Western Alliance Bancorporation Reports Fourth Quarter and Full Year 2025 Financial Results

Core Insights - Western Alliance Bancorporation reported strong financial results for Q4 and full year 2025, with record net interest income, revenues, and pre-provision net revenue (PPNR) [1][2] - The company achieved a net income of $293.2 million for Q4 2025, a 12.6% increase from Q3 2025, and a 32.8% increase year-over-year [1][2] - Full year net income reached $990.6 million, up 25.8% from the previous year, with earnings per share increasing by 23.1% to $8.73 [1][2] Financial Highlights - Q4 2025 net income was $293.2 million, with earnings per share of $2.59, compared to $260.5 million and $2.28 in Q3 2025 [1][2] - Full year net revenue was $3.5 billion, a 12.0% increase from the previous year, while non-interest expenses rose by 4.3% [1][2] - The efficiency ratio for Q4 2025 was 55.7%, improved from 58.9% in Q4 2024 [1][2] Loan and Deposit Growth - HFI loans increased by $2.0 billion in Q4 2025, totaling $58.7 billion, with a loan-to-deposit ratio of 76.0% [1][3] - Total deposits were $77.2 billion, a decrease of $88 million from Q3 2025, but an increase of $10.8 billion year-over-year [1][3] - The company reported impressive quarterly loan growth, contributing to a total asset increase to approximately $93 billion [1][2] Asset Quality - Nonperforming loans to funded HFI loans decreased to 0.85% in Q4 2025 from 0.92% in Q3 2025 [1][3] - The provision for credit losses was $73.0 million for Q4 2025, down from $80.0 million in Q3 2025 [2][3] - Criticized loans decreased by $15 million during the quarter, totaling $1.3 billion [4] Capital Position - Total equity increased to $7.9 billion at December 31, 2025, up from $7.7 billion at September 30, 2025 [3][4] - The common equity tier 1 capital ratio was 11.0% at December 31, 2025, compared to 11.3% at September 30, 2025 [3][4] - Tangible book value per share rose to $61.29, a 17.3% increase year-over-year [1][3] Performance Metrics - The net interest margin for Q4 2025 was 3.51%, slightly down from 3.53% in Q3 2025 [2][3] - Return on average assets was 1.23% for Q4 2025, compared to 1.12% in Q4 2024 [1][2] - The company repurchased 0.7 million shares for $57.5 million during Q4 2025 [3][4]