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Sep 30
Western Alliance Q3 2025 Earnings Report
Western Alliance reported strong third quarter results with higher net income and earnings per share compared to the previous year.
Key Takeaways
Western Alliance Bancorporation delivered solid Q3 2025 performance, highlighted by $260.5 million in net income and $2.28 EPS, driven by record PPNR and strong loan and deposit growth.
Net income reached $260.5 million, up from $199.8 million in Q3 2024.
Earnings per share rose to $2.28, a 26.7% increase year-over-year.
Pre-provision net revenue hit a record $393.8 million for the quarter.
Total assets exceeded $90 billion, supported by $6.1 billion in deposit growth.
Western Alliance
Western Alliance
Forward Guidance
The company maintained a positive outlook supported by balance sheet growth, stable margins, and improved asset quality, though challenges in nonperforming loans and reserve build remain areas of focus.
Positive Outlook
- Continued loan and deposit growth during the quarter.
- Stable net interest margin maintained despite market conditions.
- Record-level pre-provision net revenue indicates strong earnings power.
- Tangible book value per share increased 12.7% YoY.
- Decline in criticized and classified assets supports asset quality.
Challenges Ahead
- Nonperforming loans increased due to Cantor Group V loan migration.
- Provision for credit losses more than doubled from prior quarter.
- Efficiency ratio still relatively high at 57.4%.
- Loan charge-offs remained at 0.22% of average loans.
- Repossessed assets jumped significantly YoY to $130 million.