wal-20220127
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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):  January 27, 2022


WESTERN ALLIANCE BANCORPORATION
(Exact name of registrant as specified in its charter)

Delaware001-3255088-0365922
(State or other jurisdiction
of incorporation)		(Commission
File Number)		(IRS Employer
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 Par ValueWALNew York Stock Exchange
Depositary Shares, Each Representing a 1/400th Interest in a Share of
4.250% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A
WAL PrANew 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 January 27, 2022, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended December 31, 2021 and posted on its website its fourth quarter 2021 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 
99.2 
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:January 27, 2022


Western Alliance Bancorporation
wallogo10a.jpg
One East Washington Street
Phoenix, AZ 85004
www.westernalliancebancorporation.com

PHOENIX--(BUSINESS WIRE)--January 27, 2022
FOURTH QUARTER AND FULL YEAR 2021 FINANCIAL RESULTS
Fourth Quarter Highlights:
Net incomeEarnings per share
PPNR1
Net interest margin
Efficiency ratio1
Book value per
common share
$246.0 million$2.32$325.9 million3.33%41.3%$43.78
$2.34, excluding acquisition and restructure expenses and loss on debt extinguishment
$37.841, excluding
goodwill and intangibles
CEO COMMENTARY:
“The strong momentum garnered throughout the year propelled Western Alliance to new heights, closing out the fourth quarter with record earnings and robust balance sheet growth,” said Kenneth Vecchione, President and Chief Executive Officer. “We achieved a record $246.0 million in net income and earnings per share of $2.32 for the quarter, an increase of 20% from the prior year. Quarterly loan and deposit growth of $4.3 billion and $2.3 billion, respectively, boosted total assets to $56.0 billion at year end, while tangible book value per share1 rose 9.1% to $37.84."

“Western Alliance’s full year results are a direct reflection of our collaborative and results-oriented culture. We completed the acquisition of AmeriHome in April, extending our national commercial businesses with a complementary mortgage franchise, and since then have made substantial progress towards the full integration of our teams. We also surpassed the $50 billion asset milestone, as both loan and deposit growth were up over 40% from the prior year, all while continuing our focus on asset quality. Net charge-offs for the year totaled $5.9 million, or only 2 basis points of average loans, and classified assets at the end of the year were 54 basis points to total assets. Our significant balance sheet growth during the year also drove an increase in earnings as PPNR1 climbed 50% over the prior year to $1.1 billion, with net income of $899.2 million and earnings per share up 72% to $8.67.”
Acquisition of AmeriHome Mortgage Company:
On April 7, 2021, the Company completed its acquisition of Aris Mortgage Holding Company, LLC, the parent company of AmeriHome Mortgage Company, LLC ("AmeriHome"). The Company's results include the financial results of AmeriHome beginning on April 7, 2021.
LINKED-QUARTER BASISFULL YEAR
FINANCIAL HIGHLIGHTS:
▪Net income of $246.0 million and earnings per share of $2.32, compared to $236.9 million and $2.28, respectively
▪Net revenue of $561.0 million, an increase of 2.3%, or $12.5 million, compared to an increase in non-interest expenses of 1.7%, or $4.0 million
▪Pre-provision net revenue1 of $325.9 million, up $8.8 million from $317.1 million
▪Effective tax rate of 20.6%, compared to 21.7%
▪Net income of $899.2 million and earnings per share of $8.67, up 77.5% and 72.0%, from $506.6 million and $5.04, respectively
▪Net revenue of $2.0 billion, an increase of 57.8%, or $715.3 million, compared to an increase in non-interest expenses of 73.2%, or $359.8 million
▪Pre-provision net revenue1 of $1.1 billion, up $376.7 million from $746.1 million
▪Effective tax rate of 19.9%, compared to 18.6%
FINANCIAL POSITION RESULTS:
▪HFI loans of $39.1 billion, up $4.3 billion, or 12.3%
▪Total deposits of $47.6 billion, up $2.3 billion, or 5.1%
▪Stockholders' equity of $5.0 billion, up $449 million
▪Increase in HFI loans of $12.0 billion, or 44.4%
▪Increase in total deposits of $15.7 billion, or 49.1%
▪Increase in stockholders' equity of $1.5 billion
LOANS AND ASSET QUALITY:
▪Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.15%, compared to 0.17%
▪Annualized net loan charge-offs to average loans outstanding of 0.02%, compared to 0.04%
▪Nonperforming assets to total assets of 0.15%, compared to 0.32%
▪Net loan charge-offs to average loans outstanding of 0.02%, compared to 0.06%
KEY PERFORMANCE METRICS:
▪Net interest margin of 3.33%, compared to 3.43%
▪Return on average assets and on tangible common equity1 of 1.69% and 25.8%, compared to 1.83% and 26.6%, respectively
▪Tangible common equity ratio1 of 7.3%, compared to 6.9%
▪Tangible book value per share1, net of tax, of $37.84, an increase of 9.1% from $34.67
▪Efficiency ratio1 of 41.3%, compared to 41.5%
▪Net interest margin of 3.41%, compared to 3.97%
▪Return on average assets and on tangible common equity1 of 1.83% and 26.2%, compared to 1.61% and 17.7%, respectively
▪Tangible common equity ratio1 of 7.3%, compared to 8.6%
▪Tangible book value per share1, net of tax, of $37.84, an increase of 22.5% from $30.90
▪Efficiency ratio1 of 41.8%, compared to 38.8%
1     See reconciliation of Non-GAAP Financial Measures on page 19.


Income Statement
Net interest income was $450.6 million in the fourth quarter 2021, an increase of $40.2 million from $410.4 million in the third quarter 2021, and an increase of $135.8 million, or 43.1%, compared to the fourth quarter 2020. Continued HFI loan growth and interest income from HFS loans drove the increase in net interest income from both the third quarter 2021 and the fourth quarter 2020.
The Company recorded a provision for credit losses totaling $13.2 million in the fourth quarter 2021, an increase of $0.9 million from $12.3 million in the third quarter 2021, compared to a provision release of $34.2 million in the fourth quarter 2020. The provision for credit losses during the fourth quarter 2021 is primarily due to loan growth.
The Company’s net interest margin in the fourth quarter 2021 was 3.33%, a decrease from 3.43% in the third quarter 2021, and a decrease from 3.84% in the fourth quarter 2020. The decrease in net interest margin from the prior period is largely a result of lower yields across most loan types and continued mix shift into residential loans. The decrease in net interest margin from the fourth quarter 2020 was driven by the lower rate environment, which lowered loan and investment security yields, partially offset by lower deposit costs.
Non-interest income was $110.4 million for the fourth quarter 2021, compared to $138.1 million for the third quarter 2021, and $23.8 million for the fourth quarter 2020. The decrease in non-interest income from the third quarter 2021 was driven by a decrease in net gain on loan origination and sale activities of $47.8 million, partially offset by gains on security sales and recovery from credit guarantees of $8.3 million and $7.2 million, respectively. The increase in non-interest income from the fourth quarter 2020 is primarily the result of mortgage banking related income from AmeriHome.
Net revenue was $561.0 million for the fourth quarter 2021, an increase of $12.5 million, or 2.3%, compared to $548.5 million for the third quarter 2021, and an increase of $222.4 million, or 65.7%, compared to $338.6 million for the fourth quarter 2020. The increase in net revenue from the third quarter 2021 and fourth quarter 2020 was driven by an increase in loan interest income generated from HFI loan growth and HFS loans. The increase in net revenue from the fourth quarter 2020 was also attributable to an increase in non-interest income from mortgage banking related income.
Non-interest expense of $237.8 million for the fourth quarter 2021, or $235.1 million adjusted1 to exclude AmeriHome acquisition and restructure related expenses and loss on extinguishment of debt, compared to $233.8 million for the third quarter 2021, or $231.4 million adjusted1, and $132.2 million for the fourth quarter 2020. The Company’s efficiency ratio1, adjusted to exclude acquisition and restructure related expenses and loss on extinguishment of debt, was 41.3% for the fourth quarter 2021, compared to 41.5% in the third quarter 2021, and 38.2% for the fourth quarter 2020. The increase in adjusted non-interest expense1 from the fourth quarter 2020 is attributable to growth from the AmeriHome acquisition, which increased compensation costs and also introduced additional non-interest expense items, such as loan servicing and loan acquisition and origination expenses.
Income tax expense was $64.0 million for the fourth quarter 2021, compared to $65.5 million for the third quarter 2021, and $47.0 million for the fourth quarter 2020.
Net income was $246.0 million for the fourth quarter 2021, an increase of $9.1 million from $236.9 million for the third quarter 2021, and an increase of $52.4 million from $193.6 million for the fourth quarter 2020. Earnings per share was $2.32 for the fourth quarter 2021, or $2.34 per share after adjusting for acquisition and restructure expenses and loss on extinguishment of debt, compared to $2.28, or $2.30 per share after adjusting for acquisition and restructure expenses, for the third quarter 2021, and $1.93 for the fourth quarter 2020. As discussed above, the increase in net income and earnings per share for the fourth quarter 2021 compared to the same quarter last year was driven by continued HFI loan growth and new activity related to the AmeriHome acquisition.
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, adjusted for acquisition and restructure expenses and loss on extinguishment of debt. For the fourth quarter 2021, the Company’s PPNR1 was $325.9 million, up $8.8 million from $317.1 million in the third quarter 2021, and up $119.5 million from $206.4 million in the fourth quarter 2020. The increase in PPNR1 from the third quarter 2021 and fourth quarter 2020 was driven by HFI loan growth and the AmeriHome acquisition completed on April 7, 2021.
The Company had 3,139 full-time equivalent employees and 58 offices at December 31, 2021, compared to 3,061 employees and 54 offices at September 30, 2021, and 1,915 employees and 49 offices at December 31, 2020. The increase in employees from the prior year primarily relates to the addition of AmeriHome employees.















1    See reconciliation of Non-GAAP Financial Measures on page 19.
2

Balance Sheet
HFI loans, net of deferred fees totaled $39.1 billion at December 31, 2021, an increase of $4.3 billion from $34.8 billion at September 30, 2021, and $12.0 billion from $27.1 billion at December 31, 2020. The increase in HFI loans from the prior quarter was driven by residential real estate, commercial and industrial, and CRE non-owner occupied loans, which increased $1.8 billion, $1.8 billion, and $683 million, respectively. From December 31, 2020, loan growth was primarily driven by residential real estate and commercial and industrial loans, which increased $6.8 billion and $4.0 billion, respectively. CRE non-owner occupied and construction and land development loans also increased $872 million and $591 million, respectively, partially offset by a decrease in CRE owner occupied loans of $259 million from December 31, 2020.
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 December 31, 2021, the allowance for loan losses to funded HFI loans was 0.65%, compared to 0.71% at September 30, 2021, and 1.03% at December 31, 2020. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans was 0.74% at December 31, 2021, compared to 0.80% at September 30, 2021, and 1.17% at December 31, 2020. The Company entered into two separate credit linked note transactions during the year, which effectively transfers the risk of loan losses on an $6.4 billion reference pool to the purchasers of the notes. 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 as of December 31, 2021 include an allowance of $7.2 million related to this $6.4 billion pool of loans.
Deposits totaled $47.6 billion at December 31, 2021, an increase of $2.3 billion from $45.3 billion at September 30, 2021, and an increase of $15.7 billion from $31.9 billion at December 31, 2020. By deposit type, the increase from the prior quarter is primarily attributable to an increase of $2.0 billion from interest bearing demand deposits, $295 million from non-interest bearing demand deposits, and $226 million from certificates of deposits, partially offset by a decrease of $162 million from savings and money market accounts. From December 31, 2020, deposits increased across all deposit types, with the largest increases in non-interest bearing demand deposits of $7.9 billion, savings and money market accounts of $4.9 billion, and interest-bearing demand deposits of $2.5 billion. Non-interest bearing deposits were $21.4 billion at December 31, 2021, compared to $21.1 billion at September 30, 2021, and $13.5 billion at December 31, 2020.
The table below shows the Company's deposit types as a percentage of total deposits:
Dec 31, 2021Sep 30, 2021Dec 31, 2020
Non-interest bearing44.9 %46.5 %42.1 %
Savings and money market36.3 38.5 38.9 
Interest-bearing demand14.5 11.0 13.8 
Certificates of deposit4.3 4.0 5.2 
The Company’s ratio of HFI loans to deposits was 82.1% at December 31, 2021, compared to 76.9% at September 30, 2021, and 84.7% at December 31, 2020.
Borrowings were $1.5 billion at December 31, 2021, $987 million at September 30, 2021, and $5 million at December 31, 2020. The increase in borrowings from September 30, 2021 is due primarily to an increase in overnight borrowings of $275 million and issuance of $228 million in credit linked notes during the quarter. The increase in borrowings from December 31, 2020 is due primarily to the assumption of borrowings related to the acquisition of AmeriHome, the issuances of $470 million in credit linked notes during the year, and an increase in overnight borrowings of $675 million.
Qualifying debt totaled $896 million at December 31, 2021, compared to $1.1 billion at September 30, 2021, and $549 million at December 31, 2020. The decrease in qualifying debt from September 30, 2021 is due to redemption of $175 million in subordinated debt during the quarter. The increase in qualifying debt from December 31, 2020 is primarily related to the issuance of $600 million in subordinated debt in June 2021, partially offset by $250 million in subordinated debt redemptions during the year.
Stockholders’ equity was $5.0 billion at December 31, 2021, compared to $4.5 billion at September 30, 2021, and $3.4 billion at December 31, 2020. The increase in stockholders' equity from September 30, 2021 is attributable to net income and net proceeds from the sale of the Company's common stock under its ATM program, partially offset by dividends to shareholders. During the quarter, the Company sold 2.4 million shares of its common stock at an average purchase price of $108.09 per share, with aggregate net proceeds totaling $261 million. A cash dividend of $0.35 per share was paid to common shareholders on December 3, 2021, totaling $36.5 million. Additionally, the Company paid a cash dividend of $0.289225 per depository share to preferred shareholders on December 29, 2021, totaling $3.5 million. The increase in stockholders' equity from December 31, 2020 is primarily a function of net income, issuance of preferred stock, and sales of common stock in a direct stock offering and under the Company's ATM program, partially offset by dividends to shareholders.
At December 31, 2021, tangible common equity, net of tax1, was 7.3% of tangible assets1 and total capital was 12.3% of risk-weighted assets. The Company’s tangible book value per share1 was $37.84 at December 31, 2021, up 22.5% from December 31, 2020.
Total assets increased 6.1% to $56.0 billion at December 31, 2021, from $52.8 billion at September 30, 2021, and increased 53.5% from $36.5 billion at December 31, 2020. The increase in total assets from the prior year was driven by continued organic loan and deposit growth and the acquisition of net assets in the AmeriHome acquisition.



1     See reconciliation of Non-GAAP Financial Measures on page 19.
3

Asset Quality
Provision for credit losses totaled $13.2 million for the fourth quarter 2021, compared $12.3 million for the third quarter 2021, and a recovery of credit losses of $34.2 million for the fourth quarter 2020. Net loan charge-offs in the fourth quarter 2021 were $1.4 million, or 0.02% of average loans (annualized), compared to $3.0 million, or 0.04%, in the third quarter 2021, and $3.9 million, or 0.06%, in the fourth quarter 2020.
Nonaccrual loans decreased $5.5 million to $72.6 million during the quarter and decreased $42.6 million from December 31, 2020. Loans past due 90 days and still accruing interest were zero at December 31, 2021, September 30, 2021, and December 31, 2020. Loans past due 30-89 days and still accruing interest totaled $52.5 million at December 31, 2021, an increase from $23.6 million at September 30, 2021, and an increase from $11.2 million at December 31, 2020.
Repossessed assets totaled $11.7 million at December 31, 2021, an increase of $0.2 million from $11.5 million at September 30, 2021, and an increase of $10.3 million from $1.4 million at December 31, 2020. Classified assets totaled $300.7 million at December 31, 2021, an increase of $35.8 million from $264.9 million at September 30, 2021, and $77.0 million from $223.7 million at December 31, 2020.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 6.4% at December 31, 2021, compared to 6.3% at September 30, 2021, and 6.5% at December 31, 2020.




1     See reconciliation of Non-GAAP Financial Measures on page 19.
4

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 and beginning on April 7, 2021 includes the financial results of AmeriHome.
–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 $25.1 billion at December 31, 2021, an increase of $2.3 billion during the quarter, and an increase of $4.8 billion during the year. Deposits for the Commercial segment totaled $30.5 billion at December 31, 2021, an increase of $2.1 billion during the quarter, and an increase of $9.0 billion during the year.
Pre-tax income for the Commercial segment was $238.3 million for the three months ended December 31, 2021, an increase of $45.1 million from the three months ended September 30, 2021, and a decrease of $7.9 million from the three months ended December 31, 2020. For the year ended December 31, 2021, the Commercial segment reported total pre-tax income of $861.5 million, an increase of $248.8 million compared to the year ended December 31, 2020.
The Consumer Related segment reported an HFI loan balance of $14.0 billion at December 31, 2021, an increase of $2.0 billion during the quarter, and an increase of $7.2 billion during the year. The Consumer Related segment also has loans held for sale, initially acquired as part of the AmeriHome acquisition, of $5.6 billion at December 31, 2021, a decrease of $899 million during the quarter. Deposits for the Consumer Related segment totaled $15.4 billion, a decrease of $388 million during the quarter, and an increase of $5.4 billion during the year.
Pre-tax income for the Consumer Related segment was $135.0 million for the three months ended December 31, 2021, a decrease of $41.0 million from the three months ended September 30, 2021, and an increase of $67.8 million from the three months ended December 31, 2020. For the year ended December 31, 2021, the Consumer Related segment reported total pre-tax income of $496.1 million, an increase of $275.6 million compared to the year ended December 31, 2020.
5

Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter 2021 financial results at 12:00 p.m. ET on Friday, January 28, 2022. Participants may access the call by dialing 1-833-236-2753 and using the conference ID 4979835 or via live audio webcast using the website link https://event.on24.com/wcc/r/3575941/3C25E9877E98D20BD00D726902D7F5D0. 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 January 28th through 11:00 p.m. ET February 28th by dialing 1-800-585-8367, conference ID: 4979835.
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, 2020 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; 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; 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 $50 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. The company is again #1 best-performing of the 50 largest public U.S. banks in the S&P Global Market Intelligence listing for 2020, ranks high on the Forbes “Best Banks in America” list year after year and was named #1 Best Emerging Regional Bank in Bank Director’s 2022 RankingBanking study. Its primary subsidiary, Western Alliance Bank, Member FDIC, helps clients realize their ambitions with teams of experienced bankers and mortgage experts who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities, including blockchain-based offerings. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking brands and has offices in key markets nationwide. For more information, visit westernalliancebank.com.


6

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of December 31,
20212020Change %
(in millions)
Total assets$55,982.6 $36,461.0 53.5 %
Loans held for sale5,635.1 — —
HFI loans, net of deferred fees39,075.4 27,053.0 44.4 
Investment securities7,540.9 5,504.8 37.0 
Total deposits47,612.0 31,930.5 49.1 
Qualifying debt895.8 548.7 63.3 
Stockholders' equity4,962.6 3,413.5 45.4 
Tangible common equity, net of tax (1)4,035.2 3,116.6 29.5 
Selected Income Statement Data:
For the Three Months Ended December 31,For the Year Ended December 31,
20212020Change %20212020Change %
(in millions, except per share data)(in millions, except per share data)
Interest income$483.3 $331.6 45.7 %$1,658.7 $1,261.8 31.5 %
Interest expense32.7 16.8 94.6 109.9 94.9 15.8 
Net interest income450.6 314.8 43.1 1,548.8 1,166.9 32.7 
Provision for (recovery of) credit losses13.2 (34.2)NM(21.4)123.6 NM
Net interest income after provision for credit losses437.4 349.0 25.3 1,570.2 1,043.3 50.5 
Non-interest income110.4 23.8 NM404.2 70.8 NM
Non-interest expense237.8 132.2 79.9 851.4 491.6 73.2 
Income before income taxes310.0 240.6 28.8 1,123.0 622.5 80.4 
Income tax expense64.0 47.0 36.2 223.8 115.9 93.1 
Net income246.0 193.6 27.1 899.2 506.6 77.5 
Dividends on preferred stock3.5 — —3.5 — — 
Net income available to common stockholders$242.5 $193.6 25.3 $895.7 $506.6 76.8 
Diluted earnings per common share$2.32 $1.93 20.2 $8.67 $5.04 72.0 

(1)    See Reconciliation of Non-GAAP Financial Measures.
NM    Changes +/- 100% are not meaningful.

7

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended December 31,For the Year Ended December 31,
20212020Change %20212020Change %
Diluted earnings per common share $2.32 $1.93 20.2 %$8.67 $5.04 72.0%
Book value per common share43.78 33.85 29.3 
Tangible book value per common share, net of tax (1)37.84 30.90 22.5 
Average common shares outstanding
(in millions):
Basic103.9 99.9 4.0 102.7 100.2 2.5 
Diluted104.5 100.4 4.1 103.3 100.5 2.8 
Common shares outstanding106.6 100.8 5.7 
Selected Performance Ratios:
Return on average assets (2)1.69 %2.22 %(23.9)%1.83 %1.61 %13.7 %
Return on average tangible common equity (1, 2)25.8 25.7 0.4 26.2 17.7 47.4 
Net interest margin (2)3.33 3.84 (13.3)3.41 3.97 (14.1)
Efficiency ratio - tax equivalent basis (1)41.3 38.2 8.1 41.8 38.8 7.7 
Loan to deposit ratio82.1 84.7 (3.1)
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)0.02 %0.06 %(66.7)%0.02 %0.06 %(66.7)%
Nonaccrual loans to funded HFI loans0.19 0.43 (55.8)
Nonaccrual loans and repossessed assets to total assets0.15 0.32 (53.1)
Allowance for loan losses to funded HFI loans0.65 1.03 (36.9)
Allowance for loan losses to nonaccrual HFI loans348 242 43.7 
Capital Ratios:
Dec 31, 2021Sep 30, 2021Dec 31, 2020
Tangible common equity (1)7.3 %6.9 %8.6 %
Common Equity Tier 1 (3)9.1 8.7 9.9 
Tier 1 Leverage ratio (3)7.8 7.9 9.2 
Tier 1 Capital (3)9.9 9.6 10.2 
Total Capital (3)12.3 12.6 12.5 

(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 December 31, 2021 are preliminary.
NM    Changes +/- 100% are not meaningful.






8

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended December 31,Year Ended December 31,
2021202020212020
(dollars in millions, except per share data)
Interest income:
Loans$438.6 $301.2 $1,488.8 $1,144.3 
Investment securities43.7 29.4 164.7 112.4 
Other1.0 1.0 5.2 5.1 
Total interest income483.3 331.6 1,658.7 1,261.8 
Interest expense:
Deposits12.8 10.7 47.5 70.4 
Qualifying debt9.2 6.0 33.1 23.9 
Borrowings10.7 0.1 29.3 0.6 
Total interest expense32.7 16.8 109.9 94.9 
Net interest income450.6 314.8 1,548.8 1,166.9 
Provision for (recovery of) credit losses13.2 (34.2)(21.4)123.6 
Net interest income after provision for credit losses437.4 349.0 1,570.2 1,043.3 
Non-interest income:
Net gain on loan origination and sale activities73.2 — 326.2 — 
Service charges and fees7.1 5.928.3 23.3
Income from equity investments5.2 6.422.1 12.7
Commercial banking related income4.9 4.017.4 14.7
Net loan servicing revenue (expense)2.3 — (16.3)— 
Gain on sales of investment securities8.3 — 8.3 0.2 
Gain on recovery from credit guarantees7.2 — 7.2 — 
Fair value (loss) gain adjustments on assets measured at fair value, net(0.8)4.8 (1.3)3.8 
Other3.0 2.7 12.3 16.1 
Total non-interest income110.4 23.8 404.2 70.8 
Non-interest expenses:
Salaries and employee benefits120.6 83.1 466.7 303.6 
Legal, professional, and directors' fees20.8 11.1 58.6 42.2 
Data processing17.9 9.6 58.2 35.7 
Loan servicing expenses15.6 — 53.5 — 
Occupancy12.4 8.4 43.8 34.1 
Deposit costs9.1 4.5 29.8 18.5 
Loan acquisition and origination expenses8.6 — 28.8 — 
Insurance7.1 3.8 23.0 13.3 
Business development and marketing6.1 2.9 13.5 9.6 
Loss on extinguishment of debt5.9 — 5.9 — 
Net (gain) on sales and valuations of repossessed and other assets(0.4)(0.2)(3.5)(1.5)
Acquisition and restructure (recoveries) expenses(3.2)— 15.3 — 
Other17.3 9.0 57.8 36.1 
Total non-interest expense237.8 132.2 851.4 491.6 
Income before income taxes310.0 240.6 1,123.0 622.5 
Income tax expense64.0 47.0 223.8 115.9 
Net income246.0 193.6 899.2 506.6 
Dividends on preferred stock3.5 — 3.5 — 
Net income available to common stockholders$242.5 $193.6 $895.7 $506.6 
Earnings per common share:
Diluted shares104.5 100.4 103.3 100.5 
Diluted earnings per share$2.32 $1.93 $8.67 $5.04 

9

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020
(in millions, except per share data)
Interest income:
Loans$438.6 $398.0 $353.8 $298.4 $301.2 
Investment securities43.7 43.5 43.5 34.0 29.4 
Other1.0 1.3 1.2 1.7 1.0 
Total interest income483.3 442.8 398.5 334.1 331.6 
Interest expense:
Deposits12.8 12.3 11.6 10.8 10.7 
Qualifying debt9.2 10.8 7.2 5.9 6.0 
Borrowings10.7 9.3 9.2 0.1 0.1 
Total interest expense32.7 32.4 28.0 16.8 16.8 
Net interest income450.6 410.4 370.5 317.3 314.8 
Provision for (recovery of) credit losses13.2 12.3 (14.5)(32.4)(34.2)
Net interest income after provision for credit losses437.4 398.1 385.0 349.7 349.0 
Non-interest income:
Net gain on loan origination and sale activities73.2 121.0 132.0 — — 
Service charges and fees7.1 7.1 7.4 6.7 5.9 
Income from equity investments5.2 2.5 6.8 7.6 6.4 
Commercial banking related income4.9 4.6 4.5 3.4 4.0 
Net loan servicing revenue (expense)2.3 2.2 (20.8)— — 
Gain on sales of investment securities8.3 — — — — 
Gain on recovery from credit guarantees7.2 — — — — 
Fair value (loss) gain adjustments on assets measured at fair value, net(0.8)(2.2)3.2 (1.5)4.8 
Other3.0 2.9 2.9 3.5 2.7 
Total non-interest income110.4 138.1 136.0 19.7 23.8 
Non-interest expenses:
Salaries and employee benefits120.6 133.5 128.9 83.7 83.1 
Legal, professional, and directors' fees20.8 13.7 14.0 10.1 11.1 
Data processing17.9 15.4 15.0 9.9 9.6 
Loan servicing expenses15.6 15.6 22.3 — — 
Occupancy12.4 12.4 10.4 8.6 8.4 
Deposit costs9.1 7.3 7.1 6.3 4.5 
Loan acquisition and origination expenses8.6 9.7 10.5 — — 
Insurance7.1 6.2 5.5 4.2 3.8 
Business development and marketing6.1 2.8 3.2 1.4 2.9 
Loss on extinguishment of debt5.9 — — — — 
Net (gain) loss on sales and valuations of repossessed and other assets(0.4)(1.3)(1.5)(0.3)(0.2)
Acquisition and restructure (recoveries) expenses(3.2)2.4 15.7 0.4 — 
Other17.3 16.1 13.7 10.7 9.0 
Total non-interest expense237.8 233.8 244.8 135.0 132.2 
Income before income taxes310.0 302.4 276.2 234.4 240.6 
Income tax expense64.0 65.5 52.4 41.9 47.0 
Net income246.0 236.9 223.8 192.5 193.6 
Dividends on preferred stock3.5 — — — — 
Net income available to common stockholders$242.5 $236.9 $223.8 $192.5 $193.6 
Earnings per common share:
Diluted shares104.5 103.9 103.4 101.4 100.4 
Diluted earnings per share$2.32 $2.28 $2.17 $1.90 $1.93 

10


Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020
(in millions)
Assets:
Cash and due from banks$516.4 $917.9 $3,395.8 $5,346.5 $2,671.7 
Investment securities7,540.9 7,695.9 7,845.0 7,888.8 5,504.8 
Loans held for sale5,635.1 6,534.3 4,465.2 — — 
Loans held for investment:
Commercial and industrial18,297.5 16,524.7 14,284.5 15,070.7 14,324.4 
Commercial real estate - non-owner occupied6,526.4 5,843.7 5,695.6 5,681.4 5,654.7 
Commercial real estate - owner occupied1,898.1 1,996.6 2,028.1 2,052.0 2,156.8 
Construction and land development3,022.7 2,943.3 2,856.9 2,767.9 2,431.3 
Residential real estate9,281.7 7,452.8 5,120.7 3,109.1 2,434.6 
Consumer49.0 40.8 40.6 29.9 51.2 
Loans, net of deferred fees39,075.4 34,801.9 30,026.4 28,711.0 27,053.0 
Allowance for loan losses(252.5)(246.9)(232.9)(247.1)(278.9)
Loans, net of deferred fees and allowance38,822.9 34,555.0 29,793.5 28,463.9 26,774.1 
Mortgage servicing rights698.0 604.8 726.2 — — 
Premises and equipment, net181.9 161.2 150.2 138.4 134.1 
Operating lease right-of-use asset133.0 106.0 94.9 77.0 72.5 
Other assets acquired through foreclosure, net11.7 11.5 3.9 4.2 1.4 
Bank owned life insurance180.2 179.2 178.2 177.3 176.3 
Goodwill and other intangibles, net634.8 608.4 610.7 298.0 298.5 
Other assets1,627.7 1,400.9 1,805.4 1,002.9 827.6 
Total assets$55,982.6 $52,775.1 $49,069.0 $43,397.0 $36,461.0 
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits$21,353.4 $21,058.2 $20,105.6 $17,542.8 $13,463.3 
Interest bearing:
Demand6,924.0 4,954.3 4,187.7 3,893.4 4,396.4 
Savings and money market17,278.6 17,440.1 15,810.3 15,276.0 12,413.4 
Certificates of deposit2,056.0 1,830.0 1,817.4 1,680.9 1,657.4 
Total deposits47,612.0 45,282.6 41,921.0 38,393.1 31,930.5 
Customer repurchase agreements16.6 16.1 20.2 15.9 16.0 
Total customer funds47,628.6 45,298.7 41,941.2 38,409.0 31,946.5 
Borrowings1,485.3 987.4 595.2 5.0 5.0 
Qualifying debt895.8 1,064.9 1,140.0 543.7 548.7 
Operating lease liability142.8 115.0 102.4 84.6 79.9 
Accrued interest payable and other liabilities867.5 795.1 1,255.7 642.0 467.4 
Total liabilities51,020.0 48,261.1 45,034.5 39,684.3 33,047.5 
Stockholders' Equity:
Preferred stock294.5 294.5 — — — 
Common stock and additional paid-in capital1,879.4 1,609.9 1,603.4 1,524.2 1,319.8 
Retained earnings2,773.0 2,567.0 2,366.6 2,168.6 2,001.4 
Accumulated other comprehensive income15.7 42.6 64.5 19.9 92.3 
Total stockholders' equity4,962.6 4,514.0 4,034.5 3,712.7 3,413.5 
Total liabilities and stockholders' equity$55,982.6 $52,775.1 $49,069.0 $43,397.0 $36,461.0 


11

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020
(in millions)
Allowance for loan losses
Balance, beginning of period$246.9 $232.9 $247.1 $278.9 $310.5 
Provision for (recovery of) credit losses (1)7.0 17.0 (14.1)(30.4)(27.7)
Recoveries of loans previously charged-off:
Commercial and industrial1.8 0.1 0.4 0.5 1.5 
Commercial real estate - non-owner occupied0.3 — 1.7 0.2 0.1 
Commercial real estate - owner occupied— 0.1 — — 0.1 
Construction and land development— 0.1 — — — 
Residential real estate0.4 — 0.1 — 0.1 
Consumer— — — — — 
Total recoveries2.5 0.3 2.2 0.7 1.8 
Loans charged-off:
Commercial and industrial3.8 3.3 2.3 0.1 5.6 
Commercial real estate - non-owner occupied— — — 2.0 — 
Commercial real estate - owner occupied— — — — 0.1 
Construction and land development— — — — — 
Residential real estate0.1 — — — — 
Consumer— — — — — 
Total loans charged-off3.9 3.3 2.3 2.1 5.7 
Net loan charge-offs1.4 3.0 0.1 1.4 3.9 
Balance, end of period$252.5 $246.9 $232.9 $247.1 $278.9 
Allowance for unfunded loan commitments
Balance, beginning of period$32.1 $31.3 $32.6 $37.0 $44.4 
Provision for (recovery of) credit losses (1)5.5 0.8 (1.3)(4.4)(7.4)
Balance, end of period (2)$37.6 $32.1 $31.3 $32.6 $37.0 
Components of the allowance for credit losses on loans
Allowance for loan losses$252.5 $246.9 $232.9 $247.1 $278.9 
Allowance for unfunded loan commitments37.6 32.1 31.3 32.6 37.0 
Total allowance for credit losses on loans$290.1 $279.0 $264.2 $279.7 $315.9 
Net charge-offs to average loans - annualized0.02 %0.04 %0.00 %0.02 %0.06 %
Allowance for loan losses to funded HFI loans (3)0.65 %0.71 %0.78 %0.86 %1.03 %
Allowance for credit losses to funded HFI loans (3)0.74 0.80 0.88 0.97 1.17 
Allowance for loan losses to nonaccrual HFI loans348 316 242 218 242 
Allowance for credit losses to nonaccrual HFI loans400 357 274 246 274 
(1)    The above tables reflect the provision for credit losses on funded and unfunded loans. Provision for credit losses on investment securities totaled $0.7 million, resulting in an ending allowance for credit losses on investment securities of $5.2 million.
(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 $7.2 million as of December 31, 2021 related to an $6.4 billion pool of loans covered under two separate credit linked note transactions.

12

Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Dec 31, 2021Sep 30, 2021Jun 30, 2021Mar 31, 2021Dec 31, 2020
(in millions)
Nonaccrual loans$72.6 $78.1 $96.3 $113.6 $115.2 
Nonaccrual loans to funded HFI loans0.19 %0.22 %0.32 %0.40 %0.43 %
Repossessed assets$11.7 $11.5 $3.9 $4.2 $1.4 
Nonaccrual loans and repossessed assets to total assets0.15 %0.17 %0.20 %0.27 %0.32 %
Loans past due 90 days, still accruing$— $— $— $— $— 
Loans past due 90 days and still accruing to funded HFI loans— %— %— %— %— %
Loans past due 30 to 89 days, still accruing$52.5 $23.6 $9.8 $7.3 $11.2 
Loans past due 30 to 89 days, still accruing to funded HFI loans0.13 %0.07 %0.03 %0.03 %0.04 %
Special mention loans$331.1 $364.5 $404.8 $474.2 $451.1 
Special mention loans to funded HFI loans0.85 %1.05 %1.35 %1.65 %1.67 %
Classified loans on accrual$216.4 $175.3 $138.2 $163.1 $107.0 
Classified loans on accrual to funded HFI loans0.55 %0.50 %0.46 %0.57 %0.40 %
Classified assets$300.7 $264.9 $238.5 $280.9 $223.7 
Classified assets to total assets0.54 %0.50 %0.49 %0.65 %0.61 %

13

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
December 31, 2021September 30, 2021
Average
Balance		InterestAverage Yield /
Cost		Average
Balance		InterestAverage Yield /
Cost
($ in millions)($ in millions)
Interest earning assets
Loans held for sale$9,158.7 $70.3 3.04 %$7,254.2 $61.3 3.35 %
Loans held for investment:
Commercial and industrial17,087.5 169.5 4.01 14,943.0 156.1 4.23 
CRE - non-owner occupied6,208.5 70.0 4.48 5,754.5 68.5 4.73 
CRE - owner occupied1,970.9 24.2 4.96 2,030.5 25.1 5.00 
Construction and land development3,016.0 43.9 5.78 2,862.7 40.6 5.63 
Residential real estate8,282.3 60.3 2.89 5,906.7 46.0 3.09 
Consumer43.5 0.4 3.85 43.6 0.4 4.18 
Total HFI loans (1), (2), (3)36,608.7 368.3 4.03 31,541.0 336.7 4.28 
Securities:
Securities - taxable5,442.7 25.6 1.86 5,521.4 25.6 1.84 
Securities - tax-exempt2,175.3 18.1 4.12 2,223.3 17.9 4.00 
Total securities (1)7,618.0 43.7 2.51 7,744.7 43.5 2.46 
Cash and other1,274.6 1.0 0.31 1,882.9 1.3 0.27 
Total interest earning assets54,660.0 483.3 3.57 48,422.8 442.8 3.70 
Non-interest earning assets
Cash and due from banks252.6 291.1 
Allowance for credit losses(255.9)(242.1)
Bank owned life insurance179.5 178.6 
Other assets2,766.8 2,683.7 
Total assets$57,603.0 $51,334.1 
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts$5,918.6 $1.7 0.11 %$4,786.5 $1.4 0.12 %
Savings and money market17,215.2 9.1 0.21 16,833.0 8.9 0.21 
Certificates of deposit2,073.6 2.0 0.38 1,902.2 2.0 0.41 
Total interest-bearing deposits25,207.4 12.8 0.20 23,521.7 12.3 0.21 
Short-term borrowings2,815.5 2.4 0.35 417.9 1.1 1.07 
Long-term debt564.8 8.3 5.81 557.9 8.2 5.79 
Qualifying debt978.2 9.2 3.72 1,076.5 10.8 3.98 
Total interest-bearing liabilities29,565.9 32.7 0.44 25,574.0 32.4 0.50 
Interest cost of funding earning assets0.24 0.27 
Non-interest-bearing liabilities
Non-interest-bearing demand deposits22,487.0 20,731.6 
Other liabilities912.5 855.3 
Stockholders’ equity4,637.6 4,173.2 
Total liabilities and stockholders' equity$57,603.0 $51,334.1 
Net interest income and margin (4)$450.6 3.33 %$410.4 3.43 %

(1)     Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.4 million and $8.5 million for the three months ended December 31, 2021 and September 30, 2021, respectively.
(2)    Included in the yield computation are net loan fees of $35.8 million and $30.4 million for the three months ended December 31, 2021 and September 30, 2021, 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.
14

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
December 31, 2021December 31, 2020
Average
Balance		InterestAverage Yield /
Cost		Average
Balance		InterestAverage Yield /
Cost
($ in millions)($ in millions)
Interest earning assets
Loans held for sale$9,158.7 $70.3 3.04 %$16.0 $— — %
Loans held for investment:
Commercial and industrial17,087.5 169.5 4.01 13,448.1 152.9 4.61 
CRE - non-owner-occupied6,208.5 70.0 4.48 5,502.5 64.6 4.68 
CRE - owner-occupied1,970.9 24.2 4.96 2,191.6 26.5 4.92 
Construction and land development3,016.0 43.9 5.78 2,387.7 34.5 5.76 
Residential real estate8,282.3 60.3 2.89 2,389.4 22.2 3.70 
Consumer43.5 0.4 3.85 40.6 0.5 5.07 
Total HFI loans (1), (2), (3)36,608.7 368.3 4.03 25,959.9 301.2 4.67 
Securities:
Securities - taxable5,442.7 25.6 1.86 3,265.6 14.9 1.81 
Securities - tax-exempt2,175.3 18.1 4.12 1,773.4 14.5 4.10 
Total securities (1)7,618.0 43.7 2.51 5,039.0 29.4 2.61 
Other1,274.6 1.0 0.31 2,393.1 1.0 0.16 
Total interest earning assets54,660.0 483.3 3.57 33,408.0 331.6 4.04 
Non-interest earning assets
Cash and due from banks252.6 163.1 
Allowance for credit losses(255.9)(321.0)
Bank owned life insurance179.5 175.7 
Other assets2,766.8 1,266.0 
Total assets$57,603.0 $34,691.8 
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts$5,918.6 $1.7 0.11 %$3,718.7 $1.5 0.15 %
Savings and money market accounts17,215.2 9.1 0.21 11,386.7 6.0 0.21 
Certificates of deposit2,073.6 2.0 0.38 1,654.0 3.2 0.78 
Total interest-bearing deposits25,207.4 12.8 0.20 16,759.4 10.7 0.25 
Short-term borrowings2,815.5 2.4 0.35 29.2 0.1 0.21 
Long-term debt564.8 8.3 5.81 — — —
Qualifying debt978.2 9.2 3.72 554.7 6.0 4.38 
Total interest-bearing liabilities29,565.9 32.7 0.44 17,343.3 16.8 0.38 
Interest cost of funding earning assets0.24 0.20 
Non-interest-bearing liabilities
Non-interest-bearing demand deposits22,487.0 13,408.3 
Other liabilities912.5 641.0 
Stockholders’ equity4,637.6 3,299.2 
Total liabilities and stockholders' equity$57,603.0 $34,691.8 
Net interest income and margin (4)$450.6 3.33 %$314.8 3.84 %

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.4 million and $7.7 million for the three months ended December 31, 2021 and 2020, respectively.
(2)    Included in the yield computation are net loan fees of $35.8 million and $33.4 million for the three months ended December 31, 2021 and 2020, 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.
15

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Year Ended
December 31, 2021December 31, 2020
Average
Balance		InterestAverage Yield /
Cost		Average
Balance		InterestAverage Yield /
Cost
($ in millions)($ in millions)
Interest earning assets
Loans held for sale$5,475.7 $174.4 3.18 %$20.0 $0.3 1.63 %
Loans held for investment:
Commercial and industrial14,978.4 624.8 4.26 12,032.1 549.6 4.67 
CRE - non-owner occupied5,829.0 271.3 4.67 5,370.1 262.9 4.91 
CRE - owner occupied2,029.8 97.7 4.92 2,244.6 109.8 5.00 
Construction and land development2,790.4 160.0 5.74 2,183.5 129.9 5.97 
Residential real estate5,129.2 158.9 3.10 2,318.6 89.4 3.85 
Consumer39.0 1.7 4.43 47.0 2.4 5.19 
Total HFI loans (1), (2), (3)30,795.8 1,314.4 4.32 24,195.9 1,144.0 4.79 
Securities:
Securities - taxable5,284.5 95.8 1.81 2,936.5 63.1 2.15 
Securities - tax-exempt2,137.1 68.9 4.05 1,476.4 49.3 4.20 
Total securities (1)7,421.6 164.7 2.46 4,412.9 112.4 2.84 
Other2,718.3 5.2 0.19 1,452.1 5.1 0.36 
Total interest earning assets46,411.4 1,658.7 3.65 30,080.9 1,261.8 4.29 
Non-interest earning assets
Cash and due from banks292.7 171.2 
Allowance for credit losses(261.0)(277.7)
Bank owned life insurance178.1 177.9 
Other assets2,486.7 1,221.1 
Total assets$49,107.9 $31,373.4 
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts$4,750.8 $5.9 0.13 %$3,488.3 $9.0 0.26 %
Savings and money market accounts15,814.3 33.1 0.21 10,008.9 34.8 0.35 
Certificates of deposit1,849.5 8.5 0.46 1,997.6 26.6 1.33 
Total interest-bearing deposits22,414.6 47.5 0.21 15,494.8 70.4 0.45 
Short-term borrowings1,206.0 8.2 0.68 119.7 0.6 0.49 
Long-term debt373.2 21.1 5.65 — — — 
Qualifying debt827.5 33.1 4.00 514.1 23.9 4.66 
Total interest-bearing liabilities24,821.3 109.9 0.44 16,128.6 94.9 0.59 
Interest cost of funding earning assets0.24 0.32 
Non-interest-bearing liabilities
Non-interest-bearing demand deposits19,415.6 11,465.5 
Other liabilities837.2 627.5 
Stockholders’ equity4,033.8 3,151.8 
Total liabilities and stockholders' equity$49,107.9 $31,373.4 
Net interest income and margin (4)$1,548.8 3.41 %$1,166.9 3.97 %

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $33.3 million and $28.4 million for the year ended December 31, 2021 and 2020, respectively.
(2)    Included in the yield computation are net loan fees of $131.7 million and $94.9 million for the year ended December 31, 2021 and 2020, 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.
16

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated CompanyCommercialConsumer RelatedCorporate & Other
At December 31, 2021:(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities$8,057.3 $12.9 $82.4 $7,962.0 
Loans held for sale5,635.1 — 5,635.1 — 
Loans, net of deferred fees and costs39,075.4 25,092.4 13,983.0 — 
Less: allowance for credit losses(252.5)(226.0)(26.5)— 
Total loans38,822.9 24,866.4 13,956.5 — 
Other assets acquired through foreclosure, net11.7 11.7 — — 
Goodwill and other intangible assets, net634.8 294.7 340.1 — 
Other assets2,820.8 253.8 1,278.1 1,288.9 
Total assets$55,982.6 $25,439.5 $21,292.2 $9,250.9 
Liabilities:
Deposits$47,612.0 $30,466.8 $15,362.9 $1,782.3 
Borrowings and qualifying debt2,381.1 — 353.2 2,027.9 
Other liabilities1,026.9 233.4 138.2 655.3 
Total liabilities51,020.0 30,700.2 15,854.3 4,465.5 
Allocated equity:4,962.6 2,588.0 1,596.2 778.4 
Total liabilities and stockholders' equity$55,982.6 $33,288.2 $17,450.5 $5,243.9 
Excess funds provided (used)— 7,848.7 (3,841.7)(4,007.0)
No. of offices58 50 7 1 
No. of full-time equivalent employees3,139 628 1,173 1,338 
Income Statement:
Three Months Ended December 31, 2021:(in millions)
Net interest income$450.6 $332.8 $185.6 $(67.8)
Provision for (recovery of) credit losses13.2 4.9 7.6 0.7 
Net interest income (expense) after provision for credit losses437.4 327.9 178.0 (68.5)
Non-interest income110.4 16.9 76.5 17.0 
Non-interest expense237.8 106.5 119.5 11.8 
Income (loss) before income taxes310.0 238.3 135.0 (63.3)
Income tax expense (benefit)64.0 56.9 32.6 (25.5)
Net income (loss)$246.0 $181.4 $102.4 $(37.8)
Year Ended December 31, 2021:(in millions)
Net interest income$1,548.8 $1,181.7 $603.4 $(236.3)
(Recovery of) provision for credit losses(21.4)(30.6)11.0 (1.8)
Net interest income (expense) after provision for credit losses1,570.2 1,212.3 592.4 (234.5)
Non-interest income404.2 65.1 317.6 21.5 
Non-interest expense851.4 415.9 413.9 21.6 
Income (loss) before income taxes1,123.0 861.5 496.1 (234.6)
Income tax expense (benefit)223.8 206.6 120.1 (102.9)
Net income (loss)$899.2 $654.9 $376.0 $(131.7)
17

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated CompanyCommercialConsumer RelatedCorporate
At December 31, 2020:(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities$8,176.5 $12.0 $45.6 $8,118.9 
Loans, net of deferred fees and costs27,053.0 20,245.8 6,798.2 9.0 
Less: allowance for loan losses(278.9)(263.4)(15.4)(0.1)
Total loans26,774.1 19,982.4 6,782.8 8.9 
Other assets acquired through foreclosure, net1.4 1.4 — — 
Goodwill and other intangible assets, net298.5 296.1 2.4 — 
Other assets1,210.5 257.0 96.6 856.9 
Total assets$36,461.0 $20,548.9 $6,927.4 $8,984.7 
Liabilities:
Deposits$31,930.5 $21,448.0 $9,936.8 $545.7 
Borrowings and qualifying debt553.7 — — 553.7 
Other liabilities563.3 170.4 3.3 389.6 
Total liabilities33,047.5 21,618.4 9,940.1 1,489.0 
Allocated equity:3,413.5 1,992.2 579.1 842.2 
Total liabilities and stockholders' equity$36,461.0 $23,610.6 $10,519.2 $2,331.2 
Excess funds provided (used)— 3,061.7 3,591.8 (6,653.5)
No. of offices49 45 3 1 
No. of full-time equivalent employees1,915 581 156 1,178 
Income Statement:
Three Months Ended December 31, 2020:(in millions)
Net interest income$314.8 $270.8 $93.6 $(49.6)
Provision for (recovery of) credit losses(34.2)(37.2)2.2 0.8 
Net interest income (expense) after provision for credit losses349.0 308.0 91.4 (50.4)
Non-interest income23.8 16.1 0.3 7.4 
Non-interest expense132.2 77.9 24.5 29.8 
Income (loss) before income taxes240.6 246.2 67.2 (72.8)
Income tax expense (benefit)47.0 59.7 16.1 (28.8)
Net income (loss)$193.6 $186.5 $51.1 $(44.0)
Year Ended December 31, 2020:(in millions)
Net interest income$1,166.9 $999.7 $302.5 $(135.3)
Provision for credit losses123.6 128.6 (9.0)4.0 
Net interest income (expense) after provision for credit losses1,043.3 871.1 311.5 (139.3)
Non-interest income70.8 50.5 1.6 18.7 
Non-interest expense491.6 308.9 92.6 90.1 
Income (loss) before income taxes622.5 612.7 220.5 (210.7)
Income tax expense (benefit)115.9 147.6 52.3 (84.0)
Net income (loss)$506.6 $465.1 $168.2 $(126.7)
18


Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Pre-Provision Net Revenue by Quarter:
Three Months Ended
12/31/20219/30/20216/30/20213/31/202112/31/2020
(in millions)
Net interest income$450.6 $410.4 $370.5 $317.3 $314.8 
Total non-interest income110.4 138.1 136.0 19.7 23.8 
Net revenue$561.0 $548.5 $506.5 $337.0 $338.6 
Total non-interest expense237.8 233.8 244.8 135.0 132.2 
Less:
Acquisition and restructure (recoveries) expenses(3.2)2.4 15.7 0.4 — 
Loss on extinguishment of debt5.9 — — — — 
Total non-interest expense, adjusted$235.1 $231.4 $229.1 $134.6 $132.2 
Pre-provision net revenue (1)$325.9 $317.1 $277.4 $202.4 $206.4 
Less:
Acquisition and restructure (recoveries) expenses(3.2)2.4 15.7 0.4 — 
Loss on extinguishment of debt5.9 — — — — 
Provision for (recovery of) credit losses13.2 12.3 (14.5)(32.4)(34.2)
Income tax expense64.0 65.5 52.4 41.9 47.0 
Net income$246.0 $236.9 $223.8 $192.5 $193.6 
Efficiency Ratio by Quarter:
Total non-interest expense, adjusted$235.1 $231.4 $229.1 $134.6 $132.2 
Divided by:
Total net interest income450.6 410.4 370.5 317.3 314.8 
Plus:
Tax equivalent interest adjustment8.4 8.5 8.5 8.0 7.7 
Total non-interest income110.4 138.1 136.0 19.7 23.8 
$569.4 $557.0 $515.0 $345.0 $346.3 
Efficiency ratio - tax equivalent basis (2)41.3 %41.5 %44.5 %39.0 %38.2 %

Tangible Common Equity:
12/31/20219/30/20216/30/20213/31/202112/31/2020
(dollars and shares in millions)
Total stockholders' equity$4,962.6 $4,514.0 $4,034.5 $3,712.7 $3,413.5 
Less:
Goodwill and intangible assets634.8 608.4 610.7 298.0 298.5 
Preferred stock294.5 294.5 — — — 
Total tangible common equity4,033.3 3,611.1 3,423.8 3,414.7 3,115.0 
Plus: deferred tax - attributed to intangible assets1.9 1.8 1.8 1.4 1.6 
Total tangible common equity, net of tax$4,035.2 $3,612.9 $3,425.6 $3,416.1 $3,116.6 
Total assets$55,982.6 $52,775.1 $49,069.0 $43,397.0 $36,461.0 
Less: goodwill and intangible assets, net634.8 608.4 610.7 298.0 298.5 
Tangible assets55,347.8 52,166.7 48,458.3 43,099.0 36,162.5 
Plus: deferred tax - attributed to intangible assets1.9 1.8 1.8 1.4 1.6 
Total tangible assets, net of tax$55,349.7 $52,168.5 $48,460.1 $43,100.4 $36,164.1 
Tangible common equity ratio (3)7.3 %6.9 %7.1 %7.9 %8.6 %
Common shares outstanding106.6 104.2 104.2 103.4 100.8 
Tangible book value per share, net of tax (3)$37.84 $34.67 $32.86 $33.02 $30.90 
19

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 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
EARNINGS CALL 4th Quarter 2021 JANUARY 28, 2022

 
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, 2020 and the Company’s subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; 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; 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 December 31, 2021. 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

 
4th Quarter 2021 | Financial Highlights Earnings & Profitability Q4-21 Q3-21 Q4-20 Net Income $246.0 $236.9 $193.6 Net Revenue $561.0 $548.5 $338.6 Pre Provision Net Revenue1 $325.9 $317.1 $206.4 EPS – Adjusted1 $2.34 $2.30 $1.93 Net Interest Margin 3.33% 3.43% 3.84% Efficiency Ratio1 41.3% 41.5% 38.2% ROAA 1.69% 1.83% 2.22% ROTCE1 25.8% 26.6% 25.7% Balance Sheet & Capital Total Loans $39,075 $34,802 $27,053 Total Deposits $47,612 $45,283 $31,931 CET1 Ratio 9.1% 8.7% 9.9% TCE Ratio1 7.3% 6.9% 8.6% Tangible Book Value per Share1 $37.84 $34.67 $30.90 Asset Quality Provision for (Recovery of) Credit losses $13.2 $12.3 $(34.2) Net Charge-Offs $1.4 $3.0 $3.9 Net Charge-Offs/Avg. Loans 0.02% 0.04% 0.06% Total Loan ACL/Funded Loans3 0.74% 0.80% 1.17% NPAs2/Total Assets 0.15% 0.17% 0.32% Net Income $246.0 million EPS $2.32 EPS, Adjusted1 $2.34 PPNR1 Growth Q4: $8.8 million 58% YoY ROTCE1 25.8% Loan Growth Q4: $4.3 billion 44% YoY Deposit Growth Q4: $2.3 billion 49% YoY Tangible Book Value PER SHARE1 $37.84 22% YoY NPAs2/ Total Assets 0.15% 3 Dollars in millions, except EPS 1) Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses and loss on debt extinguishment. 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 $7.2 million as of December 31, 2021 related to an $6.4 billion pool of loans covered under 2 separate credit linked notes. Highlights

 
Quarterly Income Statement Net Interest Income increased $40.2 million, primarily from interest income on loan growth, including Loans HFS Non-Interest Income decreased $27.7 million, driven by decrease in Mortgage Banking Related Income • $18.3 billion loan production in Q4 (53% purchase / 47% refinance), down 4.4% compared to Q3 • Gain on Sale margin2 of 28 bps in Q4, compared to 35 bps in Q3 • $54.3 billion in servicing portfolio UPB Salaries and Employee Benefits decreased $12.9 million due to a reduction in incentive compensation Provision for Credit Losses of $13.2 million primarily due to loan growth Loss on Debt Extinguishment Net of Tax of $4.6 million due to redemption of $175 million in subordinated debt Preferred dividend on $300 million of preferred stock issued in Q3 2021 4 1 2 3 Dollars in millions, except EPS Q4 2021 Highlights 1) Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses and loss on debt extinguishment. 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 Q4-21 Q3-21 Q4-20 Net Interest Income $450.6) $410.4) $314.8) Mortgage Banking Related Income 75.5) 123.2) -) Other 34.9) 14.9) 23.8) Non-Interest Income $110.4) $138.1) $23.8) Net Revenue $561.0) $548.5) $338.6) Salaries and Employee Benefits (120.6) (133.5) (83.1) Other (114.5) (97.9) (49.1) Non-Interest Expense, Adjusted1 $ (235.1) $ (231.4) $ (132.2) Pre-Provision Net Revenue1 $325.9) $317.1) $206.4) (Provision for) Recovery of Credit Losses (13.2) (12.3) 34.2) Pre-Tax Income, Adjusted1 $312.7) $304.8) $240.6) Income Tax, Adjusted1 (64.7) (66.0) (47.0) Net Income, Adjusted1 $248.0) $238.8) $193.6) Loss on Debt Extinguishment, Net of Tax (4.6) -) -) Merger/Restructure Reversal (Expense), Net of Tax 2.6) (1.9) -) Net Income $246.0) $236.9) $193.6) Dividends on Preferred Stock (3.5) -) -) Net Income Available to Common Stockholders $242.5) $236.9) $193.6) Diluted Shares 104.5) 103.9) 100.4) Earnings Per Share $2.32) $2.28) $1.93) Merger/Restructure (Reversal) Expense per Share (0.02) 0.02 - Loss on Debt Extinguishment per Share 0.04 -)) - Earnings Per Share - Adjusted1 $2.34) $2.30) $1.93) 1 3 5 4 2 6 6

 
Annual Consolidated Financial Results Net Interest Income increased $381.9 million, primarily from interest income on loan growth, including Loans HFS, partially offset by increased interest expense from Subordinated Debt and Credit Linked Note issuances during the year Non-Interest Income increase driven by Mortgage Banking Related Income • $57.8 billion loan production in 2021 (52% purchase / 48% refinance) • Gain on Sale margin of 41 bps in 2021 Salaries and Employee Benefits increased $163.1 million due to addition of AMH employees and an increase in incentive compensation • FTE increase of 64% Recovery of Credit Losses of $21.4 million primarily due to improvement in economic forecasts and loan growth in low loss segments Income Tax, Adjusted1 of $228.2 million as tax rate increased due to growth in taxable income which is outpacing growth in tax exempt income 5 1 2 3 Dollars in millions, except EPS 2021 Highlights 1) Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses and loss on debt extinguishment. Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) AmeriHome acquisition completed on April 7, 2021; financial results for April 7, 2021 through December 31, 2021 4 2021 2020 Net Interest Income $1,548.8) $1,166.9) Mortgage Banking Related Income 309.9) -) Other 94.3) 70.8) Non-Interest Income $404.2) $70.8) Net Revenue $1,953.0) $1,237.7) Salaries and Employee Benefits (466.7) (303.6) Other (363.5) (188.0) Non-Interest Expense, Adjusted1 $ (830.2) $ (491.6) Pre-Provision Net Revenue1 $1,122.8) $746.1) Recovery of (Provision for) Credit Losses 21.4) (123.6) Pre-Tax Income, Adjusted1 $1,144.2) $622.5) Income Tax, Adjusted1 (228.2) (115.9) Net Income, Adjusted1 $916.0) $506.6) Loss on Debt Extinguishment, Net of Tax (4.6) -) Merger/Restructure Expense, Net of Tax (12.2) -) Net Income $899.2) $506.6) Dividends on Preferred Stock (3.5) -) Net Income Available to Common Stockholders $895.7) $506.6) Diluted Shares 103.3 100.5 Earnings Per Share $8.67 $5.04 Merger/Restructure Expense per Share 0.12 (((- Loss on Debt Extinguishment per Share 0.04 (((- Earnings Per Share - Adjusted1 $8.83)) $5.04)) 1 3 4 2 5 5

 
Total Investments and Yield Interest Bearing Deposits and Cost Loans and HFI Yield Deposits, Borrowings & Cost of Liability Funding Net Interest Drivers 6 • Loan yields decreased 25 bps following continued mix shift into residential loans and lower yields across most loan types • Yield on Loans Held for Sale of 3.04%, decreased from 3.35% in Q3 • Cost of interest-bearing deposits decreased 1 bps, and total cost of funds decreased 3 bps to 0.25% due to lower cost on short-term borrowings and redemption of subordinated debt $18.5 $20.9 $21.8 $24.2 $26.3 $13.4 $17.5 $20.1 $21.1 $21.3 0.22% 0.19% 0.27% 0.28% 0.25% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 $18.5 $20.9 $21.8 $24.2 $26.3 0.25% 0.22% 0.22% 0.21% 0.20% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 $5.5 $7.9 $7.8 $7.7 $7.5 2.61% 2.37% 2.47% 2.46% 2.51% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Non-Interest Bearing Deposits Total Borrowings Q4 2021 Highlights $27.1 $28.7 $30.0 $34.8 $39.1 $5.6 4.67% 4.59% 4.48% 4.28% 4.03% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Loans Loans, HFS $4.5 $6.5 Interest Bearing DepositsInterest Bearing Deposits Dollars in billions, unless otherwise indicated Total Investments

 
$314.8 $317.3 $370.5 $410.4 $450.6 3.84% 3.37% 3.51% 3.43% 3.33%3.80% 3.29% 3.51% 3.40% 3.31% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Net Interest Income 7 • Net Interest Income increased $40.2 million, or 9.8%, over prior quarter primarily due to growth in Loans, including Loans HFS • Average Earning Assets grew $6.2bn or 13% • NIM decreased 10 bps, driven by lower Loan yields, partially offset by lower cost of funds • Cash / avg. earning assets decreased to 2.3%, compared to 3.9% in Q3 • Avg. securities + cash / avg. earnings assets decreased to 16%, compared to 20% in Q3 • Loans, including Loans HFS / avg. earning assets increased to 84%, up from 80% in Q3 • Net PPP loan fees of $4.2 million recorded in Q4 • $3.7 million of deferred loan fees remain to be recognized Net Interest Income and Net Interest Margin Average Earning Assets & Average Yield Net Interest Income Net Interest Margin NIM ex. PPP Q4 2021 Highlights Dollars in millions 65% 16% 15% 4% 65% 13% 18% 4% Dollars in billions Cash & Other Securities Loans Held for Sale Loans Average Yield 80% 14% 6% $26.0 $26.7 $28.2 $31.5 $36.6 $5.3 $7.3 $9.2 $5.0 $6.5 $7.8 $7.7 $7.6 $2.4 $5.9 $1.9 $1.9 $1.3 4.04% 3.55% 3.77% 3.70% 3.57% $33.4 $39.1 $43.2 $48.4 $54.7 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Dollars in b llions 2% 14% 17% 67% 7% 15% 78% 4% 16% 15% 65%

 
Net Interest Income in a Rising Rate Environment 8 Highlights Net Interest Income – Ramp Scenario on Growth Balance Sheet • WAL expects a 4.6% increase in NII under a 100bps rate shock on a static balance sheet • WAL proactively reduced asset sensitivity during the prior declining rate environment with contractual rate floors and fixed rate residential purchases. AMH’s mortgage banking activities now serve as a partial hedge in a changing rate environment • Nearly 58% of loans (ex-HFS) are contractually variable ($22.8 billion) • 94% of variable rate loans with rate floors are at floors • 75% of loans at floors will move off their floors after 100bps rise in rates • Changing rate environment influences other items on income statement • Related to mortgage banking, gain on sale margins will decrease, partially offset by additional loan servicing income from extended MSR lives • Negotiated earnings credit rates on deposits may increase as rates rise • Interest rate sensitivity could be dampened by ~50% Dollars in millions Net Interest Income – Shock Scenario on Static Balance Sheet $73 $142 $202 $378 12 month 24 month Up 100 bps Up 200 bps 12.6% 4.6% 4.6% 12.2% $62 $257 $377 12 month 24 month Up 100 bps over 4 Quarters Up 200 bps over 8 Quarters 3.0% 5.5% 8.1%

 
Expenses and Efficiency1 9 • Efficiency ratio1 decreased 20 bps to 41.3% compared to the prior quarter and increased 310 bps from the same period last year • Improvement in efficiency ratio1 as net revenue growth outpaced expense growth • Excluding PPP net loan fees and interest, efficiency ratio1 was 41.7% Non-Interest Expenses and Efficiency Ratio Dollars in millions $132.2 $134.6 $229.1 $231.4 $235.1 38.2% 39.0% 44.5% 41.5% 41.3% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Non-Interest Expenses Efficiency Ratio Q4 2021 Highlights 1) Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses and loss on debt extinguishment. Refer to slide 2 for further discussion of Non-GAAP financial measures.

 
Pre-Provision Net Revenue1, Net Income, and ROA 10 • PPNR1 increased $8.8 million from the prior quarter and $119.5 million, or 57.9%, from the same period last year • PPNR ROA1 decreased 21 bps from the prior quarter and 13 bps from the same period last year as balance sheet growth outpaced PPNR • ROA decreased 14 bps from the prior quarter and 53 bps from the same period last year PPNR, Net Income & ROA Dollars in millions $206.4 $202.4 $277.4 $317.1 $325.9 $193.6 $192.5 $223.8 $236.9 $246.0 2.37% 2.03% 2.31% 2.45% 2.24% 2.22% 1.93% 1.86% 1.83% 1.69% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 PPNR Net Income PPNR ROA ROA Q4 2021 Highlights 1) Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses and loss on debt extinguishment. Refer to slide 2 for further discussion of Non-GAAP financial measures.

 
Consolidated Balance Sheet Loans increased $4.3 billion, or 12.3%, over prior quarter and $12.0 billion, or 44.4%, over prior year Deposits increased $2.3 billion, or 5.1%, over prior quarter and $15.7 billion, or 49.1%, over prior year Borrowings increased $330 million over prior quarter from $275 million in overnight borrowings and issuance of $228 million in credit linked notes, offset by $175 million subordinated debt redemption Shareholders’ Equity increased $449 million as a function of net income and common stock issuances, partially offset by dividends Tangible Book Value/Share1 increased $3.17, over prior quarter and $6.94, or 22.5%, over prior year 11 1 2 3 Q4-21 Q3-21 Q4-20 Investments & Cash $8,057 $8,614 $8,177 Loans, HFS 5,635 6,534 - Loans HFI, net 39,075 34,802 27,053 Allowance for Loan Losses (253) (247) (279) Mortgage Servicing Rights 698 605 - Goodwill and Intangibles 635 608 299 Other Assets 2,136 1,859 1,211 Total Assets $55,983 $52,775 $36,461 Deposits $47,612 $45,283 $31,931 Borrowings 2,398 2,068 $570 Other Liabilities 1,010 910 $547 Total Liabilities $51,020 $48,261 $33,048 Shareholders’ Equity $4,963 $4,514 $3,413 Total Liabilities and Equity $55,983 $52,775 $36,461 Tangible Book Value Per Common Share1 $37.84 $34.67 $30.90 1 2 5 Dollars in millions Q4 2021 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 3 4 5 4

 
Five Quarter Loan Growth and Composition 12 $12.0 Billion Year-Over-Year Growth Quarter-over-quarter loan growth of $4.3 billion driven by (in millions): Residential & Consumer $1,838 C&I1 1,773 CRE, Non-OO 683 Construction & Land 79 Offset by decrease in: CRE, OO (99) Total $4,274 Year-over-year loan growth of $12.0 billion driven by (in millions): Residential & Consumer $6,845 C&I1 3,973 Construction & Land 591 CRE, Non-OO 872 Offset by decrease in: CRE, OO (259) Total $12,022 $14.3 $15.1 $14.3 $16.5 $18.3 $2.2 $2.0 $2.0 $2.0 $1.9$5.7 $5.7 $5.7 $5.9 $6.5$2.4 $2.8 $2.9 $2.9 $3.0 $2.5 $3.1 $5.1 $7.5 $9.3 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Residential & Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial Dollars in billions, unless otherwise indicated Total Loans, HFI $27.1 $28.7 $30.0 $34.8 $39.1 Qtr. Change +$1.1 +$1.6 +$1.3 +$4.8 +$4.3 9.2% 9.0% 20.9% 8.0% 52.9% 46.8% 4.9% 16.7% 7.7% 23.9% Highlights 1) Includes Round 1 and Round 2 PPP loans of $412 million as of December 31, 2021. During Q4-21, PPP payoffs of approximately $200 million 21.5% 8.5% 16.8% 5.7% 47.5%

 
$13.5 $17.5 $20.1 $21.1 $21.4 $4.4 $3.9 $4.2 $5.0 $6.9$12.4 $15.3 $15.8 $17.4 $17.3 $1.7 $1.7 $1.8 $1.8 $2.0 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 CDs Savings and MMDA Interest Bearing DDA Non-Interest Bearing DDA Five Quarter Deposit Growth and Composition 13 $15.7 Billion Year-Over-Year Growth Quarter-over-quarter deposit growth of $2.3 billion driven by (in millions): Interest-Bearing DDA $1,970 Non-Interest Bearing DDA 295 CD 226 Offset by decrease in: Savings and MMDA (162) Total $2,329 Year-over-year deposit growth of $15.7 billion driven by (in millions): Non-Interest Bearing DDA $7,890 Savings and MMDA 4,865 Interest-Bearing DDA 2,527 CDs 399 Total $15,681 Dollars in billions, unless otherwise indicated Total Deposits $31.9 $38.4 $41.9 $45.3 $47.6 Qtr. Change +$3.1 +$6.5 +$3.5 +$3.4 +$2.3 5.2% 38.9% 13.8% 42.1% 44.9% 14.5% 36.3% 4.3% Highlights 4.0% 38.5% 11.0% 46.5%

 
$451 $474 $405 $364 $331 1.67% 1.65% 1.35% 1.05% 0.85% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 $2 $4 $4 $12 $12 $115 $114 $96 $78 $72 $107 $163 $138 $175 $216 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Asset Quality 14 • Total Classified Assets of $301 million (54 bps to Total Assets) increased $36 million in Q4 • Non-Performing Loans + OREO of $84 million (15 bps to Total Assets) decreased by $5 million in Q4 • Borrowers remain stable, liquid and supported • Special Mention loans continue to decline and are down over 30% from the cycle peak in September 2020 • Over last 5+ years, less than 1% of Special Mention loans have migrated to loss Special Mention Loans Dollars in millions Classified Assets Special Mention Loans Asset Quality Ratios OREO Non-Performing Loans Classified Accruing Loans $224 $281 $238 $265 SM to Funded Loans 0.61% 0.65% 0.49% 0.50% 0.54% 0.32% 0.27% 0.20% 0.17% 0.15% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Classified Assets to Total Assets Non-Performing Loans + OREO to Total Assets Q4 2021 Highlights $301

 
$5.7 $2.1 $2.3 $3.3 $3.9 ($1.8) ($0.7) ($2.2) ($0.3) ($2.5) $279 $247 $233 $247 $253 $37 $33 $31 $32 $37 $7 $9 $6 $5 $5 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Credit Losses and ACL Ratios 15 • Provision expense of $13.2 million, driven by strong loan growth • Total Loan ACL / Funded Loans decreased 6 bps to 0.74% in Q4 as a result of continued loan growth in low loss segments • Total Loan ACL4 / Funded Loans less loans with third-party first-loss credit linked notes is 0.89% • Total Loan ACL / NPL + Classified Loans is 100% • Net Charge-Offs of $1.4 million, 2 bps, compared to $3.0 million, 4 bps, in Q3 Dollars in millions Allowance for Credit Losses Gross Charge-offs and Recoveries Loan ACL Adequacy Ratios2,3 Total Loan ACL/Non-Performing Loans + Classified Loans Total Loan ACL/Funded Loans Allowance for Loan & Lease Losses Unfunded Loan Commits.1 HTM Securities Gross Charge Offs Recoveries 1.17% 0.97% 0.88% 0.80% 0.74% 142% 101% 113% 110% 100% 0.50% 1.50% 2.50% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4 2021 Highlights 1) Included as a component of other liabilities on the balance sheet. 2) Total Loan ACL includes allowance for unfunded commitments. 3) Ratios include an allowance for credit losses of $7.2 million as of December 31, 2021 related to an $6.4 billion pool of loans covered under 2 separate credit linked notes. 4) This is a non-GAAP ratio, refer to slide 2 for further discussion of Non-GAAP financial measures. Q4-20 Q1-21 Q2-21 Q3-21 Q4-21

 
Capital Accumulation 16 Regulatory Capital Levels • Exceed “well-capitalized” levels and have rebounded from initial impact of the AmeriHome transaction • CET1 at 9.1% Tangible Common Equity / Tangible Assets1 • TCE / TA increased 40 bps from the prior quarter to 7.3% due to common stock issuances under the ATM 2021 Capital Actions • Issued $209 million of common stock (2.3 million shares) to support the AmeriHome transaction • Issued $600 million of subordinated debt • Issued $70 million of common stock (700 thousand shares) under at-the-market (ATM) offering • Issued $242 million aggregate principal amount of senior unsecured credit linked notes (CLN) • Issued $300 million of preferred stock • Redeemed $75 million of subordinated debt • Increased quarterly common stock cash dividend to $0.35 per share • Redeemed $175 million of subordinated debt • Issued $261 million of common stock (2.4 million shares) under ATM offering • Issued $228 million aggregate principal amount of senior CLN Robust Common Capital Levels Regulatory Capital 9.9% 10.3% 9.2% 8.7% 9.1%8.6% 7.9% 7.1% 6.9% 7.3% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 CET1 Ratio TCE/TA1 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures Total RBC RatioTier 1 RatioLeverage Ratio Q1 Q2 Q3 Q4 9.2% 8.8% 7.3% 7.9% 7.8% 10.2% 10.6% 9.4% 9.6% 9.9% 12.5% 12.6% 12.8% 12.6% 12.3% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21

 
Tangible Book Value Growth 17 Tangible Book Value per Share1 • TBVPS increased $3.17 to $37.84 from prior quarter • Increased 9.1% quarter-over-quarter, non-annualized • Increased 22.5% year-over-year • 20.2% CAGR since year end 2015 • TBVPS has increased 3x that of peers over the last 6 years • Quarterly common stock cash dividend of $0.35 per share Long-Term Growth in TBV per Share1 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures 2) MRQ is Q4-21 for WAL and Q3-21 for WAL Peers Note: Peers consist of 30 major exchange traded US banks with total assets between $25B and $150B as of September 30, 2021, excluding target banks of pending acquisitions; S&P Global Market Intelligence. 202% 221% 66% 80% 2015 2016 2017 2018 2019 2020 MRQ WAL WAL with Dividends Added Back Peer Avg Peer Avg with Dividends Added Back 2

 
Management Outlook Balance Sheet Growth Net Interest Income Pre-Provision Net Revenue Capital and Liquidity 18

 
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