8-K
Western Alliance Bancorporation (WAL)
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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 21, 2025
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 21, 2025, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended March 31, 2025 and posted on its website its first quarter 2025 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 5.02. DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATORY ARRANGEMENTS OF CERTAIN OFFICERS.
As previously reported on the Company’s Current Report on Form 8-K filed on December 11, 2024, effective December 16, 2024, the Company’s Board of Directors appointed Dale Gibbons, the Company’s Vice Chair and Chief Financial Officer, as the Company’s Interim Chief Executive Officer in addition to his existing duties, while Kenneth A. Vecchione, President and Chief Executive Officer of the Company took a voluntary temporary leave of absence in connection with a recent medical diagnosis. On April 15, 2025, Mr. Vecchione notified the Company’s Board of Directors of his ability to return from his temporary leave of absence and upon such notification, the Board of Directors acted to reappoint Mr. Vecchione to the offices of President and Chief Executive Officer of the Company, effective as of April 15, 2025. Mr. Gibbons will remain the Company’s Vice Chair and Chief Financial Officer.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| 99.1 | Press Release dated April 21, 2025 |
|---|---|
| 99.2 | First Quarter 2025 Earnings Conference Call dated April 22, 2025 |
| 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 | |
| Vice Chairman and | |
| Chief Financial Officer | |
| Date: | April 21, 2025 |
Document
| Western Alliance Bancorporation |
|---|
| One East Washington Street |
| Phoenix, AZ 85004 |
| www.westernalliancebancorporation.com |
PHOENIX--(BUSINESS WIRE)--April 21, 2025
FIRST QUARTER 2025 FINANCIAL RESULTS
| Quarter Highlights: | |||||
|---|---|---|---|---|---|
| Net income | Earnings per share | PPNR1 | Net interest margin | Book value per <br>common share | |
| $199.1 million | $1.79 | 277.6 million | 3.47% | $60.03 | |
| 54.101, excluding goodwill and intangibles |
All values are in US Dollars.
| CEO COMMENTARY: | |||
|---|---|---|---|
| “Western Alliance delivered solid first quarter results led by continued loan and deposit growth following the completion of our balance sheet repositioning efforts in 2024,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Our deep segment and product expertise enables our business to adapt quickly to an evolving macro environment, while our fortified capital and liquidity levels position the firm to maintain business momentum and prudent credit risk management. Quarterly loan and deposit growth of $1.1 billion and $3.0 billion, respectively, continued their upward trajectory and produced PPNR¹ of $277.6 million. Asset quality remained stable with nonperforming assets declining to 0.60% of total assets and net loan charge-offs declining to 0.20% of average loans. Overall, we achieved net income of $199.1 million and earnings per share of $1.79 for the first quarter 2025, which resulted in a return on tangible common equity1 of 13.4%. Tangible book value per share1 climbed 14.4% year-over-year to $54.10 with a CET 1 ratio of 11.1%.” | LINKED-QUARTER BASIS | YEAR-OVER-YEAR | |
| --- | --- | ||
| FINANCIAL HIGHLIGHTS: |
▪Net income of $199.1 million and earnings per share of $1.79, each down 8.2% from $216.9 million and $1.95, respectively
▪Net revenue of $778.0 million, a decrease of 7.2%, or $60.4 million, compared to a decrease in non-interest expenses of 3.6%, or $18.6 million
▪Pre-provision net revenue1 of $277.6 million, down $41.8 million from $319.4 million
▪Effective tax rate of 19.2%, compared to 16.4%
▪Net income of $199.1 million and earnings per share of $1.79, up 12.2% and 11.9%, from $177.4 million and $1.60, respectively
▪Net revenue of $778.0 million, an increase of 6.8%, or $49.2 million, compared to an increase in non-interest expenses of 3.9%, or $18.6 million
▪Pre-provision net revenue1 of $277.6 million, up $30.6 million from $247.0 million
▪Effective tax rate of 19.2%, compared to 23.5%
| FINANCIAL POSITION RESULTS: |
|---|
▪HFI loans of $54.8 billion, up $1.1 billion, or 2.0%
▪Total deposits of $69.3 billion, up $3.0 billion, or 4.5%
▪HFI loan-to-deposit ratio of 79.0%, down from 80.9%
▪Equity of $7.2 billion, up $508 million
▪Increase in HFI loans of $4.1 billion, or 8.0%
▪Increase in total deposits of $7.1 billion, or 11.4%
▪HFI loan-to-deposit ratio of 79.0%, down from 81.5%
▪Increase in equity of $1.0 billion
| LOANS AND ASSET QUALITY: |
|---|
▪Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.60%, compared to 0.65%
▪Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.25%
▪Nonperforming assets to total assets of 0.60%, compared to 0.53%
▪Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.08%
| KEY PERFORMANCE METRICS: |
|---|
▪Net interest margin of 3.47%, decreased from 3.48%
▪Return on average assets and on tangible common equity1 of 0.97% and 13.4%, compared to 1.04% and 14.6%, respectively
▪Tangible common equity ratio1 of 7.2%, flat from prior quarter
▪CET 1 ratio of 11.1%, compared to 11.3%
▪Tangible book value per share1, net of tax, of $54.10, an increase of 3.5% from $52.27
▪Adjusted efficiency ratio1 of 55.8%, compared to 51.1%
▪Net interest margin of 3.47%, decreased from 3.60%
▪Return on average assets and on tangible common equity1 of 0.97% and 13.4%, compared to 0.98% and 13.4%, respectively
▪Tangible common equity ratio1 of 7.2%, increased from 6.8%
▪CET 1 ratio of 11.1%, compared to 11.0%
▪Tangible book value per share1, net of tax, of $54.10, an increase of 14.4% from $47.30
▪Adjusted efficiency ratio1 of 55.8%, compared to 57.3%
1 See reconciliation of Non-GAAP Financial Measures starting on page 15.
Income Statement
Net interest income totaled $650.6 million in the first quarter 2025, a decrease of $15.9 million, or 2.4%, from $666.5 million in the fourth quarter 2024, and an increase of $51.7 million, or 8.6%, compared to the first quarter 2024. The decrease in net interest income from the fourth quarter 2024 is primarily due to a shorter day count in the first quarter 2025. The increase in net interest income from the first quarter 2024 was driven by an increase in average interest earning asset balances and lower rates on deposits, partially offset by decreased yields on interest earning assets.
The Company recorded a provision for credit losses of $31.2 million in the first quarter 2025, a decrease of $28.8 million from $60.0 million in the fourth quarter 2024, and an increase of $16.0 million from $15.2 million in the first quarter 2024. The provision for credit losses during the first quarter 2025 is primarily reflective of net charge-offs of $25.8 million and loan growth, as well as incremental qualitative adjustments on the CRE and construction portfolios.
The Company’s net interest margin in the first quarter 2025 was 3.47%, a decrease from 3.48% in the fourth quarter 2024, and a decrease from 3.60% in the first quarter 2024. The decrease in net interest margin from the fourth quarter 2024 was driven by lower yields on interest earning assets, partially offset by lower rates on interest-bearing liabilities due to a reduction in the federal funds target rate. The decrease in net interest margin from the first quarter 2024 was driven primarily by higher loan and securities balances, coupled with a lower rate environment that reduced yields on interest earning assets.
Non-interest income was $127.4 million for the first quarter 2025, compared to $171.9 million for the fourth quarter 2024, and $129.9 million for the first quarter 2024. The $44.5 million decrease in non-interest income from the fourth quarter 2024 was primarily due to decreases in net gain on loan origination and sale activities of $18.4 million, income from equity investments of $15.9 million, and other non-interest income of $5.6 million. The $2.5 million decrease in non-interest income from the first quarter 2024 was primarily driven by decreases in net loan servicing revenue and income from equity investments, partially offset by increases in service charges and loan fees and income from bank owned life insurance.
Net revenue totaled $778.0 million for the first quarter 2025, a decrease of $60.4 million or 7.2%, compared to $838.4 million for the fourth quarter 2024, and an increase of $49.2 million or 6.8%, compared to $728.8 million for the first quarter 2024.
Non-interest expense was $500.4 million for the first quarter 2025, compared to $519.0 million for the fourth quarter 2024, and $481.8 million for the first quarter 2024. The $18.6 million decrease in non-interest expense from the fourth quarter 2024 is due primarily to a decrease of $37.7 million in deposit costs driven by lower ECR rates, partially offset by an increase in salaries and employee benefits of $17.0 million. The $18.6 million increase in non-interest expense from the first quarter 2024 is primarily attributable to increased salaries and employee benefits of $27.5 million and data processing costs of $9.2 million. These increases were partially offset by decreased insurance costs of $21.0 million largely related to the FDIC special assessment charge of $17.6 million recognized in the first quarter 2024. The Company’s efficiency ratio, adjusted for deposit costs1, was 55.8% for the first quarter 2025, compared to 51.1% in the fourth quarter 2024, and 57.3% for the first quarter 2024.
Income tax expense was $47.3 million for the first quarter 2025, compared to $42.5 million for the fourth quarter 2024, and $54.4 million for the first quarter 2024. The increase in income tax expense from the fourth quarter 2024 is primarily related to decreased investment tax credit benefits and tax-exempt income. The decrease in income tax expense from the first quarter 2024 is primarily related to decreased nondeductible insurance premiums and increased investment tax credit benefits.
Net income was $199.1 million for the first quarter 2025, a decrease of $17.8 million from $216.9 million for the fourth quarter 2024, and an increase of $21.7 million from $177.4 million for the first quarter 2024. Earnings per share totaled $1.79 for the first quarter 2025, compared to $1.95 for the fourth quarter 2024, and $1.60 for the first quarter 2024.
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 revenue less non-interest expense. For the first quarter 2025, the Company’s PPNR1 was $277.6 million, down $41.8 million from $319.4 million in the fourth quarter 2024, and up $30.6 million from $247.0 million in the first quarter 2024.
The Company had 3,562 full-time equivalent employees and 56 offices at March 31, 2025, compared to 3,524 full-time equivalent employees and 56 offices at December 31, 2024, and 3,312 full-time equivalent employees and 56 offices at March 31, 2024.
1 See reconciliation of Non-GAAP Financial Measures starting on page 15.
Balance Sheet
HFI loans, net of deferred fees, totaled $54.8 billion at March 31, 2025, compared to $53.7 billion at December 31, 2024, and $50.7 billion at March 31, 2024. The increase in HFI loans of $1.1 billion from the prior quarter was primarily driven by increases of $989 million and $172 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively. The increase in HFI loans of $4.1 billion from March 31, 2024 was primarily driven by increases of $4.4 billion and $403 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively, partially offset by decreases of $349 million and $277 million in residential real estate and construction and land development loans, respectively. HFS loans totaled $3.2 billion at March 31, 2025, compared to $2.3 billion at December 31, 2024, and $1.8 billion at March 31, 2024.
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. The allowance for loan losses to funded HFI loans ratio was 0.71%, 0.70%, and 0.67% at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.77% at March 31, 2025 and December 31, 2024, and 0.74% at March 31, 2024. 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. The Company is protected from first credit losses on reference pools of loans totaling $8.5 billion, $8.6 billion, and $9.0 billion as of March 31, 2025, December 31, 2024, and March 31, 2024, 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 related to these pools of loans of $11.9 million as of March 31, 2025, $11.4 million as of December 31, 2024, and $14.2 million as of March 31, 2024. 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 0.92% at March 31, 2025 and December 31, 2024, and 0.90% at March 31, 2024.
Deposits totaled $69.3 billion at March 31, 2025, an increase of $3.0 billion from $66.3 billion at December 31, 2024, and an increase of $7.1 billion from $62.2 billion at March 31, 2024. By deposit type, the increase from the prior quarter is attributable to increases of $3.2 billion and $520 million from non-interest bearing and savings and money market deposits, respectively, partially offset by decreases of $371 million from interest-bearing demand deposits and $331 million from certificates of deposits. From March 31, 2024, savings and money market deposits increased $5.5 billion and non-interest bearing deposits increased $3.6 billion, while interest-bearing demand deposits decreased $1.5 billion and certificates of deposit decreased $592 million. Non-interest bearing deposits were $22.0 billion at March 31, 2025, compared to $18.8 billion at December 31, 2024, and $18.4 billion at March 31, 2024.
The table below shows the Company's deposit types as a percentage of total deposits:
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | ||||
|---|---|---|---|---|---|---|
| Non-interest bearing | 31.8 | % | 28.4 | % | 29.6 | % |
| Interest-bearing demand | 22.4 | 23.9 | 27.3 | |||
| Savings and money market | 31.3 | 32.0 | 26.0 | |||
| Certificates of deposit | 14.5 | 15.7 | 17.1 |
The Company’s ratio of HFI loans to deposits was 79.0% at March 31, 2025, compared to 80.9% at December 31, 2024, and 81.5% at March 31, 2024.
Borrowings totaled $4.2 billion at March 31, 2025, $5.6 billion at December 31, 2024, and $6.2 billion at March 31, 2024. Borrowings decreased $1.4 billion from December 31, 2024 primarily due to decreases of $807 million in long-term and $615 million in short-term borrowings. The decrease in borrowings from March 31, 2024 is primarily due to a decrease in short-term borrowings of $3.2 billion, partially offset by an increase in long term borrowings of $1.2 billion.
Total equity was $7.2 billion at March 31, 2025, compared to $6.7 billion at December 31, 2024 and $6.2 billion at March 31, 2024. The increase in total equity from the prior quarter was due primarily to issuance of preferred stock from the Company's REIT subsidiary and net income of $199.1 million. Proceeds from the REIT preferred stock issuance totaled $293 million, net of issuance costs, and was recognized as a noncontrolling interest in subsidiary. These increases were offset in part by dividends to shareholders as cash dividends of $41.8 million ($0.38 per common share) and $3.2 million ($0.27 per depository share) were paid to stockholders during the first quarter 2025. The increase in equity from March 31, 2024 was primarily driven by the issuance of preferred stock from the Company's REIT subsidiary, net income, and net unrealized fair value gains on available-for-sale securities recorded in other comprehensive loss, net of tax, partially offset by dividends to stockholders.
The Company's common equity tier 1 capital ratio was 11.1% at March 31, 2025, compared to 11.3%, and 11.0% at December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, tangible common equity, net of tax1, was 7.2% of tangible assets1 and total capital was 14.5% of risk-weighted assets. The Company’s tangible book value per share1 was $54.10 at March 31, 2025, an increase of 3.5% from $52.27 at December 31, 2024, and an increase of 14.4% from $47.30 at March 31, 2024. The increase in tangible book value per share from December 31, 2024 and March 31, 2024 is primarily attributable to net income.
Total assets increased $2.1 billion, or 2.6%, to $83.0 billion at March 31, 2025 from $80.9 billion at December 31, 2024, and increased 7.9% from $77.0 billion at March 31, 2024. The increase in total assets from December 31, 2024 was primarily driven by increases in HFI and HFS loans coupled with investment securities, partially offset by a decrease in cash and due from banks. The increase in total assets from March 31, 2024 was primarily driven by increases in HFI and HFS loans and bank owned life insurance.
1 See reconciliation of Non-GAAP Financial Measures starting on page 15.
Asset Quality
Provision for credit losses totaled $31.2 million for the first quarter 2025, compared to $60.0 million for the fourth quarter 2024, and $15.2 million for the first quarter 2024. Net loan charge-offs in the first quarter 2025 totaled $25.8 million, or 0.20% of average loans (annualized), compared to $34.1 million, or 0.25%, in the fourth quarter 2024, and $9.8 million, or 0.08%, in the first quarter 2024.
Nonaccrual loans decreased $25 million to $451 million during the quarter and increased $52 million from March 31, 2024. Loans past due 90 days and still accruing interest totaled $44 million at March 31, 2025, zero at December 31, 2024, and $6 million at March 31, 2024 (excluding government guaranteed loans of $275 million, $326 million, and $349 million, respectively). Loans past due 30-89 days and still accruing interest totaled $182 million at March 31, 2025, an increase from $92 million at December 31, 2024, and from $117 million at March 31, 2024 (excluding government guaranteed loans of $161 million, $183 million, and $224 million, respectively).
Repossessed assets totaled $51 million at March 31, 2025, compared to $52 million at December 31, 2024, and $8 million at March 31, 2024. Classified assets totaled $1.2 billion at March 31, 2025, an increase of $186 million from $1.0 billion at December 31, 2024, and an increase of $414 million from $781 million at March 31, 2024.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 15.9% at March 31, 2025, compared to 14.2% at December 31, 2024, and 12.0% at March 31, 2024.
2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2025 financial results at 12:00 p.m. ET on Tuesday, April 22, 2025. Participants may access the call by dialing 1-833-470-1428 and using access code 146564 or via live audio webcast using the website link https://events.q4inc.com/attendee/859895963. 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 22nd through 11:59 p.m. ET April 29th by dialing 1-855-762-8306, using access code 474821.
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, 2024, as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events 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 wars in Ukraine and the Middle East; 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; increased foreclosures and ownership of real property; 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, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements.
About Western Alliance Bancorporation
With more than $80 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, clients benefit from a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2024 by American Banker and Bank Director and receiving #1 rankings on Extel’s (previously Institutional Investor’s) All-America Executive Team Midcap 2024 for Best CEO, Best CFO and Best Company Board of Directors. 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.
Contacts
Investors: Miles Pondelik, 602-346-7462
Email: MPondelik@westernalliancebank.com
Media: Stephanie Whitlow, 480-998-6547
Email: SWhitlow@westernalliancebank.com
| Western Alliance Bancorporation and Subsidiaries | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Summary Consolidated Financial Data | |||||||||
| Unaudited | |||||||||
| Selected Balance Sheet Data: | |||||||||
| As of March 31, | |||||||||
| 2025 | 2024 | Change % | |||||||
| (in millions) | |||||||||
| Total assets | $ | 83,043 | $ | 76,989 | 7.9 | % | |||
| Loans held for sale | 3,238 | 1,841 | 75.9 | ||||||
| HFI loans, net of deferred fees | 54,761 | 50,700 | 8.0 | ||||||
| Investment securities | 15,868 | 16,092 | (1.4) | ||||||
| Total deposits | 69,322 | 62,228 | 11.4 | ||||||
| Borrowings | 4,151 | 6,221 | (33.3) | ||||||
| Qualifying debt | 898 | 896 | 0.2 | ||||||
| Equity | 7,215 | 6,172 | 16.9 | ||||||
| Tangible common equity, net of tax (1) | 5,973 | 5,213 | 14.6 | ||||||
| Common equity Tier 1 capital | 6,425 | 5,787 | 11.0 | ||||||
| Selected Income Statement Data: | |||||||||
| For the Three Months Ended March 31, | |||||||||
| 2025 | 2024 | Change % | |||||||
| (in millions, except per share data) | |||||||||
| Interest income | $ | 1,095.6 | $ | 1,055.0 | 3.8 | % | |||
| Interest expense | 445.0 | 456.1 | (2.4) | ||||||
| Net interest income | 650.6 | 598.9 | 8.6 | ||||||
| Provision for credit losses | 31.2 | 15.2 | NM | ||||||
| Net interest income after provision for credit losses | 619.4 | 583.7 | 6.1 | ||||||
| Non-interest income | 127.4 | 129.9 | (1.9) | ||||||
| Non-interest expense | 500.4 | 481.8 | 3.9 | ||||||
| Income before income taxes | 246.4 | 231.8 | 6.3 | ||||||
| Income tax expense | 47.3 | 54.4 | (13.1) | ||||||
| Net income | 199.1 | 177.4 | 12.2 | ||||||
| Dividends on preferred stock | 3.2 | 3.2 | — | ||||||
| Net income available to common stockholders | $ | 195.9 | $ | 174.2 | 12.5 | ||||
| Diluted earnings per common share | $ | 1.79 | $ | 1.60 | 11.9 |
(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, | ||||||
| 2025 | 2024 | Change % | ||||
| Diluted earnings per common share | $ | 1.79 | $ | 1.60 | 11.9 | % |
| Book value per common share | 60.03 | 53.33 | 12.6 | |||
| Tangible book value per common share, net of tax (1) | 54.10 | 47.30 | 14.4 | |||
| Average common shares outstanding <br>(in millions): | ||||||
| Basic | 108.8 | 108.5 | 0.3 | |||
| Diluted | 109.6 | 109.0 | 0.6 | |||
| Common shares outstanding | 110.4 | 110.2 | 0.2 | |||
| Selected Performance Ratios: | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Return on average assets (2) | 0.97 | % | 0.98 | % | (1.0) | % |
| Return on average tangible common equity (1, 2) | 13.4 | 13.4 | — | |||
| Net interest margin (2) | 3.47 | 3.60 | (3.6) | |||
| Efficiency ratio, adjusted for deposit costs (1) | 55.8 | 57.3 | (2.6) | |||
| HFI loan to deposit ratio | 79.0 | 81.5 | (3.1) | |||
| Asset Quality Ratios: | ||||||
| Net charge-offs to average loans outstanding (2) | 0.20 | % | 0.08 | % | NM | |
| Nonaccrual loans to funded HFI loans | 0.82 | 0.79 | 3.8 | |||
| Nonaccrual loans and repossessed assets to total assets | 0.60 | 0.53 | 13.2 | |||
| Allowance for loan losses to funded HFI loans | 0.71 | 0.67 | 6.0 | |||
| Allowance for loan losses to nonaccrual HFI loans | 86 | 85 | 1.2 | |||
| Capital Ratios: | ||||||
| --- | --- | --- | --- | --- | --- | --- |
| Mar 31, 2025 | Dec 31, 2024 | Mar 31, 2024 | ||||
| Tangible common equity (1) | 7.2 | % | 7.2 | % | 6.8 | % |
| Common Equity Tier 1 (3) | 11.1 | 11.3 | 11.0 | |||
| Tier 1 Leverage ratio (3) | 8.6 | 8.1 | 8.5 | |||
| Tier 1 Capital (3) | 12.3 | 11.9 | 11.7 | |||
| Total Capital (3) | 14.5 | 14.1 | 14.0 |
(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, 2025 are preliminary.
NM Changes +/- 100% are not meaningful.
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Income Statements | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | ||||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans | $ | 881.0 | $ | 871.9 | |||||||||||
| Investment securities | 168.0 | 144.0 | |||||||||||||
| Other | 46.6 | 39.1 | |||||||||||||
| Total interest income | 1,095.6 | 1,055.0 | |||||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 378.3 | 380.6 | |||||||||||||
| Qualifying debt | 9.3 | 9.5 | |||||||||||||
| Borrowings | 57.4 | 66.0 | |||||||||||||
| Total interest expense | 445.0 | 456.1 | |||||||||||||
| Net interest income | 650.6 | 598.9 | |||||||||||||
| Provision for credit losses | 31.2 | 15.2 | |||||||||||||
| Net interest income after provision for credit losses | 619.4 | 583.7 | |||||||||||||
| Non-interest income: | |||||||||||||||
| Service charges and loan fees | 37.2 | 16.4 | |||||||||||||
| Net gain on loan origination and sale activities | 49.5 | 45.3 | |||||||||||||
| Net loan servicing revenue | 21.8 | 46.4 | |||||||||||||
| Income from bank owned life insurance | 11.4 | 1.0 | |||||||||||||
| Gain (loss) on sales of investment securities | 2.1 | (0.9) | |||||||||||||
| Fair value gain adjustments, net | 1.0 | 0.3 | |||||||||||||
| (Loss) income from equity investments | (4.8) | 17.1 | |||||||||||||
| Other | 9.2 | 4.3 | |||||||||||||
| Total non-interest income | 127.4 | 129.9 | |||||||||||||
| Non-interest expenses: | |||||||||||||||
| Salaries and employee benefits | 182.4 | 154.9 | |||||||||||||
| Deposit costs | 136.8 | 137.0 | |||||||||||||
| Data processing | 45.2 | 36.0 | |||||||||||||
| Insurance | 37.9 | 58.9 | |||||||||||||
| Legal, professional, and directors' fees | 28.9 | 30.1 | |||||||||||||
| Occupancy | 17.2 | 17.5 | |||||||||||||
| Loan servicing expenses | 16.4 | 15.0 | |||||||||||||
| Business development and marketing | 5.9 | 5.5 | |||||||||||||
| Loan acquisition and origination expenses | 5.2 | 4.8 | |||||||||||||
| Other | 24.5 | 22.1 | |||||||||||||
| Total non-interest expense | 500.4 | 481.8 | |||||||||||||
| Income before income taxes | 246.4 | 231.8 | |||||||||||||
| Income tax expense | 47.3 | 54.4 | |||||||||||||
| Net income | 199.1 | 177.4 | |||||||||||||
| Dividends on preferred stock | 3.2 | 3.2 | |||||||||||||
| Net income available to common stockholders | $ | 195.9 | $ | 174.2 | |||||||||||
| Earnings per common share: | |||||||||||||||
| Diluted shares | 109.6 | 109.0 | |||||||||||||
| Diluted earnings per share | $ | 1.79 | $ | 1.60 | |||||||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Five Quarter Condensed Consolidated Income Statements | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||
| (in millions, except per share data) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans | $ | 881.0 | $ | 915.2 | $ | 945.3 | $ | 896.7 | $ | 871.9 | |||||
| Investment securities | 168.0 | 179.4 | 197.1 | 190.5 | 144.0 | ||||||||||
| Other | 46.6 | 44.0 | 57.6 | 60.3 | 39.1 | ||||||||||
| Total interest income | 1,095.6 | 1,138.6 | 1,200.0 | 1,147.5 | 1,055.0 | ||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 378.3 | 387.2 | 422.1 | 410.3 | 380.6 | ||||||||||
| Qualifying debt | 9.3 | 9.4 | 9.5 | 9.6 | 9.5 | ||||||||||
| Borrowings | 57.4 | 75.5 | 71.5 | 71.0 | 66.0 | ||||||||||
| Total interest expense | 445.0 | 472.1 | 503.1 | 490.9 | 456.1 | ||||||||||
| Net interest income | 650.6 | 666.5 | 696.9 | 656.6 | 598.9 | ||||||||||
| Provision for credit losses | 31.2 | 60.0 | 33.6 | 37.1 | 15.2 | ||||||||||
| Net interest income after provision for credit losses | 619.4 | 606.5 | 663.3 | 619.5 | 583.7 | ||||||||||
| Non-interest income: | |||||||||||||||
| Service charges and loan fees | 37.2 | 31.7 | 30.1 | 17.8 | 16.4 | ||||||||||
| Net gain on loan origination and sale activities | 49.5 | 67.9 | 46.3 | 46.8 | 45.3 | ||||||||||
| Net loan servicing revenue | 21.8 | 24.7 | 12.3 | 38.1 | 46.4 | ||||||||||
| Income from bank owned life insurance | 11.4 | 12.1 | 13.0 | 1.7 | 1.0 | ||||||||||
| Gain (loss) on sales of investment securities | 2.1 | 7.2 | 8.8 | 2.3 | (0.9) | ||||||||||
| Fair value gain adjustments, net | 1.0 | 2.4 | 4.1 | 0.7 | 0.3 | ||||||||||
| (Loss) income from equity investments | (4.8) | 11.1 | 5.8 | 4.2 | 17.1 | ||||||||||
| Other | 9.2 | 14.8 | 5.8 | 3.6 | 4.3 | ||||||||||
| Total non-interest income | 127.4 | 171.9 | 126.2 | 115.2 | 129.9 | ||||||||||
| Non-interest expenses: | |||||||||||||||
| Salaries and employee benefits | 182.4 | 165.4 | 157.8 | 153.0 | 154.9 | ||||||||||
| Deposit costs | 136.8 | 174.5 | 208.0 | 173.7 | 137.0 | ||||||||||
| Data processing | 45.2 | 39.3 | 38.7 | 35.7 | 36.0 | ||||||||||
| Insurance | 37.9 | 36.7 | 35.4 | 33.8 | 58.9 | ||||||||||
| Legal, professional, and directors' fees | 28.9 | 28.7 | 24.8 | 25.8 | 30.1 | ||||||||||
| Occupancy | 17.2 | 19.6 | 17.6 | 18.4 | 17.5 | ||||||||||
| Loan servicing expenses | 16.4 | 17.8 | 18.7 | 16.6 | 15.0 | ||||||||||
| Business development and marketing | 5.9 | 11.1 | 9.7 | 6.4 | 5.5 | ||||||||||
| Loan acquisition and origination expenses | 5.2 | 5.7 | 5.9 | 5.1 | 4.8 | ||||||||||
| Other | 24.5 | 20.2 | 20.8 | 18.3 | 22.1 | ||||||||||
| Total non-interest expense | 500.4 | 519.0 | 537.4 | 486.8 | 481.8 | ||||||||||
| Income before income taxes | 246.4 | 259.4 | 252.1 | 247.9 | 231.8 | ||||||||||
| Income tax expense | 47.3 | 42.5 | 52.3 | 54.3 | 54.4 | ||||||||||
| Net income | 199.1 | 216.9 | 199.8 | 193.6 | 177.4 | ||||||||||
| Dividends on preferred stock | 3.2 | 3.2 | 3.2 | 3.2 | 3.2 | ||||||||||
| Net income available to common stockholders | $ | 195.9 | $ | 213.7 | $ | 196.6 | $ | 190.4 | $ | 174.2 | |||||
| Earnings per common share: | |||||||||||||||
| Diluted shares | 109.6 | 109.6 | 109.5 | 109.1 | 109.0 | ||||||||||
| Diluted earnings per share | $ | 1.79 | $ | 1.95 | $ | 1.80 | $ | 1.75 | $ | 1.60 | |||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Five Quarter Condensed Consolidated Balance Sheets | |||||||||||||||
| Unaudited | |||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||
| (in millions) | |||||||||||||||
| Assets: | |||||||||||||||
| Cash and due from banks | $ | 3,279 | $ | 4,096 | $ | 2,592 | $ | 4,077 | $ | 3,550 | |||||
| Investment securities | 15,868 | 15,095 | 16,382 | 17,268 | 16,092 | ||||||||||
| Loans held for sale | 3,238 | 2,286 | 2,327 | 2,007 | 1,841 | ||||||||||
| Loans held for investment: | |||||||||||||||
| Commercial and industrial | 24,117 | 23,128 | 22,551 | 21,690 | 19,749 | ||||||||||
| Commercial real estate - non-owner occupied | 10,040 | 9,868 | 9,801 | 9,647 | 9,637 | ||||||||||
| Commercial real estate - owner occupied | 1,787 | 1,825 | 1,817 | 1,886 | 1,859 | ||||||||||
| Construction and land development | 4,504 | 4,479 | 4,727 | 4,712 | 4,781 | ||||||||||
| Residential real estate | 14,275 | 14,326 | 14,395 | 14,445 | 14,624 | ||||||||||
| Consumer | 38 | 50 | 55 | 50 | 50 | ||||||||||
| Loans HFI, net of deferred fees | 54,761 | 53,676 | 53,346 | 52,430 | 50,700 | ||||||||||
| Allowance for loan losses | (389) | (374) | (357) | (352) | (340) | ||||||||||
| Loans HFI, net of deferred fees and allowance | 54,372 | 53,302 | 52,989 | 52,078 | 50,360 | ||||||||||
| Mortgage servicing rights | 1,241 | 1,127 | 1,011 | 1,145 | 1,178 | ||||||||||
| Premises and equipment, net | 361 | 361 | 354 | 351 | 344 | ||||||||||
| Operating lease right-of-use asset | 125 | 128 | 127 | 133 | 139 | ||||||||||
| Other assets acquired through foreclosure, net | 51 | 52 | 8 | 8 | 8 | ||||||||||
| Bank owned life insurance | 1,022 | 1,011 | 1,000 | 187 | 187 | ||||||||||
| Goodwill and other intangibles, net | 656 | 659 | 661 | 664 | 666 | ||||||||||
| Other assets | 2,830 | 2,817 | 2,629 | 2,663 | 2,624 | ||||||||||
| Total assets | $ | 83,043 | $ | 80,934 | $ | 80,080 | $ | 80,581 | $ | 76,989 | |||||
| Liabilities and stockholders' equity: | |||||||||||||||
| Liabilities: | |||||||||||||||
| Deposits | |||||||||||||||
| Non-interest bearing deposits | $ | 22,009 | $ | 18,846 | $ | 24,965 | $ | 21,522 | $ | 18,399 | |||||
| Interest bearing: | |||||||||||||||
| Demand | 15,507 | 15,878 | 13,846 | 17,267 | 16,965 | ||||||||||
| Savings and money market | 21,728 | 21,208 | 19,575 | 17,087 | 16,194 | ||||||||||
| Certificates of deposit | 10,078 | 10,409 | 9,654 | 10,368 | 10,670 | ||||||||||
| Total deposits | 69,322 | 66,341 | 68,040 | 66,244 | 62,228 | ||||||||||
| Borrowings | 4,151 | 5,573 | 2,995 | 5,587 | 6,221 | ||||||||||
| Qualifying debt | 898 | 899 | 898 | 897 | 896 | ||||||||||
| Operating lease liability | 154 | 159 | 159 | 165 | 172 | ||||||||||
| Accrued interest payable and other liabilities | 1,303 | 1,255 | 1,311 | 1,354 | 1,300 | ||||||||||
| Total liabilities | 75,828 | 74,227 | 73,403 | 74,247 | 70,817 | ||||||||||
| Equity: | |||||||||||||||
| Preferred stock | 295 | 295 | 295 | 295 | 295 | ||||||||||
| Common stock and additional paid-in capital | 2,125 | 2,120 | 2,110 | 2,099 | 2,087 | ||||||||||
| Retained earnings | 4,980 | 4,826 | 4,654 | 4,498 | 4,348 | ||||||||||
| Accumulated other comprehensive loss | (478) | (534) | (382) | (558) | (558) | ||||||||||
| Total stockholders' equity | 6,922 | 6,707 | 6,677 | 6,334 | 6,172 | ||||||||||
| Noncontrolling interest in subsidiary | 293 | — | — | — | — | ||||||||||
| Total equity | 7,215 | 6,707 | 6,677 | 6,334 | 6,172 | ||||||||||
| Total liabilities and equity | $ | 83,043 | $ | 80,934 | $ | 80,080 | $ | 80,581 | $ | 76,989 | |||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Changes in the Allowance For Credit Losses on Loans | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||
| (dollars in millions) | |||||||||||||||
| Allowance for loan losses | |||||||||||||||
| Balance, beginning of period | $ | 373.8 | $ | 356.6 | $ | 351.8 | $ | 340.3 | $ | 336.7 | |||||
| Provision for credit losses (1) | 40.6 | 51.3 | 31.4 | 34.3 | 13.4 | ||||||||||
| Recoveries of loans previously charged-off: | |||||||||||||||
| Commercial and industrial | 1.0 | 0.1 | 0.5 | 0.1 | 0.4 | ||||||||||
| Commercial real estate - non-owner occupied | 0.6 | — | 0.7 | — | — | ||||||||||
| Commercial real estate - owner occupied | 0.1 | 0.2 | — | — | — | ||||||||||
| Construction and land development | — | — | — | — | — | ||||||||||
| Residential real estate | — | — | — | — | — | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total recoveries | 1.7 | 0.3 | 1.2 | 0.1 | 0.4 | ||||||||||
| Loans charged-off: | |||||||||||||||
| Commercial and industrial | 13.0 | 24.8 | 4.3 | 5.3 | 2.3 | ||||||||||
| Commercial real estate - non-owner occupied | 14.5 | 9.6 | 21.7 | 17.6 | 7.9 | ||||||||||
| Commercial real estate - owner occupied | — | — | 0.3 | — | — | ||||||||||
| Construction and land development | — | — | 1.5 | — | — | ||||||||||
| Residential real estate | — | — | — | — | — | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total loans charged-off | 27.5 | 34.4 | 27.8 | 22.9 | 10.2 | ||||||||||
| Net loan charge-offs | 25.8 | 34.1 | 26.6 | 22.8 | 9.8 | ||||||||||
| Balance, end of period | $ | 388.6 | $ | 373.8 | $ | 356.6 | $ | 351.8 | $ | 340.3 | |||||
| Allowance for unfunded loan commitments | |||||||||||||||
| Balance, beginning of period | $ | 39.5 | $ | 37.6 | $ | 35.9 | $ | 33.1 | $ | 31.6 | |||||
| (Recovery of) provision for credit losses (1) | (4.4) | 1.9 | 1.7 | 2.8 | 1.5 | ||||||||||
| Balance, end of period (2) | $ | 35.1 | $ | 39.5 | $ | 37.6 | $ | 35.9 | $ | 33.1 | |||||
| Components of the allowance for credit losses on loans | |||||||||||||||
| Allowance for loan losses | $ | 388.6 | $ | 373.8 | $ | 356.6 | $ | 351.8 | $ | 340.3 | |||||
| Allowance for unfunded loan commitments | 35.1 | 39.5 | 37.6 | 35.9 | 33.1 | ||||||||||
| Total allowance for credit losses on loans | $ | 423.7 | $ | 413.3 | $ | 394.2 | $ | 387.7 | $ | 373.4 | |||||
| Net charge-offs to average loans - annualized | 0.20 | % | 0.25 | % | 0.20 | % | 0.18 | % | 0.08 | % | |||||
| Allowance ratios | |||||||||||||||
| Allowance for loan losses to funded HFI loans (3) | 0.71 | % | 0.70 | % | 0.67 | % | 0.67 | % | 0.67 | % | |||||
| Allowance for credit losses to funded HFI loans (3) | 0.77 | 0.77 | 0.74 | 0.74 | 0.74 | ||||||||||
| Allowance for loan losses to nonaccrual HFI loans | 86 | 79 | 102 | 88 | 85 | ||||||||||
| Allowance for credit losses to nonaccrual HFI loans | 94 | 87 | 113 | 97 | 94 |
(1) The above tables reflect the provision for credit losses on funded and unfunded loans. There was a provision release of $0.2 million on AFS investment securities and $4.8 million on HTM investment securities for the three months ended March 31, 2025. The allowance for credit losses on AFS and HTM investment securities totaled $0.2 million and $11.6 million, respectively, as of March 31, 2025.
(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 $11.9 million as of March 31, 2025 related to a pool of loans covered under three separate credit linked note transactions.
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Quality Metrics | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | |||||||||||
| (dollars in millions) | |||||||||||||||
| Nonaccrual loans and repossessed assets | |||||||||||||||
| Nonaccrual loans | $ | 451 | $ | 476 | $ | 349 | $ | 401 | $ | 399 | |||||
| Nonaccrual loans to funded HFI loans | 0.82 | % | 0.89 | % | 0.65 | % | 0.76 | % | 0.79 | % | |||||
| Repossessed assets | $ | 51 | $ | 52 | $ | 8 | $ | 8 | $ | 8 | |||||
| Nonaccrual loans and repossessed assets to total assets | 0.60 | % | 0.65 | % | 0.45 | % | 0.51 | % | 0.53 | % | |||||
| Loans Past Due | |||||||||||||||
| Loans past due 90 days, still accruing (1) | $ | 44 | $ | — | $ | 4 | $ | — | $ | 6 | |||||
| Loans past due 90 days, still accruing to funded HFI loans | 0.08 | % | — | % | 0.01 | % | — | % | 0.01 | % | |||||
| Loans past due 30 to 89 days, still accruing (2) | $ | 182 | $ | 92 | $ | 110 | $ | 83 | $ | 117 | |||||
| Loans past due 30 to 89 days, still accruing to funded HFI loans | 0.33 | % | 0.17 | % | 0.21 | % | 0.16 | % | 0.23 | % | |||||
| Other credit quality metrics | |||||||||||||||
| Special mention loans | $ | 460 | $ | 392 | $ | 502 | $ | 532 | $ | 394 | |||||
| Special mention loans to funded HFI loans | 0.84 | % | 0.73 | % | 0.94 | % | 1.01 | % | 0.78 | % | |||||
| Classified loans on accrual | $ | 693 | $ | 480 | $ | 479 | $ | 328 | $ | 361 | |||||
| Classified loans on accrual to funded HFI loans | 1.27 | % | 0.89 | % | 0.90 | % | 0.63 | % | 0.71 | % | |||||
| Classified assets | $ | 1,195 | $ | 1,009 | $ | 838 | $ | 748 | $ | 781 | |||||
| Classified assets to total assets | 1.44 | % | 1.25 | % | 1.05 | % | 0.93 | % | 1.01 | % |
(1) Excludes government guaranteed residential mortgage loans of $275 million, $326 million, $313 million, $330 million, and $349 million as of each respective date in the table above.
(2) Excludes government guaranteed residential mortgage loans of $161 million, $183 million, $203 million, $221 million, and $224 million as of each respective date in the table above.
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Analysis of Average Balances, Yields and Rates | ||||||||||||
| Unaudited | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, 2025 | December 31, 2024 | |||||||||||
| Average <br>Balance | Interest | Average Yield / <br>Cost | Average <br>Balance | Interest | Average Yield /<br>Cost | |||||||
| (dollars in millions) | ||||||||||||
| Interest earning assets | ||||||||||||
| Loans HFS | $ | 4,300 | $ | 66.6 | 6.28 | % | $ | 4,542 | $ | 67.3 | 5.90 | % |
| Loans HFI: | ||||||||||||
| Commercial and industrial | 22,831 | 365.8 | 6.56 | 22,708 | 382.8 | 6.76 | ||||||
| CRE - non-owner occupied | 10,011 | 175.1 | 7.10 | 9,883 | 184.1 | 7.42 | ||||||
| CRE - owner occupied | 1,880 | 28.7 | 6.30 | 1,826 | 27.7 | 6.14 | ||||||
| Construction and land development | 4,407 | 91.8 | 8.45 | 4,571 | 100.1 | 8.72 | ||||||
| Residential real estate | 14,346 | 152.2 | 4.30 | 14,424 | 152.3 | 4.20 | ||||||
| Consumer | 46 | 0.8 | 6.69 | 52 | 0.9 | 6.57 | ||||||
| Total HFI loans (1), (2), (3) | 53,521 | 814.4 | 6.20 | 53,464 | 847.9 | 6.34 | ||||||
| Investment securities: | ||||||||||||
| Taxable | 13,020 | 143.5 | 4.47 | 13,550 | 155.0 | 4.55 | ||||||
| Tax-exempt | 2,255 | 24.5 | 5.52 | 2,269 | 24.4 | 5.36 | ||||||
| Total investment securities (1) | 15,275 | 168.0 | 4.63 | 15,819 | 179.4 | 4.67 | ||||||
| Cash and other | 4,083 | 46.6 | 4.63 | 3,481 | 44.0 | 5.03 | ||||||
| Total interest earning assets | 77,179 | 1,095.6 | 5.81 | 77,306 | 1,138.6 | 5.91 | ||||||
| Non-interest earning assets | ||||||||||||
| Cash and due from banks | 331 | 316 | ||||||||||
| Allowance for credit losses | (397) | (364) | ||||||||||
| Bank owned life insurance | 1,015 | 1,003 | ||||||||||
| Other assets | 4,720 | 4,427 | ||||||||||
| Total assets | $ | 82,848 | $ | 82,688 | ||||||||
| Interest-bearing liabilities | ||||||||||||
| Interest-bearing deposits: | ||||||||||||
| Interest-bearing demand accounts | $ | 15,870 | $ | 99.9 | 2.55 | % | $ | 14,555 | $ | 101.3 | 2.77 | % |
| Savings and money market | 21,206 | 164.8 | 3.15 | 19,895 | 167.8 | 3.36 | ||||||
| Certificates of deposit | 10,018 | 113.6 | 4.60 | 9,654 | 118.1 | 4.87 | ||||||
| Total interest-bearing deposits | 47,094 | 378.3 | 3.26 | 44,104 | 387.2 | 3.49 | ||||||
| Short-term borrowings | 1,722 | 20.8 | 4.89 | 3,480 | 45.8 | 5.24 | ||||||
| Long-term debt | 2,652 | 36.6 | 5.60 | 1,861 | 29.7 | 6.34 | ||||||
| Qualifying debt | 899 | 9.3 | 4.18 | 898 | 9.4 | 4.19 | ||||||
| Total interest-bearing liabilities | 52,367 | 445.0 | 3.45 | 50,343 | 472.1 | 3.73 | ||||||
| Interest cost of funding earning assets | 2.34 | 2.43 | ||||||||||
| Non-interest-bearing liabilities | ||||||||||||
| Non-interest-bearing deposits | 22,097 | 24,200 | ||||||||||
| Other liabilities | 1,485 | 1,380 | ||||||||||
| Equity | 6,899 | 6,765 | ||||||||||
| Total liabilities and equity | $ | 82,848 | $ | 82,688 | ||||||||
| Net interest income and margin (4) | $ | 650.6 | 3.47 | % | $ | 666.5 | 3.48 | % |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.2 million and $10.0 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
(2) Included in the yield computation are net loan fees of $23.8 million and $22.1 million for the three months ended March 31, 2025 and December 31, 2024, 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, 2025 | March 31, 2024 | |||||||||||
| Average <br>Balance | Interest | Average Yield / <br>Cost | Average <br>Balance | Interest | Average Yield /<br>Cost | |||||||
| (dollars in millions) | ||||||||||||
| Interest earning assets | ||||||||||||
| Loans HFS | $ | 4,300 | $ | 66.6 | 6.28 | % | $ | 2,416 | $ | 39.1 | 6.51 | % |
| Loans HFI: | ||||||||||||
| Commercial and industrial | 22,831 | 365.8 | 6.56 | 18,745 | 345.7 | 7.48 | ||||||
| CRE - non-owner occupied | 10,011 | 175.1 | 7.10 | 9,468 | 185.1 | 7.87 | ||||||
| CRE - owner occupied | 1,880 | 28.7 | 6.30 | 1,808 | 26.8 | 6.06 | ||||||
| Construction and land development | 4,407 | 91.8 | 8.45 | 4,922 | 117.1 | 9.57 | ||||||
| Residential real estate | 14,346 | 152.2 | 4.30 | 14,722 | 157.0 | 4.29 | ||||||
| Consumer | 46 | 0.8 | 6.69 | 61 | 1.1 | 7.28 | ||||||
| Total loans HFI (1), (2), (3) | 53,521 | 814.4 | 6.20 | 49,726 | 832.8 | 6.77 | ||||||
| Investment securities: | ||||||||||||
| Taxable | 13,020 | 143.5 | 4.47 | 10,717 | 121.1 | 4.54 | ||||||
| Tax-exempt | 2,255 | 24.5 | 5.52 | 2,205 | 22.9 | 5.24 | ||||||
| Total investment securities (1) | 15,275 | 168.0 | 4.63 | 12,922 | 144.0 | 4.66 | ||||||
| Cash and other | 4,083 | 46.6 | 4.63 | 2,953 | 39.1 | 5.33 | ||||||
| Total interest earning assets | 77,179 | 1,095.6 | 5.81 | 68,017 | 1,055.0 | 6.29 | ||||||
| Non-interest earning assets | ||||||||||||
| Cash and due from banks | 331 | 285 | ||||||||||
| Allowance for credit losses | (397) | (349) | ||||||||||
| Bank owned life insurance | 1,015 | 186 | ||||||||||
| Other assets | 4,720 | 4,542 | ||||||||||
| Total assets | $ | 82,848 | $ | 72,681 | ||||||||
| Interest bearing liabilities | ||||||||||||
| Interest bearing deposits: | ||||||||||||
| Interest bearing demand accounts | $ | 15,870 | $ | 99.9 | 2.55 | % | $ | 16,348 | $ | 122.0 | 3.00 | % |
| Savings and money market accounts | 21,206 | 164.8 | 3.15 | 15,247 | 129.9 | 3.43 | ||||||
| Certificates of deposit | 10,018 | 113.6 | 4.60 | 10,129 | 128.7 | 5.11 | ||||||
| Total interest bearing deposits | 47,094 | 378.3 | 3.26 | 41,724 | 380.6 | 3.67 | ||||||
| Short-term borrowings | 1,722 | 20.8 | 4.89 | 3,715 | 53.8 | 5.82 | ||||||
| Long-term debt | 2,652 | 36.6 | 5.60 | 444 | 12.2 | 11.06 | ||||||
| Qualifying debt | 899 | 9.3 | 4.18 | 895 | 9.5 | 4.28 | ||||||
| Total interest bearing liabilities | 52,367 | 445.0 | 3.45 | 46,778 | 456.1 | 3.92 | ||||||
| Interest cost of funding earning assets | 2.34 | 2.69 | ||||||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 22,097 | 18,183 | ||||||||||
| Other liabilities | 1,485 | 1,536 | ||||||||||
| Equity | 6,899 | 6,184 | ||||||||||
| Total liabilities and equity | $ | 82,848 | $ | 72,681 | ||||||||
| Net interest income and margin (4) | $ | 650.6 | 3.47 | % | $ | 598.9 | 3.60 | % |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.2 million and $9.6 million for the three months ended March 31, 2025 and 2024, respectively.
(2) Included in the yield computation are net loan fees of $23.8 million and $33.1 million for the three months ended March 31, 2025 and 2024, 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 | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
| Unaudited | Pre-Provision Net Revenue by Quarter: | |||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 650.6 | $ | 666.5 | $ | 696.9 | $ | 656.6 | $ | 598.9 | ||||||||||||||||||||||
| Total non-interest income | 127.4 | 171.9 | 126.2 | 115.2 | 129.9 | |||||||||||||||||||||||||||
| Net revenue | $ | 778.0 | $ | 838.4 | $ | 823.1 | $ | 771.8 | $ | 728.8 | ||||||||||||||||||||||
| Total non-interest expense | 500.4 | 519.0 | 537.4 | 486.8 | 481.8 | |||||||||||||||||||||||||||
| Pre-provision net revenue (1) | $ | 277.6 | $ | 319.4 | $ | 285.7 | $ | 285.0 | $ | 247.0 | ||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||
| Provision for credit losses | 31.2 | 60.0 | 33.6 | 37.1 | 15.2 | |||||||||||||||||||||||||||
| Income tax expense | 47.3 | 42.5 | 52.3 | 54.3 | 54.4 | |||||||||||||||||||||||||||
| Net income | $ | 199.1 | $ | 216.9 | $ | 199.8 | $ | 193.6 | $ | 177.4 | Efficiency Ratio (Tax Equivalent Basis) by Quarter: | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total non-interest expense | $ | 500.4 | $ | 519.0 | $ | 537.4 | $ | 486.8 | $ | 481.8 | ||||||||||||||||||||||
| Less: Deposit costs | 136.8 | 174.5 | 208.0 | 173.7 | 137.0 | |||||||||||||||||||||||||||
| Total non-interest expense, excluding deposit costs | 363.6 | 344.5 | 329.4 | 313.1 | 344.8 | |||||||||||||||||||||||||||
| Divided by: | ||||||||||||||||||||||||||||||||
| Total net interest income | 650.6 | 666.5 | 696.9 | 656.6 | 598.9 | |||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||
| Tax equivalent interest adjustment | 10.2 | 10.0 | 10.0 | 9.9 | 9.6 | |||||||||||||||||||||||||||
| Total non-interest income | 127.4 | 171.9 | 126.2 | 115.2 | 129.9 | |||||||||||||||||||||||||||
| Less: Deposit costs | 136.8 | 174.5 | 208.0 | 173.7 | 137.0 | |||||||||||||||||||||||||||
| $ | 651.4 | $ | 673.9 | $ | 625.1 | $ | 608.0 | $ | 601.4 | |||||||||||||||||||||||
| Efficiency ratio (2) | 63.5 | % | 61.2 | % | 64.5 | % | 62.3 | % | 65.2 | % | ||||||||||||||||||||||
| Efficiency ratio, adjusted for deposit costs (2) | 55.8 | % | 51.1 | % | 52.7 | % | 51.5 | % | 57.3 | % | Tangible Common Equity: | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||||||||||||||||||||||||||||
| (dollars and shares in millions, except per share data) | ||||||||||||||||||||||||||||||||
| Total equity | $ | 7,215 | $ | 6,707 | $ | 6,677 | $ | 6,334 | $ | 6,172 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Goodwill and intangible assets | 656 | 659 | 661 | 664 | 666 | |||||||||||||||||||||||||||
| Preferred stock | 295 | 295 | 295 | 295 | 295 | |||||||||||||||||||||||||||
| Noncontrolling interest in subsidiary | 293 | — | — | — | — | |||||||||||||||||||||||||||
| Total tangible common equity | 5,971 | 5,753 | 5,721 | 5,375 | 5,211 | |||||||||||||||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
| Total tangible common equity, net of tax | $ | 5,973 | $ | 5,755 | $ | 5,723 | $ | 5,377 | $ | 5,213 | ||||||||||||||||||||||
| Total assets | $ | 83,043 | $ | 80,934 | $ | 80,080 | $ | 80,581 | $ | 76,989 | ||||||||||||||||||||||
| Less: goodwill and intangible assets, net | 656 | 659 | 661 | 664 | 666 | |||||||||||||||||||||||||||
| Tangible assets | 82,387 | 80,275 | 79,419 | 79,917 | 76,323 | |||||||||||||||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
| Total tangible assets, net of tax | $ | 82,389 | $ | 80,277 | $ | 79,421 | $ | 79,919 | $ | 76,325 | ||||||||||||||||||||||
| Tangible common equity ratio (3) | 7.2 | % | 7.2 | % | 7.2 | % | 6.7 | % | 6.8 | % | ||||||||||||||||||||||
| Common shares outstanding | 110.4 | 110.1 | 110.1 | 110.2 | 110.2 | |||||||||||||||||||||||||||
| Tangible book value per share, net of tax (3) | $ | 54.10 | $ | 52.27 | $ | 51.98 | $ | 48.79 | $ | 47.30 | ||||||||||||||||||||||
| Non-GAAP Financial Measures Footnotes | ||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||
| (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 the financial condition and capital strength of the Company. |
16
walq12025earningspresent
EARNINGS CALL 1st Quarter 2025 April 22, 2025 Q2 20241
2 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, including our statements on the slide entitled "Management Outlook." 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, 2024, as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events 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 wars in Ukraine and the Middle East; 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; increased foreclosures and ownership of real property; 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 presentation to reflect new information, future events or otherwise, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events in this presentation might not occur, and you should not put undue reliance on any forward-looking statements. 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, 2025. 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. Forward-Looking Statements
3 1st Quarter 2025 | Financial Highlights Earnings & Profitability Q1 2025 Q4 2024 Q1 2024 Earnings per Share $ 1.79 $ 1.95 $ 1.60 Net Income 199.1 216.9 177.4 Net Revenue 778.0 838.4 728.8 Pre-Provision Net Revenue1 277.6 319.4 247.0 Net Interest Margin 3.47% 3.48% 3.60% Efficiency Ratio, Adjusted for Deposit Costs1 55.8 51.1 57.3 ROAA 0.97 1.04 0.98 ROTCE1 13.4 14.6 13.4 Balance Sheet & Capital Total Loans $ 54,761 $ 53,676 $ 50,700 Total Deposits 69,322 66,341 62,228 CET1 Ratio 11.1% 11.3% 11.0% TCE Ratio1 7.2 7.2 6.8 Tangible Book Value per Share1 $ 54.10 $ 52.27 $ 47.30 Asset Quality Provision for Credit Losses $ 31.2 $ 60.0 $ 15.2 Net Loan Charge-Offs 25.8 34.1 9.8 Net Loan Charge-Offs/Avg. Loans 0.20% 0.25% 0.08% Total Loan ACL/Funded HFI Loans2 0.77 0.77 0.74 NPAs3/Total Assets 0.60 0.65 0.53 Dollars in millions, except EPS Net Income EPS $199.1 million $1.79 12.2% Y-o-Y PPNR1 ROTCE1 Q1: $277.6 million 13.4% 12.4% Y-o-Y Loan Growth Capital Q1: $1.1 billion CET1 Ratio: 11.1% 8.0% Y-o-Y TCE Ratio1: 7.2% Tangible Book Value PER SHARE1 NPAs3 / Total Assets $54.10 0.60% 14.4% Y-o-Y 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 2) Ratio includes an allowance for credit losses of $11.9 million as of March 31, 2025 related to a pool of loans covered under 3 separate credit linked notes. 3) Nonperforming assets includes nonaccrual loans and repossessed assets. Q1 2025 Highlights
4 Q1-25 Q4-24 Q1-24 Interest Income $ 1,095.6 $ 1,138.6 $ 1,055.0 Interest Expense (445.0) (472.1) (456.1) Net Interest Income $ 650.6 $ 666.5 $ 598.9 Service Charges and Loan Fees 37.2 31.7 16.4 Mortgage Banking Revenue 71.3 92.6 91.7 Gains (Losses) on Securities Sales and FV Adj., Net 3.1 9.6 (0.6) Other 15.8 38.0 22.4 Non-Interest Income $ 127.4 $ 171.9 $ 129.9 Net Revenue $ 778.0 $ 838.4 $ 728.8 Salaries and Employee Benefits (182.4) (165.4) (154.9) Deposit Costs (136.8) (174.5) (137.0) Insurance (37.9) (36.7) (58.9) Other (143.3) (142.4) (131.0) Non-Interest Expense $ (500.4) $ (519.0) $ (481.8) Pre-Provision Net Revenue1 $ 277.6 $ 319.4 $ 247.0 Provision for Credit Losses (31.2) (60.0) (15.2) Pre-Tax Income $ 246.4 $ 259.4 $ 231.8 Income Tax (47.3) (42.5) (54.4) Net Income $ 199.1 $ 216.9 $ 177.4 Dividends on Preferred Stock (3.2) (3.2) (3.2) Net Income Available to Common Stockholders $ 195.9 $ 213.7 $ 174.2 Diluted Shares 109.6 109.6 109.0 Earnings Per Share $ 1.79 $ 1.95 $ 1.60 Net Interest Income increased $51.7 million over prior year and decreased $15.9 million from Q4 primarily due to a smaller quarterly day count Non-Interest Income decreased $2.5 million over prior year and decreased $44.5 million from Q4 primarily driven by the following: • A decline in Mortgage Banking Revenue: – Net gain on loan origination and sale activities of $49.5 million ($4.2 million higher over Q1-24) – Net loan servicing revenue of $21.8 million ($24.6 million lower over Q1-24) • A $7.9 million Loss on an Equity Investment that is expected to be recovered over time Mortgage Banking Metrics • $12.1 billion mortgage loan production in Q1 (81% purchase / 19% refinance), down 8% compared to Q4 and up 25% to Q1-24 • $12.6 billion interest rate lock commitment volume in Q1, down 1% compared to Q4 and up 29% to Q1-24 • Gain on Sale margin2 of 19 bps in Q1, compared to 21 bps in Q4 and 29 bps in Q1-24 • $70.6 billion in servicing portfolio UPB Provision for Credit Losses of $31.2 million due to net charge-offs of $25.8 million, loan growth and an incremental benefit to the reserve for CRE 1) 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. Quarterly Income Statement Q1 2025 Highlights 1 2 3 1 2 3 Dollars in millions, except EPS
5 • Securities Portfolio yields decreased 4 bps, primarily due to the impact of lower rates on floating rate securities tied to SOFR • Loan yields decreased 14 bps due to loan growth weighted towards the end of the quarter at lower variable rates • Cost of interest-bearing deposits decreased 23 bps, while total cost of funds decreased 10 bps to 2.42% due to a reduction in deposit rates – Interest-bearing deposit spot rate is 29 bps below Q1 average rate, demonstrating further improving funding cost Interest Bearing Deposits and Cost Loans and HFI Yield Deposits, Borrowings, and Cost of Liability Funding Securities Portfolio and Yield $16.1 $17.3 $16.4 $15.1 $15.9 4.66% 4.87% 4.89% 4.67% 4.63% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $50.7 $52.4 $53.3 $53.7 $54.8$1.8 $2.0 $2.3 $2.3 $3.2 6.77% 6.79% 6.65% 6.34% 6.20% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $43.8 $44.7 $43.1 $47.5 $47.3 3.67% 3.73% 3.76% 3.49% 3.26% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $43.8 $44.7 $43.1 $47.5 $47.3 $18.4 $21.5 $25.0 $18.8 $22.0 $7.1 $6.5 $3.9 $6.5 $5.0 2.82% 2.79% 2.67% 2.52% 2.42% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Non-Interest Bearing Deposits Total Borrowings Q1 2025 Highlights Net Interest Drivers Dollars in billions, unless otherwise indicated Interest Bearing Deposits Interest Bearing Deposits Total Investments HFI Loans HFS Loans
6 • Net Interest Income decreased $15.9 million, or 2.4%, primarily due to smaller quarterly day count and lower yields on interest earning assets • NIM decreased 1 bp, driven by lower yields on HFI loans, partially offset by reduced Interest Cost of Average Earning Assets ("AEA") – Yield on AEA decreased 10 bps to 5.81% due to lower loan yields – Interest Cost of AEA decreased 9 bps to 2.34% due to lower deposit rates • Drop in ECR-related Deposit Costs was more than twice the amount of NII compression – Annualized ECR costs (as a percentage of AEA) decreased 18 bps to 0.72% • AEA declined $127 million, or 0.2%, primarily from lower HFS loans and investment security balances, partially offset by higher cash balances Net Interest Income and Net Interest Margin $598.9 $656.6 $696.9 $666.5 $650.6 3.60% 3.63% 3.61% 3.48% 3.47% Net Interest Margin Net Interest Income Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $68.0 $73.9 $77.8 $77.3 $77.2 $49.7 $50.8 $52.8 $53.5 $53.5 $2.4 $2.9 $4.3 $4.5 $4.3 $12.9 $16.2 $16.5 $15.8 $15.3$3.0 $4.0 $4.2 $3.5 $4.1 6.29% 6.30% 6.19% 5.91% 5.81% Loans Loans HFS Securities Cash & Other Average Yield Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Average Earning Assets & Average Yield Dollars in millions Dollars in billions Net Interest Income Q1 2025 Highlights 4% 19% 4% 5% 20% 6% 5% 20% 6% 73% 69% 69%
7 • Adjusted efficiency ratio1 (excluding deposit costs) increased 470 bps to 55.8% and declined 150 bps from the same period last year – Total Non-Interest Expenses (Ex. Deposit Costs) increased $19.1 million to $363.6 million from seasonal compensation costs • Efficiency ratio1 increased 230 bps to 63.5%, but decreased 170 bps from the same period last year • Deposit Costs decreased $37.7 million to $136.8 million from lower average ECR-related deposit balances and rates – Total ECR-related deposit balances of $24.1 billion in Q1-25 – Average ECR-related deposits of $24.2 billion in Q1-25 compared to $25.9 billion in Q4-24 and $21.4 billion in Q1-24 $481.8 $486.8 $537.4 $519.0 $500.4 65.2% 62.3% 64.5% 61.2% 63.5% 57.3% 51.5% 52.7% 51.1% 55.8% Non-Interest Expenses Efficiency Ratio Adj. Efficiency Ratio Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Dollars in millions Non-Interest Expenses and Efficiency $154.9 $153.0 $157.8 $165.4 $182.4 $131.0 $126.3 $136.2 $142.4 $143.3 $58.9 $33.8 $35.4 $36.7 $37.9 $137.0 $173.7 $208.0 $174.5 $136.8 Deposit Costs Insurance Other Operating Expenses Salaries & Employee Benefits Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1 2025 Highlights Non-Interest Expenses and Efficiency Ratio1 1) Refer to slide 2 for further discussion of non-GAAP financial measures. Breakdown of Non-Interest Expenses $329.4 $344.5 $363.6 Non-Interest Expenses (Ex. Deposit Costs) $344.8 $313.1
8 Interest Rate Sensitivity Q1 2025 Highlights • A Ramp Scenario assumes a dynamic balance sheet and reflects an asset sensitive position on NII and a neutral position on EaR – WAL estimates a -100 bps ramp to reduce NII by (2.5%) • EaR is interest rate neutral, with no impact to earnings2 from a -100 bps ramp – The reduction in asset sensitivity from NII to EaR is driven by the estimated decrease in ECR-related deposit costs and increase in Mortgage Banking Revenue • Of total earning assets, 57% are variable with 42% repricing to SOFR • Variable liabilities represent 83% of total earning assets and are primarily modeled to changes in Fed Funds – Non-Maturity Deposit rates, including ECRs, are estimated to have a 62% beta (2.5)% 3.0% Down 100 Up 100 0.0% 1.3% Down 100 Up 100 1) Projected using a simulation model that calculates the difference between a baseline forecast using forward yield curves, compared to forecasted results from a gradual, parallel increase in rates over a 12-month period (“Ramp”). 2) Earnings defined as pre-tax net interest income adjusted for rate-sensitive non-interest income and expense accounts. NII Sensitivity - Ramp Scenario1 Earnings-at-Risk - Ramp Scenario1
9 Q1-25 Q4-24 Q1-24 Securities and Cash $ 19,147 $ 19,191 $ 19,642 Loans, HFS 3,238 2,286 1,841 Loans, HFI 54,761 53,676 50,700 Allowance for Loan Losses (389) (374) (340) Mortgage Servicing Rights 1,241 1,127 1,178 Goodwill and Intangibles 656 659 666 Other Assets 4,389 4,369 3,302 Total Assets $ 83,043 $ 80,934 $ 76,989 Deposits $ 69,322 $ 66,341 $ 62,228 Borrowings 4,151 5,573 6,221 Qualifying Debt 898 899 896 Other Liabilities 1,457 1,414 1,472 Total Liabilities $ 75,828 $ 74,227 $ 70,817 Equity 7,215 6,707 6,172 Total Liabilities and Equity $ 83,043 $ 80,934 $ 76,989 Tangible Book Value Per Share1 $ 54.10 $ 52.27 $ 47.30 Dollars in millions, except per share data Consolidated Balance Sheet Q1 2025 Highlights 1 2 3 4 5 Securities and Cash decreased $44 million, or 0.2%, to $19.1 billion and decreased $495 million, or 2.5%, over prior year Loans, HFI increased $1.1 billion, or 2.0%, and increased $4.1 billion, or 8.0%, over prior year Deposits increased $3.0 billion, or 4.5%, and increased $7.1 billion, or 11.4%, over prior year Borrowings decreased $1.4 billion due to partial return of Mortgage Warehouse deposits after Q4-24 seasonal outflows Equity increased $508 million due to REIT preferred stock issuance of $293 million (net of issuance costs), net income, and AOCI gains, partially offset by dividends Tangible Book Value/Share1 increased $1.83, or 3.5%, and increased $6.80, or 14.4%, over prior year 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 6 1 2 3 4 5 6
10 $4.1 Billion Year-over-Year Growth $19.7 $21.7 $22.6 $23.1 $24.1 $1.9 $1.9 $1.8 $1.8 $1.8$9.6 $9.6 $9.8 $9.9 $10.1 $4.8 $4.7 $4.7 $4.5 $4.5 $14.7 $14.5 $14.4 $14.4 $14.3 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 28.9% 3.7% 19.0% 39.0% 9.4% 26.1% 3.3% 18.4% 44.0% 8.2% Residential & Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial $50.7 +$0.4 $52.4 +$1.7 $53.3 +$0.9 $53.7 +$0.3 $54.8 +$1.1 Dollars in billions, unless otherwise indicated Total Loans, HFI Qtr Change Loan Composition Q1 2025 Highlights Increase (Decrease) by Loan Type: (in millions) QoQ YoY C&I $ 989 $ 4,368 CRE, Non-OO 172 403 Construction & Land 25 (277) Residential & Consumer (63) (361) CRE, OO (38) (72) Total $ 1,085 $ 4,061 26.8% 3.4% 18.4% 43.1% 8.3% 4.31% 6.30% 7.10% 6.56% 8.45% Q1-25 Avg. Yields1 Total Yield 6.20% 1) Average yields on loans have been adjusted to a tax equivalent basis. Loan growth from C&I businesses within Regional Banking and National Business Lines 50% 25% 25% Regional Banking National Business Lines Residential Loan Composition
11 Diversified deposit growth across Specialty Escrow Services and National Business Lines Q1 2025 Highlights $18.4 $21.5 $25.0 $18.8 $22.0 $16.9 $17.3 $13.8 $15.9 $15.5 $16.2 $17.1 $19.6 $21.2 $21.7 $10.7 $10.3 $9.6 $10.4 $10.1 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 27.3% 17.1% 29.6% 26.0% 22.4% 14.6% 31.7% 31.3% $7.1 Billion Year-over-Year Growth CDs Savings and MMA Interest Bearing DDA Non-Interest Bearing $66.2 +$4.0 $62.2 +$6.9 $66.3 $(1.7) $69.3 +$3.0 Increase (Decrease) by Deposit Type: (in millions) QoQ YoY Non-Interest Bearing $ 3,163 $ 3,610 Savings and MMA 520 5,534 Interest-Bearing DDA (371) (1,458) CDs (331) (592) Total $ 2,981 $ 7,094 $68.0 +$1.8 Total Deposits Qtr Change Deposit Composition Q1-25 Avg. Costs Total Cost 2.22% Dollars in billions, unless otherwise indicated 4.60% 2.55% N/A 3.15% 23.9% 15.7% 28.4% 32.0% Deposit Composition • 32% of total deposits are non-interest bearing – Approximately 35% have no ECRs 31% 39% 12% 8% 10% Regional Banking National Business Lines Specialty Escrow Svcs¹ Consumer Digital Other 1) Specialty Escrow Services includes: Business Escrow Services, Corporate Trust, Juris Banking, and other deposit initiatives
12 1.01% 0.93% 1.05% 1.25% 1.44% 0.53% 0.51% 0.45% 0.65% 0.60% Classified Assets / Total Assets NPLs + OREO / Total Assets Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $781 $748 $838 $1,009 $1,195 $8 $8 $8 $52 $51 $399 $401 $349 $476 $451 $374 $339 $481 $481 $693 OREO Non-Performing Loans Classified Accruing Assets Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Dollars in millions Asset Quality RatiosSpecial Mention Loans • Criticized Assets increased $254 million quarterly to $1.7 billion – Special Mention Loans increased $68 million to $460 million (84 bps to Funded Loans) – Total Classified Assets increased $186 million to $1.2 billion (144 bps to Total Assets) • Non-Performing Assets (Non-Performing Loans + OREO) decreased $26 million to $502 million (60 bps to Total Assets) – Non-performing loans are supported by 'as-is' valuations • Over the last 10+ years, only ~2% of Special Mention loans have migrated to loss Classified Assets $394 $532 $502 $392 $460 0.78% 1.01% 0.94% 0.73% 0.84% Special Mention Loans SM / Funded Loans Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1 2025 Highlights Classified Assets Mix 33% 2% 10% 2% CRE Investor C&I Resi Construction CRE OO 5% Other 48% Office Asset Quality
13 $10.2 $22.9 $27.8 $34.4 $27.5 $(0.4) $(0.1) $(1.2) $(0.3) $(1.7) Gross Charge-Offs Recoveries Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 $340 $352 $357 $374 $389 $33 $36 $38 $40 $35 $10 $10 $10 $17 $12 Loan Losses Unfunded Loan Commits. HTM and AFS Securities Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 0.74% 0.74% 0.74% 0.77% 0.77% 94% 97% 113% 87% 94% Total Loan ACL / Funded Loans Total Loan ACL / Non-Performing Loans Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Dollars in millions • Provision Expense of $31.2 million, primarily reflective of net charge-offs, loan growth, and an incremental benefit to the reserve for CRE • Net Loan Charge-Offs of $25.8 million, 20 bps, compared to $34.1 million, 25 bps, in Q4 • Total Loan ACL / Funded Loans3 flat from the prior quarter at 0.77% – Total Loan ACL / Funded Loans3 less loans covered by CLNs is 0.92% • 17% of loan portfolio is credit protected, consisting of government guaranteed, CLN protected4, and cash secured assets Credit Losses and ACL Ratios Q1 2025 Highlights Gross Loan Charge-offs and RecoveriesAllowance for Credit Losses Loan ACL Adequacy Ratios2,3 1) Included as a component of other liabilities on the balance sheet. 2) Total Loan ACL includes allowance for unfunded commitments. 3) Ratio includes an allowance for credit losses of $11.9 million as of March 31, 2025 related to a pool of loans covered under 3 separate credit linked notes. 4) As of March 31, 2025, CLNs cover a substantial portion of Residential ($8.5 billion) loans outstanding. 1
14 Q1 2025 Highlights Adjusted Total Loan ACL / Funded Loans: Q1-25 1) Total Loan ACL includes allowance for unfunded commitments. 2) Ratio includes an allowance for credit losses of $11.9 million as of March 31, 2025 related to a pool of loans covered under 3 separate credit linked notes. 3) Early Buyout Loans are government guaranteed. 4) Loss rates are based on the period from Q1-14 to Q1-25. 5) Q1-25 for WAL and Q4-24 for peers. Key Reserve Level Ratios Reserve levels enhanced by credit protection and low loss loan categories • WAL remains appropriately reserved • Total Loan ACL / Funded Loans of 0.77% – CLNs offer credit protection from first losses on covered reference pools in historically low loss loan categories – Total Loan ACL / Funded Loans less loans covered by CLNs is 0.92% – Total Loan ACL / Funded Loans less loans covered by CLNs and select no-to-low-loss loan categories (EFR, Residential, and Mortgage Warehouse) is 1.35% • >5x historical maximum annual loss rate4 • Reserves are a multiple of average losses times portfolio duration – Estimated weighted average duration of the loan portfolio is <4 years – Adj. total ACL covers >11x historical average annual loss rate4 x duration 0.77% 0.92% 0.93% 1.07% 1.35% 0.15% 0.01% 0.28% Total Loan ACL / Funded Loans Loans Covered by CLNs EFR Loans Residential Loans Mortgage Warehouse Loans 1 2 3 4 5 0.03% EBOs3 0.11% Resi 1,2 Embedded Losses WAL vs. Peer Loan Composition5 (in millions) WAL Peer Median ~0 Mtg. Warehouse $8,186 15 % $69 — % Low Residential 14,275 26 % 9,396 18 % High Consumer 38 — % 2,933 6 % Typical Other Commercial 32,262 59 % 40,718 76 % Total $54,761 $53,116 Loan mix matters for reserves due to embedded loss content Normalizing for Loan Composition = Loan ACL > 1% 1.07%
15 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 WAL Peer 9 Peer 1 0 Peer 1 1 Peer 1 2 Peer 1 3 Peer 1 4 Peer 1 5 Peer 1 6 Peer 1 7 Peer 1 8 Peer 1 9 Peer 2 0 Peer 2 1 Peer 2 2 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% Source: S&P Global Market Intelligence. Peers consist of the other 22 major exchange-traded US banks with total assets between $50 and $250 billion as of December 31, 2024 10.5%: Median 11.7%: 75th pctl 9.9%: 25th pctl Adjusted CET1 (incl. of AOCI Unrealized Securities Marks & Loan Loss Reserves) Fortified Adjusted Capital CET1 capital adjusted for AOCI securities marks & reserves remains solidly above peer median levels Q1 11.0% WAL Q4 11.0%
16 Regulatory Capital Ratios • Continue to exceed “well-capitalized” levels with CET1 of 11.1% Tangible Common Equity / Tangible Assets1 • TCE/TA remained flat at 7.2% Capital Accretion • Nominal decrease in CET1 quarter-over-quarter due to loan growth • Issued $300 million ($293 million, net of issuance costs) of preferred stock at our REIT subsidiary – Dividends at the REIT are tax deductible; results in after-tax dividend of 7.1%2 – Increased Tier 1 Leverage from 8.1% to 8.6% quarter-over-quarter 11.0% 11.0% 11.2% 11.3% 11.1% 6.8% 6.7% 7.2% 7.2% 7.2% CET1 TCE/TA Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 1) Refer to slide 2 for further discussion of non-GAAP financial measures 2) Assumes Q1-25 tax rates 14.0% 13.9% 14.1% 14.1% 14.5% 11.7% 11.7% 11.9% 11.9% 12.3% 8.5% 8.0% 7.8% 8.1% 8.6% Tier 1 Leverage Tier 1 Capital Total RBC Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1 2025 Highlights Common Capital Ratios Capital Accumulation Regulatory Capital Ratios 1
17 430% 501% 63% 120% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1-25 0x 1x 2x 3x 4x 5x 6x Tangible Book Value per Share1 • TBVPS increased $1.83 to $54.10 from organic earnings and smaller AOCI impact due to lower rates – Increased 3.5% quarter-over-quarter, non- annualized – Increased 14.4% year-over-year – 17.7% CAGR since year end 2014 • TBVPS has increased more than 6.5x that of peers – Quarterly common stock cash dividend of $0.38 per share 1) Refer to slide 2 for further discussion of non-GAAP financial measures. Note: Peers consist of the other 22 major exchange-traded US banks with total assets between $50 and $250 billion as of December 31, 2024. S&P Global Market Intelligence. Q1 2025 Highlights Tangible Book Value Growth Long-Term Growth in TBV per Share1 WAL Peer Median with Dividends Added Back Peer Median WAL with Dividends Added Back
18 • Pipelines are healthy. Remain flexible based on environmentBalance Sheet Growth Capital (CET1) Net Interest Income Non-interest Income Non-interest Expense Net Charge-Offs Effective Tax Rate 2024 Baseline 2025 Outlook Loans (HFI): $53.7 bn Deposits: $66.3 bn L (HFI): +$5.0 bn D: +$8.0 bn 11.3% > 11% $2.62 bn Up 6% - 8% $543 mm Up 6% - 8% $2.025 bn 18 bps Down 0% - 5% ~ 20 bps ~ 21% ~ 20% NIE (Ex. Deposit Costs) ECR-Related Deposit Costs $1,450 - $1,500 mm $485 - $535 mm $1,332 mm $693 mm Management Outlook Commentary • ECR Deposit Costs (Q2-25E): $140 - $150 mm • Prudent to maintain excess capital in uncertain environment • Assumes 2 25 bps rate cuts
Questions & Answers
Appendix
21 Commercial Real Estate Investor Statistics CRE Investor Portfolio (At Origination or Most Recent Appraisal) Note: LTV data assumes all loans are fully funded; based on most recent appraisals or appraisals at origination and utilizing, in most cases, “as stabilized” values for income producing properties. Underwriting Criteria and Mitigating Factors Distribution by LTV • Low LTV & LTC (50% to low 60%) range underwriting in areas minimizes tail risk • Simple capital structure - no junior liens or mezzanine debt permitted within our structures • Majority of CRE Investor (bulk of total CRE) is located in our core footprint states • Early elevation, proactive and comprehensive review of CRE portfolio and re-margin discussions with sponsors where sweep/re-margin provisions have been triggered 28% 25% 23% 12% 7% 5% <=40% 41-50% 51-60% 61-70% 71-80% >80% 42% 24% 8% 6% 6% 5% 2% 1% 1% 1% 4% 46% 69% 55% 39% 36% 37% 62% 40% 26% 44% 59% Outstanding LTV Hotel Offi ce Retail Multif amily Industr ial Tim e Share Medical Senior C are Data Center Mini-S torage Other Low uncovered risk with re-margin provisions • Only $648 million of Multi-Family, concentrated in western regional markets • No exposure to NYC area Multi-Family Limited Multi-Family Exposure $10.0 billion; 18% of Total Loans
22 Commercial Real Estate Investor: Office Distribution by LTV (At Origination or Most Recent Appraisal) 4% 16% 23% 23% 9% 25% <=40% 41-50% 51-60% 61-70% 71-80% >80% Key MSA Exposures $2.4 Billion; 24% of Total CRE Investor; 4% of Total Loans Underwriting Criteria and Mitigating Factors • 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 < 65% – No junior debt / mezzanine • Largely suburban exposure in “Work From Home” MSAs – Negligible exposure in CBD, 1% in Small City/Town, 10% in Midtown and 89% in Suburban MSAs • Focused on B+ properties accompanied by attractive amenities or those in core locations with appropriate business plans to reposition – Class A: 59%, Class B: 37%, Class C: 4% • Dispersed maturities – 43% to mature in 2025, 32% to mature in 2026 and 25% to mature in 2027+ 89% 10% 1% Suburban Midtown Small City/Town Note: LTV data assumes all loans are fully funded; based on most recent appraisals or, in most cases, appraisals at origination and utilizing “as stabilized” values for income producing properties.