Western Alliance Bancorporation (WAL) Q4 2025 earnings summary

Executive summary

• Achieved record net income and EPS in Q4 and full-year 2025, with Q4 net income of $293.2M (up 35.2% YoY) and full-year net income of $990.6M; EPS for Q4 was $2.59 (up 33% YoY), and full-year EPS was $8.73 (up 23%).

• Loan and deposit growth remained robust, with total loans up 9.3% and deposits up 16.3% year-over-year.

• Tangible book value per share increased 17.3% year-over-year to $61.29.

• Operating leverage was significant, with net revenue growth outpacing non-interest expense growth by four times.

Financial highlights

• Record net interest income of $2.86B for 2025, with Q4 net interest income of $766.2M, up 15% year-over-year.

• Net revenue for Q4 2025 was $980.9M, up 17% year-over-year; full-year net revenue was $3.5B, up 12%.

• Pre-provision net revenue for Q4 was $428.7M, up 34.2% year-over-year; full-year PPNR was $1.4B, up 25.9%.

• Non-interest income for Q4 was $214.7M, up 24.9% year-over-year; full-year non-interest income was $678.2M, up 24.9%.

• Efficiency ratio for Q4 was 55.7% (46.5% adjusted), both improved by five points year-over-year.

Outlook and guidance

• 2026 guidance: loan growth of $6B, deposit growth of $8B, and net interest income growth of 11%-14%.

• Non-interest income expected to grow 2%-4%; operating expenses to rise 2%-7%, mainly from scale and targeted investments.

• Net charge-offs projected between 25-35 bps, with allowance for funded loans expected to drift into the low 80s bps.

• CET1 ratio to be maintained around 11%; opportunistic share repurchases planned.

• Effective tax rate for 2026 projected at 19%.