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%.
WAL YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
WAL Revenue by Segment
With YoY comparisons, source: SEC Filings
“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
WAL Earnings Trends
WAL vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
WAL EPS Trend
Earnings per share: estimate vs actual
WAL Revenue Trend
Quarterly revenue: estimate vs actual
WAL Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.36 | $2.22 | +62.95% | $1.02B | +6.21% |
| Q4 25 BEAT FY | $2.37 | $2.59 | +9.07% | $980.9M | +7.33% |
| FY Full Year | $8.33 | $8.73 | +4.78% | $3.54B | +1.96% |
| Q3 25 BEAT | $2.07 | $2.28 | +9.95% | $938.2M | +5.70% |
| Q2 25 BEAT | $2.00 | $2.07 | +3.28% | $845.9M | +0.86% |
| Q1 25 BEAT | $1.78 | $1.79 | +0.66% | $778.0M | -1.92% |