WAL Western Alliance Bancorporation (WAL) Q2 FY26 earnings call
Western Alliance Bancorporation delivered strong Q2 FY26 results, marked by robust C&I-driven loan growth and significant pre-provision net revenue expansion. The company initiated a strategic pivot towards enhanced shareholder returns through increased share repurchases, funded by a moderated loan growth outlook, while continuing deposit optimization efforts to improve funding costs. Management remains confident in achieving medium-term profitability targets and maintaining a resilient balance sheet.
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WAL operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | This call Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Net interest margin | 3.54%In the first quarter, interest-bearing deposit costs declined 21 basis points, contributing to a 3 basis point quarterly increase in net interest margin to 3.54%.Source: earnings call transcript | 3.53%net interest margin was relatively stable, compressing 1 basis point from Q1 to 3.53% as the interest cost of earning assets declined 2 basis points, while the earning asset yield declined 3 basis points.Source: earnings call transcript | — | 0 pt |
| Common equity tier 1 ratio (CET1) | 11%This supported a stable CET1 ratio of 11% and ACL ratio of 87 basis points while compounding tangible book value per share, 13% year-over-year.Source: earnings call transcript | — | 10.9%Our CET1 ratio decreased 10 basis points from Q2 to 10.9%, reflecting loan growth and share repurchases while remaining above well-capitalized levels.Source: earnings call transcript | — |
| Return on tangible common equity (ROTCE) | — | 15.4%But the benefit here -- well, that will be to the benefit of a higher PPNR which will give us all the flexibility that we want going forward to our long-term goals of getting to a return on average tangible common equity of 16% to 17%, which, by the way, we were at 15.4% for this quarter.Source: earnings call transcript | 15.5%ROATCE increased 20 basis points from Q2 to 15.5%.Source: earnings call transcript | +0.1 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.