Results at a glance
- Period
- FY2026Q3
- Revenue
- $1B (1,014.2 MUSD)
- Net income
- $266.9M (266.9 MUSD)
- Net margin
- 26.3%
From the Western Alliance Open LedgerView the live ledgerIssuer filing (FY2026Q3)
Western Alliance Bancorporation (NYSE: WAL), the Phoenix regional bank, reported third-quarter 2026 net income to common of $266.9 million, or $2.45 per share — up 7.5% from $2.28 a year ago. Net interest income grew 7.6% to $807.6 million as the margin expanded 4 basis points to 3.57%, with earning-asset yields at 5.40% and deposit costs easing to 2.03% on $4.5 billion of balance optimization. Non-interest income surged 30.7% to $206.6 million, led by commercial banking fees up 50% to $78.7 million, while the $80.0 million provision held steady and net charge-offs fell to 0.30% from 0.73% — a long way from Q1's 1.45% spike, when the provision ran $213.2 million. Nonaccrual loans dropped 14% in the quarter to 0.79% of funded loans, and allowance coverage of nonaccruals rebuilt to 118% from 96%.
Expenses grew 9.3% to $595.1 million on salaries and deposit costs, holding the efficiency ratio at 58.7%, while pre-provision net revenue rose 6.4% to $419.1 million. HFI loans grew 8.7% to $61.5 billion — commercial-and-industrial up, residential steady at $14.9 billion — funded by deposits up 5.8% to $81.8 billion with non-interest-bearing balances rebuilding to $25.8 billion. Capital returned aggressively: $92.1 million of buybacks in the quarter (1.15 million shares at $79.78), $212.5 million cumulatively under the $300 million authorization. The CET1 ratio eased to 10.9% from 11.3% as risk assets grew faster than the $7.4 billion of CET1 capital, while tangible book value per share rose 6.3% year over year to $62.22.
The Headline Numbers
| Metric | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Net income to common | $266.9M | $260.1M | $250.7M |
| Diluted EPS | $2.45 (+7.5%) | $2.37 | $2.28 |
| Net interest income | $807.6M (+7.6%) | $766.0M | $750.4M |
| Net interest margin | 3.57% | 3.53% | 3.53% |
| Provision for credit losses | $80.0M | $80.4M | $82.5M |
| Net charge-offs / avg loans | 0.30% | 0.48% | 0.73% |
| Non-interest income | $206.6M (+30.7%) | $175.2M | $158.1M |
| Non-interest expense | $595.1M (+9.3%) | $555.8M | $544.3M |
| Pre-provision net revenue | $419.1M (+6.4%) | $385.4M | $393.8M |
| HFI loans | $61,549M (+8.7%) | $60,949M | $56,646M |
| Total deposits | $81,755M (+5.8%) | $77,236M | $77,247M |
| CET1 ratio | 10.9% | 11.0% | 11.3% |
| Tangible book value / share | $62.22 (+6.3%) | $63.24 | $58.56 |
The allowance for credit losses on loans ended at $512.8 million, or 0.93% of HFI loans excluding guaranteed balances — up 4 basis points — with the loan provision of $71.2 million plus $9.6 million for unfunded commitments. Mortgage banking contributed $55.7 million of origination gains and $23.8 million of net servicing revenue against a $1,576 million servicing asset, and the effective tax rate printed 18.3%.
Five years in the ledger: AmeriHome, the rate shock, the rebuild
The ledger runs FY2021–FY2025 plus this quarter. Total revenue nearly doubled from $1,953.0 million to $3,543.0 million while net interest income climbed every year to $2,864.8 million. Three artifacts reward a look: FY2021's AmeriHome acquisition left loans held for sale at $5,635.1 million with a $21.4 million provision recovery; FY2023's $722.4 million net income absorbs $436.7 million of deposit costs, a $190.4 million insurance line swollen by the FDIC special assessment, and $116.0 million of fair-value losses; and FY2024's $787.7 million is the trough before FY2025's $990.6 million, which introduces a $293 million noncontrolling interest. Non-interest-bearing deposits cratered from $21,353.4 million to $14,520 million in the 2023 scramble and have rebuilt past $24 billion, while other borrowings spiked to $7,230 million and settled near $5.2 billion. Every annual income statement and balance sheet, plus this quarter's condensed 8-K statements, is modeled as examinable Beancount below.
