Western Alliance Bancorporation Stock Earnings Reports

Western Alliance reported strong Q3 2025 results driven by record net revenue ($938M) and record pre-provision net revenue ($394M). Net interest income rose 30% (linked-quarter annualized) to $750M on healthy loan growth and stable NIM (3.53%). Noninterest income improved (mortgage banking recovery) and operating leverage tightened; adjusted efficiency (ex-ECR) fell below 50%. EPS was $2.28, ROAA 1.13% and ROTCE 15.6%. Loans and deposits grew robustly (+$7B loans, +$6.1B deposits), allowing reduction in borrowings. Asset quality was largely in line with guidance: criticized assets fell 17%, but a $98.5M note finance loan to Cantor Group V moved to non-accrual amid alleged fraud and generated a $30M specific reserve (raising ACL to 85 bps funded loans). Management believes the Cantor issue is a one-off and collateral, guarantees and insurance should protect losses; they completed title re-verification on large notes (> $10M) and found no additional discrepancies to date. Guidance: reiterate $5B loan growth, raise year-end deposit growth to $8.5B; NII growth 8–10% for year, full-year NIM ~mid-3.5%; noninterest income expected up 12–16%; noninterest expense up 2.5–4%; full-year net charge-offs around 20 bps. Capital: CET1 ~11.3%; company evaluating subordinated debt issuance to augment parent liquidity and accelerate share repurchases (authorized $300M, $25M executed). Management emphasized strong underwriting track record in private credit and mortgage warehouse businesses, tightened onboarding/monitoring in note finance after the Cantor discovery, and confidence in ability to absorb potential losses while continuing growth and shareholder returns.