Western Alliance reports $152.5M fraud-related charge-offs, files lawsuits against Jefferies and Cantor

Filed May 10, 2026 · Period ending March 31, 2026 · Compared to 10-Q Apr 30, 2025 · ~2 min read

Key Changes

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  Bank charged off $126.4M on trade finance loan to Leucadia/Jefferies after borrower's collateral (First Brands Group receivables) entered bankruptcy and forbearance agreement failed; lawsuit filed March 2026 alleging breach of contract and fraudulent inducement.

  Legal Proceedings verify on EDGAR →
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  Additional $26.1M charge-off on Cantor Group V loan after updated appraisals; bank purchased $13M non-performing senior lien loan to protect collateral position and plans further acquisitions to secure recovery.

  MD&A: Credit Quality verify on EDGAR →
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  Adjusted EPS of $2.22 rose 24% year-over-year despite fraud losses, driven by $50.5M investment securities gains, 7bp net interest margin expansion to 3.54%, and 770bp efficiency ratio improvement to 55.8%.

  MD&A: Results of Operations verify on EDGAR →