Takeaways from WAL's Investor Day; Reasonable Goals & Positive Credit Comments

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Takeaways from WAL's Investor Day; Reasonable Goals & Positive Credit Comments

C O M PA N Y N O T E

M a y 1 2 , 2 0 2 6

Western Alliance Bancorporation (WAL) Overweight

CONCLUSION PRICE: US$76.95

We were impressed with WAL's well-attended Investor Day today that showcased TARGET: US$92.00

differentiated expertise, strategy and performance. Shares recovered midday and we Reflects 8.0x our 2027 EPS estimate.

believe it was partially related to the positive incremental credit commentary it provided

during the presentation that lent support for NPLs declining in 2H26 while still holding NCOs Matthew Clark

Managing Director, Piper Sandler & Co.within its 25-35 bps guidance range. We also think WAL did a great job of showcasing 212 466-7805, matthew.clark@psc.com

its industry expertise, methodical / diversified strategy while deepening relationships, and

Adam Kroll, CFA

impressive organic growth performance that is expected to continue. WAL laid out a Research Analyst, Piper Sandler & Co.

clear path to achieving reasonable medium-term (defined as 2.5-3.0 years) financial goals 312 267-5071, adam.kroll@psc.com

including a 16-17% ROATCE, 1.20-1.30% ROAA, and a 48% adjusted efficiency ratio Nick Branton

excluding any Basel III capital relief and stronger mortgage banking if rates decline. Research Analyst, Piper Sandler & Co.

312 281-3434, nick.branton@psc.com

• Strategic Vision & L-T Financial Outlook. CEO Ken Vecchione's keynote reinforced Changes Previous Current

the bank's long-term strategic vision of building a premier national commercial bank Rating — Overweight

through disciplined organic growth, with WAL outlining a framework for compounding Price Tgt — US$92.00

earnings across cycles without relying on acquisitions. The bank's model focuses FY26E EPS — US$9.50