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Western Alliance Bancorporation
NYSE: WAL Financials Bank 🔎 Screen
🏹 Trader: 📊 High Volume View all →
$8.7B
Market Cap
9.6
P/E
0.50
PEG
ROCE
13.5%
ROE
0.79
D/E
OPM
-15.9%
% from 52W High
32
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for WAL including FX impact
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📈 Price History
Ratio Health
Excellent
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About

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada.

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📈 Growth Pattern
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3-Statement Financial Model
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📊 MIXED Western Alliance Q1 2026: Deposit growth $5.6B, EPS $2.22 adjusted, NIM 3.54%
Revenue & Profitability
Adjusted earnings per share was $2.22, up 24% year-over-year. Net interest income was $766 million, stable quarter-over-quarter and up 18% year-over-year. Adjusted pre-provision net revenue was $394 million, up 42% from the prior year. The company reported adjusted net income available to common stockholders of $241 million.
Outlook
Management expects continued robust loan pipelines and strong deposit growth, but is monitoring macroeconomic and geopolitical conditions, particularly interest rate volatility. They assumed no rate cuts in 2026 (previously two cuts forecasted), which supports net interest income and margin. Core asset quality is seen past peak stress, especially in office CRE, with classified loans migrating toward resolution.
Growth Drivers
Key growth levers include Regional Banking (led by homebuilder finance), innovation banking, hotel franchise finance, and the mortgage warehouse business. Mortgage banking revenue is expected to grow about 15% over 2025, driven by higher gain-on-sale margins and retail recapture. Juris banking fee income is supported by large settlements (e.g., Facebook Cambridge Analytica). The company reiterates $6 billion HFI loan growth and $8 billion deposit growth targets for 2026.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Net interest margin expanded 3 basis points sequentially to 3.54%, driven by a 21 basis point decline in interest-bearing deposit costs. The adjusted efficiency ratio improved to 48%, with revenue growth outpacing non-interest expense growth by approximately three times year-over-year. Full-year NII growth is expected to trend toward the upper end of 11%-14%, with modest NIM expansion relative to 2025.
Key Risks
Risks flagged include ongoing fraud-related credit issues (Leucadia Asset Management and Cantor Group Five loans), which have been largely charged off but may involve lengthy recovery processes. Interest rate volatility impacted mortgage banking in March, though April activity has rebounded. Management also noted geopolitical uncertainty and potential shifts in risk-adjusted loan spreads that could alter lending appetite.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-22
Strong Q2 results featured robust C&I loan growth, higher net interest income, and stable asset quality. The outlook was revised to prioritize share buybacks over outsized loan growth, with continued focus on deposit optimization and capital strength.
Q1 2026 Q1 2026 2026-04-22
Q1 2026 saw strong core performance, with adjusted EPS of $2.22 and robust deposit growth of $5.6B. Guidance for 2026 remains unchanged, with loan and deposit growth targets reaffirmed, and net interest income expected at the upper end of the 11%-14% range.
Q4 2025 Q4 2025 2026-01-27
Delivered record 2025 results with strong loan and deposit growth, robust fee income, and stable asset quality. 2026 guidance calls for $6B loan and $8B deposit growth, 11%-14% NII growth, and continued margin expansion, supported by diversified business lines and favorable market conditions.
Q3 2025 Q3 2025 2025-10-22
Record Q3 results featured strong net revenue, robust deposit growth, and stable asset quality. Guidance was raised for year-end deposits, with net interest income and non-interest income both expected to exceed prior targets. Credit risks are contained, and capital levels remain strong.
Q2 2025 Q2 2025 2025-07-18
Q2 2025 saw strong loan and deposit growth, improved profitability, and higher returns, prompting raised guidance for net interest and noninterest income. Asset quality remains stable, with OREO properties cash flow positive and capital ratios above peers.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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