Western Alliance Bancorporation (WAL)
NYSE:WAL
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Western Alliance
(NYSE:WAL)
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Rating:67Neutral
Price Target:
$89.00
â–²(12.10% Upside)
Action:Reiterated
Date:06/12/26
The score is anchored by mixed fundamentals: strong profitability and improving leverage are meaningfully offset by persistently weak/negative cash flow. Valuation is a clear positive (low P/E with a moderate dividend), while technicals show a constructive uptrend. Earnings-call guidance and sentiment were favorable (growth and efficiency momentum), but fraud-related charge-offs and higher deposit-cost assumptions remain important near-term risks.
Positive Factors
Profitability & Revenue Growth
Western Alliance’s TTM net margin (~17%) and ROE (~13%), alongside multi-year revenue expansion, indicate durable core earnings power. Strong profitability supports reinvestment, dividend coverage and the ability to absorb credit variability, sustaining franchise value over the medium term.
Negative Factors
Persistent Negative Cash Flow
Operating and free cash flow have been negative in the TTM and most recent annual periods, showing a persistent cash-generation gap. For a bank this raises reliance on external funding and balance-sheet actions, constraining flexibility for organic growth or unexpected stress events.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability & Revenue Growth
Western Alliance’s TTM net margin (~17%) and ROE (~13%), alongside multi-year revenue expansion, indicate durable core earnings power. Strong profitability supports reinvestment, dividend coverage and the ability to absorb credit variability, sustaining franchise value over the medium term.
Read all positive factors
Western Alliance Key Performance Indicators (KPIs)
Any
Income Before Taxes by Segment
Reports pre-tax earnings for each segment, isolating operating performance before the effects of taxes and one-time items. Lets investors see which lines drive core profitability, where expenses or credit provisions are eroding income, and which segments are most important for future earnings growth.
Reports pre-tax earnings for each segment, isolating operating performance before the effects of taxes and one-time items. Lets investors see which lines drive core profitability, where expenses or credit provisions are eroding income, and which segments are most important for future earnings growth.
Data provided by:
The Fly
The FlyWestern Alliance (WAL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.14B
Dividend Yield1.8%
Average Volume (3M)1.08M
Price to Earnings (P/E)9.5
Beta (1Y)1.47
Revenue Growth10.29%
EPS Growth17.94%
CountryUS
Employees3,562
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)8.66
Shares Outstanding109,185,360
10 Day Avg. Volume850,386
30 Day Avg. Volume1,077,350
Financial Highlights & Ratios
PEG Ratio0.41
Price to Book (P/B)1.20
Price to Sales (P/S)1.73
P/FCF Ratio-3.27
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue2.71
Enterprise Value/Gross Profit4.51
Enterprise Value/Ebitda11.28
Forecast
1Y Price Target
$88.00Price Target Upside10.85% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)9.57
Revenue Forecast (FY)$4.05B
Western Alliance Business Overview & Revenue Model
Company Description
Western Alliance Bancorporation serves as the holding entity for Western Alliance Bank, offering a broad spectrum of banking products and related financial services, with its primary operations centered in Arizona, California, and Nevada. The comp...
How the Company Makes Money
Western Alliance primarily makes money through (1) net interest income and (2) noninterest (fee-based) income. Net interest income is generated by taking in deposits and other funding sources and deploying those funds into interest-earning assets—...
Western Alliance Earnings Call Summary
Earnings Call Date:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 16, 2026
Earnings Call Sentiment Positive
The call conveyed strong underlying franchise momentum: robust deposit and loan growth, solid NII and PPNR expansion, improved efficiency, stable core asset quality excluding two material fraud-related charge-offs, and management confidence reflected in opportunistic buybacks and reiterated 2026 targets. The primary negatives were the sizeable one-time fraud-related charge-offs (LAM and Cantor Group 5) that reduced reported earnings and remain subject to uncertain recoveries, some mortgage volatility from March rate moves, and near-term pressure from higher deposit cost assumptions given removed rate-cut expectations. Overall, management framed the disruptions as largely behind them and provided an outlook showing revenue and margin tailwinds, leading to a favorable near-to-medium-term operating view.Positive Updates
Exceptional Deposit Growth
Quarterly deposit inflows of $5.6 billion (Q1), putting the company well on pace toward the $8 billion 2026 deposit growth target and providing flexibility to optimize funding and lower funding costs.
Negative Updates
Material Fraud-Related Charge-Offs
Charged off $126.4 million loan to Lucadia Asset Management (LAM) and $26 million related to Cantor Group 5 during the quarter; these items reduced net income by $62.1 million (approximately $0.57 per share net) and remain subject to ongoing legal/resolution processes with uncertain timing of recoveries.
Read all updates
Q1-2026 Updates
Positive
Negative
Exceptional Deposit Growth
Quarterly deposit inflows of $5.6 billion (Q1), putting the company well on pace toward the $8 billion 2026 deposit growth target and providing flexibility to optimize funding and lower funding costs.
Read all positive updates
Company Guidance
Management reiterated 2026 targets and provided detailed guidance: $6.0B of HFI loan growth and an $8.0B deposit growth target (deposit balances may be flat in Q2 then normalize in Q3, with a year‑end loan‑to‑deposit ratio in the mid‑70s), NII growth of 11–14% (now expected toward the upper end) with modest NIM expansion versus 2025 (Q1 NIM was 3.54%), deposit costs guided to $650–$700M, blended deposit beta ~65–70% (warehouse ~90–100%, Juris/HOA ~35%), total noninterest income ex‑securities +13–17%, total noninterest expense up 7–11% with operating expenses $1.6–$1.65B (incorporating $50M of identified savings), ACL metrics of 87 bps total ACL to funded loans (loan loss reserve 78 bps expected to trend to the low‑80s and total ACL into the low‑90s), core net charge‑offs 25–35 bps (expected around or slightly above the midpoint with declines in H2), CET1 target of 11% (tangible common equity ~6.8% in Q1), effective tax rate ~19%, and continued opportunistic $50M share repurchases in Q1 while keeping capital policy steady.Western Alliance Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
69
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.53B | 5.28B | 5.02B | 4.26B | 2.96B | 2.00B |
| Gross Profit | 3.32B | 3.22B | 2.95B | 2.50B | 2.42B | 1.92B |
| EBITDA | 1.33B | 1.34B | 1.11B | 1.02B | 1.39B | 1.17B |
| Net Income | 959.10M | 969.00M | 787.70M | 722.40M | 1.06B | 899.20M |
Balance Sheet | ||||||
| Total Assets | 98.85B | 92.77B | 80.93B | 70.86B | 67.73B | 55.98B |
| Cash, Cash Equivalents and Short-Term Investments | 18.50B | 13.96B | 8.53B | 12.74B | 8.13B | 6.71B |
| Total Debt | 6.84B | 6.48B | 6.63B | 8.30B | 7.38B | 2.54B |
| Total Liabilities | 90.94B | 84.83B | 74.23B | 64.78B | 62.38B | 51.02B |
| Stockholders Equity | 7.62B | 7.65B | 6.71B | 6.08B | 5.36B | 4.96B |
Cash Flow | ||||||
| Free Cash Flow | -1.65B | -2.79B | -2.83B | -442.90M | 2.10B | -2.72B |
| Operating Cash Flow | -1.53B | -2.68B | -2.74B | -328.60M | 2.25B | -2.65B |
| Investing Cash Flow | -8.83B | -9.96B | -5.97B | -2.16B | -13.13B | -14.71B |
| Financing Cash Flow | 15.63B | 12.13B | 11.23B | 3.02B | 11.41B | 15.21B |
Western Alliance Technical Analysis
Positive
79.39
Price Trends
78.39
Positive
79.88
Positive
81.35
Positive
Market Momentum
1.19
Negative
62.82
Neutral
78.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAL, the sentiment is Positive. The current price of 79.39 is above the 20-day moving average (MA) of 79.21, above the 50-day MA of 78.39, and below the 200-day MA of 81.35, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 78.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAL.
Western Alliance Risk Analysis
Western Alliance disclosed 41 risk factors in its most recent earnings report. Western Alliance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Western Alliance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.29B | 11.67 | 11.67% | 1.37% | 41.57% | 41.57% | |
78 Outperform | $10.74B | 12.42 | 11.93% | 1.40% | 6.64% | 17.78% | |
74 Outperform | $9.67B | 10.43 | 10.42% | 2.38% | 49.78% | 46.17% | |
71 Outperform | $11.98B | 11.54 | 10.80% | 2.49% | 5.84% | 37.42% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $9.14B | 9.46 | 12.88% | 1.80% | 10.29% | 17.94% |
* Financial Sector Average
WAL
Western Alliance
83.67
12.85
18.14%
UMBF
UMB Financial
135.37
36.05
36.30%
WBS
Webster Financial
73.91
23.70
47.20%
WTFC
Wintrust Financial
159.26
42.80
36.76%
SSB
SouthState Corporation
98.96
14.91
17.74%
Western Alliance Corporate Events
Executive/Board ChangesShareholder Meetings
Western Alliance Shareholders Back Board, Pay and Auditor
Positive
Jun 11, 2026
On June 10, 2026, Western Alliance held its Annual Meeting of Stockholders, with 90.3% of eligible shares represented, and shareholders elected all 13 director nominees to one-year terms expiring in 2027. Investors also approved, on a non-binding ...
Business Operations and StrategyFinancial Disclosures
Western Alliance Highlights Strategy and Growth at Investor Day
Positive
May 12, 2026
Western Alliance Bancorporation held an Investor Day in New York on May 12, 2026, where senior executives and board members outlined the bank’s strategic direction, diversified business mix, and financial performance to analysts and investor...
Business Operations and StrategyExecutive/Board Changes
Western Alliance Chief Banking Officer Resigns for CEO Role
Neutral
May 12, 2026
On May 8, 2026, Western Alliance Bancorporation announced that Stephen Curley, its Chief Banking Officer for National Business Lines, submitted his resignation to take a Chief Executive Officer role elsewhere in the financial services sector. The ...
Dividends
Western Alliance Declares Quarterly Common and Preferred Dividends
Positive
Apr 30, 2026
At its April 30, 2026 board meeting, Western Alliance Bancorporation declared a quarterly cash dividend of $0.42 per share on its common stock, payable on May 29, 2026 to shareholders of record as of May 14, 2026. The decision underscores the bank...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.