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

PHOENIX--( BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL):

Net income

Earnings per share

PPNR 1

Net interest margin

Efficiency ratio 1

Book value per

common share

$293.2 million

$2.59

$428.7 million

3.51%

55.7%

$67.20

46.5% 1, adjusted for deposit costs

$61.29 1, excluding

goodwill and intangibles

CEO COMMENTARY:

“Western Alliance delivered exceptional results to close out 2025, highlighted by record net interest income, revenues, and PPNR¹. Outstanding loan and deposit growth, gathering strength in commercial banking non-interest income, improved efficiency, and a steady net interest margin were key factors behind our solid operating leverage and strong financial performance. These results position us to sustain a strong earnings trajectory in 2026," said Kenneth A. Vecchione, President and Chief Executive Officer. "Impressive quarterly loan growth of $2.0 billion boosted total assets to approximately $93 billion and PPNR¹ by 35.4% annualized to $429 million. Asset quality remained steady as total criticized assets declined $8 million quarterly. Overall, we achieved earnings per share of $2.59 for the quarter, 32.8% higher than Q4 2024, which resulted in a return on assets of 1.23%, a return on tangible common equity 1 of 16.9%, while tangible book value per share 1 rose 17.3% year-over-year to $61.29."

"Our full year results directly reflect the success of our credit and deposit platforms, while maintaining our commitment to sound asset quality management. Net charge-offs to average loans were 0.24% for the year, with a nonperforming assets to total assets ratio of 0.69%. Our net revenue growth drove a substantial increase in earnings as PPNR 1 climbed 25.9% over the prior year to $1.4 billion, with net income of $991 million and earnings per share up 23.1% to $8.73.”

LINKED-QUARTER BASIS

FULL YEAR

FINANCIAL HIGHLIGHTS:

FINANCIAL POSITION RESULTS:

LOANS AND ASSET QUALITY:

KEY PERFORMANCE METRICS:

Tangible book value per share 1, net of tax, of $61.29, an increase of 17.3% from $52.27

1See Reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income totaled $766.2 million in the fourth quarter 2025, an increase of $15.8 million, or 2.1%, from $750.4 million in the third quarter 2025, and an increase of $99.7 million, or 15.0%, compared to the fourth quarter 2024. The increase in net interest income from the third quarter 2025 was largely due to higher average interest earning asset balances. The increase in net interest income from the fourth quarter 2024 was driven by an increase in average interest earning asset balances and lower rates on interest bearing liabilities, partially offset by decreased yields on interest earning assets.

The Company recorded a provision for credit losses of $73.0 million in the fourth quarter 2025, a decrease of $7.0 million from $80.0 million in the third quarter 2025, and an increase of $13.0 million from $60.0 million in the fourth quarter 2024. The provision for credit losses during the fourth quarter 2025 was primarily driven by higher net charge-offs of $44.6 million and loan growth.

The Company’s net interest margin was 3.51% in the fourth quarter 2025, a decrease from 3.53% in the third quarter 2025, and an increase from 3.48% in the fourth quarter 2024. Net interest margin decreased from the third quarter 2025 due to lower yields on interest earning assets, partially offset by lower rates on deposits and short-term borrowings. The decrease in net interest margin from the fourth quarter 2024 was primarily driven by the impact of a lower rate environment on interest earning asset yields, partially offset by lower rates on interest bearing liabilities.

Non-interest income was $214.7 million for the fourth quarter 2025, compared to $187.8 million for the third quarter 2025, and $171.9 million for the fourth quarter 2024. The increase in non-interest income of $26.9 million from the third quarter 2025 was primarily due to increases in service charges and fees of $33.1 million and net gain on mortgage loan origination and sale activities of $15.6 million. These increases were partially offset by a decrease in net loan servicing (loss) revenue of $20.5 million. The increase in non-interest income of $42.8 million from the fourth quarter 2024 was primarily driven by increases in service charges and fees, net gain on mortgage loan origination and sale activities, and other non-interest income, primarily due to an increase in rental income from OREO properties. These increases were partially offset by a decrease in net loan servicing (loss) revenue.

Net revenue totaled $980.9 million for the fourth quarter 2025, an increase of $42.7 million, or 4.6%, compared to $938.2 million for the third quarter 2025, and an increase of $142.5 million, or 17.0%, compared to $838.4 million for the fourth quarter 2024.

Non-interest expense was $552.2 million for the fourth quarter 2025, compared to $544.4 million for the third quarter 2025, and $519.0 million for the fourth quarter 2024. The increase in non-interest expense of $7.8 million from the third quarter 2025 was primarily due to increases of $8.2 million in salaries and employee benefits and $5.5 million in both legal, professional, and directors' fees and business development and marketing expenses, partially offset by decreases of $7.7 million in other non-interest expense, primarily related to OREO properties, and $6.8 million in insurance costs. The increase in non-interest expense of $33.2 million from the fourth quarter 2024 was primarily attributable to increased salaries and employee benefits of $36.3 million and data processing costs of $9.6 million, partially offset by decreased insurance costs of $19.0 million. The Company’s efficiency ratio, adjusted for deposit costs 1, was 46.5% for the fourth quarter 2025, compared to 47.8% in the third quarter 2025, and 51.1% for the fourth quarter 2024.

Income tax expense was $62.5 million for the fourth quarter 2025, compared to $53.3 million for the third quarter 2025, and $42.5 million for the fourth quarter 2024. The increase in income tax expense from the third quarter 2025 and the fourth quarter 2024 was primarily driven by increased pre-tax income.

Net income was $293.2 million for the fourth quarter 2025, an increase of $32.7 million from $260.5 million for the third quarter 2025, and an increase of $76.3 million from $216.9 million for the fourth quarter 2024. Earnings per share totaled $2.59 for the fourth quarter 2025, compared to $2.28 for the third quarter 2025, and $1.95 for the fourth quarter 2024.

The Company believes its pre-provision net revenue 1 ("PPNR") is a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the fourth quarter 2025, the Company’s PPNR 1 was $428.7 million, up $34.9 million from $393.8 million in the third quarter 2025, and up $109.3 million from $319.4 million in the fourth quarter 2024.

The Company had 3,769 full-time equivalent employees and 57 offices at December 31, 2025, compared to 3,701 full-time equivalent employees and 57 offices at September 30, 2025, and 3,524 full-time equivalent employees and 56 offices at December 31, 2024.

1 See Reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees, totaled $58.7 billion at December 31, 2025, compared to $56.6 billion at September 30, 2025, and $53.7 billion at December 31, 2024. The increase in HFI loans of $2.0 billion from the prior quarter was primarily driven by an increase of $2.2 billion in commercial and industrial loans, partially offset by a decrease in commercial real estate non-owner occupied loans of $147 million. The increase in HFI loans of $5.0 billion from December 31, 2024 was primarily driven by increases of $4.8 billion, $472 million, and $326 million in commercial and industrial, commercial real estate non-owner occupied, and residential real estate loans, respectively, partially offset by decreases of $424 million and $142 million in construction and land development and commercial real estate owner occupied loans, respectively. HFS loans totaled $3.5 billion at December 31, 2025 and September 30, 2025, and $2.3 billion at December 31, 2024. The increase in HFS loans of $1.2 billion from December 31, 2024 was primarily driven by increases of $793 million, $204 million, and $132 million in government-insured or guaranteed, agency-conforming, and non-agency mortgage loans, respectively.

The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.78%, 0.78%, and 0.70% at December 31, 2025, September 30, 2025, and December 31, 2024, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.87% at December 31, 2025, 0.85% at September 30, 2025, and 0.77% at December 31, 2024. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $8.1 billion, $8.2 billion, and $8.6 billion as of December 31, 2025, September 30, 2025, and December 31, 2024, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.8 million as of December 31, 2025 and September 30, 2025, and $11.4 million as of December 31, 2024. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 1.01% at December 31, 2025, 1.00% at September 30, 2025, and 0.92% at December 31, 2024.

Deposits totaled $77.2 billion at December 31, 2025, a decrease of $88 million from September 30, 2025, and an increase of $10.8 billion from $66.3 billion at December 31, 2024. By deposit type, the decrease from the prior quarter is primarily attributable to a decrease of $2.3 billion from non-interest bearing deposits, partially offset by increases of $2.0 billion and $234 million in interest-bearing demand deposits and certificates of deposit, respectively. The modest $88 million decrease reflects not only changes in customer deposit mix, but also the fourth-quarter seasonal runoff in mortgage related balances, which accounted for a $3.1 billion decrease. From December 31, 2024, non-interest bearing, savings and money market, and interest-bearing demand deposits increased $5.5 billion, $3.4 billion, and $2.5 billion, respectively, partially offset by a decrease in certificates of deposit of $605 million. Non-interest bearing deposits totaled $24.4 billion at December 31, 2025, compared to $26.6 billion at September 30, 2025, and $18.8 billion at December 31, 2024.

The table below shows the Company's deposit types as a percentage of total deposits:

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Non-interest bearing

31.5 %

34.5 %

28.4 %

Interest-bearing demand

23.9

21.3

23.9

Savings and money market

31.9

32.0

Certificates of deposit

12.7

12.4

15.7

The Company’s ratio of HFI loans to deposits was 76.0% at December 31, 2025, compared to 73.3% at September 30, 2025, and 80.9% at December 31, 2024.

Borrowings totaled $5.2 billion at December 31, 2025, $3.9 billion at September 30, 2025, and $5.6 billion at December 31, 2024. Borrowings increased $1.4 billion from September 30, 2025 driven by a $2.9 billion increase in short-term borrowings, partially offset by a $1.5 billion decrease in long-term borrowings. Borrowings decreased $333 million from December 31, 2024, reflecting a $1.0 billion decrease in long-term borrowings, partially offset by an increase in short-term borrowings of $696 million.

Qualifying debt totaled $1.1 billion at December 31, 2025, compared to $681 million and $899 million at September 30, 2025 and December 31, 2024, respectively. The increase in qualifying debt from September 30, 2025 was primarily due to the issuance of $400 million of subordinated debt during the quarter ended December 31, 2025. The increase in qualifying debt from December 31, 2024 was primarily due to the issuance of $400 million of subordinated debt, partially offset by the repayment of $225 million of subordinated debt during the quarter ended June 30, 2025.

Total equity was $7.9 billion at December 31, 2025, compared to $7.7 billion at September 30, 2025, and $6.7 billion at December 31, 2024. The increase in total equity from the prior quarter was primarily due to net income of $293.2 million and net AOCI gains of $65 million, partially offset by cash dividends paid during the fourth quarter, comprised of $46.1 million or $0.42 per common share, $3.2 million or $0.27 per depositary share, and $7.1 million on preferred stock of the Company's REIT subsidiary. In addition, the Company repurchased 0.7 million shares for $57.5 million during the fourth quarter of 2025 under the Company's $300 million share repurchase program. The increase in equity from December 31, 2024 was primarily driven by net income and the issuance of preferred stock from the Company's REIT subsidiary, partially offset by dividends to stockholders and share repurchases.

The Company's common equity tier 1 capital ratio was 11.0% at December 31, 2025, compared to 11.3% at September 30, 2025 and December 31, 2024. At December 31, 2025, tangible common equity, net of tax 1, was 7.3% of tangible assets 1 and total capital was 14.5% of risk-weighted assets. The Company’s tangible book value per share 1 was $61.29 at December 31, 2025, an increase of 4.7% from $58.56 at September 30, 2025, and an increase of 17.3% from $52.27 at December 31, 2024. The increase in tangible book value per share from September 30, 2025 and December 31, 2024 was primarily attributable to net income.

Total assets increased $1.8 billion, or 2.0%, to $92.8 billion at December 31, 2025 from $91.0 billion at September 30, 2025, and increased 14.6% from $80.9 billion at December 31, 2024. The increase in total assets from September 30, 2025 was primarily driven by increased HFI loans and investment securities, partially offset by a decrease in cash. The increase in total assets from December 31, 2024 was primarily driven by increases in HFI and HFS loans and investment securities.

Asset Quality

Provision for credit losses totaled $73.0 million for the fourth quarter 2025, compared to $80.0 million for the third quarter 2025, and $60.0 million for the fourth quarter 2024. Net loan charge-offs in the fourth quarter 2025 totaled $44.6 million, or 0.31% of average loans (annualized), compared to $31.1 million, or 0.22%, in the third quarter 2025, and $34.1 million, or 0.25%, in the fourth quarter 2024.

Nonaccrual loans decreased $22 million to $500 million during the quarter and increased $24 million from December 31, 2024. Loans past due 90 days and still accruing interest totaled $66 million at December 31, 2025, $49 million at September 30, 2025, and zero at December 31, 2024 (excluding government guaranteed loans of $290 million, $282 million, and $326 million, respectively). Loans past due 30-89 days and still accruing interest totaled $108 million at December 31, 2025, a decrease from $196 million at September 30, 2025, and an increase from $92 million at December 31, 2024 (excluding government guaranteed loans of $145 million, $149 million, and $183 million, respectively). Criticized loans of $1.3 billion decreased $15 million during the quarter and decreased $73 million from December 31, 2024.

Repossessed assets totaled $137 million at December 31, 2025, compared to $130 million at September 30, 2025, and $52 million at December 31, 2024. Classified assets of $1.1 billion at December 31, 2025 decreased $41 million from September 30, 2025, and increased $79 million from December 31, 2024.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses 2, a common regulatory measure of asset quality, was 13.3% at December 31, 2025, compared to 14.3% at September 30, 2025, and 14.2% at December 31, 2024.

1 See Reconciliation of Non-GAAP Financial Measures.

2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter and full year 2025 financial results at 12:00 p.m. ET on Tuesday, January 27, 2026. Participants may access the call by dialing 1-833-470-1428 and using access code 336835 or via live audio webcast using the website link https://events.q4inc.com/attendee/372994694. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET January 27th through 1:00 p.m. ET February 3rd by dialing 1-866-813-9403, using access code 931710.

Reclassifications

Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Use of Non-GAAP Financial Information

This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, including our deposits, liquidity and funding, changes in economic conditions and related impacts on the Company's business, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; any adverse determination by a court regarding the Cantor Group V loan and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loan; and other factors affecting the financial services industry generally or the banking industry in particular.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise, except to the extent required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements.

About Western Alliance Bancorporation

Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Midcap Banks list. For more information on offerings, subsidiaries and affiliates, visit www.westernalliancebank.com or follow Western Alliance Bank on LinkedIn

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

Selected Balance Sheet Data:

As of December 31,

2025

2024

Change %

(in millions)

Total assets

92,774

80,934

14.6

Loans held for sale

3,498

2,286

53.0

HFI loans, net of deferred fees

58,677

53,676

9.3

Investment securities

20,438

15,095

35.4

Total deposits

77,159

66,341

16.3

Borrowings

5,240

5,573

(6.0

)

Qualifying debt

1,076

899

19.7

Total equity

7,946

6,707

18.5

Tangible common equity, net of tax (1)

6,711

5,755

16.6

Common equity Tier 1 capital

7,002

6,311

10.9

Selected Income Statement Data:

For the Three Months Ended December 31,

For the Year Ended December 31,

2025

2024

Change %

2025

2024

Change %

(in millions, except per share data)

Interest income

1,217.4

1,138.6

6.9

4,692.9

4,541.1

3.3

Interest expense

451.2

472.1

(4.4

)

1,828.1

1,922.2

(4.9

)

Net interest income

766.2

666.5

15.0

2,864.8

2,618.9

9.4

Provision for credit losses

73.0

60.0

21.7

224.1

145.9

53.6

Net interest income after provision for credit losses

693.2

606.5

14.3

2,640.7

2,473.0

6.8

Non-interest income

214.7

171.9

24.9

678.2

543.2

24.9

Non-interest expense

552.2

519.0

6.4

2,111.7

2,025.0

4.3

Income before income taxes

355.7

259.4

37.1

1,207.2

991.2

21.8

Income tax expense

62.5

42.5

47.1

216.6

203.5

6.4

Net income

293.2

216.9

35.2

990.6

787.7

25.8

Net income attributable to noncontrolling interest

7.1

—

21.6

—

Net income attributable to Western Alliance

286.1

216.9

31.9

969.0

787.7

23.0

Dividends on preferred stock

3.2

—

12.8

—

Net income available to common stockholders

282.9

213.7

32.4

956.2

774.9

23.4

Diluted earnings per common share

2.59

1.95

32.8

8.73

7.09

23.1

(1)

See Reconciliation of Non-GAAP Financial Measures.

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

Common Share Data:

At or For the Three Months Ended December 31,

For the Year Ended December 31,

2025

2024

Change %

2025

2024

Change %

Diluted earnings per common share

2.59

1.95

32.8

8.73

7.09

23.1

Book value per common share

67.20

58.24

15.4

Tangible book value per common share, net of tax (1)

61.29

52.27

17.3

Average common shares outstanding

(in millions):

Basic

108.4

108.7

(0.3

)

108.8

108.6

0.2

Diluted

109.3

109.6

(0.3

)

109.5

109.3

0.2

Common shares outstanding

109.5

110.1

(0.5

)

Selected Performance Ratios:

Return on average assets (2)

1.23

1.04

18.3

1.12

0.99

13.1

Return on average tangible common equity (1, 2)

16.9

14.6

15.8

15.3

14.0

9.3

Net interest margin (2)

3.51

3.48

0.9

3.51

3.58

(2.0

)

Efficiency ratio (1)

55.7

61.2

(9.0

)

58.9

63.2

(6.8

)

Efficiency ratio, adjusted for deposit costs (1)

46.5

51.1

(9.0

)

50.2

53.1

(5.5

)

HFI loan to deposit ratio

76.0

80.9

(6.1

)

Asset Quality Ratios:

Net charge-offs to average loans outstanding (2)

0.31

0.25

24.0

0.24

0.18

33.3

Nonaccrual loans to funded HFI loans

0.85

0.89

(4.5

)

Nonaccrual loans and repossessed assets to total assets

0.69

0.65

6.2

Allowance for loan losses to funded HFI loans

0.78

0.70

11.4

Allowance for loan losses to nonaccrual HFI loans

16.5

Allowance for credit losses to nonaccrual HFI loans

102

17.2

Capital Ratios:

Dec 31, 2025

Sep 30, 2025

Dec 31, 2024

Tangible common equity (1)

7.3 %

7.1 %

7.2 %

Common Equity Tier 1 (3)

11.0

11.3

Tier 1 Leverage ratio (3)

8.2

8.1

Tier 1 Capital (3)

12.1

12.4

11.9

Total Capital (3)

14.5

14.2

14.1

(1)

See Reconciliation of Non-GAAP Financial Measures.

(2)

Annualized on an actual/actual basis for periods less than 12 months.

(3)

Capital ratios for December 31, 2025 are preliminary.

Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

Three Months Ended December 31,

Year Ended December 31,

2025

2024

2025

2024

(in millions, except per share data)

Interest income:

Loans

936.2

915.2

3,679.8

3,629.1

Investment securities

221.6

179.4

822.8

711.0

Other

59.6

44.0

190.3

201.0

Total interest income

1,217.4

1,138.6

4,692.9

4,541.1

Interest expense:

Deposits

383.5

387.2

1,537.8

1,600.2

Qualifying debt

9.0

9.4

32.8

38.0

Borrowings

58.7

75.5

257.5

284.0

Total interest expense

451.2

472.1

1,828.1

1,922.2

Net interest income

766.2

666.5

2,864.8

2,618.9

Provision for credit losses

73.0

60.0

224.1

145.9

Net interest income after provision for credit losses

693.2

606.5

2,640.7

2,473.0

Non-interest income:

Service charges and fees

73.6

39.7

194.3

109.6

Net gain on mortgage loan origination and sale activities

91.1

67.9

255.5

206.3

Net loan servicing (loss) revenue

(1.4

)

24.7

77.8

121.5

Income from bank owned life insurance

11.8

12.1

46.0

27.8

Gain on sales of investment securities

7.4

7.2

29.4

17.4

Fair value gain adjustments, net

3.5

2.4

12.9

7.5

Income (loss) from equity investments

12.2

11.1

18.1

38.2

Other

16.5

6.8

44.2

14.9

Total non-interest income

214.7

171.9

678.2

543.2

Non-interest expenses:

Salaries and employee benefits

201.7

165.4

757.5

631.1

Deposit costs

171.2

174.5

630.5

693.2

Data processing

48.9

39.3

187.2

149.7

Legal, professional, and directors' fees

33.6

28.7

115.9

109.4

Insurance

17.7

36.7

117.5

164.8

Occupancy

19.7

19.6

70.6

73.1

Loan servicing expenses

17.7

17.8

69.2

68.1

Loan acquisition and origination expenses

7.9

5.7

26.2

21.5

Business development and marketing

11.1

28.7

32.7

Other

22.7

20.2

108.4

81.4

Total non-interest expense

552.2

519.0

2,111.7

2,025.0

Income before income taxes

355.7

259.4

1,207.2

991.2

Income tax expense

62.5

42.5

216.6

203.5

Net income

293.2

216.9

990.6

787.7

Net income attributable to noncontrolling interest

7.1

—

21.6

—

Net income attributable to Western Alliance

286.1

216.9

969.0

787.7

Dividends on preferred stock

3.2

12.8

Net income available to common stockholders

282.9

213.7

956.2

774.9

Earnings per common share:

Diluted shares

109.3

109.6

109.5

109.3

Diluted earnings per share

2.59

1.95

8.73

7.09

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(in millions, except per share data)

Interest income:

Loans

936.2

948.3

914.3

881.0

915.2

Investment securities

221.6

231.7

201.5

168.0

179.4

Other

59.6

45.5

38.6

46.6

44.0

Total interest income

1,217.4

1,225.5

1,154.4

1,095.6

1,138.6

Interest expense:

Deposits

383.5

398.2

377.8

378.3

387.2

Qualifying debt

9.0

6.3

8.2

9.3

9.4

Borrowings

58.7

70.6

70.8

57.4

75.5

Total interest expense

451.2

475.1

456.8

445.0

472.1

Net interest income

766.2

750.4

697.6

650.6

666.5

Provision for credit losses

73.0

80.0

39.9

31.2

60.0

Net interest income after provision for credit losses

693.2

670.4

657.7

619.4

606.5

Non-interest income:

Service charges and fees

73.6

40.5

39.7

40.5

39.7

Net gain on mortgage loan origination and sale activities

91.1

75.5

39.4

49.5

67.9

Net loan servicing (loss) revenue

(1.4

)

19.1

38.3

21.8

24.7

Income from bank owned life insurance

11.8

11.0

11.4

12.1

Gain on sales of investment securities

7.4

8.5

11.4

2.1

7.2

Fair value gain adjustments, net

3.5

8.3

0.1

1.0

2.4

Income (loss) from equity investments

12.2

7.8

2.9

(4.8

)

11.1

Other

16.5

16.3

5.5

5.9

6.8

Total non-interest income

214.7

187.8

148.3

127.4

171.9

Non-interest expenses:

Salaries and employee benefits

201.7

193.5

179.9

182.4

165.4

Deposit costs

171.2

175.1

147.4

136.8

174.5

Data processing

48.9

48.1

45.0

45.2

39.3

Legal, professional, and directors' fees

33.6

28.1

25.3

28.9

28.7

Insurance

17.7

24.5

37.4

37.9

36.7

Occupancy

19.7

16.8

16.9

17.2

19.6

Loan servicing expenses

17.7

15.0

20.1

16.4

17.8

Loan acquisition and origination expenses

7.9

7.3

5.8

5.2

5.7

Business development and marketing

11.1

5.6

6.1

5.9

11.1

Other

22.7

30.4

30.8

24.5

20.2

Total non-interest expense

552.2

544.4

514.7

500.4

519.0

Income before income taxes

355.7

313.8

291.3

246.4

259.4

Income tax expense

62.5

53.3

53.5

47.3

42.5

Net income

293.2

260.5

237.8

199.1

216.9

Net income attributable to noncontrolling interest

7.1

7.4

—

Net income attributable to Western Alliance

286.1

253.4

230.4

199.1

216.9

Dividends on preferred stock

3.2

Net income available to common stockholders

282.9

250.2

227.2

195.9

213.7

Earnings per common share:

Diluted shares

109.3

109.8

109.6

Diluted earnings per share

2.59

2.28

2.07

1.79

1.95

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(in millions)

Assets:

Cash and due from banks

3,596

5,756

2,767

3,279

4,096

Investment securities

20,438

18,841

18,601

15,868

15,095

Loans held for sale

3,498

3,502

3,022

3,238

2,286

Loans held for investment:

Commercial and industrial

27,928

25,734

24,920

24,117

23,128

Commercial real estate - non-owner occupied

10,340

10,487

10,255

10,040

9,868

Commercial real estate - owner occupied

1,683

1,682

1,749

1,787

1,825

Construction and land development

4,055

4,065

4,526

4,504

4,479

Residential real estate

14,652

14,651

14,465

14,275

14,326

Consumer

Loans HFI, net of deferred fees

58,677

56,646

55,939

54,761

53,676

Allowance for loan losses

(461

)

(440

)

(395

)

(389

)

(374

)

Loans HFI, net of deferred fees and allowance

58,216

56,206

55,544

54,372

53,302

Mortgage servicing rights

1,494

1,213

1,044

1,241

1,127

Premises and equipment, net

442

416

365

361

Operating lease right-of-use asset

131

134

130

125

128

Other assets acquired through foreclosure, net

137

130

218

Bank owned life insurance

1,057

1,045

1,033

1,022

1,011

Goodwill and other intangibles, net

649

651

653

656

659

Other assets

3,116

3,076

3,348

2,830

2,817

Total assets

92,774

90,970

86,725

83,043

80,934

Liabilities and stockholders' equity:

Liabilities:

Deposits

Non-interest bearing deposits

24,353

26,628

22,997

22,009

18,846

Interest bearing:

Demand

18,416

16,422

15,674

15,507

15,878

Savings and money market

24,586

24,627

22,231

21,728

21,208

Certificates of deposit

9,804

9,570

10,205

10,078

10,409

Total deposits

77,159

77,247

71,107

69,322

66,341

Borrowings

5,240

3,862

6,052

4,151

5,573

Qualifying debt

1,076

681

678

898

899

Operating lease liability

160

164

160

154

159

Accrued interest payable and other liabilities

1,193

1,326

1,321

1,303

1,255

Total liabilities

84,828

83,280

79,318

75,828

74,227

Equity:

Preferred stock

295

Common stock and additional paid-in capital

2,095

2,140

2,136

2,125

2,120

Retained earnings

5,607

5,371

5,165

4,980

4,826

Accumulated other comprehensive loss

(344

)

(409

)

(482

)

(478

)

(534

)

Total Western Alliance stockholders' equity

7,653

7,397

7,114

6,922

6,707

Noncontrolling interest in subsidiary

293

—

Total equity

7,946

7,690

7,407

7,215

6,707

Total liabilities and equity

92,774

90,970

86,725

83,043

80,934

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(dollars in millions)

Allowance for loan losses

Balance, beginning of period

440.4

394.7

388.6

373.8

356.6

Provision for credit losses (1)

64.8

76.8

35.7

40.6

51.3

Recoveries of loans previously charged-off:

Commercial and industrial

1.7

0.7

0.6

1.0

0.1

Commercial real estate - non-owner occupied

—

5.1

0.6

—

Commercial real estate - owner occupied

0.4

—

0.1

0.2

Construction and land development

1.5

—

Residential real estate

—

Consumer

0.1

—

Total recoveries

3.7

0.7

5.7

1.7

0.3

Loans charged-off:

Commercial and industrial

28.9

12.4

17.0

13.0

24.8

Commercial real estate - non-owner occupied

10.7

12.9

17.4

14.5

9.6

Commercial real estate - owner occupied

—

0.2

—

Construction and land development

8.6

6.3

0.6

—

Residential real estate

—

0.1

—

Consumer

0.1

0.2

—

Total loans charged-off

48.3

31.8

35.3

27.5

34.4

Net loan charge-offs

44.6

31.1

29.6

25.8

34.1

Balance, end of period

460.6

440.4

394.7

388.6

373.8

Allowance for unfunded loan commitments

Balance, beginning of period

42.3

39.2

35.1

39.5

37.6

Provision for (recovery of) credit losses (1)

7.3

3.1

4.1

(4.4

)

1.9

Balance, end of period (2)

49.6

42.3

39.2

35.1

39.5

Components of the allowance for credit losses on loans

Allowance for loan losses

460.6

440.4

394.7

388.6

373.8

Allowance for unfunded loan commitments

49.6

42.3

39.2

35.1

39.5

Total allowance for credit losses on loans

510.2

482.7

433.9

423.7

413.3

Net charge-offs to average loans - annualized

0.31

0.22

0.20

0.25

Allowance ratios

Allowance for loan losses to funded HFI loans (3)

0.78

0.71

0.70

Allowance for credit losses to funded HFI loans (3)

0.87

0.85

0.78

0.77

Allowance for loan losses to nonaccrual HFI loans

Allowance for credit losses to nonaccrual HFI loans

102

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. For the three months ended December 31, 2025, provision for credit losses for HTM investment securities totaled $0.9 million. The allowance for credit losses on HTM investment securities totaled $12.9 million as of December 31, 2025.

(2)

The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.

(3)

Ratio includes an allowance for credit losses of $11.8 million as of December 31, 2025 related to a pool of loans covered under three separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(dollars in millions)

Nonaccrual loans and repossessed assets

Nonaccrual loans

500

522

427

451

476

Nonaccrual loans to funded HFI loans

0.85

0.92

0.76

0.82

0.89

Repossessed assets

137

130

218

Nonaccrual loans and repossessed assets to total assets

0.69

0.72

0.74

0.60

0.65

Loans Past Due

Loans past due 90 days, still accruing (1)

—

Loans past due 90 days, still accruing to funded HFI loans

0.11

0.09

0.08

—

Loans past due 30 to 89 days, still accruing (2)

108

196

175

182

Loans past due 30 to 89 days, still accruing to funded HFI loans

0.18

0.35

0.31

0.33

0.17

Other credit quality metrics

Special mention loans

325

292

444

460

392

Special mention loans to funded HFI loans

0.55

0.52

0.79

0.84

0.73

Classified loans on accrual

450

476

615

693

480

Classified loans on accrual to funded HFI loans

0.77

0.84

1.10

1.27

0.89

Classified assets

1,088

1,129

1,261

1,195

1,009

Classified assets to total assets

1.17

1.24

1.45

1.44

1.25

(1)

Excludes government guaranteed residential mortgage loans of $290 million, $282 million, $326 million, $275 million, and $326 million as of each respective date in the table above.

(2)

Excludes government guaranteed residential mortgage loans of $145 million, $149 million, $168 million, $161 million, and $183 million as of each respective date in the table above.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

December 31, 2025

September 30, 2025

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

(dollars in millions)

Interest earning assets

Loans HFS

5,195

75.2

5.74

5,009

77.1

6.11

Loans HFI:

Commercial and industrial

26,246

415.1

6.32

25,216

410.9

6.51

CRE - non-owner occupied

10,454

182.5

6.93

10,473

190.8

7.23

CRE - owner occupied

1,695

24.0

5.74

1,688

25.2

6.05

Construction and land development

4,003

82.5

8.17

4,233

88.8

8.32

Residential real estate

14,690

156.6

4.23

14,557

155.1

4.23

Consumer

0.3

5.34

0.4

7.43

Total HFI loans (1), (2), (3), (4)

57,109

861.0

6.01

56,191

871.2

6.18

Investment securities:

Taxable

17,690

197.8

4.44

17,794

208.2

4.64

Tax-exempt

2,212

23.8

5.39

2,193

23.5

5.32

Total investment securities (1)

19,902

221.6

4.54

19,987

231.7

4.72

Cash and other

5,633

59.6

4.20

4,147

45.5

4.35

Total interest earning assets

87,839

1,217.4

5.54

85,334

1,225.5

5.74

Non-interest earning assets

Cash and due from banks

462

397

Allowance for credit losses

(459

)

(414

)

Bank owned life insurance

1,049

1,038

Other assets

5,310

4,957

Total assets

94,201

91,312

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing demand accounts

17,374

102.2

2.33

16,071

101.4

2.50

Savings and money market

24,113

180.9

2.98

23,373

189.4

3.21

Certificates of deposit

9,834

100.4

4.05

10,124

107.4

4.21

Total interest-bearing deposits

51,321

383.5

2.96

49,568

398.2

3.19

Short-term borrowings

3,243

33.7

4.13

2,577

30.2

4.66

Long-term debt

1,723

25.0

5.75

2,905

40.4

5.52

Qualifying debt

845

9.0

4.27

678

6.3

3.63

Total interest-bearing liabilities

57,132

451.2

3.13

55,728

475.1

3.38

Interest cost of funding earning assets

2.04

2.21

Non-interest-bearing liabilities

Non-interest-bearing deposits

27,524

26,438

Other liabilities

1,681

1,539

Equity

7,864

7,607

Total liabilities and equity

94,201

91,312

Net interest income and margin (5)

766.2

3.51

750.4

3.53

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.9 million and $9.7 million for the three months ended December 31, 2025 and September 30, 2025, respectively.

(2)

Included in the yield computation are net loan fees of $25.0 million and $28.1 million for the three months ended December 31, 2025 and September 30, 2025, respectively.

(3)

Interest income includes a reduction for earnings credits totaling $56.6 million and $64.9 million for the three months ended December 31, 2025 and September 30, 2025, respectively.

(4)

Includes non-accrual loans.

(5)

Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

December 31, 2025

December 31, 2024

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

(dollars in millions)

Interest earning assets

Loans HFS

5,195

75.2

5.74

4,542

67.3

5.90

Loans HFI:

Commercial and industrial

26,246

415.1

6.32

22,708

382.8

6.76

CRE - non-owner occupied

10,454

182.5

6.93

9,883

184.1

7.42

CRE - owner occupied

1,695

24.0

5.74

1,826

27.7

6.14

Construction and land development

4,003

82.5

8.17

4,571

100.1

8.72

Residential real estate

14,690

156.6

4.23

14,424

152.3

4.20

Consumer

0.3

5.34

0.9

6.57

Total loans HFI (1), (2), (3), (4)

57,109

861.0

6.01

53,464

847.9

6.34

Investment securities:

Taxable

17,690

197.8

4.44

13,550

155.0

4.55

Tax-exempt

2,212

23.8

5.39

2,269

24.4

5.36

Total investment securities (1)

19,902

221.6

4.54

15,819

179.4

4.67

Cash and other

5,633

59.6

4.20

3,481

44.0

5.03

Total interest earning assets

87,839

1,217.4

5.54

77,306

1,138.6

5.91

Non-interest earning assets

Cash and due from banks

462

316

Allowance for credit losses

(459

)

(364

)

Bank owned life insurance

1,049

1,003

Other assets

5,310

4,427

Total assets

94,201

82,688

Interest bearing liabilities

Interest bearing deposits:

Interest bearing demand accounts

17,374

102.2

2.33

14,555

101.3

2.77

Savings and money market accounts

24,113

180.9

2.98

19,895

167.8

3.36

Certificates of deposit

9,834

100.4

4.05

9,654

118.1

4.87

Total interest bearing deposits

51,321

383.5

2.96

44,104

387.2

3.49

Short-term borrowings

3,243

33.7

4.13

3,480

45.8

5.24

Long-term debt

1,723

25.0

5.75

1,861

29.7

6.34

Qualifying debt

845

9.0

4.27

898

9.4

4.19

Total interest bearing liabilities

57,132

451.2

3.13

50,343

472.1

3.73

Interest cost of funding earning assets

2.04

2.43

Non-interest bearing liabilities

Non-interest bearing deposits

27,524

24,200

Other liabilities

1,681

1,380

Equity

7,864

6,765

Total liabilities and equity

94,201

82,688

Net interest income and margin (5)

766.2

3.51

666.5

3.48

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.9 million and $10.0 million for the three months ended December 31, 2025 and 2024, respectively.

(2)

Included in the yield computation are net loan fees of $25.0 million and $22.1 million for the three months ended December 31, 2025 and 2024, respectively.

(3)

Interest income includes a reduction for earnings credits totaling of $56.6 million and $61.4 million for the three months ended December 31, 2025 and 2024, respectively.

(4)

Includes non-accrual loans.

(5)

Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Year Ended

December 31, 2025

December 31, 2024

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

(dollars in millions)

Interest earning assets

Loans HFS

4,844

292.9

6.05

3,531

216.4

6.13

Loans HFI:

Commercial and industrial

24,608

1,583.9

6.49

20,845

1,490.6

7.21

CRE - non-owner occupied

10,299

730.3

7.10

9,681

744.7

7.70

CRE - owner occupied

1,762

104.7

6.05

1,833

111.2

6.17

Construction and land development

4,232

351.7

8.31

4,747

440.1

9.28

Residential real estate

14,499

614.2

4.24

14,529

622.3

4.28

Consumer

2.1

6.70

3.8

7.00

Total loans HFI (1), (2), (3), (4)

55,431

3,386.9

6.14

51,689

3,412.7

6.63

Investment securities:

Taxable

15,919

726.9

4.57

13,159

616.0

4.68

Tax-exempt

2,218

95.9

5.42

2,230

95.0

5.34

Total investment securities (1)

18,137

822.8

4.67

15,389

711.0

4.78

Cash and other

4,344

190.3

4.38

3,656

201.0

5.50

Total interest earning assets

82,756

4,692.9

5.72

74,265

4,541.1

6.17

Non-interest earning assets

Cash and due from banks

384

293

Allowance for credit losses

(418

)

(357

)

Bank owned life insurance

1,032

589

Other assets

4,974

4,483

Total assets

88,728

79,273

Interest bearing liabilities

Interest bearing deposits:

Interest bearing demand accounts

16,259

400.7

2.46

16,155

480.7

2.98

Savings and money market accounts

22,617

705.6

3.12

17,462

610.2

3.49

Certificates of deposit

10,015

431.5

4.31

10,085

509.3

5.05

Total interest bearing deposits

48,891

1,537.8

3.15

43,702

1,600.2

3.66

Short-term borrowings

2,651

120.4

4.54

3,893

216.3

5.56

Long-term debt

2,444

137.1

5.61

830

67.7

8.16

Qualifying debt

811

32.8

4.05

896

38.0

4.25

Total interest bearing liabilities

54,797

1,828.1

3.34

49,321

1,922.2

3.90

Interest cost of funding earning assets

2.21

2.59

Non-interest bearing liabilities

Non-interest bearing deposits

24,926

22,017

Other liabilities

1,571

1,455

Equity

7,434

6,480

Total liabilities and equity

88,728

79,273

Net interest income and margin (5)

2,864.8

3.51

2,618.9

3.58

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $40.0 million and $39.5 million for the years ended December 31, 2025 and 2024, respectively.

(2)

Included in the yield computation are net loan fees of $102.4 million and $109.0 million for the years ended December 31, 2025 and 2024, respectively.

(3)

Interest income includes a reduction for earnings credits totaling $240.9 million and $239.8 million for the years ended December 31, 2025 and 2024, respectively.

(4)

Includes non-accrual loans.

(5)

Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

The tables below show the income statement classification for earnings credit amounts earned on non-interest bearing DDA:

Three Months Ended

12/31/2025

9/30/2025

6/30/2025

3/31/2025

12/31/2024

Income statement line item

(in millions)

Interest income

56.6

64.9

61.3

58.1

61.4

Service charges and fees

7.2

5.4

4.4

4.2

6.3

Deposit costs (1)

123.6

126.3

101.7

90.9

133.3

Total ECR costs

187.4

196.6

167.4

153.2

201.0

Year Ended December 31,

2025

2024

Income statement line item

(in millions)

Interest income

240.9

239.8

Service charges and fees

21.2

26.1

Deposit costs (1)

442.5

489.2

Total ECR costs

704.6

755.1

(1)

Earnings credits are a subset of total Deposit costs, which also include referral, reciprocal deposit and other costs.

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter:

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(in millions)

Net interest income

766.2

750.4

697.6

650.6

666.5

Total non-interest income

214.7

187.8

148.3

127.4

171.9

Net revenue

980.9

938.2

845.9

778.0

838.4

Total non-interest expense

552.2

544.4

514.7

500.4

519.0

Pre-provision net revenue (1)

428.7

393.8

331.2

277.6

319.4

Adjusted for:

Provision for credit losses

73.0

80.0

39.9

31.2

60.0

Income tax expense

62.5

53.3

53.5

47.3

42.5

Net income

293.2

260.5

237.8

199.1

216.9

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Efficiency Ratio (Tax Equivalent Basis) by Quarter:

Three Months Ended

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(dollars in millions)

Total non-interest expense

552.2

544.4

514.7

500.4

519.0

Less: Deposit costs

171.2

175.1

147.4

136.8

174.5

Total non-interest expense, excluding deposit costs

381.0

369.3

367.3

363.6

344.5

Divided by:

Total net interest income

766.2

750.4

697.6

650.6

666.5

Plus:

Tax equivalent interest adjustment

9.9

9.7

10.2

10.0

Total non-interest income

214.7

187.8

148.3

127.4

171.9

Less: Deposit costs

171.2

175.1

147.4

136.8

174.5

819.6

772.8

708.7

651.4

673.9

Efficiency ratio (2)

55.7

57.4

60.1

63.5

61.2

Efficiency ratio, adjusted for deposit costs (2)

46.5

47.8

51.8

55.8

51.1

Tangible Common Equity:

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Dec 31, 2024

(dollars and shares in millions, except per share data)

Total equity

$ 7,946

$ 7,690

$ 7,407

$ 7,215

$ 6,707

Less:

Goodwill and intangible assets, net

649

651

653

656

659

Preferred stock

295

Noncontrolling interest in subsidiary

293

—

Total tangible common equity

6,709

6,451

6,166

5,971

5,753

Plus: deferred tax - attributed to intangible assets

Total tangible common equity, net of tax

$ 6,711

$ 6,453

$ 6,168

$ 5,973

$ 5,755

Total assets

$ 92,774

$ 90,970

$ 86,725

$ 83,043

$ 80,934

Less: goodwill and intangible assets, net

649

651

653

656

659

Tangible assets

92,125

90,319

86,072

82,387

80,275

Plus: deferred tax - attributed to intangible assets

Total tangible assets, net of tax

$ 92,127

$ 90,321

$ 86,074

$ 82,389

$ 80,277

Tangible common equity ratio (3)

7.3 %

7.1 %

7.2 %

Common shares outstanding

109.5

110.2

110.4

110.1

Tangible book value per share, net of tax (3)

$ 61.29

$ 58.56

$ 55.87

$ 54.10

$ 52.27

Non-GAAP Financial Measures Footnotes

(1)

We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.

(2)

We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.

(3)

We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company.