Western Alliance earns $2.45 a share as deposit costs fall and nonaccrual loans shrink

Western Alliance Bancorporation grew profit in the third quarter while cleaning up its loan book. The Phoenix-based bank said Monday net income rose to $277.2 million, or $2.45 a diluted share, from $260.5 million, or $2.28, a year earlier.

Earnings per share also rose from $2.36 in the second quarter, according to its earnings release filed with an 8-K. Net revenue increased 8.1% from a year ago to about $1.0 billion.

Margin and deposits

Net interest income climbed 7.6% from a year earlier to $807.6 million, and the net interest margin widened 4 basis points from the second quarter to 3.57%.

Chairman, President and CEO Kenneth Vecchione said "deposit optimization actions" totaling $4.5 billion over two quarters cut certain deposit costs by $14 million, or 8%, from the prior quarter. Strong commercial deposit growth kept total deposits steady at $81.8 billion. Loans held for investment grew 8.7% from a year earlier to $61.5 billion.

Credit

Nonaccrual loans fell by $77 million to 0.79% of funded loans held for investment, from 0.92%. Net charge-offs eased to an annualized 0.30% from 0.37% in the second quarter, which Vecchione said is the midpoint of the bank's 2026 guidance range. The allowance for credit losses rose to 0.93% of funded loans.

Capital return

Western Alliance repurchased 1.15 million shares for $92.1 million, at an average price of $79.78, and paid a common dividend of $0.42 a share. Tangible book value per share was $62.22, down 1.6% from the second quarter but up 6.3% from a year earlier. The CET1 ratio was 10.9%.

By the numbers

• Diluted EPS: $2.45, vs. $2.28 a year ago
• Net income: $277.2 million
• Net interest income: $807.6 million, up 7.6%
• Net interest margin: 3.57%
• Nonaccrual loans: 0.79% of funded loans
• Buybacks: $92.1 million

Sources

1. Western Alliance Bancorporation, Form 8-K with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 19, 2026, accession 0001628280-26-066286

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