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8-K

Western Alliance Bancorporation (WAL)

8-K 2023-04-18 For: 2023-04-18
View Original
Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  April 18, 2023

WESTERN ALLIANCE BANCORPORATION

(Exact name of registrant as specified in its charter)

Delaware 001-32550 88-0365922
(State or other jurisdiction<br>of incorporation) (Commission<br>File Number) (IRS Employer<br>Identification No.)

One E. Washington Street, Phoenix, Arizona  85004

(Address of principal executive offices)               (Zip Code)

(602) 389-3500

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.0001 Par Value WAL New York Stock Exchange
Depositary Shares, Each Representing a 1/400th Interest in a Share of<br><br>4.250% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A WAL PrA New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 18, 2023, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended March 31, 2023 and posted on its website its first quarter 2023 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. Copies of the press release and presentation slides are attached hereto as Exhibits 99.1 and 99.2, respectively.

The information in this report (including Exhibits 99.1 and 99.2 hereto) is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

99.1 Press Release dated April18, 2023
99.2 FirstQuarter 2023Earnings Conference Call dated April19, 2023
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WESTERN ALLIANCE BANCORPORATION
(Registrant)
/s/ Dale Gibbons
Dale Gibbons
Executive Vice President and
Chief Financial Officer
Date: April 18, 2023

Document

Western Alliance Bancorporation
One East Washington Street
Phoenix, AZ 85004
www.westernalliancebancorporation.com

PHOENIX--(BUSINESS WIRE)--April 18, 2023

FIRST QUARTER 2023 FINANCIAL RESULTS

Fourth Quarter Highlights:
Net income PPNR1 Net interest margin Book value per <br>common share
142.2 million $351.6 million 3.79% $47.72
41.561, excluding goodwill and intangibles

All values are in US Dollars.

CEO COMMENTARY:
“The flexibility of our diversified, national commercial banking strategy, with a broad range of value-added deposit channels and deep commercial customer relationships in a wide variety of sectors and geographies, all contributed to our firm’s resilience in the face of recent turbulence in the banking industry,” said Kenneth A. Vecchione, President and Chief Executive Officer. “We believe our focus on sound financial fundamentals and stable asset quality have helped us navigate through this challenging time. As we move forward with a renewed perspective, we are well-positioned to expand our client relationships and continue to achieve a strong return profile. Balance sheet repositioning, which included surgical sale of assets and loan reclassifications, resulted in after tax net non-operating charges of $109.7 million, but will have an immediate accretive impact to regulatory capital and allow us to prioritize core client relationships with holistic lending, deposit, and treasury management needs. The Company earned through these charges and achieved net income of $142.2 million and earnings per share of $1.28 for the quarter, increasing tangible book value per share1 3.3% to $41.56 from year-end with a CET1 ratio of 9.4%. While we experienced elevated net deposit outflows immediately following the closure of other banks, deposit balances quickly stabilized with end of quarter deposits of $47.6 billion. Since March 31, deposits have increased an additional $2.0 billion through April 14, with total insured deposits representing 73% of total deposits, which is well above industry norms compared to the 50 largest U.S. banks. Immediately available liquidity exceeds uninsured deposits, with a coverage ratio of 158% as of April 14. As we travel through the year and into 2024, capital expectations are targeted against a higher CET1 ratio at or above 11% with greater liquidity to be evidenced by a loan-to-deposit ratio in the mid-80% range. Balance sheet and earnings trajectory will be informed by these guideposts.” LINKED-QUARTER BASIS YEAR-OVER-YEAR
--- ---
FINANCIAL HIGHLIGHTS:

▪Net income of $142.2 million and earnings per share of $1.28, compared to $293.0 million and $2.67, respectively

▪Adjusted earnings per share1 of $2.30 decreased from $2.74

▪Net revenue of $551.9 million, a decrease of 21.3%, or $149.3 million, compared to an increase in non-interest expenses of 4.3%, or $14.5 million

▪Adjusted net revenue1 of $712.2 million, an increase of $1.9 million

▪Pre-provision net revenue1 of $351.6 million, down $25.3 million from $376.9 million

▪Effective tax rate of 23.0%, compared to 19.7%

▪Net income of $142.2 million and earnings per share of $1.28, down 40.8% and 42.3%, from $240.1 million and $2.22, respectively

▪Adjusted earnings per share1 of $2.30 increased from $2.22

▪Net revenue of $551.9 million, a decrease of 0.7%, or $3.9 million, compared to an increase in non-interest expenses of 39.9%, or $99.3 million

▪Adjusted net revenue1 of $712.2 million, an increase of $156.7 million

▪Pre-provision net revenue1 of $351.6 million, up $44.7 million from $306.9 million

▪Effective tax rate of 23.0%, compared to 19.5%

FINANCIAL POSITION RESULTS:

▪HFI loans of $46.4 billion, down $5.4 billion, or 10.5%

▪Total deposits of $47.6 billion, down $6.1 billion, or 11.3%

▪Stockholders' equity of $5.5 billion, up $165 million

▪Increase in HFI loans of $5.3 billion, or 12.9%

▪Decrease in total deposits of $4.6 billion, or 8.8%

▪Increase in stockholders' equity of $509 million

LOANS AND ASSET QUALITY:

▪Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.17%, compared to 0.14%

▪Annualized net loan charge-offs to average loans outstanding of 0.05%, compared to 0.01%

▪Nonperforming assets to total assets of 0.17%, compared to 0.17%

▪Annualized net loan charge-offs to average loans outstanding of 0.05%, compared to approximately 0.00%

KEY PERFORMANCE METRICS:

▪Net interest margin of 3.79% decreased from 3.98%

▪Return on average assets and on tangible common equity1 of 0.81% and 12.2%, compared to 1.67% and 27.0%, respectively

▪Adjusted return on average assets1 and adjusted tangible common equity1 of 1.43% and 21.9% compared to 1.71% and 27.7%, respectively

▪Tangible common equity ratio1 of 6.5%, compared to 6.5%

▪CET 1 ratio of 9.4% increased from 9.3%

▪Tangible book value per share1, net of tax, of $41.56, an increase of 3.3% from $40.25

▪Efficiency ratio1 of 43.2%, compared to 39.4%

▪Net interest margin of 3.79% increased from 3.32%

▪Return on average assets and on tangible common equity1 of 0.81% and 12.2%, compared to 1.64% and 23.9%, respectively

▪Adjusted return on average assets1 and adjusted tangible common equity1 of 1.43% and 21.9% compared to 1.64% and 23.9%, respectively

▪Tangible common equity ratio1 of 6.5% decreased from 6.7%

▪CET 1 ratio of 9.4% increased from 9.0%

▪Tangible book value per share1, net of tax, of $41.56, an increase of 11.9% from $37.13

▪Efficiency ratio1 of 43.2%, compared to 43.2%

1     See reconciliation of Non-GAAP Financial Measures starting on page 18.

Income Statement

Net interest income was $609.9 million in the first quarter 2023, a decrease of $29.8 million from $639.7 million in the fourth quarter 2022, and an increase of $160.4 million, or 35.7%, compared to the first quarter 2022. The decrease in net interest income from the fourth quarter 2022 is due to an increase in average balances of short-term borrowings and interest bearing deposits, combined with higher average interest rates. These were partially offset by higher yields on HFI loans and an increase in the average cash balance. The net interest income increase from the first quarter 2022 was driven by HFI loan growth and higher yields on HFI loans, partially offset by an increase in other borrowings and higher interest rates on liabilities.

The Company recorded a provision for credit losses of $19.4 million in the first quarter 2023, an increase of $16.3 million from $3.1 million in the fourth quarter 2022, and an increase of $10.4 million from $9.0 million in the first quarter 2022. The provision for credit losses during the first quarter 2023 is primarily due to a charge-off of a corporate debt security from a financial institution issuer and heightened economic uncertainty, offset by a decrease in HFI loans as the Company transferred $6.0 billion of held for investment loans to held for sale as part of its balance sheet repositioning plan to strengthen regulatory capital.

The Company’s net interest margin in the first quarter 2023 was 3.79%, a decrease from 3.98% in the fourth quarter 2022, and an increase from 3.32% in the first quarter 2022. Higher balances and rates on borrowings and interest bearing deposits drove a decrease in net interest margin, with higher yields on HFI loans partially offsetting the decrease. The increase in net interest margin from the first quarter 2022 was driven by HFI loan growth plus an increase in rates, partially offset by higher deposits and borrowings balances and rates.

Non-interest income was $(58.0) million, or $102.3 million after adjusting for losses on security sales and fair value adjustments, for the first quarter 2023, compared to $61.5 million for the fourth quarter 2022, and $106.3 million for the first quarter 2022. Fair value loss adjustments of $147.8 million are primarily related to the transfer of $6.0 billion of held for investment loans to held for sale. This decrease in non-interest income for the quarter was partially offset by a $20.5 million increase in net loan servicing revenue due to an increase in fees and the value of MSRs as well as a $6.0 million increase in net gain on loan origination and sale activities from an increase in spreads and gains from trading activity. The $164.3 million decrease from the first quarter 2022 was driven by fair value loss adjustments from HFI loans transferred to HFS and losses from sales of investment securities.

Net revenue was $551.9 million for the first quarter 2023, compared to $701.2 million and $555.8 million for the fourth quarter 2022 and first quarter 2022, respectively. After adjusting for losses on security sales and fair value adjustments, net revenue1 was $712.2 million for the first quarter 2023, an increase of $1.9 million, compared to $710.3 million for the fourth quarter 2022, and an increase of $156.7 million, or 28.2%, compared to $555.5 million for the first quarter 2022.

Non-interest expense was $347.9 million, or $360.6 million after adjusting for gain on extinguishment of debt from payoff of credit linked notes, for the first quarter 2023, compared to $333.4 million for the fourth quarter 2022, and $248.6 million for the first quarter 2022. The Company’s adjusted efficiency ratio1 was 43.2% for the first quarter 2023, compared to 39.4% in the fourth quarter 2022, and 43.2% for the first quarter 2022. The increase in non-interest expense from the fourth quarter 2022 is due primarily to higher salaries and benefits costs. The increase in non-interest expense from the first quarter 2022 is attributable to increased deposit costs.

Income tax expense was $42.4 million for the first quarter 2023, compared to $71.7 million for the fourth quarter 2022, and $58.1 million for the first quarter 2022.

Net income was $142.2 million for the first quarter 2023, a decrease of $150.8 million from $293.0 million for the fourth quarter 2022, and a decrease of $97.9 million from $240.1 million for the first quarter 2022. Earnings per share totaled $1.28 for the first quarter 2023, compared to $2.67 for the fourth quarter 2022, and $2.22 for the first quarter 2022. Earnings per share1 adjusted for losses on security sales, fair value loss adjustments and gain on extinguishment of debt was $2.30 for the first quarter 2023, compared to $2.74 and $2.22 for the fourth quarter 2022 and first quarter 2022, respectively.

The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net revenue1 less non-interest expense1. For the first quarter 2023, the Company’s PPNR1 was $351.6 million, down $25.3 million from $376.9 million in the fourth quarter 2022, and up $44.7 million from $306.9 million in the first quarter 2022.

The Company had 3,340 full-time equivalent employees and 57 offices at March 31, 2023, compared to 3,365 employees and 56 offices at December 31, 2022, and 3,170 employees and 60 offices at March 31, 2022.

1    See reconciliation of Non-GAAP Financial Measures starting on page 18.

Balance Sheet

HFI loans, net of deferred fees totaled $46.4 billion at March 31, 2023, compared to $51.9 billion at December 31, 2022, and $41.1 billion at March 31, 2022. The decrease in HFI loans of $5.4 billion from the prior quarter was driven by a decrease of $5.2 billion in commercial and industrial loans as $5.4 billion of commercial and industrial loans were transferred to HFS as of quarter-end. In addition, residential real estate loans decreased $904 million ($490 million transferred to HFS), partially offset by increases of $394 million in construction and land development and $298 million in CRE non-owner occupied loans ($110 million transferred to HFS). From March 31, 2022, HFI loan growth of $5.3 billion, was primarily driven by residential real estate, CRE non-owner occupied, and construction and land development loans which increased $3.8 billion, $2.8 billion, and $1.1 billion, respectively, offset by commercial and industrial loans which decreased $2.4 billion.

The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. At March 31, 2023, the allowance for loan losses to funded HFI loans ratio was 0.66%, compared to 0.60% at December 31, 2022, and 0.63% at March 31, 2022. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.75% at March 31, 2023, compared to 0.69% at December 31, 2022, and 0.73% at March 31, 2022. The Company is a party to credit linked note transactions, which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. As of March 31, 2023, December 31, 2022, and March 31, 2022, the Company is protected from first credit losses on reference pools of loans totaling $11.0 billion, $12.0 billion, and $5.4 billion, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance of $20.8 million as of March 31, 2023, $21.9 million as of December 31, 2022, and $9.5 million as of March 31, 2022, related to these pools of loans. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 0.95% at March 31, 2023, 0.89% at December 31, 2022, and 0.84% at March 31, 2022.

Deposits totaled $47.6 billion at March 31, 2023, a decrease of $6.1 billion from $53.6 billion at December 31, 2022, and a decrease of $4.6 billion from $52.2 billion at March 31, 2022. By deposit type, the decrease from the prior quarter is attributable to a decrease of $5.6 billion from savings and money market accounts and $3.2 billion from non-interest bearing demand deposits, partially offset by increases of $1.5 billion from certificates of deposits and $1.2 billion from interest bearing demand deposits. From March 31, 2022, non-interest bearing demand deposits and savings and money market accounts decreased $7.1 billion and $4.7 billion, respectively. These decreases were partially offset by increases in certificates of deposit and interest-bearing demand deposits of $4.7 billion and $2.5 billion, respectively. Non-interest bearing deposits were $16.5 billion at March 31, 2023, compared to $19.7 billion at December 31, 2022, and $23.5 billion at March 31, 2022.

The table below shows the Company's deposit types as a percentage of total deposits:

Mar 31, 2023 Dec 31, 2022 Mar 31, 2022
Non-interest bearing 34.6 % 36.7 % 45.1 %
Savings and money market 29.1 36.2 35.6
Interest-bearing demand 22.5 17.7 15.8
Certificates of deposit 13.8 9.4 3.5

The Company’s ratio of HFI loans to deposits was 97.6% at March 31, 2023, compared to 96.7% at December 31, 2022, and 78.8% at March 31, 2022.

Borrowings were $15.9 billion at March 31, 2023, $6.3 billion at December 31, 2022, and $833 million at March 31, 2022. Borrowings increased from December 31, 2022 due primarily to an increase in short-term borrowings of $9.8 billion offset by payoffs of credit linked notes of $265 million. The increase in borrowings from March 31, 2022 is due to an increase in short-term borrowings of $14.7 billion and issuance of $579 million of credit linked notes, net of issuance costs, during 2022, less payoffs of credit linked notes in the first quarter of 2023.

Qualifying debt totaled $895 million at March 31, 2023, compared to $893 million at December 31, 2022 and March 31, 2022.

Stockholders’ equity was $5.5 billion at March 31, 2023, compared to $5.4 billion at December 31, 2022 and $5.0 billion at March 31, 2022. The increase in stockholders’ equity quarter over quarter was due to net income and unrealized fair value gains of approximately $71 million on the Company's available for sale securities, which are recorded in other comprehensive (loss) income, net of tax, partially offset by dividends to shareholders. A cash dividend of $0.36 per share was paid to common shareholders on March 3, 2023, totaling $39.4 million, and a cash dividend of $0.27 per depository share was paid to preferred shareholders on March 30, 2023, totaling $3.2 million. The increase in stockholders' equity from March 31, 2022 is primarily a function of net income and sales of common stock under the Company's ATM program, partially offset by dividends to shareholders and unrealized fair value losses on available for sale securities.

At March 31, 2023, tangible common equity, net of tax1, was 6.5% of tangible assets1 and total capital was 12.1% of risk-weighted assets. The Company’s tangible book value per share1 was $41.56 at March 31, 2023, an increase of 3.3% from $40.25 at December 31, 2022, and up 11.9% from $37.13 at March 31, 2022. The increase in tangible book value per share from December 31, 2022 is attributable to net income and unrealized fair value gains on the Company's available for sale securities.

Total assets increased 4.9% to $71.0 billion at March 31, 2023, from $67.7 billion at December 31, 2022, and increased 17.3% from $60.6 billion at March 31, 2022. The increase in total assets from December 31, 2022 and March 31, 2022 was driven by an increase in cash and investments.

1     See reconciliation of Non-GAAP Financial Measures starting on page 18.

Asset Quality

Provision for credit losses totaled $19.4 million for the first quarter 2023, compared to $3.1 million for the fourth quarter 2022, and $9.0 million for the first quarter 2022. Net loan charge-offs in the first quarter 2023 were $6.0 million, or 0.05% of average loans (annualized), compared to $1.8 million, or 0.01%, in the fourth quarter 2022, and $0.2 million, or approximately 0.00%, in the first quarter 2022.

Nonaccrual loans increased $22 million to $107 million during the quarter and increased $16 million from March 31, 2022. Loans past due 90 days and still accruing interest were $1 million (excluding government guaranteed loans of $494 million) at March 31, 2023, compared to zero at December 31, 2022 and March 31, 2022 (excluding government guaranteed loans of $582 million and zero at December 31, 2022 and March 31, 2022, respectively). Loans past due 30-89 days and still accruing interest totaled $58 million (excluding government guaranteed loans of $281 million) at March 31, 2023, a decrease from $70 million at December 31, 2022, and flat from $58 million at March 31, 2022 (excluding government guaranteed loans of $334 million and zero at December 31, 2022 and March 31, 2022, respectively).

Repossessed assets totaled $11 million at March 31, 2023, flat from December 31, 2022, and a $1 million decrease from $12 million at March 31, 2022. Classified assets totaled $459 million at March 31, 2023, an increase of $66 million from $393 million at December 31, 2022, and an increase of $94 million from $365 million at March 31, 2022.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 7.8% at March 31, 2023, compared to 6.8% at December 31, 2022, and 7.4% at March 31, 2022.

1     See reconciliation of Non-GAAP Financial Measures starting on page 18.

Segment Highlights

The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:

–Commercial segment: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.

–Consumer Related segment: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking.

–Corporate & Other segment: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.

Key management metrics for evaluating the performance of the Company's Commercial and Consumer Related segments include loan and deposit growth, asset quality, and pre-tax income.

The Commercial segment reported an HFI loan balance of $27.3 billion at March 31, 2023, a decrease of $4.1 billion during the quarter, and an increase of $1.5 billion during the last twelve months. The Commercial segment also has loans held for sale of $4.7 billion at March 31, 2023. Deposits for the Commercial segment totaled $22.0 billion at March 31, 2023, a decrease of $7.5 billion during the quarter, and a decrease of $8.1 billion during the last twelve months.

Pre-tax income for the Commercial segment was $159.4 million for the three months ended March 31, 2023, a decrease of $161.1 million from the three months ended December 31, 2022, and a decrease of $77.4 million from the three months ended March 31, 2022.

The Consumer Related segment reported an HFI loan balance of $19.2 billion at March 31, 2023, a decrease of $1.3 billion during the quarter, and an increase of $3.8 billion during the last twelve months. The Consumer Related segment also has loans held for sale of $2.3 billion at March 31, 2023, an increase of $1.1 billion during the quarter, and a decrease of $2.5 billion during the last twelve months. Deposits for the Consumer Related segment totaled $20.0 billion, an increase of $1.5 billion during the quarter and during the last twelve months.

Pre-tax income for the Consumer Related segment was $56.8 million for the three months ended March 31, 2023, a decrease of $13.0 million from the three months ended December 31, 2022, and a decrease of $70.1 million from the three months ended March 31, 2022.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2023 financial results at 12:00 p.m. ET on Wednesday, April 19, 2023. Participants may access the call by dialing 1-833-470-1428 and using access code 192362 or via live audio webcast using the website link https://events.q4inc.com/attendee/218206682. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET April 19th through 11:00 p.m. ET May 19th by dialing 1-866-813-9403, using access code 279348.

Reclassifications

Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Use of Non-GAAP Financial Information

This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the recent bank failures and any related impact on depositor behavior; risks related to the sufficiency of liquidity; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the war between Russia and Ukraine; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.

About Western Alliance Bancorporation

With more than $65 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, business clients benefit from a full spectrum of tailored banking solutions and outstanding service delivered by industry experts who put customers first. Major accolades include #2 best-performing of the 50 largest public U.S. banks in the S&P Global Market Intelligence listing for 2021, and #1 Best Emerging Regional Bank for 2022 by Bank Director. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit westernalliancebank.com.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of March 31,
2023 2022 Change %
(in millions)
Total assets $ 71,047 $ 60,576 17.3%
Loans held for sale 7,022 4,762 47.5
HFI loans, net of deferred fees 46,435 41,119 12.9
Investment securities 9,493 8,277 14.7
Total deposits 47,587 52,160 (8.8)
Borrowings 15,853 833 NM
Qualifying debt 895 893 0.2
Stockholders' equity 5,521 5,012 10.2
Tangible common equity, net of tax (1) 4,551 4,021 13.2
Common equity Tier 1 capital 5,159 4,292 20.2
Selected Income Statement Data:
For the Three Ended March 31,
2023 2022 Change %
(in millions, except per share data)
Interest income $ 968.9 $ 484.5 100.0 %
Interest expense 359.0 35.0 NM
Net interest income 609.9 449.5 35.7
Provision for credit losses 19.4 9.0 NM
Net interest income after provision for credit losses 590.5 440.5 34.1
Non-interest income (58.0) 106.3 NM
Non-interest expense 347.9 248.6 39.9
Income before income taxes 184.6 298.2 (38.1)
Income tax expense 42.4 58.1 (27.0)
Net income 142.2 240.1 (40.8)
Dividends on preferred stock 3.2 3.2 —
Net income available to common stockholders $ 139.0 $ 236.9 (41.3)
Diluted earnings per common share $ 1.28 $ 2.22 (42.3)

(1)    See Reconciliation of Non-GAAP Financial Measures.

NM    Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended March 31,
2023 2022 Change %
Diluted earnings per common share $ 1.28 $ 2.22 (42.3) %
Book value per common share 47.72 43.56 9.6
Tangible book value per common share, net of tax (1) 41.56 37.13 11.9
Average common shares outstanding <br>(in millions):
Basic 108.2 106.0 2.0
Diluted 108.3 106.6 1.6
Common shares outstanding 109.5 108.3 1.1 Selected Performance Ratios:
--- --- --- --- --- --- ---
Return on average assets (2) 0.81 % 1.64 % (50.6) %
Return on average tangible common equity (1, 2) 12.2 23.9 (49.0)
Return on average tangible common equity, excluding AOCI (1, 2) 10.8 23.6 (54.2)
Net interest margin (2) 3.79 3.32 14.2
Efficiency ratio - tax equivalent basis (1) 43.2 43.2 —
HFI loan to deposit ratio 97.6 78.8 23.9
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans outstanding (2) 0.05 % 0.00 % NM
Nonaccrual loans to funded HFI loans 0.23 0.22 4.5
Nonaccrual loans and repossessed assets to total assets 0.17 0.17 0.0
Allowance for loan losses to funded HFI loans 0.66 0.63 4.8
Allowance for loan losses to nonaccrual HFI loans 286 283 1.0 Capital Ratios:
--- --- --- --- --- --- ---
Mar 31, 2023 Dec 31, 2022 Mar 31, 2022
Tangible common equity (1) 6.5 % 6.5 % 6.7 %
Common Equity Tier 1 (3) 9.4 9.3 9.0
Tier 1 Leverage ratio (3) 7.8 7.8 8.0
Tier 1 Capital (3) 10.1 10.0 9.8
Total Capital (3) 12.1 12.1 12.0

(1)    See Reconciliation of Non-GAAP Financial Measures.

(2)    Annualized on an actual/actual basis for periods less than 12 months.

(3)    Capital ratios for March 31, 2023 are preliminary.

NM    Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended March 31,
2023 2022
(dollars in millions, except per share data)
Interest income:
Loans $ 832.7 $ 434.7
Investment securities 96.1 48.0
Other 40.1 1.8
Total interest income 968.9 484.5
Interest expense:
Deposits 231.6 14.1
Qualifying debt 9.3 8.4
Borrowings 118.1 12.5
Total interest expense 359.0 35.0
Net interest income 609.9 449.5
Provision for credit losses 19.4 9.0
Net interest income after provision for credit losses 590.5 440.5
Non-interest income:
Net loan servicing revenue 41.9 41.1
Net gain on loan origination and sale activities 31.4 36.9
Service charges and fees 9.5 7.0
Commercial banking related income 6.2 5.1
Gain on recovery from credit guarantees 3.3 2.3
Income from equity investments 1.4 4.1
(Loss) gain on sales of investment securities (12.5) 6.9
Fair value loss adjustments, net (147.8) (6.6)
Other 8.6 9.5
Total non-interest income (58.0) 106.3
Non-interest expenses:
Salaries and employee benefits 148.9 138.3
Deposit costs 86.9 9.3
Data processing 26.4 17.6
Legal, professional, and directors' fees 23.1 24.0
Occupancy 16.5 12.8
Insurance 15.7 7.2
Loan servicing expenses 13.8 10.8
Business development and marketing 5.2 4.4
Loan acquisition and origination expenses 4.4 6.5
Gain on extinguishment of debt (12.7) —
Net loss on sales and valuations of repossessed and other assets — 0.1
Other 19.7 17.6
Total non-interest expense 347.9 248.6
Income before income taxes 184.6 298.2
Income tax expense 42.4 58.1
Net income 142.2 240.1
Dividends on preferred stock 3.2 3.2
Net income available to common stockholders $ 139.0 $ 236.9
Earnings per common share:
Diluted shares 108.3 106.6
Diluted earnings per share $ 1.28 $ 2.22
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022
(in millions, except per share data)
Interest income:
Loans $ 832.7 $ 785.1 $ 657.0 $ 516.6 $ 434.7
Investment securities 96.1 89.4 75.9 59.3 48.0
Other 40.1 13.8 6.5 3.7 1.8
Total interest income 968.9 888.3 739.4 579.6 484.5
Interest expense:
Deposits 231.6 157.6 77.6 27.1 14.1
Qualifying debt 9.3 9.1 8.9 8.6 8.4
Borrowings 118.1 81.9 50.8 18.9 12.5
Total interest expense 359.0 248.6 137.3 54.6 35.0
Net interest income 609.9 639.7 602.1 525.0 449.5
Provision for credit losses 19.4 3.1 28.5 27.5 9.0
Net interest income after provision for credit losses 590.5 636.6 573.6 497.5 440.5
Non-interest income:
Net loan servicing revenue 41.9 21.4 23.0 45.4 41.1
Net gain on loan origination and sale activities 31.4 25.4 14.5 27.2 36.9
Service charges and fees 9.5 5.9 6.5 7.6 7.0
Commercial banking related income 6.2 5.5 5.1 5.8 5.1
Gain on recovery from credit guarantees 3.3 3.0 0.4 9.0 2.3
Income from equity investments 1.4 4.2 4.3 5.2 4.1
(Loss) gain on sales of investment securities (12.5) 0.1 — (0.2) 6.9
Fair value loss adjustments, net (147.8) (9.2) (2.8) (10.0) (6.6)
Other 8.6 5.2 10.8 5.0 9.5
Total non-interest income (58.0) 61.5 61.8 95.0 106.3
Non-interest expenses:
Salaries and employee benefits 148.9 125.7 136.5 139.0 138.3
Deposit costs 86.9 82.2 56.2 18.1 9.3
Data processing 26.4 23.9 21.8 19.7 17.6
Legal, professional, and directors' fees 23.1 26.0 24.8 25.1 24.0
Occupancy 16.5 15.8 13.9 13.0 12.8
Insurance 15.7 8.9 8.1 6.9 7.2
Loan servicing expenses 13.8 14.8 15.2 14.7 10.8
Business development and marketing 5.2 7.3 5.0 5.4 4.4
Loan acquisition and origination expenses 4.4 4.4 5.8 6.4 6.5
Net (gain) loss on sales and valuations of repossessed and other assets — (0.3) (0.2) (0.3) 0.1
Gain on extinguishment of debt (12.7) — — — —
Other 19.7 24.7 18.7 20.9 17.6
Total non-interest expense 347.9 333.4 305.8 268.9 248.6
Income before income taxes 184.6 364.7 329.6 323.6 298.2
Income tax expense 42.4 71.7 65.6 63.4 58.1
Net income 142.2 293.0 264.0 260.2 240.1
Dividends on preferred stock 3.2 3.2 3.2 3.2 3.2
Net income available to common stockholders $ 139.0 $ 289.8 $ 260.8 $ 257.0 $ 236.9
Earnings per common share:
Diluted shares 108.3 108.4 107.9 107.7 106.6
Diluted earnings per share $ 1.28 $ 2.67 $ 2.42 $ 2.39 $ 2.22
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022
(in millions)
Assets:
Cash and due from banks $ 3,639 $ 1,043 $ 1,610 $ 1,886 $ 2,602
Investment securities 9,493 8,760 8,603 8,802 8,277
Loans held for sale 7,022 1,184 2,204 2,803 4,762
Loans held for investment:
Commercial and industrial 15,503 20,710 22,318 20,754 17,862
Commercial real estate - non-owner occupied 9,617 9,319 8,668 7,775 6,849
Commercial real estate - owner occupied 1,809 1,818 1,848 1,848 1,805
Construction and land development 4,407 4,013 3,621 3,231 3,278
Residential real estate 15,024 15,928 15,674 14,908 11,270
Consumer 75 74 72 56 55
Loans HFI, net of deferred fees 46,435 51,862 52,201 48,572 41,119
Allowance for loan losses (305) (310) (304) (273) (258)
Loans HFI, net of deferred fees and allowance 46,130 51,552 51,897 48,299 40,861
Mortgage servicing rights 910 1,148 1,044 826 950
Premises and equipment, net 293 276 237 210 196
Operating lease right-of-use asset 156 163 131 136 142
Other assets acquired through foreclosure, net 11 11 11 12 12
Bank owned life insurance 183 182 181 180 179
Goodwill and other intangibles, net 677 680 682 695 698
Other assets 2,533 2,735 2,565 2,206 1,897
Total assets $ 71,047 $ 67,734 $ 69,165 $ 66,055 $ 60,576
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits $ 16,465 $ 19,691 $ 24,926 $ 23,721 $ 23,520
Interest bearing:
Demand 10,719 9,507 8,350 8,387 8,268
Savings and money market 13,845 19,397 19,202 19,026 18,553
Certificates of deposit 6,558 5,049 3,111 2,578 1,818
Total deposits 47,587 53,644 55,589 53,712 52,159
Borrowings 15,853 6,299 6,319 5,210 833
Qualifying debt 895 893 889 891 893
Operating lease liability 184 185 149 151 155
Accrued interest payable and other liabilities 1,007 1,357 1,198 1,132 1,524
Total liabilities 65,526 62,378 64,144 61,096 55,564
Stockholders' Equity:
Preferred stock 295 295 295 295 295
Common stock and additional paid-in capital 2,054 2,058 2,049 1,990 1,979
Retained earnings 3,764 3,664 3,413 3,192 2,973
Accumulated other comprehensive (loss) income (592) (661) (736) (518) (235)
Total stockholders' equity 5,521 5,356 5,021 4,959 5,012
Total liabilities and stockholders' equity $ 71,047 $ 67,734 $ 69,165 $ 66,055 $ 60,576
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022
(in millions)
Allowance for loan losses
Balance, beginning of period $ 309.7 $ 304.1 $ 273.2 $ 257.6 $ 252.5
Provision for credit losses (1) 1.0 7.4 29.0 17.0 5.3
Recoveries of loans previously charged-off:
Commercial and industrial 3.2 0.3 3.8 0.8 2.4
Commercial real estate - non-owner occupied — — 0.1 — —
Commercial real estate - owner occupied — 0.1 — 0.1 —
Construction and land development — — 0.1 — —
Residential real estate — — — 0.1 —
Consumer — — — — —
Total recoveries 3.2 0.4 4.0 1.0 2.4
Loans charged-off:
Commercial and industrial 9.1 1.1 2.1 2.4 2.6
Commercial real estate - non-owner occupied — — — — —
Commercial real estate - owner occupied — 0.5 — — —
Construction and land development — 0.6 — — —
Residential real estate — — — — —
Consumer 0.1 — — — —
Total loans charged-off 9.2 2.2 2.1 2.4 2.6
Net loan charge-offs (recoveries) 6.0 1.8 (1.9) 1.4 0.2
Balance, end of period $ 304.7 $ 309.7 $ 304.1 $ 273.2 $ 257.6
Allowance for unfunded loan commitments
Balance, beginning of period $ 47.0 $ 52.1 $ 53.8 $ 43.3 $ 37.6
(Recovery of) provision for credit losses (1) (2.2) (5.1) (1.7) 10.5 5.7
Balance, end of period (2) $ 44.8 $ 47.0 $ 52.1 $ 53.8 $ 43.3
Components of the allowance for credit losses on loans
Allowance for loan losses $ 304.7 $ 309.7 $ 304.1 $ 273.2 $ 257.6
Allowance for unfunded loan commitments 44.8 47.0 52.1 53.8 43.3
Total allowance for credit losses on loans $ 349.5 $ 356.7 $ 356.2 $ 327.0 $ 300.9
Net charge-offs (recoveries) to average loans - annualized 0.05 % 0.01 % (0.02) % 0.01 % 0.00 %
Allowance ratios
Allowance for loan losses to funded HFI loans (3) 0.66 % 0.60 % 0.58 % 0.56 % 0.63 %
Allowance for credit losses to funded HFI loans (3) 0.75 0.69 0.68 0.67 0.73
Allowance for loan losses to nonaccrual HFI loans 286 364 338 321 283
Allowance for credit losses to nonaccrual HFI loans 327 420 396 385 331

(1)    The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $19.3 million and $1.3 million provision for credit losses on AFS and HTM investment securities, respectively, for the three months ended March 31, 2023. The allowance for credit losses on AFS and HTM investment securities totaled $2.2 million and $6.5 million, respectively, as of March 31, 2023.

(2)    The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.

(3)    Ratio includes an allowance for credit losses of $20.8 million as of March 31, 2023 related to a pool of loans covered under four separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022
(in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans $ 107 $ 85 $ 90 $ 85 $ 91
Nonaccrual loans to funded HFI loans 0.23 % 0.16 % 0.17 % 0.17 % 0.22 %
Repossessed assets $ 11 $ 11 $ 11 $ 12 $ 12
Nonaccrual loans and repossessed assets to total assets 0.17 % 0.14 % 0.15 % 0.15 % 0.17 %
Loans Past Due
Loans past due 90 days, still accruing (1) $ 1 $ — $ — $ — $ —
Loans past due 90 days, still accruing to funded HFI loans — % — % — % — % — %
Loans past due 30 to 89 days, still accruing (2) $ 58 $ 70 $ 56 $ 117 $ 58
Loans past due 30 to 89 days, still accruing to funded HFI loans 0.13 % 0.13 % 0.11 % 0.24 % 0.14 %
Other credit quality metrics
Special mention loans $ 320 $ 351 $ 312 $ 317 $ 350
Special mention loans to funded HFI loans 0.69 % 0.68 % 0.60 % 0.65 % 0.85 %
Classified loans on accrual $ 325 $ 280 $ 268 $ 232 $ 253
Classified loans on accrual to funded HFI loans 0.70 % 0.54 % 0.51 % 0.48 % 0.61 %
Classified assets $ 459 $ 393 $ 385 $ 346 $ 365
Classified assets to total assets 0.65 % 0.58 % 0.56 % 0.52 % 0.60 %

(1)    Excludes government guaranteed residential mortgage loans of $494 million, $582 million, $644 million, and $827 million as of March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.

(2)    Excludes government guaranteed residential mortgage loans of $281 million, $334 million, $245 million, and $202 million as of March 31, 2023, December 31, 2022, September 30, 2022, and June 30, 2022, respectively.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
March 31, 2023 December 31, 2022
Average Balance Interest Average Yield / <br>Cost Average Balance Interest Average Yield /<br>Cost
( in millions) ( in millions)
Interest earning assets
Loans held for sale $ 31.3 5.90 % $ 37.8 5.63 %
Loans held for investment:
Commercial and industrial 20,481 368.2 7.35 21,654 349.3 6.45
CRE - non-owner occupied 9,520 169.4 7.22 9,077 148.8 6.51
CRE - owner occupied 1,809 24.6 5.62 1,830 24.4 5.39
Construction and land development 4,230 93.3 8.94 3,798 80.2 8.38
Residential real estate 15,839 144.7 3.71 15,803 143.5 3.60
Consumer 73 1.2 6.82 71 1.1 6.26
Total HFI loans (1), (2), (3) 51,952 801.4 6.28 52,233 747.3 5.70
Securities:
Securities - taxable 6,658 75.2 4.58 6,397 68.4 4.25
Securities - tax-exempt 2,117 20.9 5.00 2,068 21.0 5.07
Total securities (1) 8,775 96.1 4.68 8,465 89.4 4.45
Cash and other 3,331 40.1 4.88 1,361 13.8 4.02
Total interest earning assets 66,211 968.9 5.99 64,718 888.3 5.50
Non-interest earning assets
Cash and due from banks 265 289
Allowance for credit losses (315) (308)
Bank owned life insurance 182 181
Other assets 4,931 4,613
Total assets
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts $ 68.2 2.63 % $ 43.6 1.98 %
Savings and money market 18,066 115.5 2.59 18,651 88.0 1.87
Certificates of deposit 5,520 47.9 3.52 4,260 26.0 2.42
Total interest-bearing deposits 34,120 231.6 2.75 31,665 157.6 1.97
Short-term borrowings 7,288 87.5 4.87 5,440 54.8 3.99
Long-term debt 1,275 30.6 9.73 1,240 27.1 8.68
Qualifying debt 893 9.3 4.24 890 9.1 4.08
Total interest-bearing liabilities 43,576 359.0 3.34 39,235 248.6 2.51
Interest cost of funding earning assets 2.20 1.52
Non-interest-bearing liabilities
Non-interest-bearing demand deposits 20,521 23,729
Other liabilities 1,589 1,296
Stockholders’ equity 5,588 5,233
Total liabilities and stockholders' equity
Net interest income and margin (4) $ 609.9 3.79 % $ 639.7 3.98 %

All values are in US Dollars.

(1)     Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.8 million and $9.0 million for the three months ended March 31, 2023 and December 31, 2022, respectively.

(2)    Included in the yield computation are net loan fees of $35.6 million and $34.8 million for the three months ended March 31, 2023 and December 31, 2022, respectively.

(3)    Includes non-accrual loans.

(4)    Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
March 31, 2023 March 31, 2022
Average Balance Interest Average Yield / <br>Cost Average Balance Interest Average Yield /<br>Cost
( in millions) ( in millions)
Interest earning assets
Loans held for sale $ 31.3 5.90 % $ 50.4 3.14 %
Loans held for investment:
Commercial and industrial 20,481 368.2 7.35 17,487 165.9 3.91
CRE - non-owner-occupied 9,520 169.4 7.22 6,690 73.2 4.44
CRE - owner-occupied 1,809 24.6 5.62 1,859 22.8 5.07
Construction and land development 4,230 93.3 8.94 3,090 41.7 5.47
Residential real estate 15,839 144.7 3.71 10,384 80.2 3.13
Consumer 73 1.2 6.82 52 0.5 3.95
Total HFI loans (1), (2), (3) 51,952 801.4 6.28 39,562 384.3 3.98
Securities:
Securities - taxable 6,658 75.2 4.58 5,534 29.9 2.19
Securities - tax-exempt 2,117 20.9 5.00 2,136 18.1 4.29
Total securities (1) 8,775 96.1 4.68 7,670 48.0 2.77
Cash and other 3,331 40.1 4.88 2,057 1.8 0.36
Total interest earning assets (4) 66,211 968.9 5.99 55,811 484.5 3.58
Non-interest earning assets
Cash and due from banks 265 245
Allowance for credit losses (315) (262)
Bank owned life insurance 182 181
Other assets 4,931 3,299
Total assets
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts $ 68.2 2.63 % $ 2.7 0.14 %
Savings and money market accounts 18,066 115.5 2.59 18,131 9.6 0.21
Certificates of deposit 5,520 47.9 3.52 1,920 1.8 0.38
Total interest-bearing deposits 34,120 231.6 2.75 27,794 14.1 0.21
Short-term borrowings 7,288 87.5 4.87 1,150 1.7 0.62
Long-term debt 1,275 30.6 9.73 770 10.8 5.67
Qualifying debt 893 9.3 4.24 896 8.4 3.81
Total interest-bearing liabilities 43,576 359.0 3.34 30,610 35.0 0.46
Interest cost of funding earning assets 2.20 0.26
Non-interest-bearing liabilities
Non-interest-bearing demand deposits 20,521 22,580
Other liabilities 1,589 1,095
Stockholders’ equity 5,588 4,989
Total liabilities and stockholders' equity
Net interest income and margin (5) $ 609.9 3.79 % $ 449.5 3.32 %

All values are in US Dollars.

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.8 million and $8.0 million for the three months ended March 31, 2023 and 2022, respectively.

(2)    Included in the yield computation are net loan fees of $35.6 million and $29.1 million for the three months ended March 31, 2023 and 2022, respectively.

(3)    Includes non-accrual loans.

(4)    Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated Company Commercial Consumer Related Corporate & Other
At March 31, 2023: (dollars in millions)
Assets:
Cash, cash equivalents, and investment securities $ 13,132 $ 12 $ — $ 13,120
Loans HFS 7,022 4,732 2,290 —
Loans HFI, net of deferred fees and costs 46,435 27,282 19,153 —
Less: allowance for credit losses (305) (255) (50) —
Net loans HFI 46,130 27,027 19,103 —
Other assets acquired through foreclosure, net 11 11 — —
Goodwill and other intangible assets, net 677 293 384 —
Other assets 4,075 550 1,703 1,822
Total assets $ 71,047 $ 32,625 $ 23,480 $ 14,942
Liabilities:
Deposits $ 47,587 $ 21,991 $ 20,017 $ 5,579
Borrowings and qualifying debt 16,748 8 927 15,813
Other liabilities 1,191 97 302 792
Total liabilities 65,526 22,096 21,246 22,184
Allocated equity: 5,521 2,545 1,613 1,363
Total liabilities and stockholders' equity $ 71,047 $ 24,641 $ 22,859 $ 23,547
Excess funds provided (used) — (7,984) (621) 8,605
No. of offices 57 47 8 2
No. of full-time equivalent employees 3,340 678 731 1,931
Income Statement:
Three Months Ended March 31, 2023: (in millions)
Net interest income $ 609.9 $ 389.4 $ 199.3 $ 21.2
Provision for (recovery of) credit losses 19.4 (2.7) 1.5 20.6
Net interest income (expense) after provision for credit losses 590.5 392.1 197.8 0.6
Non-interest income (58.0) (96.7) 51.0 (12.3)
Non-interest expense 347.9 136.0 192.0 19.9
Income (loss) before income taxes 184.6 159.4 56.8 (31.6)
Income tax expense (benefit) 42.4 38.5 12.8 (8.9)
Net income (loss) $ 142.2 $ 120.9 $ 44.0 $ (22.7)
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- ---
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated Company Commercial Consumer Related Corporate & Other
At December 31, 2022: (dollars in millions)
Assets:
Cash, cash equivalents, and investment securities $ 9,803 $ 12 $ — $ 9,791
Loans held for sale 1,184 — 1,184 —
Loans, net of deferred fees and costs 51,862 31,414 20,448 —
Less: allowance for credit losses (310) (262) (48) —
Total loans 51,552 31,152 20,400 —
Other assets acquired through foreclosure, net 11 11 — —
Goodwill and other intangible assets, net 680 293 387 —
Other assets 4,504 435 2,180 1,889
Total assets $ 67,734 $ 31,903 $ 24,151 $ 11,680
Liabilities:
Deposits $ 53,644 $ 29,494 $ 18,492 $ 5,658
Borrowings and qualifying debt 7,192 27 340 6,825
Other liabilities 1,542 83 656 803
Total liabilities 62,378 29,604 19,488 13,286
Allocated equity: 5,356 2,684 1,691 981
Total liabilities and stockholders' equity $ 67,734 $ 32,288 $ 21,179 $ 14,267
Excess funds provided (used) — 385 (2,972) 2,587
No. of offices 56 46 8 2
No. of full-time equivalent employees 3,365 671 785 1,909
Income Statement:
Three Months Ended March 31, 2022: (in millions)
Net interest income $ 449.5 $ 334.9 $ 183.2 $ (68.6)
Provision for (recovery of) credit losses 9.0 0.6 10.5 (2.1)
Net interest income (expense) after provision for credit losses 440.5 334.3 172.7 (66.5)
Non-interest income 106.3 16.9 79.2 10.2
Non-interest expense 248.6 114.4 125.0 9.2
Income (loss) before income taxes 298.2 236.8 126.9 (65.5)
Income tax expense (benefit) 58.1 56.2 30.4 (28.5)
Net income (loss) $ 240.1 $ 180.6 $ 96.5 $ (37.0)
Western Alliance Bancorporation and Subsidiaries
---
Reconciliation of Non-GAAP Financial Measures
Unaudited Pre-Provision Net Revenue by Quarter:
--- --- --- --- --- --- --- --- --- --- ---
Three Months Ended
3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
(in millions)
Net interest income $ 609.9 $ 639.7 $ 602.1 $ 525.0 $ 449.5
Total non-interest income (58.0) 61.5 61.8 95.0 106.3
Adjusted for:
Loss (gain) on sales of investment securities 12.5 (0.1) — 0.2 (6.9)
Fair value loss adjustments, net 147.8 9.2 2.8 10.0 6.6
Total non-interest income, adjusted $ 102.3 $ 70.6 $ 64.6 $ 105.2 $ 106.0
Net revenue, adjusted $ 712.2 $ 710.3 $ 666.7 $ 630.2 $ 555.5
Total non-interest expense 347.9 333.4 305.8 268.9 248.6
Adjusted for:
Gain on extinguishment of debt 12.7 — — — —
Total non-interest expense, adjusted $ 360.6 $ 333.4 $ 305.8 $ 268.9 $ 248.6
Pre-provision net revenue (1) $ 351.6 $ 376.9 $ 360.9 $ 361.3 $ 306.9
Less:
Provision for credit losses 19.4 3.1 28.5 27.5 9.0
Income tax expense 42.4 71.7 65.6 63.4 58.1
Loss (gain) on sales of investment securities 12.5 (0.1) — 0.2 (6.9)
Fair value loss adjustments, net 147.8 9.2 2.8 10.0 6.6
Plus: Gain on extinguishment of debt 12.7 — — — —
Net income $ 142.2 $ 293.0 $ 264.0 $ 260.2 $ 240.1
Efficiency Ratio by Quarter:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Total non-interest expense, adjusted $ 360.6 $ 333.4 $ 305.8 $ 268.9 $ 248.6
Less:
Deposit costs 86.9 82.2 56.2 18.1 9.3
Divided by:
Total net interest income 609.9 639.7 602.1 525.0 449.5
Plus:
Tax equivalent interest adjustment 8.8 9.0 8.5 8.2 8.0
Total non-interest income, adjusted 102.3 70.6 64.6 105.2 106.0
Less:
Deposit costs 86.9 82.2 56.2 18.1 9.3
$ 634.1 $ 637.1 $ 619.0 $ 620.3 $ 554.2
Efficiency ratio - tax equivalent basis (2) 43.2 % 39.4 % 40.3 % 40.4 % 43.2 %
Earnings per Share, Adjusted:
--- --- --- --- --- --- --- --- --- --- ---
Net income available to common stockholders $ 139.0 $ 289.8 $ 260.8 $ 257.0 $ 236.9
Adjusted for:
Loss (gain) on sales of investment securities 12.5 (0.1) — 0.2 (6.9)
Fair value loss adjustments, net 147.8 9.2 2.8 10.0 6.6
Gain on extinguishment of debt (12.7) — — — —
Tax effect of adjustments (37.9) (1.8) (0.6) (2.0) 0.1
Net income available to common stockholders, adjusted $ 248.7 $ 297.1 $ 263.0 $ 265.2 $ 236.7
Diluted shares 108.3 108.4 107.9 107.7 106.6
Diluted earnings per share, adjusted (1) $ 2.30 $ 2.74 $ 2.44 $ 2.46 $ 2.22
Western Alliance Bancorporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures
Unaudited Tangible Common Equity:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
(dollars and shares in millions)
Total stockholders' equity $ 5,521 $ 5,356 $ 5,021 $ 4,959 $ 5,012
Less:
Goodwill and intangible assets 677 680 682 695 698
Preferred stock 295 295 295 295 295
Total tangible common equity 4,549 4,381 4,044 3,969 4,019
Plus: deferred tax - attributed to intangible assets 2 2 3 2 2
Total tangible common equity, net of tax $ 4,551 $ 4,383 $ 4,047 $ 3,971 $ 4,021
Total assets $ 71,047 $ 67,734 $ 69,165 $ 66,055 $ 60,576
Less: goodwill and intangible assets, net 677 680 682 695 698
Tangible assets 70,370 67,054 68,483 65,360 59,878
Plus: deferred tax - attributed to intangible assets 2 2 3 2 2
Total tangible assets, net of tax $ 70,372 $ 67,056 $ 68,486 $ 65,362 $ 59,880
Tangible common equity ratio (3) 6.5 % 6.5 % 5.9 % 6.1 % 6.7 %
Common shares outstanding 109.5 108.9 108.9 108.3 108.3
Tangible book value per share, net of tax (3) $ 41.56 $ 40.25 $ 37.16 $ 36.67 $ 37.13
Return on Average Tangible Common Equity, Adjusted:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Three Months Ended
3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
Net income available to common shareholders $ 139.0 $ 289.8 $ 260.8 $ 257.0 $ 236.9
Adjusted for:
Loss (gain) on sales of investment securities 12.5 (0.1) — 0.2 (6.9)
Fair value loss adjustments, net 147.8 9.2 2.8 10.0 6.6
Gain on extinguishment of debt (12.7) — — — —
Tax effect of adjustments (37.9) (1.8) (0.6) (2.0) 0.1
Adjusted net income available to common shareholders $ 248.7 $ 297.1 $ 263.0 $ 265.2 $ 236.7
Divided by:
Average stockholders' equity $ 5,587.8 $ 5,232.6 $ 5,149.6 $ 5,021.4 $ 4,988.9
Less:
Average goodwill and intangible assets 678.6 681.3 694.1 697.3 679.3
Average preferred stock 294.5 294.5 294.5 294.5 294.5
Average tangible common equity $ 4,614.7 $ 4,256.8 $ 4,161.1 $ 4,029.6 $ 4,015.1
Return on average tangible common equity, adjusted (1) 21.9 % 27.7 % 25.1 % 26.4 % 23.9 %
Western Alliance Bancorporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures
Unaudited Return on Average Assets, Adjusted:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Three Months Ended
3/31/2023 12/31/2022 9/30/2022 6/30/2022 3/31/2022
(in millions)
Net income $ 142.2 $ 293.0 $ 264.0 $ 260.2 $ 240.1
Adjusted for:
Loss (gain) on sales of investment securities 12.5 (0.1) — 0.2 (6.9)
Fair value loss adjustments, net 147.8 9.2 2.8 10.0 6.6
Gain on extinguishment of debt (12.7) — — — —
Tax effect of adjustments (37.9) (1.8) (0.6) (2.0) 0.1
Net income, adjusted $ 251.9 $ 300.3 $ 266.2 $ 268.4 $ 239.9
Divided by:
Average Assets $ 71,274.0 $ 69,493.0 $ 68,376.0 $ 64,271.0 $ 59,273.5
Return on average assets, adjusted (1) 1.43 % 1.71 % 1.54 % 1.68 % 1.64 %
Non-GAAP Financial Measures Footnotes
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(1) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2) We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3) We believe this non-GAAP metric provides an important metric with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

CONTACT:

Western Alliance Bancorporation

Dale Gibbons, 602-952-5476

20

walq12023earningspresent

EARNINGS CALL 1st Quarter 2023 APRIL 19, 2023

Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the Company’s subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the recent bank failures and any related impact on depositor behavior; risks related to the sufficiency of liquidity; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the war between Russia and Ukraine; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Company’s press release as of and for the quarter ended March 31, 2023. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2

What Happened and How Our Deposit Base Fared March 9 – SIVB’s announced AFS portfolio sale and planned capital raise ignites extreme selling pressure among a group of commercial banks also providing more limited banking services to the technology / innovation sector March 10 – WAL announced robust 1Q QTD deposit growth of $7.8 billion March 10 -12 – SIVB and SBNY fail. Confusion over perceived uninsured deposit percentages and tech exposure lead to intense selling/shorting pressure on various commercial banks • WAL proactively addresses liquidity execution risk and draws $25Bn in cash from FRB to support liquidity March 13 – Unusual option activity and pre-market selling pressure following SBNY failure leads to WAL opening at ~$12 per share • Outsized stock volatility creates negative signaling effect on deposit flows March 20 – WAL deposits stabilize at ~$47 billion; net growth in balances begins with ~$900MM to quarter end 3 WAL’s diversified deposit franchise demonstrated its flexibility during this period of unusual volatility Deposit Flows (12/31/22 – 4/14/23) Dollars in billions, unless otherwise indicated 1) Non-Core Regions include large corporates, Broker-Dealers, and Title Companies Since March 20 – Since March 20, deposits have increased $2.9bn (or $2.0bn since March 31) to $49.6bn by April 14 $47.6 $0.5 $0.1

Deposit Franchise Characteristics 4 Q1 2023 Highlights Dollars in billions, unless otherwise indicated Insured Deposit Exposure Trend • WAL has successfully retained deep-rooted relationships and those for which we offer proprietary, integrated treasury management technology • Of depositors, ~85% have multiple products (deposits, TM, loans) • Enhanced focus on protecting deposits • Insured deposits are ~73% of total deposits as of 4/14 • Uninsured deposit liquidity coverage is 158% as of 4/14 1) Top 50 banks consists of major exchange traded U.S. banks, headquartered in the U.S., excluding investment banks, trust banks and specialty finance / card S&P Global Market Intelligence $24.1 $32.4 $36.2 $29.5 $15.2 $13.4 45% 68% 73% -200% -150% -100% -50% 0% 50% $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 12/31/22 3/31/23 4/14/23 Insured Uninsured % Insured $53.6 $47.6 $49.6 Uninsured Deposit Liquidity Coverage 158%138%42% 73% insured deposits: WAL is in the top 10% of insured deposits compared to 50 largest US banks1

Learnings & Near-Term Priorities 5 1. Diversification of customer types, industries, and markets proved critically important 2. Limited deployment of liquidity into longer-dated securities; managed duration conservatively and effectively 3. Capital rebuild already underway through balance sheet optimization efforts; significant progress made since 3Q22 4. Preemptive risk management planning and investments made well in advance of $100 billion asset threshold 5. Proactive, vigorous engagement with core clients and business lines 6. Acted quickly to tap variety of credit sources to ensure liquidity access and fortify balance sheet 7. Timely and ongoing client engagement through communication of salient and updated financial data 1. Drive Loan/Deposit ratio to the mid-80’s by curtailing credit-only growth and exiting non-core relationships 2. Organic balance sheet repositioning + surgical asset sales to accelerate CET1 build > 10% in Q2 2023 3. Improve and maintain higher insured deposit mix from promotion of reciprocal deposits to clients and prospects 4. Prioritizing integrated product relationships to foster increased deposit stickiness (replicate HOA) 5. Accelerating HQLA growth to further enhance liquidity strength 6. Augmenting deposit diversification from Corporate Trust and indirect consumer channel 7. High-touch customer relationship development through ongoing education on WAL expertise & strength Prudent actions undertaken before and during March 2023 enabled WAL to serve clients, operate normally as well as avoid the fates of other banks Well-Positioned at Onset Top Near-Term Priorities Safe and Sound Growth, Emphasizing Capital, Liquidity, and Holistic Customer Relationships

Balance Sheet Repositioning Actions 6 Balance sheet repositioning, which included surgical sale of assets and Loan HFS reclassifications, resulted in net non- operating charges of $110 million, but will have an immediate accretive impact to regulatory capital and allow us to prioritize core client relationships with holistic lending, deposit and treasury management needs C o m p le te d HFI Reclassification Select Asset Dispositions C o n tr a c te d , B u t N o t C lo s e d Surgically selected loan reclassifications from Held-For-Investment to Held- For-Sale portfolio 21 B A Q1-23 P&L Impact $110mm Net Non-Operating Loss Breakdown ($mm) Marks for future contracted and planned loan sales are already included in Q1 HFI reclassification fair value adjustment • Reclassified $6.0 billion of HFI loans to HFS at an average mark of ~2% ➢ One-time Loan FV Charge: $123mm (After-Tax: $92mm) ➢ CET1 Impact: -12 bps • Prioritizing core client relationships with holistic lending, deposit, and treasury management needs − Non-Core C&I − Syndicated Shared National Credits (SNCs) − Capital Call & Subscription Lines (EFR) − Select Residential RE − Early Buyout Resi. (EBOs) − Equipment Finance leases − Non-Core CRE Significant progress in executing surgical asset sales to expeditiously improve capital and liquidity, and reduce wholesale borrowings • ~$1.74 billion asset sales completed in 1Q23 1. EFR & SNC loan sales 2. Other loan sales 3. MSR sales 4. Select security sales (Primarily CLOs) ~$920mm loan sales $360mm MSR sales $460mm securities sales • Unwind of Inefficient CLNs • $3.0bn loans contracted for sale in 2Q, but not closed 1. MWL $242mm 2. EFR $25mm 1. EFR $275mm remaining +17 bps CET1 Benefit +33 bps • Unwind of Inefficient CLNs Remaining (2023) C • ~$3.0bn HFS loans remaining $92.2 $12.7 -$0.5 $5.2Other Loans Sold HFI Reclass Sec Sold & Debt Exting Note: Balance sheet information as of 3/31/23

Projected Capital Build by June 30 7 • Strong organic capital generation drove net CET1 increase in Q1 2023 and allowed us to raise liquidity through other B/S actions • HFS reclassification in Q1 2023 optimizes RWA and positions for stronger capital build going forward through asset sales (with a material amount under contract) • Executing contracted sales in Q2 2023 immediately lifts CET1 to 9.89% • HFS loan sales provide capital benefit through RWA release • Loan marks taken on reclassified HFS loans provide confidence of expected capital benefit from planned sales • 1H 2023 completed and planned actions and organic capital generation accelerate attainment of >10% capital goal by Q2 2023 Q1 2023 Highlights $5.6 $4.8 $2.2 Dollars in billions, unless otherwise indicated CET1 Ratio Q4-22 HFI Reclass. to HFS Asset Sales Q1-23Organic Capital Generation Asset Sales (Contracted) CLN (EFR) Unwind Q2-23 Target Q2-23 Target CET1 >10% CLN (WH) Unwind B/S Growth 0.51% -0.18% HFS Loan Sales (Planned) & RWA Release Organic Capital Generation + B/S Growth Net 33 bps increase Net 17 bps increase Net 2 bps increase Locked-in CET1 Build 9.71% Additional Q2-23 Capital Generation 21 BA C2 2

Significant Available Liquidity Significant Access to Liquidity & Funding Capacity 8 • Repaid all borrowings from Federal Reserve discount window by 3/31 • Higher advance rates at FRB’s discount window available, if necessary • Ample access to contingent liquidity (as of 4/14/23) • On-Balance Sheet Cash: $1.9 billion • Total Unused Borrowing Capacity: $24.7 billion • Total Unused Funding Capacity: $26.6 billion • Total Available Liquidity: $33.6 billion • Contracted to sell $3.0 billion of loans in April • Continue to evaluate additional opportunities to establish secured borrowing facilities • Proceeds from contracted and planned asset sales will be used to pay down BTFP borrowings to $0 and reduce FHLB borrowings to normalized levels of ~$5B • New deposit growth will be used to reduce wholesale funding costs and build HQLA investment balance Q1 2023 Highlights Dollars in billions, unless otherwise indicated Source 1. Cash 2. FHLB 3. Fed Discount Window 4. Fed BTFP 5. CLO Repo Facility Total $0 $9.5B $0 $1.3B $1.5B $12.3B In-Use Pro Forma Addtl. Capacity $1.9B $6.2B $16.9B $1.35B $0.2B $26.55B Total Available Liquidity $1.9B $11.7B $16.9B $1.35B $1.7B $33.55B + + + + = = = = + = + = As of 4/14/23 Pending HFS Asset Sales $0 ($4.0B) $0 ($1.3B) $0 ($5.3B) + + + + + + Pro Forma Outstanding Borrowings Cash FHLB Fed Discount Window Other Capacity Total Liquidity Available Borrowings after HFS asset sales = $7.0B 1) HFI loans transferred to HFS net of $0.1B fair value loss adjustment as of 3/31/2023, reduced by $0.6B in settled loan sales subsequent to Q1-23 1

1st Quarter 2023 | Financial Highlights Earnings & Profitability Q1-23 Q4-22 Q1-22 EPS / Adjusted1 $1.28 / $2.30 $2.67 $2.22 Net Income / Adjusted1 $142.2 / $251.9 $293.0 $240.1 Net Revenue / Adjusted1 $551.9 / $712.2 $701.2 $555.8 Pre-Provision Net Revenue1 $351.6 $367.9 $306.9 Net Interest Margin 3.79% 3.98% 3.32% Efficiency Ratio / Adjusted1 62.1% / 43.2% 46.9% 44.1% ROAA / Adjusted1 0.81% / 1.43% 1.67% 1.64% ROTCE, Adjusted1 21.9% 27.7% 23.9% Balance Sheet & Capital Total Loans $46,435 $51,862 $41,119 Total Deposits $47,587 $53,644 $52,160 CET1 Ratio 9.4% 9.3% 9.0% TCE Ratio1 6.5% 6.5% 6.7% Tangible Book Value per Share1 $41.56 $40.25 $37.13 Asset Quality Provision for Credit losses $19.4 $3.1 $9.0 Net Loan Charge-Offs $6.0 $1.8 $0.2 Net Loan Charge-Offs /Avg. Loans 0.05% 0.01% 0.00% Total Loan ACL/Funded HFI Loans3 0.75% 0.69% 0.73% NPAs2/Total Assets 0.17% 0.14% 0.17% Net Income $142.2 million $251.9, adjusted EPS $1.28 $2.30, adjusted PPNR1 Q1: $351.6 million 15% YoY ROTCE, adjusted1 21.9% Loan Growth Q1: $(5.4) billion 13% YoY Deposit Growth Q1: $(6.1) billion (9)% YoY Tangible Book Value PER SHARE1 $41.56 12% YoY NPAs2/ Total Assets 0.17% 9 Dollars in millions, except EPS 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Nonperforming assets includes nonaccrual loans and repossessed assets. 3) Ratio includes an allowance for credit losses of $20.8 million as of March 31, 2023 related to a pool of loans covered under 4 separate credit linked notes. Highlights

Quarterly Income Statement Net Interest Income decreased $29.8 million, primarily from a decrease in NIM Non-Interest Income decreased $119.5 million, driven by the following: • $148 million FV pre-tax loss, primarily on loan transfers to HFS Mortgage Banking Metrics • $8.0 billion mortgage loan production in Q1 (89% purchase / 11% refinance), down 4% compared to Q4 and 40% to Q1 2022 • $8.1 billion interest rate lock commitment volume in Q1, up 1% compared to Q4 and down 38% to Q1 2022 • Gain on Sale margin2 of 26 bps in Q1, compared to 19 bps in Q4 and 21 bps in Q1 2022 • $58.5 billion in servicing portfolio UPB Salaries and benefits increased $23.2 million, primarily related to annual merit increases, seasonal compensation costs and a reduction in capitalized salary costs Deposit costs increased $4.7 million, primarily related to higher earnings credits rates Provision for Credit Losses of $19.4 million, primarily due to charge-off of a corporate debt security of a financial institution and continued economic uncertainty, partially offset by a decrease in HFI loan balances due to balance sheet repositioning 10 1 2 4 Q1 2023 Highlights 1) Income statement line items for Q1-23 have been adjusted for the impact of fair value loss adjustments, loss on sales of investment securities and gain on extinguishment of debt. Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Gain on Sale margin represents spread as of the interest rate lock commitment date. 5 4 5 3 3 Q1-23 Q4-22 Q1-22 Interest Income $968.9) $888.3 $484.5 Interest Expense (359.0) (248.6) (35.0) Net Interest Income $609.9) $639.7) $449.5 Mortgage Banking Related Income 73.3) 46.8) $78.0 Fair Value Loss Adjustments, Net (147.8) (9.2) (6.6) (Loss) Gain on Sales of Investment Securities (12.5) 0.1) 6.9 Other 29.0) 23.8) 28.0 Non-Interest Income / Adjusted1 $(58.0) / $102.3) $61.5) $106.3 Net Revenue / Adjusted1 $551.9 / $712.2) $701.2) $555.8 Salaries and Employee Benefits (148.9) (125.7) (138.3) Deposit Costs (86.9) (82.2) (9.3) Gain on Extinguishment of Debt 12.7) ―) ―) Other (124.8) (125.5) (101.0) Non-Interest Expense / Adjusted1 $(347.9) / $(360.6) $(333.4) $(248.6) Pre-Provision Net Revenue1 $351.6) $367.8) $307.2) Provision for Credit Losses (19.4) (3.1) (9.0)) Pre-Tax Income / Adjusted1 $184.6 / $332.2) $364.7) $298.2) Income Tax / Adjusted1 (42.4) / (80.3) (71.7) (58.1) Net Income / Adjusted1 $142.2 / $251.9) $293.0) $240.1) Dividends on Preferred Stock (3.2) (3.2) (3.2) Net Income Available to Common Stockholders / Adjusted1 $139.0 / $248.7) $289.8) $236.9) Diluted Shares 108.3) 108.4) 106.6) Earnings Per Share, Adjusted1 $1.28 / $2.30) $2.67) $2.22) Dollars in millions, except EPS 2 1

HFI Loans decreased $5.4 billion, or 10.5%, and increased $5.3 billion, or 12.9%, over prior year Deposits decreased $6.1 billion, or 11.3%, and $4.6 billion, or 8.8%, over prior year • As of 4/14, total deposits are up $2.9 billion from March 20 or $2.0 billion higher from Q1-23 Borrowings increased $9.6 billion over prior quarter primarily from an increase in short term borrowings, offset by redemption of certain Credit Linked Notes • Balance should be reduced by an increase in deposits and HFS loan sales Shareholders’ Equity increased $165 million as a function of net income and a reduction in unrealized losses on AFS securities recorded in AOCI Tangible Book Value/Share1 increased $1.31, or 3.3%, over prior quarter and increased $4.43, or 11.9%, over prior year Consolidated Balance Sheet 11 1 2 3 Q1-23 Q4-22 Q1-22 Investments & Cash $13,131 $9,803 $10,879 Loans, HFS 7,022 1,184 4,762 Loans HFI, net 46,435 51,862 41,119 Allowance for Loan Losses (305) (310) (258) Mortgage Servicing Rights 910 1,148 950 Goodwill and Intangibles 677 680 698 Other Assets 3,177 3,367 2,426 Total Assets $71,047 $67,734 $60,576 Deposits $47,587 $53,644 $52,160 Borrowings 16,748 7,192 1,726 Other Liabilities 1,191 1,542 1,678 Total Liabilities $65,526 $62,378 $55,564 Accumulated Other Comprehensive Loss $(592) $(661) $(235) Total Shareholders’ Equity $5,521 $5,356 $5,012 Total Liabilities and Equity $71,047 $67,734 $60,576 Tangible Book Value Per Common Share1 $41.56 $40.25 $37.13 1 2 5 Q1 2023 Highlights 3 4 5 4 Dollars in millions, except per share data 1) Refer to slide 2 for further discussion of Non-GAAP financial measures.

Total Investments and Yield Investment Portfolio 12 • Investment yields increased 24 bps to 4.69% • Security sales totaled $460 million for the quarter • Primarily consisted of CLOs • Other Investments increased ~$900 million primarily driven by growth in HQLA Q1 2023 Highlights Total Investments and Yield1 Dollars in $ billions, LCR data in $ millions $1.8 $1.8 $0.8 $0.8 $0.6 $1.5 $2.7 $2.4 $8.2 $8.7 $8.4 $1.4 $1.4 $1.2 $1.2 2.77% 2.94% 3.66% 4.45% 4.69% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% -$1.0 $1.0 $3.0 $5.0 $7.0 $9.0 $11.0 $13.0 $15.0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Agency MBS Muni Other CLOs Private MBS Low Income Housing Yield $8.5 Q1-23 Average Yields2 $9.1 5.67% 2.90% 6.77% 4.55% 3.83% 2.83% 1) Excludes restricted stock investments in the FRB and FHLB 2) Average yields on securities have been adjusted to a tax equivalent basis. Spot Rate 4.60%

Five Quarter Loan Growth and Composition 13 $5.3 Billion Year-Over-Year Growth Quarter-over-quarter loan decline of $(5.4) billion driven by (in millions): Construction & Land $394 CRE, Non-OO 298 Offset by decrease in: C&I (5,207) Residential & Consumer (903) CRE, OO (9) Total $(5,427) $17.9 $20.8 $22.3 $20.7 $15.5 $1.8 $1.8 $1.8 $1.8 $1.8 $6.8 $7.8 $8.7 $9.4 $9.6 $3.3 $3.2 $3.6 $4.0 $4.4 $11.3 $15.0 $15.8 $16.0 $15.1 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Residential & Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial Dollars in billions, unless otherwise indicated Total Loans, HFI $41.1 $48.6 $52.2 $51.9 $46.4 Qtr. Change +$2.0 +$5.5 3 +$3.6 -$(0.3) -$(5.4) 27.5% 8.0% 16.7% 4.4% 43.4% 33.4% 3.9% 20.7% 9.5% 32.5% 30.8% 7.7% 18.1% 3.5% 39.9% 1) Average yields on loans have been adjusted to a tax equivalent basis. 2) Loan growth excludes $1.9 billion of EBO loans that were transferred from HFS to HFI during Q2-2022 Q1 2023 Highlights Q1-23 Yields Average1 Spot 3.72% 3.84% 8.93% 7.22% 5.62% 7.26% 7.85% 8.94% 5.68% 7.35% Spot Rate 6.45%

Loans HFI and HFS 14 • Reclassified $6 billion of HFI loans to HFS at an average mark of ~2% • Loans sold before quarter-end realized losses that were lower than initial marks • Marks for contracted and planned loan sales for Q2 are included in the Q1 $148 million fair value adjustment Q1 2023 Highlights Loans and HFI Yield Dollars in billions, unless otherwise indicated Q1-23 Loans HFS (ex-AMH Resi) Composition Yields Average Spot Loans HFI 6.28% 6.45% Loans HFS N/A 7.34% HFS – AMH Resi 5.90% 6.33% $41.1 $48.6 $52.2 $51.9 $46.4 $5.9 $4.8 $2.8 $2.2 $1.2 $1.1 3.98% 4.19% 4.84% 5.70% 6.28% -9.00% -7.00% -5.00% -3.00% -1.00% 1.00% 3.00% 5.00% 7.00% $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 $55.0 $60.0 $65.0 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 HFI HFS HFS - AMH Resi HFI Yield 18% 44%6% 23% 2% 8% Other C&I Equity Fund Resources Syndications Mtg. WH CRE, NOO Residential Spot Rate 6.45%

$23.5 $23.7 $24.9 $19.7 $16.5 $8.3 $8.4 $8.4 $9.5 $10.7 $18.5 $19.0 $19.2 $19.4 $13.8 $1.8 $2.6 $3.1 $5.0 $6.6 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 CDs Savings and MMDA Interest Bearing DDA Non-Interest Bearing DDA Five Quarter Deposit Growth and Composition 15 $(4.6) Billion Year-Over-Year Growth Quarter-over-quarter deposit decline of $(6.1) billion driven by (in millions): CDs $1,509 Interest Bearing DDA 1,212 Offset by decrease in: Savings and MMDA (5,552) Non-Interest Bearing DDA (3,226) Total $(6,057) Dollars in billions, unless otherwise indicated Total Deposits $52.1 $53.7 $55.6 $53.6 $47.6 Qtr. Change +$4.5 +$1.6 +$1.9 -$(1.9) -$(6.1) 3.5% 35.6% 15.8% 45.1% 34.6% 22.5% 29.1% 13.8% 9.3% 36.2% 17.7% 36.8% Q1 2023 Highlights Q1-23 Yields Average Spot 3.52% 2.59% 2.63% N/A 2.48% 2.50% 4.08% N/A Spot Rate 1.85%

Interest Bearing Deposits and Cost Deposit Composition Shift Interest Bearing Deposits 16 • Cost of interest bearing deposits increased 78 bps to 2.75% • WAL’s deposit mix shift largely occurred through interest bearing and non-ECR noninterest bearing outflows $28.6 $30.0 $30.7 $33.9 $31.1 0.21% 0.37% 1.03% 1.97% 2.75% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q1 2023 Highlights Interest Bearing Deposits Spot Rate 2.82% $7.9 $8.6 $23.3 $5.1 $2.7 Q1-23 $8.0 $11.7 $26.8 $4.8 $2.3 Q4-22 CDs Brokered Interest Bearing NIB – Non- ECR NIB – ECR $53.6 B $47.6 B Dollars in billions, unless otherwise indicated

$39.6 $45.7 $50.2 $52.2 $52.0 $6.5 $4.3 $4.0 $2.7 $2.1 $7.7 $8.7 $8.7 $8.5 $8.8 $2.0 $1.6 $1.2 $1.3 $3.3 3.58% 3.91% 4.62% 5.50% 5.99% $55.8 $60.3 $64.1 $64.7 $66.2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 $449.5 $525.0 $602.1 $639.7 $578.6 3.32% 3.54% 3.78% 3.98% 3.79% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Net Interest Income 17 • Net Interest Income decreased $29.9 million, or 4.7%, over prior quarter primarily due to balance sheet restructuring efforts • Average Earning Assets grew $1.5 billion, or 2.3%, over prior quarter • Two fewer days in 1Q23 • NIM decreased 19 bps, driven by higher interest expense from greater short-term borrowings • Short-term excess cash held on balance sheet from Fed Discount Window resulted in a NIM drag of ~11 bps • Nominally asset sensitive • In +/- 100bps shock IRR sensitivity scenarios, net interest income varies less than 1% Net Interest Income and Net Interest Margin Average Earning Assets & Average Yield NII – Ex. HFI reclass loans Net Interest Margin Q1 2023 Highlights Dollars in millions Dollars in billions Cash & Other Securities Loans Held for Sale Loans Average Yield 14% 5%2% 13% 3% 79% 13% 4% 81% 11% 71% 4% $31.3 $609.9 NII – HFS Loans ex. AMH resi.

Non-Interest Expenses and Efficiency1 18 • Efficiency ratio1 increased 1,520 bps to 62.1% compared to the prior quarter and 1,800 bps from the same period last year • Higher QoQ adjusted operating efficiency ratio1 was driven primarily by non-recurring charges and normal Q1 seasonality • Adjusted Efficiency ratio flat year- over-year • Deposit costs increased $4.7 million from the prior quarter primarily related to higher earnings credit rates • Earnings Credit-related deposit balances of $13.4 billion (~59% associated with non-interest bearing accounts) Dollars in millions Q1 2023 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. $248.6 $268.9 $305.8 $333.4 $347.9 44.1% 42.8% 45.5% 46.9% 62.1% 43.2% 40.4% 40.3% 39.4% 43.2% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Non-Interest Expenses and Efficiency Ratio Breakdown of Non-Interest Expenses Non-Interest Expenses Efficiency Ratio Other Operating Expenses Deposit Costs Salaries & Employee Benefits $101.0 $111.8 $113.1 $125.5 $112.1 $138.3 $139.0 $136.5 $125.7 $148.9 $9.3 $18.1 $56.2 $82.2 $86.9 $248.6 $268.9 $305.8 $333.4 $347.9 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Adj. Operating Efficiency Ratio

Pre-Provision Net Revenue and Return Ratios 19 • PPNR1 decreased $25.3 million from the prior quarter and increased $44.7 million, or 14.6%, from the same period last year • ROTCE, Adjusted of 21.9%, down 5.8% from the prior quarter and 2.0% from the same period last year • ROA, Adjusted of 1.43% decreased 28 bps from the prior quarter and 21 bps from the same period last year Adjusted Income1 and Return Ratios1 Dollars in millions $306.9 $361.3 $360.9 $376.9 $351.6 $239.9 $268.4 $266.2 $300.3 $251.9 23.9% 26.4% 25.1% 27.7% 21.9% 1.64% 1.68% 1.54% 1.71% 1.43% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 PPNR Net Income, Adj. ROTCE, Adj. ROA, Adj. Q1 2023 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 1 1 1

$350 $317 $312 $351 $320 0.85% 0.65% 0.60% 0.68% 0.69% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 $12 $12 $11 $11 $11 $91 $85 $90 $85 $107 $262 $249 $284 $297 $341 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Asset Quality 20 • Total Classified Assets of $459 million (65 bps to Total Assets) increased $66 million in Q1 • Non-Performing Loans + OREO of $118 million (17 bps to Total Assets) increased by $22 million in Q1 • Special Mention loans of $320 million (69 bps to Funded Loans) increased 1 bps as a percentage to Funded Loans • Over last 5+ years, less than 1% of Special Mention loans have migrated to lossSpecial Mention Loans Dollars in millions Classified Assets Special Mention Loans Asset Quality Ratios OREO Non-Performing Loans Classified Accruing Assets $365 $346 $385 $393 SM / Funded Loans 0.60% 0.52% 0.56% 0.58% 0.65% 0.17% 0.15% 0.15% 0.14% 0.17% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Classified Assets / Total Assets Non-Performing Loans + OREO / Total Assets Q1 2023 Highlights $459

$2.6 $2.4 $2.1 $2.2 $9.2 ($2.4) ($1.0) ($4.0) ($0.4) ($3.2) Credit Losses and ACL Ratios 21 • Provision expense of $19.4 million, driven by charge-off of a corporate debt security of a financial institution and continued economic uncertainty • Total Loan ACL / Funded Loans increased to 0.75% in Q1 as a result of heightened economic uncertainty • Total Loan ACL / Funded Loans less loans covered by credit linked notes is 0.95% • Net loan charge-offs of $6.0 million, 5 bps, compared to $1.8 million, 1 bp, in Q4 • 25% of loan portfolio is credit protected (24% after EFR CLN unwind completed), consisting of government guaranteed, CLN protected, and cash secured assets • 21% of portfolio covered by meaningful first loss protection from credit linked note issuances4 Dollars in millions Allowance for Credit Losses Gross Loan Charge-offs and Recoveries Loan ACL Adequacy Ratios2 Total Loan ACL / Non-Performing Loans Total Loan ACL / Funded Loans3 Loan Losses Unfunded Loan Commits.1 HTM Securities Gross Charge Offs Recoveries Q1 2023 Highlights 1) Included as a component of other liabilities on the balance sheet. 2) Total Gross Loan ACL includes allowance for unfunded commitments. 3) Ratio includes an allowance for credit losses of $20.8 million as of March 31, 2023 related to a pool of loans covered under 4 separate credit linked notes. 4) As of March 31, 2023, CLNs cover a substantial portion of Residential ($9.5 billion) loans outstanding. Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 0.73% 0.67% 0.68% 0.69% 0.75% 331% 385% 396% 420% 327% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 $258 $273 $304 $310 $305 $43 $54 $52 $47 $45 $3 $3 $4 $5 $7 $2 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 AFS Securities

Capital Accumulation 22 Regulatory Capital Levels • Continue to exceed “well-capitalized” levels • CET1 at 9.4%; contracted dispositions poised to increase to 9.7% Tangible Common Equity / Tangible Assets1 • TCE / TA remained flat from the prior quarter at 6.5% due to tempered asset growth and AOCI gain impact Capital Accretion • Improved “quality” of capital with unwinding of certain CLN transactions • CET1 has remained stable quarter-over- quarter despite impacts resulting from CLN extinguishment Robust Common Capital Levels Regulatory Capital 9.0% 9.0% 8.7% 9.3% 9.4% 6.7% 6.1% 5.9% 6.5% 6.5% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 CET1 Ratio TCE/TA1 Q1 2023 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures Total RBC RatioTier 1 RatioLeverage Ratio 8.0% 7.6% 7.5% 7.8% 7.8% 9.8% 9.7% 9.3% 10.0% 10.1% 12.0% 11.9% 11.4% 12.1% 12.1% Q1-22 Q2-22 Q3-22 Q4-22 Q1-23

427% 482% 93% 124% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MRQ 23 Tangible Book Value per Share1 • TBVPS increased $1.31 to $41.56 from prior quarter due to strong, organic capital accretion and improvement in AOCI • Increased 11.9% year-over-year • Increased 3.3% quarter-over-quarter, non-annualized • 19.7% CAGR since year end 2013 • TBVPS has increased more than 4.5x that of peers • Quarterly common stock cash dividend of $0.36 per share Long-Term Growth in TBV per Share1 1) Refer to slide 2 for further discussion of Non-GAAP financial measures 2) MRQ is Q1-23 for WAL and Q4-22 for WAL Peers Note: Peers consist of 32 major exchange traded US banks with total assets between $25B and $150B as of December 31, 2022, excluding target banks of pending acquisitions; S&P Global Market Intelligence. WAL WAL with Dividends Added Back Peer Avg Peer Avg with Dividends Added Back 2 Tangible Book Value Growth Q1 2023 Highlights

Management Outlook 24 Loans: $500mm / qtr. Deposits: $2bn / qtr. 2Q23: >10% Medium Term Target: +11% 3.65% - 3.75% Mid to High 40s Down 5 - 10% from FY22 5 bps - 15 bps 2023 Outlook1Q 2023 Results Loans: $46.4 Deposits: $47.6 9.4% 3.79% 43.2% FY22: $1.38B (+26%) 5 bps 1) Excludes $147.6 million of net pre-tax losses, primarily on loan transfers to HFS, incurred in 1Q23 Balance Sheet Growth Capital Net Interest Margin Adjusted Efficiency Operating Pre-Provision Net Revenue1 Net Charge-Offs

Questions & Answers

Appendix

ROAA vs. CET1 adj. for AOCI and HTM 27 • Q1 2023 Adjusted ROAA of 1.46% vs. 1.67% for Q4 2022 and 1.64% ROAA for Q1 2022 • CET1 adj. for AOCI and HTM increased to ~8.1% in Q1 2023 from ~7.9% in Q4 2022 Q1 2023 Highlights 8.04.5 0.5 0 5.5 0.9 1.8 1.7 5.0 1.2 0.3 -0.5 6.0 6.5 7.0 7.5 8.5 9.0 2.2 9.5 10.0 1.3 10.5 11.0 11.5 0.6 0 0.4 0.1 0.2 1.6 1.9 0.7 0.8 2.0 1.0 1.1 1.5 1.4 2.1 BAC C WFC USB TFC FRC SIVB.Q FITB MTB KEY HBAN RF SBNY GBCI FCNC.A NYCBZION CMA FHN WBS UMBF CET1 adj. for AOCI and HTM (4Q 2022) EWBC VLYPACW WTFC CADE PNC BOKF ONB SNV SSB FNBCFG PNFP ASB BPOP BKU HWC FIBK CBSH COLB UBSI TCBI OZK SFNC FULT CFR ROAA (2022 4 quarter average) JPM PB Other Banks Peers WAL WAL Q1 2023 data from earnings release; 2022 peer data from Bloomberg WAL Q1 23 (Adj.)

28 Loans HFI Portfolio Q1-23 Borrower Type Municipal & Nonprofit 3% Tech & Innovation 5% Other C&I 13% CRE, Owner Occupied 4% CRE, Non-Owner Occupied 12% Hotel Franchise Finance 8% Warehouse Lending 10% Residential 32% Equity Fund Resources 2% C&D 9% $46.4 billion

29 Specialized underwriting expertise and conservative sector allocations position portfolio to withstand economic uncertainty Conservative, Economically Resilient Portfolio Positioning Insured (25%) • Residential • Equity Fund Resources • Early Buyout (“EBO”) Resi. & Other Government-Guaranteed or Cash-Secured Assets • Warehouse Lending • Includes Core WH Lending, Note Financing, MSR financing • Residential • Low LTVs; DQs significantly below national percentages • Equity Fund Resources • Capital Call & Subscription LOCs • Underwrite LPs behind private funds • Municipal / Public Finance • CRE – Industrial & Medical • HOA • Extremely low LTVs; lien in front of homeowner’s first mortgage Resilient (33%) • Regional CRE – Investor • Regional C&I • Hotel Franchise Finance (ex-Central Business District) • Regional CRE - Owner Occupied • Corporate Finance • Lot Banking • Specialized NBLs • Gaming – Off-strip, middle market gaming companies and tribal gaming enterprises • Resort – Timeshare resort developers; hypothecation of consumer receivables • Other NBLs 21% 1% 3% 9% 10% 2% 2% • Construction (ex-Lot Banking) • Focused on note-on-note financing and Built-to-Rent developments • Tech & Innovation • Established tech firms with operating and financial flexibility, validated product, path to profitability • Hotel Franchise Finance (CBD only) • Large, sophisticated hotel sponsors who operate >25 hotels • 90% operate >10 properties with top franchisor flags • Small Business, CRA-Related, and Consumer Resistant (27%) More Sensitive (15%) 7% 5% 2% 1% 2% 1% 6% 3% 9% 5% 3% Credit protected, government guaranteed and cash-secured Historically low-to-no-loss loan categories Limited uncovered collateral risk, underwriting expertise, and strong counterparties Categories more directly correlated to economic growth 7% 1% Avg Loss Rate: 0.12% Max Loss Rate: 0.71% Avg Loss Rate: 0.04% Max Loss Rate: 0.16% Avg Loss Rate: 0.00% Max Loss Rate: 0.10% Avg Loss Rate: 0.00% Max Loss Rate: 0.00% Note: Average and maximum loss rates are quarterly annualized and from the period of Q1 2014 – Q4 2022.

Commercial Real Estate Statistics 30 ($B) 3/31/23 Special Mention % Sub-Std % Hotel $4.3 0.2% 4.9% Office $2.5 2.6% 1.5% 38% 22% 27% 13% Hotel Office Other CRE - Investor Other CRE - OO CRE ($11.4 Billion; 25% of Total Loans) Asset Quality Office ($2.5 Billion; 5% of Total Loans) • Primarily shorter-term bridge loans for repositioning or redevelopment projects • Strong sponsorship from institutional equity and large regional and national developers • All direct relationships generated by WAL • Significant up-front cash equity required from sponsors • Conservative loan-to-cost underwriting • Average LTV < 55%; Average LTC ~62% • No junior debt / mezzanine • Largely suburban exposure in “Work From Home” MSAs • <15% in San Fran. / Bay Area, Seattle, and NYC • Limited exposure to Downtown / Central Business Districts (CBDs)

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