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8-K

Western Alliance Bancorporation (WAL)

8-K 2021-10-21 For: 2021-10-21
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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):  October 21, 2021

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
6.25% Subordinated Debentures due 2056 WALA 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 October 21, 2021, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended September 30, 2021 and posted on its website its third 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 Press Release dated October 21, 2021
99.2 Third Quarter 2021 Earnings Conference Call dated October 22, 2021
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: October 21, 2021

Document

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

PHOENIX--(BUSINESS WIRE)--October 21, 2021

THIRD QUARTER 2021 FINANCIAL RESULTS

Net income PPNR1 Net interest margin Book value per <br>common share
236.9 million $317.1 million 3.43% $40.49
34.671, excluding goodwill and intangibles

All values are in US Dollars.

CEO COMMENTARY:
“Western Alliance continued to deliver exceptional balance sheet growth in the third quarter, surpassing the $50 billion asset milestone, while generating record revenues, PPNR1 and earnings,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Our unique national commercial business strategy produced our highest ever quarterly organic loan growth of $4.8 billion (63% annualized), with deposits also up $3.4 billion (32% annualized), driving a 14.3% increase in PPNR1 during the quarter to $317.1 million. Further, our ability to thoughtfully deploy liquidity into earning assets produced record net income of $236.9 million and earnings per share of $2.28 (or $2.30, excluding merger and restructure costs). Asset quality remained stable with nonperforming assets to total assets of 0.17% and annualized net charge-offs to average loans outstanding at a modest 0.04% for the quarter.”
Acquisition of AmeriHome Mortgage Company:
On April 7, 2021, the Company completed its previously announced 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. Pursuant to accounting guidance, acquired assets and liabilities are recorded at estimated fair value as of the acquisition date. The estimated fair value of certain net assets are preliminary and are subject to measurement period adjustments. Based on AmeriHome's closing balance sheet and a $275 million premium, cash consideration was approximately $1.22 billion. LINKED-QUARTER BASIS YEAR-OVER-YEAR
--- ---
FINANCIAL HIGHLIGHTS:

▪Net income of $236.9 million and earnings per share of $2.28, compared to $223.8 million and $2.17, respectively

▪Net revenue of $548.5 million, an increase of 8.3%, or $42.0 million, compared to a decrease in non-interest expenses of (4.5)%, or $(11.0) million

▪Pre-provision net revenue1 of $317.1 million, up $39.7 million from $277.4 million

▪Effective tax rate of 21.7%, compared to 19.0%

▪Net income of $236.9 million and earnings per share of $2.28, up 74.4% and 67.6%, from $135.8 million and $1.36, respectively

▪Net revenue of $548.5 million, an increase of 79.7%, or $243.2 million, compared to an increase in non-interest expenses of 88.4%, or $109.7 million

▪Pre-provision net revenue1 of $317.1 million, up $135.9 million from $181.2 million

▪Effective tax rate of 21.7%, compared to 18.5%

FINANCIAL POSITION RESULTS:

▪HFI loans of $34.8 billion, up $4.8 billion, or 63.1% annualized

▪Total deposits of $45.3 billion, up $3.4 billion, or 31.8% annualized

▪Stockholders' equity of $4.5 billion, up $480 million

▪Increase in HFI loans of $8.8 billion, or 33.9%

▪Increase in total deposits of $16.4 billion, or 57.0%

▪Increase in stockholders' equity of $1.3 billion

LOANS AND ASSET QUALITY:

▪Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.17%, compared to 0.20%

▪Annualized net loan charge-offs to average loans outstanding of 0.04%, compared to approximately 0.00%

▪Nonperforming assets to total assets of 0.17%, compared to 0.47%

▪Annualized net loan charge-offs to average loans outstanding of 0.04%, compared to 0.13%

KEY PERFORMANCE METRICS:

▪Net interest margin of 3.43%, compared to 3.51%

▪Return on average assets and on tangible common equity1 of 1.83% and 26.6%, compared to 1.86% and 28.1%, respectively

▪Tangible common equity ratio1 of 6.9%, compared to 7.1%

▪Tangible book value per share1, net of tax, of $34.67, an increase of 5.5% from $32.86

▪Efficiency ratio1 of 41.5%, compared to 44.5%

▪Net interest margin of 3.43%, compared to 3.71%

▪Return on average assets and on tangible common equity1 of 1.83% and 26.6%, compared to 1.66% and 18.7%, respectively

▪Tangible common equity ratio1 of 6.9%, compared to 8.9%

▪Tangible book value per share1, net of tax, of $34.67, an increase of 19.4% from $29.03

▪Efficiency ratio1 of 41.5%, compared to 39.7%

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

Income Statement

Net interest income was $410.4 million in the third quarter 2021, an increase of $39.9 million from $370.5 million in the second quarter 2021, and an increase of $125.7 million, or 44.2%, compared to the third quarter 2020. Continued HFI loan growth and interest income from AmeriHome's HFS loans drove the increase in net interest income from both the second quarter 2021 and the third quarter 2020.

The Company recorded a provision for credit losses totaling $12.3 million in the third quarter 2021, an increase of $26.8 million from the $14.5 million provision release in the second quarter 2021, compared to a provision for credit losses of $14.6 million in the third quarter 2020. The provision for credit losses during the third quarter 2021 is primarily due to loan growth and coverage of net charge-offs.

The Company’s net interest margin in the third quarter 2021 was 3.43%, a decrease from 3.51% in the second quarter 2021, and a decrease from 3.71% in the third quarter 2020. The decrease in net interest margin from the prior period is largely a result of lower yields on HFI loans, which were partially offset by deployment of excess liquidity into HFI and HFS loans. The decrease in net interest margin from the third quarter 2020 was driven by the lower rate environment, which lowered loan and investment security yields, offset by lower deposit costs.

Non-interest income was $138.1 million for the third quarter 2021, compared to $136.0 million for the second quarter 2021, and $20.6 million for the third quarter 2020. The increase in non-interest income from the second quarter 2021 was driven by an increase in net loan servicing revenue of $23.0 million, partially offset by decreases in net gain on loan origination and sale activities, fair value adjustments on assets measured at fair value, and income from equity investments, totaling $11.0 million, $5.4 million, and $4.3 million, respectively. The increase in non-interest income from the third quarter 2020 is primarily the result of mortgage banking related income from AmeriHome.

Net revenue was $548.5 million for the third quarter 2021, an increase of $42.0 million, or 8.3%, compared to $506.5 million for the second quarter 2021, and an increase of $243.2 million, or 79.7%, compared to $305.3 million for the third quarter 2020. The increase in net revenue from the second quarter 2021 and third quarter 2020 was driven by an increase in loan interest income generated from HFI loan growth and the AmeriHome HFS loans, coupled with an increase in non-interest income from mortgage banking related income.

Non-interest expense of $233.8 million for the third quarter 2021, or $231.4 million adjusted1 to exclude AmeriHome acquisition and restructure related expenses, compared to $244.8 million for the second quarter 2021, or $229.1 million adjusted1, and $124.1 million for the third quarter 2020. The Company’s efficiency ratio1, adjusted to exclude acquisition and restructure related expenses, was 41.5% for the third quarter 2021, compared to 44.5% in the second quarter 2021, and 39.7% for the third quarter 2020. The increase in adjusted non-interest expense1 from the third quarter 2020 is attributable to growth from the AmeriHome acquisition, which increased compensation costs and also introduced additional non-interest expense items, such as net loan servicing and loan acquisition and origination expenses.

Income tax expense was $65.5 million for the third quarter 2021, compared to $52.4 million for the second quarter 2021, and $30.8 million for the third quarter 2020.

Net income was $236.9 million for the third quarter 2021, an increase of $13.1 million from $223.8 million for the second quarter 2021, and an increase of $101.1 million from $135.8 million for the third quarter 2020. Earnings per share was $2.28 for the third quarter 2021, or $2.30 per share after adjusting for acquisition and restructure expenses, compared to $2.17, or $2.29 per share after adjusting for acquisition and restructure expenses, for the second quarter 2021, and $1.36 for the third quarter 2020. As discussed above, the increase in net income and earnings per share for the third 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. For the third quarter 2021, the Company’s PPNR1 was $317.1 million, up $39.7 million from $277.4 million in the second quarter 2021, and up $135.9 million from $181.2 million in the third quarter 2020. The increase in PPNR from the second quarter 2021 and third quarter 2020 was driven by HFI loan growth and the AmeriHome acquisition completed on April 7, 2021.

The Company had 3,061 full-time equivalent employees and 54 offices at September 30, 2021, compared to 3,075 employees and 53 offices at June 30, 2021, and 1,885 employees and 49 offices at September 30, 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 18.

Balance Sheet

Gross HFI loans totaled $34.8 billion at September 30, 2021, an increase of $4.8 billion from $30.0 billion at June 30, 2021, and $8.8 billion from $26.0 billion at September 30, 2020. The increase in HFI loans from the prior quarter was driven by residential real estate and commercial and industrial loans, which increased $2.3 billion and $2.2 billion, respectively. From September 30, 2020, loan growth was also driven by residential real estate and commercial and industrial loans, which increased $5.1 billion and $2.9 billion, respectively. Construction and land development loans and CRE non-owner occupied loans also increased $643 million and $436 million, respectively, partially offset by a decrease in CRE owner occupied loans of $217 million from September 30, 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 September 30, 2021, the allowance for loan losses to funded HFI loans was 0.71%, compared to 0.78% at June 30, 2021, and 1.19% at September 30, 2020. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans was 0.80% at September 30, 2021, compared to 0.88% at June 30, 2021, and 1.37% at September 30, 2020.

Deposits totaled $45.3 billion at September 30, 2021, an increase of $3.4 billion from $41.9 billion at June 30, 2021, and an increase of $16.4 billion from $28.8 billion at September 30, 2020. By deposit type, the increase from the prior quarter is primarily attributable to an increase of $1.6 billion from savings and money market accounts, $953 million from non-interest bearing demand deposits, and $767 million from interest bearing demand deposits. From September 30, 2020, deposits increased across all deposit types, with the largest increases in non-interest bearing demand deposits of $8.0 billion, savings and money market accounts of $6.9 billion, and interest-bearing demand deposits of $1.4 billion. Non-interest bearing deposits were $21.1 billion at September 30, 2021, compared to $20.1 billion at June 30, 2021, and $13.0 billion at September 30, 2020.

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

Sep 30, 2021 Jun 30, 2021 Sep 30, 2020
Non-interest bearing 46.5 % 48.0 % 45.1 %
Savings and money market 38.5 37.7 36.7
Interest-bearing demand 10.9 10.0 12.3
Certificates of deposit 4.0 4.3 5.9

The Company’s ratio of HFI loans to deposits was 76.9% at September 30, 2021, compared to 71.6% at June 30, 2021, and 90.1% at September 30, 2020.

Borrowings were $987 million at September 30, 2021, $595 million at June 30, 2021, and $10 million at September 30, 2020. The increase in borrowings from June 30, 2021 is due to an increase in overnight borrowings of $400 million. The increase in borrowings from September 30, 2020 is due to the assumption of borrowings related to the acquisition of AmeriHome, the issuance of $242 million in credit linked notes during the second quarter 2021, and an increase in overnight borrowings.

Qualifying debt totaled $1.1 billion at September 30, 2021 and June 30, 2021, compared to $619 million at September 30, 2020. The increase in qualifying debt from September 30, 2020 is primarily related to the issuance of $600 million in subordinated debt in June 2021, partially offset by redemption of $75 million in subordinated debt in July 2021.

Stockholders’ equity was $4.5 billion at September 30, 2021, compared to $4.0 billion at June 30, 2021, and $3.2 billion at September 30, 2020. The increase in stockholders' equity from June 30, 2021 is attributable to net income and net proceeds of $294.5 million from the issuance of preferred stock in September 2021, partially offset by dividends to shareholders. A cash dividend of $0.35 per share was paid to shareholders on August 27, 2021, totaling $36.5 million. The increase in stockholders' equity from September 30, 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 September 30, 2021, tangible common equity, net of tax, was 6.9% of tangible assets1 and total capital was 12.6% of risk-weighted assets. The Company’s tangible book value per share1 was $34.67 at September 30, 2021, up 19.4% from September 30, 2020.

Total assets increased 7.6% to $52.8 billion at September 30, 2021, from $49.1 billion at June 30, 2021, and increased 58.3% from $33.3 billion at September 30, 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.

Asset Quality

Provision for credit losses totaled $12.3 million for the third quarter 2021, compared to a recovery of credit provisions of $(14.5) million for the second quarter 2021, and a provision for credit losses of $14.6 million for the third quarter 2020. Net loan charge-offs in the third quarter 2021 were $3.0 million, or 0.04% of average loans (annualized), compared to $0.1 million, or approximately 0.00%, in the second quarter 2021, and $8.2 million, or 0.13%, in the third quarter 2020.

Nonaccrual loans decreased $18.2 million to $78.1 million during the quarter and decreased $68.3 million from September 30, 2020. Loans past due 90 days and still accruing interest were zero at September 30, 2021 and June 30, 2021, compared to $28.1 million at September 30, 2020. Loans past due 30-89 days and still accruing interest totaled $23.6 million at September 30, 2021, an increase from $9.8 million at June 30, 2021, and a decrease from $24.3 million at September 30, 2020.

Repossessed assets totaled $11.5 million at September 30, 2021, an increase of $7.6 million from $3.9 million at June 30, 2021, and $2.9 million from $8.6 million at September 30, 2020. Classified assets totaled $264.9 million at September 30, 2021, an increase of $26.4 million from $238.5 million at June 30, 2021, and a decrease of $60.8 million from $325.7 million at September 30, 2020.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 6.3% at September 30, 2021, compared to 6.4% at June 30, 2021, and 9.9% at September 30, 2020.

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

Segment Highlights

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

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

–Consumer Related segment: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking 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 a gross loan balance of $22.8 billion at September 30, 2021, an increase of $2.2 billion during the quarter, and an increase of $3.2 billion during the last twelve months. Deposits for the Commercial segment totaled $28.4 billion at September 30, 2021, an increase of $2.1 billion during the quarter, and an increase of $8.5 billion during the last twelve months.

Pre-tax income for the Commercial segment was $193.2 million for the three months ended September 30, 2021, a decrease of $15.9 million from the three months ended June 30, 2021, and an increase of $31.9 million from the three months ended September 30, 2020. For the nine months ended September 30, 2021, the Commercial segment reported total pre-tax income of $623.1 million, an increase of $256.8 million compared to the nine months ended September 30, 2020.

The Consumer Related segment reported a gross loan balance of $12.0 billion at September 30, 2021, an increase of $2.6 billion during the quarter, and an increase of $5.6 billion during the last twelve months. Deposits for the Consumer Related segment totaled $15.8 billion, an increase of $909 million during the quarter, and an increase of $7.7 billion during the last twelve months.

Pre-tax income for the Consumer Related segment was $176.0 million for the three months ended September 30, 2021, an increase of $62.4 million from the three months ended June 30, 2021, and an increase of $112.1 million from the three months ended September 30, 2020. For the nine months ended September 30, 2021, the Consumer Related segment reported total pre-tax income of $361.1 million, an increase of $207.8 million compared to the nine months ended September 30, 2020.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2021 financial results at 12:00 p.m. ET on Friday, October 22, 2021. Participants may access the call by dialing 1-833-236-2753 and using the conference ID 5392611 or via live audio webcast using the website link https://event.on24.com/wcc/r/3410143/AC547BBFD4726AA7017B8288064212CD. 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 October 22nd through 11:00 p.m. ET November 22nd by dialing 1-800-585-8367, conference ID: 5392611.

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; our ability to successfully integrate and operate AmeriHome; 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 new S&P Global Market Intelligence listing for 2020 and ranks high on the Forbes “Best Banks in America” list year after year. Its primary subsidiary, Western Alliance Bank, Member FDIC, helps business clients realize their ambitions with teams of experienced bankers who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities. 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. Most recently, the bank added to these capabilities with the acquisition of AmeriHome Mortgage, a leading national business-to-business mortgage platform. 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.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of September 30,
2021 2020 Change %
(in millions)
Total assets $ 52,775.1 $ 33,335.5 58.3 %
Loans held for sale 6,534.3 20.8 NM
Gross HFI loans, net of deferred fees 34,801.9 25,993.2 33.9
Investment securities 7,695.9 4,701.1 63.7
Total deposits 45,282.6 28,843.4 57.0
Qualifying debt 1,064.9 618.8 72.1
Stockholders' equity 4,514.0 3,224.0 40.0
Tangible common equity, net of tax (1) 3,612.9 2,926.7 23.4
Selected Income Statement Data:
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2021 2020 Change % 2021 2020 Change %
(in millions, except per share data) (in millions, except per share data)
Interest income $ 442.8 $ 304.8 45.3 % $ 1,175.4 $ 930.2 26.4 %
Interest expense 32.4 20.1 61.2 77.2 78.1 (1.2)
Net interest income 410.4 284.7 44.2 1,098.2 852.1 28.9
Provision for (recovery of) credit losses 12.3 14.6 (15.8) (34.6) 157.8 NM
Net interest income after provision for credit losses 398.1 270.1 47.4 1,132.8 694.3 63.2
Non-interest income 138.1 20.6 NM 293.8 47.0 NM
Non-interest expense 233.8 124.1 88.4 613.6 359.4 70.7
Income before income taxes 302.4 166.6 81.5 813.0 381.9 NM
Income tax expense 65.5 30.8 NM 159.8 68.9 NM
Net income available to common stockholders $ 236.9 $ 135.8 74.4 $ 653.2 $ 313.0 NM
Diluted earnings per common share $ 2.28 $ 1.36 67.6 $ 6.35 $ 3.11 NM

(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 September 30, For the Nine Months Ended September 30,
2021 2020 Change % 2021 2020 Change %
Diluted earnings per common share $ 2.28 $ 1.36 67.6 % $ 6.35 $ 3.11 NM
Book value per common share 40.49 31.98 26.6
Tangible book value per common share, net of tax (1) 34.67 29.03 19.4
Average common shares outstanding <br>(in millions):
Basic 103.3 99.9 3.4 102.3 100.3 1.9
Diluted 103.9 100.1 3.8 102.9 100.6 2.3
Common shares outstanding 104.2 100.8 3.4 Selected Performance Ratios:
--- --- --- --- --- --- --- --- --- --- --- --- ---
Return on average assets (2) 1.83 % 1.66 % 10.2 % 1.89 % 1.38 % 37.0 %
Return on average tangible common equity (1, 2) 26.6 18.7 42.2 26.3 14.9 76.6
Net interest margin (2) 3.43 3.71 (7.5) 3.44 4.03 (14.6)
Efficiency ratio - tax equivalent basis (1) 41.5 39.7 4.5 42.0 39.1 7.4
Loan to deposit ratio 76.9 90.1 (14.7)
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2) 0.04 % 0.13 % (69.2) 0.02 % 0.06 % (66.7) %
Nonaccrual loans to funded HFI loans 0.22 0.56 (60.7)
Nonaccrual loans and repossessed assets to total assets 0.17 0.47 (63.8)
Allowance for loan losses to funded HFI loans 0.71 1.19 (40.3)
Allowance for loan losses to nonaccrual HFI loans 316 212 49.1 Capital Ratios:
--- --- --- --- --- --- ---
Sep 30, 2021 Jun 30, 2021 Sep 30, 2020
Tangible common equity (1) 6.9 % 7.1 % 8.9 %
Common Equity Tier 1 (3) 8.7 9.2 10.0
Tier 1 Leverage ratio (3) 7.9 7.3 9.3
Tier 1 Capital (3) 9.6 9.4 10.3
Total Capital (3) 12.6 12.8 13.0

(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 September 30, 2021 are preliminary.

NM    Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
(dollars in millions, except per share data)
Interest income:
Loans $ 398.0 $ 276.6 $ 1,050.2 $ 843.1
Investment securities 43.5 27.4 121.0 83.0
Other 1.3 0.8 4.2 4.1
Total interest income 442.8 304.8 1,175.4 930.2
Interest expense:
Deposits 12.3 12.2 34.7 59.7
Qualifying debt 10.8 7.9 23.9 17.9
Borrowings 9.3 — 18.6 0.5
Total interest expense 32.4 20.1 77.2 78.1
Net interest income 410.4 284.7 1,098.2 852.1
Provision for (recovery of) credit losses 12.3 14.6 (34.6) 157.8
Net interest income after provision for credit losses 398.1 270.1 1,132.8 694.3
Non-interest income:
Net gain on loan origination and sale activities 121.0 — 253.0 —
Service charges and fees 7.1 5.9 21.2 17.4
Commercial banking related income 4.6 4.5 12.5 10.7
Income from equity investments 2.5 1.2 16.9 6.3
Net loan servicing revenue 2.2 — (18.6) —
Foreign currency income 1.9 1.8 5.6 4.3
Income from bank owned life insurance 1.0 1.3 2.9 9.0
Fair value gain (loss) adjustments on assets measured at fair value, net (2.2) 5.9 (0.5) (1.0)
Other — — 0.8 0.3
Total non-interest income 138.1 20.6 293.8 47.0
Non-interest expenses:
Salaries and employee benefits 133.5 78.8 346.1 220.5
Loan servicing expenses 15.6 — 37.9 —
Data processing 15.4 8.9 40.3 26.1
Legal, professional, and directors' fees 13.7 10.0 37.8 31.1
Occupancy 12.4 9.4 31.4 25.7
Loan acquisition and origination expenses 9.7 — 20.2 —
Deposit costs 7.3 3.2 20.7 14.0
Insurance 6.2 3.1 15.9 9.5
Loan and repossessed asset expenses 2.5 1.8 7.2 5.3
Intangible amortization 1.9 0.4 4.2 1.2
Business development 1.9 1.0 4.2 4.1
Marketing 0.9 0.8 3.2 2.6
Card expense 0.6 0.5 1.8 1.6
Net (gain) on sales and valuations of repossessed and other assets (1.3) 0.1 (3.1) (1.3)
Acquisition and restructure expenses 2.4 — 18.5 —
Other 11.1 6.1 27.3 19.0
Total non-interest expense 233.8 124.1 613.6 359.4
Income before income taxes 302.4 166.6 813.0 381.9
Income tax expense 65.5 30.8 159.8 68.9
Net income available to common stockholders $ 236.9 $ 135.8 $ 653.2 $ 313.0
Earnings per common share:
Diluted shares 103.9 100.1 102.9 100.6
Diluted earnings per share $ 2.28 $ 1.36 $ 6.35 $ 3.11
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
(in millions, except per share data)
Interest income:
Loans $ 398.0 $ 353.8 $ 298.4 $ 301.2 $ 276.6
Investment securities 43.5 43.5 34.0 29.4 27.4
Other 1.3 1.2 1.7 1.0 0.8
Total interest income 442.8 398.5 334.1 331.6 304.8
Interest expense:
Deposits 12.3 11.6 10.8 10.7 12.2
Qualifying debt 10.8 7.2 5.9 6.0 7.9
Borrowings 9.3 9.2 0.1 0.1 —
Total interest expense 32.4 28.0 16.8 16.8 20.1
Net interest income 410.4 370.5 317.3 314.8 284.7
Provision for (recovery of) credit losses 12.3 (14.5) (32.4) (34.2) 14.6
Net interest income after provision for credit losses 398.1 385.0 349.7 349.0 270.1
Non-interest income:
Net gain on loan origination and sale activities 121.0 132.0 — — —
Service charges and fees 7.1 7.4 6.7 5.9 5.9
Commercial banking related income 4.6 4.5 3.4 4.0 4.5
Income from equity investments 2.5 6.8 7.6 6.4 1.2
Net loan servicing revenue 2.2 (20.8) — — —
Foreign currency income 1.9 1.5 2.2 1.3 1.8
Income from bank owned life insurance 1.0 0.9 1.0 1.2 1.3
Fair value (loss) gain adjustments on assets measured at fair value, net (2.2) 3.2 (1.5) 4.8 5.9
Other — 0.5 0.3 0.2 —
Total non-interest income 138.1 136.0 19.7 23.8 20.6
Non-interest expenses:
Salaries and employee benefits 133.5 128.9 83.7 83.1 78.8
Loan servicing expenses 15.6 22.3 — — —
Data processing 15.4 15.0 9.9 9.6 8.9
Legal, professional, and directors' fees 13.7 14.0 10.1 11.1 10.0
Occupancy 12.4 10.4 8.6 8.4 9.4
Loan acquisition and origination expenses 9.7 10.5 — — —
Deposit costs 7.3 7.1 6.3 4.5 3.2
Insurance 6.2 5.5 4.2 3.8 3.1
Loan and repossessed asset expenses 2.5 2.5 2.2 1.8 1.8
Intangible amortization 1.9 1.8 0.5 0.4 0.4
Business development 1.9 1.5 0.8 1.4 1.0
Marketing 0.9 1.7 0.6 1.5 0.8
Card expense 0.6 0.6 0.6 0.6 0.5
Net (gain) loss on sales and valuations of repossessed and other assets (1.3) (1.5) (0.3) (0.2) 0.1
Acquisition and restructure expenses 2.4 15.7 0.4 — —
Other 11.1 8.8 7.4 6.2 6.1
Total non-interest expense 233.8 244.8 135.0 132.2 124.1
Income before income taxes 302.4 276.2 234.4 240.6 166.6
Income tax expense 65.5 52.4 41.9 47.0 30.8
Net income available to common stockholders $ 236.9 $ 223.8 $ 192.5 $ 193.6 $ 135.8
Earnings per common share:
Diluted shares 103.9 103.4 101.4 100.4 100.1
Diluted earnings per share $ 2.28 $ 2.17 $ 1.90 $ 1.93 $ 1.36
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
(in millions)
Assets:
Cash and due from banks $ 917.9 $ 3,395.8 $ 5,346.5 $ 2,671.7 $ 1,418.7
Investment securities 7,695.9 7,845.0 7,888.8 5,504.8 4,701.1
Loans held for sale 6,534.3 4,465.2 — — 20.8
Loans held for investment:
Commercial and industrial 16,524.7 14,284.5 15,070.7 14,324.4 13,648.6
Commercial real estate - non-owner occupied 5,843.7 5,695.6 5,681.4 5,654.7 5,407.4
Commercial real estate - owner occupied 1,996.6 2,028.1 2,052.0 2,156.8 2,213.5
Construction and land development 2,943.3 2,856.9 2,767.9 2,431.3 2,300.5
Residential real estate 7,452.8 5,120.7 3,109.1 2,434.6 2,387.1
Consumer 40.8 40.6 29.9 51.2 36.1
Gross loans, net of deferred fees 34,801.9 30,026.4 28,711.0 27,053.0 25,993.2
Allowance for loan losses (246.9) (232.9) (247.1) (278.9) (310.5)
Loans, net 34,555.0 29,793.5 28,463.9 26,774.1 25,682.7
Mortgage servicing rights 604.8 726.2 — — —
Premises and equipment, net 161.2 150.2 138.4 134.1 128.3
Operating lease right-of-use asset 106.0 94.9 77.0 72.5 71.4
Other assets acquired through foreclosure, net 11.5 3.9 4.2 1.4 8.6
Bank owned life insurance 179.2 178.2 177.3 176.3 175.5
Goodwill and other intangibles, net 608.4 610.7 298.0 298.5 299.0
Other assets 1,400.9 1,805.4 1,002.9 827.6 829.4
Total assets $ 52,775.1 $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits $ 21,058.2 $ 20,105.6 $ 17,542.8 $ 13,463.3 $ 13,013.0
Interest bearing:
Demand 4,954.3 4,187.7 3,893.4 4,396.4 3,554.6
Savings and money market 17,440.1 15,810.3 15,276.0 12,413.4 10,574.9
Certificates of deposit 1,830.0 1,817.4 1,680.9 1,657.4 1,700.9
Total deposits 45,282.6 41,921.0 38,393.1 31,930.5 28,843.4
Customer repurchase agreements 16.1 20.2 15.9 16.0 19.7
Total customer funds 45,298.7 41,941.2 38,409.0 31,946.5 28,863.1
Borrowings 987.4 595.2 5.0 5.0 10.0
Qualifying debt 1,064.9 1,140.0 543.7 548.7 618.8
Operating lease liability 115.0 102.4 84.6 79.9 78.6
Accrued interest payable and other liabilities 795.1 1,255.7 642.0 467.4 541.0
Total liabilities 48,261.1 45,034.5 39,684.3 33,047.5 30,111.5
Stockholders' Equity:
Preferred stock 294.5 — — — —
Common stock and additional paid-in capital 1,609.9 1,603.4 1,524.2 1,319.8 1,312.4
Retained earnings 2,567.0 2,366.6 2,168.6 2,001.4 1,833.0
Accumulated other comprehensive income 42.6 64.5 19.9 92.3 78.6
Total stockholders' equity 4,514.0 4,034.5 3,712.7 3,413.5 3,224.0
Total liabilities and stockholders' equity $ 52,775.1 $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
(in millions)
Allowance for loan losses
Balance, beginning of period $ 232.9 $ 247.1 $ 278.9 $ 310.5 $ 310.5
Provision for (recovery of) credit losses (1) 17.0 (14.1) (30.4) (27.7) 8.2
Recoveries of loans previously charged-off:
Commercial and industrial 0.1 0.4 0.5 1.5 0.2
Commercial real estate - non-owner occupied — 1.7 0.2 0.1 —
Commercial real estate - owner occupied 0.1 — — 0.1 —
Construction and land development 0.1 — — — —
Residential real estate — 0.1 — 0.1 0.4
Consumer — — — — —
Total recoveries 0.3 2.2 0.7 1.8 0.6
Loans charged-off:
Commercial and industrial 3.3 2.3 0.1 5.6 7.1
Commercial real estate - non-owner occupied — — 2.0 — 1.3
Commercial real estate - owner occupied — — — 0.1 0.1
Construction and land development — — — — —
Residential real estate — — — — 0.3
Consumer — — — — —
Total loans charged-off 3.3 2.3 2.1 5.7 8.8
Net loan charge-offs 3.0 0.1 1.4 3.9 8.2
Balance, end of period $ 246.9 $ 232.9 $ 247.1 $ 278.9 $ 310.5
Allowance for unfunded loan commitments
Balance, beginning of period $ 31.3 $ 32.6 $ 37.0 $ 44.4 $ 36.3
Provision for (recovery of) credit losses (1) 0.8 (1.3) (4.4) (7.4) 8.1
Balance, end of period (2) $ 32.1 $ 31.3 $ 32.6 $ 37.0 $ 44.4
Components of the allowance for credit losses on loans
Allowance for loan losses $ 246.9 $ 232.9 $ 247.1 $ 278.9 $ 310.5
Allowance for unfunded loan commitments 32.1 31.3 32.6 37.0 44.4
Total allowance for credit losses on loans $ 279.0 $ 264.2 $ 279.7 $ 315.9 $ 354.9
Net charge-offs to average loans - annualized 0.04 % 0.00 % 0.02 % 0.06 % 0.13 %
Allowance for loan losses to funded HFI loans 0.71 % 0.78 % 0.86 % 1.03 % 1.19 %
Allowance for credit losses to funded HFI loans 0.80 0.88 0.97 1.17 1.37
Allowance for loan losses to nonaccrual HFI loans 316 242 218 242 212
Allowance for credit losses to nonaccrual HFI loans 357 274 246 274 242

(1)    The above tables reflect the provision for credit losses on funded and unfunded loans. Recovery of credit losses on investment securities totaled $(1.5) million, resulting in an ending allowance for credit losses on investment securities of $4.5 million.

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

Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
(in millions)
Nonaccrual loans $ 78.1 $ 96.3 $ 113.6 $ 115.2 $ 146.5
Nonaccrual loans to funded HFI loans 0.22 % 0.32 % 0.40 % 0.43 % 0.56 %
Repossessed assets $ 11.5 $ 3.9 $ 4.2 $ 1.4 $ 8.6
Nonaccrual loans and repossessed assets to total assets 0.17 % 0.20 % 0.27 % 0.32 % 0.47 %
Loans past due 90 days, still accruing $ — $ — $ — $ — $ 28.1
Loans past due 90 days and still accruing to funded HFI loans — % — % — % — % 0.11 %
Loans past due 30 to 89 days, still accruing $ 23.6 $ 9.8 $ 7.3 $ 11.2 $ 24.3
Loans past due 30 to 89 days, still accruing to funded HFI loans 0.07 % 0.03 % 0.03 % 0.04 % 0.09 %
Special mention loans $ 364.5 $ 404.8 $ 474.2 $ 451.1 $ 476.8
Special mention loans to funded HFI loans 1.05 % 1.35 % 1.65 % 1.67 % 1.83 %
Classified loans on accrual $ 175.3 $ 138.2 $ 163.1 $ 107.0 $ 170.5
Classified loans on accrual to funded HFI loans 0.50 % 0.46 % 0.57 % 0.40 % 0.66 %
Classified assets $ 264.9 $ 238.5 $ 280.9 $ 223.7 $ 325.7
Classified assets to total assets 0.50 % 0.49 % 0.65 % 0.61 % 0.98 %
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- --- --- ---
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
September 30, 2021 June 30, 2021
Average Balance Interest Average Yield / <br>Cost Average Balance Interest Average Yield /<br>Cost
( in millions) ( in millions)
Interest earning assets
Loans held for sale $ 61.3 3.35 % $ 42.7 3.21 %
Loans held for investment:
Commercial and industrial 14,943.0 156.1 4.23 13,897.5 148.2 4.37
CRE - non-owner occupied 5,754.5 68.5 4.73 5,698.0 67.8 4.78
CRE - owner occupied 2,030.5 25.1 5.00 2,024.9 24.1 4.88
Construction and land development 2,862.7 40.6 5.63 2,791.7 39.9 5.73
Residential real estate 5,906.7 46.0 3.09 3,748.0 30.7 3.29
Consumer 43.6 0.4 4.18 34.1 0.4 4.52
Total HFI loans (1), (2), (3) 31,541.0 336.7 4.28 28,194.2 311.1 4.48
Securities:
Securities - taxable 5,521.4 25.6 1.84 5,629.7 26.0 1.85
Securities - tax-exempt 2,223.3 17.9 4.00 2,165.8 17.5 4.07
Total securities (1) 7,744.7 43.5 2.46 7,795.5 43.5 2.47
Cash and other 1,882.9 1.3 0.27 1,911.3 1.2 0.25
Total interest earning assets 48,422.8 442.8 3.70 43,248.3 398.5 3.77
Non-interest earning assets
Cash and due from banks 291.1 457.7
Allowance for credit losses (242.1) (257.3)
Bank owned life insurance 178.6 177.6
Other assets 2,683.7 4,518.4
Total assets
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts $ 1.4 0.12 % $ 1.5 0.14 %
Savings and money market 16,833.0 8.9 0.21 15,168.1 8.0 0.21
Certificates of deposit 1,902.2 2.0 0.41 1,736.3 2.1 0.49
Total interest-bearing deposits 23,521.7 12.3 0.21 21,274.5 11.6 0.22
Short-term borrowings 417.9 1.1 1.07 1,505.7 4.5 1.21
Long-term debt 557.9 8.2 5.79 353.1 4.7 5.30
Qualifying debt 1,076.5 10.8 3.98 701.2 7.2 4.12
Total interest-bearing liabilities 25,574.0 32.4 0.50 23,834.5 28.0 0.47
Interest cost of funding earning assets 0.27 0.26
Non-interest-bearing liabilities
Non-interest-bearing demand deposits 20,731.6 18,384.8
Other liabilities 855.3 2,140.4
Stockholders’ equity 4,173.2 3,785.0
Total liabilities and stockholders' equity
Net interest income and margin (4) $ 410.4 3.43 % $ 370.5 3.51 %

All values are in US Dollars.

(1)     Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.5 million for the three months ended September 30, 2021 and June 30, 2021.

(2)    Included in the yield computation are net loan fees of $30.4 million and $32.6 million for the three months ended September 30, 2021 and June 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.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
September 30, 2021 September 30, 2020
Average Balance Interest Average Yield / <br>Cost Average Balance Interest Average Yield /<br>Cost
( in millions) ( in millions)
Interest earning assets
Loans held for sale $ 61.3 3.35 % $ — — %
Loans held for investment:
Commercial and industrial 14,943.0 156.1 4.23 12,687.9 130.0 4.17
CRE - non-owner-occupied 5,754.5 68.5 4.73 5,393.1 63.8 4.72
CRE - owner-occupied 2,030.5 25.1 5.00 2,232.7 26.6 4.85
Construction and land development 2,862.7 40.6 5.63 2,209.3 32.3 5.83
Residential real estate 5,906.7 46.0 3.09 2,396.0 23.4 3.88
Consumer 43.6 0.4 4.18 38.5 0.5 4.88
Total HFI loans (1), (2), (3) 31,541.0 336.7 4.28 24,957.5 276.6 4.47
Securities:
Securities - taxable 5,521.4 25.6 1.84 2,811.6 14.8 2.09
Securities - tax-exempt 2,223.3 17.9 4.00 1,556.4 12.6 4.07
Total securities (1) 7,744.7 43.5 2.46 4,368.0 27.4 2.79
Other 1,882.9 1.3 0.27 1,926.4 0.8 0.17
Total interest earning assets 48,422.8 442.8 3.70 31,272.2 304.8 3.97
Non-interest earning assets
Cash and due from banks 291.1 163.8
Allowance for credit losses (242.1) (325.0)
Bank owned life insurance 178.6 175.0
Other assets 2,683.7 1,237.4
Total assets
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts $ 1.4 0.12 % $ 1.4 0.16 %
Savings and money market accounts 16,833.0 8.9 0.21 10,170.1 5.7 0.22
Certificates of deposit 1,902.2 2.0 0.41 1,845.5 5.1 1.10
Total interest-bearing deposits 23,521.7 12.3 0.21 15,651.9 12.2 0.31
Short-term borrowings 417.9 1.1 1.07 36.0 — 0.20
Long-term debt 557.9 8.2 5.79 — — —
Qualifying debt 1,076.5 10.8 3.98 616.2 7.9 5.08
Total interest-bearing liabilities 25,574.0 32.4 0.50 16,304.1 20.1 0.49
Interest cost of funding earning assets 0.27 0.26
Non-interest-bearing liabilities
Non-interest-bearing demand deposits 20,731.6 12,422.2
Other liabilities 855.3 617.0
Stockholders’ equity 4,173.2 3,180.1
Total liabilities and stockholders' equity
Net interest income and margin (4) $ 410.4 3.43 % $ 284.7 3.71 %

All values are in US Dollars.

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.5 million and $7.2 million for the three months ended September 30, 2021 and 2020, respectively.

(2)    Included in the yield computation are net loan fees of $30.4 million and $18.2 million for the three months ended September 30, 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.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Nine Months Ended
September 30, 2021 September 30, 2020
Average Balance Interest Average Yield / <br>Cost Average Balance Interest Average Yield /<br>Cost
( in millions) ( in millions)
Interest earning assets
Loans held for sale $ 104.1 3.29 % $ 0.3 2.04 %
Loans held for investment:
Commercial and industrial 14,267.6 455.3 4.36 11,556.5 396.6 4.69
CRE - non-owner occupied 5,701.1 201.3 4.73 5,325.6 198.3 4.99
CRE - owner occupied 2,049.7 73.5 4.91 2,262.4 83.4 5.02
Construction and land development 2,714.5 116.1 5.72 2,115.0 95.5 6.05
Residential real estate 4,066.6 98.6 3.24 2,294.9 67.1 3.91
Consumer 37.4 1.3 4.65 49.2 1.9 5.22
Total HFI loans (1), (2), (3) 28,836.9 946.1 4.44 23,603.6 842.8 4.83
Securities:
Securities - taxable 5,231.1 70.2 1.79 2,826.0 48.3 2.28
Securities - tax-exempt 2,124.2 50.8 4.02 1,376.6 34.7 4.25
Total securities (1) 7,355.3 121.0 2.44 4,202.6 83.0 2.93
Other 3,204.8 4.2 0.17 1,136.2 4.1 0.49
Total interest earning assets 43,631.6 1,175.4 3.68 28,963.7 930.2 4.39
Non-interest earning assets
Cash and due from banks 306.2 173.9
Allowance for credit losses (262.7) (263.2)
Bank owned life insurance 177.6 178.7
Other assets 2,392.4 1,206.1
Total assets
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts $ 4.2 0.13 % $ 7.5 0.29 %
Savings and money market accounts 15,342.3 24.0 0.21 9,546.3 28.9 0.40
Certificates of deposit 1,774.0 6.5 0.49 2,113.0 23.3 1.47
Total interest-bearing deposits 21,473.5 34.7 0.22 15,070.2 59.7 0.53
Short-term borrowings 663.6 5.8 1.16 150.1 0.5 0.51
Long-term debt 308.6 12.8 5.55 — — —
Qualifying debt 776.7 23.9 4.12 500.5 17.9 4.76
Total interest-bearing liabilities 23,222.4 77.2 0.44 15,720.8 78.1 0.66
Interest cost of funding earning assets 0.24 0.35
Non-interest-bearing liabilities
Non-interest-bearing demand deposits 18,380.5 10,813.2
Other liabilities 811.9 622.9
Stockholders’ equity 3,830.3 3,102.3
Total liabilities and stockholders' equity
Net interest income and margin (4) $ 1,098.2 3.44 % $ 852.1 4.03 %

All values are in US Dollars.

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $24.9 million and $20.6 million for the nine months ended September 30, 2021 and 2020, respectively.

(2)    Included in the yield computation are net loan fees of $95.9 million and $61.5 million for the nine months ended September 30, 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.

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated Company Commercial Consumer Related Corporate & Other
At September 30, 2021: (dollars in millions)
Assets:
Cash, cash equivalents, and investment securities $ 8,613.8 $ 11.9 $ 70.8 $ 8,531.1
Loans held for sale 6,534.3 — 6,534.3 —
Loans, net of deferred loan fees and costs 34,801.9 22,823.9 11,978.0 —
Less: allowance for credit losses (246.9) (227.8) (19.1) —
Total loans 34,555.0 22,596.1 11,958.9 —
Other assets acquired through foreclosure, net 11.5 11.5 — —
Goodwill and other intangible assets, net 608.4 295.0 313.4 —
Other assets 2,452.1 249.5 1,086.0 1,116.6
Total assets $ 52,775.1 $ 23,164.0 $ 19,963.4 $ 9,647.7
Liabilities:
Deposits $ 45,282.6 $ 28,409.9 $ 15,751.2 $ 1,121.5
Borrowings and qualifying debt 2,052.3 — 348.1 1,704.2
Other liabilities 926.2 255.9 148.1 522.2
Total liabilities 48,261.1 28,665.8 16,247.4 3,347.9
Allocated equity: 4,514.0 2,369.2 1,483.4 661.4
Total liabilities and stockholders' equity $ 52,775.1 $ 31,035.0 $ 17,730.8 $ 4,009.3
Excess funds provided (used) — 7,871.0 (2,232.6) (5,638.4)
No. of offices 54 46 7 1
No. of full-time equivalent employees 3,061 590 1,186 1,285
Income Statement:
Three Months Ended September 30, 2021: (in millions)
Net interest income $ 410.4 $ 304.4 $ 170.3 $ (64.3)
Provision for (recovery of) credit losses 12.3 19.3 (5.5) (1.5)
Net interest income (expense) after provision for credit losses 398.1 285.1 175.8 (62.8)
Non-interest income 138.1 15.1 123.8 (0.8)
Non-interest expense 233.8 107.0 123.6 3.2
Income (loss) before income taxes 302.4 193.2 176.0 (66.8)
Income tax expense (benefit) 65.5 46.5 42.6 (23.6)
Net income (loss) available to common stockholders $ 236.9 $ 146.7 $ 133.4 $ (43.2)
Nine Months Ended September 30, 2021: (in millions)
Net interest income $ 1,098.2 $ 848.8 $ 417.8 $ (168.4)
(Recovery of) provision for credit losses (34.6) (35.5) 3.4 (2.5)
Net interest income (expense) after provision for credit losses 1,132.8 884.3 414.4 (165.9)
Non-interest income 293.8 48.2 241.1 4.5
Non-interest expense 613.6 309.4 294.4 9.8
Income (loss) before income taxes 813.0 623.1 361.1 (171.2)
Income tax expense (benefit) 159.8 149.8 87.5 (77.5)
Net income (loss) available to common stockholders $ 653.2 $ 473.3 $ 273.6 $ (93.7)
Western Alliance Bancorporation and Subsidiaries
--- --- --- --- --- --- --- --- ---
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated Company Commercial Consumer Related Corporate
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 loan fees and costs 27,053.0 20,245.8 6,798.2 9.0
Less: allowance for loan losses (278.9) (263.4) (15.4) (0.1)
Total loans 26,774.1 19,982.4 6,782.8 8.9
Other assets acquired through foreclosure, net 1.4 1.4 — —
Goodwill and other intangible assets, net 298.5 296.1 2.4 —
Other assets 1,210.5 257.0 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 debt 553.7 — — 553.7
Other liabilities 563.3 170.4 3.3 389.6
Total liabilities 33,047.5 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 offices 49 45 3 1
No. of full-time equivalent employees 1,915 581 156 1,178
Income Statement:
Three Months Ended September 30, 2020: (in millions)
Net interest income $ 284.7 $ 245.4 $ 80.8 $ (41.5)
Provision for (recovery of) credit losses 14.6 20.1 (3.7) (1.8)
Net interest income (expense) after provision for credit losses 270.1 225.3 84.5 (39.7)
Non-interest income 20.6 13.3 0.6 6.7
Non-interest expense 124.1 77.3 21.2 25.6
Income (loss) before income taxes 166.6 161.3 63.9 (58.6)
Income tax expense (benefit) 30.8 38.9 15.2 (23.3)
Net income (loss) $ 135.8 $ 122.4 $ 48.7 $ (35.3)
Nine Months Ended September 30, 2020: (in millions)
Net interest income $ 852.1 $ 728.8 $ 208.9 $ (85.6)
Provision for credit losses 157.8 165.9 (11.2) 3.1
Net interest income (expense) after provision for credit losses 694.3 562.9 220.1 (88.7)
Non-interest income 47.0 34.3 1.4 11.3
Non-interest expense 359.4 230.9 68.2 60.3
Income (loss) before income taxes 381.9 366.3 153.3 (137.7)
Income tax expense (benefit) 68.9 87.8 36.3 (55.2)
Net income (loss) $ 313.0 $ 278.5 $ 117.0 $ (82.5)
Western Alliance Bancorporation and Subsidiaries
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Reconciliation of Non-GAAP Financial Measures
Unaudited Pre-Provision Net Revenue by Quarter:
--- --- --- --- --- --- --- --- --- --- ---
Three Months Ended
9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
(in millions)
Net interest income $ 410.4 $ 370.5 $ 317.3 $ 314.8 $ 284.7
Total non-interest income 138.1 136.0 19.7 23.8 20.6
Net revenue $ 548.5 $ 506.5 $ 337.0 $ 338.6 $ 305.3
Total non-interest expense 233.8 244.8 135.0 132.2 124.1
Less: Acquisition and restructure expenses 2.4 15.7 0.4 — —
Total non-interest expense, adjusted $ 231.4 $ 229.1 $ 134.6 $ 132.2 $ 124.1
Pre-provision net revenue (1) $ 317.1 $ 277.4 $ 202.4 $ 206.4 $ 181.2
Less:
Acquisition and restructure expenses 2.4 15.7 0.4 — —
Provision for (recovery of) credit losses 12.3 (14.5) (32.4) (34.2) 14.6
Income tax expense 65.5 52.4 41.9 47.0 30.8
Net income $ 236.9 $ 223.8 $ 192.5 $ 193.6 $ 135.8 Efficiency Ratio by Quarter:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Total non-interest expense, adjusted $ 231.4 $ 229.1 $ 134.6 $ 132.2 $ 124.1
Divided by:
Total net interest income 410.4 370.5 317.3 314.8 284.7
Plus:
Tax equivalent interest adjustment 8.5 8.5 8.0 7.7 7.2
Total non-interest income 138.1 136.0 19.7 23.8 20.6
$ 557.0 $ 515.0 $ 345.0 $ 346.3 $ 312.5
Efficiency ratio - tax equivalent basis (2) 41.5 % 44.5 % 39.0 % 38.2 % 39.7 %
Tangible Common Equity:
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020
(dollars and shares in millions)
Total stockholders' equity $ 4,514.0 $ 4,034.5 $ 3,712.7 $ 3,413.5 $ 3,224.0
Less:
Goodwill and intangible assets 608.4 610.7 298.0 298.5 299.0
Preferred stock 294.5 — — — —
Total tangible common equity 3,611.1 3,423.8 3,414.7 3,115.0 2,925.0
Plus: deferred tax - attributed to intangible assets 1.8 1.8 1.4 1.6 1.7
Total tangible common equity, net of tax $ 3,612.9 $ 3,425.6 $ 3,416.1 $ 3,116.6 $ 2,926.7
Total assets $ 52,775.1 $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5
Less: goodwill and intangible assets, net 608.4 610.7 298.0 298.5 299.0
Tangible assets 52,166.7 48,458.3 43,099.0 36,162.5 33,036.5
Plus: deferred tax - attributed to intangible assets 1.8 1.8 1.4 1.6 1.7
Total tangible assets, net of tax $ 52,168.5 $ 48,460.1 $ 43,100.4 $ 36,164.1 $ 33,038.2
Tangible common equity ratio (3) 6.9 % 7.1 % 7.9 % 8.6 % 8.9 %
Common shares outstanding 104.2 104.2 103.4 100.8 100.8
Tangible book value per share, net of tax (3) $ 34.67 $ 32.86 $ 33.02 $ 30.90 $ 29.03
Non-GAAP Financial Measures Footnotes
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(1) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2) We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3) We believe this non-GAAP metric provides an important metric with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

CONTACT:

Western Alliance Bancorporation

Dale Gibbons, 602-952-5476

19

walq32021earningspresent

EARNINGS CALL 3rd Quarter 2021 OCTOBER 22, 2021

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; our ability to successfully integrate and operate AmeriHome; 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 September 30, 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

3rd Quarter 2021 | Financial Highlights Earnings & Profitability Q3-21 Q2-21 Q3-20 Net Income $236.9 $223.8 $135.8 Net Revenue $548.5 $506.5 $305.3 Pre Provision Net Revenue1 $317.1 $277.4 $181.2 EPS – Adjusted1 $2.30 $2.29 $1.36 Net Interest Margin 3.43% 3.51% 3.71% Efficiency Ratio1 41.5% 44.5% 39.7% ROAA 1.83% 1.86% 1.66% ROTCE1 26.6% 28.1% 18.7% Balance Sheet & Capital Total Loans $34,802 $30,026 $25,993 Total Deposits $45,283 $41,921 $28,843 CET1 Ratio 8.7% 9.2% 10.0% TCE Ratio1 6.9% 7.1% 8.9% Tangible Book Value per Share1 $34.67 $32.86 $29.03 Asset Quality Provision for (Recovery of) Credit losses $12.3 $(14.5) $14.6 Net Charge-Offs $3.0 $0.1 $8.2 Net Charge-Offs/Avg. Loans 0.04% 0.00% 0.13% Total Loan ACL/Funded Loans 0.80% 0.88% 1.37% NPAs2/Total Assets 0.17% 0.20% 0.47% Net Income $236.9 million EPS $2.28 EPS, Adjusted1 $2.30 PPNR1 Growth Q3: $39.7 million 75% YoY ROTCE1 26.6% Loan Growth Q3: $4.8 billion 34% YoY Deposit Growth Q3: $3.4 billion 57% YoY Tangible Book Value PER SHARE1 $34.67 19% YoY NPAs2/ Total Assets 0.17% 3 Dollars in millions, except EPS 1)Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses. Refer to slide 2 for further discussion of Non-GAAP financial measures. 2)Nonperforming assets includes nonaccrual loans and repossessed assets. Highlights

Quarterly Income Statement Net Interest Income increased $39.9 million, primarily from interest income on loan growth and Loans HFS, partially offset by increased interest expense from Q2-21 Subordinated Debt and Credit Linked Note issuances Non-Interest Income increase driven by $12 million rise in Mortgage Banking Related Income • $19.1 billion loan production in Q3 (56.1% purchase / 43.9% refinance), down 6.0% compared to Q2 • Gain on Sale margin of 51bps in Q3, compared to 64bps in Q2 • $47.2 billion in servicing portfolio UPB Salaries and Employee Benefits increased $4.6 million due to one full quarter with AMH employees and an increase in incentive compensation Provision for Credit Losses of $12.3 million primarily due to loan growth Income Tax, Adjusted1 of $66 million as growth in taxable income is outpacing growth in tax exempt income AmeriHome contributed $0.58 to EPS, compared to $0.39 in Q2 4 1 2 3 Dollars in millions, except EPS Q3 2021 Highlights 1)Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses. Refer to slide 2 for further discussion of Non-GAAP financial measures. 5 4 Q3-21 Q2-21 Q3-20 Net Interest Income $410.4 $370.5 $284.7 Mortgage Banking Related Activity 123.2 111.2 - Other 14.9 24.8 20.6 Non-Interest Income $138.1 $136.0 $20.6 Net Revenue $548.5 $506.5 $305.3 Salaries and Employee Benefits (133.5) (128.9) (78.8) Deposit Costs (7.3) (7.1) (3.2) Other (90.6) (93.1) (42.1) Non-Interest Expense, Adjusted1 $ (231.4) $ (229.1) $ (124.1) Pre-Provision Net Revenue1 $317.1 $277.4 $181.2 (Provision for) Recovery of Credit Losses (12.3) 14.5 (14.6) Pre-Tax Income, Adjusted1 $304.8 $291.9 $166.6 Income Tax, Adjusted1 (66.0) (55.4) (30.8) Net Income before Merger/Restructure Exp.1 $238.8 $236.5 $135.8 Merger/Restructure Expense, Net of Tax (1.9) (12.7) 0.0 Net Income $236.9 $223.8 $135.8 Diluted Shares 103.9 103.4 100.1 Earnings Per Share $2.28 $2.17 $1.36 Merger/Restructure Expense per Share 0.02 0.12 0.00 Earnings Per Share - Adjusted1 $2.30 $2.29 $1.36 1 3 5 4 2 66

Total Investments and Yield Interest Bearing Deposits and Cost Total Loans and Yield Deposits, Borrowings & Cost of Liability Funding Net Interest Drivers 5 • Loan yields decreased 20bps following continued mix shift into residential loans and slight reduction in non-CRE loan yields • Yield on PPP loans of 3.88%, increased from 3.63% in Q2 • Yield on Loans Held for Sale of 3.35%, increased from 3.21% in Q2 • Cost of interest-bearing deposits decreased 1bps, however, total cost of funds increased 1bps to 0.28% due to subordinated debt and CLN issuances during Q2-21 $15.8 $18.5 $20.9 $21.8 $24.2 $13.0 $13.4 $17.5 $20.1 $21.1 0.28% 0.22% 0.19% 0.27% 0.28% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 $15.8 $18.5 $20.9 $21.8 $24.2 0.31% 0.25% 0.22% 0.22% 0.21% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 $4.7 $5.5 $7.9 $7.8 $7.7 2.79% 2.61% 2.37% 2.47% 2.46% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Non-Interest Bearing Deposits Total Borrowings Dollars in billions, unless otherwise indicated Q3 2021 Highlights $26.0 $27.1 $28.7 $30.0 $34.8 $6.5 4.47% 4.67% 4.59% 4.48% 4.28% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Loans Loans, HFS $4.5

$284.7 $314.8 $317.3 $370.5 $410.4 3.71% 3.84% 3.37% 3.51% 3.43% 3.79% 3.80% 3.29% 3.51% 3.40% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Net Interest Income 6 • Net Interest Income increased $39.9 million, or 10.8%, over prior quarter primarily due to growth in both Loans and Loans Held for Sale • Average Earning Assets grew $5.2bn or 12% • NIM decreased 8bps, driven by lower Loan yields, partially offset by deployment of excess liquidity into Loans and Loans HFS • Cash / avg. earning assets decreased to 3.9%, compared to 4.4% in Q2 • Avg. securities + cash / avg. earnings assets decreased to 20%, compared to 22% in Q2 • Loans + Loans HFS / avg. earning assets increased to 80%, up from 77% in Q2 • Net PPP loan fees of $5.4 million recorded in Q3 • $7.9 million of deferred loan fees remain to be recognized Net Interest Income, NIM, and Average Earning Assets Average Earning Assets & Average Yield $48,423$31,272 $33,408 $39,099 $43,248 Net Interest Income Net Interest Margin NIM ex. PPP Avg. Int. Earning Assets Q3 2021 Highlights Dollars in millions $25.0 $26.0 $26.7 $28.2 $31.5 $5.3 $7.3 $4.4 $5.0 $6.5 $7.8 $7.7 $1.9 $2.4 $5.9 $1.9 $1.9 3.97% 4.04% 3.55% 3.77% 3.70% $31.3 $33.4 $39.1 $43.2 $48.4 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 65% 16% 15% 4% 65% 13% 18% 4% Dollars in billions Cash & Other Securities Loans Held for Sale Loans Average Yield 80% 14% 6%

Expenses and Efficiency1 7 • Efficiency ratio1 decreased 300bps to 41.5% compared to the prior quarter and increased 180bps 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 42.1% Non-Interest Expenses and Efficiency Ratio Dollars in millions $124.1 $132.2 $134.6 $229.1 $231.4 39.7% 38.2% 39.0% 44.5% 41.5% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Non-Interest Expenses Efficiency Ratio Q3 2021 Highlights 1)Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses. Refer to slide 2 for further discussion of Non-GAAP financial measures.

Pre-Provision Net Revenue1, Net Income, and ROA 8 • PPNR1 increased $39.7 million from the prior quarter and $135.9 million, or 75.0%, from the same period last year • PPNR ROA1 increased 14 basis points from the prior quarter and 23 basis points from the same period last year • ROA decreased 3 basis points from the prior quarter and increased 17 basis points from the same period last year PPNR, Net Income & ROA Dollars in millions $181.2 $206.4 $202.4 $277.4 $317.1 $135.8 $193.6 $192.5 $223.8 $236.9 2.22% 2.37% 2.03% 2.31% 2.45% 1.66% 2.22% 1.93% 1.86% 1.83% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 PPNR Net Income PPNR ROA ROA Q3 2021 Highlights 1)Non-GAAP income statement metrics have been adjusted to exclude the impact of acquisition and restructure expenses. Refer to slide 2 for further discussion of Non-GAAP financial measures.

Consolidated Balance Sheet Loans increased $4.8 billion, or 15.9%, over prior quarter and $8.8 billion, or 33.9%, over prior year Deposits increased $3.4 billion, or 8.0%, over prior quarter and $16.4 billion, or 57.0%, over prior year Borrowings increased $313 million over prior quarter from $400 million in overnight borrowings, offset by $75 million Subordinated Debt redemption Shareholders’ Equity increased $479 million as a function of net income and a preferred stock offering of $300 million Tangible Book Value/Share1 increased $1.81, over prior quarter and $5.64, or 19.4%, over prior year 9 1 2 3 Q3-21 Q2-21 Q3-20 Investments & Cash $8,614 $11,241 $6,120 Loans, HFS 6,534 4,465 21 Loans 34,802 30,026 25,993 Allowance for Loan Losses (247) (233) (311) Mortgage Servicing Rights 605 726 - Goodwill and Intangibles 608 611 299 Other Assets 1,859 2,233 1,214 Total Assets $52,775 $49,069 $33,336 Deposits $45,283 $41,921 $28,843 Borrowings 2,068 1,755 $649 Other Liabilities 910 1,358 $620 Total Liabilities $48,261 $45,034 $30,112 Shareholders’ Equity $4,514 $4,035 $3,224 Total Liabilities and Equity $52,775 $49,069 $33,336 Tangible Book Value Per Common Share1 $34.67 $32.86 $29.03 1 2 5 Dollars in millions Q3 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 10 $8.8 Billion Year-Over-Year Growth Quarter-over-quarter loan growth of $4.8 billion driven by (in millions): Residential & Consumer $2,332 C&I1 2,240 CRE, Non-OO 148 Construction & Land 87 Offset by decrease in: CRE, OO (31) Total $4,776 Year-over-year loan growth of $8.8 billion driven by (in millions): Residential & Consumer $5,071 C&I1 2,876 Construction & Land 643 CRE, Non-OO 436 Offset by decrease in: CRE, OO (217) Total $8,809 $13.7 $14.3 $15.1 $14.3 $16.5 $2.2 $2.2 $2.0 $2.0 $2.0 $5.4 $5.7 $5.7 $5.7 $5.9 $2.3 $2.4 $2.8 $2.9 $2.9 $2.4 $2.5 $3.1 $5.1 $7.5 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Residential & Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial Dollars in billions, unless otherwise indicated Total Loans, HFI $26.0 $27.1 $28.7 $30.0 $34.8 Qtr. Change +$1.0 +$1.1 +$1.6 +$1.3 +$4.8 9.3% 8.8% 20.8% 8.5% 52.6% 47.5% 5.7% 16.8% 8.5% 21.5% Highlights 1) Includes Round 1 and Round 2 PPP loans of $624 million as of September 30, 2021. During Q3-21, PPP payoffs of approximately $240 million

$13.0 $13.5 $17.5 $20.1 $21.1 $3.5 $4.4 $3.9 $4.2 $5.0 $10.6 $12.4 $15.3 $15.8 $17.4 $1.7 $1.7 $1.7 $1.8 $1.8 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 CDs Savings and MMDA Interest Bearing DDA Non-Interest Bearing DDA Five Quarter Deposit Growth and Composition 11 $16.4 Billion Year-Over-Year Growth Quarter-over-quarter deposit growth of $3.4 billion driven by (in millions): Savings and MMDA $1,630 Non-Interest Bearing DDA 953 Interest-Bearing DDA 767 CD 12 Total $3,362 Year-over-year deposit growth of $16.4 billion driven by (in millions): Non-Interest Bearing DDA $8,045 Savings and MMDA 6,866 Interest-Bearing DDA 1,400 CDs 129 Total $16,440 Dollars in billions, unless otherwise indicated Total Deposits $28.8 $31.9 $38.4 $41.9 $45.3 Qtr. Change +$1.3 +$3.1 +$6.5 +$3.5 +$3.4 5.9% 36.7% 12.3% 45.1% 46.5% 11.0% 38.5% 4.0% Highlights

$477 $451 $474 $405 $364 1.83% 1.67% 1.65% 1.35% 1.05% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 $9 $2 $4 $4 $12 $126 $115 $114 $96 $78 $171 $107 $163 $138 $175 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Asset Quality 12 • Total Classified Assets of $265 million (50bps to Total Assets) increased $27 million in Q3 • Non-Performing Loans + OREO of $90 million (17bps to Total Assets) decreased by $10 million in Q3 • Borrowers remain stable, liquid and supported • Special Mention loans continue to decline from 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 $306 $224 $281 $238 SM to Funded Loans 0.92% 0.61% 0.65% 0.49% 0.50% 0.40% 0.32% 0.27% 0.20% 0.17% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Classified Assets to Total Assets Non-Performing Loans + OREO to Total Assets Q3 2021 Highlights $265

$8.8 $5.7 $2.1 $2.3 $3.3 ($0.6) ($1.8) ($0.7) ($2.2) ($0.3) $311 $279 $247 $233 $247 $44 $37 $33 $31 $32 $6 $7 $9 $6 $5 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Credit Losses and ACL Ratios 13 • Provision expense of $12.3 million, driven by strong loan growth • Total Loan ACL2 / Funded Loans decreased 8bps to 0.80% in Q3 as a result of loan growth in low loss segments • Excluding PPP at 0.82% • Total Loan ACL2 / NPL + Classified Loans of 110% • Net Charge-Offs of $3.0 million, 4bps, compared to $0.1 million, approximately 0bps, in Q2-21 Dollars in millions Allowance for Credit Losses Gross Charge-offs and Recoveries Loan ACL Adequacy Ratios Total Loan ACL2/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 1.37% 1.17% 0.97% 0.88% 0.80% 112% 142% 101% 113% 110% 0.50% 1.50% 2.50% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q3 2021 Highlights 1) Included as a component of other liabilities on the balance sheet. 2)Total Loan ACL includes allowance for unfunded commitments. Q3-20 Q4-20 Q1-21 Q2-21 Q3-21

Capital Accumulation 14 Common Equity Tier 1 • CET1 remains strong at 8.7% Tangible Common Equity / Tangible Assets1 • TCE / TA decreased 20bps from the prior quarter to 6.9% due to continued balance sheet growth Regulatory Capital Levels • Exceed “well-capitalized” levels and have rebounded from initial impact of the AmeriHome transaction YTD Capital Actions • Issued $209 million of common stock to support the AmeriHome transaction • Issued $600 million of subordinated debt • Issued 700 thousand shares of common stock under at-the-market offering • Issued $242 million aggregate principal amount of senior unsecured credit linked notes • Issued $300 million of preferred stock • Redeemed $75 million of subordinated debt • Increased quarterly common stock cash dividend to $0.35 per share Robust Common Capital Levels Regulatory Capital 10.0% 9.9% 10.3% 9.2% 8.7%8.9% 8.6% 7.9% 7.1% 6.9% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 CET1 Ratio TCE/TA1 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures 9.3% 9.2% 8.8% 7.3% 7.9% 10.3% 10.2% 10.6% 9.4% 9.6% 13.0% 12.5% 12.6% 12.8% 12.6% Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Total RBC RatioTier 1 RatioLeverage Ratio Q1 Q2 Q3

Tangible Book Value Growth 15 Tangible Book Value per Share1 • TBVPS increased $1.81 to $34.67 from prior quarter • Increased 5.5% quarter-over-quarter, unannualized • Increased 19.4% year-over-year • 19.3% CAGR since year end 2015 • TBVPS has increased 2.5x that of peers over the last 5+ 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 Q3-21 for WAL and Q2-21 for WAL Peers Note: Peers consist of 29 major exchange traded US banks with total assets between $25B and $150B as of June 30, 2021, excluding target banks of pending acquisitions; S&P Global Market Intelligence. 176% 196% 63% 77% 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 16

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