Western Alliance tops Q3 expectations despite higher credit provisioning

Western Alliance reported third-quarter EPS of $2.15 on revenue of $938 million, exceeding consensus on both lines. Provisioning for credit losses rose to about $80 million, reflecting prudent reserve builds amid macro uncertainty. Loan balances were stable, with management pointing to disciplined underwriting, deposit mix improvements, and funding cost control as priorities into 2026. Net interest margin dynamics remained sensitive to long-end yields and competitive deposit pricing. The bank reiterated commitments to capital ratios and liquidity coverage, with normalized expense growth targeted through operational efficiency programs.