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Western Alliance Bancorporation

WAL Q1 2026 Earnings

Reported Apr 21, 2026 at 4:22 PM ET · SEC Source

Q1 26 EPS

$2.22

BEAT +62.95%

Est. $1.36

Q1 26 Revenue

$1.02B

BEAT +6.21%

Est. $959.4M

Did WAL Beat Earnings? Q1 2026 Results

Western Alliance Bancorporation navigated a quarter defined by significant fraud-related credit resolutions, reporting adjusted EPS of $2.22 on revenue of $1.02 billion for Q1 2026, extending the company's streak of beating consensus EPS estimates to… Read more Western Alliance Bancorporation navigated a quarter defined by significant fraud-related credit resolutions, reporting adjusted EPS of $2.22 on revenue of $1.02 billion for Q1 2026, extending the company's streak of beating consensus EPS estimates to four consecutive quarters. The headline results were heavily shaped by $152.50 million in combined charge-offs tied to the Leucadia Asset Management and Cantor Group V loans, which drove total provision for credit losses to $213.20 million, more than tripling the year-ago level, while GAAP EPS landed at $1.65. Beneath those one-time pressures, the underlying business performed well, with net interest margin expanding to 3.54% and deposits surging $5.60 billion in the quarter to $82.70 billion. Looking ahead, management revised its 2026 outlook to assume no rate cuts, now guiding for net interest income growth of 11-14% and non-interest income up 20-25%, with loan and deposit growth targets of $6.00 billion and $8.00 billion, respectively, as the company maintains a CET1 ratio of approximately 11%.

Key Takeaways

  • • Net interest margin expanded 3 basis points to 3.54% driven by 21 bps decline in interest-bearing deposit costs
  • • Robust deposit growth of $5.6 billion in Q1, with non-interest bearing deposits up $3.7 billion
  • • Decisive resolution of two fraud-related credits (LAM and Cantor) totaling $152.5 million in charge-offs
  • • Security sales generating $50.5 million in gains as part of mitigation strategy
  • • Service charges and fees more than doubled year-over-year to $88.5 million, driven by Juris Banking
  • • C&I loan growth of $295 million led quarterly loan expansion
  • • $14.2 billion in mortgage loan production with improved gain-on-sale margin of 37 bps

WAL Forward Guidance & Outlook

Revised 2026 outlook now assumes no rate cuts in 2026 (previously assumed two 25 bps cuts). Loans HFI expected up $6.0 billion; deposits up $8.0 billion. CET1 ratio targeted at approximately 11%. Net interest income growth of 11-14%, tracking towards upper end as variable-rate loans benefit from fewer rate cuts. Non-interest income expected up 20-25% (up 13-17% excluding $51 million in security gains), driven by strong Juris Banking performance. Non-interest expense excluding deposit costs of $1,600-$1,650 million, with operating expense mitigating actions partially offset by higher variable compensation. Deposit costs of $650-$700 million (higher than prior guidance due to fewer rate cuts, partially offset by Q1 deposit outperformance and optimization). Net charge-offs of 25-35 basis points excluding fraud-related credit resolutions. Effective tax rate approximately 19%.

24/7 Wall St

WAL YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

WAL Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Western Alliance achieved solid first quarter results featuring robust deposit growth, net interest margin expansion, and core earnings momentum, while taking decisive action to resolve two fraud-related credits, partially offset by gains from a series of well-executed security sales.”

— Kenneth A. Vecchione, Q1 2026 Earnings Press Release

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