deposits of $82.7 billion, up $5.6 billion, or 7.2%
Increase in total deposits of $13.4 billion, or 19.3%
HFI loan-to-deposit ratio of 71.5%, down from 76.0%
HFI loan-to-deposit ratio of 71.5%, down from 79.0%
Total equity of $7.9 billion, down $38 million
Increase in total equity of $693 million, or 9.6%
LOANS AND ASSET QUALITY:
Nonperforming (nonaccrual) loans to funded HFI loans of 0.83%, decreased from 0.85%
Nonperforming (nonaccrual) loans to funded HFI loans of 0.83%, increased from 0.82%
Criticized loans of $1.4 billion, up $75 million
Criticized loans of $1.4 billion, down $254 million
Repossessed assets of $123 million, down $14 million from $137 million
Repossessed assets of $123 million, up $72 million from $51 million
Annualized net loan charge-offs to average loans outstanding of 1.45% (or 0.39%, as adjusted1), compared to 0.31%
Annualized net loan charge-offs to average loans outstanding of 1.45% (or 0.39%, as adjusted1), compared to 0.20%
1See Reconciliation of Non-GAAP Financial Measures.
FIRST QUARTER 2026 FINANCIAL RESULTS
LINKED-QUARTER BASIS
YEAR-OVER-YEAR
The Company's first quarter 2026 financial results reflect an increased provision for credit losses related to the charge-off of the remaining $126.4 million Leucadia Asset Management LLC ("LAM") loan, partially offset by $50.5 million in gains from security sales. The adjusted metrics below exclude the impact of these items, as well as a $26.1 million charge-off from the specific reserve previously established on the Cantor Group V, LLC ("Cantor") loan. For reconciliations of the non-GAAP financial measures that exclude the effects of these actions, refer to the reconciliations.
KEY PERFORMANCE METRICS:
Net interest margin of 3.54%, increased from 3.51%
Net interest margin of 3.54%, increased from 3.47%
Return on average assets and on tangible common equity1 of 0.80% (or 1.07%, as adjusted1) and 10.5% (or 14.2%, as adjusted1), compared to 1.23% and 16.9%, respectively
Return on average assets and on tangible common equity1 of 0.80% (or 1.07%, as adjusted1) and 10.5% (or 14.2%, as adjusted1), compared to 0.97% and 13.4%, respectively
Tangible common equity ratio1 of 6.8%, decreased from 7.3%
Tangible common equity ratio1 of 6.8%, decreased from 7.2%
CET 1 ratio of 11.0%, flat from the prior quarter
CET 1 ratio of 11.0%, compared to 11.1%
Tangible book value per share1, net of tax, of $61.14, relatively flat from $61.29
Tangible book value per share1, net of tax, of $61.14, an increase of 13.0% from $54.10
Efficiency ratio1 of 55.8%, compared to 55.7%
Efficiency ratio1 of 55.8%, a decrease of 7.7%, from 63.5%
Efficiency ratio, adjusted for deposit costs1 of 47.5%, compared to 46.5%
Efficiency ratio, adjusted for deposit costs1 of 47.5%, a decrease of 8.3%, from 55.8%
Share repurchases of $50.0 million, or 0.7 million shares at $71.61 per share
1 See Reconciliation of Non-GAAP Financial Measures.
Income Statement
The Company's first quarter 2026 financial results reflect the impact to provision for credit losses, arising from the charge-off of the remaining $126.4 million balance of the LAM loan. This impact was partially offset by $50.5 million in gains from security sales for the quarter. For reconciliations of the non-GAAP financial measures that exclude the effects of these actions, refer to the reconciliations.
Net interest income totaled $766.3 million in the first quarter 2026, which was relatively flat from $766.2 million in the fourth quarter 2025, but represented an increase of $115.7 million, or 17.8%, compared to the first quarter 2025. The slight increase in net interest income from the fourth quarter 2025 was primarily due to lower deposit and borrowing costs and an increase in average interest bearing assets, which were largely offset by declining yields on interest earning assets. The increase in net interest income from the first quarter 2025 was driven by an increase in average interest earning asset balances and lower rates on interest bearing liabilities, partially offset by an increase in average interest bearing liabilities balances and declining yields on interest earning assets.
The Company recorded a provision for credit losses of $213.2 million in the first quarter 2026, an increase of $140.2 million from $73.0 million in the fourth quarter 2025, and an increase of $182.0 million from $31.2 million in the first quarter 2025. The provision for credit losses during the first quarter 2026 was primarily driven by higher net charge-offs totaling $208.5 million, which included a charge-off of $126.4 million for the remaining balance of the LAM loan and a $26.1 million charge-off from the specific reserve previously established on the Cantor loan.
The Company’s net interest margin was 3.54% in the first quarter 2026, an increase from 3.51% in the fourth quarter 2025, and an increase from 3.47% in the first quarter 2025. Net interest margin increased from the fourth quarter 2025 due to lower rates on deposits and short-term borrowings, partially offset by declining yields on interest earning assets. The increase in net interest margin from the first quarter 2025 was primarily driven by a reduction in interest bearing liability costs resulting from a lower rate environment, partially offset by declining yields on interest earning assets.
Non-interest income was $252.6 million for the first quarter 2026, compared to $214.7 million for the fourth quarter 2025, and $127.4 million for the first quarter 2025. The increase in non-interest income of $37.9 million from the fourth quarter 2025 was primarily due to increases in gain on sales of investment securities of $43.1 million and service charges and fees of $14.9 million, partially offset by a lower net gain on mortgage loan origination and sale activities of $18.4 million. The increase in non-interest income of $125.2 million from the first quarter 2025 was primarily driven by increases in gain on sales of investment securities, service charges and fees, net gain on mortgage loan origination and sale activities, and income from equity investments. These increases were partially offset by a decrease in net loan servicing revenue.
Net revenue totaled $1.0 billion for the first quarter 2026, an increase of $38.0 million, or 3.9%, compared to $980.9 million for the fourth quarter 2025, and an increase of $240.9 million, or 31.0%, compared to $778.0 million for the first quarter 2025.
Non-interest expense was $574.4 million for the first quarter 2026, compared to $552.2 million for the fourth quarter 2025, and $500.4 million for the first quarter 2025. The increase in non-interest expense of $22.2 million from the fourth quarter 2025 was primarily due to an increase of $21.2 million in other non-interest expense and $7.0 million in insurance costs. The increase in other non-interest expense was primarily driven by costs associated with Juris banking, which had comparable growth in service charges and fees within non-interest income, as well as OREO-related charges. Insurance costs increased primarily due to a reduction in the FDIC special assessment recognized in the fourth quarter 2025. These increases were partially offset by a $7.9 million reduction in deposit costs. The increase in non-interest expense of $74.0 million from the first quarter 2025 was primarily attributable to increased deposit costs of $26.5 million, increased salaries and employee benefits of $23.1 million, and a $19.4 million increase in other non-interest expense largely related to Juris banking. These increases were partially offset by decreased insurance costs of $13.2 million. The Company's efficiency ratio was 55.8% for the first quarter 2026, compared to 55.7% for the fourth quarter 2025, and 63.5% for the first quarter 2025. The Company’s efficiency ratio, adjusted for deposit costs1, was 47.5% for the first quarter 2026, compared to 46.5% in the fourth quarter 2025, and 55.8% for the first quarter 2025.
Income tax expense was $42.1 million for the first quarter 2026, compared to $62.5 million for the fourth quarter 2025, and $47.3 million for the first quarter 2025. The decrease in income tax expense from the fourth quarter 2025 and the first quarter 2025 was primarily driven by lower pre-tax income.
Net income was $189.2 million (or $251.3 million, as adjusted1) for the first quarter 2026, a decrease of $104.0 million from $293.2 million for the fourth quarter 2025, and a decrease of $9.9 million from $199.1 million for the first quarter 2025. Earnings per share totaled $1.65 (or $2.22, as adjusted1) for the first quarter 2026, compared to $2.59 for the fourth quarter 2025, and $1.79 for the first quarter 2025.
The Company believes its pre-provision net revenue1 ("PPNR") is a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the first quarter 2026, the Company’s PPNR1 was $444.5 million, up $15.8 million from $428.7 million in the fourth quarter 2025, and up $166.9 million from $277.6 million in the first quarter 2025.
1 See Reconciliation of Non-GAAP Financial Measures.
Balance Sheet
HFI loans, net of deferred fees, totaled $59.1 billion at March 31, 2026, compared to $58.7 billion at December 31, 2025, and $54.8 billion at March 31, 2025. The increase in HFI loans of $465 million from the prior quarter was primarily driven by increases of $295 million and $113 million in commercial and industrial loans and residential real estate loans, respectively. The increase in HFI loans of $4.4 billion from March 31, 2025 was primarily driven by increases of $4.1 billion, $490 million, and $304 million in commercial and industrial, residential real estate, and commercial real estate non-owner occupied loans, respectively, partially offset by a decrease of $424 million in construction and land development loans. HFS loans totaled $3.9 billion at March 31, 2026, $3.5 billion at December 31, 2025, and $3.2 billion at March 31, 2025. The increase in HFS loans of $438 million from December 31, 2025 was primarily driven by increases of $345 million and $113 million in government-insured or guaranteed and agency-conforming mortgage loans, respectively. The increase in HFS loans of $698 million from March 31, 2025 was primarily driven by increases of $689 million and $110 million in government-insured or guaranteed and non-agency mortgage loans, respectively, partially offset by a $167 million decrease in agency-conforming mortgage loans.
The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.78% at both at March 31, 2026 and December 31, 2025, and 0.71% , and March 31, 2025. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.87% at both March 31, 2026 and December 31, 2025, and 0.77% at March 31, 2025. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $7.9 billion, $8.1 billion, and $8.5 billion as of March 31, 2026, December 31, 2025, and March 31, 2025, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.2 million as of March 31, 2026, $11.8 million as of December 31, 2025, and $11.9 million as of March 31, 2025. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 1.00% at March 31, 2026, 1.01% at December 31, 2025, and 0.92% at March 31, 2025.
Deposits totaled $82.7 billion at March 31, 2026, an increase of $5.6 billion from December 31, 2025, and an increase of $13.4 billion from $69.3 billion at March 31, 2025. By deposit type, the increase from the prior quarter is primarily attributable to increases of $3.7 billion, $969 million, and $828 million from non-interest bearing deposits, interest-bearing demand deposits and savings and money market accounts, respectively. From March 31, 2025, non-interest bearing deposits, interest-bearing demand deposits, and savings and money market accounts increased $6.1 billion, $3.9 billion, and $3.7 billion, respectively. Non-interest bearing deposits totaled $28.1 billion at March 31, 2026, compared to $24.4 billion at December 31, 2025, and $22.0 billion at March 31, 2025.
The table below shows the Company's deposit types as a percentage of total deposits:
Mar 31, 2026
Dec 31, 2025
Mar 31, 2025
Non-interest bearing
34.0
%
31.5
%
31.8
%
Interest-bearing demand
23.4
23.9
22.4
Savings and money market
30.7
31.9
31.3
Certificates of deposit
11.9
12.7
14.5
The Company’s ratio of HFI loans to deposits was 71.5% at March 31, 2026, compared to 76.0% at December 31, 2025, and 79.0% at March 31, 2025.
Borrowings totaled $5.6 billion at March 31, 2026, $5.2 billion at December 31, 2025, and $4.2 billion at March 31, 2025. Borrowings increased $370 million from December 31, 2025 driven by a $676 million increase in short-term borrowings, partially offset by a $307 million decrease in long-term borrowings. Borrowings increased $1.5 billion from March 31, 2025, reflecting an increase in short-term borrowings of $2.0 billion, partially offset by a $529 million decrease in long-term borrowings.
Qualifying debt totaled $1.1 billion at March 31, 2026, consistent with the balance at December 31, 2025, and up from $898 million at March 31, 2025. The increase in qualifying debt from March 31, 2025 was primarily due to the issuance of $400 million of subordinated debt during the quarter ended December 31, 2025, partially offset by the repayment of $225 million of subordinated debt during the quarter ended June 30, 2025.
Total equity was $7.9 billion at March 31, 2026, relatively flat from December 31, 2025, and up from $7.2 billion at March 31, 2025. Total equity was flat from the prior quarter, primarily due to net income of $189.2 million, partially offset by changes in accumulated other comprehensive income of $112 million and cash dividends paid during the first quarter, comprised of $46.1 million, or $0.42 per common share, $3.2 million or $0.27 per depositary share, and $7.1 million on preferred stock of the Company's REIT subsidiary. In addition, the Company repurchased 0.7 million shares for $50.0 million during the first quarter of 2026 under the Company's $300 million share repurchase program. The increase in equity from March 31, 2025 was primarily driven by net income, partially offset by dividends to stockholders and share repurchases.
The Company's common equity tier 1 capital ratio was 11.0% at March 31, 2026 and December 31, 2025, compared to 11.1% at March 31, 2025. At March 31, 2026, tangible common equity, net of tax1, was 6.8% of tangible assets1 and total capital was 14.4% of risk-weighted assets. The Company’s tangible book value per share1 was $61.14 at March 31, 2026, relatively flat from $61.29 at December 31, 2025, and an increase of 13.0% from $54.10 at March 31, 2025. The increase in tangible book value per share from March 31, 2025 was primarily attributable to net income.
Total assets increased $6.1 billion, or 6.6%, to $98.9 billion at March 31, 2026 from $92.8 billion at December 31, 2025, and increased 19.0% from $83.0 billion at March 31, 2025. The increase in total assets from December 31, 2025 was primarily driven by increased cash as well as HFI and HFS loans. The increase in total assets from March 31, 2025 was primarily driven by increased cash, investment securities, and HFI and HFS loans.
1 See Reconciliation of Non-GAAP Financial Measures.
Asset Quality
Provision for credit losses totaled $213.2 million for the first quarter 2026, compared to $73.0 million for the fourth quarter 2025, and $31.2 million for the first quarter 2025. Net loan charge-offs in the first quarter 2026 totaled $208.5 million, or 1.45% of average loans (annualized), compared to $44.6 million, or 0.31%, in the fourth quarter 2025, and $25.8 million, or 0.20%, in the first quarter 2025. Net loan charge-offs for the first quarter 2026 included charge-offs for the LAM and Cantor loans totaling $152.5 million. Excluding these two fraud-related charge-offs, net loan charge-offs1 were $56.0 million, or 0.39% of average loans (annualized)1 in the first quarter 2026.
Nonaccrual loans decreased $8 million to $492 million during the quarter and increased $41 million from March 31, 2025. Loans past due 90 days and still accruing interest totaled $56 million at March 31, 2026, $66 million at December 31, 2025, and $44 million at March 31, 2025 (excluding government guaranteed loans of $288 million, $290 million, and $275 million, respectively). Loans past due 30-89 days and still accruing interest totaled $157 million at March 31, 2026, an increase from $108 million at December 31, 2025, and a decrease from $182 million at March 31, 2025 (excluding government guaranteed loans of $94 million, $145 million, and $161 million, respectively). Criticized loans of $1.4 billion increased $75 million during the quarter and decreased $254 million from March 31, 2025.
Repossessed assets totaled $123 million at March 31, 2026, compared to $137 million at December 31, 2025, and $51 million at March 31, 2025. Classified assets of $1.1 billion at March 31, 2026 decreased $18 million from December 31, 2025, and decreased $125 million from March 31, 2025.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 13.0% at March 31, 2026, compared to 13.3% at December 31, 2025, and 15.9% at March 31, 2025.
1 See Reconciliation of Non-GAAP Financial Measures.
2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2026 financial results at 12:00 p.m. ET on Wednesday, April 22, 2026. Participants may access the call by dialing 1-888-596-4144 and using access code 9350603 or via live audio webcast using the website link https://events.q4inc.com/attendee/403697580. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET April 22nd through 1:00 p.m. ET April 29th by dialing 1-800-770-2030, using access code 9350603.
Reclassifications
Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.
Use of Non-GAAP Financial Information
This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, including our deposits, liquidity and funding, changes in economic conditions and related impacts on the Company's business, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; technological risks and developments and cyber threats, attacks or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; the outcome of legal proceedings regarding the Cantor Group V loan and the Leucadia Asset Management LLC loan, the amount of funds and/or collateral that may be available for repayment of such loans, and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loans; and other factors affecting the financial services industry generally or the banking industry in particular.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise, except to the extent required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements.
About Western Alliance Bancorporation
Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Midcap Banks list. For more information on offerings, subsidiaries and affiliates, visit www.westernalliancebank.com or follow Western Alliance Bank on LinkedIn.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of March 31,
2026
2025
Change %
(in millions)
Total assets
$
98,853
$
83,043
19.0
%
Loans held for sale
3,936
3,238
21.6
Loans HFI, net of deferred fees
59,142
54,761
8.0
Investment securities
20,392
15,868
28.5
Total deposits
82,723
69,322
19.3
Borrowings
5,610
4,151
35.1
Qualifying debt
1,072
898
19.4
Total equity
7,908
7,215
9.6
Tangible common equity, net of tax (1)
6,677
5,973
11.8
Common equity Tier 1 capital
7,050
6,311
11.7
Selected Income Statement Data:
For the Three Months Ended March 31,
2026
2025
Change %
(in millions, except per share data)
Interest income
$
1,188.2
$
1,095.6
8.5
%
Interest expense
421.9
445.0
(5.2
)
Net interest income
766.3
650.6
17.8
Provision for credit losses
213.2
31.2
NM
Net interest income after provision for credit losses
553.1
619.4
(10.7
)
Non-interest income
252.6
127.4
98.3
Non-interest expense
574.4
500.4
14.8
Income before income taxes
231.3
246.4
(6.1
)
Income tax expense
42.1
47.3
(11.0
)
Net income
189.2
199.1
(5.0
)
Net income attributable to noncontrolling interest
7.1
—
NM
Net income attributable to Western Alliance
182.1
199.1
(8.5
)
Dividends on preferred stock
3.2
3.2
—
Net income available to common stockholders
$
178.9
$
195.9
(8.7
)
Diluted earnings per common share
$
1.65
$
1.79
(7.8
)
(1)
See Reconciliation of Non-GAAP Financial Measures.
NM
Changes +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended March 31,
2026
2025
Change %
Diluted earnings per common share / as adjusted (1)
$
1.65
/
$
2.22
$
1.79
(7.8
)%
Book value per common share
67.03
60.03
11.7
Tangible book value per common share, net of tax (1)
61.14
54.10
13.0
Average common shares outstanding
(in millions):
Basic
108.2
108.8
(0.6
)
Diluted
108.7
109.6
(0.8
)
Common shares outstanding
109.2
110.4
(1.1
)
Selected Performance Ratios:
Return on average assets / as adjusted (1, 2)
0.80% /
1.07
%
0.97
%
(17.5
)%
Return on average tangible common equity / as adjusted (1, 2)
10.5 /
14.2
13.4
(21.6
)
Net interest margin (2)
3.54
3.47
2.0
Efficiency ratio (1)
55.8
63.5
(12.1
)
Efficiency ratio, adjusted for deposit costs (1)
47.5
55.8
(14.9
)
HFI loan to deposit ratio
71.5
79.0
(9.5
)
Asset Quality Ratios:
Net charge-offs to average loans outstanding / as adjusted (1, 2)
1.45% /
0.39
%
0.20
%
NM
Nonaccrual loans to funded HFI loans
0.83
0.82
1.2
Nonaccrual loans and repossessed assets to total assets
0.62
0.60
3.3
Allowance for loan losses to funded HFI loans
0.78
0.71
9.9
Allowance for credit losses to funded HFI loans
0.87
0.77
13.0
Allowance for loan losses to nonaccrual HFI loans
94
86
9.3
Allowance for credit losses to nonaccrual HFI loans
105
94
11.7
Capital Ratios:
Mar 31, 2026
Dec 31, 2025
Mar 31, 2025
Tangible common equity (1)
6.8
%
7.3
%
7.2
%
Common Equity Tier 1 (3)
11.0
11.0
11.1
Tier 1 Leverage ratio (3)
8.1
8.2
8.6
Tier 1 Capital (3)
12.0
12.1
12.3
Total Capital (3)
14.4
14.5
14.5
(1)
See Reconciliation of Non-GAAP Financial Measures.
(2)
Annualized on an actual/actual basis for periods less than 12 months.
(3)
Capital ratios for March 31, 2026 are preliminary.
NM
Changes +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended March 31,
2026
2025
(in millions, except per share data)
Interest income:
Loans
$
915.7
$
881.0
Investment securities
219.9
168.0
Other
52.6
46.6
Total interest income
1,188.2
1,095.6
Interest expense:
Deposits
360.7
378.3
Qualifying debt
13.1
9.3
Borrowings
48.1
57.4
Total interest expense
421.9
445.0
Net interest income
766.3
650.6
Provision for credit losses
213.2
31.2
Net interest income after provision for credit losses
553.1
619.4
Non-interest income:
Service charges and fees
88.5
40.5
Net gain on mortgage loan origination and sale activities
72.7
49.5
Net loan servicing (loss) revenue
(1.3
)
21.8
Income from bank owned life insurance
10.7
11.4
Gain on sales of investment securities
50.5
2.1
Fair value gain adjustments, net
3.1
1.0
Income (loss) from equity investments
13.3
(4.8
)
Other
15.1
5.9
Total non-interest income
252.6
127.4
Non-interest expenses:
Salaries and employee benefits
205.5
182.4
Deposit costs
163.3
136.8
Data processing
53.1
45.2
Legal, professional, and directors' fees
30.6
28.9
Insurance
24.7
37.9
Occupancy
19.2
17.2
Loan servicing expenses
16.7
16.4
Business development and marketing
9.5
5.9
Loan acquisition and origination expenses
7.9
5.2
Other
43.9
24.5
Total non-interest expense
574.4
500.4
Income before income taxes
231.3
246.4
Income tax expense
42.1
47.3
Net income
189.2
199.1
Net income attributable to noncontrolling interest
7.1
—
Net income attributable to Western Alliance
182.1
199.1
Dividends on preferred stock
3.2
3.2
Net income available to common stockholders
$
178.9
$
195.9
Earnings per common share:
Diluted shares
108.7
109.6
Diluted earnings per share
$
1.65
$
1.79
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(in millions, except per share data)
Interest income:
Loans
$
915.7
$
936.2
$
948.3
$
914.3
$
881.0
Investment securities
219.9
221.6
231.7
201.5
168.0
Other
52.6
59.6
45.5
38.6
46.6
Total interest income
1,188.2
1,217.4
1,225.5
1,154.4
1,095.6
Interest expense:
Deposits
360.7
383.5
398.2
377.8
378.3
Qualifying debt
13.1
9.0
6.3
8.2
9.3
Borrowings
48.1
58.7
70.6
70.8
57.4
Total interest expense
421.9
451.2
475.1
456.8
445.0
Net interest income
766.3
766.2
750.4
697.6
650.6
Provision for credit losses
213.2
73.0
80.0
39.9
31.2
Net interest income after provision for credit losses
553.1
693.2
670.4
657.7
619.4
Non-interest income:
Service charges and fees
88.5
73.6
40.5
39.7
40.5
Net gain on mortgage loan origination and sale activities
72.7
91.1
75.5
39.4
49.5
Net loan servicing (loss) revenue
(1.3
)
(1.4
)
19.1
38.3
21.8
Income from bank owned life insurance
10.7
11.8
11.8
11.0
11.4
Gain on sales of investment securities
50.5
7.4
8.5
11.4
2.1
Fair value gain adjustments, net
3.1
3.5
8.3
0.1
1.0
Income (loss) from equity investments
13.3
12.2
7.8
2.9
(4.8
)
Other
15.1
16.5
16.3
5.5
5.9
Total non-interest income
252.6
214.7
187.8
148.3
127.4
Non-interest expenses:
Salaries and employee benefits
205.5
201.7
193.5
179.9
182.4
Deposit costs
163.3
171.2
175.1
147.4
136.8
Data processing
53.1
48.9
48.1
45.0
45.2
Legal, professional, and directors' fees
30.6
33.6
28.1
25.3
28.9
Insurance
24.7
17.7
24.5
37.4
37.9
Occupancy
19.2
19.7
16.8
16.9
17.2
Loan servicing expenses
16.7
17.7
15.0
20.1
16.4
Business development and marketing
9.5
11.1
5.6
6.1
5.9
Loan acquisition and origination expenses
7.9
7.9
7.3
5.8
5.2
Other
43.9
22.7
30.4
30.8
24.5
Total non-interest expense
574.4
552.2
544.4
514.7
500.4
Income before income taxes
231.3
355.7
313.8
291.3
246.4
Income tax expense
42.1
62.5
53.3
53.5
47.3
Net income
189.2
293.2
260.5
237.8
199.1
Net income attributable to noncontrolling interest
7.1
7.1
7.1
7.4
—
Net income attributable to Western Alliance
182.1
286.1
253.4
230.4
199.1
Dividends on preferred stock
3.2
3.2
3.2
3.2
3.2
Net income available to common stockholders
$
178.9
$
282.9
$
250.2
$
227.2
$
195.9
Earnings per common share:
Diluted shares
108.7
109.3
109.8
109.6
109.6
Diluted earnings per share
$
1.65
$
2.59
$
2.28
$
2.07
$
1.79
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(in millions)
Assets:
Cash and due from banks
$
8,554
$
3,596
$
5,756
$
2,767
$
3,279
Investment securities
20,392
20,438
18,841
18,601
15,868
Loans held for sale
3,936
3,498
3,502
3,022
3,238
Loans held for investment:
Commercial and industrial
28,223
27,928
25,734
24,920
24,117
Commercial real estate - non-owner occupied
10,344
10,340
10,487
10,255
10,040
Commercial real estate - owner occupied
1,711
1,683
1,682
1,749
1,787
Construction and land development
4,080
4,055
4,065
4,526
4,504
Residential real estate
14,765
14,652
14,651
14,465
14,275
Consumer
19
19
27
24
38
Loans HFI, net of deferred fees
59,142
58,677
56,646
55,939
54,761
Allowance for loan losses
(461
)
(461
)
(440
)
(395
)
(389
)
Loans HFI, net of deferred fees and allowance
58,681
58,216
56,206
55,544
54,372
Mortgage servicing rights
1,516
1,494
1,213
1,044
1,241
Premises and equipment, net
480
442
416
365
361
Operating lease right-of-use asset
125
131
134
130
125
Other assets acquired through foreclosure, net
123
137
130
218
51
Bank owned life insurance
1,067
1,057
1,045
1,033
1,022
Goodwill and other intangibles, net
646
649
651
653
656
Other assets
3,333
3,116
3,076
3,348
2,830
Total assets
$
98,853
$
92,774
$
90,970
$
86,725
$
83,043
Liabilities and stockholders' equity:
Liabilities:
Deposits
Non-interest bearing deposits
$
28,078
$
24,353
$
26,628
$
22,997
$
22,009
Interest bearing:
Demand
19,385
18,416
16,422
15,674
15,507
Savings and money market
25,414
24,586
24,627
22,231
21,728
Certificates of deposit
9,846
9,804
9,570
10,205
10,078
Total deposits
82,723
77,159
77,247
71,107
69,322
Borrowings
5,610
5,240
3,862
6,052
4,151
Qualifying debt
1,072
1,076
681
678
898
Operating lease liability
154
160
164
160
154
Accrued interest payable and other liabilities
1,386
1,193
1,326
1,321
1,303
Total liabilities
90,945
84,828
83,280
79,318
75,828
Equity:
Preferred stock
295
295
295
295
295
Common stock and additional paid-in capital
2,036
2,095
2,140
2,136
2,125
Retained earnings
5,740
5,607
5,371
5,165
4,980
Accumulated other comprehensive loss
(456
)
(344
)
(409
)
(482
)
(478
)
Total Western Alliance stockholders' equity
7,615
7,653
7,397
7,114
6,922
Noncontrolling interest in subsidiary
293
293
293
293
293
Total equity
7,908
7,946
7,690
7,407
7,215
Total liabilities and equity
$
98,853
$
92,774
$
90,970
$
86,725
$
83,043
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(dollars in millions)
Allowance for loan losses
Balance, beginning of period
$
460.6
$
440.4
$
394.7
$
388.6
$
373.8
Provision for credit losses (1)
209.0
64.8
76.8
35.7
40.6
Recoveries of loans previously charged-off:
Commercial and industrial
0.6
1.7
0.7
0.6
1.0
Commercial real estate - non-owner occupied
—
—
—
5.1
0.6
Commercial real estate - owner occupied
—
0.4
—
—
0.1
Construction and land development
—
1.5
—
—
—
Residential real estate
—
—
—
—
—
Consumer
—
0.1
—
—
—
Total recoveries
0.6
3.7
0.7
5.7
1.7
Loans charged-off:
Commercial and industrial
181.4
28.9
12.4
17.0
13.0
Commercial real estate - non-owner occupied
27.7
10.7
12.9
17.4
14.5
Commercial real estate - owner occupied
—
—
—
0.2
—
Construction and land development
—
8.6
6.3
0.6
—
Residential real estate
—
—
—
0.1
—
Consumer
—
0.1
0.2
—
—
Total loans charged-off
209.1
48.3
31.8
35.3
27.5
Net loan charge-offs
208.5
44.6
31.1
29.6
25.8
Balance, end of period
$
461.1
$
460.6
$
440.4
$
394.7
$
388.6
Allowance for unfunded loan commitments
Balance, beginning of period
$
49.6
$
42.3
$
39.2
$
35.1
$
39.5
Provision for (recovery of) credit losses (1)
3.7
7.3
3.1
4.1
(4.4
)
Balance, end of period (2)
$
53.3
$
49.6
$
42.3
$
39.2
$
35.1
Components of the allowance for credit losses on loans
Allowance for loan losses
$
461.1
$
460.6
$
440.4
$
394.7
$
388.6
Allowance for unfunded loan commitments
53.3
49.6
42.3
39.2
35.1
Total allowance for credit losses on loans
$
514.4
$
510.2
$
482.7
$
433.9
$
423.7
Net charge-offs to average loans - annualized
1.45
%
0.31
%
0.22
%
0.22
%
0.20
%
Allowance ratios
Allowance for loan losses to funded HFI loans (3)
0.78
%
0.78
%
0.78
%
0.71
%
0.71
%
Allowance for credit losses to funded HFI loans (3)
0.87
0.87
0.85
0.78
0.77
Allowance for loan losses to nonaccrual HFI loans
94
92
84
92
86
Allowance for credit losses to nonaccrual HFI loans
105
102
92
102
94
(1)
The above tables reflect only the provision for credit losses on funded and unfunded loans. For the three months ended March 31, 2026, provision for credit losses for HTM investment securities totaled $0.5 million. The allowance for credit losses on HTM investment securities totaled $13.4 million as of March 31, 2026
(2)
The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.
(3)
Ratio includes an allowance for credit losses of $11.2 million as of March 31, 2026 related to a pool of loans covered under three separate credit linked note transactions.
Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(dollars in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans (1)
$
492
$
500
$
522
$
427
$
451
Nonaccrual loans to funded HFI loans
0.83
%
0.85
%
0.92
%
0.76
%
0.82
%
Repossessed assets
$
123
$
137
$
130
$
218
$
51
Nonaccrual loans and repossessed assets to total assets
0.62
%
0.69
%
0.72
%
0.74
%
0.60
%
Loans Past Due
Loans past due 90 days, still accruing (2)
$
56
$
66
$
49
$
51
$
44
Loans past due 90 days, still accruing to funded HFI loans (2)
0.09
%
0.11
%
0.09
%
0.09
%
0.08
%
Loans past due 30 to 89 days, still accruing (3)
$
157
$
108
$
196
$
175
$
182
Loans past due 30 to 89 days, still accruing to funded HFI loans (2)
0.27
%
0.18
%
0.35
%
0.31
%
0.33
%
Other credit quality metrics
Special mention loans
$
403
$
325
$
292
$
444
$
460
Special mention loans to funded HFI loans
0.68
%
0.55
%
0.52
%
0.79
%
0.84
%
Classified loans on accrual
$
455
$
450
$
476
$
615
$
693
Classified loans on accrual to funded HFI loans
0.77
%
0.77
%
0.84
%
1.10
%
1.27
%
Classified assets (1)
$
1,070
$
1,088
$
1,129
$
1,261
$
1,195
Classified assets to total assets
1.08
%
1.17
%
1.24
%
1.45
%
1.44
%
(1)
Includes senior liens acquired to protect the Company's position with respect to its Cantor Group V loan of $13 million as of March 31, 2026.
(2)
Excludes government guaranteed residential mortgage loans of $288 million, $290 million, $282 million, $326 million, and $275 million as of each respective date in the table above.
(3)
Excludes government guaranteed residential mortgage loans of $94 million, $145 million, $149 million, $168 million, and $161 million as of each respective date in the table above.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
March 31, 2026
December 31, 2025
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,469
$
80.2
5.95
%
$
5,195
$
75.2
5.74
%
Loans HFI:
Commercial and industrial
27,560
413.3
6.13
26,246
415.1
6.32
CRE - non-owner occupied
10,317
169.9
6.68
10,454
182.5
6.93
CRE - owner occupied
1,694
24.8
6.00
1,695
24.0
5.74
Construction and land development
3,983
76.4
7.79
4,003
82.5
8.17
Residential real estate
14,611
150.8
4.19
14,690
156.6
4.23
Consumer
19
0.3
7.48
21
0.3
5.34
Total HFI loans (1), (2), (3), (4)
58,184
835.5
5.85
57,109
861.0
6.01
Investment securities:
Taxable
17,696
195.4
4.48
17,690
197.8
4.44
Tax-exempt
2,278
24.5
5.50
2,212
23.8
5.39
Total investment securities (1)
19,974
219.9
4.59
19,902
221.6
4.54
Cash and other
5,327
52.6
4.01
5,633
59.6
4.20
Total interest earning assets
88,954
1,188.2
5.46
87,839
1,217.4
5.54
Non-interest earning assets
Cash and due from banks
543
462
Allowance for loan losses
(464
)
(459
)
Bank owned life insurance
1,060
1,049
Other assets
5,509
5,310
Total assets
$
95,602
$
94,201
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts
$
18,946
$
99.5
2.13
%
$
17,374
$
102.2
2.33
%
Savings and money market
24,611
168.7
2.78
24,113
180.9
2.98
Certificates of deposit
9,724
92.5
3.86
9,834
100.4
4.05
Total interest-bearing deposits
53,281
360.7
2.75
51,321
383.5
2.96
Short-term borrowings
2,948
29.5
4.05
3,243
33.7
4.13
Long-term debt
1,353
18.6
5.59
1,723
25.0
5.75
Qualifying debt
1,077
13.1
4.92
845
9.0
4.27
Total interest-bearing liabilities
58,659
421.9
2.92
57,132
451.2
3.13
Interest cost of funding earning assets
1.92
2.04
Non-interest-bearing liabilities
Non-interest-bearing deposits
27,352
27,524
Other liabilities
1,470
1,681
Equity
8,121
7,864
Total liabilities and equity
$
95,602
$
94,201
Net interest income and margin (5)
$
766.3
3.54
%
$
766.2
3.51
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.1 million and $9.9 million for the three months ended March 31, 2026 and December 31, 2025, respectively.
(2)
Included in the yield computation are net loan fees of $23.9 million and $25.0 million for the three months ended March 31, 2026 and December 31, 2025, respectively
(3)
Interest income includes a reduction for earnings credits totaling $48.7 million and $56.6 million for the three months ended March 31, 2026 and December 31, 2025, respectively.
(4)
Includes non-accrual loans.
(5)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
March 31, 2026
March 31, 2025
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,469
$
80.2
5.95
%
$
4,300
$
66.6
6.28
%
Loans HFI:
Commercial and industrial
27,560
413.3
6.13
22,831
365.8
6.56
CRE - non-owner occupied
10,317
169.9
6.68
10,011
175.1
7.10
CRE - owner occupied
1,694
24.8
6.00
1,880
28.7
6.30
Construction and land development
3,983
76.4
7.79
4,407
91.8
8.45
Residential real estate
14,611
150.8
4.19
14,346
152.2
4.30
Consumer
19
0.3
7.48
46
0.8
6.69
Total loans HFI (1), (2), (3), (4)
58,184
835.5
5.85
53,521
814.4
6.20
Investment securities:
Taxable
17,696
195.4
4.48
13,020
143.5
4.47
Tax-exempt
2,278
24.5
5.50
2,255
24.5
5.52
Total investment securities (1)
19,974
219.9
4.59
15,275
168.0
4.63
Cash and other
5,327
52.6
4.01
4,083
46.6
4.63
Total interest earning assets
88,954
1,188.2
5.46
77,179
1,095.6
5.81
Non-interest earning assets
Cash and due from banks
543
331
Allowance for loan losses
(464
)
(397
)
Bank owned life insurance
1,060
1,015
Other assets
5,509
4,720
Total assets
$
95,602
$
82,848
Interest bearing liabilities
Interest bearing deposits:
Interest bearing demand accounts
$
18,946
$
99.5
2.13
%
$
15,870
$
99.9
2.55
%
Savings and money market accounts
24,611
168.7
2.78
21,206
164.8
3.15
Certificates of deposit
9,724
92.5
3.86
10,018
113.6
4.60
Total interest bearing deposits
53,281
360.7
2.75
47,094
378.3
3.26
Short-term borrowings
2,948
29.5
4.05
1,722
20.8
4.89
Long-term debt
1,353
18.6
5.59
2,652
36.6
5.60
Qualifying debt
1,077
13.1
4.92
899
9.3
4.18
Total interest bearing liabilities
58,659
421.9
2.92
52,367
445.0
3.45
Interest cost of funding earning assets
1.92
2.34
Non-interest bearing liabilities
Non-interest bearing deposits
27,352
22,097
Other liabilities
1,470
1,485
Equity
8,121
6,899
Total liabilities and equity
$
95,602
$
82,848
Net interest income and margin (5)
$
766.3
3.54
%
$
650.6
3.47
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.1 million and $10.2 million for the three months ended March 31, 2026 and 2025, respectively.
(2)
Included in the yield computation are net loan fees of $23.9 million and $23.8 million for the three months ended March 31, 2026 and 2025, respectively.
(3)
Interest income includes a reduction for earnings credits totaling of $48.7 million and $58.1 million for the three months ended March 31, 2026 and 2025, respectively.
(4)
Includes non-accrual loans.
(5)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Income Statement Classification of Earnings Credit and Referral Costs
Unaudited
The below table presents the income statement classification for total earnings credit and referral costs incurred on deposits:
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Income statement line item
(in millions)
Interest income (1)
$
48.7
$
56.6
$
64.9
$
61.3
$
58.1
Service charges and fees (1)
8.3
7.2
5.4
4.4
4.2
Deposit costs (2)
157.3
165.0
169.1
142.8
129.9
Total earnings credit and referral costs
$
214.3
$
228.8
$
239.4
$
208.5
$
192.2
(1)
Earnings credits recorded as a reduction to Interest income and Service charges and fees.
(2)
Deposit costs also included $6.0 million, $6.2 million, $6.0 million, $4.6 million, and $6.9 million in other deposit related costs for each respective period in the table above, primarily associated with reciprocal deposits.
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Pre-Provision Net Revenue by Quarter:
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(in millions)
Net interest income
$
766.3
$
766.2
$
750.4
$
697.6
$
650.6
Total non-interest income
252.6
214.7
187.8
148.3
127.4
Net revenue
$
1,018.9
$
980.9
$
938.2
$
845.9
$
778.0
Total non-interest expense
574.4
552.2
544.4
514.7
500.4
Pre-provision net revenue (1)
$
444.5
$
428.7
$
393.8
$
331.2
$
277.6
Less:
Provision for credit losses
213.2
73.0
80.0
39.9
31.2
Income tax expense
42.1
62.5
53.3
53.5
47.3
Net income
$
189.2
$
293.2
$
260.5
$
237.8
$
199.1
Efficiency Ratio (Tax Equivalent Basis) by Quarter:
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(dollars in millions)
Total non-interest expense
$
574.4
$
552.2
$
544.4
$
514.7
$
500.4
Less: Deposit costs
163.3
171.2
175.1
147.4
136.8
Total non-interest 27expense, excluding deposit costs
411.1
381.0
369.3
367.3
363.6
Divided by:
Total net interest income
766.3
766.2
750.4
697.6
650.6
Plus:
Tax equivalent interest adjustment
10.1
9.9
9.7
10.2
10.2
Total non-interest income
252.6
214.7
187.8
148.3
127.4
Less: Deposit costs
163.3
171.2
175.1
147.4
136.8
$
865.7
$
819.6
$
772.8
$
708.7
$
651.4
Efficiency ratio (2)
55.8
%
55.7
%
57.4
%
60.1
%
63.5
%
Efficiency ratio, adjusted for deposit costs (2)
47.5
%
46.5
%
47.8
%
51.8
%
55.8
%
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Tangible Common Equity:
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(in millions, except per share data)
Total equity
$
7,908
$
7,946
$
7,690
$
7,407
$
7,215
Less:
Goodwill and intangible assets, net
646
649
651
653
656
Preferred stock
295
295
295
295
295
Noncontrolling interest in subsidiary
293
293
293
293
293
Total tangible common equity
6,674
6,709
6,451
6,166
5,971
Plus: deferred tax - attributed to intangible assets
3
2
2
2
2
Total tangible common equity, net of tax
$
6,677
$
6,711
$
6,453
$
6,168
$
5,973
Total assets
$
98,853
$
92,774
$
90,970
$
86,725
$
83,043
Less: goodwill and intangible assets, net
646
649
651
653
656
Tangible assets
98,207
92,125
90,319
86,072
82,387
Plus: deferred tax - attributed to intangible assets
3
2
2
2
2
Total tangible assets, net of tax
$
98,210
$
92,127
$
90,321
$
86,074
$
82,389
Tangible common equity ratio (3)
6.8
%
7.3
%
7.1
%
7.2
%
7.2
%
Common shares outstanding
109.2
109.5
110.2
110.4
110.4
Tangible book value per share, net of tax (3)
$
61.14
$
61.29
$
58.56
$
55.87
$
54.10
Return on Average Tangible Common Equity:
Three Months Ended
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
(in millions)
Net income available to common shareholders
$
178.9
$
282.9
$
250.2
$
227.2
$
195.9
Divided by:
Average stockholders' equity
8,121
7,864
7,607
7,355
6,899
Less:
Average goodwill and intangible assets
648
650
652
655
658
Average preferred stock
295
295
295
295
295
Average noncontrolling interest
293
293
293
293
16
Average tangible common equity
$
6,885
$
6,625
$
6,366
$
6,112
$
5,930
Return on average tangible common equity (1)
10.5
%
16.9
%
15.6
%
14.9
%
13.4
%
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
The adjusted revenue, earnings and return metrics presented below for the three months ended March 31, 2026 exclude the impact to provision for credit losses of charging off the remaining balance of the LAM loan as well as gains from sales of investment securities that were executed as part of the Company's mitigation strategy, as applicable. In addition, net charge-offs for the three months ended March 31, 2026 have been adjusted to exclude the impact of fraud related charge-offs associated with the LAM and Cantor loans.
Net Revenue and Pre-Provision Net Revenue, As Adjusted
(in millions)
Net revenue
$
1,018.9
Adjusted for:
Gain on sales of investment securities
(50.5
)
Net revenue, as adjusted
$
968.4
Total non-interest expense
574.4
Pre-provision net revenue, as adjusted (1)
$
394.0
Less:
Provision for credit losses
213.2
Income tax expense
42.1
Gain on sales of investment securities
(50.5
)
Net income
$
189.2
Earnings per Share, As Adjusted:
(in millions, except per share data)
Net income
$
189.2
Adjusted for:
Gain on sales of investment securities
(50.5
)
Provision for credit losses on LAM
126.4
Tax effect of adjustments
(13.8
)
Net income, as adjusted
251.3
Net income attributable to noncontrolling interest
7.1
Dividends on preferred stock
3.2
Net income available to common stockholders, as adjusted
$
241.0
Diluted shares
108.7
Diluted earnings per share, as adjusted (1)
$
2.22
Return on Average Assets, As Adjusted:
(dollars in millions)
Net income, as adjusted
$
251.3
Divided by:
Average Assets
$
95,602
Return on average assets, as adjusted (1)
1.07
%
Return on Average Tangible Common Equity, As Adjusted:
(dollars in millions)
Net income available to common stockholders, as adjusted
$
241.0
Divided by: Average equity
8,121
Less:
Average goodwill and intangible assets
648
Average preferred stock
295
Average noncontrolling interest
293
Average tangible common equity
$
6,885
Return on average tangible common equity (1)
10.5
%
Return on average tangible common equity, as adjusted (1)
14.2
%
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Net Charge-Offs and Net Charge-Offs to Average Loans, As Adjusted:
(dollars in millions)
Net charge-offs
$
208.5
Adjusted for fraud related charge-offs:
LAM
(126.4
)
Cantor
(26.1
)
Net charge-offs, as adjusted
$
56.0
Divided by: Average HFI loans
58,184
Net charge-offs to average loans - annualized, as adjusted
0.39
%
Non-GAAP Financial Measures Footnotes
(1)
We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2)
We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3)
We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260420993284/en/
Investors: Miles Pondelik, 602-346-7462
Email: MPondelik@westernalliancebank.com
Media: Stephanie Whitlow, 480-998-6547
Email: SWhitlow@westernalliancebank.com
Original: Western Alliance Bancorporation Reports First Quarter 2026 Financial Results
US Market News
5月前
Western Alliance Bancorporation Reports Fourth Quarter and Full Year 2025 Financial ResultsJanuary 27, 2026 3:04 AM
Business WireWestern Alliance Bancorporation (NYSE:WAL):
Quarter Highlights:
Net income
Earnings per share
PPNR1
Net interest margin
Efficiency ratio1
Book value per
common share
$293.2 million
$2.59
$428.7 million
3.51%
55.7%
$67.20
46.5%1, adjusted for deposit costs
$61.291, excluding
goodwill and intangibles
CEO COMMENTARY:
“Western Alliance delivered exceptional results to close out 2025, highlighted by record net interest income, revenues, and PPNR¹. Outstanding loan and deposit growth, gathering strength in commercial banking non-interest income, improved efficiency, and a steady net interest margin were key factors behind our solid operating leverage and strong financial performance. These results position us to sustain a strong earnings trajectory in 2026," said Kenneth A. Vecchione, President and Chief Executive Officer. "Impressive quarterly loan growth of $2.0 billion boosted total assets to approximately $93 billion and PPNR¹ by 35.4% annualized to $429 million. Asset quality remained steady as total criticized assets declined $8 million quarterly. Overall, we achieved earnings per share of $2.59 for the quarter, 32.8% higher than Q4 2024, which resulted in a return on assets of 1.23%, a return on tangible common equity1 of 16.9%, while tangible book value per share1 rose 17.3% year-over-year to $61.29."
"Our full year results directly reflect the success of our credit and deposit platforms, while maintaining our commitment to sound asset quality management. Net charge-offs to average loans were 0.24% for the year, with a nonperforming assets to total assets ratio of 0.69%. Our net revenue growth drove a substantial increase in earnings as PPNR1 climbed 25.9% over the prior year to $1.4 billion, with net income of $991 million and earnings per share up 23.1% to $8.73.”
LINKED-QUARTER BASIS
FULL YEAR
FINANCIAL HIGHLIGHTS:
Net income of $293.2 million and earnings per share of $2.59, up 12.6% and 13.6%, from $260.5 million and $2.28, respectively
Net income of $990.6 million and earnings per share of $8.73, up 25.8% and 23.1%, from $787.7 million and $7.09, respectively
Net revenue of $980.9 million, an increase of 4.6%, or $42.7 million, compared to an increase in non-interest expenses of 1.4%, or $7.8 million
Net revenue of $3.5 billion, an increase of 12.0%, or $380.9 million, compared to an increase in non-interest expenses of 4.3%, or $86.7 million
Pre-provision net revenue1 of $428.7 million, up $34.9 million from $393.8 million
Pre-provision net revenue1 of $1.4 billion, up $294.2 million from $1.1 billion
Effective tax rate of 17.6%, compared to 17.0%
Effective tax rate of 17.9%, compared to 20.5%
FINANCIAL POSITION RESULTS:
HFI loans of $58.7 billion, up $2.0 billion, or 3.6%
Increase in HFI loans of $5.0 billion, or 9.3%
Total deposits of $77.2 billion, down $88 million due to seasonality
Increase in total deposits of $10.8 billion, or 16.3%
HFI loan-to-deposit ratio of 76.0%, up from 73.3%
HFI loan-to-deposit ratio of 76.0%, down from 80.9%
Total equity of $7.9 billion, up $256 million, or 3.3%
HFI loan-to-deposit ratio of 76.0%, down from 80.9%
LOANS AND ASSET QUALITY:
Nonperforming (nonaccrual) loans to funded HFI loans of 0.85%, decreased from 0.92%
Nonperforming (nonaccrual) loans to funded HFI loans of 0.85% decreased from 0.89%
Criticized loans of $1.3 billion, down $15 million
Criticized loans of $1.3 billion, down $73 million
Repossessed assets of $137 million, up $7 million from $130 million
Repossessed assets of $137 million, up $85 million from $52 million
Annualized net loan charge-offs to average loans outstanding of 0.31%, compared to 0.22%
Net loan charge-offs to average loans outstanding of 0.24%, compared to 0.18%
KEY PERFORMANCE METRICS:
Net interest margin of 3.51%, decreased from 3.53%
Net interest margin of 3.51%, decreased from 3.58%
Return on average assets and on tangible common equity1 of 1.23% and 16.9%, compared to 1.13% and 15.6%, respectively
Return on average assets and on tangible common equity1 of 1.12% and 15.3%, compared to 0.99% and 14.0%, respectively
Tangible common equity ratio1 of 7.3%, increased from 7.1%
Tangible common equity ratio1 of 7.3%, increased from 7.2%
CET 1 ratio of 11.0%, compared to 11.3%
CET 1 ratio of 11.0%, compared to 11.3%
Tangible book value per share1, net of tax, of $61.29, an increase of 4.7% from $58.56
Tangible book value per share1, net of tax, of $61.29, an increase of 17.3% from $52.27
Efficiency ratio1 of 55.7% and adjusted efficiency ratio1 of 46.5%, compared to 57.4% and 47.8%, respectively
Efficiency ratio1 of 58.9% and adjusted efficiency ratio1 of 50.2%, compared to 63.2% and 53.1%, respectively
Share repurchases of $57.5 million, or 0.7 million shares at $79.55 per share
Share repurchases of $68.1 million, or 0.8 million shares at $80.82 per share
1See Reconciliation of Non-GAAP Financial Measures.
Income Statement
Net interest income totaled $766.2 million in the fourth quarter 2025, an increase of $15.8 million, or 2.1%, from $750.4 million in the third quarter 2025, and an increase of $99.7 million, or 15.0%, compared to the fourth quarter 2024. The increase in net interest income from the third quarter 2025 was largely due to higher average interest earning asset balances. The increase in net interest income from the fourth quarter 2024 was driven by an increase in average interest earning asset balances and lower rates on interest bearing liabilities, partially offset by decreased yields on interest earning assets.
The Company recorded a provision for credit losses of $73.0 million in the fourth quarter 2025, a decrease of $7.0 million from $80.0 million in the third quarter 2025, and an increase of $13.0 million from $60.0 million in the fourth quarter 2024. The provision for credit losses during the fourth quarter 2025 was primarily driven by higher net charge-offs of $44.6 million and loan growth.
The Company’s net interest margin was 3.51% in the fourth quarter 2025, a decrease from 3.53% in the third quarter 2025, and an increase from 3.48% in the fourth quarter 2024. Net interest margin decreased from the third quarter 2025 due to lower yields on interest earning assets, partially offset by lower rates on deposits and short-term borrowings. The decrease in net interest margin from the fourth quarter 2024 was primarily driven by the impact of a lower rate environment on interest earning asset yields, partially offset by lower rates on interest bearing liabilities.
Non-interest income was $214.7 million for the fourth quarter 2025, compared to $187.8 million for the third quarter 2025, and $171.9 million for the fourth quarter 2024. The increase in non-interest income of $26.9 million from the third quarter 2025 was primarily due to increases in service charges and fees of $33.1 million and net gain on mortgage loan origination and sale activities of $15.6 million. These increases were partially offset by a decrease in net loan servicing (loss) revenue of $20.5 million. The increase in non-interest income of $42.8 million from the fourth quarter 2024 was primarily driven by increases in service charges and fees, net gain on mortgage loan origination and sale activities, and other non-interest income, primarily due to an increase in rental income from OREO properties. These increases were partially offset by a decrease in net loan servicing (loss) revenue.
Net revenue totaled $980.9 million for the fourth quarter 2025, an increase of $42.7 million, or 4.6%, compared to $938.2 million for the third quarter 2025, and an increase of $142.5 million, or 17.0%, compared to $838.4 million for the fourth quarter 2024.
Non-interest expense was $552.2 million for the fourth quarter 2025, compared to $544.4 million for the third quarter 2025, and $519.0 million for the fourth quarter 2024. The increase in non-interest expense of $7.8 million from the third quarter 2025 was primarily due to increases of $8.2 million in salaries and employee benefits and $5.5 million in both legal, professional, and directors' fees and business development and marketing expenses, partially offset by decreases of $7.7 million in other non-interest expense, primarily related to OREO properties, and $6.8 million in insurance costs. The increase in non-interest expense of $33.2 million from the fourth quarter 2024 was primarily attributable to increased salaries and employee benefits of $36.3 million and data processing costs of $9.6 million, partially offset by decreased insurance costs of $19.0 million. The Company’s efficiency ratio, adjusted for deposit costs1, was 46.5% for the fourth quarter 2025, compared to 47.8% in the third quarter 2025, and 51.1% for the fourth quarter 2024.
Income tax expense was $62.5 million for the fourth quarter 2025, compared to $53.3 million for the third quarter 2025, and $42.5 million for the fourth quarter 2024. The increase in income tax expense from the third quarter 2025 and the fourth quarter 2024 was primarily driven by increased pre-tax income.
Net income was $293.2 million for the fourth quarter 2025, an increase of $32.7 million from $260.5 million for the third quarter 2025, and an increase of $76.3 million from $216.9 million for the fourth quarter 2024. Earnings per share totaled $2.59 for the fourth quarter 2025, compared to $2.28 for the third quarter 2025, and $1.95 for the fourth quarter 2024.
The Company believes its pre-provision net revenue1 ("PPNR") is a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the fourth quarter 2025, the Company’s PPNR1 was $428.7 million, up $34.9 million from $393.8 million in the third quarter 2025, and up $109.3 million from $319.4 million in the fourth quarter 2024.
The Company had 3,769 full-time equivalent employees and 57 offices at December 31, 2025, compared to 3,701 full-time equivalent employees and 57 offices at September 30, 2025, and 3,524 full-time equivalent employees and 56 offices at December 31, 2024.
1 See Reconciliation of Non-GAAP Financial Measures.
Balance Sheet
HFI loans, net of deferred fees, totaled $58.7 billion at December 31, 2025, compared to $56.6 billion at September 30, 2025, and $53.7 billion at December 31, 2024. The increase in HFI loans of $2.0 billion from the prior quarter was primarily driven by an increase of $2.2 billion in commercial and industrial loans, partially offset by a decrease in commercial real estate non-owner occupied loans of $147 million. The increase in HFI loans of $5.0 billion from December 31, 2024 was primarily driven by increases of $4.8 billion, $472 million, and $326 million in commercial and industrial, commercial real estate non-owner occupied, and residential real estate loans, respectively, partially offset by decreases of $424 million and $142 million in construction and land development and commercial real estate owner occupied loans, respectively. HFS loans totaled $3.5 billion at December 31, 2025 and September 30, 2025, and $2.3 billion at December 31, 2024. The increase in HFS loans of $1.2 billion from December 31, 2024 was primarily driven by increases of $793 million, $204 million, and $132 million in government-insured or guaranteed, agency-conforming, and non-agency mortgage loans, respectively.
The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.78%, 0.78%, and 0.70% at December 31, 2025, September 30, 2025, and December 31, 2024, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.87% at December 31, 2025, 0.85% at September 30, 2025, and 0.77% at December 31, 2024. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $8.1 billion, $8.2 billion, and $8.6 billion as of December 31, 2025, September 30, 2025, and December 31, 2024, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.8 million as of December 31, 2025 and September 30, 2025, and $11.4 million as of December 31, 2024. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 1.01% at December 31, 2025, 1.00% at September 30, 2025, and 0.92% at December 31, 2024.
Deposits totaled $77.2 billion at December 31, 2025, a decrease of $88 million from September 30, 2025, and an increase of $10.8 billion from $66.3 billion at December 31, 2024. By deposit type, the decrease from the prior quarter is primarily attributable to a decrease of $2.3 billion from non-interest bearing deposits, partially offset by increases of $2.0 billion and $234 million in interest-bearing demand deposits and certificates of deposit, respectively. The modest $88 million decrease reflects not only changes in customer deposit mix, but also the fourth-quarter seasonal runoff in mortgage related balances, which accounted for a $3.1 billion decrease. From December 31, 2024, non-interest bearing, savings and money market, and interest-bearing demand deposits increased $5.5 billion, $3.4 billion, and $2.5 billion, respectively, partially offset by a decrease in certificates of deposit of $605 million. Non-interest bearing deposits totaled $24.4 billion at December 31, 2025, compared to $26.6 billion at September 30, 2025, and $18.8 billion at December 31, 2024.
The table below shows the Company's deposit types as a percentage of total deposits:
Dec 31, 2025
Sep 30, 2025
Dec 31, 2024
Non-interest bearing
31.5 %
34.5 %
28.4 %
Interest-bearing demand
23.9
21.3
23.9
Savings and money market
31.9
31.9
32.0
Certificates of deposit
12.7
12.4
15.7
The Company’s ratio of HFI loans to deposits was 76.0% at December 31, 2025, compared to 73.3% at September 30, 2025, and 80.9% at December 31, 2024.
Borrowings totaled $5.2 billion at December 31, 2025, $3.9 billion at September 30, 2025, and $5.6 billion at December 31, 2024. Borrowings increased $1.4 billion from September 30, 2025 driven by a $2.9 billion increase in short-term borrowings, partially offset by a $1.5 billion decrease in long-term borrowings. Borrowings decreased $333 million from December 31, 2024, reflecting a $1.0 billion decrease in long-term borrowings, partially offset by an increase in short-term borrowings of $696 million.
Qualifying debt totaled $1.1 billion at December 31, 2025, compared to $681 million and $899 million at September 30, 2025 and December 31, 2024, respectively. The increase in qualifying debt from September 30, 2025 was primarily due to the issuance of $400 million of subordinated debt during the quarter ended December 31, 2025. The increase in qualifying debt from December 31, 2024 was primarily due to the issuance of $400 million of subordinated debt, partially offset by the repayment of $225 million of subordinated debt during the quarter ended June 30, 2025.
Total equity was $7.9 billion at December 31, 2025, compared to $7.7 billion at September 30, 2025, and $6.7 billion at December 31, 2024. The increase in total equity from the prior quarter was primarily due to net income of $293.2 million and net AOCI gains of $65 million, partially offset by cash dividends paid during the fourth quarter, comprised of $46.1 million or $0.42 per common share, $3.2 million or $0.27 per depositary share, and $7.1 million on preferred stock of the Company's REIT subsidiary. In addition, the Company repurchased 0.7 million shares for $57.5 million during the fourth quarter of 2025 under the Company's $300 million share repurchase program. The increase in equity from December 31, 2024 was primarily driven by net income and the issuance of preferred stock from the Company's REIT subsidiary, partially offset by dividends to stockholders and share repurchases.
The Company's common equity tier 1 capital ratio was 11.0% at December 31, 2025, compared to 11.3% at September 30, 2025 and December 31, 2024. At December 31, 2025, tangible common equity, net of tax1, was 7.3% of tangible assets1 and total capital was 14.5% of risk-weighted assets. The Company’s tangible book value per share1 was $61.29 at December 31, 2025, an increase of 4.7% from $58.56 at September 30, 2025, and an increase of 17.3% from $52.27 at December 31, 2024. The increase in tangible book value per share from September 30, 2025 and December 31, 2024 was primarily attributable to net income.
Total assets increased $1.8 billion, or 2.0%, to $92.8 billion at December 31, 2025 from $91.0 billion at September 30, 2025, and increased 14.6% from $80.9 billion at December 31, 2024. The increase in total assets from September 30, 2025 was primarily driven by increased HFI loans and investment securities, partially offset by a decrease in cash. The increase in total assets from December 31, 2024 was primarily driven by increases in HFI and HFS loans and investment securities.
Asset Quality
Provision for credit losses totaled $73.0 million for the fourth quarter 2025, compared to $80.0 million for the third quarter 2025, and $60.0 million for the fourth quarter 2024. Net loan charge-offs in the fourth quarter 2025 totaled $44.6 million, or 0.31% of average loans (annualized), compared to $31.1 million, or 0.22%, in the third quarter 2025, and $34.1 million, or 0.25%, in the fourth quarter 2024.
Nonaccrual loans decreased $22 million to $500 million during the quarter and increased $24 million from December 31, 2024. Loans past due 90 days and still accruing interest totaled $66 million at December 31, 2025, $49 million at September 30, 2025, and zero at December 31, 2024 (excluding government guaranteed loans of $290 million, $282 million, and $326 million, respectively). Loans past due 30-89 days and still accruing interest totaled $108 million at December 31, 2025, a decrease from $196 million at September 30, 2025, and an increase from $92 million at December 31, 2024 (excluding government guaranteed loans of $145 million, $149 million, and $183 million, respectively). Criticized loans of $1.3 billion decreased $15 million during the quarter and decreased $73 million from December 31, 2024.
Repossessed assets totaled $137 million at December 31, 2025, compared to $130 million at September 30, 2025, and $52 million at December 31, 2024. Classified assets of $1.1 billion at December 31, 2025 decreased $41 million from September 30, 2025, and increased $79 million from December 31, 2024.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 13.3% at December 31, 2025, compared to 14.3% at September 30, 2025, and 14.2% at December 31, 2024.
1 See Reconciliation of Non-GAAP Financial Measures.
2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter and full year 2025 financial results at 12:00 p.m. ET on Tuesday, January 27, 2026. Participants may access the call by dialing 1-833-470-1428 and using access code 336835 or via live audio webcast using the website link https://events.q4inc.com/attendee/372994694. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET January 27th through 1:00 p.m. ET February 3rd by dialing 1-866-813-9403, using access code 931710.
Reclassifications
Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.
Use of Non-GAAP Financial Information
This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, including our deposits, liquidity and funding, changes in economic conditions and related impacts on the Company's business, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; any adverse determination by a court regarding the Cantor Group V loan and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loan; and other factors affecting the financial services industry generally or the banking industry in particular.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise, except to the extent required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements.
About Western Alliance Bancorporation
Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Midcap Banks list. For more information on offerings, subsidiaries and affiliates, visit www.westernalliancebank.com or follow Western Alliance Bank on LinkedIn
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of December 31,
2025
2024
Change %
(in millions)
Total assets
$
92,774
$
80,934
14.6
%
Loans held for sale
3,498
2,286
53.0
HFI loans, net of deferred fees
58,677
53,676
9.3
Investment securities
20,438
15,095
35.4
Total deposits
77,159
66,341
16.3
Borrowings
5,240
5,573
(6.0
)
Qualifying debt
1,076
899
19.7
Total equity
7,946
6,707
18.5
Tangible common equity, net of tax (1)
6,711
5,755
16.6
Common equity Tier 1 capital
7,002
6,311
10.9
Selected Income Statement Data:
For the Three Months Ended December 31,
For the Year Ended December 31,
2025
2024
Change %
2025
2024
Change %
(in millions, except per share data)
(in millions, except per share data)
Interest income
$
1,217.4
$
1,138.6
6.9
%
$
4,692.9
$
4,541.1
3.3
%
Interest expense
451.2
472.1
(4.4
)
1,828.1
1,922.2
(4.9
)
Net interest income
766.2
666.5
15.0
2,864.8
2,618.9
9.4
Provision for credit losses
73.0
60.0
21.7
224.1
145.9
53.6
Net interest income after provision for credit losses
693.2
606.5
14.3
2,640.7
2,473.0
6.8
Non-interest income
214.7
171.9
24.9
678.2
543.2
24.9
Non-interest expense
552.2
519.0
6.4
2,111.7
2,025.0
4.3
Income before income taxes
355.7
259.4
37.1
1,207.2
991.2
21.8
Income tax expense
62.5
42.5
47.1
216.6
203.5
6.4
Net income
293.2
216.9
35.2
990.6
787.7
25.8
Net income attributable to noncontrolling interest
7.1
—
NM
21.6
—
NM
Net income attributable to Western Alliance
286.1
216.9
31.9
969.0
787.7
23.0
Dividends on preferred stock
3.2
3.2
—
12.8
12.8
—
Net income available to common stockholders
$
282.9
$
213.7
32.4
$
956.2
$
774.9
23.4
Diluted earnings per common share
$
2.59
$
1.95
32.8
$
8.73
$
7.09
23.1
(1)
See Reconciliation of Non-GAAP Financial Measures.
NM
Changes +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended December 31,
For the Year Ended December 31,
2025
2024
Change %
2025
2024
Change %
Diluted earnings per common share
$
2.59
$
1.95
32.8
%
$
8.73
$
7.09
23.1
%
Book value per common share
67.20
58.24
15.4
Tangible book value per common share, net of tax (1)
61.29
52.27
17.3
Average common shares outstanding
(in millions):
Basic
108.4
108.7
(0.3
)
108.8
108.6
0.2
Diluted
109.3
109.6
(0.3
)
109.5
109.3
0.2
Common shares outstanding
109.5
110.1
(0.5
)
Selected Performance Ratios:
Return on average assets (2)
1.23
%
1.04
%
18.3
%
1.12
%
0.99
%
13.1
%
Return on average tangible common equity (1, 2)
16.9
14.6
15.8
15.3
14.0
9.3
Net interest margin (2)
3.51
3.48
0.9
3.51
3.58
(2.0
)
Efficiency ratio (1)
55.7
61.2
(9.0
)
58.9
63.2
(6.8
)
Efficiency ratio, adjusted for deposit costs (1)
46.5
51.1
(9.0
)
50.2
53.1
(5.5
)
HFI loan to deposit ratio
76.0
80.9
(6.1
)
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)
0.31
%
0.25
%
24.0
%
0.24
%
0.18
%
33.3
%
Nonaccrual loans to funded HFI loans
0.85
0.89
(4.5
)
Nonaccrual loans and repossessed assets to total assets
0.69
0.65
6.2
Allowance for loan losses to funded HFI loans
0.78
0.70
11.4
Allowance for loan losses to nonaccrual HFI loans
92
79
16.5
Allowance for credit losses to nonaccrual HFI loans
102
87
17.2
Capital Ratios:
Dec 31, 2025
Sep 30, 2025
Dec 31, 2024
Tangible common equity (1)
7.3 %
7.1 %
7.2 %
Common Equity Tier 1 (3)
11.0
11.3
11.3
Tier 1 Leverage ratio (3)
8.2
8.1
8.1
Tier 1 Capital (3)
12.1
12.4
11.9
Total Capital (3)
14.5
14.2
14.1
(1)
See Reconciliation of Non-GAAP Financial Measures.
(2)
Annualized on an actual/actual basis for periods less than 12 months.
(3)
Capital ratios for December 31, 2025 are preliminary.
NM
Changes +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
(in millions, except per share data)
Interest income:
Loans
$
936.2
$
915.2
$
3,679.8
$
3,629.1
Investment securities
221.6
179.4
822.8
711.0
Other
59.6
44.0
190.3
201.0
Total interest income
1,217.4
1,138.6
4,692.9
4,541.1
Interest expense:
Deposits
383.5
387.2
1,537.8
1,600.2
Qualifying debt
9.0
9.4
32.8
38.0
Borrowings
58.7
75.5
257.5
284.0
Total interest expense
451.2
472.1
1,828.1
1,922.2
Net interest income
766.2
666.5
2,864.8
2,618.9
Provision for credit losses
73.0
60.0
224.1
145.9
Net interest income after provision for credit losses
693.2
606.5
2,640.7
2,473.0
Non-interest income:
Service charges and fees
73.6
39.7
194.3
109.6
Net gain on mortgage loan origination and sale activities
91.1
67.9
255.5
206.3
Net loan servicing (loss) revenue
(1.4
)
24.7
77.8
121.5
Income from bank owned life insurance
11.8
12.1
46.0
27.8
Gain on sales of investment securities
7.4
7.2
29.4
17.4
Fair value gain adjustments, net
3.5
2.4
12.9
7.5
Income (loss) from equity investments
12.2
11.1
18.1
38.2
Other
16.5
6.8
44.2
14.9
Total non-interest income
214.7
171.9
678.2
543.2
Non-interest expenses:
Salaries and employee benefits
201.7
165.4
757.5
631.1
Deposit costs
171.2
174.5
630.5
693.2
Data processing
48.9
39.3
187.2
149.7
Legal, professional, and directors' fees
33.6
28.7
115.9
109.4
Insurance
17.7
36.7
117.5
164.8
Occupancy
19.7
19.6
70.6
73.1
Loan servicing expenses
17.7
17.8
69.2
68.1
Loan acquisition and origination expenses
7.9
5.7
26.2
21.5
Business development and marketing
11.1
11.1
28.7
32.7
Other
22.7
20.2
108.4
81.4
Total non-interest expense
552.2
519.0
2,111.7
2,025.0
Income before income taxes
355.7
259.4
1,207.2
991.2
Income tax expense
62.5
42.5
216.6
203.5
Net income
293.2
216.9
990.6
787.7
Net income attributable to noncontrolling interest
7.1
—
21.6
—
Net income attributable to Western Alliance
286.1
216.9
969.0
787.7
Dividends on preferred stock
3.2
3.2
12.8
12.8
Net income available to common stockholders
$
282.9
$
213.7
$
956.2
$
774.9
Earnings per common share:
Diluted shares
109.3
109.6
109.5
109.3
Diluted earnings per share
$
2.59
$
1.95
$
8.73
$
7.09
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(in millions, except per share data)
Interest income:
Loans
$
936.2
$
948.3
$
914.3
$
881.0
$
915.2
Investment securities
221.6
231.7
201.5
168.0
179.4
Other
59.6
45.5
38.6
46.6
44.0
Total interest income
1,217.4
1,225.5
1,154.4
1,095.6
1,138.6
Interest expense:
Deposits
383.5
398.2
377.8
378.3
387.2
Qualifying debt
9.0
6.3
8.2
9.3
9.4
Borrowings
58.7
70.6
70.8
57.4
75.5
Total interest expense
451.2
475.1
456.8
445.0
472.1
Net interest income
766.2
750.4
697.6
650.6
666.5
Provision for credit losses
73.0
80.0
39.9
31.2
60.0
Net interest income after provision for credit losses
693.2
670.4
657.7
619.4
606.5
Non-interest income:
Service charges and fees
73.6
40.5
39.7
40.5
39.7
Net gain on mortgage loan origination and sale activities
91.1
75.5
39.4
49.5
67.9
Net loan servicing (loss) revenue
(1.4
)
19.1
38.3
21.8
24.7
Income from bank owned life insurance
11.8
11.8
11.0
11.4
12.1
Gain on sales of investment securities
7.4
8.5
11.4
2.1
7.2
Fair value gain adjustments, net
3.5
8.3
0.1
1.0
2.4
Income (loss) from equity investments
12.2
7.8
2.9
(4.8
)
11.1
Other
16.5
16.3
5.5
5.9
6.8
Total non-interest income
214.7
187.8
148.3
127.4
171.9
Non-interest expenses:
Salaries and employee benefits
201.7
193.5
179.9
182.4
165.4
Deposit costs
171.2
175.1
147.4
136.8
174.5
Data processing
48.9
48.1
45.0
45.2
39.3
Legal, professional, and directors' fees
33.6
28.1
25.3
28.9
28.7
Insurance
17.7
24.5
37.4
37.9
36.7
Occupancy
19.7
16.8
16.9
17.2
19.6
Loan servicing expenses
17.7
15.0
20.1
16.4
17.8
Loan acquisition and origination expenses
7.9
7.3
5.8
5.2
5.7
Business development and marketing
11.1
5.6
6.1
5.9
11.1
Other
22.7
30.4
30.8
24.5
20.2
Total non-interest expense
552.2
544.4
514.7
500.4
519.0
Income before income taxes
355.7
313.8
291.3
246.4
259.4
Income tax expense
62.5
53.3
53.5
47.3
42.5
Net income
293.2
260.5
237.8
199.1
216.9
Net income attributable to noncontrolling interest
7.1
7.1
7.4
—
—
Net income attributable to Western Alliance
286.1
253.4
230.4
199.1
216.9
Dividends on preferred stock
3.2
3.2
3.2
3.2
3.2
Net income available to common stockholders
$
282.9
$
250.2
$
227.2
$
195.9
$
213.7
Earnings per common share:
Diluted shares
109.3
109.8
109.6
109.6
109.6
Diluted earnings per share
$
2.59
$
2.28
$
2.07
$
1.79
$
1.95
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(in millions)
Assets:
Cash and due from banks
$
3,596
$
5,756
$
2,767
$
3,279
$
4,096
Investment securities
20,438
18,841
18,601
15,868
15,095
Loans held for sale
3,498
3,502
3,022
3,238
2,286
Loans held for investment:
Commercial and industrial
27,928
25,734
24,920
24,117
23,128
Commercial real estate - non-owner occupied
10,340
10,487
10,255
10,040
9,868
Commercial real estate - owner occupied
1,683
1,682
1,749
1,787
1,825
Construction and land development
4,055
4,065
4,526
4,504
4,479
Residential real estate
14,652
14,651
14,465
14,275
14,326
Consumer
19
27
24
38
50
Loans HFI, net of deferred fees
58,677
56,646
55,939
54,761
53,676
Allowance for loan losses
(461
)
(440
)
(395
)
(389
)
(374
)
Loans HFI, net of deferred fees and allowance
58,216
56,206
55,544
54,372
53,302
Mortgage servicing rights
1,494
1,213
1,044
1,241
1,127
Premises and equipment, net
442
416
365
361
361
Operating lease right-of-use asset
131
134
130
125
128
Other assets acquired through foreclosure, net
137
130
218
51
52
Bank owned life insurance
1,057
1,045
1,033
1,022
1,011
Goodwill and other intangibles, net
649
651
653
656
659
Other assets
3,116
3,076
3,348
2,830
2,817
Total assets
$
92,774
$
90,970
$
86,725
$
83,043
$
80,934
Liabilities and stockholders' equity:
Liabilities:
Deposits
Non-interest bearing deposits
$
24,353
$
26,628
$
22,997
$
22,009
$
18,846
Interest bearing:
Demand
18,416
16,422
15,674
15,507
15,878
Savings and money market
24,586
24,627
22,231
21,728
21,208
Certificates of deposit
9,804
9,570
10,205
10,078
10,409
Total deposits
77,159
77,247
71,107
69,322
66,341
Borrowings
5,240
3,862
6,052
4,151
5,573
Qualifying debt
1,076
681
678
898
899
Operating lease liability
160
164
160
154
159
Accrued interest payable and other liabilities
1,193
1,326
1,321
1,303
1,255
Total liabilities
84,828
83,280
79,318
75,828
74,227
Equity:
Preferred stock
295
295
295
295
295
Common stock and additional paid-in capital
2,095
2,140
2,136
2,125
2,120
Retained earnings
5,607
5,371
5,165
4,980
4,826
Accumulated other comprehensive loss
(344
)
(409
)
(482
)
(478
)
(534
)
Total Western Alliance stockholders' equity
7,653
7,397
7,114
6,922
6,707
Noncontrolling interest in subsidiary
293
293
293
293
—
Total equity
7,946
7,690
7,407
7,215
6,707
Total liabilities and equity
$
92,774
$
90,970
$
86,725
$
83,043
$
80,934
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(dollars in millions)
Allowance for loan losses
Balance, beginning of period
$
440.4
$
394.7
$
388.6
$
373.8
$
356.6
Provision for credit losses (1)
64.8
76.8
35.7
40.6
51.3
Recoveries of loans previously charged-off:
Commercial and industrial
1.7
0.7
0.6
1.0
0.1
Commercial real estate - non-owner occupied
—
—
5.1
0.6
—
Commercial real estate - owner occupied
0.4
—
—
0.1
0.2
Construction and land development
1.5
—
—
—
—
Residential real estate
—
—
—
—
—
Consumer
0.1
—
—
—
—
Total recoveries
3.7
0.7
5.7
1.7
0.3
Loans charged-off:
Commercial and industrial
28.9
12.4
17.0
13.0
24.8
Commercial real estate - non-owner occupied
10.7
12.9
17.4
14.5
9.6
Commercial real estate - owner occupied
—
—
0.2
—
—
Construction and land development
8.6
6.3
0.6
—
—
Residential real estate
—
—
0.1
—
—
Consumer
0.1
0.2
—
—
—
Total loans charged-off
48.3
31.8
35.3
27.5
34.4
Net loan charge-offs
44.6
31.1
29.6
25.8
34.1
Balance, end of period
$
460.6
$
440.4
$
394.7
$
388.6
$
373.8
Allowance for unfunded loan commitments
Balance, beginning of period
$
42.3
$
39.2
$
35.1
$
39.5
$
37.6
Provision for (recovery of) credit losses (1)
7.3
3.1
4.1
(4.4
)
1.9
Balance, end of period (2)
$
49.6
$
42.3
$
39.2
$
35.1
$
39.5
Components of the allowance for credit losses on loans
Allowance for loan losses
$
460.6
$
440.4
$
394.7
$
388.6
$
373.8
Allowance for unfunded loan commitments
49.6
42.3
39.2
35.1
39.5
Total allowance for credit losses on loans
$
510.2
$
482.7
$
433.9
$
423.7
$
413.3
Net charge-offs to average loans - annualized
0.31
%
0.22
%
0.22
%
0.20
%
0.25
%
Allowance ratios
Allowance for loan losses to funded HFI loans (3)
0.78
%
0.78
%
0.71
%
0.71
%
0.70
%
Allowance for credit losses to funded HFI loans (3)
0.87
0.85
0.78
0.77
0.77
Allowance for loan losses to nonaccrual HFI loans
92
84
92
86
79
Allowance for credit losses to nonaccrual HFI loans
102
92
102
94
87
(1)
The above tables reflect the provision for credit losses on funded and unfunded loans. For the three months ended December 31, 2025, provision for credit losses for HTM investment securities totaled $0.9 million. The allowance for credit losses on HTM investment securities totaled $12.9 million as of December 31, 2025.
(2)
The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.
(3)
Ratio includes an allowance for credit losses of $11.8 million as of December 31, 2025 related to a pool of loans covered under three separate credit linked note transactions.
Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(dollars in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans
$
500
$
522
$
427
$
451
$
476
Nonaccrual loans to funded HFI loans
0.85
%
0.92
%
0.76
%
0.82
%
0.89
%
Repossessed assets
$
137
$
130
$
218
$
51
$
52
Nonaccrual loans and repossessed assets to total assets
0.69
%
0.72
%
0.74
%
0.60
%
0.65
%
Loans Past Due
Loans past due 90 days, still accruing (1)
$
66
$
49
$
51
$
44
$
—
Loans past due 90 days, still accruing to funded HFI loans
0.11
%
0.09
%
0.09
%
0.08
%
—
%
Loans past due 30 to 89 days, still accruing (2)
$
108
$
196
$
175
$
182
$
92
Loans past due 30 to 89 days, still accruing to funded HFI loans
0.18
%
0.35
%
0.31
%
0.33
%
0.17
%
Other credit quality metrics
Special mention loans
$
325
$
292
$
444
$
460
$
392
Special mention loans to funded HFI loans
0.55
%
0.52
%
0.79
%
0.84
%
0.73
%
Classified loans on accrual
$
450
$
476
$
615
$
693
$
480
Classified loans on accrual to funded HFI loans
0.77
%
0.84
%
1.10
%
1.27
%
0.89
%
Classified assets
$
1,088
$
1,129
$
1,261
$
1,195
$
1,009
Classified assets to total assets
1.17
%
1.24
%
1.45
%
1.44
%
1.25
%
(1)
Excludes government guaranteed residential mortgage loans of $290 million, $282 million, $326 million, $275 million, and $326 million as of each respective date in the table above.
(2)
Excludes government guaranteed residential mortgage loans of $145 million, $149 million, $168 million, $161 million, and $183 million as of each respective date in the table above.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
December 31, 2025
September 30, 2025
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,195
$
75.2
5.74
%
$
5,009
$
77.1
6.11
%
Loans HFI:
Commercial and industrial
26,246
415.1
6.32
25,216
410.9
6.51
CRE - non-owner occupied
10,454
182.5
6.93
10,473
190.8
7.23
CRE - owner occupied
1,695
24.0
5.74
1,688
25.2
6.05
Construction and land development
4,003
82.5
8.17
4,233
88.8
8.32
Residential real estate
14,690
156.6
4.23
14,557
155.1
4.23
Consumer
21
0.3
5.34
24
0.4
7.43
Total HFI loans (1), (2), (3), (4)
57,109
861.0
6.01
56,191
871.2
6.18
Investment securities:
Taxable
17,690
197.8
4.44
17,794
208.2
4.64
Tax-exempt
2,212
23.8
5.39
2,193
23.5
5.32
Total investment securities (1)
19,902
221.6
4.54
19,987
231.7
4.72
Cash and other
5,633
59.6
4.20
4,147
45.5
4.35
Total interest earning assets
87,839
1,217.4
5.54
85,334
1,225.5
5.74
Non-interest earning assets
Cash and due from banks
462
397
Allowance for credit losses
(459
)
(414
)
Bank owned life insurance
1,049
1,038
Other assets
5,310
4,957
Total assets
$
94,201
$
91,312
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts
$
17,374
$
102.2
2.33
%
$
16,071
$
101.4
2.50
%
Savings and money market
24,113
180.9
2.98
23,373
189.4
3.21
Certificates of deposit
9,834
100.4
4.05
10,124
107.4
4.21
Total interest-bearing deposits
51,321
383.5
2.96
49,568
398.2
3.19
Short-term borrowings
3,243
33.7
4.13
2,577
30.2
4.66
Long-term debt
1,723
25.0
5.75
2,905
40.4
5.52
Qualifying debt
845
9.0
4.27
678
6.3
3.63
Total interest-bearing liabilities
57,132
451.2
3.13
55,728
475.1
3.38
Interest cost of funding earning assets
2.04
2.21
Non-interest-bearing liabilities
Non-interest-bearing deposits
27,524
26,438
Other liabilities
1,681
1,539
Equity
7,864
7,607
Total liabilities and equity
$
94,201
$
91,312
Net interest income and margin (5)
$
766.2
3.51
%
$
750.4
3.53
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.9 million and $9.7 million for the three months ended December 31, 2025 and September 30, 2025, respectively.
(2)
Included in the yield computation are net loan fees of $25.0 million and $28.1 million for the three months ended December 31, 2025 and September 30, 2025, respectively.
(3)
Interest income includes a reduction for earnings credits totaling $56.6 million and $64.9 million for the three months ended December 31, 2025 and September 30, 2025, respectively.
(4)
Includes non-accrual loans.
(5)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
December 31, 2025
December 31, 2024
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,195
$
75.2
5.74
%
$
4,542
$
67.3
5.90
%
Loans HFI:
Commercial and industrial
26,246
415.1
6.32
22,708
382.8
6.76
CRE - non-owner occupied
10,454
182.5
6.93
9,883
184.1
7.42
CRE - owner occupied
1,695
24.0
5.74
1,826
27.7
6.14
Construction and land development
4,003
82.5
8.17
4,571
100.1
8.72
Residential real estate
14,690
156.6
4.23
14,424
152.3
4.20
Consumer
21
0.3
5.34
52
0.9
6.57
Total loans HFI (1), (2), (3), (4)
57,109
861.0
6.01
53,464
847.9
6.34
Investment securities:
Taxable
17,690
197.8
4.44
13,550
155.0
4.55
Tax-exempt
2,212
23.8
5.39
2,269
24.4
5.36
Total investment securities (1)
19,902
221.6
4.54
15,819
179.4
4.67
Cash and other
5,633
59.6
4.20
3,481
44.0
5.03
Total interest earning assets
87,839
1,217.4
5.54
77,306
1,138.6
5.91
Non-interest earning assets
Cash and due from banks
462
316
Allowance for credit losses
(459
)
(364
)
Bank owned life insurance
1,049
1,003
Other assets
5,310
4,427
Total assets
$
94,201
$
82,688
Interest bearing liabilities
Interest bearing deposits:
Interest bearing demand accounts
$
17,374
$
102.2
2.33
%
$
14,555
$
101.3
2.77
%
Savings and money market accounts
24,113
180.9
2.98
19,895
167.8
3.36
Certificates of deposit
9,834
100.4
4.05
9,654
118.1
4.87
Total interest bearing deposits
51,321
383.5
2.96
44,104
387.2
3.49
Short-term borrowings
3,243
33.7
4.13
3,480
45.8
5.24
Long-term debt
1,723
25.0
5.75
1,861
29.7
6.34
Qualifying debt
845
9.0
4.27
898
9.4
4.19
Total interest bearing liabilities
57,132
451.2
3.13
50,343
472.1
3.73
Interest cost of funding earning assets
2.04
2.43
Non-interest bearing liabilities
Non-interest bearing deposits
27,524
24,200
Other liabilities
1,681
1,380
Equity
7,864
6,765
Total liabilities and equity
$
94,201
$
82,688
Net interest income and margin (5)
$
766.2
3.51
%
$
666.5
3.48
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.9 million and $10.0 million for the three months ended December 31, 2025 and 2024, respectively.
(2)
Included in the yield computation are net loan fees of $25.0 million and $22.1 million for the three months ended December 31, 2025 and 2024, respectively.
(3)
Interest income includes a reduction for earnings credits totaling of $56.6 million and $61.4 million for the three months ended December 31, 2025 and 2024, respectively.
(4)
Includes non-accrual loans.
(5)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Year Ended
December 31, 2025
December 31, 2024
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
4,844
$
292.9
6.05
%
$
3,531
$
216.4
6.13
%
Loans HFI:
Commercial and industrial
24,608
1,583.9
6.49
20,845
1,490.6
7.21
CRE - non-owner occupied
10,299
730.3
7.10
9,681
744.7
7.70
CRE - owner occupied
1,762
104.7
6.05
1,833
111.2
6.17
Construction and land development
4,232
351.7
8.31
4,747
440.1
9.28
Residential real estate
14,499
614.2
4.24
14,529
622.3
4.28
Consumer
31
2.1
6.70
54
3.8
7.00
Total loans HFI (1), (2), (3), (4)
55,431
3,386.9
6.14
51,689
3,412.7
6.63
Investment securities:
Taxable
15,919
726.9
4.57
13,159
616.0
4.68
Tax-exempt
2,218
95.9
5.42
2,230
95.0
5.34
Total investment securities (1)
18,137
822.8
4.67
15,389
711.0
4.78
Cash and other
4,344
190.3
4.38
3,656
201.0
5.50
Total interest earning assets
82,756
4,692.9
5.72
74,265
4,541.1
6.17
Non-interest earning assets
Cash and due from banks
384
293
Allowance for credit losses
(418
)
(357
)
Bank owned life insurance
1,032
589
Other assets
4,974
4,483
Total assets
$
88,728
$
79,273
Interest bearing liabilities
Interest bearing deposits:
Interest bearing demand accounts
$
16,259
$
400.7
2.46
%
$
16,155
$
480.7
2.98
%
Savings and money market accounts
22,617
705.6
3.12
17,462
610.2
3.49
Certificates of deposit
10,015
431.5
4.31
10,085
509.3
5.05
Total interest bearing deposits
48,891
1,537.8
3.15
43,702
1,600.2
3.66
Short-term borrowings
2,651
120.4
4.54
3,893
216.3
5.56
Long-term debt
2,444
137.1
5.61
830
67.7
8.16
Qualifying debt
811
32.8
4.05
896
38.0
4.25
Total interest bearing liabilities
54,797
1,828.1
3.34
49,321
1,922.2
3.90
Interest cost of funding earning assets
2.21
2.59
Non-interest bearing liabilities
Non-interest bearing deposits
24,926
22,017
Other liabilities
1,571
1,455
Equity
7,434
6,480
Total liabilities and equity
$
88,728
$
79,273
Net interest income and margin (5)
$
2,864.8
3.51
%
$
2,618.9
3.58
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $40.0 million and $39.5 million for the years ended December 31, 2025 and 2024, respectively.
(2)
Included in the yield computation are net loan fees of $102.4 million and $109.0 million for the years ended December 31, 2025 and 2024, respectively.
(3)
Interest income includes a reduction for earnings credits totaling $240.9 million and $239.8 million for the years ended December 31, 2025 and 2024, respectively.
(4)
Includes non-accrual loans.
(5)
Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Income Statement Classification of Earnings Credits
Unaudited
The tables below show the income statement classification for earnings credit amounts earned on non-interest bearing DDA:
Three Months Ended
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
Income statement line item
(in millions)
Interest income
$
56.6
$
64.9
$
61.3
$
58.1
$
61.4
Service charges and fees
7.2
5.4
4.4
4.2
6.3
Deposit costs (1)
123.6
126.3
101.7
90.9
133.3
Total ECR costs
$
187.4
$
196.6
$
167.4
$
153.2
$
201.0
Year Ended December 31,
2025
2024
Income statement line item
(in millions)
Interest income
$
240.9
$
239.8
Service charges and fees
21.2
26.1
Deposit costs (1)
442.5
489.2
Total ECR costs
$
704.6
$
755.1
(1)
Earnings credits are a subset of total Deposit costs, which also include referral, reciprocal deposit and other costs.
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Pre-Provision Net Revenue by Quarter:
Three Months Ended
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(in millions)
Net interest income
$
766.2
$
750.4
$
697.6
$
650.6
$
666.5
Total non-interest income
214.7
187.8
148.3
127.4
171.9
Net revenue
$
980.9
$
938.2
$
845.9
$
778.0
$
838.4
Total non-interest expense
552.2
544.4
514.7
500.4
519.0
Pre-provision net revenue (1)
$
428.7
$
393.8
$
331.2
$
277.6
$
319.4
Adjusted for:
Provision for credit losses
73.0
80.0
39.9
31.2
60.0
Income tax expense
62.5
53.3
53.5
47.3
42.5
Net income
$
293.2
$
260.5
$
237.8
$
199.1
$
216.9
Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Efficiency Ratio (Tax Equivalent Basis) by Quarter:
Three Months Ended
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(dollars in millions)
Total non-interest expense
$
552.2
$
544.4
$
514.7
$
500.4
$
519.0
Less: Deposit costs
171.2
175.1
147.4
136.8
174.5
Total non-interest expense, excluding deposit costs
381.0
369.3
367.3
363.6
344.5
Divided by:
Total net interest income
766.2
750.4
697.6
650.6
666.5
Plus:
Tax equivalent interest adjustment
9.9
9.7
10.2
10.2
10.0
Total non-interest income
214.7
187.8
148.3
127.4
171.9
Less: Deposit costs
171.2
175.1
147.4
136.8
174.5
$
819.6
$
772.8
$
708.7
$
651.4
$
673.9
Efficiency ratio (2)
55.7
%
57.4
%
60.1
%
63.5
%
61.2
%
Efficiency ratio, adjusted for deposit costs (2)
46.5
%
47.8
%
51.8
%
55.8
%
51.1
%
Tangible Common Equity:
Dec 31, 2025
Sep 30, 2025
Jun 30, 2025
Mar 31, 2025
Dec 31, 2024
(dollars and shares in millions, except per share data)
Total equity
$ 7,946
$ 7,690
$ 7,407
$ 7,215
$ 6,707
Less:
Goodwill and intangible assets, net
649
651
653
656
659
Preferred stock
295
295
295
295
295
Noncontrolling interest in subsidiary
293
293
293
293
—
Total tangible common equity
6,709
6,451
6,166
5,971
5,753
Plus: deferred tax - attributed to intangible assets
2
2
2
2
2
Total tangible common equity, net of tax
$ 6,711
$ 6,453
$ 6,168
$ 5,973
$ 5,755
Total assets
$ 92,774
$ 90,970
$ 86,725
$ 83,043
$ 80,934
Less: goodwill and intangible assets, net
649
651
653
656
659
Tangible assets
92,125
90,319
86,072
82,387
80,275
Plus: deferred tax - attributed to intangible assets
2
2
2
2
2
Total tangible assets, net of tax
$ 92,127
$ 90,321
$ 86,074
$ 82,389
$ 80,277
Tangible common equity ratio (3)
7.3 %
7.1 %
7.2 %
7.2 %
7.2 %
Common shares outstanding
109.5
110.2
110.4
110.4
110.1
Tangible book value per share, net of tax (3)
$ 61.29
$ 58.56
$ 55.87
$ 54.10
$ 52.27
Non-GAAP Financial Measures Footnotes
(1)
We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2)
We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3)
We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260123692950/en/
Investors: Miles Pondelik, 602-346-7462
Email: MPondelik@westernalliancebank.com
Media: Stephanie Whitlow, 480-998-6547
Email: SWhitlow@westernalliancebank.com
Original: Western Alliance Bancorporation Reports Fourth Quarter and Full Year 2025 Financial Results
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