Western Alliance Bancorporation Reports First Quarter 2026 Financial Results

Key Terms

pre-provision net revenue financial

Pre-provision net revenue is a bank’s income from core operations — interest earned minus interest paid plus fees and other operating income, after operating costs — measured before setting aside funds for potential loan losses. Investors use it to gauge how well a bank’s everyday business generates money independent of one-time loss reserves, like judging a store’s sales and operating profit before accounting for an expected number of returned items.

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tangible book value per share financial

Tangible book value per share is the company's total physical and financial assets minus its liabilities and intangible items (like goodwill and brand value), divided by the number of outstanding shares. It gives investors a conservative, per‑share estimate of what would remain if the business sold only its hard assets and paid its debts—useful for judging whether a stock is priced above or below its underlying, tangible worth, like valuing a property by its bricks and cash rather than its reputation.

efficiency ratio financial

A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.

nonperforming (nonaccrual) loans financial

Loans classified as nonperforming (nonaccrual) are loans on which the borrower has stopped making scheduled payments or is otherwise unlikely to pay, so the lender stops recording expected interest as income. Think of them as loans that have gone bad in a bank’s portfolio — like rotten apples that can spoil the rest; they reduce a lender’s earnings, raise the risk of future losses, and can signal weakening credit quality to investors.

credit linked note financial

A credit linked note is a hybrid investment that pays interest like a bond but links repayment to the credit health of a specified borrower or group of borrowers. Think of it as lending money while agreeing, in exchange for a higher yield, to absorb losses if the referenced borrower defaults or suffers another defined credit event; investors get bigger returns but take on the risk that principal may be reduced or restructured. It matters because it shifts specific default risk to the investor and can affect portfolio stability and expected return.

CET 1 ratio financial

The CET1 ratio measures a bank’s core capital — the most reliable form of equity like common stock and retained earnings — against its assets adjusted for risk (loans and investments scaled by how risky they are). Think of it as the bank’s financial cushion: a higher CET1 ratio means the bank can better absorb losses, meet regulatory requirements, and gives investors more confidence about safety, dividend capacity and borrowing costs.

allowance for credit losses financial

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

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PHOENIX--(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

Source: Western Alliance Bancorporation