# Western Alliance 3 Key Takeaways

> Western Alliance cuts funding costs and boosts profits for long-term investors.
- Title: Western Alliance 3 Key Takeaways · The Motley Fool | Shortify
- Summary: Western Alliance cuts funding costs and boosts profits for long-term investors. Western Alliance reduced higher-cost deposits by $4.5 billion to improve net…
- Keywords: western alliance, net interest margin, deposit remixing, share repurchases, commercial banking, finance, money, Western, Alliance, Key, Takeaways, The Motley Fool
- Source: The Motley Fool — https://fool.com/earnings/takeaways/2026/10/21/western-alliance-3-key-takeaways-for-long-term-investors
- Author: The Motley Fool Team
- Published: 2026-10-21T22:30:02+00:00
- Read time: 1 min
- Topics: western alliance, net interest margin, deposit remixing, share repurchases, commercial banking, finance, money
## Shifting Higher-Cost Deposits
Western Alliance reduced higher-cost deposits by $4.5 billion over two quarters to lower funding costs.

> During the quarter, we transitioned $3 billion of higher cost ECR related deposits while keeping total deposits essentially flat compared with the prior quarter.
## Lowering Nonaccrual Loans
Nonaccrual loans dropped 14% to $485 million, improving balance sheet quality.

> Nonaccrual loans declined 14% or $77 million from the prior quarter to $485 million exceeding the expectations outlined in our guidance update last month.
## Share Repurchases
Western Alliance repurchased $92 million of shares, representing 1% of outstanding shares.

> In Q3, we repurchased shares of $92 million against our $150 million target for the second half of 2026, representing approximately 1.15 million shares or roughly 1% of shares outstanding.
## Key takeaway

Western Alliance reduced higher-cost deposits by $4.5 billion to improve net interest margins and share repurchases.