Western Alliance Bancorporation (WAL) Q1 2026 earnings summary

Executive summary

• Q1 2026 results showed strong core business performance, with net income of $189.2 million ($251.3 million adjusted) and EPS of $1.65 ($2.22 adjusted), reflecting robust deposit and loan growth but impacted by significant fraud-related charge-offs.

• Adjusted net income available to common stockholders was $241 million, up 24% year-over-year.

• Total deposits grew $5.6 billion sequentially and $13.4 billion year-over-year, reaching $82.7 billion; loans held for investment increased $465 million sequentially and $4.4 billion year-over-year.

• Tangible book value per share rose 13% year-over-year to $61.14, and CET1 ratio remained stable at 11.0%.

• Share repurchases totaled 700,000 shares in Q1 at an average price in the low $70s, with program-to-date repurchases at 1.6 million shares for $120.4 million.

Financial highlights

• Net interest income was $766 million, stable sequentially and up 18% year-over-year, with net interest margin expanding to 3.54%.

• Non-interest income rose 18% quarter-over-quarter to $253 million, driven by $50.5 million in securities gains.

• Adjusted pre-provision net revenue was $394 million, up 42% year-over-year.

• Efficiency ratio improved to 56% (55.8% reported, 47.5% adjusted), up 8 percentage points year-over-year.

• Provision for credit losses was $213.2 million, reflecting $152.5 million in fraud-related charge-offs.

Outlook and guidance

• 2026 guidance reiterates $6 billion HFI loan growth and $8 billion deposit growth targets.

• Net interest income growth projected at 11%-14%, now expected toward the upper end of the range due to no assumed rate cuts and strong loan growth.

• Non-interest income (excluding securities gains) expected to grow 13%-17%, driven by Juris Banking and mortgage banking.

• Non-interest expense projected to rise 7%-11%, with operating expenses between $1.6-$1.65 billion, reflecting higher variable compensation and investments.

• Core net charge-off guidance reaffirmed at 25-35 basis points, excluding fraud-related items, with charge-offs expected to decline in H2.

• Effective tax rate outlook remains at 19%.