WAL - Today Is Gonna Be The Day?

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WAL - Today Is Gonna Be The Day?

Truist Securities

Equity Research Report May 12, 2026

FINANCIALS: Regional Banks Western Alliance Bancorporation (WAL)

WAL - Today Is Gonna Be The Day? David Smith

212-319-3623

David.Smith@truist.com

We attended WAL's inaugural investor day in New York earlier today where the company

laid out a clear path to a sustainable 16-17% ROTCE target in the medium term (~2.5-3

Nick Moutafakis, CFA years) while attempting to assuage investor concerns that high velocity growth inevitably 212-590-0902

Nick.Moutafakis@truist.com leads to higher credit and/or profitability risk. Management shed more light on some of WAL's

niche businesses, with a hope that as these become better understood and the company

can go back to putting up a string of solid credit quarters, the company's valuation gap vs.

its return/growth profile should begin to dissipate over time. We also received some helpful

Current Price (May 12, $77.56 incremental updates on credit, which helped WAL swing from a modest underperformer vs.

2026) the KRX to a bit over a point of outperformance over the course of the session. Overall we

Stock Rating BUY appreciated the greater transparency, and while it will take some time for WAL to earn credit for its growth, perhaps we will look back on today as when the valuation gap at least started Unchanged

to close. In our view, a combination of improved profitability and valuation closer to peers

Price Target $90.00 (even if the gap doesn't close all the way) would mean a good amount of upside in the shares

Unchanged over the coming years. We reiterate our Buy rating.

Medium-Term Financial Targets. WAL laid out its plan to earn a 16-17% ROTCE in ~2.5-3

years through NIM expansion (3.60-3.70% target in part on lower deposit pricing), higher