Western Alliance Bancorporation(US:WAL)2026-01-27 02:58Financial Performance - Net income for Q4 2025 was $293.2 million, up 12.6% from $260.5 million in Q3 2025, and up 35.2% from $216.9 million in Q4 2024[10] - Earnings per share for Q4 2025 reached $2.59, a 13.6% increase from $2.28 in Q3 2025 and a 32.8% increase from $1.95 in Q4 2024[10] - Net income for the year ended December 31, 2025, was $990.6 million, a 25.8% increase from $787.7 million in 2024[34] - Net income attributable to Western Alliance was $286.1 million in Q4 2025, compared to $253.4 million in Q3 2025, reflecting a 12.5% increase[40] Revenue and Income - Pre-provision net revenue (PPNR) for Q4 2025 was $428.7 million, up 8.9% from $393.8 million in Q3 2025 and up 33.2% from $319.4 million in Q4 2024[11] - Non-interest income for Q4 2025 was $214.7 million, an increase of 14.3% from $187.8 million in Q3 2025 and up 24.9% from $171.9 million in Q4 2024[7] - Interest income for Q4 2025 reached $1,217.4 million, a 6.9% increase from $1,138.6 million in Q4 2024[34] - Net interest income after provision for credit losses was $693.2 million for Q4 2025, up 14.3% from $606.5 million in Q4 2024[34] Asset and Deposit Management - Total deposits decreased by $88 million to $77.2 billion in Q4 2025, while total deposits increased by $10.8 billion, or 16.3%, year-over-year[2] - Total assets rose by $1.8 billion, or 2.0%, to $92.8 billion at December 31, 2025, compared to $91.0 billion at September 30, 2025, and increased 14.6% from $80.9 billion at December 31, 2024[21] - Total deposits amounted to $77.2 billion as of December 31, 2025, reflecting a decrease of $88 million from the previous quarter but an increase of $10.8 billion from $66.3 billion at December 31, 2024[15] Loan Performance - HFI loans totaled $58.7 billion in Q4 2025, an increase of $2.0 billion, or 3.6%, from Q3 2025, and up $5.0 billion, or 9.3%, year-over-year[13] - The ratio of HFI loans to deposits was 76.0% at December 31, 2025, up from 73.3% at September 30, 2025, but down from 80.9% at December 31, 2024[16] - Nonaccrual loans decreased by $22 million to $500 million during the quarter, but increased by $24 million from December 31, 2024[23] Efficiency and Ratios - The efficiency ratio, adjusted for deposit costs, improved to 46.5% in Q4 2025 from 47.8% in Q3 2025 and 51.1% in Q4 2024[9] - The common equity tier 1 capital ratio was 11.0% at December 31, 2025, down from 11.3% at September 30, 2025, and December 31, 2024[20] - The tangible common equity ratio improved to 7.3% as of December 31, 2025, compared to 7.2% in the previous year[37] Credit Losses and Provisions - The company recorded a provision for credit losses of $73.0 million in Q4 2025, a decrease from $80.0 million in Q3 2025 but an increase from $60.0 million in Q4 2024[5] - The provision for credit losses increased by 21.7% to $73.0 million in Q4 2025, up from $60.0 million in Q4 2024[34] - Total allowance for credit losses on loans reached $510.2 million, compared to $482.7 million in the previous quarter[42] Equity and Capital - Total equity increased by $256 million, or 3.3%, to $7.9 billion in Q4 2025, with a year-over-year increase of $1.2 billion, or 18.5%[2] - Total tangible common equity increased to $6,709 million as of December 31, 2025, up from $6,451 million in September 2025, representing a growth of 4.0%[57] - Tangible book value per share was $61.29 at December 31, 2025, an increase of 4.7% from $58.56 at September 30, 2025, and 17.3% from $52.27 at December 31, 2024[20] Other Financial Metrics - The average cost of interest-bearing liabilities decreased to 3.34% in 2025 from 3.90% in 2024, reflecting a reduction in funding costs[52] - Total non-interest expense increased to $552.2 million in Q4 2025, compared to $544.4 million in Q3 2025[40] - Loans charged-off totaled $48.3 million for the quarter ended December 31, 2025, an increase from $31.8 million in the prior quarter[42]