Western Alliance: Unpacking 2Q26 Results - Takeaways, Model Updates And Conference Call Tidbits

研报英文原文证据摘录

Western Alliance: Unpacking 2Q26 Results - Takeaways, Model Updates And Conference Call Tidbits

Deutsche Bank

Research

Rating Company Date

Buy Western Alliance 23 July 2026

North America Reuters Bloomberg Rating Buy

United States WAL.N WAL US Price target (USD) 92.00 Price at 22 Jul 26 83.41

52-week range 96.08 – 66.70

Financial

Banks Valuation & Risks

Unpacking 2Q26 Results - Takeaways, Model

Updates And Conference Call Tidbits BernardResearchVon-GizyckiAnalyst

+1-212-250-5881

On earnings, EPS of $2.36 was in line with consensus. Vs. consensus, net interest

income was in line, fee income was higher, expenses were higher, and provision

expense was higher. See our first read note.

Our main takeaways in the qtr include the following:

1. Deposit optimization. Mgmt lowered the FY26 deposit growth guide to

+$6b from +$8b previously, reflecting lower funding needs and efforts to

remix the deposit base in order to improve funding costs. Mgmt reduced

$1.2b of higher cost deposits during 2Q (closer to the end of the qtr) as

part of its previously announced deposit optimization strategy. Mgmt

noted that there was another $1b reduction made during the first few

weeks of 3Q and expect an additional $0.7b reduction through 3Q. Net

deposits are still expected to grow about $1b in 3Q and likely remain

about flat in 4Q. All in, mgmt will reduce $3b of higher cost deposits

(mostly related to ECR related deposits) and will revisit the initiative again

later in the year to determine if it will continue optimizing deposits.

2. Loan growth. Mgmt lowered the FY26 loan growth guide to +$5b vs. $6b

previously, in order to prioritize share repurchases over incremental loan

growth. The revised loan growth guide will allow mgmt to purchase

$150m of total shares in 2H26.