Western Alliance Bancorporation Stock Earnings Reports

Western Alliance reported a solid operating quarter after taking two previously disclosed fraud-related charge-offs. Adjusted EPS (ex-fraud/security sale items) was $2.22. Management fully charged off the remaining $126.4M LAM loan and charged off $26M on the Cantor Group 5 loan while pursuing legal and insurance remedies; they say these matters are largely behind the company. Key operating results: deposits surged by $5.6B in Q1 (already well on track to the $8B 2026 target), total loans grew $903M, HFI loan growth target of $6B for 2026 reiterated, and NIM widened modestly to 3.54% (+3 bps). Interest-bearing deposit costs fell 21 bps in the quarter, supporting stable net interest income of $766M (up ~18% YoY). Adjusted pre-provision net revenue improved materially and adjusted ROTACE was 14.2%; CET1 remained at the 11% target and ACL was 87 bps (loan loss reserve 78 bps of funded HFI loans, planned to trend to low-80s bps as mix shifts to more C&I). Management repurchased shares opportunistically ($50M in Q1), reinforced capital discipline (CET1 target 11%), and expects NII growth of 11–14% (now leaning toward the upper end), noninterest income ex-security-sales +13–17%, and operating expenses +7–11%. Core net charge-off guidance (ex-fraud items) remains 25–35 bps; management expects charge-offs to decline in H2. Investor Day is scheduled for May 12.