10-Q · May 8, 2026
Western Alliance Bancorporation reported strong performance in Q1 2026 with revenue of $1.0189 billion and a diluted EPS of $2.22, exceeding expectations. However, these figures were impacted by a notable provision for…
WAL earnings analysis
10-Q · Filed October 30, 2026 · Our reading of the company's report
The latest report
Western Alliance delivered solid year-over-year growth in Q3 2026, with net revenue up 8.1% to $1.0142 billion, diluted EPS up 7.5% to $2.45, and NIM improving to 3.57%. Loan and deposit balances expanded, deposit…
Read full summary
Western Alliance delivered solid year-over-year growth in Q3 2026, with net revenue up 8.1% to $1.0142 billion, diluted EPS up 7.5% to $2.45, and NIM improving to 3.57%. Loan and deposit balances expanded, deposit optimization reduced higher-cost funding, and reported asset-quality ratios improved. However, credit costs remained elevated, expenses grew faster than revenue, and capital ratios weakened amid AOCI losses and share repurchases; no quantitative forward guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.45
What stood out
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Revenue and NIM improved
Net revenue increased 8.1% year over year to $1.0142 billion from $938.2 million. Net interest income rose 7.6% to $807.6 million, while net interest margin expanded 4 basis points to 3.57%.
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EPS grew 7.5% year over year
Diluted EPS increased 7.5% to $2.45 from $2.28, while net income available to common stockholders rose 6.7% to $266.9 million from $250.2 million.
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Loan and deposit growth continued
Loans HFI increased $2.9 billion, or 4.9%, to $61.5 billion from December 31, 2025, and deposits increased $4.6 billion, or 6.0%, to $81.8 billion.
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Deposit optimization lowered costs
The deposit optimization strategy transitioned approximately $3.0 billion of higher-cost deposits during Q3, bringing cumulative reductions to approximately $4.5 billion. Deposit costs declined $9.7 million year over year to $165.4 million.
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Credit metrics improved
Asset quality improved in several measures: nonaccrual loans to funded HFI loans declined to 0.79% from 0.85% at December 31, 2025, while nonperforming assets to total assets declined to 0.66% from 0.69%.
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Liquidity position strengthened
Liquidity remained substantial, with $22.1 billion of liquid assets at September 30, 2026, including $4.2 billion of cash at the FRB and $17.9 billion of unencumbered securities. Operating cash used was $93.4 million for the first nine months, versus $2.6 billion used in the prior-year period.
What to watch
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Elevated credit and CRE exposure
Credit costs remain elevated: the provision for credit losses was $80.0 million in Q3, net loan charge-offs were $45.8 million, and annualized net charge-offs rose to 0.30% from 0.22% in Q3 2025. CRE-related loans represented approximately 27% of total loans, and CRE non-owner-occupied charge-offs were $25.7 million in the quarter.
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Operating expenses pressured efficiency
Expense growth outpaced revenue growth. Non-interest expense increased 9.3% to $595.1 million, driven in part by a $32.6 million increase in salaries and employee benefits, while the efficiency ratio worsened to 58.1% from 57.4%.
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Capital and funding sensitivity
Capital ratios weakened despite earnings and repurchases: the CET1 ratio declined to 10.9% from 11.0%, the tangible common equity ratio declined to 6.9% from 7.3%, and the AOCI-related CET1 adjustment was negative $786 million versus negative $341 million at December 31, 2025. The company also had $5.6 billion of wholesale brokered deposits outstanding.
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No formal risk-factor update
The filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K. The report nevertheless identifies 39 categories of forward-looking risk, including interest-rate changes, credit losses, CRE exposure, liquidity, regulatory capital and cybersecurity.
Management's outlook
No quantitative forward revenue or EPS guidance was provided in the 10-Q. Management stated that forward-looking results remain subject to interest rates, deposit behavior, credit conditions and other risks; the report indicates Parent liquidity is expected to support operations for over twelve months without new funding.
Earlier filings 4
10-K · February 23, 2026
Western Alliance completed a brand unity on October 4, 2025 and ended 2025 with a $58.7 billion HFI loan portfolio and $92,736 million of bank total assets (Western Alliance Bank) as of December 31, 2025. Quarterly…
10-Q · August 1, 2024
Western Alliance reported quarterly revenue of $771.8M and diluted EPS of $1.75 for the three months ended June 30, 2024. Revenue and net interest income expanded materially year-over-year (to $771.8M and $656.6M,…
10-Q · May 2, 2024
Western Alliance reported Q1 2024 total revenue of $728.8M (net interest income $598.9M + non‑interest income $129.9M), up from $551.9M in Q1 2023, driving net income of $177.4M and diluted EPS of $1.60. The quarter…
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