• Western Alliance Bancorporation’s board recently approved a quarterly cash dividend of US$0.42 per common share and a US$106.25 per share dividend on its 4.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, alongside reporting higher fourth-quarter 2025 net interest income of US$766.2 million and net income of US$286.1 million versus the prior year.
• The company also completed a US$68.2 million share repurchase of 800,000 shares and absorbed higher net loan charge-offs of US$44.6 million, highlighting a balance between shareholder returns and credit cost pressures.
• With these results in mind, we’ll explore how Western Alliance’s higher earnings alongside increased credit losses shape its investment narrative.

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What Is Western Alliance Bancorporation's Investment Narrative?

To own Western Alliance today, you really have to believe that its stronger earnings power can more than offset rising credit costs. The latest quarter delivered higher net interest income and net income, and management doubled down on returning capital through a US$0.42 common dividend and completion of a US$68.2 million buyback, even as net loan charge-offs ticked up to US$44.6 million. That mix tells you the near term story is about confidence in the core franchise versus the risk that credit issues broaden out from here. The new preferred and common dividend declarations largely confirm the existing catalysts of earnings growth and perceived undervaluation, while nudging credit quality and a relatively low bad loan allowance closer to the top of the risk list.

However, rising charge-offs and a low allowance for bad loans are developments investors should watch closely. Western Alliance Bancorporation's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Six fair value views from the Simply Wall St Community span roughly US$96 to just under US$200 per share, reflecting very different expectations, while recent higher earnings paired with rising charge-offs keeps credit quality squarely in focus for Western Alliance’s future performance.

Explore 6 other fair value estimates on Western Alliance Bancorporation - why the stock might be worth just $96.06!

Build Your Own Western Alliance Bancorporation Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Western Alliance Bancorporation research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Western Alliance Bancorporation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Western Alliance Bancorporation's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.