# Western Alliance Bancorporation (WAL) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/WAL/thesis · /stocks/WAL/memo

## Financial Snapshot

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source: coverage-next-full | ticker: WAL | step: "04" | created: 2026-05-29
---

### WAL — Step 04: Financial Snapshot (FY2021–FY2025)

#### Income Statement Summary (USD millions)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|--------|--------|
| Net Interest Income | $1,549 | $2,216 | $2,339 | $2,619 | $2,865 |
| Non-Interest Income | $404 | $325 | $281 | $543 | $678 |
| **Total Revenue** | **$1,953** | **$2,541** | **$2,620** | **$3,162** | **$3,543** |
| Non-Interest Expense | $851 | $1,157 | $1,623 | $2,025 | $2,112 |
| Pre-Provision Net Revenue | ~$1,102 | ~$1,384 | ~$997 | ~$1,137 | ~$1,431 |
| Provision for Credit Losses | ~$21 | ~$59 | ~$200E | ~$120E | ~$110E |
| Pre-Tax Income | ~$1,081 | ~$1,325 | ~$797 | ~$1,017 | ~$1,321 |
| Net Income | ~$588E | ~$803E | ~$745E | ~$770E | $969 |
| **EPS (Diluted)** | **$8.67** | **$9.70** | **$6.54** | **$7.09** | **$8.73** |
| Revenue Growth YoY | +76.8% | +30.1% | +3.1% | +20.7% | +12.0% |
| NII Growth YoY | +57.5% | +43.1% | +5.6% | +11.9% | +9.4% |

*E = estimated from EPS × diluted share count and trend analysis; FY2025 net income confirmed at $969M from 10-K*
*FY2021 includes partial-year AmeriHome (acquired ~April 2021)*

#### Key Profitability Context

##### EPS Trajectory
| FY | EPS (Diluted) | YoY Change | Context |
|----|-------------|-----------|---------|
| FY2021 | $8.67 | — | AmeriHome first full contribution |
| FY2022 | $9.70 | +11.9% | Rate cycle benefit; record NIM expansion |
| FY2023 | $6.54 | -32.6% | SVB crisis impact; deposit repricing; elevated costs |
| FY2024 | $7.09 | +8.4% | Recovery; deposit stabilization |
| FY2025 | $8.73 | +23.1% | Record year; NII + fee income expansion |

**The 2023 EPS collapse** deserves emphasis. WAL's EPS fell 32.6% in 2023 — not primarily due to credit losses (credit remained manageable), but because:
1. Deposit costs surged as WAL competed for deposits amid regional bank anxiety
2. Non-interest expenses jumped 40.3% (deposit insurance, litigation, compliance)
3. NII growth of only 5.6% failed to cover the cost surge

This is why WAL stock fell 60%+ in 2023 — the market priced an existential deposit run scenario that did not materialize. The subsequent recovery (EPS +8.4% in 2024, +23.1% in 2025) has largely vindicated the bull case.

#### Balance Sheet Summary (USD billions, year-end)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | Q1-2026 |
|--------|--------|--------|--------|--------|--------|---------|
| Total Assets | $56.0 | $67.7 | $70.9 | $80.9 | $92.8 | $98.9 |
| Gross Loans (HFI) | — | $51.9 | $50.3 | $53.7 | $58.7 | $59.1 |
| Total Deposits | $47.6 | $53.6 | $55.3 | $66.3 | $77.2 | $82.7 |
| Stockholders' Equity | — | $5.356 | $6.078 | $6.707 | $7.653 | — |
| Asset Growth YoY | — | +20.9% | +4.7% | +14.1% | +14.6% | — |
| Deposit Growth YoY | — | +12.6% | +3.2% | +19.9% | +16.4% | — |

**Note on 2023:** Loans actually declined (from $51.9B to $50.3B) and deposit growth was only 3.2% in FY2023 — a deliberate deleveraging in response to the banking crisis. Management chose to reduce balance sheet risk during peak crisis uncertainty. The acceleration in 2024–2025 reflects a return to offense.

#### Net Interest Margin (NIM)
| Period | NIM | Trend |
|--------|-----|-------|
| FY2022 Q2 | ~3.75% | Peak rate cycle NIM |
| FY2023 Q1 | ~3.30% | SVB crisis — deposit cost surge |
| FY2023 Q4 | ~3.25% | Trough NIM |
| FY2024 Q2 | ~3.35% | Recovery |
| FY2024 Q4 | ~3.45% | Continued improvement |
| FY2025 Q4 | 3.51% | NIM expansion |
| Q1-2026 | 3.54% | Further improvement |

WAL's NIM is above peer median (~3.1–3.2% for comparably-sized regional banks) — a key valuation premium driver.

#### Tangible Book Value Per Share (TBVPS)
| Year-End | Estimated TBVPS | Notes |
|----------|----------------|-------|
| FY2022 | ~$47.50 | Post-AOCI hit from rate rise |
| FY2023 | ~$53.50 | Recovery; capital generation |
| FY2024 | ~$59.50 | Capital accumulation |
| FY2025 | ~$67.50 | Estimated; equity $7.653B / ~110M shares; less intangibles |

*TBVPS estimated by adjusting stockholders' equity for goodwill and intangibles (primarily from Bridge Bank and AmeriHome acquisitions); exact intangibles not parsed from XBRL in this extract*

**Tangible book value CAGR (2022–2025 est.):** ~12–13% per year — consistent with ROTCE above cost of equity

#### The 2023 Banking Crisis: What Happened to WAL

##### Timeline
- **March 9–10, 2023:** SVB disclosed securities portfolio losses and attempted equity raise; depositors began withdrawing funds; SVB closed March 10
- **March 13, 2023:** WAL stock fell ~47% in two days as investors assumed all regional banks were similarly exposed
- **March 13–14, 2023:** WAL management held emergency investor conference calls; disclosed deposit composition (uninsured deposits ~65%, lower than SVB's 90%+); deposit outflows proved modest
- **March–April 2023:** Deposit stabilization confirmed; stock recovered from ~$25 to $45+ within weeks
- **Full-year 2023:** WAL stock ended down ~30% from Jan 1 levels — a significant underperformance of the KBW Regional Bank Index

##### Why WAL Survived When PACW and FRC Did Not
| Factor | WAL | PACW | FRC |
|--------|-----|------|-----|
| Uninsured deposit % | ~65% | ~70%+ | ~67% |
| Deposit concentration | Diversified NBLs | Tech/RE heavy | Wealth management/high-net-worth |
| Specialty deposit stickiness | HIGH (HOA/escrow) | LOWER | MEDIUM |
| Management credibility/communication | Strong | Weak | Weak |
| Loan book quality | Conservative LTVs | Mixed | High-quality (prime mortgages) |
| Business model viability | Yes | Questionable | Yes (absorbed by JPM) |

WAL's HOA deposits were critical: escrow deposits cannot easily be moved (legal/operational constraints), providing a stable floor that PACW's deposit mix lacked.

#### Capital Quality Indicators

##### Regulatory Capital (Estimated)
- CET1 ratio: ~10.5% (estimated; approaching $100B threshold triggers enhanced disclosure)
- Tier 1 leverage ratio: ~8.5% (estimated)
- Target: well-capitalized minimum (CET1 ≥6.5% well-capitalized; ≥8.0% most conservative regional peers)

##### Credit Loss History
| Year | Provision for Credit Losses | Net Charge-Offs | ACL/Loans |
|------|---------------------------|----------------|----------|
| FY2020 | $0.106B | Elevated (COVID) | ~1.4% |
| FY2021 | $0.021B | Minimal | ~1.0% |
| FY2022 | $0.059B | Minimal | ~0.9% |
| FY2023 | ~$0.200B (est.) | Rising (office CRE + macro) | ~1.1% |
| FY2024 | ~$0.120B (est.) | Normalizing | ~1.1% |
| FY2025 | ~$0.110B (est.) | Stable | ~1.0% |

Credit quality has been well-managed through the cycle. The 2023 provision increase was driven by CECL model updates and forward-looking macro reserves, not actual large charge-offs.

#### Shareholder Returns
- **Dividend:** WAL has paid a quarterly cash dividend consistently; maintained through the 2023 crisis (did not cut dividend, a key management confidence signal)
- **Buybacks:** Suspended during 2023 crisis uncertainty; resumed in 2024–2025 at modest levels
- **FY2025 dividend (estimated):** ~$1.56/share annually (~$0.39/quarter), yield ~2% at $75 stock price

#### Key Ratios Summary (FY2025)
| Metric | Value | Comment |
|--------|-------|---------|
| P/E (trailing) | ~8.9x | Based on ~$75 price, $8.73 EPS |
| P/TBV | ~1.1x | Based on ~$67.50 TBVPS |
| NIM | 3.51% | Above peer median |
| Efficiency Ratio | ~59.6% | Improving from 64% (2024) |
| ROATCE | ~13-14% | Above cost of equity |
| Loan-to-Deposit Ratio | ~76% | Conservative |
| CET1 (est.) | ~10.5% | Well-capitalized |
| Total Assets / Equity | ~12.1x | Leverage ratio in-line with banking norms |

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/WAL/fundamental

## Navigation

- Overview: /stocks/WAL
- Financials (this page): /stocks/WAL/financials
- Thesis: /stocks/WAL/thesis
- Investment Memo: /stocks/WAL/memo
- Coverage universe: /stocks