WESTERN ALLIANCE BANCORPORATION
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
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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.
Jun 30, 2026 · Filed Jul 31, 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 2026-03-31; filed 2026-05-11.
0001628280-26-033054
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001628280-26-051418
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 192 previous paragraphs and 199 current paragraphs.
112 unchanged; 68 reworded; 14 added; 10 removed; 2 previous and 5 current paragraphs rearranged.
Tables are not compared: 40 previous and 43 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 (14)
Current report
Deposit Optimization Strategy
Current report
During the second quarter of 2026, the Company initiated a deposit optimization strategy designed to improve profitability by reducing higher-cost deposit balances. These efforts lowered period-end deposits relative to the prior quarter, including the reduction of more than $1 billion of higher-cost deposits near quarter-end. This strategy is designed to reposition the Company’s funding mix by reducing deposit costs and improving net interest margin over time.
Current report
•PPNR 1 of $412.4 million, up 24.5% from $331.2 million in the second quarter 2025
Current report
•Total loans HFI of $60.9 billion, up $2.3 billion, or 3.9%, from December 31, 2025
Current report
•Total deposits of $81.9 billion, up $4.7 billion, or 6.1%, from December 31, 2025
Current report
•Total equity of $8.1 billion, an increase of $189 million, or 2.4%, from December 31, 2025
Current report
•Net interest margin of 3.53%, flat from the second quarter 2025
Current report
(4)Includes non-accrual loans.
Current report
For the six months ended June 30, 2026, interest income totaled $2.4 billion, an increase of $170.1 million, or 7.6%, compared to $2.3 billion for the same period in 2025. This increase was primarily the result of higher interest income from investment securities, loans HFI, and loans HFS, which increased by $95.8 million, $37.3 million, and $24.6 million, respectively, largely due to higher average balances for each of these asset categories.
Current report
For the three months ended June 30, 2026, net interest income totaled $796.9 million, an increase of $99.3 million, or 14.2%, compared to $697.6 million for the same period in 2025. The increase in net interest income was driven by an increase in average interest earning assets of $11.1 billion and lower interest bearing deposit rates, partially offset by lower yields on interest earning assets and higher average interest bearing liability balances. Net interest margin was unchanged at 3.53%, as lower funding costs from the lower-rate environment were offset by declining yields on interest earning assets.
Current report
Total non-interest income for the three months ended June 30, 2026 increased $50.5 million from the same period in 2025. This growth was primarily attributable to service charges and fees, net gain on mortgage loan origination and sales activities, and net fair value gain adjustments. Service charges and fees rose by $23.4 million, driven by higher disbursement and other commercial banking fees. Net gain on mortgage loan origination and sale activities increased by $14.0 million, primarily reflecting production revenue growth from higher volumes and margins, partially offset by lower secondary revenue due to increased market volatility. Net fair value gain adjustments increased $12.7 million, primarily driven by covered call options and valuation increases on interest rate contracts and equity securities. These increases were partially offset by decreases of $8.4 million in gain on sales of investment securities, primarily due to lower securities sales volume, and $7.0 million in net loan servicing revenue, largely reflecting changes in the fair value of MSRs and higher amortization expense, partially offset by higher servicing revenue from growth in the Company's servicing portfolio.
Current report
Total non-interest expense for the three months ended June 30, 2026 increased $68.6 million from the same period in 2025, primarily due to higher deposit costs and salaries and employee benefits. Deposit costs increased$31.8 million driven by higher average ECR balances, which increased approximately$6.0 billion to$31.6 billion. Salaries and employee benefits rose by$24.4 million, reflecting higher average salaries and headcount.
Current report
Non-performing loans increased $101 million, or 14.9%, to $781 million at June 30, 2026, from $680 million at December 31, 2025. The increase in non-performing loans is primarily due to the migration of a life science laboratory/office CRE loan, as previously disclosed, and purchase of $64 million of loans with more-than-insignificant deterioration in credit quality.
Current report
The classification of certain loans as of December 31, 2025, was revised to conform to the loan segmentation presented elsewhere in this Quarterly Report on Form 10‑Q.
Removed paragraphs (10)
Previous 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
Previous report
•Total loans HFI of $59.1 billion, up $465 million, or 0.8%, from December 31, 2025
Previous report
•Total deposits of $82.7 billion, up $5.6 billion, or 7.2%, from December 31, 2025
Previous report
•Total equity of $7.9 billion, a decrease of $38 million, or 0.5%, from December 31, 2025
Previous report
•Net interest margin of 3.54%, increased from 3.47% in the first quarter 2025
Previous report
Net Charge-Offs and Net Charge-Offs to Average Loans, As Adjusted
Previous report
Non-performing loans totaled $679 million at March 31, 2026, nearly unchanged from $680 million at December 31, 2025.
Previous report
The increase in the problem loan balance from December 31, 2025 was largely attributable to an increase in Special Mention loans.
Previous report
Qualifying Debt
Previous report
Qualifying debt consists of subordinated debt and junior subordinated debt, inclusive of issuance costs and fair market value adjustments. At March 31, 2026, the carrying value of qualifying debt decreased $4 million from $1.1 billion at December 31, 2025.
Reworded paragraphs (68)
Previous wording
Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including without limitation, statements regarding our expectations with respect to our business, financial and operating results, including our deposits, liquidity and funding, changes in economic conditions and the related impact on the Company's business, and statements that are related to or are dependent on estimates or assumptions relating to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts.
Current wording
Certain statements contained in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including without limitation, statements regarding our expectations with respect to our business, financial and operating results, including our deposits and deposit optimization strategy, liquidity and funding, changes in economic conditions and the related impact on the Company's business, and statements that are related to or are dependent on estimates or assumptions relating to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts.
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 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.
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; 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 of key members of our senior management team; 19) abil…
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 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.
Current wording
The Company's loan portfolio includes significant credit exposure to the CRE market, with CRE related loans comprising approximately 26% and 27% of total loans at June 30, 2026 and December 31, 2025, respectively. Approximately 13% and 14% of CRE loans, excluding construction and land loans, were owner occupied at June 30, 2026 and December 31, 2025, respectively. Less than 4% of HFI loans were non-owner occupied office loans at June 30, 2026 and December 31, 2025. During the three and six months ended June 30, 2026, the Company recognized gross charge-offs on CRE non-owner occupied loans totaling $32.0 million and $59.7 million, respectively. 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 six months ended June 30, 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 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.
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. No additional charge-offs were recognized during the three months ended June 30, 2026.
Previous wording
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 wording
In May 2026, the Bank and its collateral agent filed an amended complaint in New York Supreme Court against Jefferies Financial Group, Leucadia Asset Management LLC, and affiliates (collectively, the "Defendants") alleging breach of contract, fraud, negligence, promissory estoppel, and unjust enrichment 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 secured by accounts receivable the Bank's borrower 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. 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 that month, the Company recorded a charge‑off of $126.4 million for the remaining loan balance. The Company continues to pursue recovery through litigation and other available remedies. Any future recoveries will be recognized when realized or realizable.
Previous wording
Financial Results Highlights for the First Quarter of 2026
Current wording
Financial Results Highlights for the Second Quarter of 2026
Previous wording
•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 wording
•Net income available to common stockholders of $258.5 million, compared to $227.2 million for the second quarter 2025
Previous wording
•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 wording
•Diluted earnings per share of $2.36, compared to $2.07 per share for the second quarter 2025
Previous 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
Current wording
•Net revenue of $995.7 million, compared to $845.9 million for the second quarter 2025, with non-interest expense of $583.3 million, compared to $514.7 million for the second quarter 2025
Previous wording
•Nonperforming loans to funded HFI loans decreased to 0.83%, compared to 0.85% at December 31, 2025
Current wording
•Nonperforming loans to funded HFI loans increased to 0.92%, compared to 0.85% at December 31, 2025
Previous wording
•Nonperforming assets (nonaccrual loans and repossessed assets) decreased to 0.62% of total assets, compared to 0.69% at December 31, 2025
Current wording
•Nonperforming assets (nonaccrual loans and repossessed assets) increased to 0.70% of total assets, compared to 0.69% at December 31, 2025
Previous 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
Current wording
•Annualized net loan charge-offs to average loans outstanding of 0.37%, compared to 0.22% for the second quarter 2025
Previous wording
•Tangible common equity ratio of 6.8%, compared to 7.3% at December 31, 20251
Current wording
•Tangible common equity ratio 1 of 7.0%, compared to 7.3% at December 31, 2025
Previous wording
•Book value per common share of $67.03, a decrease of $0.17, or 0.3%, from $67.20 at December 31, 2025
Current wording
•Book value per common share of $69.11, an increase of $1.91, or 2.8%, from $67.20 at December 31, 2025
Previous 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
Current wording
•Tangible book value per share, net of tax 1, of $63.24, an increase of $1.95, or 3.2%, from $61.29 at December 31, 2025
Previous wording
•Efficiency ratio 1 of 55.8% in the first quarter 2026, compared to 63.5% in the first quarter 2025
Current wording
•Efficiency ratio 1 of 58.0% in the second quarter 2026, compared to 60.1% in the second quarter 2025
Previous wording
•Efficiency ratio, adjusted for deposit costs 1 of 47.5%, compared to 55.8% in the first quarter 2025
Current wording
•Efficiency ratio, adjusted for deposit costs 1 of 48.9%, compared to 51.8% in the second quarter 2025
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 months ended March 31, 2026.
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 and six months ended June 30, 2026.
Previous 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.
Current wording
(1)Annualized on an actual/actual basis for the three months ended June 30, 2026. Actual year-to-date for the year ended December 31, 2025.
Previous 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.
Current wording
Total assets increased to $98.7 billion at June 30, 2026, an increase of $5.9 billion, or 6.4%, from $92.8 billion at December 31, 2025. Higher deposit levels supported an increase in cash of $2.3 billion, and also funded HFI and HFS loan growth of $2.3 billion and $849 million, respectively.
Previous 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.
Current wording
Loans HFI increased $2.3 billion, or 3.9%, to $60.9 billion as of June 30, 2026, compared to $58.7 billion as of December 31, 2025. By loan type, commercial and industrial, residential, and construction and land development loans increased $1.8 billion, $396 million, and $186 million, respectively, from December 31, 2025, partially offset by a decrease in commercial real estate owner occupied loans of $105 million. In addition, loans HFS increased $849 million, or 24.3%, 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 $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.
Current wording
Total deposits increased $4.7 billion, or 6.1%, to $81.9 billion as of June 30, 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 $3.5 billion, $843 million, $300 million, and $105 million in non-interest bearing deposits, interest bearing demand deposits, savings and money market accounts, and certificates of deposit, respectively.
Previous wording
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 wording
The adjusted non-GAAP revenue, earnings and return metrics presented below for the six months ended June 30, 2026 exclude, as applicable, the provision for credit losses related to the charge-off of the remaining Leucadia Asset Management LLC loan balance and gains on investment security sales executed during the three month ended March 31, 2026 as part of the Company's mitigation strategy.
Previous wording
(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 wording
(2)Interest income includes a reduction for earnings credits totaling $52.5 million and $61.3 million for the three months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
(3)Included in the yield computation are net loan fees of $49.4 million and $49.3 million for the six months ended June 30, 2026 and 2025, respectively.
Previous 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.
Current wording
The Company's primary source of revenue is interest income. For the three months ended June 30, 2026, interest income totaled $1.2 billion, an increase of $77.5 million, or 6.7%, from the same period in 2025. This growth was primarily the result of higher interest income from investment securities and loans HFI, which increased by $43.9 million and $16.3 million, respectively, driven by a $4.5 billion increase in average balances for each of these asset categories.
Previous wording
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 wording
For the three months ended June 30, 2026, interest expense totaled $435.0 million, a decrease of $21.8 million, or 4.8%, compared to $456.8 million for the same period in 2025. The decrease was driven by lower interest expense on long-term debt and deposits, which declined $18.3 million and $7.3 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 drove the decline in interest expense on deposits. These decreases were partially offset by an increase in interest expense on qualifying debt of $5.6 million, resulting from a $245 million increase in the average balance and higher interest rates.
Previous 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.
Current wording
For the six months ended June 30, 2026, net interest income totaled $1.6 billion, an increase of $215.0 million, or 15.9%, compared to $1.3 billion for the same period in 2025. The increase in net interest income was driven by an increase in average interest earning assets of $11.5 billion and lower interest bearing deposit rates, partially offset by lower yields on interest earning assets and a higher average interest bearing liability balances. Net interest margin improved 4 basis points to 3.54%, as lower funding costs in the declining rate environment more than offset the impact of lower 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 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.
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 and six months ended June 30, 2026, the Company recorded a provision for credit losses of $80.4 million and $293.6 million, compared to $39.9 million and $71.1 million for the three and six months ended June 30, 2025. The provision for credit losses for the three and six months ended June 30, 2026 is primarily reflective of loan growth and net loan charge-offs of $55.0 million and $263.5 million, respectively. Charge-offs for the six months ended June 30, 2026 included $126.4 million for the remaining balance of the Leucadia Asset Management LLC loan and $26.1 million from the specific reserve previously established on the Cantor Group V, LLC loan.
Previous wording
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 wording
Total non-interest income for the six months ended June 30, 2026 increased $175.7 million from the same period in 2025 primarily due to higher service charges and fees, gain on sales of investment securities, net gain on mortgage loan origination and sale activities, and income from equity investments. Service charges and fees rose by $71.4 million, driven by higher commercial banking, disbursements, and unused commitment fees. Gain on sales of investment securities increased $40.0 million, reflecting a series of security sales executed by management during the first quarter of 2026. Net gain on mortgage loan origination and sale activities increased $37.2 million, as discussed in the preceding paragraph. Income from equity investments increased $27.1 million, which was primarily driven by a loss on a solar investment in the second quarter of 2025 that did not recur and gains on warrant valuations. These increases were partially offset by a $30.1 million decrease in net loan servicing revenue, as discussed in the preceding paragraph.
Previous 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.
Current wording
Total non-interest expense for the six months ended June 30, 2026 increased $142.6 million from the same period in 2025, primarily due to higher deposit costs, salaries and employee benefits, other expense, and data processing expenses. Deposit costs increased $58.3 million, driven by an increase of approximately$5.6 billion in average ECR related deposit balances to$30.5 billion. Salaries and employee benefits rose by $47.5 million, reflecting higher average salaries and headcount. Other expense increased $19.4 million, primarily from costs associated with operating OREO properties and supporting growth in the Company's disbursements business. Data processing expenses increased $15.0 million due to higher software-related costs. These increases were partially offset by a reduction in insurance expense of $22.3 million, driven by lower FDIC assessment fees.
Previous 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.
Current wording
The Company's effective tax rate was 19.0% and 18.4% for the three months ended June 30, 2026 and 2025, respectively, and 18.7% and 18.8% for the six months ended June 30, 2026 and 2025, respectively. The increase in the effective tax rate for the three months ended June 30, 2026 compared to the same period in 2025 was primarily attributable to an increase in pretax income and a decrease in investment tax credits. For the six months ended June 30, 2026 and 2025, the effective tax rate remained substantially consistent.
Previous 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.
Current wording
Total assets increased $5.9 billion, or 6.4%, to $98.7 billion at June 30, 2026, compared to $92.8 billion at December 31, 2025. Higher deposit levels supported an increase in cash of $2.3 billion, and also funded HFI and HFS loan growth. Loans HFI increased $2.3 billion, or 3.9%, to $60.9 billion as of June 30, 2026, compared to $58.7 billion as of December 31, 2025. By loan type, commercial and industrial, residential, and construction and land development loans increased $1.8 billion, $396 million, and $186 million, respectively, from December 31, 2025. Loans HFS increased $849 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 $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.
Current wording
Total liabilities increased $5.7 billion to $90.6 billion at June 30, 2026, compared to $84.8 billion at December 31, 2025 as total deposits increased $4.7 billion, or 6.1%, to $81.9 billion. By type, the increase in deposits from December 31, 2025 was driven by increases of $3.5 billion in non-interest bearing deposits, $843 million in interest bearing demand deposits, $300 million in savings and money market accounts, and $105 million in certificates of deposit. Other borrowings increased $996 million from December 31, 2025, primarily due to an increase in overnight borrowings.
Previous 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.
Current wording
Total equity of $8.1 billion at June 30, 2026 increased $189 million, or 2.4%, from December 31, 2025 primarily due to net income of $458.0 million for the six months ended June 30, 2026. This increase was partially offset by unrealized fair value losses on AFS securities, recorded net of tax in OCI, share repurchases, and quarterly dividends to common and preferred stockholders totaling $112.5 million, including REIT preferred stockholders.
Previous wording
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 wording
The increase in total debt securities of $184 million from December 31, 2025 was primarily driven by net purchases of CLOs and Residential MBS issued by GSEs and GNMA, partially offset by sales of U.S. Treasury securities and commercial MBS during the six months ended June 30, 2026 as the Company sold securities to secure gains.
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 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.
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 June 30, 2026, loans HFS totaled $4.3 billion, an increase of $849 million, or 24.3%, 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 $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.
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 $127 million and $120 million reduced the carrying value of loans as of June 30, 2026 and December 31, 2025, respectively. Net unamortized purchase premiums on acquired and purchased loans of $200 million and $186 million increased the carrying value of loans as of June 30, 2026 and December 31, 2025, respectively.
Previous 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.
Current wording
Commercial and industrial loans made up 49% and 48% of total loans HFI as of June 30, 2026 and December 31, 2025, 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.
Previous 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.
Current wording
In addition, the Company's loan portfolio includes significant credit exposure to the CRE market as CRE related loans accounted for approximately 26% and 27% of total loans at June 30, 2026 and December 31, 2025, 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 (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.
Showing the first 40 of 68 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
(3)Included in the yield computation are net loan fees of $25.5 million for each of the three months ended June 30, 2026 and 2025.
Current report — wording carried from elsewhere
(1)Yields on loans and securities have been adjusted to a TEB. The taxable-equivalent adjustment was $20.2 million and $20.3 million for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
(2)Interest income includes a reduction for earnings credits totaling $101.2 million and $119.4 million for the six months ended June 30, 2026 and 2025, respectively.
Current report — wording carried from elsewhere
(5)Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
Current report — wording carried from elsewhere
For the six months ended June 30, 2026, interest expense totaled $856.9 million, a decrease of $44.9 million, or 5.0%, compared to $901.8 million for the same period in 2025. The decline was driven by lower interest expense on long-term debt and deposits, which declined $36.3 million and $24.9 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 drove the decline in interest expense on deposits. These decreases were partially offset by an increase in interest expense on qualifying debt of $9.4 million, resulting from a $212 million increase in the average balance and higher rates.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
(1)See Non-GAAP Financial Measures section beginning on page 64.
Previous report — wording carried elsewhere
1 See Non-GAAP Financial Measures section beginning on page 63.