Western Alliance Bancorp' Q1 profit falls, impacted by charge-offs

Western Alliance Bancorporation

21/04/2026 21:33

Overview

US business bank's Q1 net income and EPS declined yr/yr, impacted by fraud-related charge-offs

Net interest income grew 17.8% yr/yr, with net interest margin expanding to 3.54%

Company repurchased $50 mln in shares during the quarter

Outlook

Company did not provide specific guidance or forecasts for the current or future periods in press release

Result Drivers

FRAUD-RELATED CHARGE-OFFS - Q1 results were impacted by increased provision for credit losses, mainly due to charge-offs on the Leucadia Asset Management and Cantor Group loans

DEPOSIT AND LOAN GROWTH - Quarterly deposit growth of $5.6 bln and loan growth of $465 mln supported core earnings momentum

NET INTEREST MARGIN EXPANSION - Net interest margin rose to 3.54%, helped by lower deposit and borrowing costs, which sustained net interest income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Interest Income
$766.30 mln
Q1 Net Interest Margin
3.54%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Western Alliance Bancorp is $90.00, about 13.3% above its April 20 closing price of $79.45

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)