Original source text
PHOENIX--(BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL):
THIRD QUARTER 2026 FINANCIAL RESULTS
Quarter Highlights:
Net income
Diluted earnings per share
PPNR1
Net interest margin
Efficiency ratio1
Book value per
common share
$277.2 million
$2.45
$419.1 million
3.57%
58.1%
$68.14
50.0%, adjusted for deposit costs1
$62.22, excluding
goodwill and intangibles1
LINKED-QUARTER BASIS
YEAR-OVER-YEAR
FINANCIAL HIGHLIGHTS:
Net income of $277.2 million and earnings per share of $2.45, up 3.1% and 3.8%, from $268.8 million and $2.36, respectively Net revenue of $1.0 billion, increased 1.9%, or $18.5 million, from $995.7 million
Pre-provision net revenue1 of $419.1 million, up $6.7 million, or 1.6%, from $412.4 million
Effective tax rate of 18.3%, compared to 19.0%
Repurchased $92.1 million, or 1.15 million shares at an average price of $79.78 per share
Net income of $277.2 million and earnings per share of $2.45, up 6.4% and 7.5%, from $260.5 million and $2.28, respectively Net revenue of $1.0 billion, increased 8.1%, or $76.0 million, from $938.2 million
Pre-provision net revenue1 of $419.1 million, up $25.3 million, or 6.4%, from $393.8 million
Effective tax rate of 18.3%, compared to 17.0%
FINANCIAL POSITION RESULTS:
HFI loans of $61.5 billion, up $600 million, or 1.0% Total deposits of $81.8 billion, down $119 million, or 0.1%
HFI loan-to-deposit ratio of 75.3%, up from 74.4%
Total equity of $7.9 billion, down $188 million, or 2.3%
Increase in HFI loans of $4.9 billion, or 8.7% Increase in total deposits of $4.5 billion, or 5.8%
HFI loan-to-deposit ratio of 75.3%, up from 73.3%
Increase in total equity of $257 million, or 3.3%
LOANS AND ASSET QUALITY:
Nonaccrual loans to funded HFI loans of 0.79%, decreased from 0.92% Nonaccrual loans and repossessed assets to total assets of 0.66%, decreased from 0.70%
Allowance for credit losses to funded HFI loans of 0.93%, increased 4 basis points from 0.89%
Allowance for credit losses to nonaccrual loans of 118%, increased 22% from 96%
Annualized net loan charge-offs to average loans outstanding of 0.30%, compared to 0.37%
Nonaccrual loans to funded HFI loans of 0.79%, decreased from 0.92% Nonaccrual loans and repossessed assets to total assets of 0.66%, decreased from 0.72%
Allowance for credit losses to funded HFI loans of 0.93%, increased 8 basis points from 0.85%
Allowance for credit losses to nonaccrual loans of 118%, increased 26% from 92%
Annualized net loan charge-offs to average loans outstanding of 0.30%, compared to 0.22%
KEY PERFORMANCE METRICS:
Net interest margin of 3.57%, increased from 3.53% Return on average assets and on tangible common equity1 of 1.12% and 15.5%, compared to 1.09% and 15.3%, respectively
Tangible common equity ratio1 of 6.9%, decreased from 7.0%
CET1 ratio of 10.9%, compared to 11.0%
Tangible book value per share1, net of tax, of $62.22, decreased 1.6% from $63.24
Efficiency ratio1 of 58.1%, increased 0.1%, from 58.0%, while the efficiency ratio, adjusted for deposit costs1 increased 1.1% to 50.0% from 48.9%
Net interest margin of 3.57%, increased from 3.53% Return on average assets and on tangible common equity1 of 1.12% and 15.5%, compared to 1.13% and 15.6%, respectively
Tangible common equity ratio1 of 6.9%, decreased from 7.1%
CET1 ratio of 10.9%, compared to 11.3%
Tangible book value per share1, net of tax, of $62.22, increased 6.3% from $58.56
Efficiency ratio1 of 58.1%, increased 0.7%, from 57.4%, while the efficiency ratio, adjusted for deposit costs1 increased 2.2% to 50.0% from 47.8%
Income Statement
Net interest income totaled $807.6 million in the third quarter 2026, an increase of $10.7 million, or 1.3%, from $796.9 million in the second quarter 2026, and an increase of $57.2 million, or 7.6%, compared to $750.4 million in the third quarter 2025. The increase from the second quarter 2026 was primarily due to higher yields on interest earning assets and higher average HFI loan balances, partially offset by lower average balances in cash and other interest earning assets and an increase in average interest bearing liabilities and the related costs of these liabilities. The increase in net interest income from the third quarter 2025 was primarily driven by an increase in average interest earning asset balances of $5.5 billion and lower rates on interest bearing liabilities, partially offset by declining yields on interest earning assets.
The Company recorded a provision for credit losses of $80.0 million in the third quarter 2026, compared with $80.4 million in the second quarter 2026, and $80.0 million in the third quarter 2025. The provision for credit losses during the third quarter 2026 was primarily driven by net charge-offs totaling $45.8 million, loan growth, and proactive provisioning for macroeconomic risks associated with the higher interest rate environment. These factors increased the total allowance for credit losses to funded HFI loans ratio from 89 basis points in the prior quarter to 93 basis points.
The Company’s net interest margin increased to 3.57% in the third quarter 2026 from 3.53% in both the second quarter 2026 and the third quarter 2025. Net interest margin increased from the second quarter 2026 due to higher yields on interest earning assets, partially offset by higher costs on interest bearing liabilities. Net interest margin increased from the third quarter 2025 as an increase of $5.5 billion in average interest earning assets and lower interest bearing liability costs more than offset declining yields on interest earning assets.
Non-interest income was $206.6 million for the third quarter 2026, compared to $198.8 million for the second quarter 2026, and $187.8 million for the third quarter 2025. The increase in non-interest income of $7.8 million from the second quarter 2026 was primarily due to increases in gain on sales of investment securities of $13.8 million, partially offset by a decrease in mortgage banking revenue of $5.2 million. The increase in non-interest income of $18.8 million from the third quarter 2025 was primarily driven by increases in service charges and fees and gain on sales of investment securities, partially offset by a decrease in mortgage banking revenue.
Net revenue totaled $1.0 billion for the third quarter 2026, up $18.5 million, or 1.9%, from $995.7 million in the second quarter 2026, and $76.0 million, or 8.1%, from $938.2 million in the third quarter 2025.
Non-interest expense was $595.1 million for the third quarter 2026, compared to $583.3 million for the second quarter 2026, and $544.4 million for the third quarter 2025. The increase in non-interest expense of $11.8 million from the second quarter 2026 was primarily due to an increase in salaries and employee benefits of $21.8 million, partially offset by a decrease of $13.8 million in deposit costs driven by decreased average ECR-related deposit balances. The increase in non-interest expense of $50.7 million from the third quarter 2025 was primarily attributable to increased salaries and employee benefits of $32.6 million and increased data processing costs of $7.7 million. These increases were partially offset by decreased deposit costs of $9.7 million driven by decreased average ECR-related deposit balances.
The Company's efficiency ratio was 58.1% for the third quarter 2026, compared to 58.0% for the second quarter 2026, and 57.4% for the third quarter 2025. The Company’s efficiency ratio, adjusted for deposit costs1, was 50.0% for the third quarter 2026, compared to 48.9% for the second quarter 2026, and 47.8% for the third quarter 2025.
Income tax expense was $61.9 million for the third quarter 2026, compared to $63.2 million for the second quarter 2026, and $53.3 million for the third quarter 2025. The decrease in income tax expense from the second quarter 2026 was primarily driven by increases in investment tax credits. The increase in income tax expense from the third quarter 2025 was primarily driven by an increase in pretax income.
Net income was $277.2 million for the third quarter 2026, an increase of $8.4 million from $268.8 million for the second quarter 2026, and an increase of $16.7 million from $260.5 million for the third quarter 2025. Earnings per share totaled $2.45 for the third quarter 2026, compared to $2.36 for the second quarter 2026, and $2.28 for the third quarter 2025.
The Company believes its pre-provision net revenue1 ("PPNR"), which it defines as net revenue less non-interest expense, is a key metric for assessing the Company’s earnings power. For the third quarter 2026, the Company’s PPNR1 was $419.1 million, up $6.7 million from $412.4 million in the second quarter 2026, and up $25.3 million from $393.8 million in the third quarter 2025.
Balance Sheet
HFI loans, net of deferred fees, totaled $61.5 billion at September 30, 2026, compared to $60.9 billion at June 30, 2026, and $56.6 billion at September 30, 2025. The $600 million increase from the prior quarter end primarily reflected increases of $396 million in commercial real estate non-owner occupied loans and $336 million in commercial and industrial loans, partially offset by a $111 million decrease in residential real estate loans. The $4.9 billion increase from September 30, 2025 was primarily attributable to increases of $4.4 billion in commercial and industrial loans, $286 million in residential real estate loans, $210 million in commercial real estate non-owner occupied loans, and $173 million in construction and land development loans, partially offset by a $121 million decrease in commercial real estate owner occupied loans. HFS loans totaled $4.0 billion at September 30, 2026, compared to $4.3 billion at June 30, 2026, and $3.5 billion at September 30, 2025. The $396 million decrease from the prior quarter end primarily reflected lower loan funding volume during the quarter and unfavorable fair value changes resulting from higher interest rates. The $449 million increase from September 30, 2025 was primarily attributable to higher period-end inventory levels resulting from the timing of loan production and sales activity, as well as increased early buyout activity.
The Company's allowance for credit losses on HFI loans comprises allowances for funded HFI loans and unfunded loan commitments. The allowance for loan losses as a percentage of funded HFI loans was 0.83% at September 30, 2026, 0.80% at June 30, 2026, and 0.78% at September 30, 2025. Including the allowance for unfunded loan commitments, the allowance for credit losses as a percentage of funded HFI loans was 0.93% at September 30, 2026, 0.89% at June 30, 2026, and 0.85% at September 30, 2025. Through credit linked note transactions, the Company effectively transfers a portion of the risk of losses on reference pools of loans to the purchasers of the notes. These transactions provide first-loss protection on reference pools of loans that totaled $7.6 billion, $7.8 billion, and $8.2 billion as of September 30, 2026, June 30, 2026, and September 30, 2025, respectively. However, as these note transactions are considered freestanding credit enhancements, the allowance for credit losses cannot be reduced for expected credit losses that these notes may mitigate. Accordingly, the allowance ratios include $11.6 million, $10.2 million, and $11.8 million related to these pools of loans as of September 30, 2026, June 30, 2026, and September 30, 2025, respectively. 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 1.07% at September 30, 2026, 1.01% at June 30, 2026, and 1.00% at September 30, 2025.
Deposits totaled $81.8 billion at September 30, 2026, a decrease of $119 million from June 30, 2026, and an increase of $4.5 billion from $77.2 billion at September 30, 2025. The decline in deposits from the prior quarter primarily reflected a $2.1 billion decrease in non-interest bearing deposits, partially offset by increases of $871 million in interest bearing demand deposits, $754 million in certificates of deposit, and $324 million in savings and money market accounts. Deposit optimization efforts drove the decline in non-interest bearing deposits, partially offset by strong commercial banking growth in interest bearing deposits. From September 30, 2025, interest bearing demand deposits, certificates of deposit, and savings and money market accounts increased $3.7 billion, $1.1 billion, and $583 million, respectively, while non-interest bearing deposits decreased $876 million. Non-interest bearing deposits totaled $25.8 billion at September 30, 2026, compared to $27.8 billion at June 30, 2026, and $26.6 billion at September 30, 2025.
The Company’s ratio of HFI loans to deposits was 75.3% at September 30, 2026, compared to 74.4% at June 30, 2026, and 73.3% at September 30, 2025.
Borrowings totaled $5.6 billion at September 30, 2026, compared with $6.2 billion at June 30, 2026, and $3.9 billion at September 30, 2025. Borrowings decreased $623 million from June 30, 2026, reflecting declines of $515 million in short-term borrowings and $108 million in long-term borrowings. Borrowings increased $1.8 billion from September 30, 2025, as a $3.3 billion increase in short-term borrowings was partially offset by a $1.5 billion decrease in long-term borrowings.
Qualifying debt totaled $1.1 billion at both September 30, 2026 and June 30, 2026, compared with $681 million at September 30, 2025. The increase from September 30, 2025 primarily reflects the issuance of $400 million of subordinated debt during the quarter ended December 31, 2025.
Total equity was $7.9 billion at September 30, 2026, compared to $8.1 billion at June 30, 2026, and $7.7 billion at September 30, 2025. The decrease from the prior quarter was primarily due to changes in AOCI related to higher interest rates, unrealized fair value losses of $338.0 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax, the repurchase of 1.15 million shares for $92.1 million, and dividends, partially offset by net income of $277.2 million. Third quarter cash dividends paid included $45.7 million, or $0.42 per share, for common stockholders; $3.2 million, or $0.27 per depositary share, for preferred stockholders; and $7.1 million on preferred stock of the Company's REIT subsidiary. The increase in equity from September 30, 2025 was primarily driven by net income, partially offset by dividends to stockholders and share repurchases. Since inception of the share repurchase program through September 30, 2026, the Company has repurchased 2.7 million shares for $212.5 million under its $300 million authorization.
The Company's common equity tier 1 capital ratio was 10.9% at September 30, 2026, compared with 11.0% at June 30, 2026, and 11.3% at September 30, 2025. At September 30, 2026, tangible common equity, net of tax1, was 6.9% of tangible assets1, while total capital was 14.0% of risk-weighted assets. The Company’s tangible book value per share1 was $62.22 at September 30, 2026, down 1.6% from $63.24 at June 30, 2026, and up 6.3% from $58.56 at September 30, 2025. The increase in tangible book value per share from September 30, 2025 was primarily attributable to net income.
Total assets were $98.1 billion at September 30, 2026, down $629 million, or 0.6%, from $98.7 billion at June 30, 2026, and up 7.8% from $91.0 billion at September 30, 2025. The decrease in total assets from the prior quarter end reflected lower cash, HFS loans, and investment securities, partially offset by higher HFI loans. The increase in total assets from September 30, 2025 was primarily driven by growth in HFI and HFS loans and investment securities.
Asset Quality
Provision for credit losses totaled $80.0 million for the third quarter 2026, compared to $80.4 million for the second quarter 2026, and $80.0 million for the third quarter 2025. Net loan charge-offs in the third quarter 2026 totaled $45.8 million, or 0.30% of average loans on an annualized basis, compared to $55.0 million, or 0.37% in the second quarter 2026, and $31.1 million, or 0.22%, in the third quarter 2025. The allowance for credit losses to funded HFI loans was 0.93% at September 30, 2026 compared to 0.89% and 0.85% at June 30, 2026 and September 30, 2025, respectively.
Nonaccrual loans decreased $77 million during the quarter and $37 million from September 30, 2025, to $485 million. The decline in nonaccrual loans, combined with the increase in the allowance for credit losses, increased coverage of nonaccrual loans to 118%, from 96% at June 30, 2026, and 92% at September 30, 2025. Loans past due 90 days and still accruing interest totaled $58 million at September 30, 2026, compared with $55 million at June 30, 2026, and $49 million at September 30, 2025 (excluding government guaranteed loans of $214 million, $248 million, and $282 million, respectively). Loans past due 30-89 days and still accruing interest totaled $138 million at September 30, 2026, compared with $122 million at June 30, 2026, and $196 million at September 30, 2025 (excluding government guaranteed loans of $101 million, $102 million, and $149 million, respectively) a year-over-year decrease of $58 million. Criticized loans totaled $1.3 billion, an increase of $5 million during the quarter and $33 million from September 30, 2025.
Repossessed assets totaled $165 million at September 30, 2026, compared to $126 million at June 30, 2026, and $130 million at September 30, 2025. Classified assets of $1.1 billion at September 30, 2026 decreased $37 million from June 30, 2026, and $38 million from September 30, 2025.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2026 financial results at 12:00 p.m. ET on Tuesday, October 20, 2026. Participants may access the call by dialing 1-833-461-5787 and using access code 788268041 or via live audio webcast using the website link https://events.q4inc.com/attendee/788268041. 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 the webcast replay will remain available for one year.
Reclassifications
Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. Gains and losses related to the Company’s back-to-back interest rate swaps, risk participation agreements, and foreign exchange derivative contracts with customers have been reclassified to Commercial banking income and related fees in the Consolidated Income Statement. 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 and deposit optimization strategy, 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 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; 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, 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 more than $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 September 30,
2026
2025
Change %
(in millions)
Total assets
$
98,072
$
90,970
7.8
%
Loans held for sale
3,951
3,502
12.8
Loans HFI, net of deferred fees
61,549
56,646
8.7
Investment securities
20,239
18,841
7.4
Total deposits
81,755
77,247
5.8
Borrowings
5,613
3,862
45.3
Qualifying debt
1,053
681
54.6
Total equity
7,947
7,690
3.3
Tangible common equity, net of tax (1)
6,720
6,453
4.1
Common equity Tier 1 capital
7,389
6,736
9.7
Selected Income Statement Data:
For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2026
2025
Change %
2026
2025
Change %
(in millions, except per share data)
(in millions, except per share data)
Interest income
$
1,257.3
$
1,225.5
2.6
%
$
3,677.4
$
3,475.5
5.8
%
Interest expense
449.7
475.1
(5.3
)
1,306.6
1,376.9
(5.1
)
Net interest income
807.6
750.4
7.6
2,370.8
2,098.6
13.0
Provision for credit losses
80.0
80.0
—
373.6
151.1
NM
Net interest income after provision for credit losses
727.6
670.4
8.5
1,997.2
1,947.5
2.6
Non-interest income
206.6
187.8
10.0
658.0
463.5
42.0
Non-interest expense
595.1
544.4
9.3
1,752.8
1,559.5
12.4
Income before income taxes
339.1
313.8
8.1
902.4
851.5
6.0
Income tax expense
61.9
53.3
16.1
167.2
154.1
8.5
Net income
277.2
260.5
6.4
735.2
697.4
5.4
Net income attributable to noncontrolling interest
7.1
7.1
—
21.3
14.5
46.9
Net income attributable to Western Alliance
270.1
253.4
6.6
713.9
682.9
4.5
Dividends on preferred stock
3.2
3.2
—
9.6
9.6
—
Net income available to common stockholders
$
266.9
$
250.2
6.7
$
704.3
$
673.3
4.6
Diluted earnings per common share
$
2.45
$
2.28
7.5
$
6.43
$
6.14
4.7
Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended
September 30,
For the Nine Months Ended
September 30,
2026
2025
Change % (1)
2026
2025
Change % (1)
Diluted earnings per common share (2) / as adjusted (3)
$
2.45
$
2.28
7.5
%
$
6.43
/
$
7.01
$
6.14
4.7
%
Book value per common share
68.14
64.45
5.7
Tangible book value per common share, net of tax (3)
62.22
58.56
6.3
Average common shares outstanding
(in millions):
Basic
107.4
109.0
(1.5
)
107.8
108.9
(1.0
)
Diluted
107.8
109.8
(1.8
)
108.1
109.6
(1.4
)
Common shares outstanding
108.0
110.2
(2.0
)
Selected Performance Ratios:
Return on average assets / as adjusted (3, 4)
1.12
%
1.13
%
(0.9
)%
1.01
%
/
1.10
%
1.07
%
(5.6
)%
Return on average tangible common equity / as adjusted (3, 4)
15.5
15.6
(0.6
)
13.8
/
15.0
14.7
(6.1
)
Net interest margin (4)
3.57
3.53
1.1
3.55
3.51
1.1
Efficiency ratio (3)
58.1
57.4
1.2
57.3
60.2
(4.8
)
Efficiency ratio, adjusted for deposit costs (3)
50.0
47.8
4.6
48.8
51.6
(5.4
)
HFI loan to deposit ratio
75.3
73.3
2.7
Asset Quality Ratios:
Net charge-offs to average loans outstanding / as adjusted (3, 4)
0.30
%
0.22
%
36.4
0.70
%
/
0.35
%
0.21
%
NM
Nonaccrual loans to funded HFI loans
0.79
0.92
(14.1
)
Nonaccrual loans and repossessed assets to total assets
0.66
0.72
(8.3
)
Allowance for loan losses to funded HFI loans
0.83
0.78
6.4
Allowance for credit losses to funded HFI loans
0.93
0.85
9.4
Allowance for loan losses to nonaccrual HFI loans
106
84
26.2
Allowance for credit losses to nonaccrual loans
118
92
28.3
Capital Ratios: Sep 30, 2026
Jun 30, 2026
Sep 30, 2025
Tangible common equity (3)
6.9
%
7.0
%
7.1
%
Common Equity Tier 1 (5)
10.9
11.0
11.3
Tier 1 Leverage ratio (5)
8.2
8.1
8.1
Tier 1 Capital (5)
11.9
12.0
12.4
Total Capital (5)
14.0
14.1
14.2
(1)
Represents percentage change in reported metric from the prior period.
(2)
Diluted earnings per share for the three and nine months ended September 30, 2026 includes a reduction for earnings allocated to participating stock awards of $3.4 million and $9.0 million, respectively.
(3)
See Reconciliation of Non-GAAP Financial Measures.
(4)
Annualized on an actual/actual basis for periods less than 12 months.
(5)
Capital ratios for September 30, 2026 are preliminary.
NM Changes +/- 100% are not meaningful.
Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
(in millions, except per share data)
Interest income:
Loans
$
981.5
$
948.3
$
2,838.7
$
2,743.6
Investment securities
238.1
231.7
703.4
601.2
Other
37.7
45.5
135.3
130.7
Total interest income
1,257.3
1,225.5
3,677.4
3,475.5
Interest expense:
Deposits
382.5
398.2
1,113.7
1,154.3
Qualifying debt
17.4
6.3
44.3
23.8
Borrowings
49.8
70.6
148.6
198.8
Total interest expense
449.7
475.1
1,306.6
1,376.9
Net interest income
807.6
750.4
2,370.8
2,098.6
Provision for credit losses
80.0
80.0
373.6
151.1
Net interest income after provision for credit losses
727.6
670.4
1,997.2
1,947.5
Non-interest income:
Commercial banking income and related fees
78.7
52.4
248.2
139.5
Net gain on mortgage loan origination and sale activities
55.7
75.5
181.8
164.4
Net loan servicing revenue
23.8
19.1
53.8
79.2
Gain on sales of investment securities
16.8
8.5
70.3
22.0
Income from bank owned life insurance
12.9
11.8
34.4
34.2
Fair value gain (loss) adjustments, net
0.5
2.9
8.4
(0.7
)
Income from equity investments
7.8
7.8
33.0
5.9
Other
10.4
9.8
28.1
19.0
Total non-interest income
206.6
187.8
658.0
463.5
Non-interest expenses:
Salaries and employee benefits
226.1
193.5
635.9
555.8
Deposit costs
165.4
175.1
507.9
459.3
Data processing
55.8
48.1
161.0
138.3
Legal, professional, and directors' fees
34.4
28.1
97.8
82.3
Insurance
25.5
24.5
78.5
99.8
Occupancy
22.4
16.8
62.7
50.9
Loan servicing expenses
17.0
15.0
51.3
51.5
Business development and marketing
10.2
5.6
28.0
17.6
Loan acquisition and origination expenses
8.5
7.3
25.2
18.3
Other
29.8
30.4
104.5
85.7
Total non-interest expense
595.1
544.4
1,752.8
1,559.5
Income before income taxes
339.1
313.8
902.4
851.5
Income tax expense
61.9
53.3
167.2
154.1
Net income
277.2
260.5
735.2
697.4
Net income attributable to noncontrolling interest
7.1
7.1
21.3
14.5
Net income attributable to Western Alliance
270.1
253.4
713.9
682.9
Dividends on preferred stock
3.2
3.2
9.6
9.6
Net income available to common stockholders
$
266.9
$
250.2
$
704.3
$
673.3
Earnings per common share:
Diluted shares
107.8
109.8
108.1
109.6
Diluted earnings per share (1)
$
2.45
$
2.28
$
6.43
$
6.14
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(in millions, except per share data)
Interest income:
Loans
$
981.5
$
941.5
$
915.7
$
936.2
$
948.3
Investment securities
238.1
245.4
219.9
221.6
231.7
Other
37.7
45.0
52.6
59.6
45.5
Total interest income
1,257.3
1,231.9
1,188.2
1,217.4
1,225.5
Interest expense:
Deposits
382.5
370.5
360.7
383.5
398.2
Qualifying debt
17.4
13.8
13.1
9.0
6.3
Borrowings
49.8
50.7
48.1
58.7
70.6
Total interest expense
449.7
435.0
421.9
451.2
475.1
Net interest income
807.6
796.9
766.3
766.2
750.4
Provision for credit losses
80.0
80.4
213.2
73.0
80.0
Net interest income after provision for credit losses
727.6
716.5
553.1
693.2
670.4
Non-interest income:
Commercial banking income and related fees
78.7
73.1
96.4
80.7
52.4
Net gain on mortgage loan origination and sale activities
55.7
53.4
72.7
91.1
75.5
Net loan servicing revenue (loss)
23.8
31.3
(1.3
)
(1.4
)
19.1
Gain on sales of investment securities
16.8
3.0
50.5
7.4
8.5
Income from bank owned life insurance
12.9
10.8
10.7
11.8
11.8
Fair value gain (loss) adjustments, net
0.5
8.3
(0.4
)
(0.4
)
2.9
Income from equity investments
7.8
11.9
13.3
12.2
7.8
Other
10.4
7.0
10.7
13.3
9.8
Total non-interest income
206.6
198.8
252.6
214.7
187.8
Non-interest expenses:
Salaries and employee benefits
226.1
204.3
205.5
201.7
193.5
Deposit costs
165.4
179.2
163.3
171.2
175.1
Data processing
55.8
52.1
53.1
48.9
48.1
Legal, professional, and directors' fees
34.4
32.8
30.6
33.6
28.1
Insurance
25.5
28.3
24.7
17.7
24.5
Occupancy
22.4
21.1
19.2
19.7
16.8
Loan servicing expenses
17.0
17.6
16.7
17.7
15.0
Business development and marketing
10.2
8.3
9.5
11.1
5.6
Loan acquisition and origination expenses
8.5
8.8
7.9
7.9
7.3
Other
29.8
30.8
43.9
22.7
30.4
Total non-interest expense
595.1
583.3
574.4
552.2
544.4
Income before income taxes
339.1
332.0
231.3
355.7
313.8
Income tax expense
61.9
63.2
42.1
62.5
53.3
Net income
277.2
268.8
189.2
293.2
260.5
Net income attributable to noncontrolling interest
7.1
7.1
7.1
7.1
7.1
Net income attributable to Western Alliance
270.1
261.7
182.1
286.1
253.4
Dividends on preferred stock
3.2
3.2
3.2
3.2
3.2
Net income available to common stockholders
$
266.9
$
258.5
$
178.9
$
282.9
$
250.2
Earnings per common share:
Diluted shares
107.8
108.0
108.7
109.3
109.8
Diluted earnings per share (1)
$
2.45
$
2.36
$
1.65
$
2.59
$
2.28
Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(in millions)
Assets:
Cash and due from banks
$
5,328
$
5,936
$
8,554
$
3,596
$
5,756
Investment securities
20,239
20,622
20,392
20,438
18,841
Loans held for sale
3,951
4,347
3,936
3,498
3,502
Loans held for investment:
Commercial and industrial
30,101
29,765
28,223
27,928
25,734
Commercial real estate - non-owner occupied
10,697
10,301
10,344
10,340
10,487
Commercial real estate - owner occupied
1,561
1,578
1,711
1,683
1,682
Construction and land development
4,238
4,241
4,080
4,055
4,065
Residential real estate
14,937
15,048
14,765
14,652
14,651
Consumer
15
16
19
19
27
Loans HFI, net of deferred fees
61,549
60,949
59,142
58,677
56,646
Allowance for loan losses
(513
)
(487
)
(461
)
(461
)
(440
)
Loans HFI, net of deferred fees and allowance
61,036
60,462
58,681
58,216
56,206
Mortgage servicing rights
1,576
1,500
1,516
1,494
1,213
Premises and equipment, net
478
479
480
442
416
Operating lease right-of-use asset
114
119
125
131
134
Other assets acquired through foreclosure, net
165
126
123
137
130
Bank owned life insurance
1,084
1,075
1,067
1,057
1,045
Goodwill and other intangibles, net
642
644
646
649
651
Other assets
3,459
3,391
3,333
3,116
3,076
Total assets
$
98,072
$
98,701
$
98,853
$
92,774
$
90,970
Liabilities and stockholders' equity:
Liabilities:
Deposits
Non-interest bearing deposits
$
25,752
$
27,820
$
28,078
$
24,353
$
26,628
Interest bearing:
Demand
20,130
19,259
19,385
18,416
16,422
Savings and money market
25,210
24,886
25,414
24,586
24,627
Certificates of deposit
10,663
9,909
9,846
9,804
9,570
Total deposits
81,755
81,874
82,723
77,159
77,247
Borrowings
5,613
6,236
5,610
5,240
3,862
Qualifying debt
1,053
1,069
1,072
1,076
681
Operating lease liability
141
148
154
160
164
Accrued interest payable and other liabilities
1,563
1,239
1,386
1,193
1,326
Total liabilities
90,125
90,566
90,945
84,828
83,280
Equity:
Preferred stock
295
295
295
295
295
Common stock and additional paid-in capital
1,972
2,046
2,036
2,095
2,140
Retained earnings
6,173
5,952
5,740
5,607
5,371
Accumulated other comprehensive loss
(786
)
(451
)
(456
)
(344
)
(409
)
Total Western Alliance stockholders' equity
7,654
7,842
7,615
7,653
7,397
Noncontrolling interest in subsidiary
293
293
293
293
293
Total equity
7,947
8,135
7,908
7,946
7,690
Total liabilities and equity
$
98,072
$
98,701
$
98,853
$
92,774
$
90,970
Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(dollars in millions)
Allowance for loan losses
Balance, beginning of period
$
487.4
$
461.1
$
460.6
$
440.4
$
394.7
Provision for credit losses (1)
71.2
81.3
209.0
64.8
76.8
Recoveries of loans previously charged-off:
Commercial and industrial
0.7
1.6
0.6
1.7
0.7
Commercial real estate - non-owner occupied
1.3
1.0
—
—
—
Commercial real estate - owner occupied
—
—
—
0.4
—
Construction and land development
—
—
—
1.5
—
Residential real estate
—
—
—
—
—
Consumer
0.2
—
—
0.1
—
Total recoveries
2.2
2.6
0.6
3.7
0.7
Loans charged-off:
Commercial and industrial
16.2
25.4
181.4
28.9
12.4
Commercial real estate - non-owner occupied
25.7
32.0
27.7
10.7
12.9
Commercial real estate - owner occupied
—
0.1
—
—
—
Construction and land development
6.1
0.1
—
8.6
6.3
Residential real estate
—
—
—
—
—
Consumer
—
—
—
0.1
0.2
Total loans charged-off
48.0
57.6
209.1
48.3
31.8
Net loan charge-offs
45.8
55.0
208.5
44.6
31.1
Balance, end of period
$
512.8
$
487.4
$
461.1
$
460.6
$
440.4
Allowance for unfunded loan commitments
Balance, beginning of period
$
52.0
$
53.3
$
49.6
$
42.3
$
39.2
Provision for (recovery of) credit losses (1)
9.6
(1.3
)
3.7
7.3
3.1
Balance, end of period (2)
$
61.6
$
52.0
$
53.3
$
49.6
$
42.3
Components of the allowance for credit losses on loans
Allowance for loan losses
$
512.8
$
487.4
$
461.1
$
460.6
$
440.4
Allowance for unfunded loan commitments
61.6
52.0
53.3
49.6
42.3
Total allowance for credit losses on loans
$
574.4
$
539.4
$
514.4
$
510.2
$
482.7
Net charge-offs to average loans - annualized
0.30
%
0.37
%
1.45
%
0.31
%
0.22
%
Allowance ratios
Allowance for loan losses to funded HFI loans (3)
0.83
%
0.80
%
0.78
%
0.78
%
0.78
%
Allowance for credit losses to funded HFI loans (3)
0.93
0.89
0.87
0.87
0.85
Allowance for loan losses to nonaccrual loans
106
87
94
92
84
Allowance for credit losses to nonaccrual loans
118
96
105
102
92
(1)
The above tables reflect only the provision for credit losses on funded and unfunded loans. For the three months ended September 30, 2026, the release of provision for credit losses for HTM investment securities totaled $0.8 million. The allowance for credit losses on HTM investment securities totaled $13.0 million as of September 30, 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 $11.6 million as of September 30, 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
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(dollars in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans
$
485
$
562
$
492
$
500
$
522
Nonaccrual loans to funded HFI loans
0.79
%
0.92
%
0.83
%
0.85
%
0.92
%
Repossessed assets
$
165
$
126
$
123
$
137
$
130
Nonaccrual loans and repossessed assets to total assets
0.66
%
0.70
%
0.62
%
0.69
%
0.72
%
Loans Past Due
Loans past due 90 days, still accruing (1)
$
58
$
55
$
56
$
66
$
49
Loans past due 90 days, still accruing to funded HFI loans (1)
0.09
%
0.09
%
0.09
%
0.11
%
0.09
%
Loans past due 30 to 89 days, still accruing (2)
$
138
$
122
$
157
$
108
$
196
Loans past due 30 to 89 days, still accruing to funded HFI loans (2)
0.22
%
0.20
%
0.27
%
0.18
%
0.35
%
Other credit quality metrics
Special mention loans
$
397
$
316
$
403
$
325
$
292
Special mention loans to funded HFI loans
0.65
%
0.52
%
0.68
%
0.55
%
0.52
%
Classified accruing loans
$
441
$
440
$
455
$
450
$
476
Classified accruing loans to funded HFI loans
0.72
%
0.72
%
0.77
%
0.77
%
0.84
%
Classified assets
$
1,091
$
1,128
$
1,070
$
1,088
$
1,129
Classified assets to total assets
1.11
%
1.14
%
1.08
%
1.17
%
1.24
%
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
September 30, 2026
June 30, 2026
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,858
$
90.3
6.12
%
$
5,653
$
84.9
6.02
%
Loans HFI:
Commercial and industrial
29,591
451.2
6.09
28,364
426.4
6.07
CRE - non-owner occupied
10,417
172.6
6.57
10,296
169.6
6.61
CRE - owner occupied
1,557
24.2
6.18
1,574
23.8
6.07
Construction and land development
4,212
82.1
7.79
4,191
80.8
7.78
Residential real estate
15,002
160.8
4.25
14,879
155.7
4.20
Consumer
15
0.3
7.14
17
0.3
6.57
Total HFI loans (1), (2), (3), (4)
60,794
891.2
5.84
59,321
856.6
5.82
Investment securities:
Taxable
18,675
213.8
4.54
19,474
220.2
4.54
Tax-exempt
2,349
24.3
5.21
2,312
25.2
5.50
Total investment securities (1)
21,024
238.1
4.62
21,786
245.4
4.64
Cash and other
3,200
37.7
4.68
4,901
45.0
3.68
Total interest earning assets
90,876
1,257.3
5.53
91,661
1,231.9
5.43
Non-interest earning assets
Cash and due from banks
426
544
Allowance for loan losses
(509
)
(482
)
Bank owned life insurance
1,078
1,069
Other assets
5,933
5,692
Total assets
$
97,804
$
98,484
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts
$
19,766
$
110.9
2.22
%
$
19,316
$
102.5
2.13
%
Savings and money market
25,052
177.3
2.81
24,995
174.4
2.80
Certificates of deposit
10,088
94.3
3.71
9,873
93.6
3.80
Total interest-bearing deposits
54,906
382.5
2.76
54,184
370.5
2.74
Short-term borrowings
2,678
28.3
4.19
3,329
33.9
4.08
Long-term debt
1,601
21.5
5.33
1,158
16.8
5.83
Qualifying debt
1,067
17.4
6.48
1,071
13.8
5.17
Total interest-bearing liabilities
60,252
449.7
2.96
59,742
435.0
2.92
Interest cost of funding earning assets
1.96
1.90
Non-interest-bearing liabilities
Non-interest-bearing deposits
27,919
29,351
Other liabilities
1,554
1,379
Equity
8,079
8,012
Total liabilities and equity
$
97,804
$
98,484
Net interest income and margin (5)
$
807.6
3.57
%
$
796.9
3.53
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.4 million and $10.1 million for the three months ended September 30, 2026 and June 30, 2026, respectively.
(2)
Included in the yield computation are net loan fees of $23.9 million and $25.5 million for the three months ended September 30, 2026 and June 30, 2026, respectively.
(3)
Interest income includes a reduction for earnings credits totaling $56.7 million and $52.5 million for the three months ended September 30, 2026 and June 30, 2026, respectively.
(4)
Includes nonaccrual loans.
(5)
Net interest margin is computed by dividing net interest income on a tax equivalent basis 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
September 30, 2026
September 30, 2025
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,858
$
90.3
6.12
%
$
5,009
$
77.1
6.11
%
Loans HFI:
Commercial and industrial
29,591
451.2
6.09
25,216
410.9
6.51
CRE - non-owner occupied
10,417
172.6
6.57
10,473
190.8
7.23
CRE - owner occupied
1,557
24.2
6.18
1,688
25.2
6.05
Construction and land development
4,212
82.1
7.79
4,233
88.8
8.32
Residential real estate
15,002
160.8
4.25
14,557
155.1
4.23
Consumer
15
0.3
7.14
24
0.4
7.43
Total loans HFI (1), (2), (3), (4)
60,794
891.2
5.84
56,191
871.2
6.18
Investment securities:
Taxable
18,675
213.8
4.54
17,794
208.2
4.64
Tax-exempt
2,349
24.3
5.21
2,193
23.5
5.32
Total investment securities (1)
21,024
238.1
4.62
19,987
231.7
4.72
Cash and other
3,200
37.7
4.68
4,147
45.5
4.35
Total interest earning assets
90,876
1,257.3
5.53
85,334
1,225.5
5.74
Non-interest earning assets
Cash and due from banks
426
397
Allowance for loan losses
(509
)
(414
)
Bank owned life insurance
1,078
1,038
Other assets
5,933
4,957
Total assets
$
97,804
$
91,312
Interest bearing liabilities
Interest bearing deposits:
Interest bearing demand accounts
$
19,766
$
110.9
2.22
%
$
16,071
$
101.4
2.50
%
Savings and money market accounts
25,052
177.3
2.81
23,373
189.4
3.21
Certificates of deposit
10,088
94.3
3.71
10,124
107.4
4.21
Total interest bearing deposits
54,906
382.5
2.76
49,568
398.2
3.19
Short-term borrowings
2,678
28.3
4.19
2,577
30.2
4.66
Long-term debt
1,601
21.5
5.33
2,905
40.4
5.52
Qualifying debt
1,067
17.4
6.48
678
6.3
3.63
Total interest bearing liabilities
60,252
449.7
2.96
55,728
475.1
3.38
Interest cost of funding earning assets
1.96
2.21
Non-interest bearing liabilities
Non-interest bearing deposits
27,919
26,438
Other liabilities
1,554
1,539
Equity
8,079
7,607
Total liabilities and equity
$
97,804
$
91,312
Net interest income and margin (5)
$
807.6
3.57
%
$
750.4
3.53
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.4 million and $9.7 million for the three months ended September 30, 2026 and 2025, respectively.
(2)
Included in the yield computation are net loan fees of $23.9 million and $28.1 million for the three months ended September 30, 2026 and 2025, respectively.
(3)
Interest income includes a reduction for earnings credits totaling $56.7 million and $64.9 million for the three months ended September 30, 2026 and 2025, respectively.
(4)
Includes nonaccrual loans.
(5)
Net interest margin is computed by dividing net interest income on a tax equivalent basis by total average earning assets, annualized on an actual/actual basis.
Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Nine Months Ended
September 30, 2026
September 30, 2025
Average
Balance
Interest
Average Yield /
Cost
Average
Balance
Interest
Average Yield /
Cost
(dollars in millions)
Interest earning assets
Loans HFS
$
5,661
$
255.4
6.03
%
$
4,725
$
217.7
6.16
%
Loans HFI:
Commercial and industrial
28,512
1,290.9
6.10
24,056
1,168.9
6.55
CRE - non-owner occupied
10,343
512.0
6.62
10,247
547.8
7.15
CRE - owner occupied
1,608
72.9
6.08
1,785
80.7
6.15
Construction and land development
4,130
239.3
7.78
4,309
269.2
8.36
Residential real estate
14,832
467.3
4.21
14,435
457.5
4.24
Consumer
17
0.9
7.07
34
1.8
6.99
Total loans HFI (1), (2), (3), (4)
59,442
2,583.3
5.84
54,866
2,525.9
6.18
Investment securities:
Taxable
18,618
629.4
4.52
15,322
529.2
4.62
Tax-exempt
2,314
74.0
5.40
2,221
72.0
5.44
Total investment securities (1)
20,932
703.4
4.62
17,543
601.2
4.72
Cash and other
4,469
135.3
4.05
3,909
130.7
4.47
Total interest earning assets
90,504
3,677.4
5.48
81,043
3,475.5
5.78
Non-interest earning assets
Cash and due from banks
504
358
Allowance for loan losses
(485
)
(405
)
Bank owned life insurance
1,069
1,026
Other assets
5,713
4,862
Total assets
$
97,305
$
86,884
Interest bearing liabilities
Interest bearing deposits:
Interest bearing demand accounts
$
19,346
$
312.9
2.16
%
$
15,883
$
298.5
2.51
%
Savings and money market accounts
24,887
520.5
2.80
22,113
524.7
3.17
Certificates of deposit
9,897
280.3
3.79
10,076
331.1
4.39
Total interest bearing deposits
54,130
1,113.7
2.75
48,072
1,154.3
3.21
Short-term borrowings
2,984
91.6
4.10
2,452
86.7
4.72
Long-term debt
1,371
57.0
5.56
2,686
112.1
5.58
Qualifying debt
1,072
44.3
5.52
800
23.8
3.97
Total interest bearing liabilities
59,557
1,306.6
2.93
54,010
1,376.9
3.41
Interest cost of funding earning assets
1.93
2.27
Non-interest bearing liabilities
Non-interest bearing deposits
28,209
24,051
Other liabilities
1,469
1,534
Equity
8,070
7,289
Total liabilities and equity
$
97,305
$
86,884
Net interest income and margin (5)
$
2,370.8
3.55
%
$
2,098.6
3.51
%
(1)
Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $30.7 million and $30.1 million for the nine months ended September 30, 2026 and 2025, respectively.
(2)
Included in the yield computation are net loan fees of $73.3 million and $77.4 million for the nine months ended September 30, 2026 and 2025, respectively.
(3)
Interest income includes a reduction for earnings credits totaling $157.9 million and $184.3 million for the nine months ended September 30, 2026 and 2025, respectively.
(4)
Includes nonaccrual loans.
(5)
Net interest margin is computed by dividing net interest income on a tax equivalent basis 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
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
Income statement line item
(in millions)
Interest income (1)
$
56.7
$
52.5
$
48.7
$
56.6
$
64.9
Commercial banking income and related fees (1)
8.6
8.4
8.3
7.2
5.4
Deposit costs (2)
158.4
173.3
157.3
165.0
169.1
Total earnings credit and referral costs
$
223.7
$
234.2
$
214.3
$
228.8
$
239.4
Western Alliance Bancorporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures
Unaudited
Pre-Provision Net Revenue by Quarter:
Three Months Ended
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(in millions)
Net interest income
$
807.6
$
796.9
$
766.3
$
766.2
$
750.4
Total non-interest income
206.6
198.8
252.6
214.7
187.8
Net revenue
$
1,014.2
$
995.7
$
1,018.9
$
980.9
$
938.2
Total non-interest expense
595.1
583.3
574.4
552.2
544.4
Pre-provision net revenue (1)
$
419.1
$
412.4
$
444.5
$
428.7
$
393.8
Less:
Provision for credit losses
80.0
80.4
213.2
73.0
80.0
Income tax expense
61.9
63.2
42.1
62.5
53.3
Net income
$
277.2
$
268.8
$
189.2
$
293.2
$
260.5
Efficiency Ratio (Tax Equivalent Basis) by Quarter:
Three Months Ended
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(dollars in millions)
Total non-interest expense
$
595.1
$
583.3
$
574.4
$
552.2
$
544.4
Less: Deposit costs
165.4
179.2
163.3
171.2
175.1
Total non-interest expense, excluding deposit costs
429.7
404.1
411.1
381.0
369.3
Divided by:
Total net interest income
807.6
796.9
766.3
766.2
750.4
Plus:
Tax equivalent interest adjustment
10.4
10.1
10.1
9.9
9.7
Total non-interest income
206.6
198.8
252.6
214.7
187.8
Less: Deposit costs
165.4
179.2
163.3
171.2
175.1
$
859.2
$
826.6
$
865.7
$
819.6
$
772.8
Efficiency ratio (2)
58.1
%
58.0
%
55.8
%
55.7
%
57.4
%
Efficiency ratio, adjusted for deposit costs (2)
50.0
%
48.9
%
47.5
%
46.5
%
47.8
%
Western Alliance Bancorporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures
Unaudited
Tangible Common Equity:
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(in millions, except per share data)
Total equity
$
7,947
$
8,135
$
7,908
$
7,946
$
7,690
Less:
Goodwill and intangible assets, net
642
644
646
649
651
Preferred stock
295
295
295
295
295
Noncontrolling interest in subsidiary
293
293
293
293
293
Total tangible common equity
6,717
6,903
6,674
6,709
6,451
Plus: deferred tax - attributed to intangible assets
3
3
3
2
2
Total tangible common equity, net of tax
$
6,720
$
6,906
$
6,677
$
6,711
$
6,453
Total assets
$
98,072
$
98,701
$
98,853
$
92,774
$
90,970
Less: goodwill and intangible assets, net
642
644
646
649
651
Tangible assets
97,430
98,057
98,207
92,125
90,319
Plus: deferred tax - attributed to intangible assets
3
3
3
2
2
Total tangible assets, net of tax
$
97,433
$
98,060
$
98,210
$
92,127
$
90,321
Tangible common equity ratio (3)
6.9
%
7.0
%
6.8
%
7.3
%
7.1
%
Common shares outstanding
108.0
109.2
109.2
109.5
110.2
Tangible book value per share, net of tax (3)
$
62.22
$
63.24
$
61.14
$
61.29
$
58.56
Return on Average Tangible Common Equity:
Three Months Ended
Sep 30, 2026
Jun 30, 2026
Mar 31, 2026
Dec 31, 2025
Sep 30, 2025
(in millions)
Net income available to common shareholders
$
266.9
$
258.5
$
178.9
$
282.9
$
250.2
Divided by:
Average equity
8,079
8,012
8,121
7,864
7,607
Less:
Average goodwill and intangible assets
643
646
648
650
652
Average preferred stock
295
295
295
295
295
Average noncontrolling interest in subsidiary
293
293
293
293
293
Average tangible common equity
$
6,848
$
6,778
$
6,885
$
6,626
$
6,367
Return on average tangible common equity (1)
15.5
%
15.3
%
10.5
%
16.9
%
15.6
%
Net Revenue and Pre-Provision Net Revenue, As Adjusted
Nine Months Ended
September 30, 2026
(in millions)
Net revenue
$
3,028.8
Adjusted for:
Gain on sales of investment securities
(50.5
)
Net revenue, as adjusted
$
2,978.3
Total non-interest expense
1,752.8
Pre-provision net revenue, as adjusted (1)
$
1,225.5
Less:
Provision for credit losses
373.6
Income tax expense
167.2
Gain on sales of investment securities
(50.5
)
Net income
$
735.2
Earnings per Share, As Adjusted:
Nine Months Ended
September 30, 2026
(in millions, except per share data)
Net income
$
735.2
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
797.3
Net income attributable to noncontrolling interest
21.3
Dividends on preferred stock
9.6
Net income available to common stockholders, as adjusted
$
766.4
Diluted shares
108.1
Diluted earnings per share, as adjusted (1)
$
7.01
Return on Average Assets, As Adjusted:
Nine Months Ended
September 30, 2026
(dollars in millions)
Net income, as adjusted
$
797.3
Divided by:
Average assets
$
97,305
Return on average assets, as adjusted (1)
1.10
%
Western Alliance Bancorporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures
Unaudited
Return on Average Tangible Common Equity, As Adjusted:
Nine Months Ended
September 30, 2026
(dollars in millions)
Net income available to common stockholders, as adjusted
$
766.4
Divided by: Average equity
8,070
Less:
Average goodwill and intangible assets
646
Average preferred stock
295
Average noncontrolling interest in subsidiary
293
Average tangible common equity
$
6,836
Return on average tangible common equity (1)
13.8
%
Return on average tangible common equity, as adjusted (1)
15.0
%
Net Charge-Offs and Net Charge-Offs to Average Loans, As Adjusted:
Nine Months Ended
September 30, 2026
(dollars in millions)
Net charge-offs
$
309.3
Adjusted for fraud related charge-offs:
LAM
(126.4
)
Cantor
(26.1
)
Net charge-offs, as adjusted
$
156.8
Divided by: Average HFI loans
59,442
Net charge-offs to average loans - annualized, as adjusted
0.35
%
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.
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