Western Alliance Bancorporation : First Quarter 2026 1Q26 Basel III Regulatory Capital Disclosures Report
WAL
Published on 05/11/2026 at 03:15 pm EDT
March 31, 2026
GLOSSARY OF TERMS 3
INTRODUCTION 4
SCOPE OF APPLICATION 5
CAPITAL MANAGEMENT 5
CAPITAL STRUCTURE 6
CAPITAL ADEQUACY 7
CREDIT RISK: GENERAL DISCLOSURES 9
COUNTERPARTY CREDIT RISK: DERIVATIVE CONTRACTS & REPURCHASE AGREEMENTS 15
CREDIT RISK MITIGATION 16
SECURITIZATION 17
EQUITY INVESTMENTS NOT SUBJECT TO THE MARKET RISK RULE 18
INTEREST RATE RISK FOR NON-TRADING ACTIVITIES 20
FORWARD LOOKING STATEMENTS 21
APPENDIX A 22
The acronyms and abbreviations identified below are used in various sections of this Basel III Regulatory Capital Disclosures Report:
ENTITIES / DIVISIONS:
AmeriHome BW
Company CSI
WA PWI
AmeriHome Mortgage Company, LLC BW Real Estate, Inc.
Western Alliance Bancorporation and subsidiaries CS Insurance Company
Western Alliance Public Welfare Investments, LLC
WAB or Bank WABT
WAL or Parent WATC
Western Alliance Bank
Western Alliance Business Trust Western Alliance Bancorporation Western Alliance Trust Company, N.A.
TERMS:
2025 Annual Report
The Annual Report on Form 10-K for the year ended December 31, 2025
FRB
Federal Reserve Bank
ACL
Allowance for Credit Losses
FR Y-9C
The Consolidated Financial Statements for Holding Companies for the quarter ended March 31, 2026
ALCO
Asset and Liability Management Committee
GNMA
Government National Mortgage Association
ASC
Accounting Standards Codification
HFS
Held for Sale
Basel III
Banking Supervision's Final Capital Framework
HUD
U.S. Department of Housing and Urban Development
Basel Committee
Basel Committee on Banking Supervision
IRLC
Interest Rate Lock Commitment
BOD
Board of Directors
ISDA
International Swaps and Derivatives Association
Call Report
The Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only (FFIEC 041) for the quarter ended March 31, 2026
MBS
Mortgage-Backed Securities
Capital Rules
The FRB, the OCC, and the FDIC 2013 Approved Final Rules
MSR
Mortgage Servicing Right
CET1
Common Equity Tier 1
NDFI
Non-Depository Financial Institution
CLO
Collateralized Loan Obligation
RWA
Risk-Weighted Assets
CRA
Community Reinvestment Act
SBA
Small Business Administration
CRE
Commercial Real Estate
SBIC
Small Business Investment Company
DTA
Deferred Tax Asset
SEC
Securities and Exchange Commission
ESG
Environmental, Social, and Governance
SPV
Special Purpose Vehicle
FFIEC
Federal Financial Institutions Examination Council
SSFA
Simplified Supervisory Formula Approach
FHLB
Federal Home Loan Bank
USDA
United States Department of Agriculture
FHLMC
Federal Home Loan Mortgage Corporation
U.S. GAAP
Accounting principles generally accepted in the United States
FICO
Fair Isaac Corporation
VA
Veterans Affairs
FNMA
Federal National Mortgage Association
VIE
Variable Interest Entity
INTRODUCTION
WAL is a bank holding company headquartered in Phoenix, Arizona, incorporated under the laws of the state of Delaware. WAL provides a full spectrum of customized loan, deposit and treasury management capabilities, including funds transfer and other digital payment offerings through its wholly-owned banking subsidiary, WAB. Throughout this report the term "the Company" refers to Western Alliance Bancorporation and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise and "the Bank" refers to Western Alliance Bank.
The Company also serves business customers through a national platform of specialized financial services, including mortgage banking services through AmeriHome and digital payment services for the class action legal industry. In addition, the Company has the following non-bank subsidiaries: CSI, a captive insurance company formed and licensed under the laws of the state of Arizona and established as part of the Company's overall enterprise risk management strategy and WATC, which provides corporate trust services and levered loan administration solutions.
The Capital Rules established a comprehensive capital framework for U.S. banking organizations. The Capital Rules generally implement the Basel Committee's Basel III final capital framework for strengthening international capital standards.
The Company is subject to regulatory capital rules, including Basel III Standardized Approach requirements, issued by the U.S. banking regulators. Basel III is a regulatory capital and liquidity framework composed of three parts, or pillars. Pillar 1 provides minimum capital adequacy requirements, Pillar 2 requires supervisory review of capital adequacy and Pillar 3 promotes market discipline through regulatory public disclosures on capital structure, capital adequacy, and RWA.
This document, and certain of the Company's public filings, present the Basel III Regulatory Capital Disclosures as of March 31, 2026, in accordance with Subsections 61-63 of the Basel III Standardized Approach guidelines of the Capital Rules. The disclosures in this document are based on the Company's current understanding of the Basel III rule and other factors, which may be subject to change as the Company receives additional clarification and implementation guidance from regulators relating to the Capital Rules, and as the interpretation of the Capital Rules evolves over time. This document is prepared in accordance with the Regulatory Reporting policy approved by the Audit Committee of the Board of Directors. The disclosure policy addresses controls and procedures associated with the preparation of this report.
This document should be read in conjunction with the Q1-26 Form 10-Q, 2025 Annual Report, the FR Y-9C, and the Call Report. Some measures of exposures and other amounts disclosed in this report may not be directly comparable to other public disclosures and may not be comparable to similar measures used by other companies. The Company's Basel III Regulatory Capital Disclosures Matrix (see Appendix A) specifies where all the disclosures required by the Capital Rules are located. The Capital Rules only apply to the consolidated Company, with the exception that subsidiary depository institutions must disclose capital ratios.
The Company files annual and quarterly reports as well as other information with the SEC and the Federal Reserve. The Company's SEC filings are made available to the public from the SEC's website at https://www.sec.gov and certain of the Company's regulatory filings with the Federal Reserve are made available to the public from the FFIEC's website at https://cdr.ffiec.gov/ public/ManageFacsimiles.aspx. The Company's Basel III Regulatory Capital Disclosures are made available on the Company's Investor Relations website at https://investors.westernalliancebancorporation.com.
For more information on economic and market conditions, and the potential effects of risk and uncertainties on the Company's business, financial condition and results of operations, refer to "Risk Factors" and "Forward-Looking Statements" included in the 2025 Annual Report.
SCOPE OF APPLICATION
The Basel III Regulatory Capital Disclosures are not required to be, and have not been, audited by the Company's external auditor. Some information contained in this document may not be consistent with U.S. GAAP and may not be comparable with certain disclosures contained in the Company's SEC filings.
As of March 31, 2026, WAL has the following significant wholly-owned subsidiaries: WAB and eight unconsolidated subsidiaries used as business trusts in connection with the issuance of trust-preferred securities.
WAB has the following significant subsidiaries: 1) WABT, which holds certain investment securities, municipal and nonprofit loans, and leases; 2) WA PWI, which holds interests in certain limited partnerships invested primarily in low income housing tax credits and small business investment corporations; 3) Helios Prime, which holds interests in certain limited partnerships invested in renewable energy projects; 4) BW, which operates as a real estate investment trust and holds certain of WAB's real estate loans and related securities; and 5) Western Finance Company, which purchases and originates equipment finance leases and provides mortgage banking services through its wholly-owned subsidiary, AmeriHome.
The Company does not have any other significant entities that should be consolidated. All significant intercompany balances and transactions have been eliminated in consolidation.
WAL, WAB, and certain of its non-depository subsidiaries are subject to comprehensive regulation under federal and state laws. For additional information on the significant laws and regulations applicable to WAL and its subsidiaries refer to Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations - Supervision and Regulation section of the 2025 Form 10-K.
Transfer of funds (loans or advances, dividends) from the depository bank subsidiary to the Holding Company and other affiliates are regulated. Federal law requires that loans from the Bank to the Company or its affiliates are secured and generally limits loans to the Company or an individual affiliate to 10 percent of the depository bank's unimpaired capital and surplus. In the aggregate, loans to the Company and all affiliates cannot exceed 20 percent of the depository bank's unimpaired capital and surplus.
Federal and state banking regulations place certain restrictions on dividends paid. The total amount of dividends which may be paid at any date is generally limited to the retained earnings of the Bank. Dividends paid by WAB to the Parent would be prohibited if the effect thereof would cause the Bank's capital to be reduced below applicable minimum capital requirements.
The Capital Rules establish minimum capital adequacy standards for bank holding companies and their insured depository institution subsidiaries. As of March 31, 2026, the regulatory capital of WAL and WAB was above these minimum requirements. Refer to the Capital Structure and Capital Adequacy sections below for additional information.
CAPITAL MANAGEMENT
The Company is committed to maintaining a prudent level of capital to support its strategic business initiatives and to preserve the safety and soundness of the Company. Capital is managed through a comprehensive Capital Plan created to:
Ensure capital adequacy and preserve the safety and soundness of the Company.
Maintain sufficient cushion of capital to absorb losses, provide capital support for growth opportunities, and maintain access to the capital markets to raise capital. Serve as a source of strength to subsidiaries.
Allocate capital resources optimally while being cognizant of regulatory requirements, strategic objectives and aligning with the Company's stated risk appetite.
Establish and maintain a robust capital adequacy process that informs capital actions, which may include share issuances, repurchase of shares, redemptions of capital securities, and distributions.
Evaluate the need for new capital measures or changes to limits that may be necessitated by changes in the economic, operating, or regulatory landscape.
Ensure all obligations to depositors and creditors are met and provide competitive returns to shareholders via earnings, capital investment to grow the business, and capital distributions.
The Company continually assesses its business risks and manages its capital to exceed regulatory capital requirements for banking organizations. The Company assesses capital adequacy against the risk inherent in the balance sheet, recognizing unexpected loss is the common denominator of risk and common equity has the greatest capacity to absorb unexpected losses. To achieve its capital goals, the Company employs a variety of capital management tools, including issuance of subordinated debt, non-cumulative perpetual preferred stock, common stock and other capital instruments, as well as consideration of common share repurchases and the level of dividends to shareholders.
Capital management is facilitated by an approach that leverages the Board approved risk appetite framework along with baseline and stressed scenario modeling which, collectively, informs the ongoing assessment and management of the Company's capital position. This framework is overseen at a management-level within the ALCO process and is further reported and monitored by Board-level committees, including the Finance and Investment Committee. The Company's capital position and risk appetite are reviewed on an ongoing basis through the ALCO framework to ensure the Company appropriately considers a range of potential risks and factors in developing its strategic approach to capital management.
CAPITAL STRUCTURE
The following table presents certain financial measures related to regulatory capital under Basel III, which includes CET1 and total capital. The FRB and other banking regulators use CET1 and total capital as a basis for assessing a bank's capital adequacy; therefore, management believes it is useful to assess financial condition and capital adequacy using this same basis. Specifically, the CET1, tier 1 capital, and total capital ratios take into consideration the risk levels of assets and off-balance sheet financial instruments.
A reconciliation of total common stockholders' equity (included in total WAL stockholders' equity in the Consolidated Balance Sheets of the Q1-26 Form 10-Q) to total capital as of March 31, 2026, is presented below:
March 31, 2026
(in millions)
Common stock and related surplus, net of treasury stock
$ 2,036
Retained earnings
5,740
Accumulated other comprehensive loss
(456)
Total common stockholders' equity
$ 7,320
Less:
Non-qualifying goodwill and intangibles
$ 630
Disallowed deferred tax asset
96
AOCI related adjustments
(453)
Unrealized loss on changes in fair value liabilities
(3)
Common equity tier 1
$ 7,050
Plus: Preferred stock, trust preferred securities, and noncontrolling interest
669
Tier 1 capital
$ 7,719
Plus:
Subordinated debt
$ 988
Adjusted allowances for credit losses
528
Tier 2 capital
$ 1,516
Total capital
$ 9,235
For information on the terms and conditions of the Company's capital instruments refer to Note 10. Equity of the Q1-26 Form 10-Q.
CAPITAL ADEQUACY
The Capital Rules: (i) include CET1 capital and the related regulatory capital ratio of CET1 to risk-weighted assets; (ii) specify that Tier 1 capital consists of CET1 and "Additional Tier 1 capital" instruments meeting certain revised requirements; (iii) mandate that most deductions/adjustments to regulatory capital measures be made to CET1 and not to the other components of capital; and (iv) set forth deductions from and adjustments to capital. Under the Capital Rules, for most banking organizations, the most common form of Additional Tier 1 capital is non-cumulative perpetual preferred stock, and the most common forms of Tier 2 capital are subordinated term debt and a portion of the allocation for loan and lease losses, in each case, subject to the Capital Rules' specific requirements.
Pursuant to the Capital Rules, the minimum capital ratios are as follows:
4.5% CET1 to risk-weighted assets;
6.0% Tier 1 capital (that is, CET1 plus Additional Tier 1 capital) to risk-weighted assets;
8.0% Total capital (that is, Tier 1 capital plus Tier 2 capital) to risk-weighted assets; and
4.0% Tier 1 capital to average consolidated assets as reported on consolidated financial statements (called "leverage ratio").
The Capital Rules also include a capital conservation buffer which is designed to absorb losses during periods of economic stress. Banking institutions are required to maintain a 2.5% capital conservation buffer in addition to each of the minimum risk-based capital ratios to avoid constraints on dividends, equity repurchases, and discretionary bonus payments. To calculate the capital conservation buffer, each minimum capital ratio is subtracted from the corresponding current quarter capital ratio and the lowest of these three measures represents the capital conservation buffer. As of March 31, 2026, the Company's capital ratios exceeded the 2.5% minimum capital conservation buffer and therefore the Company is not subject to any limitations.
The Capital Rules provide for a number of deductions from and adjustments to CET1. These include, for example, the requirement that mortgage servicing assets, DTAs arising from temporary differences that could not be realized through net operating loss carrybacks, and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 25% of CET1 capital. The Capital Rules further prescribe that the effects of accumulated other comprehensive income or loss items reported as a component of stockholders' equity be included in CET1 capital; however, non-advanced approaches banking organizations may make a one-time permanent election to exclude these items. The Company, as a non-advanced approaches institution, has made this one-time election.
The Capital Rules also preclude certain hybrid securities, such as trust preferred securities, issued on or after May 19, 2010 from inclusion in bank holding companies' Tier 1 capital. The Company has used trust preferred securities in the past as a tool for raising additional Tier 1 capital and otherwise improving its regulatory capital ratios. Although the Company may continue to include its existing trust preferred securities as Tier 1 capital, the prohibition on the use of these securities as Tier 1 capital going forward may limit the Company's ability to raise capital in the future.
The risk-weighting categories in the Capital Rules are standardized and include a risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and up to 1,250% risk weights for a variety of higher risk asset classes.
Management believes the Company is in compliance, and will continue to be in compliance, with the targeted capital ratios.
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements could trigger certain mandatory or discretionary actions that, if undertaken, could have a direct material effect on the Company's business and financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.
As of March 31, 2026, the Company and the Bank exceeded the capital levels necessary to be classified as well-capitalized, as defined by the various banking agencies. The actual capital amounts and ratios for the Company and the Bank are presented in the following tables:
Common
Total Capital
Tier 1 Capital
Common Equity Tier 1
Risk-Weighted Assets
Total Capital Ratio
Tier 1 Capital Ratio
Equity Tier 1 Ratio
Capital Conservation Buffer (1)
(dollars in millions)
March 31, 2026
WAL
$
9,235 $ 7,719 $
7,050
$ 64,189
14.4 %
12.0 %
11.0 %
6.0 %
WAB
8,659 7,739
7,446
64,129
13.5
12.1
11.6
5.5
Well-capitalized
10.0
8.0
6.5
Minimum capital ratios
8.0
6.0
4.5
Minimum capital ratios
including
capital conservation buffer
10.5
8.5
7.0
Represents institution-specific capital buffer necessary to avoid limitations on distributions and discretionary bonus payments.
The Company is also required to maintain specified levels of capital to remain in good standing with certain federal government agencies, including FNMA, FHLMC, GNMA, and HUD. These capital requirements are generally tied to the unpaid balances of loans included in the Company's servicing portfolio or loan production volume. Noncompliance with these capital requirements can result in various remedial actions up to, and including, removing the Company's ability to sell loans to and service loans on behalf of the respective agency. The Company believes that it is in compliance with these requirements as of March 31, 2026.
The Company's assets and some of the specified off-balance sheet commitments and obligations are assigned to various risk categories for purposes of calculating the required regulatory risk-based capital ratios.
The following table presents the Basel III Standardized approach risk-weighted assets by exposure type, as prescribed by the Capital Rules and relevant to WAL, as of March 31, 2026:
Table 3: Risk-Weighted Assets by Exposure Type
March 31, 2026
Standardized Approach RWA
(in millions)
On-balance sheet assets:
Exposures to sovereign entities (1)
$ 616
Exposures to depository institutions and foreign banks
250
Exposures to public sector entities (2)
1,961
Corporate exposures
39,283
Residential mortgage exposures
4,627
Statutory multifamily mortgages and pre-sold construction loans
31
High volatility commercial real estate
34
Past due loans (3)
717
Other assets (4)
6,258
Securitization exposures
3,024
Equity exposures (5)
888
Off-balance sheet exposures:
Unused commitments
$ 5,659
Standby letters of credit
427
Securitization exposures
369
Derivative contracts
45
Total risk-weighted assets
$ 64,189
Represents exposures to the U.S. Government and U.S. Government agencies.
Represents exposures to U.S. states and political subdivisions.
Includes loans that are 90 days or more past due or on nonaccrual status.
Primarily composed of mortgage servicing rights, premise and equipment, bank owned life insurance, deferred tax assets, and other receivables.
Refer to the Equities Not Subject to the Market Risk Rule section of the disclosure for additional information on equity exposures.
CREDIT RISK: GENERAL DISCLOSURES
Credit risk is the risk of loss from the failure of a borrower, guarantor, or another obligor to fully perform under the terms of a credit-related contract. The Company adheres to a specific set of credit standards intended to ensure appropriate management of credit risk. Furthermore, the Bank's senior management team plays an active role in monitoring compliance with such standards.
For additional information on the Company's credit risk management policies including loan origination, lending policies and loan approval procedures refer to Item 1. Business - Lending Activities of the 2025 Annual Report.
Credit risk arises primarily from lending activities, as well as from off-balance sheet credit instruments. The following table presents the major types of credit risk exposures using regulatory reporting categories similar to the categories reported in the Company's FR Y-9C as of March 31, 2026:
March 31, 2026 Average (1)
(in millions)
On-Balance Sheet
Loans and leases, net (2)
$ 52,058
$ 51,552
Securities
16,252
16,367
Securitization
14,914
14,843
Other assets
7,075
6,977
Cash and balances due from depository institutions
8,554
6,075
Off-Balance Sheet
Derivative contracts
$ 68,445
$ 68,277
Unused commitments
13,662
13,724
Securitization
1,843
2,145
Letters of credit
616
607
Calculated using the beginning and ending quarterly balances.
Net of allowance for loan and lease losses and excludes securitization loan exposures which are reported in the securitization line in the table above.
The Company's lending is primarily focused on meeting the needs of business customers. Through WAB and its operating subsidiaries, the Company provides a variety of lending products to customers, including the loan types discussed below.
Commercial and Industrial: Commercial and industrial loans are a significant portion of the Company's loan portfolio. These loans include working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, and other commercial loans. Equipment loans and leases and loans to tax-exempt municipalities and not-for-profit organizations are also categorized as commercial and industrial loans. A subset of commercial and industrial loans consist of loans to NDFIs, which, as defined by regulatory guidance, are entities that provide services similar to traditional banks but do not accept deposits from the general public and are not regulated by Federal banking agencies.
Residential: The Company executes flow and bulk residential loan purchases that meet the Company's goals and underwriting criteria through its residential mortgage acquisition program. These loan purchases consist of both conforming and nonconforming loans. Non-conforming loan purchases are generally limited to borrowers with high FICO scores and loans with low loan-to-values.
CRE: Loans to fund the purchase or refinancing of CRE for investors (non-owner occupied) or owner occupants represent a significant portion of the Company's loan portfolio. These CRE loans are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties. CRE non-owner occupied office loans primarily consist of shorter-term bridge loans that enable borrowers to reposition or redevelop projects with more modern standards attractive to in-office employers in today's environment, including enhanced on-site amenities. The vast majority of these projects are located in suburban locations with central business district and midtown exposure. The office loan portfolio largely consists of value-add loans that require significant up-front cash equity contributions from institutional sponsors and large regional and national developers. The properties underlying these loans have stable business trends and low vacancy rates. In addition to adhering to conservative underwriting standards, asset-specific credit risk is mitigated through continued sponsor
support of projects by re-appraisal rights by the Company, re-margining requirements and ongoing debt service, and debt yield covenants. To a large extent, the financing structures of these loans do not carry junior liens or mezzanine debt, which enables maximum flexibility when working with clients and sponsors.
Substantially all of the Company's remaining CRE loans are secured by first liens with an initial loan-to-value ratio of generally not more than 75%. Owner occupied CRE loans are loans secured by owner occupied non-farm nonresidential properties for which the primary source of repayment (more than 50%) is the cash flow from the ongoing operations and activities conducted by the borrower who owns the property. Non-owner occupied CRE loans are CRE loans where the primary source of repayment is rental income generated from the collateral property.
Construction and Land Development: Construction and land development loans include single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments. These loans are primarily originated to experienced local and national developers with whom the Company has a satisfactory lending history. An analysis of each construction project is performed as part of the underwriting process to determine whether the type of property, location, construction costs, and contingency funds are appropriate and adequate. Loans to finance commercial raw land are primarily to borrowers who plan to initiate active development of the property within two years.
Consumer: Limited types of consumer loans are offered to meet customer demand and to respond to community needs. Examples of these consumer loans include home equity loans and lines of credit, home improvement loans, personal lines of credit, and loans to individuals for investment purposes.
The following table presents the Company's loans and leases and unfunded lending commitments by state as of March 31, 2026. Geographies are presented in the same way WAL manages its credit exposure footprint. For commercial and consumer loans, geographies are based on the location of the primary borrower. For commercial real estate, construction and residential loans, geographies are based on the location of the primary collateral.
California
$ 8,049
$ 3,105
$ 11,154
28 %
New York
4,446
2,291
6,737
17
Florida
2,676
541
3,217
8
Arizona
1,457
574
2,031
5
Texas
1,470
541
2,011
5
Nevada
1,019
637
1,656
4
Illinois
913
360
1,273
4
Georgia
855
151
1,006
3
Massachusetts
631
331
962
3
Pennsylvania
633
248
881
2
Connecticut
551
296
847
2
Delaware
330
502
832
2 %
Other
5,255
1,458
6,713
17
Total Commercial and industrial
$ 28,285
$ 11,035
$ 39,320
100 %
CRE
California
$ 3,288
$ 275
$ 3,563
27 %
Arizona
2,717
359
3,076
23
Nevada
1,298
147
1,445
11
Washington
550
57
607
5
Florida
518
4
522
4
Texas
410
103
513
4
Massachusetts
317
79
396
3
Alabama
327
6
333
2
North Carolina
266
2
268
2
Other
2,367
165
2,532
19
Total CRE
$ 12,058
$ 1,197
$ 13,255
100 %
March 31, 2026 Commercial and industrial
Loans and leases
Unfunded lending
commitments Total Percent of Total
(dollars in millions)
March 31, 2026
Loans and leases
Unfunded lending
commitments Total Percent of Total
(dollars in millions)
Construction and land development
California
$ 1,178
$ 690
$ 1,868
27 %
Arizona
815
396
1,211
17
Florida
536
241
777
11
Texas
468
253
721
10
Colorado
108
342
450
6
South Carolina
83
302
385
5
Nevada
130
110
240
3
Georgia
141
61
202
3
New York
120
79
199
3
Virginia
129
51
180
3
Minnesota
16
163
179
3
Tennessee
108
36
144
2 %
Other
248
250
498
7
Total Construction and land development
$ 4,080
$ 2,974
$ 7,054
100 %
Residential real estate
California
$ 7,436
$ 164
$ 7,600
39 %
Texas
1,324
43
1,367
7
Florida
1,118
53
1,171
6
Arizona
746
102
848
4
Washington
763
92
855
4
Colorado
677
99
776
4
Georgia
670
11
681
3
Virginia
381
13
394
2 %
Other
5,702
312
6,014
31
Total Residential real estate
$ 18,817
$ 889
$ 19,706
100 %
Consumer
Nevada
$ 10
$ 13
$ 23
52 %
California
4
10
14
31
Arizona
3
1
4
9
Utah
2
0
2
4
Idaho
0
2
2
4
Total Consumer
$ 19
$ 26
$ 45
100 %
Total $ 63,259 $ 16,121 $ 79,380
The following table presents the Company's loans and leases and unfunded lending commitments by industry, where applicable, as of March 31, 2026:
Finance and Insurance
$ 14,913
$ 4,696
$ 19,609
50 %
Information
2,634
1,444
4,078
10
Accommodation and Food Services
2,079
522
2,601
7
Construction
1,902
605
2,507
7
Professional, Scientific, and Technical Services
1,154
877
2,031
5
Manufacturing
829
855
1,684
4
Real Estate and Rental and Leasing
704
317
1,021
3
Public Administration
921
5
926
2
Arts, Entertainment, and Recreation
700
91
791
2
Other
2,449
1,623
4,072
10
Total Commercial and industrial
$ 28,285
$ 11,035
$ 39,320
100 %
CRE
Real Estate and Rental and Leasing
$ 5,226
$ 719
$ 5,945
45 %
Accommodation and Food Services
5,178
358
5,536
42
Retail Trade
374
33
407
3
Health Care and Social Assistance
345
4
349
3
Construction
294
23
317
2
Other
641
60
701
5
Total CRE
$ 12,058
$ 1,197
$ 13,255
100 %
Construction and land development
Construction
$ 1,967
$ 1,317
$ 3,284
47 %
Real Estate and Rental and Leasing
1,814
1,046
2,860
41
Accommodation and Food Services
254
590
844
12
Other
45
21
66
1
Total Construction and land development
$ 4,080
$ 2,974
$ 7,054
100 %
Total Residential real estate
$ 18,817
$ 889
$ 19,706
100 %
Total Consumer
$ 19
$ 26
$ 45
100 %
March 31, 2026 Commercial and industrial
Loans and leases
Unfunded lending
commitments Total
(dollars in millions)
Percent of total
Total $ 63,259 $ 16,121 $ 79,380
The following table presents the Company's loans and leases and unfunded lending commitments by maturity as of March 31, 2026:
March 31, 2026 1 Year or Less >1 to 5 Years > 5 Years Total
(in millions)
Loans and leases
$
14,062
$
26,113 $
23,084
$
63,259
Unfunded lending commitments
3,983
9,231
2,907
16,121
For additional information on the Company's loans refer to Note 4. Loans, Leases and Allowance for Credit Losses in the 2025 Annual Report and the Q1-26 Form 10-Q.
Refer to Note 1. Summary of Significant Accounting Policies in the 2025 Annual Report for information on the Company's policies and risks associated with:
Policy for placing loans on nonaccrual status,
Policy for returning loans to accrual status,
The definition of and policy for identifying individually assessed loans,
Methodology used to estimate the ACL.
Refer to Item.1 - Business and Item 1A. - Risk Factors in the 2025 Annual Report for additional information on the Company's policies and related risks associated with:
Credit risk management,
Determining past due or delinquency status, and
Charging off uncollectible accounts.
For additional information on the Company's allowance for loan and lease losses including charge-offs during the period, refer to Note 4. Loans, Leases and Allowance for Credit Losses in the 2025 Annual Report and the Q1-26 Form 10-Q.
The table below presents the Company's 90 or more days past due and non-accrual loans by state as of March 31, 2026:
Amortized Cost
Past Due Loans Non Accrual Loans
March 31, 2026
Accruing 90 or More Days
Non Accrual 90 or More Days
With No Allowance
With an Allowance
Related Allowance
Commercial and industrial
(in millions)
Arizona
$ -
$ 5
$ -
$ 8
$ 4
California
3
77
71
25
11
Florida
-
1
12
1
-
Texas
-
2
-
6
3
Other
-
1
2
-
-
Total Commercial and industrial
$ 3
$ 86
$ 85
$ 40
$ 18
CRE
Arizona
$ -
$ 83
$ 83
$ -
$ -
California
-
111
170
13
13
Total CRE
$ -
$ 194
$ 253
$ 13
$ 13
Construction and land development
California
$ -
$ 85
$ 85
$ -
$ -
Total Construction and land development
$ -
$ 85
$ 85
$ -
$ -
Amortized Cost
Past Due Loans Non Accrual Loans
March 31, 2026
Accruing 90 or More Days
Non Accrual 90 or More Days
With No Allowance
With an Allowance
Related Allowance
Residential real estate
(in millions)
Alabama
$ 41
$ -
$ -
$ -
$ -
California
85
-
-
3
-
District of Columbia
7
-
-
2
1
Florida
128
-
-
-
-
Georgia
112
-
-
-
-
Illinois
34
-
-
-
-
Indiana
41
-
-
-
-
Louisiana
32
-
-
1
-
Maryland
42
-
-
1
-
Michigan
36
-
-
-
-
Missouri
34
-
-
-
-
New Jersey
51
-
-
-
-
North Carolina
45
-
-
-
-
Ohio
51
-
-
1
-
Pennsylvania
39
-
-
-
-
South Carolina
33
-
-
-
-
Tennessee
40
-
-
-
-
Texas
155
-
-
1
-
Virginia
43
-
-
-
-
Other
240
1
4
3
1
Total Residential real estate
$ 1,289
$ 1
$ 4
$ 12
$ 2
Total
$ 1,292
$ 366
$ 427
$ 65
$ 33
The table below presents the Company's 90 or more days past due and non-accrual loans by industry, where applicable, as of March 31, 2026:
Amortized Cost
Past Due Loans Non Accrual Loans
March 31, 2026
Accruing 90 or More Days
Non Accrual 90 or More Days
With No Allowance
With an Allowance
Related Allowance
Commercial and industrial
(in millions)
Accommodation and Food Services
$ -
$ -
$ 12
$ -
$ -
Finance and Insurance
-
70
69
-
1
Manufacturing
-
3
-
5
2
Real Estate and Rental and Leasing
-
-
-
10
1
Other
3
13
4
25
14
Total Commercial and industrial
$ 3
$ 86
$ 85
$ 40
$ 18
CRE
Finance and Insurance
$ -
$ -
$ 13
$ -
$ -
Real Estate and Rental and Leasing
-
191
237
-
-
Other
-
3
3
13
13
Total CRE
$ -
$ 194
$ 253
$ 13
$ 13
Total Construction and land development
$ -
$ 85
$ 85
$ -
$ -
Total Residential real estate
$ 1,289
$ 1
$ 4
$ 12
$ 2
Total
$ 1,292
$ 366
$ 427
$ 65
$ 33
COUNTERPARTY CREDIT RISK: DERIVATIVE CONTRACTS & REPURCHASE AGREEMENTS
Counterparty exposure arises from derivative contracts, repurchase agreements and other similar products and activities. The exposure amount depends on the value of underlying market factors (e.g., interest rates and foreign exchange rates), which can be volatile and uncertain. Counterparty credit risk is the risk that a counterparty may default on, or be unable to perform, pursuant to an uncollateralized exposure.
In the normal course of business, the Company uses derivative instruments to meet the needs of its customers and manage exposure to fluctuations in interest rates. The Company is a party to various derivative instruments. The primary types of derivatives the Company uses are interest rate contracts, forward purchase and sale commitments, and interest rate futures. Interest rate swaps are the primary derivative instruments used to manage interest rate risk, which convert the contractual interest rate index of agreed-upon amounts of assets and liabilities (i.e., notional amounts) from either a fixed rate to a variable rate, or from a variable rate to a fixed rate. The Company also uses derivative financial instruments to manage exposure to interest rate risk and also to meet client financing and hedging needs.
Like other financial instruments, derivatives contain an element of credit risk. This risk is measured as the expected replacement value of the contracts. Management enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. Additionally, management monitors counterparty credit risk exposure on each contract to determine appropriate limits on the Company's total credit exposure across all product types, which may require the Company to post collateral to counterparties when these contracts are in a net liability position and conversely, for counterparties to post collateral to the Company when these contracts are in a net asset position. Management reviews the Company's collateral positions on a daily basis and exchanges collateral with counterparties in accordance with standard ISDA documentation and other related agreements. The Company generally posts or holds collateral in the form of cash deposits or highly rated securities issued by the U.S. Treasury or government-sponsored enterprises (FNMA and FHLMC), or guaranteed by GNMA. As of March 31, 2026, collateral pledged by the Company to counterparties for its derivatives totaled
$285 million.
The following table presents the Company's exposure to derivative contracts as of March 31, 2026:
March 31, 2026 Notional Amount
Gross Positive Fair Value (1)
Interest rate contracts $ 71,296 $ 223 $ 323
(in millions)
Net Unsecured Credit Exposure (2)
Foreign exchange contracts 550 13 12
Represents sum of all derivative contracts with positive value.
Credit exposure after benefits from legally enforceable netting agreements and collateral arrangements.
For additional information on derivatives, refer to Note 12. Derivatives and Hedging Activities in the Q1-26 Form 10-Q and Note 1. Summary of Significant Accounting Policies - Derivative Financial Instruments in the 2025 Annual Report.
The Company is exposed to credit risk for both the counterparties and the underlying collateral in repurchase agreements. The Company monitors the values of the underlying assets collateralizing the repurchase agreements, including accrued interest, and obtains or posts additional collateral in order to maintain the appropriate collateral requirements for the transactions.
The Company enters into repurchase facilities as a source of short-term borrowing. Securities are transferred in exchange for cash and the Company simultaneously enters into an agreement to reacquire the securities transferred on a specified future date for an amount equal to the cash received plus interest. The Company's securities repurchase agreements are primarily collateralized by securities issued by U.S. government agencies. The Company monitors the fair value of the underlying securities transferred and may be required to transfer additional assets in the event the estimated fair value of the securities decline.
For additional information on the Company's exposure to repo-style transactions refer to Note 8. Other Borrowings in the Q1-26 Form 10-Q and Schedule HC-R Part II in the FR Y-9C.
The following table provides the notional amount of purchased and sold credit derivatives related to risk participation agreements with external lenders as of March 31, 2026:
March 31, 2026 Purchased Sold
(in millions)
Risk participation notional amounts $ 34 $ 278
Existing counterparty agreements are structured in a manner where there would be no change in collateral posting requirements in the event of a credit downgrade for the Company.
CREDIT RISK MITIGATION
The Company's risk management framework seeks to mitigate risk while appropriately balancing risk and return. Policies and procedures are intended to identify, monitor, and manage the types of risk including, but not limited to credit risk, market risk, liquidity risk, operational risk, legal and compliance risk, and reputational risk. A BOD level risk committee approves and reviews key risk management policies and oversees operation of the risk management framework.
The Capital Rules allow banking organizations to use a substitution approach to recognize the credit risk-mitigation benefits of eligible collateral, guarantees and credit derivatives. The credit risk mitigation techniques used by the Company per the Capital Rules are described below.
Eligible collateral is held in the form of cash deposits for certain loan portfolios and unfunded lending commitments. When financial collateral is obtained, the Capital Rules permit the substitution of the risk weight of the eligible collateral for that of the original credit exposure.
Eligible guarantees are held for certain investment securities issued or guaranteed by the U.S. Treasury or government-sponsored enterprises, and certain loans are guaranteed by the SBA, FHLB, VA or USDA. For eligible guarantees received, the risk weight applicable to the eligible guarantor applies to the exposure covered by the guarantee.
For derivative contracts, the Company enters into bilateral collateral and master netting agreements that provide for the net settlement of all contracts with the same counterparty. For additional information on credit risk mitigation for derivatives as well as collateral valuation and management, refer to "Counterparty Credit Risk: Derivative Contracts and Repurchase Agreements" section of this disclosure.
The following table presents credit exposures covered by eligible collateral or guarantees and the RWA amounts associated with such exposures as of March 31, 2026:
Eligible Collateral (1) Eligible Guarantees (2)
March 31, 2026
Covered Exposure
RWA
Covered Exposure
RWA
Exposure Type:
(in millions)
Investment securities
$
-
$
- $
13,968
$
597
Loans and leases, net
408
-
2,793
559
Letters of credit and unfunded lending commitments
99
-
-
-
Total $ 507 $ - $ 16,761 $ 1,156
Eligible collateral recognized under the Basel III standardized approach generally comprises cash on deposit with the Company and investment securities issued by the U.S. government, U.S. government agencies or government-sponsored enterprises.
Eligible guarantees recognized under the Basel III standardized approach generally comprises guarantees by U.S. government agencies.
For additional information regarding the Company's credit risk management and risk mitigation strategies, refer to the following financial statement footnotes within the 2025 Annual Report:
Note 2. Investment Securities,
Note 4. Loans, Leases and Allowance for Credit Losses,
Note 11. Other Borrowings,
Note 15. Derivatives and Hedging Activities,
Note 18. Commitments and Contingencies.
SECURITIZATION
A participant in the securitization market is typically an originator, investor, or sponsor. The Company's primary securitization-related activity is investing in products originated by third parties and entering into structured lending and investing transactions with clients as an originator or an investor. As of March 31, 2026, the Company has not acted as a sponsor.
Securitization exposures give rise to multiple types of risks including, but not limited to, credit, liquidity and interest rate risk. Such exposures are generally managed as part of the investment securities and loan portfolios and oversight is primarily by ALCO.
Securitization exposures held by the Company include credit linked notes, non-agency securities and SPV structured loans. described in more detail below. The Company has transferred the credit risk of certain lending portfolios synthetically and recognizes the credit risk mitigation benefits accordingly.
The Company has entered into credit linked note transactions, which are considered synthetic securitizations, to mitigate exposure to losses on its residential loan portfolio. These transactions effectively transfer the risk of first losses on reference pools of the Company's loans purchased under its residential mortgage purchase program to the purchasers of the notes. Credit linked notes are considered free standing credit enhancements. The Company utilizes a third-party securities administrator to monitor the performance and valuation of underlying collateral associated with these transactions. For additional information on credit linked notes, refer to Note 8. Other Borrowings in the Q1-26 Form 10-Q. The Company follows the methodology prescribed by the Capital Rules for the computation of risk-weighted assets related to these securitization exposures and applies the simplified supervisory formula approach. The calculated risk-weight for these is typically 20%.
The Company also has securitization exposures from certain available-for-sale and held-to-maturity securities in its portfolio that are backed largely by non-agency mortgage-backed securities and CLOs. The Company's private label residential MBS consists of non-agency collateralized mortgage obligations secured by pools of residential mortgage loans. The Company's CLO portfolio consists of highly-rated securitization tranches, containing pools of medium- to large-sized corporate, high-yield loans. A third-party pricing service is used to value these investments. The Company follows the methodology prescribed by the Capital Rules for the computation of risk-weighted assets related to securitization exposures and applies the simplified supervisory formula approach. The calculated risk-weight for these exposures is typically 20%.
The Company also has securitization exposures as a lender in financing pools of loans held in bankruptcy remote SPVs. The SPVs are typically drop-down subsidiaries of large asset managers who provide the deal selection and credit management. In each case, a trustee manages the collateral and cashflow of the SPV to be in compliance with the loan agreements which include waterfall provisions which can reserve cash to pay down lenders in the event of non-compliance. The performance of the underlying assets and movements in their borrowing bases are monitored to ensure consistency with the Company's overall risk appetite and loan ratings. The Company follows the methodology prescribed by the Capital Rules for the computation of risk-weighted assets related to securitization exposures and applies the simplified supervisory formula approach. The calculated risk-weight for these exposures is typically 20%.
The following table presents the Company's securitization exposures by type as of March 31, 2026:
March 31, 2026
Risk Weight %
Exposure Amount
RWA
On-balance sheet:
(dollars in millions)
Credit linked notes
20%
$ 7,542
$ 1,508
Non-agency securities
20% to 34%
4,173
870
SPV structured loans
20% to 64%
3,198
646
Off-balance sheet:
SPV structured loans
20%
$ 1,843
$ 369
The Company's process for risk-weighting the majority of securitization exposures is based on the SSFA as detailed under the Basel III Standardized Approach. This method is based on a formulaic approach which establishes a baseline risk weight derived from the capital requirements for the underlying exposures. The subject tranche within the securitization is assessed based on the level of subordination, with first-loss tranches being subjected to a higher risk weight as compared to lower risk weights for more senior or secured tranches. The approach also takes into account delinquencies on underlying assets and adjusts the capital requirement based on the delinquencies of the underlying assets.
EQUITY INVESTMENTS NOT SUBJECT TO THE MARKET RISK RULE
The Company's equity investments not subject to the Market Risk Rule are entered into for strategic business reasons or for regulatory purposes and primarily include the following investments:
FRB and FHLB stock - WAB is a member of the Federal Reserve System and, as part of its membership, is required to maintain stock in the FRB in a specified ratio to its capital. In addition, WAB is a member of the FHLB system and, accordingly, maintains an investment in the capital stock of the FHLB based on the borrowing capacity used. These investments are considered equity securities with no actively traded market. Therefore, the shares are considered restricted stock investments. These investments are carried at cost, which is equal to the value at which they may be redeemed. Dividend income received from the stock is reported in interest income. The Company conducts a periodic review and evaluation of its restricted stock to determine if any impairment exists. No impairment has been recorded to date.
Community development investments - The Company holds ownership interests in limited partnerships and limited liability companies that invest in affordable housing projects. These investments are designed to generate a return primarily through the realization of federal tax credits and deductions, which may be subject to recapture by taxing authorities if compliance requirements are not met. The Company accounts for its low income housing investments using the proportional amortization method. The Company's investments in qualified affordable housing meet the definition of a VIE as the entities are structured such that the limited partner investors lack substantive voting rights. The general partner or managing member has both the power to direct the activities that most significantly impact the economic performance of the entities and the obligation to absorb losses or the right to receive benefits that could be
significant to the entities. Accordingly, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities.
SBIC, renewable energy and other investments - The Company holds ownership interests in limited partnerships and limited liability companies that invest in small business investment corporations, renewable energy projects and other investments. Renewable energy investments are designed to generate a return primarily through the realization of federal tax credits and deductions. Renewable energy projects are accounted for under the deferral method, whereby the investment tax credits are reflected as an immediate reduction in income taxes payable and the carrying value of the asset in the period that the investment tax credits are claimed. The renewable energy limited liability entities are considered to be VIEs; however, as a limited partner, the Company is not the primary beneficiary and is not required to consolidate these entities. SBIC and other investments represent equity investments without readily determinable fair values. These investments are accounted for under the equity method or at cost less impairment, adjusted for observable price changes of the same or similar investment. Equity method investments are recorded at cost and subsequently adjusted for allocated earnings or losses, as well as for cash distributions. Such investments are periodically evaluated for impairment.
Publicly traded equity investments - The Company holds CRA and other investments which have readily determinable fair values and are recorded at fair value. Unrealized gains and losses on these equity securities are recognized in earnings as a component of fair value adjustments.
The Company uses the simple risk-weight approach to risk weight its equity exposures. Under this approach, the adjusted carrying value or exposure amount for each equity exposure is multiplied by a prescribed risk weight. The adjusted carrying value of an on-balance sheet equity exposure is the carrying value of the exposure. For an off-balance sheet commitment, the exposure amount is the effective notional amount multiplied by an applicable credit conversion factor that is based upon whether the commitment is conditional or unconditional and the related maturity.
Although the simple risk-weight approach assigns specific risk weights to different types of equity exposures, the Capital Rules allow non-significant equity exposures to be risk-weighted at 100 percent. Under the non-significant equity exposures guidance, the aggregate adjusted carrying value of equity exposures that does not exceed 10 percent of Total Capital is risk-weighted at 100 percent. The total non-significant equity exposure is currently below the 10 percent of Tier 1 plus Tier 2 capital threshold.
The following table summarizes the risk-weighting of equity investments and the associated exposure and risk-weighted amounts as of March 31, 2026:
March 31, 2026
Risk-Weight %
Exposure
RWA
(dollars in millions)
FRB stock
0%
$ 97
$
-
FHLB stock
20
142
29
Community development investments
100
585
585
SBIC, renewable energy, and other equity investments
100
246
246
Publicly traded equity investments
100
28
28
Total equity exposure
$ 1,098
$
888
The following table represents the carrying values of publicly and non publicly traded equity investments that are not subject to the Market Risk Rule as of March 31, 2026:
March 31, 2026 Fair Value Book Value
(in millions)
Publicly traded
$ 28
$ 31
Non publicly traded
1,070
1,070
Total equity exposure
$ 1,098
$ 1,101
There were no net gains or losses arising from the sale or liquidation of equity investments for the quarter ended March 31, 2026. For the quarter ended March 31, 2026, unrealized losses of $0.8 million on equity securities were recognized in earnings as a component of fair value loss adjustments, net. There were no latent revaluation gains or losses on equity investments for the quarter ended March 31, 2026.
INTEREST RATE RISK FOR NON-TRADING ACTIVITIES
The Company's market risk arises primarily from interest rate risk inherent in its lending, investing, and deposit taking activities. Refer to Item 3. Quantitative and Qualitative Disclosures about Market Risk in the Q1-26 Form 10-Q for additional information on the Company's exposure to interest rate risk, and how the Company measures the impact of forecasted changes in interest rates on net interest income and economic value of equity through the use of simulation models.
FORWARD LOOKING STATEMENTS
Certain statements contained in this document are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including without limitation, statements regarding our expectations with respect to our business, financial and operating results, including our deposits, liquidity and funding, changes in economic conditions and the related impact on the Company's business, and statements that are related to or are dependent on estimates or assumptions relating to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts.
The forward-looking statements contained in this document reflect the Company's current views about future events and financial performance and are subject to certain risks, uncertainties, assumptions, and changes in circumstances that may cause the Company's actual results to differ significantly from historical results and those expressed in any forward-looking statement. Risks and uncertainties include those set forth in the Company's filings with the SEC and the following factors that could cause actual results to differ materially from historical or expected results: 1) adverse financial market and economic conditions, including the effects of inflation and any recession in the United States, adverse developments in the financial services industry generally, U.S. and global trade policies and tensions, including changes in, or the imposition of, tariffs and/or trade barriers, and any related impact on customer behavior, the potential impact on borrowers of supply chain disruptions and the economic and market impacts of the geopolitical conflicts such as the conflicts in Ukraine and the Middle East; 2) changes in interest rates and increased rate competition; 3) the discontinuation of or substantial changes to interest rate benchmarks utilized in our lending, borrowing and hedging activities; 4) exposure of financial instruments to certain market risks that may increase the volatility of earnings and AOCI; 5) the inherent risk associated with accounting estimates, including the impact to the allowance, provision for credit losses, and capital levels; 6) exposure to natural and man-made disasters in markets where we operate and the impact of climate change and sustainability practices on us and our customers; 7) the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, geopolitical conflicts or public health events, and of governmental and societal responses thereto; 8) higher defaults on our loan portfolio than we expect; 9) increased foreclosures and ownership of real property; 10) changes in management's estimate of the adequacy of the allowance for credit losses; 11) dependency on real estate and events that negatively impact the real estate market; 12) concentrations in certain business lines or product types within our loan portfolio; 13) residual risk retained by us on reference pools covered by credit linked notes; 14) exposures related to the properties to which we acquire title; 15) ability to compete in a highly competitive market; 16) expansion strategies through acquisitions or implementation of new lines of business or new products and services that may not be successful and supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities; 17) uncertainty associated with digital payment initiatives; 18) ability to recruit and retain qualified employees and implement adequate succession planning to mitigate the loss of key members of our senior management team; 19) ability to meet capital adequacy and liquidity requirements and the sufficiency of liquidity; 20) dependence on low-cost deposits; 21) risks related to representations and warranties made on third-party loan sales; 22) ability to borrow from the FHLB or the FRB; 23) a change in our creditworthiness; 24) information security breaches; 25) reliance on third parties to provide key components of our infrastructure; 26) perpetration of fraud; 27) ability to implement and improve our controls and processes to keep pace with growth; 28) risk of operating in a highly regulated industry and our ability to remain in compliance; 29) ability to adapt to technological change; 30) technological risks and developments and cyber threats, attacks or events; 31) emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; 32) failure to comply with state and federal banking agency laws and regulations;
33) results of any tax audit findings, challenges to our tax positions, or adverse changes or interpretations of tax laws; 34) risks related to ownership and price of our preferred and common stock; 35) ability to continue to declare quarterly dividends; 36) additional regulatory requirements resulting from our continued growth; 37) management's estimates and projections of interest rates and interest rate policies; 38) the execution of our business plan; 39) the outcome of legal proceedings regarding the Cantor Group V, LLC loan and the Leucadia Asset Management LLC loan, the amount of funds and/or collateral that may be available for repayment of such loans, and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loans.
For more information regarding risks that may cause the Company's actual results to differ materially from any forward-looking statements, see "Risk Factors" in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, "Risk Factors" in Part II, Item 1A of the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, and related disclosures in other filings with the SEC. All forward-looking statements that are made or attributable to us are expressly qualified in their entirety by this cautionary notice. The forward-looking statements included herein are based only on information currently available to us and speak only as of the date of this document. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this document might not occur, and you should not put undue reliance on any forward-looking statements.
APPENDIX A
The Company has provided the following summary of the required disclosure locations in accordance with Subsections 61-63 of the Basel III Standardized Approach guidelines of the Capital Rules.
Table
Disclosure Requirement
Disclosure Location
Disclosure Page
Source Reference (if applicable)
Scope of Application
Qualitative
(a)
The name of the top corporate entity in the group to which subpart D of this part applies.
Basel III Regulatory Capital Disclosures (Unaudited):
Business Overview
4
(b)
A brief description of the differences in the basis for consolidating entities for accounting and regulatory purposes, with a description of those entities:
That are fully consolidated;
That are deconsolidated and deducted from total capital;
For which the total capital requirement is deducted; and
That are neither consolidated nor deducted (for example, where the investment in the entity is assigned a risk weight in accordance with this subpart).
Basel III Regulatory Capital Disclosures (Unaudited):
Principles of Consolidation
5
(c)
Any restrictions, or other major impediments, on transfer of funds or total capital within the group.
Form 10-K (Audited):
Item 7. MD&A -Supervision and Regulation
Basel III Regulatory Capital Disclosures (Unaudited):
Restrictions on Transfer of Funds or Regulatory Capital
5
Form 10-K:
P.66
Quantitative
(d)
The aggregate amount of surplus capital of insurance subsidiaries included in the total capital of the consolidated group.
FR Y-9C - Consolidated Financial Statement for Holding Companies (Unaudited):
Schedule HC-R, Part I -Regulatory Capital Components and Ratios
FR Y-9C:
Schedule HC-R, Part I
(e)
The aggregate amount by which actual total capital is less than the minimum total capital requirement in all subsidiaries, with total capital requirements and the name(s) of the subsidiaries with such deficiencies.
Basel III Regulatory Capital Disclosures (Unaudited):
Minimum Capital Requirements
5
Capital Structure
Qualitative
(a)
Summary information on the terms and conditions of the main features of all regulatory capital instruments.
Form 10-K (Audited):
Note 13 - Stockholders' Equity
Form 10-Q (Unaudited):
Note 10 - Equity
Form 10-K:
P.133
Form 10-Q:
P.36
Quantitative
(b)
The amount of common equity tier 1 capital, with separate disclosure of:
Common stock and related surplus;
Retained earnings;
Common equity minority interest;
AOCI; and
Regulatory adjustments and deductions made to common equity tier 1 capital.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 1: Reconciliation of Stockholders' Equity to Total Capital
6
(c)
The amount of tier 1 capital, with separate disclosure of:
Additional tier 1 capital elements, including additional tier 1 capital instruments and tier 1 minority interest not included in common equity tier 1 capital; and
Regulatory adjustments and deductions made to tier 1 capital.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 1: Reconciliation of Stockholders' Equity to Total Capital
6
(d)
The amount of total capital, with separate disclosure of:
Tier 2 capital elements, including tier 2 capital instruments and total capital minority interest not included in tier 1 capital; and
Regulatory adjustments and deductions made to total capital.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 1: Reconciliation of Stockholders' Equity to Total Capital
6
Capital Management
Qualitative
(a)
A summary discussion of the Board-regulated institution's approach to assessing the adequacy of its capital to support current and future activities.
Basel III Regulatory Capital Disclosures (Unaudited):
Capital Management
5
Table
Disclosure Requirement
Disclosure Location
Disclosure Page
Source Reference (if applicable)
Quantitative
(b)
Risk-weighted assets for:
Exposures to sovereign entities;
Exposures to certain supranational entities and MDBs;
Exposures to depository institutions, foreign banks, and credit unions;
Exposures to PSEs;
Corporate exposures;
Residential mortgage exposures;
Statutory multifamily mortgages and pre-sold construction loans;
HVCRE exposures;
Past due loans;
Other assets;
Cleared transactions;
Default fund contributions;
Unsettled transactions;
Securitization exposures; and
Equity exposures.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 3: Risk-Weighted Assets by Exposure Type
8
(c)
Standardized market risk-weighted assets as calculated under subpart F of this part.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 3: Risk-Weighted Assets by Exposure Type
8
(d)
Common equity tier 1, tier 1 and total risk-based capital ratios:
For the top consolidated group; and
For each depository institution subsidiary.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 2: Regulatory Capital and Ratios
8
(e)
Total standardized risk-weighted assets.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 3: Risk-Weighted Assets by Exposure Type
8
Capital Conservation Buffer
Quantitative
(a)
At least quarterly, the Board-regulated institution must calculate and publicly disclose the capital conservation buffer as described under § 217.11.
Basel III Regulatory Capital Disclosures (Unaudited):
Regulatory Capital Ratios
7
(b)
At least quarterly, the Board-regulated institution must calculate and publicly disclose the eligible retained income of the Board-regulated institution, as described under § 217.11.
FR Y-9C - Consolidated Financial Statement for Holding Companies (Unaudited):
Schedule HC-R, Part I -Regulatory Capital Components and Ratios
FR Y-9C:
Schedule HC-R, Part I
(c)
At least quarterly, the Board-regulated institution must calculate and publicly disclose any limitations it has on distributions and discretionary bonus payments resulting from the capital conservation buffer framework described under § 217.11, including the maximum payout amount for the quarter.
FR Y-9C - Consolidated Financial Statement for Holding Companies (Unaudited):
Schedule HC-R, Part I -Regulatory Capital Components and Ratios
FR Y-9C:
Schedule HC-R, Part I
Credit Risk: General Disclosures
Qualitative
(a)
The general qualitative disclosure requirement with respect to credit risk (excluding counterparty credit risk disclosed in accordance with Table 6), including the:
Policy for determining past due or delinquency status;
Policy for placing loans on nonaccrual;
Policy for returning loans to accrual status;
Definition of and policy for identifying impaired loans (for financial accounting purposes);
Description of the methodology that the Board-regulated institution uses to estimate its allowance for loan and lease losses or adjusted allowance for credit losses, as applicable, including statistical methods used where applicable;
Policy for charging-off uncollectible amounts; and
Discussion of the Board-regulated institution's credit risk management policy.
Form 10-K (Audited):
Item 1. Business, Item 1A. Risk Factors, Note 1. Summary of Significant Accounting Policies, Note 4. Loans, Leases and Allowance for Credit Losses
Form 10-K:
P.5, 16, 87, 112
Quantitative
(b)
Total credit risk exposures and average credit risk exposures, after accounting offsets in accordance with GAAP, without taking into account the effects of credit risk mitigation techniques (for example, collateral and netting not permitted under GAAP), over the period categorized by major types of credit exposure. For example, Board-regulated institutions could use categories similar to that used for financial statement purposes. Such categories might include, for instance
Loans, off-balance sheet commitments, and other non-derivative off-balance sheet exposures;
Debt securities; and
OTC derivatives.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 4: Credit Exposures by Type
9
Table
Disclosure Requirement
Disclosure Location
Disclosure Page
Source Reference (if applicable)
(c)
Geographic distribution of exposures, categorized in significant areas by major types of credit exposure.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 5: Loans and Leases and Unfunded Commitments by Geography
10
(d)
Industry or counterparty type distribution of exposures, categorized by major types of credit exposure.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 6: Loans and Leases and Unfunded Lending Commitments by Industry
12
(e)
By major industry or counterparty type:
Amount of impaired loans for which there was a related allowance under GAAP;
Amount of impaired loans for which there was no related allowance under GAAP;
Amount of loans past due 90 days and on nonaccrual;
Amount of loans past due 90 days and still accruing;
The balance in the allowance for loan and lease losses or adjusted allowance for credit losses, as applicable, at the end of each period, disaggregated on the basis of the Board-regulated institution's impairment method. To disaggregate the information required on the basis of impairment methodology, an entity shall separately disclose the amounts based on the requirements in GAAP; and
Charge-offs during the period.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 9: Past Due Loans and Non-accrual Loans by Industry (Items e.1-4)
Form 10-Q (Unaudited):
Note 4. Loans, Leases and Allowance for Credit Losses (Items e. 5-6)
15
Form 10-Q:
P.18
(f)
Amount of impaired loans and, if available, the amount of past due loans categorized by significant geographic areas including, if practical, the amounts of allowances related to each geographical area, further categorized as required by GAAP.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 8: Past Due Loans and Non-accrual Loans by Geography
13
(g)
Reconciliation of changes in ALLL or AACL, as applicable.
Form 10-Q (Unaudited):
Note 4. Loans, Leases and Allowance for Credit Losses
Form 10-Q:
P.18
(h)
Remaining contractual maturity delineation (for example, one year or less) of the whole portfolio, categorized by credit exposure.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 7: Loans and Leases and Unfunded Lending Commitments by Maturity
12
Counterparty Credit Risk: General Disclosures
Qualitative
(a)
The general qualitative disclosure requirement with respect to OTC derivatives, eligible margin loans, and repo-style transactions, including a discussion of:
The methodology used to assign credit limits for counterparty credit exposures;
Policies for securing collateral, valuing and managing collateral, and establishing credit reserves;
The primary types of collateral taken; and
The impact of the amount of collateral the Board-regulated institution would have to provide given a deterioration in the Board-regulated institution's own creditworthiness.
Basel III Regulatory Capital Disclosures (Unaudited):
Derivative Contracts, Repurchase Agreements, Credit Ratings Downgrade
15
Quantitative
(b)
Gross positive fair value of contracts, collateral held (including type, for example, cash, government securities), and net unsecured credit exposure. A Board-regulated institution also must disclose the notional value of credit derivative hedges purchased for counterparty credit risk protection and the distribution of current credit exposure by exposure type.
FR Y-9C - Consolidated Financial Statement for Holding Companies (Unaudited):
Schedule HC-R, Part II -Risk Weighted Assets (RWA)
Basel III Regulatory Capital Disclosures (Unaudited):
Table 10: Derivative Contracts by Exposure Type
16
FR Y-9C:
Schedule HC-R, Part II - RWA, Line Item 16 - Repo-style transactions
(c)
Notional amount of purchased and sold credit derivatives, segregated between use for the Board-regulated institution's own credit portfolio and in its intermediation activities, including the distribution of the credit derivative products used, categorized further by protection bought and sold within each product group.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 11: Notional Amount of Purchased and Sold Credit Derivatives
16
Table
Disclosure Requirement
Disclosure Location
Disclosure Page
Source Reference (if applicable)
Credit Risk Mitigation
Qualitative
(a)
The general qualitative disclosure requirement with respect to credit risk mitigation, including:
Policies and processes for collateral valuation and management;
A description of the main types of collateral taken by the Board-regulated institution;
The main types of guarantors/credit derivative counterparties and their creditworthiness; and
Information about (market or credit) risk concentrations with respect to credit risk mitigation.
Form 10-K (Audited):
Note 2. Investment Securities
Note 4. Loans, Leases and Allowance for Credit Losses
Note 11. Other Borrowings
Note 15. Derivatives and Hedging Activities
Note 18. Commitments and Contingencies
Basel III Regulatory Capital Disclosures (Unaudited):
Derivative Contracts
15
Form 10-K:
P.106
P.112
P.129
P.136
P.145
Quantitative
(b)
For each separately disclosed credit risk portfolio, the total exposure that is covered by eligible financial collateral, and after the application of haircuts.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 12: Exposures Covered by Collateral and Guarantees
17
(c)
For each separately disclosed portfolio, the total exposure that is covered by guarantees/credit derivatives and the risk-weighted asset amount associated with that exposure.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 12: Exposures Covered by Collateral and Guarantees
17
Securitization
Qualitative
(a)
The general qualitative disclosure requirement with respect to a securitization (including synthetic securitizations), including a discussion of:
The Board-regulated institution's objectives for securitizing assets, including the extent to which these activities transfer credit risk of the underlying exposures away from the Board-regulated institution to other entities and including the type of risks assumed and retained with resecuritization activity;
The nature of the risks (e.g., liquidity risk) inherent in the securitized assets;
The roles played by the Board-regulated institution in the securitization process and an indication of the extent of the Board-regulated institution's involvement in each of them;
The processes in place to monitor changes in the credit and market risk of securitization exposures including how those processes differ for resecuritization exposures;
The Board-regulated institution's policy for mitigating the credit risk retained through securitization and resecuritization exposures; and
The risk-based capital approaches that the Board-regulated institution follows for its securitization exposures including the type of securitization exposure to which each approach applies.
Basel III Regulatory Capital Disclosures (Unaudited):
Synthetic Securitization, Traditional Securitization, Securitization Exposures
17
(b)
A list of:
The type of securitization SPEs that the Board-regulated institution, as sponsor, uses to securitize third-party exposures. The Board-regulated institution must indicate whether it has exposure to these SPEs, either on- or off-balance sheet; and
Affiliated entities:
That the Board-regulated institution manages or advises; and
That invest either in the securitization exposures that the Board-regulated institution has securitized or in securitization SPEs that the Board-regulated institution sponsors.
Basel III Regulatory Capital Disclosures (Unaudited):
Securitization Exposures
18
(c)
Summary of the Board-regulated institution's accounting policies for securitization activities, including:
Whether the transactions are treated as sales or financings;
Recognition of gain-on-sale;
Methods and key assumptions applied in valuing retained or purchased interests;
Changes in methods and key assumptions from the previous period for valuing retained interests and impact of the changes;
Treatment of synthetic securitizations;
How exposures intended to be securitized are valued and whether they are recorded under subpart D of this part; and
Policies for recognizing liabilities on the balance sheet for arrangements that could require the Board-regulated institution to provide financial support for securitized assets.
Basel III Regulatory Capital Disclosures (Unaudited):
Synthetic Securitization, Traditional Securitization
17
Table
Disclosure Requirement
Disclosure Location
Disclosure Page
Source Reference (if applicable)
(d)
An explanation of significant changes to any quantitative information since the last reporting period.
Basel III Regulatory Capital Disclosures (Unaudited):
Securitization Exposures
18
Quantitative
(e)
The total outstanding exposures securitized by the Board-regulated institution in securitizations that meet the operational criteria provided in § 217.41 (categorized into traditional and synthetic securitizations), by exposure type, separately for securitizations of third-party exposures for which the bank acts only as sponsor.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 13: Securitization Exposures by Type
18
(f)
For exposures securitized by the Board-regulated institution in securitizations that meet the operational criteria in § 217.41:
Amount of securitized assets that are impaired/past due categorized by exposure type;5 and
Losses recognized by the Board-regulated institution during the current period categorized by exposure type.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 13: Securitization Exposures by Type
18
(g)
The total amount of outstanding exposures intended to be securitized categorized by exposure type.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 13: Securitization Exposures by Type
18
(h)
Aggregate amount of:
On-balance sheet securitization exposures retained or purchased categorized by exposure type; and
Off-balance sheet securitization exposures categorized by exposure type.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 13: Securitization Exposures by Type
18
(i)
Aggregate amount of securitization exposures retained or purchased and the associated capital requirements for these exposures, categorized between securitization and resecuritization exposures, further categorized into a meaningful number of risk weight bands and by risk-based capital approach (e.g., SSFA); and
Aggregate amount disclosed separately by type of underlying exposure in the pool of any:
After-tax gain-on-sale on a securitization that has been deducted from common equity tier 1 capital; and
Credit-enhancing interest-only strip that is assigned a 1,250 percent risk weight.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 13: Securitization Exposures by Type
18
(j)
Summary of current year's securitization activity, including the amount of exposures securitized (by exposure type), and recognized gain or loss on sale by exposure type.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 13: Securitization Exposures by Type
18
(k)
Aggregate amount of resecuritization exposures retained or purchased categorized according to:
Exposures to which credit risk mitigation is applied and those not applied; and
Exposures to guarantors categorized according to guarantor creditworthiness categories or guarantor name.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 12: Exposures Covered by Collateral and Guarantees
17
Equities Not Subject to the Market Risk Rule
Qualitative
(a)
The general qualitative disclosure requirement with respect to equity risk for equities not subject to subpart F of this part, including:
Differentiation between holdings on which capital gains are expected and those taken under other objectives including for relationship and strategic reasons; and
Discussion of important policies covering the valuation of and accounting for equity holdings not subject to subpart F of this part. This includes the accounting techniques and valuation methodologies used, including key assumptions and practices affecting valuation as well as significant changes in these practices.
Basel III Regulatory Capital Disclosures (Unaudited):
Equity Investments Not Subject to the Market Risk Rule
18
Quantitative
(b)
Value disclosed on the balance sheet of investments, as well as the fair value of those investments; for securities that are publicly traded, a comparison to publicly-quoted share values where the share price is materially different from fair value.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 15: Equity Exposures: Publicly Traded vs. Non publicly Traded
19
(c)
The types and nature of investments, including the amount that is: (1) Publicly traded; and
(2) Non publicly traded.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 15: Equity Exposures: Publicly Traded vs. Non publicly Traded
19
Table
Disclosure Requirement
Disclosure Location
Disclosure Page
Source Reference (if applicable)
(d)
The cumulative realized gains (losses) arising from sales and liquidations in the reporting period.
Basel III Regulatory Capital Disclosures (Unaudited):
Realized and Unrealized Gains and Losses
20
(e)
Total unrealized gains (losses).
Total latent revaluation gains (losses).
Any amounts of the above included in tier 1 or tier 2 capital.
Basel III Regulatory Capital Disclosures (Unaudited):
Realized and Unrealized Gains and Losses
FR Y-9C - Consolidated Financial Statement for Holding Companies (Unaudited):
Schedule HC-R, Part I -Regulatory Capital Components and Ratios
20
FR Y-9C:
Schedule HC-R, Part I
(f)
Capital requirements categorized by appropriate equity groupings, consistent with the Board-regulated institution's methodology, as well as the aggregate amounts and the type of equity investments subject to any supervisory transition regarding regulatory capital requirements.
Basel III Regulatory Capital Disclosures (Unaudited):
Table 14: Equity Exposures and RWA by Type
19
Interest Rate Risk for Non-Trading Activities
Qualitative
(a)
The general qualitative disclosure requirement, including the nature of interest rate risk for non-trading activities and key assumptions, including assumptions regarding loan prepayments and behavior of non-maturity deposits, and frequency of measurement of interest rate risk for non-trading activities.
Form 10-Q (Unaudited):
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Form 10-Q:
P.86
Quantitative
(b)
The increase (decline) in earnings or economic value (or relevant measure used by management) for upward and downward rate shocks according to management's method for measuring interest rate risk for non-trading activities, categorized by currency (as appropriate).
Form 10-Q (Unaudited):
Item 3. Quantitative and Qualitative Disclosures about Market Risk
Form 10-Q:
P.86
Disclaimer
Western Alliance Bancorporation published this content on May 11, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 11, 2026 at 19:14 UTC.