WESTERN ALLIANCE BANCORPORATION
For the period ended Mar 31, 2026. Filed May 11, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 11, 2026
WAL$75.55-0.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-03.
0001628280-25-047883
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001628280-26-033054
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 191 previous paragraphs and 192 current paragraphs.
95 unchanged; 67 reworded; 27 added; 27 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 38 previous and 40 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
Legal Disputes Related to Credit Facilities
Current report
Cantor Group V, LLC
Current report
Leucadia Asset Management LLC and Jefferies Financial Group
Current report
In March 2026, the Bank and its collateral agent filed a complaint in New York Supreme Court against Jefferies Financial Group, Leucadia Asset Management LLC, and affiliates (collectively, the "Defendants") alleging breach of contract and fraudulent inducement in connection with a trade finance loan extended by the Bank, seeking declaratory and injunctive relief for the recovery of funds, and other forms of relief and damages related to claims against the Defendants. This loan was collateralized by accounts receivable purchased from First Brands Group, which filed for bankruptcy in September 2025. The loan entered default status following the identification of servicing failures, including lapses in UCC filings, and in October 2025, the Bank entered into a forbearance agreement pursuant to which the Defendants agreed to cause full repayment of the loan by March 31, 2026. Defendants then made payments pursuant to the forbearance agreement from October 2025 to January 15, 2026, when the Bank received the most recent payment of $42.1 million. In late February 2026, after the Company was notified the remaining principal balance of the loan would not be repaid as agreed and with the Defendants' failure to make the payment due on February 27, 2026, the Company recorded a charge‑off of $126.4 million for the remaining loan balance.
Current report
•Net income available to common stockholders of $178.9 million (or $241.0 million, as adjusted 1), compared to $195.9 million for the first quarter 2025
Current report
•Diluted earnings per share of $1.65 (or $2.22, as adjusted 1), compared to $1.79 per share for the first quarter 2025
Current report
•PPNR of $444.5 million (or $394.0 million, as adjusted 1), up 60.1% from $277.6 million in the first quarter 20251
Current report
•Total loans HFI of $59.1 billion, up $465 million, or 0.8%, from December 31, 2025
Current report
•Total deposits of $82.7 billion, up $5.6 billion, or 7.2%, from December 31, 2025
Current report
•Total equity of $7.9 billion, a decrease of $38 million, or 0.5%, from December 31, 2025
Current report
•Net interest margin of 3.54%, increased from 3.47% in the first quarter 2025
Current report
•Efficiency ratio 1 of 55.8% in the first quarter 2026, compared to 63.5% in the first quarter 2025
Current report
•Efficiency ratio, adjusted for deposit costs 1 of 47.5%, compared to 55.8% in the first quarter 2025
Current report
The adjusted non-GAAP revenue, earnings and return metrics presented below for the three months ended March 31, 2026 exclude the impact to provision for credit losses of charging off the remaining balance of the Leucadia Asset Management LLC loan as well as gains from sales of investment securities that were executed as part of the Company's mitigation strategy, as applicable. In addition, net charge-offs for the three months ended March 31, 2026 have been adjusted to exclude the impact of fraud related charge-offs associated with the Leucadia Asset Management LLC and Cantor Group V, LLC loans.
Current report
Net Revenue and Pre-Provision Net Revenue, As Adjusted
Current report
Earnings per Share, As Adjusted
Current report
Return on Average Assets, As Adjusted
Current report
Net Charge-Offs and Net Charge-Offs to Average Loans, As Adjusted
Current report
(2)Interest income includes a reduction for earnings credits totaling $48.7 million and $58.1 million for the three months ended March 31, 2026 and 2025, respectively.
Current report
(4)Includes nonaccrual loans.
Current report
For the three months ended March 31, 2026, interest expense totaled $421.9 million, a decrease of $23.1 million, or 5.2%, compared to $445.0 million for the three months ended March 31, 2025. The decline was driven by reductions in interest expense on long-term debt and deposits of $18.0 million and $17.6 million, respectively. The decrease in interest expense on long-term debt resulted from a $1.3 billion reduction in the average balance of long-term debt, while lower rates led to the decrease in interest expense on deposits. These decreases were partially offset by an increase in interest expense on short-term borrowings of $8.7 million, resulting from a higher average balance of $1.2 billion.
Current report
Total non-interest income for the three months ended March 31, 2026 increased by $125.2 million compared to the same period in 2025. This growth was primarily attributable to service charges and fees, gain on sales of investment securities, and net gain on mortgage loan origination and sales activities. Service charges and fees rose by $51.3 million, reflecting higher commercial banking, disbursements and unused commitment fees. In addition, gain on sales of investment securities increased by $48.4 million as management executed a series of security sales during the quarter. Net gain on mortgage loan origination and sale activities was higher by $23.2 million, which was offset by a similar decrease in net loan servicing revenue of $23.1 million.
Current report
The decrease in total debt securities of $46 million from December 31, 2025 was primarily driven by net sales of U.S. Treasury securities and commercial MBS during the three months ended March 31, 2026, partially offset by net purchases of CLOs and Residential MBS issued by GSEs and GNMA, as the Company sold securities to secure gains.
Current report
In addition, certain customers with non-interest-bearing accounts receive earnings credits that can be used to offset applicable bank charges, and in certain cases, loan interest. The Company also pays referral fees for certain interest bearing or non-interest bearing deposits that are referred to the Bank. Deposits for which the Company provides account holders with excess earnings credits and referral fees totaled $30.2 billion and $25.1 billion at March 31, 2026 and December 31, 2025, respectively. The below table presents the income statement classification for total earnings credit and referral costs incurred on these deposits:
Current report
(1) Earnings credits recorded as a reduction to Interest income and Service charges and fees.
Current report
(2) Deposit costs also included $6.0 million and $6.9 million in other deposit related costs for the three months ended March 31, 2026 and 2025, respectively, primarily associated with reciprocal deposits.
Current report
During the three months ended March 31, 2026, the Company repurchased 698,014 shares of its common stock. The shares were repurchased at a weighted average price of $71.61, for a total payment, inclusive of commissions, fees, and taxes, of $50.3 million. There were no share repurchases during the comparable period in 2025. As of March 31, 2026, the aggregate remaining approved amount under the Company's $300 million stock repurchase program was approximately $181.9 million.
Removed paragraphs (27)
Previous report
Legal Dispute Related to Credit Facility
Previous report
•Net income available to common stockholders of $250.2 million and diluted earnings per share of $2.28, compared to $196.6 million and $1.80 per share, respectively, for the third quarter 2024
Previous report
•PPNR of $393.8 million, up 37.8% from $285.7 million in the third quarter 20241
Previous report
•Total loans HFI of $56.6 billion, up$3.0 billion, or 5.5%, from December 31, 2024
Previous report
•Total deposits of $77.2 billion, up$10.9 billion, or 16.4%, from December 31, 2024
Previous report
•Total equity of $7.7 billion, an increase of$983 million, or 14.7%, from December 31, 2024
Previous report
•Net interest margin of 3.53%, decreased from 3.61% in the third quarter 2024
Previous report
•Efficiency ratio of 57.4% in the third quarter 2025, compared to 64.5% in the third quarter 20241
Previous report
As permitted by the regulatory capital rules, the Company elected the CECL transition option that delayed the estimated impact on regulatory capital resulting from the adoption of CECL over a five-year transition period that ended December 31, 2024. Accordingly, capital ratios and amounts for 2024 included a 25% capital benefit that resulted from the increased ACL related to the adoption of ASC 326. This capital benefit was fully phased out beginning in 2025.
Previous report
(3)Includes non-accrual loans.
Previous report
(2)Included in the yield computation are net loan fees of $77.4 million and $86.9 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous report
(3)Includes non-accrual loans.
Previous report
For the nine months ended September 30, 2025, interest income was $3.5 billion, an increase of $73.0 million, or 2.1%, compared to $3.4 billion for the nine months ended September 30, 2024. This increase was primarily the result of an increase of $69.6 million in interest income from investment securities primarily due to an increase in the average investment balance of $2.3 billion and interest income from loans HFS of $68.6 million driven by a higher average balance of $1.5 billion. These increases were partially offset by a $38.9 million decrease in interest income from loans HFI driven by lower yields net of a $3.8 billion increase in the average balance.
Previous report
For the three months ended September 30, 2025, interest expense totaled $475.1 million, a decrease of $28.0 million, or 5.6%, compared to $503.1 million for the three months ended September 30, 2024. The decrease in interest expense related to decreases in interest expense on deposits of $23.9 million due to lower rates and short-term borrowings of $27.6 million due to lower rates and a lower average balance of $1.6 billion. These decreases were partially offset by increases of $4.9 billion and $2.3 billion in average interest bearing deposits and long-term debt, respectively.
Previous report
For the nine months ended September 30, 2025, interest expense was $1.4 billion, a decrease of $73.2 million, or 5.0%, compared to $1.5 billion for the nine months ended September 30, 2024. Interest expense on short-term borrowings decreased
Previous report
$83.7 million due to a decrease in the average balance of $1.6 billion in conjunction with lower rates, while interest expense on deposits decreased $58.7 million for the same period driven by lower rates net of a $4.5 billion increase in average interest bearing deposits. These decreases were partially offset by a $74.0 million increase in interest expense on long-term debt resulting from an increase in average balances of $2.2 billion.
Previous report
For the nine months ended September 30, 2025, net interest income was $2.1 billion, an increase of $146.2 million, or 7.5%, compared to $2.0 billion for the nine months ended September 30, 2024. The increase in net interest income reflects a $7.8 billion increase in average interest-earning assets, partially offset by an increase of $5.0 billion in average interest bearing liabilities. The decrease in net interest margin of 10 basis points to 3.51% is primarily the result of a lower rate environment.
Previous report
Total non-interest income for the three months ended September 30, 2025 increased by $61.6 million compared to the same period in 2024, with changes primarily attributable to mortgage banking revenue and other non-interest income. Net gain on mortgage loan origination and sale activities rose by $29.2 million, reflecting increased loan production revenue and improved gain on sale margins. In addition, net loan servicing revenue grew by $6.8 million as MSR valuations, net of hedging, strengthened. Other non-interest income increased $15.6 million largely from an increase in rental income associated with commercial OREO properties.
Previous report
Total non-interest income for the nine months ended September 30, 2025 increased by $92.2 million compared to the same period in 2024. This growth was primarily attributable to higher service charges and loan fees, net gain on mortgage loan origination and sale activities, other non-interest income, and income from bank owned life insurance. The increases in net gain on mortgage loan origination and sale activities, as well as other non-interest income are discussed in the preceding paragraph. The increase in service charges and loan fees of $45.2 million was driven by service charges on insured deposit products. Income from bank owned life insurance rose by$18.5 million, reflecting income from a new policy entered into during the third quarter of 2024. Partially offsetting these increases were declines in income from equity investments and net loan servicing revenue. The $21.2 million decrease in income from equity investments was primarily due to the timing of income recognition on an equity investment, while the $17.6 million reduction in net loan servicing revenue resulted from fair value losses on MSRs and lower servicing income.
Previous report
Total non-interest expense for the nine months ended September 30, 2025 increased by $53.5 million compared to the same period in 2024, mainly due to higher salaries and employee benefits, data processing costs, and other non-interest expense, as discussed in the preceding paragraph. These increases were partially offset by decreases in deposit costs and insurance expense. Lower ECR rates drove the $59.4 million decrease in deposit costs, while insurance costs decreased $28.3 million due to a reduction in brokered deposit levels and an adjustment to the FDIC special assessment loss estimate that resulted in a charge of $9.4 million recognized during the nine months ended September 30, 2024.
Previous report
The increase in total debt securities of $3.8 billion from December 31, 2024 was primarily driven by increases in CLOs, U.S. Treasury securities, and Residential MBS issued by GSEs and GNMA. Investments in CLOs increased $1.3 billion from December 31, 2024 as the Company shifted its investment mix towards higher yielding securities amid favorable market conditions. Growth in U.S. Treasury securities and Residential MBS issued by GSEs and GNMA from December 31, 2024 reflects the Company's continued efforts to expand holdings of high-quality liquid assets.
Previous report
Refer to “Recent Market and Banking Industry Developments” in Part I, Item 2 of this Form 10-Q for additional discussion of other assets acquired through foreclosure.
Previous report
Bank Owned Life Insurance
Previous report
The carrying value of BOLI totaled $1.0 billion as of September 30, 2025, an increase of $34 million, from December 31, 2024. BOLI is used as a tax efficient method to help offset employee benefit costs.
Previous report
In addition, deposits for which the Company provides account holders with earnings credits or referral fees totaled $28.0 billion and $20.7 billion at September 30, 2025 and December 31, 2024, respectively. Costs related to these deposits are primarily reported as Deposit costs in non-interest expense. Deposit costs included $169.2 million and $201.7 million in deposit related costs on these deposits for the three months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025 and 2024, the Company incurred $441.8 million and $500.4 million, respectively, in deposit related costs on these deposits. The decrease in these costs from the same periods in the prior year was due to a decrease in average ECR related deposits and rates.
Previous report
During the three and nine months ended September 30, 2025, the Company's BOD approved a common stock repurchase program pursuant to which the Company is authorized to repurchase up to $300 million of its outstanding common stock through open market purchases, privately negotiated transactions, or other means. The program reflects the Company's commitment to returning capital to shareholders, while maintaining flexibility to invest in strategic growth initiatives. The Company repurchased 119,588 shares of its common stock for a total payment of $10.6 million, at an average price of $88.50 per share, during the three and nine months ended September 30, 2025. As of September 30, 2025, the Company had approximately $289 million remaining under its repurchase authorization.
Previous report
As permitted by the regulatory capital rules, the Company elected the CECL transition option that delayed the estimated impact on regulatory capital resulting from the adoption of CECL over a five-year transition period that ended December 31, 2024. Accordingly, capital ratios and amounts in 2024 included a 25% capital benefit that resulted from the increased ACL related to the adoption of ASC 326. This capital benefit was fully phased out beginning in 2025.
Reworded paragraphs (67)
Previous wording
The forward-looking statements contained in this Form 10-Q reflect the Company's current views about future events and financial performance and are subject to certain risks, uncertainties, assumptions, and changes in circumstances that may cause the Company's actual results to differ significantly from historical results and those expressed in any forward-looking statement. Risks and uncertainties include those set forth in the Company's filings with the SEC and the following factors that could cause actual results to differ materially from historical or expected results: 1) adverse financial market and economic conditions, including the effects of inflation and any recession in the United States, adverse developments in the financial services industry generally, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers, and any related impact on depositor behavior, the potential impact on borrowers of supply chain disruptions and the economic and market impacts of the geopolitical conflicts such as the conflicts in Ukraine and the Middle East; 2) changes in interest rates and increased rate competition; 3) the discontinuation of or substantial changes to interest rate benchmarks utilized in our lending, borrowing and hedging activities; 4) exposure of financial instruments to certain market risks that may increase the volatility of earnings and AOCI; 5) the inherent risk associated with accounting estimates, including the impact to the allowance, provision for credit losses, and capital levels; 6) exposure to natural and man-made disasters in markets where we operate and the impact of climate change and sustainability practices on us and our customers; 7) the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; 8) higher defaults on our loan portfolio than we expect; 9) increased foreclosures and ownership of real property; 10) changes in management's estimate of the adequacy of the allowance for credit losses; 11) dependency on real estate and events that negatively impact the real estate market; 12) concentrations in certain business lines or product types within our loan portfolio; 13) residual risk retained by us on reference pools covered by credit linked notes; 14) exposures related to the properties to which we acquire title; 15) ability to compete in a highly competitive market; 16) expansion strategies through acquisitions or implementation of new lines of business or new products and services that may not be successful and supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities; 17) uncertainty associated with digital payment initiatives; 18) ability to recruit and retain qualified employees and implement adequate succession planning to mitigate the loss …
Excerpt shortened here; the source contains the full paragraph.
Current wording
The forward-looking statements contained in this Form 10-Q reflect the Company's current views about future events and financial performance and are subject to certain risks, uncertainties, assumptions, and changes in circumstances that may cause the Company's actual results to differ significantly from historical results and those expressed in any forward-looking statement. Risks and uncertainties include those set forth in the Company's filings with the SEC and the following factors that could cause actual results to differ materially from historical or expected results: 1) adverse financial market and economic conditions, including the effects of inflation and any recession in the United States, adverse developments in the financial services industry generally, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers, and any related impact on customer behavior, the potential impact on borrowers of supply chain disruptions and the economic and market impacts of the geopolitical conflicts such as the conflicts in Ukraine and the Middle East; 2) changes in interest rates and increased rate competition; 3) the discontinuation of or substantial changes to interest rate benchmarks utilized in our lending, borrowing and hedging activities; 4) exposure of financial instruments to certain market risks that may increase the volatility of earnings and AOCI; 5) the inherent risk associated with accounting estimates, including the impact to the allowance, provision for credit losses, and capital levels; 6) exposure to natural and man-made disasters in markets where we operate and the impact of climate change and sustainability practices on us and our customers; 7) the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; 8) higher defaults on our loan portfolio than we expect; 9) increased foreclosures and ownership of real property; 10) changes in management's estimate of the adequacy of the allowance for credit losses; 11) dependency on real estate and events that negatively impact the real estate market; 12) concentrations in certain business lines or product types within our loan portfolio; 13) residual risk retained by us on reference pools covered by credit linked notes; 14) exposures related to the properties to which we acquire title; 15) ability to compete in a highly competitive market; 16) expansion strategies through acquisitions or implementation of new lines of business or new products and services that may not be successful and supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities; 17) uncertainty associated with digital payment initiatives; 18) ability to recruit and retain qualified employees and implement adequate succession planning to mitigate the loss o…
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The Company's loan portfolio includes significant credit exposure to the CRE market, with CRE related loans comprising approximately 29% and 30% of total loans at September 30, 2025 and December 31, 2024, respectively. Approximately 14% and 16% of CRE loans, excluding construction and land loans, were owner occupied at September 30, 2025 and December 31, 2024, respectively, and less than 5% were non-owner occupied office loans at September 30, 2025 and December 31, 2024. Due to changing conditions in the CRE market, the Company has implemented enhanced measures to monitor and manage credit risk related to this portfolio segment, as further discussed in “Item 1. Business, Lending Activities – Asset Quality” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. During the three and nine months ended September 30, 2025, the Company recognized gross charge-offs on CRE non-owner occupied loans totaling $12.9 million and $44.9 million, respectively, which primarily related to office properties. As the Company is focused on moving nonperforming loans through its standard credit resolution process, the Company took possession of five CRE office properties during the nine months ended September 30, 2025 which drove the net increase in other assets acquired through foreclosure from December 31, 2024. While the Company believes its reserve levels are adequate, CRE market conditions may worsen, which could result in further deterioration of asset quality in this portfolio.
Current wording
The Company's loan portfolio includes significant credit exposure to the CRE market, with CRE related loans comprising approximately 27% of total loans at March 31, 2026 and December 31, 2025. Approximately 14% of CRE loans, excluding construction and land loans, were owner occupied, and less than 4% were non-owner occupied office loans at March 31, 2026 and December 31, 2025. During the three months ended March 31, 2026, the Company recognized gross charge-offs on CRE non-owner occupied loans totaling $27.7 million, which primarily related to office properties. As the Company continues to focus on moving nonperforming loans through its standard credit resolution process, the Company took possession of one CRE office property during the three months ended March 31, 2026. While the Company believes its reserve levels are adequate, CRE market conditions may worsen, which could result in further deterioration of asset quality in this portfolio.
Previous wording
In August 2025, the Bank initiated a lawsuit in connection with its note finance revolving credit facility to Cantor Group V, LLC, citing allegations of fraud by the borrower for failing to provide collateral loans in first position, among other claims. Management has evaluated the existing collateral based on most recent “as-is” appraisals and believes it covers the obligation. In addition, under certain circumstances such as fraud, the Bank holds both a limited guaranty and full guaranty from two ultra-high net worth individuals. Despite the collateral coverage and guaranties, the Bank moved the $98.5 million facility to nonaccrual status and established a specific allowance of $29.6 million for this loan as of September 30, 2025.
Current wording
In August 2025, the Bank initiated a lawsuit in Los Angeles Superior Court against Cantor Group V, LLC and certain individual guarantors in connection with the Bank's note finance revolving credit facility to Cantor Group V, LLC, alleging fraud by the borrower for failing to provide collateral loans in the first position, seeking appointment of a receiver and recovery of funds, and seeking other forms of relief and damages related to claims against the borrower. In addition, under certain circumstances such as fraud, the Bank holds both a limited guaranty and full guaranty from two ultra-high net worth individuals. As of September 30, 2025, the Bank moved the $98.5 million facility to nonaccrual status and established a specific allowance of $29.6 million for this loan. During the three months ended March 31, 2026, management reevaluated the existing collateral based on updated “as-is” appraisals and due to the expected duration of the resolution process, recognized a charge-off of $26.1 million from the previously established reserve. A specific allowance of $3.5 million remains on this loan as of March 31, 2026. To further protect the Company's collateral position, management completed the purchase of a $13 million non-performing senior lien loan during the three months ended March 31, 2026 and plans to acquire additional non-performing senior lien loans as appropriate.
Previous wording
WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of customized loan, deposit and treasury management capabilities, including funds transfer and other digital payment offerings, through its wholly-owned banking subsidiary, WAB. Effective as of October 4, 2025, the Company completed its brand unity initiative, consolidating its legacy division bank brands, ABA, BON, FIB, Bridge, and TPB, under a single unified name, Western Alliance Bank.
Current wording
WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of customized loan, deposit and treasury management capabilities, including funds transfer and other digital payment offerings, through its wholly-owned banking subsidiary, WAB.
Previous wording
Financial Results Highlights for the Third Quarter of 2025
Current wording
Financial Results Highlights for the First Quarter of 2026
Previous wording
•Net revenue of $938.2 million, compared to $823.1 million for the third quarter 2024, with non-interest expense of $544.4 million, compared to $537.4 million for the third quarter 2024
Current wording
•Net revenue of $1.0 billion (or $968.4 million, as adjusted 1), compared to $778.0 million for the first quarter 2025, with non-interest expense of $574.4 million, compared to $500.4 million for the first quarter 2025
Previous wording
•Nonperforming loans to funded HFI loans increased to 0.92%, compared to 0.89% at December 31, 2024
Current wording
•Nonperforming loans to funded HFI loans decreased to 0.83%, compared to 0.85% at December 31, 2025
Previous wording
•Nonperforming assets (nonaccrual loans and repossessed assets) increased to 0.72%of total assets, compared to 0.65% at December 31, 2024
Current wording
•Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 0.62% of total assets, compared to 0.69% at December 31, 2025
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•Annualized net loan charge-offs to average loans outstanding of 0.22%, compared to 0.20% for the third quarter 2024
Current wording
•Annualized net loan charge-offs to average loans outstanding of 1.45% (or 0.39%, as adjusted 1), compared to 0.20% for the first quarter 2025
Previous wording
•Tangible common equity ratio of 7.1%, compared to 7.2% at December 31, 20241
Current wording
•Tangible common equity ratio of 6.8%, compared to 7.3% at December 31, 20251
Previous wording
•Book value per common share of $64.45, an increase of 10.7% from $58.24 at December 31, 2024
Current wording
•Book value per common share of $67.03, a decrease of $0.17, or 0.3%, from $67.20 at December 31, 2025
Previous wording
•Tangible book value per share, net of tax, of $58.56, an increase of$6.29, or 12.0%, from $52.27 at December 31, 20241
Current wording
•Tangible book value per share, net of tax, of $61.14, a decrease of $0.15, or 0.2%, from $61.29 at December 31, 20251
Previous wording
The impact to the Company from these items, and others of both a positive and negative nature, are discussed in more detail below as they pertain to the Company’s overall comparative performance for the three and nine months ended September 30, 2025.
Current wording
The impact to the Company from these items, and others of both a positive and negative nature, are discussed in more detail below as they pertain to the Company’s overall comparative performance for the three months ended March 31, 2026.
Previous wording
(1)Annualized on an actual/actual basis for the three months ended September 30, 2025. Actual year-to-date for the year ended December 31, 2024.
Current wording
(2)Annualized on an actual/actual basis for the three months ended March 31, 2026. Actual year-to-date for the year ended December 31, 2025.
Previous wording
Total assets increased to $91.0 billion at September 30, 2025, an increase of $10.0 billion, or 12.4%, from $80.9 billion at December 31, 2024. Higher deposit levels supported increases in investment securities and cash of $3.7 billion and $1.7 billion, respectively, and also funded HFI and HFS loan growth of $3.0 billion and $1.2 billion, respectively.
Current wording
Total assets increased to $98.9 billion at March 31, 2026, an increase of $6.1 billion, or 6.6%, from $92.8 billion at December 31, 2025. Higher deposit levels supported an increase in cash of $5.0 billion, and also funded HFI and HFS loan growth of $465 million and $438 million, respectively.
Previous wording
Loans HFI increased $3.0 billion, or 5.5%, to $56.6 billion as of September 30, 2025, compared to $53.7 billion as of December 31, 2024. By loan type, commercial and industrial, commercial real estate, and residential loans increased $2.6 billion, $476 million, and $325 million, respectively, from December 31, 2024. In addition, loans HFS increased $1.2 billion from $2.3 billion as of December 31, 2024 primarily due to an increase in non-EBO loans.
Current wording
Loans HFI increased $465 million, or 0.8%, to $59.1 billion as of March 31, 2026, compared to $58.7 billion as of December 31, 2025. By loan type, commercial and industrial and residential loans increased $295 million and $113 million, respectively, from December 31, 2025. In addition, loans HFS increased $438 million, or 12.5%, from $3.5 billion as of December 31, 2025 primarily due to an increase in government-insured or guaranteed and agency-conforming mortgage loans.
Previous wording
Total deposits increased $10.9 billion, or 16.4%, to $77.2 billion as of September 30, 2025 from $66.3 billion as of December 31, 2024. By type, the increase in deposits from December 31, 2024 was driven by increases of $7.8 billion, $3.4 billion, and $544 million in non-interest bearing deposits, savings and money market accounts, and interest bearing demand deposits, respectively, partially offset by a decrease of $839 million in certificates of deposit.
Current wording
Total deposits increased $5.6 billion, or 7.2%, to $82.7 billion as of March 31, 2026 from $77.2 billion as of December 31, 2025. By type, the increase in deposits from December 31, 2025 was driven by increases of $3.7 billion, $969 million, and $828 million in non-interest bearing deposits, interest bearing demand deposits, and savings and money market accounts, respectively.
Previous wording
Banking regulations define PPNR as the sum of net interest income and non-interest income less expenses before adjusting for loss provisions. Management believes this is an important metric as it illustrates the underlying performance of the Company, enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies.
Current wording
Banking regulations define PPNR as the sum of net interest income and non-interest income less expenses before adjusting for loss provisions and income taxes. Management believes this is an important metric as it illustrates the underlying performance of the Company, enables investors and others to assess the Company's ability to generate capital to cover credit losses through the credit cycle, and provides consistent reporting with a key metric used by bank regulatory agencies.
Previous wording
The following tables present financial measures related to tangible common equity. Tangible common equity represents total equity reduced by goodwill and intangible assets and preferred stock. Management believes tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses.
Current wording
The following tables present financial measures related to tangible common equity. Tangible common equity represents total equity reduced by goodwill and intangible assets, preferred stock, and noncontrolling interest in subsidiary. Management believes tangible common equity financial measures are useful in evaluating the Company's capital strength, financial condition, and ability to manage potential losses.
Previous wording
(1)Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $9.7 million and $10.0 million for the three months ended September 30, 2025 and 2024, respectively.
Current wording
(1)Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $10.1 million and $10.2 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
(2)Included in the yield computation are net loan fees of $28.1 million and $21.7 million for the three months ended September 30, 2025 and 2024, respectively.
Current wording
(3)Included in the yield computation are net loan fees of $23.9 million and $23.8 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
(4)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Current wording
(5)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Previous wording
The Company's primary source of revenue is interest income. For the three months ended September 30, 2025, interest income totaled $1.2 billion, an increase of $25.5 million, or 2.1%, compared to the three months ended September 30, 2024. This increase was primarily the result of increases in interest income from investment securities and loans HFS of $34.6 million and $10.2 million, respectively, resulting from increases in the average balances of these assets of $3.4 billion and $721 million, respectively. These increases were partially offset by a decrease in interest income from loans HFI of $7.2 million as lower loan yields outweighed the increase in the average balance of $3.4 billion.
Current wording
The Company's primary source of revenue is interest income. For the three months ended March 31, 2026, interest income totaled $1.2 billion, an increase of $92.6 million, or 8.5%, compared to the three months ended March 31, 2025. This growth was primarily the result of higher interest income from investment securities and loans HFI, which increased by $51.9 million and $21.1 million, respectively, driven by a $4.7 billion increase in the average balances for these asset categories.
Previous wording
For the three months ended September 30, 2025, net interest income totaled $750.4 million, an increase of $53.5 million, or 7.7%, compared to $696.9 million for the three months ended September 30, 2024. The increase in net interest income was driven by an increase in average interest earning assets of $7.5 billion and lower rates on deposits, partially offset by lower yields on interest earning assets. The decrease in net interest margin of 8 basis points to 3.53% is largely the result of the impact of a lower rate environment on interest earning asset yields, partially offset by lower rates on interest bearing liabilities.
Current wording
For the three months ended March 31, 2026, net interest income totaled $766.3 million, an increase of $115.7 million, or 17.8%, compared to $650.6 million for the three months ended March 31, 2025. The increase in net interest income was driven by an increase in average interest earning assets of $11.8 billion and lower rates on deposits, partially offset by lower yields on interest earning assets and an increase in average interest bearing liabilities. Net interest margin improved 7 basis points to 3.54%, largely reflecting reduced costs on interest bearing liabilities in a lower rate environment, though partially offset by declining yields on interest earning assets.
Previous wording
The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans, unfunded loan commitments, and investment securities. The provision is equal to the amount required to maintain the ACL at a level adequate to absorb estimated lifetime credit losses inherent in the loan and investment securities portfolios based on remaining contractual maturity, adjusted for estimated prepayments as of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three and nine months ended September 30, 2025, the Company recorded a provision for credit losses of $80.0 million and $151.1 million, respectively, compared to $33.6 million and $85.9 million for the respective periods in 2024. The provision for credit losses for the three and nine months ended September 30, 2025 is primarily reflective of net loan charge-offs of $31.1 million and $86.5 million, respectively, establishment of a $29.6 million reserve related to the Cantor Group V loan, and qualitative overlays.
Current wording
The provision for credit losses in each period is reflected as a reduction in earnings for that period and includes amounts related to funded loans, unfunded loan commitments, and investment securities. The provision is equal to the amount required to maintain the ACL at a level adequate to absorb estimated lifetime credit losses inherent in the loan and investment securities portfolios based on remaining contractual maturity, adjusted for estimated prepayments as of each period end. The Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses. For the three months ended March 31, 2026, the Company recorded a provision for credit losses of $213.2 million compared to $31.2 million for the three months ended March 31, 2025. The provision for credit losses for the three months ended March 31, 2026 is primarily reflective of net loan charge-offs of $208.5 million. This included a charge-off of $126.4 million for the remaining balance of the Leucadia Asset Management LLC loan and a $26.1 million charge-off from the specific reserve previously established on the Cantor Group V, LLC loan.
Previous wording
Total non-interest expense for the three months ended September 30, 2025 increased by $7.0 million compared to the same period in 2024, primarily due to higher salaries and employee benefits, other non-interest expense, and data processing costs. Salaries and employee benefits rose by $35.7 million, reflecting increases in average salary and headcount. Other non-interest expense grew by $9.6 million, largely driven by increased costs from operating OREO properties. Data processing costs were up $9.4 million attributable to higher software licensing fees and associated depreciation. These increases were partially offset by a reduction in deposit costs of $32.9 million resulting from lower ECR rates as well as a decrease in insurance expense of $10.9 million, due to lower FDIC assessment fees following a decline in brokered deposit levels.
Current wording
Total non-interest expense for the three months ended March 31, 2026 increased by $74.0 million compared to the same period in 2025, primarily due to higher deposit costs, salaries and employee benefits, and other non-interest expense. Deposit costs were up $26.5 million attributable to increased ECR balances. Salaries and employee benefits rose by $23.1 million, reflecting higher average salaries and headcount. Other non-interest expense grew by $19.4 million, largely driven by increased costs from operating OREO properties and costs to support revenue growth in the Company's disbursements business. These increases were partially offset by a reduction in insurance expense of $13.2 million, due to lower FDIC assessment fees following a decline in brokered deposit levels.
Previous wording
The Company's effective tax rate was 17.0% and 20.7% for the three months ended September 30, 2025 and 2024, respectively, and 18.1% and 22.0% for the nine months ended September 30, 2025 and 2024, respectively. The decrease in the effective tax rate for the three and nine month periods ended September 30, 2025 compared to the same periods in 2024 was primarily due to an increase in investment tax credit benefits and a decrease in state taxes.
Current wording
The Company's effective tax rate was 18.2% and 19.2% for the three months ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate for the three months ended March 31, 2026 compared to the same period in 2025 was primarily due to a decrease in nondeductible insurance premiums and an increase in stock compensation benefit in 2026.
Previous wording
Total assets increased $10.0 billion, or 12.4%, to $91.0 billion at September 30, 2025, compared to $80.9 billion at December 31, 2024. Higher deposit levels supported increases in investment securities and cash of $3.7 billion and $1.7 billion, respectively, and also funded HFI and HFS loan growth. Loans HFI increased $3.0 billion, or 5.5%, to $56.6 billion as of September 30, 2025 compared to $53.7 billion as of December 31, 2024. By loan type, commercial and industrial, commercial real estate, and residential loans increased $2.6 billion, $476 million, and $325 million, respectively, from December 31, 2024. Loans HFS increased $1.2 billion from $2.3 billion as of December 31, 2024 primarily due to an increase in non-EBO loans.
Current wording
Total assets increased $6.1 billion, or 6.6%, to $98.9 billion at March 31, 2026, compared to $92.8 billion at December 31, 2025. Higher deposit levels supported an increase in cash of $5.0 billion, and also funded HFI and HFS loan growth. Loans HFI increased $465 million, or 0.8%, to $59.1 billion as of March 31, 2026, compared to $58.7 billion as of December 31, 2025. By loan type, commercial and industrial and residential loans increased $295 million and $113 million, respectively, from December 31, 2025. Loans HFS increased $438 million from $3.5 billion as of December 31, 2025 primarily due to an increase in government-insured or guaranteed and agency-conforming mortgage loans.
Previous wording
Total liabilities increased $9.1 billion to $83.3 billion at September 30, 2025, compared to $74.2 billion at December 31, 2024 as total deposits increased $10.9 billion, or 16.4%, to $77.2 billion. By type, the increase in deposits from December 31, 2024 was driven by increases of $7.8 billion in non-interest bearing deposits, $3.4 billion in savings and money market accounts, and $544 million in interest bearing demand deposits, partially offset by a decrease in certificates of deposit of $839 million. Other borrowings decreased $1.7 billion from December 31, 2024 as deposit growth facilitated a reduction in overnight borrowings.
Current wording
Total liabilities increased $6.1 billion to $90.9 billion at March 31, 2026, compared to $84.8 billion at December 31, 2025 as total deposits increased $5.6 billion, or 7.2%, to $82.7 billion. By type, the increase in deposits from December 31, 2025 was driven by increases of $3.7 billion in non-interest bearing deposits, $969 million in interest bearing demand deposits, and $828 million in savings and money market accounts. Other borrowings increased $370 million from December 31, 2025, primarily due to an increase in overnight borrowings.
Previous wording
Total equity of $7.7 billion at September 30, 2025 increased $983 million, or 14.7%, from December 31, 2024. This change was primarily attributable to net income of $697.4 million for the nine months ended September 30, 2025, the issuance of preferred stock from the Company's REIT subsidiary, and unrealized fair value gains on AFS securities, recorded net of tax in OCI. Proceeds from the REIT preferred stock issuance totaled $293 million, net of issuance costs, and was recognized as a noncontrolling interest in subsidiary. These increases were partially offset by quarterly dividends to common and preferred stockholders as well as REIT preferred stockholders.
Current wording
Total equity of $7.9 billion at March 31, 2026 decreased $38 million, or 0.5%, from December 31, 2025. This decline was primarily attributable to unrealized fair value changes on AFS securities, recorded net of tax in OCI, share repurchases and quarterly dividends to common and preferred stockholders, including REIT preferred stockholders. Net income of $189.2 million for the three months ended March 31, 2026 partially offset these decreases.
Previous wording
Debt securities are classified at the time of acquisition as either HTM, AFS, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are carried at fair value with unrealized gains or losses on these securities recorded in AOCI in equity, net of tax. Trading securities are reported at fair value, with unrealized gains and losses on these securities included in current period earnings.
Current wording
Debt securities are classified at the time of acquisition as either HTM, AFS, or trading based upon various factors, including asset/liability management strategies, liquidity and profitability objectives, and regulatory requirements. HTM securities are carried at amortized cost, adjusted for amortization of premiums or accretion of discounts. AFS securities are carried at fair value with unrealized gains or losses on these securities recorded in AOCI in stockholders' equity, net of tax. Trading securities are reported at fair value, with unrealized gains and losses on these securities included in current period earnings.
Previous wording
The Company purchases and originates residential mortgage loans that are held for sale or securitization through its AmeriHome mortgage banking business channel. As of September 30, 2025, loans HFS totaled $3.5 billion, compared to $2.3 billion at December 31, 2024, an increase of $1.2 billion primarily related to an increase in non-EBO loans.
Current wording
The Company purchases and originates residential mortgage loans that are held for sale or securitization through its AmeriHome mortgage banking business channel. As of March 31, 2026, loans HFS totaled $3.9 billion, an increase of $438 million, or 12.5%, compared to $3.5 billion at December 31, 2025. The increase in loans HFS from December 31, 2025 primarily related to an increase in government-insured or guaranteed and agency-conforming mortgage loans.
Previous wording
Loans classified as HFI are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts on acquired and purchased loans, and an ACL. Net deferred loan fees of $127 million and $106 million reduced the carrying value of loans as of September 30, 2025 and December 31, 2024, respectively. Net unamortized purchase premiums on acquired and purchased loans of $178 million and $175 million increased the carrying value of loans as of September 30, 2025 and December 31, 2024, respectively.
Current wording
Loans classified as HFI are stated at the amount of unpaid principal, adjusted for net deferred fees and costs, premiums and discounts on acquired and purchased loans, and an ACL. Net deferred loan fees of $124 million and $120 million reduced the carrying value of loans as of March 31, 2026 and December 31, 2025, respectively. Net unamortized purchase premiums on acquired and purchased loans of $193 million and $186 million increased the carrying value of loans as of March 31, 2026 and December 31, 2025, respectively.
Previous wording
Commercial and industrial loans made up 45% and 43% of total loans HFI as of September 30, 2025 and December 31, 2024, respectively. A subset of commercial and industrial loans consist of loans to NDFIs, which, as defined by regulatory guidance, are entities that provide services similar to traditional banks but do not accept deposits from the general public and are not regulated by Federal banking agencies.
Current wording
Commercial and industrial loans made up 48% of total loans HFI as of March 31, 2026 and December 31, 2025. A subset of commercial and industrial loans consist of loans to NDFIs, which, as defined by regulatory guidance, are entities that provide services similar to traditional banks but do not accept deposits from the general public and are not regulated by Federal banking agencies.
Previous wording
In addition, the Company's loan portfolio includes significant credit exposure to the CRE market as CRE related loans accounted for approximately 29% and 30% of total loans at September 30, 2025 and December 31, 2024, respectively. Non-owner occupied CRE loans are loans where the primary source of repayment is rental income generated from the collateral property. Owner occupied CRE loans are loans secured by owner occupied non-farm nonresidential properties where the primary source of repayment is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. These CRE loans are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties.
Current wording
In addition, the Company's loan portfolio includes significant credit exposure to the CRE market as CRE related loans accounted for approximately 27% of total loans at March 31, 2026 and December 31, 2025. Non-owner occupied CRE loans are loans where the primary source of repayment is rental income generated from the collateral property. Owner occupied CRE loans are loans secured by owner occupied non-farm nonresidential properties where the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. These CRE loans are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties.
Previous wording
(1) The weighted average LTVs in the above table are based on the most recent available information, if current appraisals are not available.
Current wording
(1) If current appraisals are not available, weighted average LTV is based on the most recent available information.
Previous wording
(1) The weighted average LTVs in the above table are based on the most recent available information, if current appraisals are not available.
Current wording
(1) If current appraisals are not available, weighted average LTV is based on the most recent available information.
Previous wording
Approximately $2.2 billion, or 3.9%, of total loans HFI consisted of CRE non-owner occupied office loans as of September 30, 2025, compared to $2.3 billion, or 4.4%, as of December 31, 2024. Of the non-owner occupied office loan balance as of September 30, 2025, $535 million is scheduled to mature in the remainder of 2025. These office loans primarily consist of shorter-term bridge loans that enable borrowers to reposition or redevelop projects with more modern standards attractive to in-office employers in today’s environment, including enhanced on-site amenities. The vast majority of these projects are located in suburban locations in the Company's core footprint states (Arizona, California, and Nevada), with central business district and midtown exposure totaling less than 1% and 10% of office loans as of September 30, 2025, respectively.
Current wording
Approximately $2.2 billion, or 3.7%, of total loans HFI consisted of CRE non-owner occupied office loans as of March 31, 2026, compared to $2.1 billion, or 3.6%, as of December 31, 2025. Of the non-owner occupied office loan balance as of March 31, 2026, $917 million is scheduled to mature in the remainder of 2026. These office loans primarily consist of shorter-term bridge loans that enable borrowers to reposition or redevelop projects with more modern standards attractive to in-office employers in today’s environment, including enhanced on-site amenities. The vast majority of these projects are located in suburban locations in the Company's core footprint states (Arizona, California, and Nevada), with central business district and midtown exposure totaling less than 1% and 10% of office loans as of March 31, 2026, respectively.
Previous wording
As of September 30, 2025 and December 31, 2024, 14% and 16% of the Company's CRE loans, excluding construction and land loans, were owner occupied, respectively, with substantially all of these loans secured by first liens and had an initial loan-to-value ratio of generally not more than 75%.
Current wording
As of March 31, 2026 and December 31, 2025, 14% of the Company's CRE loans, excluding construction and land loans, were owner occupied, respectively, with substantially all of these loans secured by first liens and had an initial loan-to-value ratio of generally not more than 75%.
Previous wording
Total non-performing loans increased $75 million to $679 million at September 30, 2025, from $604 million at December 31, 2024.
Current wording
Non-performing loans totaled $679 million at March 31, 2026, nearly unchanged from $680 million at December 31, 2025.
Showing the first 40 of 67 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
(1)See Non-GAAP Financial Measures section beginning on page 64.
Current report — wording carried from elsewhere
Return on Average Tangible Common Equity, As Adjusted
Current report — wording carried from elsewhere
1 See Non-GAAP Financial Measures section beginning on page 63.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
(1)Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $30.1 million and $29.5 million for the nine months ended September 30, 2025 and 2024, respectively.
Previous report — wording carried elsewhere
(4)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.