WAL · Western Alliance Bancorporation

Summary

Western Alliance Bancorporation disclosed a $126.4 million non-cash impairment charge on a commercial loan facility due to counterparties Jefferies Financial Group, Leucadia Asset Management LLC, and affiliates failing to make required principal payments under a forbearance agreement. The Bank filed a complaint in New York Supreme Court alleging breach of contract and fraud, with planned offsets from $50 million securities gains and $50 million expense reductions.

Key takeaways

• $126.4 million loan balance charged off in Q1 2026
• Counterparties Jefferies and LAM failed to pay $42.125 million on February 27, 2026, and future payments
• Impairment concluded on March 2, 2026; complaint filed March 6, 2026 in New York Supreme Court
• $45 million of $50 million planned securities gains realized quarter-to-date
• $50 million incremental expense savings identified
• CET1 capital $7.0 billion (11.0%) and total risk-based capital $9.2 billion (14.5%) as of December 31, 2025