WAL

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how regional banks stocks fared in Q2, starting with Western Alliance Bancorporation (NYSE:WAL). Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 94 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.1% since the latest earnings results. Operating through five distinct regional banking divisions across the western United States, Western Alliance Bancorporation (NYSE:WAL) provides commercial banking, treasury management, mortgage services, and specialized financial solutions through its banking divisions and subsidiaries. Western Alliance Bancorporation reported revenues of $986.3 million, up 18.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates. The market seems disappointed with the results as the stock is down 1.2% since reporting and currently trades at $79.50. Read our full report on Western Alliance Bancorporation here, it’s free. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.4% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates. The market seems content with the results as the stock is up 4.5% since reporting. It currently trades at $52.25. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share and net interest income estimates. As expected, the stock is down 11.6% since the results and currently trades at $18.72. Read our full analysis of Banc of California’s results here. Founded in 1893 as the first bank in Puerto Rico to serve the working class, Popular (NASDAQ:BPOP) is a financial holding company that provides retail, mortgage, and commercial banking services primarily in Puerto Rico and the mainland United States. Popular reported revenues of $872.5 million, up 9.6% year on year. This number surpassed analysts’ expectations by 0.8%. Aside from that, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a miss of analysts’ tangible book value per share estimates. The stock is down 2.3% since reporting and currently trades at $169.81. Read our full, actionable report on Popular here, it’s free. Tracing its roots back to 1971 and operating in a region known as the "heart of Dixie," Regions Financial (NYSE:RF) is a financial holding company that provides banking services, wealth management, and specialty financial solutions across the South, Midwest, and Texas. Regions Financial reported revenues of $1.96 billion, up 2.3% year on year. This print beat analysts’ expectations by 0.8%. Taking a step back, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ tangible book value per share estimates. The stock is down 5.6% since reporting and currently trades at $30.60. Read our full, actionable report on Regions Financial here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is shifting strategy from maximizing balance sheet growth to value optimization, reallocating capital from loan growth toward share repurchases due to perceived stock undervaluation. Strong second quarter performance was driven by broad-based C&I loan growth, which now accounts for nearly 49% of the total portfolio as the bank intentionally de-emphasizes CRE. The bank initiated a deposit optimization strategy to enhance profitability by transitioning approximately $1.2 billion of higher-cost deposits to other institutions. Operating leverage improved significantly as revenue growth outpaced expense growth by a three-to-one margin, even while absorbing costs related to crossing the $100 billion asset threshold. Credit trends are characterized as constructive, with management noting that while non-accruals rose due to a specific migration, the underlying borrower has brought the credit current. The bank maintains a 'S-curve' philosophy for business growth, asserting that its industry-leading growth rates do not imply increased risk-taking. Loan growth guidance was revised downward to $5 billion to prioritize $150 million in planned share repurchases for the second half of 2026. Deposit growth outlook was lowered to $6 billion, reflecting a target to remove $3 billion in higher-cost deposits by year-end to improve net interest margin. Net interest income growth forecast was raised to 12%-14%, incorporating a projected 25-basis-point interest rate hike in September 2026. Management expects non-accrual loan balances to improve meaningfully in the second half of 2026 as four remaining targeted credits reach resolution. Mortgage banking revenue is expected to remain flat through Q3 and Q4 due to headwinds from higher rates and geopolitical uncertainty. The bank is preparing for 'Category IV' regulatory status as it approaches the $100 billion asset milestone, having already absorbed much of the associated compliance expense. A new mortgage hedging program involving selling covered call options on mortgage bonds contributed $6 million in Q2, with further gains already realized in July. The allowance for credit losses (ACL) is expected to rise incrementally as the portfolio remixes toward C&I loans, which carry higher reserve requirements than residential mortgages. Management flagged that while deposit costs are being optimized, there is a corresponding decline in interest income as those funds are no longer deployed into investments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Ken Vecchione stated the bank is not being rewarded by the market for 'excess growth' and believes the current share price trades at a meaningful discount to intrinsic value. Even with reduced targets, the bank expects to maintain the highest organic loan growth rate among its $50 billion to $300 billion asset peer group. Management is 'finessing' the exit of high-cost deposits by helping clients transition to other banks to preserve long-term service and lending relationships. Newer deposit channels like Business Escrow Services are growing 2.5 times faster than the rest of the balance sheet at significantly lower funding costs. Two of six identified problem loans were resolved in Q2; a third is expected to close within 10 days of the call, with the remainder targeted for the second half of 2026. Management expressed confidence that charge-off rates peaked in the first half of the year and will trend downward through year-end. The bank intends to maintain a 11% CET1 ratio to support its investment-grade rating, which is critical for attracting low-cost institutional deposits. Anticipated Basel III rule finalization may unlock approximately 81 basis points of incremental CET1, which could be used for further buybacks in 2027.

Interested in Western Alliance Bancorporation? Here are five stocks we like better. Strong Q2 results were driven by commercial loan growth, with held-for-investment loans up $1.8 billion and more than 80% of the increase coming from C&I lending. Management said demand remains healthy, though it trimmed full-year loan growth guidance to $5 billion as it shifts capital toward buybacks. Net interest income improved while margins held steady, as NII rose 4% sequentially to $797 million and the net interest margin was nearly flat at 3.53%. Lower funding costs and deposit optimization helped offset some pressure from the portfolio mix. The bank is prioritizing capital returns and lower-cost funding, planning $150 million in share repurchases in the second half of 2026 and reducing higher-cost deposits by roughly $3 billion for the year. Western Alliance also raised its 2026 NII outlook but lowered non-interest income and deposit growth guidance due to mortgage headwinds and funding changes. 3 Regional Bank Stocks That Crushed Q3 Earnings Western Alliance Bancorporation (NYSE:WAL) reported stronger second-quarter 2026 earnings, with management pointing to commercial loan growth, higher net interest income and stable credit trends while outlining a shift toward greater share repurchases and deposit cost optimization. Chairman, President and Chief Executive Officer Ken Vecchione said the quarter reflected “broad-based C&I-driven loan growth, strong net interest income, PP&R expansion, stable net interest margin, and continued balance sheet strength.” He said the company has begun executing several initiatives discussed at its May Investor Day, including reducing higher-cost deposits and expanding its share repurchase program. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Banking and trucking: Is the economy rolling toward troubles? Western Alliance is approaching the $100 billion asset threshold, with total assets remaining just below $99 billion at quarter-end. Vecchione said the bank is entering its next phase “from a position of strength,” citing growth, improving profitability and greater capital returns. Held-for-investment loans increased by $1.8 billion during the quarter, with more than 80% of the growth coming from commercial and industrial categories, according to Chief Financial Officer Vishal Idnani. Average HFI loan growth was $1.1 billion, contributing to average earning asset growth of $2.7 billion. → 3 Photonics Companies Making Quantum Tech Possible PacWest, First Horizon Shares Plummet On Continued Bank Worries Idnani said commercial banking grew by $950 million, led by specialty commercial banking verticals and Hotel Franchise Finance within commercial real estate. C&I loans now account for nearly 49% of the HFI portfolio, while CRE excluding construction has declined to 19.5% of the portfolio. Management said the company continues to see a strong loan origination pipeline, but it revised its full-year loan growth outlook to $5 billion from a higher prior expectation. Vecchione said the reduction reflects a capital allocation decision rather than a lack of demand, allowing the bank to direct more capital toward share repurchases while still producing growth expected to rank near the top of its peer group. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Net interest income rose to $797 million, up 4% from the prior quarter and 14% from a year earlier. Idnani attributed the increase primarily to earning asset growth, including loan growth and higher average securities balances. The net interest margin was essentially stable, declining one basis point from the prior quarter to 3.53%. Idnani said lower funding costs helped offset the modest impact of remixing loans toward C&I from CRE and slightly lower average earning asset yields. Western Alliance’s securities yield increased five basis points to 4.64%, while HFI loan yields declined three basis points to 5.82%. Interest-bearing deposit costs declined one basis point to 2.74%, and overall liability funding costs fell three basis points to 1.96%. Management said deposit optimization efforts should continue to lower interest expense and deposit costs. Vecchione said the bank reduced higher-cost deposits by more than $1 billion late in the second quarter and another $1 billion in the first few weeks of the third quarter. Total deposits ended the quarter at $81.9 billion, up $10.8 billion from a year earlier but down $849 million from the prior quarter. Idnani said the linked-quarter decline reflected the intentional reduction of about $1.2 billion in higher-cost deposits. Vecchione said Western Alliance expects to transition roughly $3 billion of higher-cost deposits off the balance sheet for the year. He said the bank is taking a “finesse” approach with clients, helping them transition certain balances while maintaining broader relationships that may include loans, operating accounts and treasury management services. Management lowered its full-year deposit growth outlook to $6 billion, citing reduced funding needs and continued efforts to remix the deposit base. The company expects total deposits to grow by about $1 billion in the third quarter despite additional higher-cost deposit reductions, with fourth-quarter deposits expected to be roughly flat. Executives highlighted lower-cost deposit channels such as HOA, Business Escrow Services, Corporate Trust, Juris Banking and digital assets as areas expected to grow faster than traditional deposit channels. Non-interest income was $199 million, essentially unchanged from the first quarter when excluding $50.5 million of securities gains recorded in that period. Year-over-year, non-interest income increased by about $51 million, or 34%, supported by commercial banking, treasury management and foreign exchange offerings. Mortgage banking revenue improved from the prior quarter and from a year earlier, but management cited higher rates and tighter spreads as headwinds. Loan production and lock commitment volume were both up double-digit percentages from the prior quarter and year earlier, while the gain-on-sale margin compressed eight basis points from the first quarter to 29 basis points. Idnani said servicing revenue rebounded to $31 million, mainly because of slower prepayment speeds in a higher-rate environment. He also said Western Alliance generated $6 million in gains from selling covered call options on mortgage bonds as a hedge against mortgage market volatility, with an additional $3 million of income realized in July. The company reduced its full-year non-interest income growth outlook to 13% to 17%, down from 20% to 25%. Vecchione said mortgage banking revenue is expected to remain in line with second-quarter levels in the third and fourth quarters, citing geopolitical conditions and higher Treasury and mortgage rates. Western Alliance reported provision expense of $80 million, which Idnani said replenished net charge-offs and supported loan growth, primarily in C&I. Net charge-offs declined to 37 basis points. The company reaffirmed its core net charge-off guidance of 25 to 35 basis points for 2026. Special mention loans declined by $87 million to $316 million, while classified accruing loans fell by $15 million to $440 million. Non-accrual loans increased by $70 million, but management said nearly all of the increase came from a previously disclosed loan that is current on contractual payments. Vecchione said two of six non-accrual loans discussed at Investor Day have been resolved, with the remaining four expected to be addressed in the second half of 2026. Chief Credit Officer Lynne Herndon said management has “high confidence” in those asset resolutions. The allowance for loan losses increased to $487 million, or 80 basis points of funded HFI loans, while the allowance for credit losses rose to 89 basis points. Idnani said the reserve ratio is expected to move higher incrementally as the loan portfolio continues to remix toward C&I. Capital levels remained a central part of the company’s updated outlook. Western Alliance maintained its common equity tier 1 ratio at its targeted 11% level, and its tangible common equity to tangible assets ratio rose to 7%. Tangible book value per share increased $2.10 from the end of the first quarter to $63.24, up 13% year over year. Vecchione said the company plans $150 million of share repurchases in the second half of 2026. He said Western Alliance’s shares trade at a “meaningful discount” to management’s view of intrinsic value and that buybacks represent an attractive use of capital. In response to analyst questions, he said the bank will continue evaluating the balance between loan growth, risk-adjusted returns, maintaining its 11% CET1 target and repurchasing stock. Western Alliance now expects 2026 net interest income growth of 12% to 14%, compared with its prior forecast of 11% to 14%. The outlook includes an assumed 25-basis-point rate hike in September, which was not included in previous guidance. The company kept its deposit cost guidance at $650 million to $700 million and operating expense outlook at $1.6 billion to $1.65 billion. Management also said it expects a full-year effective tax rate of 19%. Western Alliance Bancorporation is a bank holding company headquartered in Phoenix, Arizona. Through its principal subsidiary, Western Alliance Bank, the company provides a range of banking services to commercial clients, entrepreneurs and real estate developers. As one of the largest regional banks in the western United States, it focuses on relationship-driven banking solutions tailored to niche industries and growing businesses. The company's core offerings include deposit products, treasury management and a variety of lending services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Western Alliance Bancorporation Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Net Interest Income: $797 million, increased 4% from the prior quarter and 14% year over year. Average Earning Asset Growth: $2.7 billion, including $1.1 billion of average HFI loan growth. Noninterest Income: $199 million, consistent with adjusted Q1 fee income. Pre-Provision Net Revenue (PPNR): $412 million, increased 25% year over year. Net Charge-Offs: Declined to 37 basis points. Earnings Per Share (EPS): $2.36, 6% above adjusted EPS of $2.22 in Q1, 14% higher year over year. Total Deposits: $81.9 billion, declined by $849 million from the prior quarter. Tangible Book Value Per Share: $63.24, increased $2.10 from the end of Q1, 13% over the prior year. Loan Growth: Quarterly HFI loan growth of $1.8 billion, primarily from C&I growth. Net Interest Margin: Relatively stable, compressing 1 basis point from Q1 to 3.53%. Allowance for Loan Losses: $487 million, 80 basis points of funded HFI loans. Common Equity Tier 1 (CET1) Ratio: Maintained at 11%. Warning! GuruFocus has detected 2 Warning Sign with WAL. Is WAL fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Western Alliance Bancorp (NYSE:WAL) reported strong second quarter performance with broad-based C&I driven loan growth and stable net interest margin. The company executed key strategic initiatives, including deposit optimization efforts and a more robust share repurchase program. Net interest income increased by 16% on a linked quarter annualized basis, driven by strong average earning asset growth. Asset quality remains stable with reductions in criticized assets and declining net charge-offs. Western Alliance Bancorp (NYSE:WAL) is entering its next phase from a position of strength, combining industry-leading growth, improving profitability, and increased capital returns. Higher mortgage rates and tighter spreads are creating headwinds for mortgage banking revenue. Noninterest income growth was limited, with quarterly noninterest income remaining consistent with adjusted Q1 fee income. The company revised its loan growth outlook downward to prioritize share repurchases, reflecting a deliberate capital allocation decision. Deposit costs rose due to significant back-weighted mortgage warehouse deposit growth in Q1. The geopolitical environment and higher treasury note and mortgage rates are expected to hold mortgage banking revenue flat in the second half of 2026. Q: Could you speak more about the decision to pivot from strong balance sheet growth towards buybacks? Is it due to reduced opportunities for loan deposit originations or because you think your stock is undervalued? A: The pivot reflects a deliberate capital allocation decision. We see an opportunity to enhance shareholder value by reallocating excess capital towards share repurchases, given the meaningful discount between current share price and intrinsic value. Even with reduced loan growth, Western Alliance would still post the highest organic year-over-year percentage loan growth among peers. We are not being rewarded for excess growth, so we are focusing on maximizing value through capital returns. Q: On ECR deposit costs, you have a hike now in the outlook. Is the ability to keep that range unchanged due to the benefits from optimization done in June and July? A: Yes, we transitioned $1.2 billion of higher-priced deposits in Q2 and $1 billion in Q3, with plans for another $750 million by the end of Q3. We aim to grow total deposits by about $1 billion in Q3. Deposit costs are expected to decline in Q3 and Q4 due to the optimization strategy, despite the impact of a 25 basis point rate hike. Q: When you look at deposit growth, is it mostly in interest-bearing products, and if so, what are you bringing that on at? A: We are focusing on deposit channels like HOA, business escrow services, and insurance banking, which have lower costs than traditional channels. These initiatives are expected to grow faster than traditional channels, helping to reduce overall deposit costs. Q: Are there other parts of the balance sheet or company you would optimize to improve profitability, such as asset sales or adjusting headcount? A: The balance sheet will continue to grow naturally given opportunities. We are focusing on relationship banking and deemphasizing non-relationship lending. We have absorbed expenses to prepare for crossing the $100 billion threshold while maintaining or improving our efficiency ratio. Q: Can you provide more details on the expected decline in nonperforming loans in the second half of 2026? A: We have six credits to resolve, with two already resolved and a third expected to close soon. We expect the remaining to be resolved by the end of Q4. The trend will be a decline in nonperforming loans, and we anticipate a gentle decline in charge-off rates in Q3 and Q4. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

PHOENIX, July 21, 2026--(BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL): SECOND QUARTER 2026 FINANCIAL RESULTS SECOND QUARTER 2026 FINANCIAL RESULTS Income Statement Net interest income totaled $796.9 million in the second quarter 2026, an increase of $30.6 million, or 4.0%, from $766.3 million in the first quarter 2026, and an increase of $99.3 million, or 14.2%, compared to the second quarter 2025. The increase in net interest income from the first quarter 2026 was primarily due to an increase in average interest bearing assets, which were partially offset by an increase in average interest bearing liabilities and declining yields on interest earning assets. The increase in net interest income from the second quarter 2025 was driven by an increase in average interest earning asset balances, partially offset by declining yields on these assets. The Company recorded a provision for credit losses of $80.4 million in the second quarter 2026, a decrease of $132.8 million from $213.2 million in the first quarter 2026, and an increase of $40.5 million from $39.9 million in the second quarter 2025. The decrease from the first quarter 2026 was primarily driven by lower charge-offs, as the first quarter 2026 provision for credit losses included a $126.4 million charge-off of the remaining LAM loan balance. The provision for credit losses during the second quarter 2026 was primarily driven by net charge-offs totaling $55.0 million and loan growth, which increased the total allowance for credit losses to funded HFI loans ratio from 87 to 89 basis points. The Company’s net interest margin was 3.53% in the second quarter 2026, a decrease from 3.54% in the first quarter 2026, and flat from 3.53% in the second quarter 2025. Net interest margin decreased slightly from the first quarter 2026 due to an increase in average interest bearing liabilities and declining yields on interest earning assets, partially offset by an increase in average interest earning assets. Net interest margin was flat from the second quarter 2025 as a reduction in interest bearing liability costs was offset by declining yields on interest earning assets. Non-interest income was $198.8 million for the second quarter 2026, compared to $252.6 million for the first quarter 2026, and $148.3 million for the second quarter 2025. The decrease in non-interest income of $53.8 million from the first quarter 2026 was primarily due to decreases in gain on sales of investment securities of $47.5 million, service charges and fees of $25.4 million, and net gain on mortgage loan origination and sale activities of $19.3 million, partially offset by an increase in net loan servicing revenue of $32.6 million. The increase in non-interest income of $50.5 million from the second quarter 2025 was primarily driven by increases in service charges and fees, net gain on mortgage loan origination and sale activities, fair value gain adjustments, and income from equity investments. These increases were partially offset by a reduction on gain on sales of investment securities and a decrease in net loan servicing revenue. Net revenue totaled $995.7 million for the second quarter 2026, a decrease of $23.2 million, or 2.3%, compared to $1.0 billion for the first quarter 2026, and an increase of $149.8 million, or 17.7%, compared to $845.9 million for the second quarter 2025. Excluding $50.5 million of first quarter 2026 security sale gains, second quarter 2026 net revenue increased $27.3 million from adjusted2 net revenue of $968.4 million. Non-interest expense was $583.3 million for the second quarter 2026, compared to $574.4 million for the first quarter 2026, and $514.7 million for the second quarter 2025. The increase in non-interest expense of $8.9 million from the first quarter 2026 was primarily due to an increase of $15.9 million in deposit costs driven by increased average mortgage warehouse related balances, partially offset by a decrease of $13.1 million in other non-interest expense. The decrease in other non-interest expense was primarily driven by decreased costs associated with Juris banking, which had a comparable decrease in service charges and fees within non-interest income. The increase in non-interest expense of $68.6 million from the second quarter 2025 was primarily attributable to increased deposit costs of $31.8 million and increased salaries and employee benefits of $24.4 million. These increases were partially offset by decreased insurance costs of $9.1 million. The Company's efficiency ratio was 58.0% for the second quarter 2026, compared to 55.8% for the first quarter 2026, and 60.1% for the second quarter 2025. The Company’s efficiency ratio, adjusted for deposit costs1, was 48.9% for the second quarter 2026, compared to 47.5% in the first quarter 2026, and 51.8% for the second quarter 2025. Income tax expense was $63.2 million for the second quarter 2026, compared to $42.1 million for the first quarter 2026, and $53.5 million for the second quarter 2025. The increase in income tax expense from the first quarter 2026 was primarily driven by an increase in pretax income and decreases in investment tax credits and stock compensation benefits. The increase in income tax expense from the second quarter 2025 was primarily driven by an increase in pretax income and a decrease in investment tax credits. Net income was $268.8 million for the second quarter 2026, an increase of $79.6 million from $189.2 million (or an increase of $17.5 million from $251.3 million, as adjusted2) for the first quarter 2026, and an increase of $31.0 million from $237.8 million for the second quarter 2025. Earnings per share totaled $2.36 for the second quarter 2026, compared to $1.65 (or $2.22, as adjusted2) for the first quarter 2026, and $2.07 for the second quarter 2025. The Company believes its pre-provision net revenue1 ("PPNR"), which it defines as net revenue less non-interest expense, is a key metric for assessing the Company’s earnings power. For the second quarter 2026, the Company’s PPNR1 was $412.4 million, down $32.1 million from $444.5 million (or an increase of $18.4 million from $394.0 million, as adjusted2) in the first quarter 2026, and up $81.2 million from $331.2 million in the second quarter 2025. Balance Sheet HFI loans, net of deferred fees, totaled $60.9 billion at June 30, 2026, compared to $59.1 billion at March 31, 2026, and $55.9 billion at June 30, 2025. The increase in HFI loans of $1.8 billion from the prior quarter was primarily driven by increases of $1.5 billion and $283 million in commercial and industrial loans and residential real estate loans, respectively. The increase in HFI loans of $5.0 billion from June 30, 2025 was primarily driven by increases of $4.8 billion and $583 million in commercial and industrial and residential real estate loans, respectively, partially offset by decreases of $285 million and $171 million in construction and land development and commercial real estate owner occupied loans, respectively. HFS loans totaled $4.3 billion at June 30, 2026, $3.9 billion at March 31, 2026, and $3.0 billion at June 30, 2025. The increase in HFS loans of $411 million from March 31, 2026 was primarily driven by increases of $322 million and $138 million in agency-conforming and government-insured or guaranteed mortgage loans, respectively. The increase in HFS loans of $1.3 billion from June 30, 2025 was primarily driven by increases of $670 million and $514 million in government-insured or guaranteed and agency-conforming mortgage loans, respectively. The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.80% at June 30, 2026, 0.78% at March 31, 2026, and 0.71% at June 30, 2025. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.89% at June 30, 2026, 0.87% at March 31, 2026, and 0.78% at June 30, 2025. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $7.8 billion, $7.9 billion, and $8.4 billion as of June 30, 2026, March 31, 2026, and June 30, 2025, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $10.2 million as of June 30, 2026, $11.2 million as of March 31, 2026, and $11.8 million as of June 30, 2025. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 1.01% at June 30, 2026, 1.00% at March 31, 2026, and 0.91% at June 30, 2025. Deposits totaled $81.9 billion at June 30, 2026, a decrease of $849 million from March 31, 2026, and an increase of $10.8 billion from $71.1 billion at June 30, 2025. The decline in deposits from the prior quarter reflected the Company's deposit optimization strategy to reduce higher-cost balances, which drove decreases of $528 million, $258 million, and $126 million from savings and money market accounts, non-interest bearing deposits, and interest-bearing demand deposits, respectively. From June 30, 2025, non-interest bearing deposits, interest-bearing demand deposits, and savings and money market accounts increased $4.8 billion, $3.6 billion, and $2.7 billion, respectively. Non-interest bearing deposits totaled $27.8 billion at June 30, 2026, compared to $28.1 billion at March 31, 2026, and $23.0 billion at June 30, 2025. The table below shows the Company's deposit types as a percentage of total deposits: The Company’s ratio of HFI loans to deposits was 74.4% at June 30, 2026, compared to 71.5% at March 31, 2026, and 78.7% at June 30, 2025. Borrowings totaled $6.2 billion at June 30, 2026, $5.6 billion at March 31, 2026, and $6.1 billion at June 30, 2025. Borrowings increased $626 million from March 31, 2026 driven by a $393 million increase in long-term borrowings and a $234 million increase in short-term borrowings. Borrowings increased $184 million from June 30, 2025, reflecting an increase in short-term borrowings of $1.6 billion, partially offset by a $1.4 billion decrease in long-term borrowings. Qualifying debt totaled $1.1 billion at June 30, 2026 and March 31, 2026, up from $678 million at June 30, 2025. The increase in qualifying debt from June 30, 2025 was primarily due to the issuance of $400 million of subordinated debt during the quarter ended December 31, 2025. Total equity was $8.1 billion at June 30, 2026, compared to $7.9 billion at March 31, 2026, and $7.4 billion at June 30, 2025. The increase in total equity from the prior quarter was primarily due to net income of $268.8 million, partially offset by cash dividends paid during the second quarter, comprised of $45.9 million, or $0.42 per common share, $3.2 million, or $0.27 per depositary share, and $7.1 million on preferred stock of the Company's REIT subsidiary. The increase in equity from June 30, 2025 was primarily driven by net income, partially offset by dividends to stockholders and share repurchases. The Company has repurchased 1.6 million shares for $120.4 million under the Company's $300 million share repurchase program since its inception in the third quarter 2025. The Company's common equity tier 1 capital ratio was 11.0% at June 30, 2026 and March 31, 2026, and 11.2% at June 30, 2025. At June 30, 2026, tangible common equity, net of tax1, was 7.0% of tangible assets1 and total capital was 14.1% of risk-weighted assets. The Company’s tangible book value per share1 was $63.24 at June 30, 2026, an increase of 3.4% from $61.14 at March 31, 2026, and an increase of 13.2% from $55.87 at June 30, 2025. The increase in tangible book value per share from June 30, 2025 was primarily attributable to net income. Total assets decreased $152 million, or 0.2%, to $98.7 billion at June 30, 2026 from $98.9 billion at March 31, 2026, and increased 13.8% from $86.7 billion at June 30, 2025. The decrease in total assets from March 31, 2026 was primarily driven by decreased cash, partially offset by increased HFI and HFS loans. The increase in total assets from June 30, 2025 was primarily driven by increased HFI and HFS loans, cash, and investment securities. Asset Quality Provision for credit losses totaled $80.4 million for the second quarter 2026, compared to $213.2 million for the first quarter 2026, and $39.9 million for the second quarter 2025. Net loan charge-offs in the second quarter 2026 totaled $55.0 million, or 0.37% of average loans (annualized), compared to $208.5 million (or $56.0 million, as adjusted1), or 1.45% (or 0.39%, as adjusted1) in the first quarter 2026, and $29.6 million, or 0.22%, in the second quarter 2025. Nonaccrual loans increased $70 million to $562 million during the quarter and increased $135 million from June 30, 2025. Loans past due 90 days and still accruing interest totaled $55 million at June 30, 2026, $56 million at March 31, 2026, and $51 million at June 30, 2025 (excluding government guaranteed loans of $248 million, $288 million, and $326 million, respectively). Loans past due 30-89 days and still accruing interest totaled $122 million at June 30, 2026, a decrease from $157 million at March 31, 2026, and a decrease from $175 million at June 30, 2025 (excluding government guaranteed loans of $102 million, $94 million, and $168 million, respectively). Criticized loans of $1.3 billion decreased $32 million during the quarter and decreased $168 million from June 30, 2025. Repossessed assets totaled $126 million at June 30, 2026, compared to $123 million at March 31, 2026, and $218 million at June 30, 2025. Classified assets of $1.1 billion at June 30, 2026 increased $58 million from March 31, 2026, and decreased $133 million from June 30, 2025. The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 13.3% at June 30, 2026, compared to 13.0% at March 31, 2026, and 16.4% at June 30, 2025. Conference Call and Webcast Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2026 financial results at 12:00 p.m. ET on Wednesday, July 22, 2026. Participants may access the call by dialing 1-833-461-5787 and using access code 808307916 or via live audio webcast using the website link https://events.q4inc.com/attendee/808307916. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded, and the webcast replay will remain available for one year. Reclassifications Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported. Use of Non-GAAP Financial Information This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Cautionary Note Regarding Forward-Looking Statements This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, including our deposits and deposit optimization strategy, liquidity and funding, changes in economic conditions and related impacts on the Company's business, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; technological risks and developments and cyber threats, attacks or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; the outcome of legal proceedings, the amount of funds and/or collateral that may be available for repayment of such loans, and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loans; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise, except to the extent required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements. About Western Alliance Bancorporation Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With more than $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Midcap Banks list. For more information on offerings, subsidiaries and affiliates, visit www.westernalliancebank.com or follow Western Alliance Bank on LinkedIn. View source version on businesswire.com: https://www.businesswire.com/news/home/20260720876976/en/ Contacts Investors: Miles Pondelik, 602-346-7462Email: [email protected] Media: Stephanie Whitlow, 480-998-6547Email: [email protected]

Western Alliance (WAL) came out with quarterly earnings of $2.22 per share, missing the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $2.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -4.72%. A quarter ago, it was expected that this bank holding company would post earnings of $1.48 per share when it actually produced earnings of $2.22, delivering a surprise of +50%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Western Alliance, which belongs to the Zacks Banks - West industry, posted revenues of $1.01 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.28%. This compares to year-ago revenues of $856.1 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Western Alliance shares have lost about 3.7% since the beginning of the year versus the S&P 500's gain of 8.7%. While Western Alliance has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Western Alliance was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.67 on $1.02 billion in revenues for the coming quarter and $9.50 on $4.06 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - West is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Northrim BanCorp (NRIM), is yet to report results for the quarter ended June 2026. This holding company for Northrim Bank is expected to post quarterly earnings of $0.62 per share in its upcoming report, which represents a year-over-year change of +19.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Northrim BanCorp's revenues are expected to be $53.1 million, up 5.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Western Alliance Bancorporation (WAL) : Free Stock Analysis Report Northrim BanCorp Inc (NRIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Western Alliance Bancorporation (WAL) is set to report quarterly results this Tuesday after the bell. This event puts the bank’s expected 17.9% year-on-year revenue growth in clear focus for investors. See our latest analysis for Western Alliance Bancorporation. Western Alliance Bancorporation’s share price has moved to $82.30, with a 1 month share price return of 2.99% and a 3 month return of 5.74%. The 1 year total shareholder return of 4.94% contrasts with a 3 year total shareholder return of about 7.6x, while the 5 year total shareholder return is slightly negative. This suggests momentum has been rebuilding recently, but longer term holders have experienced mixed outcomes. If you are looking beyond Western Alliance Bancorporation ahead of earnings, this can be a useful moment to scan for other financials with resilient share price trends. To broaden your opportunity set, consider screening for 18 top founder-led companies Western Alliance Bancorporation appears to be a solid regional bank with growing revenue and a recovering share price. The real test for investors is whether that story is already fully reflected in today’s $82.30 valuation. Western Alliance Bancorporation’s most followed narrative points to a fair value of $88.93 compared with the recent $82.30 share price, framing a modest undervaluation built on detailed assumptions about growth, margins and risk. Read the complete narrative. Read the complete narrative. The fair value story for Western Alliance Bancorporation rests on a clear playbook. Revenue expanding at a steady clip. Margins edging higher. Earnings compounding from today’s base into the next few years. Curious which specific growth path and profit profile underpin that $88.93 figure, and how a lower future earnings multiple is still enough to support it. Result: Fair Value of $88.93 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Western Alliance Bancorporation’s heavy commercial real estate exposure and growing reliance on specialized lending could challenge the current fair value narrative if conditions turn less favorable. Find out about the key risks to this Western Alliance Bancorporation narrative. With Western Alliance Bancorporation showing both appealing elements and clear watchpoints, this is a good moment to move quickly and check the data for yourself. You can start with the 4 key rewards and 2 important warning signs. Do not stop with Western Alliance Bancorporation. Broaden your watchlist now so you are not looking back later wishing you had spotted the next opportunity earlier. Target potential mispricings by scanning companies that may be trading below their estimated worth using the 48 high quality undervalued stocks. Strengthen your focus on financial resilience by filtering for businesses highlighted in the solid balance sheet and fundamentals stocks screener (47 results). Hunt for underfollowed opportunities by reviewing the screener containing 20 high quality undiscovered gems before the crowd catches on. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Western Alliance Bancorporation recently reported quarterly results after the market close, following a prior period in which it exceeded revenue expectations but fell short on earnings per share, with analysts this time having expected solid year-on-year revenue growth. An interesting angle is that analysts largely reaffirmed their estimates in the weeks before the release, signaling steady confidence in the bank’s operational trajectory despite earlier earnings volatility. We’ll now examine how this anticipated revenue growth and analyst confidence ahead of earnings affects Western Alliance’s broader investment narrative. AI is about to change healthcare. These 39 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Western Alliance Bancorporation, you need to believe it can grow profitably in its core Western markets while managing credit and funding risks typical of regional banks. The latest earnings expectations of solid revenue growth, alongside steady analyst estimates, support that the near term catalyst remains operational execution, while the biggest immediate risk around credit quality and loan losses does not appear materially altered by this specific pre earnings setup. In this context, the recent disclosure of significantly higher net loan charge offs in Q1 2026 is especially relevant, as it directly touches on concerns about asset quality and commercial real estate exposure. How management frames these credit trends against the anticipated revenue growth will likely shape investor confidence in the bank’s ability to maintain earnings stability and support its dividend and buyback activities. Yet the higher loan charge offs and commercial real estate exposure are exactly the kind of information investors should be aware of before they... Read the full narrative on Western Alliance Bancorporation (it's free!) Western Alliance Bancorporation's narrative projects $5.0 billion revenue and $1.5 billion earnings by 2029. This requires 13.7% yearly revenue growth and a roughly $560.8 million earnings increase from $939.2 million today. Uncover how Western Alliance Bancorporation's forecasts yield a $88.93 fair value, a 8% upside to its current price. Three fair value estimates from the Simply Wall St Community span roughly US$88.93 to US$192.09, showing how far apart individual views on Western Alliance can be. When you set these against recent revenue growth expectations and the bank’s rising loan charge offs, it underlines why many readers may want to compare several viewpoints before forming a view on the company’s prospects. Explore 3 other fair value estimates on Western Alliance Bancorporation - why the stock might be worth over 2x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Western Alliance Bancorporation research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision. Our free Western Alliance Bancorporation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Western Alliance Bancorporation's overall financial health at a glance. Every day counts. These free picks are already gaining attention. See them before the crowd does: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Capitalize on the AI infrastructure supercycle with our selection of the 54 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WAL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]