Western Alliance beats Q3 estimates on higher revenue

Investing.com -- Western Alliance Bancorporation (NYSE: WAL) reported third quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $2.45 and revenue of $1.01 billion, beating consensus estimates of $2.43 and $988.23 million, respectively. Revenue increased 8.1% YoY from $938.2 million in the third quarter of 2025.

Net income totaled $277.2 million, up 6.4% from $260.5 million in the same quarter last year. The company's net interest margin expanded to 3.57%, up from 3.53% in both the prior quarter and the year-ago period. Net interest income rose 7.6% YoY to $807.6 million, driven by higher average interest earning asset balances and lower rates on interest bearing liabilities.

Shares traded flat in after-hours trading Monday.

"Western Alliance's third quarter results featured enhanced profitability, lower deposit costs, improved asset quality and stronger reserve coverage, as well as accelerated share repurchase activity," said Kenneth A. Vecchione, Chairman, President and Chief Executive Officer. "Strong execution generated pre-provision net revenue of $419 million, up $25 million, or 6.4%, year-over-year and earnings per share of $2.45, up $0.17, or 7.5%."

Asset quality showed notable improvement, with nonaccrual loans declining $77 million, or approximately 14%, to 0.79% of funded held-for-investment loans. The allowance for credit losses to funded HFI loans increased to 0.93% from 0.89% in the prior quarter. Net charge-offs declined to 0.30% of average loans on an annualized basis from 0.37% in the second quarter.

Total deposits remained stable at $81.8 billion, up 5.8% YoY, while HFI loans grew to $61.5 billion, an increase of 8.7% from the prior year. The company repurchased $92.1 million of shares, or 1.15 million shares, at an average price of $79.78 per share during the quarter.

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