8-K
Western Alliance Bancorporation (WAL)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 2025
WESTERN ALLIANCE BANCORPORATION
(Exact name of registrant as specified in its charter)
| Delaware | 001-32550 | 88-0365922 |
|---|---|---|
| (State or other jurisdiction<br>of incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
One E. Washington Street, Phoenix, Arizona 85004
(Address of principal executive offices) (Zip Code)
(602) 389-3500
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $0.0001 Par Value | WAL | New York Stock Exchange |
| Depositary Shares, Each Representing a 1/400th Interest in a Share of<br><br>4.250% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A | WAL PrA | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On October 21, 2025, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended September 30, 2025 and posted on its website its third quarter 2025 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company. Copies of the press release and presentation slides are attached hereto as Exhibits 99.1 and 99.2, respectively.
The information in this report (including Exhibits 99.1 and 99.2 hereto) is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
| 99.1 | Press Release dated October 21, 2025 |
|---|---|
| 99.2 | Third Quarter 2025 Earnings Conference Call dated October 22, 2025 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WESTERN ALLIANCE BANCORPORATION | |
|---|---|
| (Registrant) | |
| /s/ Dale Gibbons | |
| Dale Gibbons | |
| Vice Chairman and | |
| Chief Financial Officer | |
| Date: | October 21, 2025 |
Document
| Western Alliance Bancorporation |
|---|
| One East Washington Street |
| Phoenix, AZ 85004 |
| www.westernalliancebancorporation.com |
PHOENIX--(BUSINESS WIRE)--October 21, 2025
THIRD QUARTER 2025 FINANCIAL RESULTS
| Quarter Highlights: | |||||
|---|---|---|---|---|---|
| Net income | Earnings per share | PPNR1 | Net interest margin | Book value per <br>common share | |
| $260.5 million | $2.28 | 393.8 million | 3.53% | $64.45 | |
| 58.561, excluding goodwill and intangibles |
All values are in US Dollars.
| CEO COMMENTARY: | |||
|---|---|---|---|
| “Western Alliance achieved solid third quarter results with net income of $261 million and earnings per share of $2.28, up 10.1% from last quarter and 26.7% year-over-year. Healthy balance sheet growth and stable margins supported continued expansion of net interest income, which, alongside firming mortgage banking revenue, generated record PPNR¹ of $394 million,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly loan and deposit growth of $707 million and $6.1 billion, respectively, boosted total assets over $90 billion. Asset quality continued to perform in line with guidance with our total criticized assets declining $284 million quarterly, nonperforming loans and repossessed assets to total assets ratio decreasing 2 basis points to 0.72% and net loan charge-offs to average loans remained unchanged from last quarter at 0.22%. Related to the Cantor Group V loan, although the most recent appraisals indicate sufficient collateral coverage, our reserve methodology for a $98 million non-accrual loan resulted in a reserve of $30 million. That reserve, in combination with our portfolio's qualitative overlays, raised our allowance to total funded HFI loans to 0.85%. Tangible book value per share1 climbed 12.7% year-over-year to $58.56 with a CET 1 ratio of 11.3%.” | LINKED-QUARTER BASIS | YEAR-OVER-YEAR | |
| --- | --- | ||
| FINANCIAL HIGHLIGHTS: |
▪Net income of $260.5 million and earnings per share of $2.28, up 9.5% and 10.1%, from $237.8 million and $2.07, respectively
▪Net revenue of $938.2 million, an increase of 10.9%, or $92.3 million, compared to an increase in non-interest expenses of 5.8%, or $29.7 million
▪Pre-provision net revenue1 of $393.8 million, up $62.6 million from $331.2 million
▪Effective tax rate of 17.0%, compared to 18.4%
▪Net income of $260.5 million and earnings per share of $2.28, up 30.4% and 26.7%, from $199.8 million and $1.80, respectively
▪Net revenue of $938.2 million, an increase of 14.0%, or $115.1 million, compared to an increase in non-interest expenses of 1.3%, or $7.0 million
▪Pre-provision net revenue1 of $393.8 million, up $108.1 million from $285.7 million
▪Effective tax rate of 17.0%, compared to 20.7%
| FINANCIAL POSITION RESULTS: |
|---|
▪HFI loans of $56.6 billion, up $707 million, or 1.3%
▪Total deposits of $77.2 billion, up $6.1 billion, or 8.6%
▪HFI loan-to-deposit ratio of 73.3%, down from 78.7%
▪Total equity of $7.7 billion, up $283 million, or 3.8%
▪Increase in HFI loans of $3.3 billion, or 6.2%
▪Increase in total deposits of $9.2 billion, or 13.5%
▪HFI loan-to-deposit ratio of 73.3%, down from 78.4%
▪Increase in total equity of $1.0 billion, or 15.2%
| LOANS AND ASSET QUALITY: |
|---|
▪Nonperforming (nonaccrual) loans to funded HFI loans of 0.92%, increased from 0.76%
▪Criticized loans of $1.3 billion, down $196 million from $1.5 billion
▪Repossessed assets of $130 million, down $88 million from $218 million
▪Annualized net loan charge-offs to average loans outstanding of 0.22%, flat from the prior quarter
▪Nonperforming (nonaccrual) loans to funded HFI loans of 0.92% increased from 0.65%
▪Criticized loans of $1.3 billion, down $40 million from $1.3 billion
▪Repossessed assets of $130 million, up $122 million from $8 million
▪Annualized net loan charge-offs to average loans outstanding of 0.22%, compared to 0.20%
| KEY PERFORMANCE METRICS: |
|---|
▪Net interest margin of 3.53%, flat from the prior quarter
▪Return on average assets and on tangible common equity1 of 1.13% and 15.6%, compared to 1.10% and 14.9%, respectively
▪Tangible common equity ratio1 of 7.1%, decreased from 7.2%
▪CET 1 ratio of 11.3%, compared to 11.2%
▪Tangible book value per share1, net of tax, of $58.56, an increase of 4.8% from $55.87
▪Adjusted efficiency ratio1 of 47.8%, compared to 51.8%
▪Net interest margin of 3.53%, decreased from 3.61%
▪Return on average assets and on tangible common equity1 of 1.13% and 15.6%, compared to 0.96% and 13.8%, respectively
▪Tangible common equity ratio1 of 7.1%, decreased from 7.2%
▪CET 1 ratio of 11.3%, compared to 11.2%
▪Tangible book value per share1, net of tax, of $58.56, an increase of 12.7% from $51.98
▪Adjusted efficiency ratio1 of 47.8%, compared to 52.7%
1 See reconciliation of Non-GAAP Financial Measures starting on page 16.
Income Statement
Net interest income totaled $750.4 million in the third quarter 2025, an increase of $52.8 million, or 7.6%, from $697.6 million in the second quarter 2025, and an increase of $53.5 million, or 7.7%, compared to the third quarter 2024. The increase in net interest income from the second quarter 2025 was primarily due to higher average interest earning asset balances, partially offset by an increase in average deposit balances. The increase in net interest income from the third quarter 2024 was driven by an increase in average interest earning asset balances and lower rates on deposits, partially offset by decreased yields on interest earning assets.
The Company recorded a provision for credit losses of $80.0 million in the third quarter 2025, an increase of $40.1 million from $39.9 million in the second quarter 2025, and an increase of $46.4 million from $33.6 million in the third quarter 2024. The provision for credit losses during the third quarter 2025 was primarily reflective of net charge-offs of $31.1 million, establishment of an approximate $30 million reserve related to the Cantor Group V loan, and qualitative overlays.
The Company’s net interest margin was 3.53% in the third quarter 2025, flat from the second quarter 2025, and a decrease from 3.61% in the third quarter 2024. Net interest margin was flat from the second quarter 2025 due to higher yields on HFI loans and lower rates on debt, offset by lower yields on investment securities. The decrease in net interest margin from the third quarter 2024 was primarily driven by the impact of a lower rate environment on interest earning asset yields, partially offset by lower rates on interest bearing liabilities.
Non-interest income was $187.8 million for the third quarter 2025, compared to $148.3 million for the second quarter 2025, and $126.2 million for the third quarter 2024. The increase in non-interest income of $39.5 million from the second quarter 2025 was primarily due to increases in net gain on mortgage loan origination and sale activities of $36.1 million, fair value gain adjustments of $8.2 million, and other non-interest income of $13.1 million, primarily driven by an increase in rental income from OREO properties. These increases were partially offset by a decrease in net loan servicing revenue of $19.2 million. The increase in non-interest income of $61.6 million from the third quarter 2024 was primarily driven by increases in net gain on mortgage loan origination and sale activities and other non-interest income, primarily due to an increase in rental income from OREO properties.
Net revenue totaled $938.2 million for the third quarter 2025, an increase of $92.3 million, or 10.9%, compared to $845.9 million for the second quarter 2025, and an increase of $115.1 million, or 14.0%, compared to $823.1 million for the third quarter 2024.
Non-interest expense was $544.4 million for the third quarter 2025, compared to $514.7 million for the second quarter 2025, and $537.4 million for the third quarter 2024. The increase in non-interest expense of $29.7 million from the second quarter 2025 was primarily due to an increase of $27.7 million in deposit costs driven by higher average ECR-related deposit balances and $13.6 million in salaries and employee benefits, partially offset by a decrease of $12.9 million in insurance costs. The increase in non-interest expense of $7.0 million from the third quarter 2024 was primarily attributable to increased salaries and employee benefits of $35.7 million, data processing costs of $9.4 million, and other non-interest expense of $9.6 million, primarily related to increased costs from operating OREO properties. These increases were partially offset by decreased deposit costs of $32.9 million driven by lower interest rates and insurance costs of $10.9 million. The Company’s efficiency ratio, adjusted for deposit costs1, was 47.8% for the third quarter 2025, compared to 51.8% in the second quarter 2025, and 52.7% for the third quarter 2024.
Income tax expense was $53.3 million for the third quarter 2025, compared to $53.5 million for the second quarter 2025, and $52.3 million for the third quarter 2024.
Net income was $260.5 million for the third quarter 2025, an increase of $22.7 million from $237.8 million for the second quarter 2025, and an increase of $60.7 million from $199.8 million for the third quarter 2024. Earnings per share totaled $2.28 for the third quarter 2025, compared to $2.07 for the second quarter 2025, and $1.80 for the third quarter 2024.
The Company believes its pre-provision net revenue1 ("PPNR") is a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the third quarter 2025, the Company’s PPNR1 was $393.8 million, up $62.6 million from $331.2 million in the second quarter 2025, and up $108.1 million from $285.7 million in the third quarter 2024.
The Company had 3,701 full-time equivalent employees and 57 offices at September 30, 2025, compared to 3,655 full-time equivalent employees and 56 offices at June 30, 2025, and 3,426 full-time equivalent employees and 56 offices at September 30, 2024.
1 See reconciliation of Non-GAAP Financial Measures starting on page 16.
Balance Sheet
HFI loans, net of deferred fees, totaled $56.6 billion at September 30, 2025, compared to $55.9 billion at June 30, 2025, and $53.3 billion at September 30, 2024. The increase in HFI loans of $707 million from the prior quarter was primarily driven by increases of $814 million, $232 million, and $186 million in commercial and industrial, commercial real estate non-owner occupied, and residential real estate loans, respectively, partially offset by a decrease in construction and land development loans of $461 million. The increase in HFI loans of $3.3 billion from September 30, 2024 was primarily driven by increases of $3.2 billion, $686 million, and $256 million in commercial and industrial, commercial real estate non-owner occupied, and residential real estate loans, respectively, partially offset by decreases of $662 million and $135 million in construction and land development and commercial real estate owner occupied loans, respectively. HFS loans totaled $3.5 billion at September 30, 2025, compared to $3.0 billion at June 30, 2025, and $2.3 billion at September 30, 2024. The increase in HFS loans of $480 million from the prior quarter was primarily driven by increases of $359 million and $69 million in government-insured or guaranteed and agency-conforming mortgage loans, respectively. The increase in HFS loans of $1.2 billion from September 30, 2024 was primarily driven by increases of $914 million and $200 million in government-insured or guaranteed and agency-conforming mortgage loans, respectively.
The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.78%, 0.71%, and 0.67% at September 30, 2025, June 30, 2025, and September 30, 2024, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.85% at September 30, 2025, 0.78% at June 30, 2025, and 0.74% at September 30, 2024. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $8.2 billion, $8.4 billion, and $8.8 billion as of September 30, 2025, June 30, 2025, and September 30, 2024, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.8 million as of September 30, 2025, June 30, 2025, and September 30, 2024. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 1.00% at September 30, 2025, 0.91% at June 30, 2025, and 0.88% at September 30, 2024.
Deposits totaled $77.2 billion at September 30, 2025, an increase of $6.1 billion from $71.1 billion at June 30, 2025, and an increase of $9.2 billion from $68.0 billion at September 30, 2024. By deposit type, the increase from the prior quarter is attributable to increases of $3.6 billion, $2.4 billion, and $748 million from non-interest bearing, savings and money market, and interest-bearing demand deposits, respectively, partially offset by a decrease of $635 million in certificates of deposit. From September 30, 2024, savings and money market, interest-bearing demand, and non-interest bearing deposits increased $5.1 billion, $2.6 billion, and $1.7 billion, respectively. Non-interest bearing deposits were $26.6 billion at September 30, 2025, compared to $23.0 billion at June 30, 2025, and $25.0 billion at September 30, 2024.
The table below shows the Company's deposit types as a percentage of total deposits:
| Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | ||||
|---|---|---|---|---|---|---|
| Non-interest bearing | 34.5 | % | 32.3 | % | 36.7 | % |
| Interest-bearing demand | 21.2 | 22.0 | 20.3 | |||
| Savings and money market | 31.9 | 31.3 | 28.8 | |||
| Certificates of deposit | 12.4 | 14.4 | 14.2 |
The Company’s ratio of HFI loans to deposits was 73.3% at September 30, 2025, compared to 78.7% at June 30, 2025, and 78.4% at September 30, 2024.
Borrowings totaled $3.9 billion at September 30, 2025, $6.1 billion at June 30, 2025, and $3.0 billion at September 30, 2024. Borrowings decreased $2.2 billion from June 30, 2025 driven by a decrease in short-term borrowings. Borrowings increased $867 million from September 30, 2024, reflecting a $1.5 billion increase in long-term borrowings, partially offset by a decrease in short-term borrowings of $600 million.
Qualifying debt totaled $681 million at September 30, 2025, compared to $678 million and $898 million at June 30, 2025 and September 30, 2024, respectively. The decrease in qualifying debt from September 30, 2024 was primarily due to the repayment of $225 million of subordinated debt during the quarter ended June 30, 2025.
Total equity was $7.7 billion at September 30, 2025, compared to $7.4 billion at June 30, 2025, and $6.7 billion at September 30, 2024. The increase in total equity from the prior quarter was due primarily to net income of $260.5 million and net AOCI gains of $73 million, partially offset by cash dividends paid during the third quarter ($41.9 million or $0.38 per common share, $3.2 million or $0.27 per depositary share, and $7.1 million on preferred stock of the Company's REIT subsidiary). In addition, under the $300 million share repurchase program announced last month, the Company repurchased 300,833 shares for $25.0 million through October 17, 2025. The increase in equity from September 30, 2024 was primarily driven by net income and the issuance of preferred stock from the Company's REIT subsidiary, partially offset by dividends to stockholders.
The Company's common equity tier 1 capital ratio was 11.3% at September 30, 2025, compared to 11.2% at June 30, 2025 and September 30, 2024. At September 30, 2025, tangible common equity, net of tax1, was 7.1% of tangible assets1 and total capital was 14.2% of risk-weighted assets. The Company’s tangible book value per share1 was $58.56 at September 30, 2025, an increase of 4.8% from $55.87 at June 30, 2025, and an increase of 12.7% from $51.98 at September 30, 2024. The increase in tangible book value per share from June 30, 2025 and September 30, 2024 was primarily attributable to net income.
Total assets increased $4.2 billion, or 4.9%, to $91.0 billion at September 30, 2025 from $86.7 billion at June 30, 2025, and increased 13.6% from $80.1 billion at September 30, 2024. The increase in total assets from June 30, 2025 was primarily driven by deposit growth, which contributed to increases in cash and HFI and HFS loans. The increase in total assets from September 30, 2024 was primarily driven by increases in HFI and HFS loans, cash, and investment securities.
1 See reconciliation of Non-GAAP Financial Measures starting on page 16.
Asset Quality
Provision for credit losses totaled $80.0 million for the third quarter 2025, compared to $39.9 million for the second quarter 2025, and $33.6 million for the third quarter 2024. Net loan charge-offs in the third quarter 2025 totaled $31.1 million, or 0.22% of average loans (annualized), compared to $29.6 million, or 0.22%, in the second quarter 2025, and $26.6 million, or 0.20%, in the third quarter 2024.
Nonaccrual loans increased $95 million to $522 million during the quarter, primarily driven by migration of the Cantor Group V loan, and $173 million from September 30, 2024. Loans past due 90 days and still accruing interest totaled $49 million at September 30, 2025, $51 million at June 30, 2025, and $4 million at September 30, 2024 (excluding government guaranteed loans of $282 million, $326 million, and $313 million, respectively). Loans past due 30-89 days and still accruing interest totaled $196 million at September 30, 2025, an increase from $175 million at June 30, 2025, and from $110 million at September 30, 2024 (excluding government guaranteed loans of $149 million, $168 million, and $203 million, respectively). Criticized loans decreased $196 million to $1.3 billion during the quarter and decreased $40 million from September 30, 2024.
Repossessed assets totaled $130 million at September 30, 2025, compared to $218 million at June 30, 2025, and $8 million at September 30, 2024. Classified assets totaled $1.1 billion at September 30, 2025, a decrease of $132 million from $1.3 billion at June 30, 2025, and an increase of $291 million from $838 million at September 30, 2024.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 14.3% at September 30, 2025, compared to 16.4% at June 30, 2025, and 12.2% at September 30, 2024.
2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.
Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2025 financial results at 12:00 p.m. ET on Wednesday, October 22, 2025. Participants may access the call by dialing 1-833-470-1428 and using access code 834092 or via live audio webcast using the website link https://events.q4inc.com/attendee/887299674. 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 1:00 p.m. ET October 29th by dialing 1-866-813-9403, using access code 978496.
Reclassifications
Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.
Use of Non-GAAP Financial Information
This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.
Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; any adverse determination by a court regarding the Cantor Group V loan and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loan; and other factors affecting the financial services industry generally or the banking industry in particular.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements.
About Western Alliance Bancorporation
With more than $90 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, clients benefit from a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2024 by American Banker and Bank Director and receiving #1 rankings on Extel’s (formerly Institutional Investor’s) All-America Executive Team Midcap Banks 2024 for Best CEO, Best CFO and Best Company Board of Directors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit westernalliancebank.com.
Contacts
Investors: Miles Pondelik, 602-346-7462
Email: MPondelik@westernalliancebank.com
Media: Stephanie Whitlow, 480-998-6547
Email: SWhitlow@westernalliancebank.com
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Summary Consolidated Financial Data | ||||||||||||
| Unaudited | ||||||||||||
| Selected Balance Sheet Data: | ||||||||||||
| As of September 30, | ||||||||||||
| 2025 | 2024 | Change % | ||||||||||
| (in millions) | ||||||||||||
| Total assets | $ | 90,970 | $ | 80,080 | 13.6 | % | ||||||
| Loans held for sale | 3,502 | 2,327 | 50.5 | |||||||||
| HFI loans, net of deferred fees | 56,646 | 53,346 | 6.2 | |||||||||
| Investment securities | 18,841 | 16,382 | 15.0 | |||||||||
| Total deposits | 77,247 | 68,040 | 13.5 | |||||||||
| Borrowings | 3,862 | 2,995 | 28.9 | |||||||||
| Qualifying debt | 681 | 898 | (24.2) | |||||||||
| Total equity | 7,690 | 6,677 | 15.2 | |||||||||
| Tangible common equity, net of tax (1) | 6,453 | 5,723 | 12.8 | |||||||||
| Common equity Tier 1 capital | 6,736 | 6,126 | 10.0 | |||||||||
| Selected Income Statement Data: | ||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | |||||||
| (in millions, except per share data) | (in millions, except per share data) | |||||||||||
| Interest income | $ | 1,225.5 | $ | 1,200.0 | 2.1 | % | $ | 3,475.5 | $ | 3,402.5 | 2.1 | % |
| Interest expense | 475.1 | 503.1 | (5.6) | 1,376.9 | 1,450.1 | (5.0) | ||||||
| Net interest income | 750.4 | 696.9 | 7.7 | 2,098.6 | 1,952.4 | 7.5 | ||||||
| Provision for credit losses | 80.0 | 33.6 | NM | 151.1 | 85.9 | 75.9 | ||||||
| Net interest income after provision for credit losses | 670.4 | 663.3 | 1.1 | 1,947.5 | 1,866.5 | 4.3 | ||||||
| Non-interest income | 187.8 | 126.2 | 48.8 | 463.5 | 371.3 | 24.8 | ||||||
| Non-interest expense | 544.4 | 537.4 | 1.3 | 1,559.5 | 1,506.0 | 3.6 | ||||||
| Income before income taxes | 313.8 | 252.1 | 24.5 | 851.5 | 731.8 | 16.4 | ||||||
| Income tax expense | 53.3 | 52.3 | 1.9 | 154.1 | 161.0 | (4.3) | ||||||
| Net income | 260.5 | 199.8 | 30.4 | 697.4 | 570.8 | 22.2 | ||||||
| Net income attributable to noncontrolling interest | 7.1 | — | NM | 14.5 | — | NM | ||||||
| Net income attributable to Western Alliance | 253.4 | 199.8 | 26.8 | 682.9 | 570.8 | 19.6 | ||||||
| Dividends on preferred stock | 3.2 | 3.2 | — | 9.6 | 9.6 | — | ||||||
| Net income available to common stockholders | $ | 250.2 | $ | 196.6 | 27.3 | $ | 673.3 | $ | 561.2 | 20.0 | ||
| Diluted earnings per common share | $ | 2.28 | $ | 1.80 | 26.7 | $ | 6.14 | $ | 5.14 | 19.5 |
(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, | |||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | |||||||
| Diluted earnings per common share | $ | 2.28 | $ | 1.80 | 26.7 | % | $ | 6.14 | $ | 5.14 | 19.5 | % |
| Book value per common share | 64.45 | 57.97 | 11.2 | |||||||||
| Tangible book value per common share, net of tax (1) | 58.56 | 51.98 | 12.7 | |||||||||
| Average common shares outstanding <br>(in millions): | ||||||||||||
| Basic | 109.0 | 108.7 | 0.3 | 108.9 | 108.6 | 0.3 | ||||||
| Diluted | 109.8 | 109.5 | 0.3 | 109.6 | 109.2 | 0.4 | ||||||
| Common shares outstanding | 110.2 | 110.1 | 0.1 | |||||||||
| Selected Performance Ratios: | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Return on average assets (2) | 1.13 | % | 0.96 | % | 17.7 | % | 1.07 | % | 0.98 | % | 9.2 | % |
| Return on average tangible common equity (1, 2) | 15.6 | 13.8 | 13.0 | 14.7 | 13.8 | 6.5 | ||||||
| Net interest margin (2) | 3.53 | 3.61 | (2.2) | 3.51 | 3.61 | (2.8) | ||||||
| Efficiency ratio | 57.4 | 64.5 | (11.0) | 60.2 | 64.0 | (5.9) | ||||||
| Efficiency ratio, adjusted for deposit costs (1) | 47.8 | 52.7 | (9.3) | 51.6 | 53.8 | (4.1) | ||||||
| HFI loan to deposit ratio | 73.3 | 78.4 | (6.5) | |||||||||
| Asset Quality Ratios: | ||||||||||||
| Net charge-offs to average loans outstanding (2) | 0.22 | % | 0.20 | % | 10.0% | 0.21 | % | 0.15 | % | 40.0% | ||
| Nonaccrual loans to funded HFI loans | 0.92 | 0.65 | 41.5 | |||||||||
| Nonaccrual loans and repossessed assets to total assets | 0.72 | 0.45 | 60.0 | |||||||||
| Allowance for loan losses to funded HFI loans | 0.78 | 0.67 | 16.4 | |||||||||
| Allowance for loan losses to nonaccrual HFI loans | 84 | 102 | (17.6) | |||||||||
| Capital Ratios: | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | ||||||||||
| Tangible common equity (1) | 7.1 | % | 7.2 | % | 7.2 | % | ||||||
| Common Equity Tier 1 (3) | 11.3 | 11.2 | 11.2 | |||||||||
| Tier 1 Leverage ratio (3) | 8.1 | 8.4 | 7.8 | |||||||||
| Tier 1 Capital (3) | 12.4 | 12.3 | 11.9 | |||||||||
| Total Capital (3) | 14.2 | 14.1 | 14.1 |
(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, 2025 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, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| (in millions, except per share data) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans | $ | 948.3 | $ | 945.3 | $ | 2,743.6 | $ | 2,713.9 | |||||||
| Investment securities | 231.7 | 197.1 | 601.2 | 531.6 | |||||||||||
| Other | 45.5 | 57.6 | 130.7 | 157.0 | |||||||||||
| Total interest income | 1,225.5 | 1,200.0 | 3,475.5 | 3,402.5 | |||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 398.2 | 422.1 | 1,154.3 | 1,213.0 | |||||||||||
| Qualifying debt | 6.3 | 9.5 | 23.8 | 28.6 | |||||||||||
| Borrowings | 70.6 | 71.5 | 198.8 | 208.5 | |||||||||||
| Total interest expense | 475.1 | 503.1 | 1,376.9 | 1,450.1 | |||||||||||
| Net interest income | 750.4 | 696.9 | 2,098.6 | 1,952.4 | |||||||||||
| Provision for credit losses | 80.0 | 33.6 | 151.1 | 85.9 | |||||||||||
| Net interest income after provision for credit losses | 670.4 | 663.3 | 1,947.5 | 1,866.5 | |||||||||||
| Non-interest income: | |||||||||||||||
| Service charges and loan fees | 35.4 | 30.1 | 109.5 | 64.3 | |||||||||||
| Net gain on mortgage loan origination and sale activities | 75.5 | 46.3 | 164.4 | 138.4 | |||||||||||
| Net loan servicing revenue | 19.1 | 12.3 | 79.2 | 96.8 | |||||||||||
| Income from bank owned life insurance | 11.8 | 13.0 | 34.2 | 15.7 | |||||||||||
| Gain on sales of investment securities | 8.5 | 8.8 | 22.0 | 10.2 | |||||||||||
| Fair value gain adjustments, net | 8.3 | 4.1 | 9.4 | 5.1 | |||||||||||
| Income (loss) from equity investments | 7.8 | 5.8 | 5.9 | 27.1 | |||||||||||
| Other | 21.4 | 5.8 | 38.9 | 13.7 | |||||||||||
| Total non-interest income | 187.8 | 126.2 | 463.5 | 371.3 | |||||||||||
| Non-interest expenses: | |||||||||||||||
| Salaries and employee benefits | 193.5 | 157.8 | 555.8 | 465.7 | |||||||||||
| Deposit costs | 175.1 | 208.0 | 459.3 | 518.7 | |||||||||||
| Data processing | 48.1 | 38.7 | 138.3 | 110.4 | |||||||||||
| Legal, professional, and directors' fees | 28.1 | 24.8 | 82.3 | 80.7 | |||||||||||
| Insurance | 24.5 | 35.4 | 99.8 | 128.1 | |||||||||||
| Occupancy | 16.8 | 17.6 | 50.9 | 53.5 | |||||||||||
| Loan servicing expenses | 15.0 | 18.7 | 51.5 | 50.3 | |||||||||||
| Loan acquisition and origination expenses | 7.3 | 5.9 | 18.3 | 15.8 | |||||||||||
| Business development and marketing | 5.6 | 9.7 | 17.6 | 21.6 | |||||||||||
| Other | 30.4 | 20.8 | 85.7 | 61.2 | |||||||||||
| Total non-interest expense | 544.4 | 537.4 | 1,559.5 | 1,506.0 | |||||||||||
| Income before income taxes | 313.8 | 252.1 | 851.5 | 731.8 | |||||||||||
| Income tax expense | 53.3 | 52.3 | 154.1 | 161.0 | |||||||||||
| Net income | 260.5 | 199.8 | 697.4 | 570.8 | |||||||||||
| Net income attributable to noncontrolling interest | 7.1 | — | 14.5 | — | |||||||||||
| Net income attributable to Western Alliance | 253.4 | 199.8 | 682.9 | 570.8 | |||||||||||
| Dividends on preferred stock | 3.2 | 3.2 | 9.6 | 9.6 | |||||||||||
| Net income available to common stockholders | $ | 250.2 | $ | 196.6 | $ | 673.3 | $ | 561.2 | |||||||
| Earnings per common share: | |||||||||||||||
| Diluted shares | 109.8 | 109.5 | 109.6 | 109.2 | |||||||||||
| Diluted earnings per share | $ | 2.28 | $ | 1.80 | $ | 6.14 | $ | 5.14 | |||||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Five Quarter Condensed Consolidated Income Statements | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | |||||||||||
| (in millions, except per share data) | |||||||||||||||
| Interest income: | |||||||||||||||
| Loans | $ | 948.3 | $ | 914.3 | $ | 881.0 | $ | 915.2 | $ | 945.3 | |||||
| Investment securities | 231.7 | 201.5 | 168.0 | 179.4 | 197.1 | ||||||||||
| Other | 45.5 | 38.6 | 46.6 | 44.0 | 57.6 | ||||||||||
| Total interest income | 1,225.5 | 1,154.4 | 1,095.6 | 1,138.6 | 1,200.0 | ||||||||||
| Interest expense: | |||||||||||||||
| Deposits | 398.2 | 377.8 | 378.3 | 387.2 | 422.1 | ||||||||||
| Qualifying debt | 6.3 | 8.2 | 9.3 | 9.4 | 9.5 | ||||||||||
| Borrowings | 70.6 | 70.8 | 57.4 | 75.5 | 71.5 | ||||||||||
| Total interest expense | 475.1 | 456.8 | 445.0 | 472.1 | 503.1 | ||||||||||
| Net interest income | 750.4 | 697.6 | 650.6 | 666.5 | 696.9 | ||||||||||
| Provision for credit losses | 80.0 | 39.9 | 31.2 | 60.0 | 33.6 | ||||||||||
| Net interest income after provision for credit losses | 670.4 | 657.7 | 619.4 | 606.5 | 663.3 | ||||||||||
| Non-interest income: | |||||||||||||||
| Service charges and loan fees | 35.4 | 36.9 | 37.2 | 31.7 | 30.1 | ||||||||||
| Net gain on mortgage loan origination and sale activities | 75.5 | 39.4 | 49.5 | 67.9 | 46.3 | ||||||||||
| Net loan servicing revenue | 19.1 | 38.3 | 21.8 | 24.7 | 12.3 | ||||||||||
| Income from bank owned life insurance | 11.8 | 11.0 | 11.4 | 12.1 | 13.0 | ||||||||||
| Gain on sales of investment securities | 8.5 | 11.4 | 2.1 | 7.2 | 8.8 | ||||||||||
| Fair value gain adjustments, net | 8.3 | 0.1 | 1.0 | 2.4 | 4.1 | ||||||||||
| Income (loss) from equity investments | 7.8 | 2.9 | (4.8) | 11.1 | 5.8 | ||||||||||
| Other | 21.4 | 8.3 | 9.2 | 14.8 | 5.8 | ||||||||||
| Total non-interest income | 187.8 | 148.3 | 127.4 | 171.9 | 126.2 | ||||||||||
| Non-interest expenses: | |||||||||||||||
| Salaries and employee benefits | 193.5 | 179.9 | 182.4 | 165.4 | 157.8 | ||||||||||
| Deposit costs | 175.1 | 147.4 | 136.8 | 174.5 | 208.0 | ||||||||||
| Data processing | 48.1 | 45.0 | 45.2 | 39.3 | 38.7 | ||||||||||
| Legal, professional, and directors' fees | 28.1 | 25.3 | 28.9 | 28.7 | 24.8 | ||||||||||
| Insurance | 24.5 | 37.4 | 37.9 | 36.7 | 35.4 | ||||||||||
| Occupancy | 16.8 | 16.9 | 17.2 | 19.6 | 17.6 | ||||||||||
| Loan servicing expenses | 15.0 | 20.1 | 16.4 | 17.8 | 18.7 | ||||||||||
| Loan acquisition and origination expenses | 7.3 | 5.8 | 5.2 | 5.7 | 5.9 | ||||||||||
| Business development and marketing | 5.6 | 6.1 | 5.9 | 11.1 | 9.7 | ||||||||||
| Other | 30.4 | 30.8 | 24.5 | 20.2 | 20.8 | ||||||||||
| Total non-interest expense | 544.4 | 514.7 | 500.4 | 519.0 | 537.4 | ||||||||||
| Income before income taxes | 313.8 | 291.3 | 246.4 | 259.4 | 252.1 | ||||||||||
| Income tax expense | 53.3 | 53.5 | 47.3 | 42.5 | 52.3 | ||||||||||
| Net income | 260.5 | 237.8 | 199.1 | 216.9 | 199.8 | ||||||||||
| Net income attributable to noncontrolling interest | 7.1 | 7.4 | — | — | — | ||||||||||
| Net income attributable to Western Alliance | 253.4 | 230.4 | 199.1 | 216.9 | 199.8 | ||||||||||
| Dividends on preferred stock | 3.2 | 3.2 | 3.2 | 3.2 | 3.2 | ||||||||||
| Net income available to common stockholders | $ | 250.2 | $ | 227.2 | $ | 195.9 | $ | 213.7 | $ | 196.6 | |||||
| Earnings per common share: | |||||||||||||||
| Diluted shares | 109.8 | 109.6 | 109.6 | 109.6 | 109.5 | ||||||||||
| Diluted earnings per share | $ | 2.28 | $ | 2.07 | $ | 1.79 | $ | 1.95 | $ | 1.80 | |||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||
| Five Quarter Condensed Consolidated Balance Sheets | |||||||||||||||
| Unaudited | |||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | |||||||||||
| (in millions) | |||||||||||||||
| Assets: | |||||||||||||||
| Cash and due from banks | $ | 5,756 | $ | 2,767 | $ | 3,279 | $ | 4,096 | $ | 2,592 | |||||
| Investment securities | 18,841 | 18,601 | 15,868 | 15,095 | 16,382 | ||||||||||
| Loans held for sale | 3,502 | 3,022 | 3,238 | 2,286 | 2,327 | ||||||||||
| Loans held for investment: | |||||||||||||||
| Commercial and industrial | 25,734 | 24,920 | 24,117 | 23,128 | 22,551 | ||||||||||
| Commercial real estate - non-owner occupied | 10,487 | 10,255 | 10,040 | 9,868 | 9,801 | ||||||||||
| Commercial real estate - owner occupied | 1,682 | 1,749 | 1,787 | 1,825 | 1,817 | ||||||||||
| Construction and land development | 4,065 | 4,526 | 4,504 | 4,479 | 4,727 | ||||||||||
| Residential real estate | 14,651 | 14,465 | 14,275 | 14,326 | 14,395 | ||||||||||
| Consumer | 27 | 24 | 38 | 50 | 55 | ||||||||||
| Loans HFI, net of deferred fees | 56,646 | 55,939 | 54,761 | 53,676 | 53,346 | ||||||||||
| Allowance for loan losses | (440) | (395) | (389) | (374) | (357) | ||||||||||
| Loans HFI, net of deferred fees and allowance | 56,206 | 55,544 | 54,372 | 53,302 | 52,989 | ||||||||||
| Mortgage servicing rights | 1,213 | 1,044 | 1,241 | 1,127 | 1,011 | ||||||||||
| Premises and equipment, net | 416 | 365 | 361 | 361 | 354 | ||||||||||
| Operating lease right-of-use asset | 134 | 130 | 125 | 128 | 127 | ||||||||||
| Other assets acquired through foreclosure, net | 130 | 218 | 51 | 52 | 8 | ||||||||||
| Bank owned life insurance | 1,045 | 1,033 | 1,022 | 1,011 | 1,000 | ||||||||||
| Goodwill and other intangibles, net | 651 | 653 | 656 | 659 | 661 | ||||||||||
| Other assets | 3,076 | 3,348 | 2,830 | 2,817 | 2,629 | ||||||||||
| Total assets | $ | 90,970 | $ | 86,725 | $ | 83,043 | $ | 80,934 | $ | 80,080 | |||||
| Liabilities and stockholders' equity: | |||||||||||||||
| Liabilities: | |||||||||||||||
| Deposits | |||||||||||||||
| Non-interest bearing deposits | $ | 26,628 | $ | 22,997 | $ | 22,009 | $ | 18,846 | $ | 24,965 | |||||
| Interest bearing: | |||||||||||||||
| Demand | 16,422 | 15,674 | 15,507 | 15,878 | 13,846 | ||||||||||
| Savings and money market | 24,627 | 22,231 | 21,728 | 21,208 | 19,575 | ||||||||||
| Certificates of deposit | 9,570 | 10,205 | 10,078 | 10,409 | 9,654 | ||||||||||
| Total deposits | 77,247 | 71,107 | 69,322 | 66,341 | 68,040 | ||||||||||
| Borrowings | 3,862 | 6,052 | 4,151 | 5,573 | 2,995 | ||||||||||
| Qualifying debt | 681 | 678 | 898 | 899 | 898 | ||||||||||
| Operating lease liability | 164 | 160 | 154 | 159 | 159 | ||||||||||
| Accrued interest payable and other liabilities | 1,326 | 1,321 | 1,303 | 1,255 | 1,311 | ||||||||||
| Total liabilities | 83,280 | 79,318 | 75,828 | 74,227 | 73,403 | ||||||||||
| Equity: | |||||||||||||||
| Preferred stock | 295 | 295 | 295 | 295 | 295 | ||||||||||
| Common stock and additional paid-in capital | 2,140 | 2,136 | 2,125 | 2,120 | 2,110 | ||||||||||
| Retained earnings | 5,371 | 5,165 | 4,980 | 4,826 | 4,654 | ||||||||||
| Accumulated other comprehensive loss | (409) | (482) | (478) | (534) | (382) | ||||||||||
| Total Western Alliance stockholders' equity | 7,397 | 7,114 | 6,922 | 6,707 | 6,677 | ||||||||||
| Noncontrolling interest in subsidiary | 293 | 293 | 293 | — | — | ||||||||||
| Total equity | 7,690 | 7,407 | 7,215 | 6,707 | 6,677 | ||||||||||
| Total liabilities and equity | $ | 90,970 | $ | 86,725 | $ | 83,043 | $ | 80,934 | $ | 80,080 | |||||
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Changes in the Allowance For Credit Losses on Loans | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | |||||||||||
| (dollars in millions) | |||||||||||||||
| Allowance for loan losses | |||||||||||||||
| Balance, beginning of period | $ | 394.7 | $ | 388.6 | $ | 373.8 | $ | 356.6 | $ | 351.8 | |||||
| Provision for credit losses (1) | 76.8 | 35.7 | 40.6 | 51.3 | 31.4 | ||||||||||
| Recoveries of loans previously charged-off: | |||||||||||||||
| Commercial and industrial | 0.7 | 0.6 | 1.0 | 0.1 | 0.5 | ||||||||||
| Commercial real estate - non-owner occupied | — | 5.1 | 0.6 | — | 0.7 | ||||||||||
| Commercial real estate - owner occupied | — | — | 0.1 | 0.2 | — | ||||||||||
| Construction and land development | — | — | — | — | — | ||||||||||
| Residential real estate | — | — | — | — | — | ||||||||||
| Consumer | — | — | — | — | — | ||||||||||
| Total recoveries | 0.7 | 5.7 | 1.7 | 0.3 | 1.2 | ||||||||||
| Loans charged-off: | |||||||||||||||
| Commercial and industrial | 12.4 | 17.0 | 13.0 | 24.8 | 4.3 | ||||||||||
| Commercial real estate - non-owner occupied | 12.9 | 17.4 | 14.5 | 9.6 | 21.7 | ||||||||||
| Commercial real estate - owner occupied | — | 0.2 | — | — | 0.3 | ||||||||||
| Construction and land development | 6.3 | 0.6 | — | — | 1.5 | ||||||||||
| Residential real estate | — | 0.1 | — | — | — | ||||||||||
| Consumer | 0.2 | — | — | — | — | ||||||||||
| Total loans charged-off | 31.8 | 35.3 | 27.5 | 34.4 | 27.8 | ||||||||||
| Net loan charge-offs | 31.1 | 29.6 | 25.8 | 34.1 | 26.6 | ||||||||||
| Balance, end of period | $ | 440.4 | $ | 394.7 | $ | 388.6 | $ | 373.8 | $ | 356.6 | |||||
| Allowance for unfunded loan commitments | |||||||||||||||
| Balance, beginning of period | $ | 39.2 | $ | 35.1 | $ | 39.5 | $ | 37.6 | $ | 35.9 | |||||
| Provision for (recovery of) credit losses (1) | 3.1 | 4.1 | (4.4) | 1.9 | 1.7 | ||||||||||
| Balance, end of period (2) | $ | 42.3 | $ | 39.2 | $ | 35.1 | $ | 39.5 | $ | 37.6 | |||||
| Components of the allowance for credit losses on loans | |||||||||||||||
| Allowance for loan losses | $ | 440.4 | $ | 394.7 | $ | 388.6 | $ | 373.8 | $ | 356.6 | |||||
| Allowance for unfunded loan commitments | 42.3 | 39.2 | 35.1 | 39.5 | 37.6 | ||||||||||
| Total allowance for credit losses on loans | $ | 482.7 | $ | 433.9 | $ | 423.7 | $ | 413.3 | $ | 394.2 | |||||
| Net charge-offs to average loans - annualized | 0.22 | % | 0.22 | % | 0.20 | % | 0.25 | % | 0.20 | % | |||||
| Allowance ratios | |||||||||||||||
| Allowance for loan losses to funded HFI loans (3) | 0.78 | % | 0.71 | % | 0.71 | % | 0.70 | % | 0.67 | % | |||||
| Allowance for credit losses to funded HFI loans (3) | 0.85 | 0.78 | 0.77 | 0.77 | 0.74 | ||||||||||
| Allowance for loan losses to nonaccrual HFI loans | 84 | 92 | 86 | 79 | 102 | ||||||||||
| Allowance for credit losses to nonaccrual HFI loans | 92 | 102 | 94 | 87 | 113 |
(1) The above tables reflect the provision for credit losses on funded and unfunded loans. For the three months ended September 30, 2025, recovery of credit losses totaled $0.3 million for AFS investment securities and provision for credit losses totaled $0.4 million for HTM investment securities. The allowance for credit losses on AFS and HTM investment securities totaled zero and $12.0 million, respectively, as of September 30, 2025.
(2) The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.
(3) Ratio includes an allowance for credit losses of $11.8 million as of September 30, 2025 related to a pool of loans covered under three separate credit linked note transactions.
| Western Alliance Bancorporation and Subsidiaries | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset Quality Metrics | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | |||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | |||||||||||
| (dollars in millions) | |||||||||||||||
| Nonaccrual loans and repossessed assets | |||||||||||||||
| Nonaccrual loans | $ | 522 | $ | 427 | $ | 451 | $ | 476 | $ | 349 | |||||
| Nonaccrual loans to funded HFI loans | 0.92 | % | 0.76 | % | 0.82 | % | 0.89 | % | 0.65 | % | |||||
| Repossessed assets | $ | 130 | $ | 218 | $ | 51 | $ | 52 | $ | 8 | |||||
| Nonaccrual loans and repossessed assets to total assets | 0.72 | % | 0.74 | % | 0.60 | % | 0.65 | % | 0.45 | % | |||||
| Loans Past Due | |||||||||||||||
| Loans past due 90 days, still accruing (1) | $ | 49 | $ | 51 | $ | 44 | $ | — | $ | 4 | |||||
| Loans past due 90 days, still accruing to funded HFI loans | 0.09 | % | 0.09 | % | 0.08 | % | — | % | 0.01 | % | |||||
| Loans past due 30 to 89 days, still accruing (2) | $ | 196 | $ | 175 | $ | 182 | $ | 92 | $ | 110 | |||||
| Loans past due 30 to 89 days, still accruing to funded HFI loans | 0.35 | % | 0.31 | % | 0.33 | % | 0.17 | % | 0.21 | % | |||||
| Other credit quality metrics | |||||||||||||||
| Special mention loans | $ | 292 | $ | 444 | $ | 460 | $ | 392 | $ | 502 | |||||
| Special mention loans to funded HFI loans | 0.52 | % | 0.79 | % | 0.84 | % | 0.73 | % | 0.94 | % | |||||
| Classified loans on accrual | $ | 476 | $ | 615 | $ | 693 | $ | 480 | $ | 479 | |||||
| Classified loans on accrual to funded HFI loans | 0.84 | % | 1.10 | % | 1.27 | % | 0.89 | % | 0.90 | % | |||||
| Classified assets | $ | 1,129 | $ | 1,261 | $ | 1,195 | $ | 1,009 | $ | 838 | |||||
| Classified assets to total assets | 1.24 | % | 1.45 | % | 1.44 | % | 1.25 | % | 1.05 | % |
(1) Excludes government guaranteed residential mortgage loans of $282 million, $326 million, $275 million, $326 million, and $313 million as of each respective date in the table above.
(2) Excludes government guaranteed residential mortgage loans of $149 million, $168 million, $161 million, $183 million, and $203 million as of each respective date in the table above.
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Analysis of Average Balances, Yields and Rates | ||||||||||||
| Unaudited | ||||||||||||
| Three Months Ended | ||||||||||||
| September 30, 2025 | June 30, 2025 | |||||||||||
| Average <br>Balance | Interest | Average Yield / <br>Cost | Average <br>Balance | Interest | Average Yield /<br>Cost | |||||||
| (dollars in millions) | ||||||||||||
| Interest earning assets | ||||||||||||
| Loans HFS | $ | 5,009 | $ | 77.1 | 6.11 | % | $ | 4,859 | $ | 74.0 | 6.11 | % |
| Loans HFI: | ||||||||||||
| Commercial and industrial | 25,216 | 410.9 | 6.51 | 24,094 | 392.1 | 6.58 | ||||||
| CRE - non-owner occupied | 10,473 | 190.8 | 7.23 | 10,253 | 181.9 | 7.12 | ||||||
| CRE - owner occupied | 1,688 | 25.2 | 6.05 | 1,788 | 26.7 | 6.11 | ||||||
| Construction and land development | 4,233 | 88.8 | 8.32 | 4,290 | 88.7 | 8.29 | ||||||
| Residential real estate | 14,557 | 155.1 | 4.23 | 14,399 | 150.3 | 4.19 | ||||||
| Consumer | 24 | 0.4 | 7.43 | 32 | 0.6 | 7.07 | ||||||
| Total HFI loans (1), (2), (3) | 56,191 | 871.2 | 6.18 | 54,856 | 840.3 | 6.17 | ||||||
| Investment securities: | ||||||||||||
| Taxable | 17,794 | 208.2 | 4.64 | 15,099 | 177.4 | 4.71 | ||||||
| Tax-exempt | 2,193 | 23.5 | 5.32 | 2,215 | 24.1 | 5.46 | ||||||
| Total investment securities (1) | 19,987 | 231.7 | 4.72 | 17,314 | 201.5 | 4.81 | ||||||
| Cash and other | 4,147 | 45.5 | 4.35 | 3,496 | 38.6 | 4.43 | ||||||
| Total interest earning assets | 85,334 | 1,225.5 | 5.74 | 80,525 | 1,154.4 | 5.80 | ||||||
| Non-interest earning assets | ||||||||||||
| Cash and due from banks | 397 | 346 | ||||||||||
| Allowance for credit losses | (414) | (403) | ||||||||||
| Bank owned life insurance | 1,038 | 1,026 | ||||||||||
| Other assets | 4,957 | 4,905 | ||||||||||
| Total assets | $ | 91,312 | $ | 86,399 | ||||||||
| Interest-bearing liabilities | ||||||||||||
| Interest-bearing deposits: | ||||||||||||
| Interest-bearing demand accounts | $ | 16,071 | $ | 101.4 | 2.50 | % | $ | 15,707 | $ | 97.2 | 2.48 | % |
| Savings and money market | 23,373 | 189.4 | 3.21 | 21,736 | 170.6 | 3.15 | ||||||
| Certificates of deposit | 10,124 | 107.4 | 4.21 | 10,084 | 110.0 | 4.38 | ||||||
| Total interest-bearing deposits | 49,568 | 398.2 | 3.19 | 47,527 | 377.8 | 3.19 | ||||||
| Short-term borrowings | 2,577 | 30.2 | 4.66 | 3,048 | 35.7 | 4.69 | ||||||
| Long-term debt | 2,905 | 40.4 | 5.52 | 2,498 | 35.1 | 5.64 | ||||||
| Qualifying debt | 678 | 6.3 | 3.63 | 826 | 8.2 | 4.01 | ||||||
| Total interest-bearing liabilities | 55,728 | 475.1 | 3.38 | 53,899 | 456.8 | 3.40 | ||||||
| Interest cost of funding earning assets | 2.21 | 2.28 | ||||||||||
| Non-interest-bearing liabilities | ||||||||||||
| Non-interest-bearing deposits | 26,438 | 23,569 | ||||||||||
| Other liabilities | 1,539 | 1,576 | ||||||||||
| Equity | 7,607 | 7,355 | ||||||||||
| Total liabilities and equity | $ | 91,312 | $ | 86,399 | ||||||||
| Net interest income and margin (4) | $ | 750.4 | 3.53 | % | $ | 697.6 | 3.53 | % |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.7 million and $10.2 million for the three months ended September 30, 2025 and June 30, 2025, respectively.
(2) Included in the yield computation are net loan fees of $28.1 million and $25.5 million for the three months ended September 30, 2025 and June 30, 2025, 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, 2025 | September 30, 2024 | |||||||||||
| Average <br>Balance | Interest | Average Yield / <br>Cost | Average <br>Balance | Interest | Average Yield /<br>Cost | |||||||
| (dollars in millions) | ||||||||||||
| Interest earning assets | ||||||||||||
| Loans HFS | $ | 5,009 | $ | 77.1 | 6.11 | % | $ | 4,288 | $ | 66.9 | 6.21 | % |
| Loans HFI: | ||||||||||||
| Commercial and industrial | 25,216 | 410.9 | 6.51 | 21,982 | 392.0 | 7.15 | ||||||
| CRE - non-owner occupied | 10,473 | 190.8 | 7.23 | 9,689 | 190.4 | 7.83 | ||||||
| CRE - owner occupied | 1,688 | 25.2 | 6.05 | 1,833 | 28.2 | 6.23 | ||||||
| Construction and land development | 4,233 | 88.8 | 8.32 | 4,757 | 110.7 | 9.26 | ||||||
| Residential real estate | 14,557 | 155.1 | 4.23 | 14,441 | 156.1 | 4.30 | ||||||
| Consumer | 24 | 0.4 | 7.43 | 53 | 1.0 | 7.15 | ||||||
| Total loans HFI (1), (2), (3) | 56,191 | 871.2 | 6.18 | 52,755 | 878.4 | 6.65 | ||||||
| Investment securities: | ||||||||||||
| Taxable | 17,794 | 208.2 | 4.64 | 14,321 | 173.4 | 4.82 | ||||||
| Tax-exempt | 2,193 | 23.5 | 5.32 | 2,225 | 23.7 | 5.33 | ||||||
| Total investment securities (1) | 19,987 | 231.7 | 4.72 | 16,546 | 197.1 | 4.89 | ||||||
| Cash and other | 4,147 | 45.5 | 4.35 | 4,206 | 57.6 | 5.44 | ||||||
| Total interest earning assets | 85,334 | 1,225.5 | 5.74 | 77,795 | 1,200.0 | 6.19 | ||||||
| Non-interest earning assets | ||||||||||||
| Cash and due from banks | 397 | 278 | ||||||||||
| Allowance for credit losses | (414) | (366) | ||||||||||
| Bank owned life insurance | 1,038 | 973 | ||||||||||
| Other assets | 4,957 | 4,409 | ||||||||||
| Total assets | $ | 91,312 | $ | 83,089 | ||||||||
| Interest bearing liabilities | ||||||||||||
| Interest bearing deposits: | ||||||||||||
| Interest bearing demand accounts | $ | 16,071 | $ | 101.4 | 2.50 | % | $ | 16,456 | $ | 126.2 | 3.05 | % |
| Savings and money market accounts | 23,373 | 189.4 | 3.21 | 18,092 | 166.3 | 3.66 | ||||||
| Certificates of deposit | 10,124 | 107.4 | 4.21 | 10,134 | 129.6 | 5.09 | ||||||
| Total interest bearing deposits | 49,568 | 398.2 | 3.19 | 44,682 | 422.1 | 3.76 | ||||||
| Short-term borrowings | 2,577 | 30.2 | 4.66 | 4,214 | 57.8 | 5.46 | ||||||
| Long-term debt | 2,905 | 40.4 | 5.52 | 569 | 13.7 | 9.57 | ||||||
| Qualifying debt | 678 | 6.3 | 3.63 | 897 | 9.5 | 4.23 | ||||||
| Total interest bearing liabilities | 55,728 | 475.1 | 3.38 | 50,362 | 503.1 | 3.97 | ||||||
| Interest cost of funding earning assets | 2.21 | 2.58 | ||||||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 26,438 | 24,638 | ||||||||||
| Other liabilities | 1,539 | 1,457 | ||||||||||
| Equity | 7,607 | 6,632 | ||||||||||
| Total liabilities and equity | $ | 91,312 | $ | 83,089 | ||||||||
| Net interest income and margin (4) | $ | 750.4 | 3.53 | % | $ | 696.9 | 3.61 | % |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $9.7 million and $10.0 million for the three months ended September 30, 2025 and 2024, respectively.
(2) Included in the yield computation are net loan fees of $28.1 million and $21.7 million for the three months ended September 30, 2025 and 2024, respectively.
(3) Includes non-accrual loans.
(4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Analysis of Average Balances, Yields and Rates | ||||||||||||
| Unaudited | ||||||||||||
| Nine Months Ended | ||||||||||||
| September 30, 2025 | September 30, 2024 | |||||||||||
| Average <br>Balance | Interest | Average Yield / <br>Cost | Average <br>Balance | Interest | Average Yield /<br>Cost | |||||||
| (dollars in millions) | ||||||||||||
| Interest earning assets | ||||||||||||
| Loans HFS | $ | 4,725 | $ | 217.7 | 6.16 | % | $ | 3,192 | $ | 149.1 | 6.24 | % |
| Loans HFI: | ||||||||||||
| Commercial and industrial | 24,056 | 1,168.9 | 6.55 | 20,220 | 1,107.8 | 7.38 | ||||||
| CRE - non-owner occupied | 10,247 | 547.8 | 7.15 | 9,613 | 560.6 | 7.80 | ||||||
| CRE - owner occupied | 1,785 | 80.7 | 6.15 | 1,835 | 83.5 | 6.18 | ||||||
| Construction and land development | 4,309 | 269.2 | 8.36 | 4,806 | 340.0 | 9.45 | ||||||
| Residential real estate | 14,435 | 457.5 | 4.24 | 14,565 | 470.0 | 4.31 | ||||||
| Consumer | 34 | 1.8 | 6.99 | 54 | 2.9 | 7.14 | ||||||
| Total loans HFI (1), (2), (3) | 54,866 | 2,525.9 | 6.18 | 51,093 | 2,564.8 | 6.74 | ||||||
| Investment securities: | ||||||||||||
| Taxable | 15,322 | 529.2 | 4.62 | 13,027 | 461.0 | 4.73 | ||||||
| Tax-exempt | 2,221 | 72.0 | 5.44 | 2,217 | 70.6 | 5.34 | ||||||
| Total investment securities (1) | 17,543 | 601.2 | 4.72 | 15,244 | 531.6 | 4.82 | ||||||
| Cash and other | 3,909 | 130.7 | 4.47 | 3,716 | 157.0 | 5.64 | ||||||
| Total interest earning assets | 81,043 | 3,475.5 | 5.78 | 73,245 | 3,402.5 | 6.26 | ||||||
| Non-interest earning assets | ||||||||||||
| Cash and due from banks | 358 | 285 | ||||||||||
| Allowance for credit losses | (405) | (355) | ||||||||||
| Bank owned life insurance | 1,026 | 451 | ||||||||||
| Other assets | 4,862 | 4,501 | ||||||||||
| Total assets | $ | 86,884 | $ | 78,127 | ||||||||
| Interest bearing liabilities | ||||||||||||
| Interest bearing deposits: | ||||||||||||
| Interest bearing demand accounts | $ | 15,883 | $ | 298.5 | 2.51 | % | $ | 16,693 | $ | 379.4 | 3.04 | % |
| Savings and money market accounts | 22,113 | 524.7 | 3.17 | 16,644 | 442.4 | 3.55 | ||||||
| Certificates of deposit | 10,076 | 331.1 | 4.39 | 10,230 | 391.2 | 5.11 | ||||||
| Total interest bearing deposits | 48,072 | 1,154.3 | 3.21 | 43,567 | 1,213.0 | 3.72 | ||||||
| Short-term borrowings | 2,452 | 86.7 | 4.72 | 4,032 | 170.4 | 5.65 | ||||||
| Long-term debt | 2,686 | 112.1 | 5.58 | 483 | 38.1 | 10.51 | ||||||
| Qualifying debt | 800 | 23.8 | 3.97 | 896 | 28.6 | 4.26 | ||||||
| Total interest bearing liabilities | 54,010 | 1,376.9 | 3.41 | 48,978 | 1,450.1 | 3.95 | ||||||
| Interest cost of funding earning assets | 2.27 | 2.65 | ||||||||||
| Non-interest bearing liabilities | ||||||||||||
| Non-interest bearing deposits | 24,051 | 21,284 | ||||||||||
| Other liabilities | 1,534 | 1,481 | ||||||||||
| Equity | 7,289 | 6,384 | ||||||||||
| Total liabilities and equity | $ | 86,884 | $ | 78,127 | ||||||||
| Net interest income and margin (4) | $ | 2,098.6 | 3.51 | % | $ | 1,952.4 | 3.61 | % |
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $30.1 million and $29.5 million for the nine months ended September 30, 2025 and 2024, respectively.
(2) Included in the yield computation are net loan fees of $77.4 million and $86.9 million for the nine months ended September 30, 2025 and 2024, respectively.
(3) Includes non-accrual loans.
(4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
| Western Alliance Bancorporation and Subsidiaries | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||||||||||||||
| Unaudited | Pre-Provision Net Revenue by Quarter: | |||||||||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | ||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||
| Net interest income | $ | 750.4 | $ | 697.6 | $ | 650.6 | $ | 666.5 | $ | 696.9 | ||||||||||||||||||||||
| Total non-interest income | 187.8 | 148.3 | 127.4 | 171.9 | 126.2 | |||||||||||||||||||||||||||
| Net revenue | $ | 938.2 | $ | 845.9 | $ | 778.0 | $ | 838.4 | $ | 823.1 | ||||||||||||||||||||||
| Total non-interest expense | 544.4 | 514.7 | 500.4 | 519.0 | 537.4 | |||||||||||||||||||||||||||
| Pre-provision net revenue (1) | $ | 393.8 | $ | 331.2 | $ | 277.6 | $ | 319.4 | $ | 285.7 | ||||||||||||||||||||||
| Adjusted for: | ||||||||||||||||||||||||||||||||
| Provision for credit losses | 80.0 | 39.9 | 31.2 | 60.0 | 33.6 | |||||||||||||||||||||||||||
| Income tax expense | 53.3 | 53.5 | 47.3 | 42.5 | 52.3 | |||||||||||||||||||||||||||
| Net income | $ | 260.5 | $ | 237.8 | $ | 199.1 | $ | 216.9 | $ | 199.8 | Efficiency Ratio (Tax Equivalent Basis) by Quarter: | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | ||||||||||||||||||||||||||||
| (dollars in millions) | ||||||||||||||||||||||||||||||||
| Total non-interest expense | $ | 544.4 | $ | 514.7 | $ | 500.4 | $ | 519.0 | $ | 537.4 | ||||||||||||||||||||||
| Less: Deposit costs | 175.1 | 147.4 | 136.8 | 174.5 | 208.0 | |||||||||||||||||||||||||||
| Total non-interest expense, excluding deposit costs | 369.3 | 367.3 | 363.6 | 344.5 | 329.4 | |||||||||||||||||||||||||||
| Divided by: | ||||||||||||||||||||||||||||||||
| Total net interest income | 750.4 | 697.6 | 650.6 | 666.5 | 696.9 | |||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||
| Tax equivalent interest adjustment | 9.7 | 10.2 | 10.2 | 10.0 | 10.0 | |||||||||||||||||||||||||||
| Total non-interest income | 187.8 | 148.3 | 127.4 | 171.9 | 126.2 | |||||||||||||||||||||||||||
| Less: Deposit costs | 175.1 | 147.4 | 136.8 | 174.5 | 208.0 | |||||||||||||||||||||||||||
| $ | 772.8 | $ | 708.7 | $ | 651.4 | $ | 673.9 | $ | 625.1 | |||||||||||||||||||||||
| Efficiency ratio (2) | 57.4 | % | 60.1 | % | 63.5 | % | 61.2 | % | 64.5 | % | ||||||||||||||||||||||
| Efficiency ratio, adjusted for deposit costs (2) | 47.8 | % | 51.8 | % | 55.8 | % | 51.1 | % | 52.7 | % | Tangible Common Equity: | |||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||||||||||
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | ||||||||||||||||||||||||||||
| (dollars and shares in millions, except per share data) | ||||||||||||||||||||||||||||||||
| Total equity | $ | 7,690 | $ | 7,407 | $ | 7,215 | $ | 6,707 | $ | 6,677 | ||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Goodwill and intangible assets | 651 | 653 | 656 | 659 | 661 | |||||||||||||||||||||||||||
| Preferred stock | 295 | 295 | 295 | 295 | 295 | |||||||||||||||||||||||||||
| Noncontrolling interest in subsidiary | 293 | 293 | 293 | — | — | |||||||||||||||||||||||||||
| Total tangible common equity | 6,451 | 6,166 | 5,971 | 5,753 | 5,721 | |||||||||||||||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
| Total tangible common equity, net of tax | $ | 6,453 | $ | 6,168 | $ | 5,973 | $ | 5,755 | $ | 5,723 | ||||||||||||||||||||||
| Total assets | $ | 90,970 | $ | 86,725 | $ | 83,043 | $ | 80,934 | $ | 80,080 | ||||||||||||||||||||||
| Less: goodwill and intangible assets, net | 651 | 653 | 656 | 659 | 661 | |||||||||||||||||||||||||||
| Tangible assets | 90,319 | 86,072 | 82,387 | 80,275 | 79,419 | |||||||||||||||||||||||||||
| Plus: deferred tax - attributed to intangible assets | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||||||||||
| Total tangible assets, net of tax | $ | 90,321 | $ | 86,074 | $ | 82,389 | $ | 80,277 | $ | 79,421 | ||||||||||||||||||||||
| Tangible common equity ratio (3) | 7.1 | % | 7.2 | % | 7.2 | % | 7.2 | % | 7.2 | % | ||||||||||||||||||||||
| Common shares outstanding | 110.2 | 110.4 | 110.4 | 110.1 | 110.1 | |||||||||||||||||||||||||||
| Tangible book value per share, net of tax (3) | $ | 58.56 | $ | 55.87 | $ | 54.10 | $ | 52.27 | $ | 51.98 | ||||||||||||||||||||||
| Non-GAAP Financial Measures Footnotes | ||||||||||||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||||||||||
| (1) | We believe this non-GAAP measurement is a key indicator of the earnings power of the Company. | |||||||||||||||||||||||||||||||
| (2) | We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company. | |||||||||||||||||||||||||||||||
| (3) | We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company. |
17
walq32025earningspresent
EARNINGS CALL 3rd Quarter 2025 October 22, 2025
2 This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends, including our statements on the slide entitled "Management Outlook." The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; any adverse determination by a court regarding the Cantor Group V loan and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this presentation to reflect new information, future events or otherwise, except to the extent required by federal securities laws. In light of these risks, uncertainties and assumptions, the forward-looking events in this presentation might not occur, and you should not put undue reliance on any forward-looking statements. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Company’s press release as of and for the quarter ended September 30, 2025. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Forward-Looking Statements
3 3rd Quarter 2025 | Financial Highlights Earnings & Profitability Q3 2025 Q2 2025 Q3 2024 Earnings per Share $ 2.28 $ 2.07 $ 1.80 Net Income 260.5 237.8 199.8 Net Income Available to Common Stockholders 250.2 227.2 196.6 Net Revenue 938.2 845.9 823.1 Pre-Provision Net Revenue1 393.8 331.2 285.7 Net Interest Margin 3.53% 3.53% 3.61% Efficiency Ratio, Adjusted for Deposit Costs1 47.8 51.8 52.7 ROAA 1.13 1.10 0.96 ROATCE1 15.6 14.9 13.8 Balance Sheet & Capital Total Loans $ 56,646 $ 55,939 $ 53,346 Total Deposits 77,247 71,107 68,040 CET1 Ratio 11.3% 11.2% 11.2% TCE Ratio1 7.1 7.2 7.2 Tangible Book Value per Share1 $ 58.56 $ 55.87 $ 51.98 Asset Quality Provision for Credit Losses $ 80.0 $ 39.9 $ 33.6 Net Loan Charge-Offs 31.1 29.6 26.6 Net Loan Charge-Offs/Avg. Loans 0.22% 0.22% 0.20% Total Loan ACL/Funded HFI Loans2 0.85 0.78 0.74 NPLs/Funded HFI Loans 0.92 0.76 0.65 Dollars in millions, except EPS 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 2) Total Loan ACL includes an allowance for credit losses of $11.8 million as of September 30, 2025 related to a pool of loans covered under 3 separate credit linked notes. Q3 2025 Highlights Net Income EPS $260.5 million $2.28 30.4% Y-o-Y PPNR1 ROATCE1 Q3: $393.8 million 15.6% 37.8% Y-o-Y Loan Growth Capital Q3: $707 million CET1 Ratio: 11.3% 6.2% Y-o-Y TCE Ratio1: 7.1% Tangible Book Value PER SHARE1 NPLs / Total Loans $58.56 0.92% 12.7% Y-o-Y Commentary Related to the Cantor Group V loan, although the most recent appraisals indicate sufficient collateral coverage, our reserve methodology for a $98 million non-accrual loan resulted in a reserve of $30 million. This reserve & our portfolio’s qualitative overlays, raised Total Loan ACL/Funded Loans ratio to 0.85%.
4 Q3-25 Q2-25 Q3-24 Interest Income $ 1,225.5 $ 1,154.4 $ 1,200.0 Interest Expense (475.1) (456.8) (503.1) Net Interest Income $ 750.4 $ 697.6 $ 696.9 Service Charges and Loan Fees 35.4 36.9 30.1 Mortgage Banking Revenue 94.6 77.7 58.6 Gains on Securities Sales and FV Adj., Net 16.8 11.5 12.9 Other 41.0 22.2 24.6 Non-Interest Income $ 187.8 $ 148.3 $ 126.2 Net Revenue $ 938.2 $ 845.9 $ 823.1 Salaries and Employee Benefits (193.5) (179.9) (157.8) Deposit Costs (175.1) (147.4) (208.0) Insurance (24.5) (37.4) (35.4) Other (151.3) (150.0) (136.2) Non-Interest Expense $ (544.4) $ (514.7) $ (537.4) Pre-Provision Net Revenue1 $ 393.8 $ 331.2 $ 285.7 Provision for Credit Losses (80.0) (39.9) (33.6) Pre-Tax Income $ 313.8 $ 291.3 $ 252.1 Income Tax (53.3) (53.5) (52.3) Net Income $ 260.5 $ 237.8 $ 199.8 Net Income Available to Common Stockholders $ 250.2 $ 227.2 $ 196.6 Diluted Shares 109.8 109.6 109.5 Earnings Per Share $ 2.28 $ 2.07 $ 1.80 Net Interest Income increased $52.8 million over the prior quarter primarily due to higher average earning asset balances Non-Interest Income increased $39.5 million from Q2 primarily driven by Mortgage Banking Revenue ($16.9 million) Mortgage Banking Metrics • $15.2 billion mortgage loan production in Q3 (82% purchase / 18% refinance), up 10% compared to Q2 and up 13% to Q3-24 • $15.1 billion interest rate lock commitment volume in Q3, up 7% compared to Q2 and up 11% to Q3-24 • Gain on Sale margin2 of 27 bps in Q3, compared to 20 bps in Q2 and 20 bps in Q3-24 • $66.1 billion in servicing portfolio UPB Non-Interest Expense increased $29.7 million from Q2 primarily driven by the following: • Salaries and Employee Benefits rose $13.6 million • Deposit Costs increased $27.7 million Provision for Credit Losses of $80.0 million increased $40.1 million primarily due to $30 million reserve related to Cantor Group V loan 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 2) Gain on Sale margin represents spread as of the interest rate lock commitment date. Quarterly Income Statement Q3 2025 Highlights 1 2 3 1 2 4 Dollars in millions, except EPS 3 4
5 • Securities Portfolio yields decreased 9 bps, as average holdings of lower-yielding U.S. Treasury securities increased $2.1 billion quarter-over-quarter • Loan yields increased 1 bp, relatively consistent with the prior quarter • Cost of interest-bearing deposits remained flat, while total cost of funds decreased 8 bps to 2.29%, primarily driven by a reduction in borrowing costs • Cost of liability funding decreased 8 bps primarily due to lower rates on long-term and qualifying debt Interest Bearing Deposits and Cost Loans and HFI Yield Deposits, Borrowings, and Cost of Liability Funding Securities Portfolio and Yield $16.4 $15.1 $15.9 $18.6 $18.8 4.89% 4.67% 4.63% 4.81% 4.72% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $53.3 $53.7 $54.8 $55.9 $56.6$2.3 $2.3 $3.2 $3.0 $3.5 6.65% 6.34% 6.20% 6.17% 6.18% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $43.1 $47.5 $47.3 $48.1 $50.6 3.76% 3.49% 3.26% 3.19% 3.19% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $43.1 $47.5 $47.3 $48.1 $50.6 $25.0 $18.8 $22.0 $23.0 $26.6 $3.9 $6.5 $5.0 $6.7 $4.5 2.67% 2.52% 2.42% 2.37% 2.29% Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Non-Interest Bearing Deposits Total Borrowings Q3 2025 Highlights Net Interest Drivers Dollars in billions, unless otherwise indicated Interest Bearing DepositsInterest Bearing Deposits Total Investments HFI Loans HFS Loans
6 • Net Interest Income increased $52.8 million, or 7.6%, primarily due to a higher average balance of interest earning assets (AEA) • Average Earning Assets increased $4.8 billion, or 6.0%, primarily from growth in investment securities and HFI loans • NIM was flat, as the impact of slightly higher loan yields and lower debt costs offset lower security yields and stable interest-bearing deposit costs Net Interest Income and Net Interest Margin $696.9 $666.5 $650.6 $697.6 $750.4 3.61% 3.48% 3.47% 3.53% 3.53% Net Interest Margin Net Interest Income Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $77.8 $77.3 $77.2 $80.5 $85.3 $52.8 $53.5 $53.5 $54.9 $56.2 $4.3 $4.5 $4.3 $4.9 $5.0 $16.5 $15.8 $15.3 $17.3 $20.0 $4.2 $3.5 $4.1 $3.5 $4.1 6.19% 5.91% 5.81% 5.80% 5.74% Loans Loans HFS Securities Cash & Other Average Yield Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Average Earning Assets & Average Yield Dollars in millions Dollars in billions Net Interest Income Q3 2025 Highlights 5% 21% 6% 4% 22% 6% 5% 23% 6% 68% 68% 66%
7 • Adjusted efficiency ratio1 (excluding deposit costs) decreased 400 bps to 47.8%, and decreased 490 bps from the same period last year – Total Non-Interest Expense (Ex. Deposit Costs) increased $2.0 million to $369.3 million • Efficiency ratio1 decreased 270 bps to 57.4%, and decreased 710 bps from the same period last year • Deposit Costs increased $27.7 million to $175.1 million, primarily from higher average ECR-related deposit balances – Total ECR-related deposit balances of $28.0 billion in Q3-25 – Average ECR-related deposits of $28.3 billion in Q3-25 compared to $25.6 billion in Q2-25 and $27.8 billion in Q3-24 $537.4 $519.0 $500.4 $514.7 $544.4 64.5% 61.2% 63.5% 60.1% 57.4% 52.7% 51.1% 55.8% 51.8% 47.8% Non-Interest Expenses Efficiency Ratio Adj. Efficiency Ratio Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Dollars in millions Non-Interest Expense and Efficiency $157.8 $165.4 $182.4 $179.9 $193.5 $136.2 $142.4 $143.3 $150.0 $151.3 $35.4 $36.7 $37.9 $37.4 $24.5 $208.0 $174.5 $136.8 $147.4 $175.1 Deposit Costs Insurance Other Operating Expenses Salaries & Employee Benefits Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q3 2025 Highlights Non-Interest Expense and Efficiency Ratio1 1) Refer to slide 2 for further discussion of non-GAAP financial measures. Breakdown of Non-Interest Expenses Non-Interest Expenses (Ex. Deposit Costs) $ 329.4 $ 344.5 $ 363.6 $ 367.3 $ 369.3
8 Interest Rate Sensitivity Q3 2025 Highlights • A Ramp Scenario assumes a dynamic balance sheet and reflects an asset sensitive position on NII and a relatively neutral position on EaR – WAL estimates a -100 bps ramp to reduce NII by (2.2)% • EaR is interest rate neutral, with 0.3% impact to earnings2 from a -100 bps ramp – The reduction in asset sensitivity from NII to EaR is driven by the estimated decrease in ECR-related deposit costs and increase in Mortgage Banking Revenue • Of total earning assets, 65% are variable with 49% repricing to SOFR • Variable liabilities represent 85% of total earning assets and are primarily modeled to changes in Fed Funds – Non-Maturity Deposit rates, including ECRs, are estimated to have a 65% beta (2.2)% 3.4% Down 100 Up 100 0.3% 1.4% Down 100 Up 100 1) Projected using a simulation model that calculates the difference between a baseline forecast using forward yield curves, compared to forecasted results from a gradual, parallel increase in rates over a 12-month period (“Ramp”). 2) Earnings defined as pre-tax net interest income adjusted for rate-sensitive non-interest income and expense accounts. NII Sensitivity - Ramp Scenario1 Earnings-at-Risk - Ramp Scenario1
9 Q3-25 Q2-25 Q3-24 Securities and Cash $ 24,597 $ 21,368 $ 18,974 Loans, HFS 3,502 3,022 2,327 Loans, HFI 56,646 55,939 53,346 Allowance for Loan Losses (440) (395) (357) Mortgage Servicing Rights 1,213 1,044 1,011 Goodwill and Intangibles 651 653 661 Other Assets 4,801 5,094 4,118 Total Assets $ 90,970 $ 86,725 $ 80,080 Deposits $ 77,247 $ 71,107 $ 68,040 Borrowings 3,862 6,052 2,995 Qualifying Debt 681 678 898 Other Liabilities 1,490 1,481 1,470 Total Liabilities $ 83,280 $ 79,318 $ 73,403 Total Equity 7,690 7,407 6,677 Total Liabilities and Equity $ 90,970 $ 86,725 $ 80,080 Tangible Book Value Per Share1 $ 58.56 $ 55.87 $ 51.98 Dollars in millions, except per share data Consolidated Balance Sheet Q3 2025 Highlights 1 2 3 4 5 Securities and Cash increased $3.2 billion, or 15.1%, to $24.6 billion, and increased $5.6 billion, or 29.6%, over prior year Loans, HFI increased $707 million, or 1.3%, and increased $3.3 billion, or 6.2%, over prior year Deposits increased $6.1 billion, or 8.6%, and increased $9.2 billion, or 13.5%, over prior year Borrowings decreased $2.2 billion as strong deposit growth facilitated a reduction in overnight borrowings Equity increased $283 million primarily due to net income and AOCI gains, partially offset by dividends Tangible Book Value/Share1 increased $2.69, or 4.8%, and increased $6.58, or 12.7%, over prior year – Completed $25.0 million in repurchases, or 300,833 shares, through October 17 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 6 1 2 3 4 5 6
10 $3.3 Billion Year-over-Year Growth $22.6 $23.1 $24.1 $24.9 $25.7 $1.8 $1.8 $1.8 $1.7 $1.7 $9.8 $9.9 $10.1 $10.3 $10.5 $4.7 $4.5 $4.5 $4.5 $4.1 $14.4 $14.4 $14.3 $14.5 $14.6 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 27.1% 3.4% 18.4% 42.3% 8.8% 25.9% 3.0% 18.5% 45.4% 7.2% Residential & Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial $53.3 +$0.9 $53.7 +$0.3 $54.8 +$1.1 $55.9 +$1.2 $56.6 +$0.7 Dollars in billions, unless otherwise indicated Total Loans, HFI Qtr Change Loan Composition Q3 2025 Highlights Increase (Decrease) by Loan Type: (in millions) QoQ YoY C&I $ 814 $ 3,183 CRE, Non-OO 232 686 Residential & Consumer 189 228 Construction & Land (461) (662) CRE, OO (67) (135) Total $ 707 $ 3,300 25.9% 3.1% 18.3% 44.6% 8.1% 4.23% 6.05% 7.23% 6.51% 8.32% Q3-25 Avg. Yields1 Total Yield 6.18% 1) Average yields on loans have been adjusted to a tax equivalent basis. Loan growth from C&I businesses within Regional Banking and National Business Lines 50% 25% 25% Regional Banking National Business Lines Residential Loan Composition
11 Diversified deposit growth across Specialty Escrow Services and National Business Lines Q3 2025 Highlights $25.0 $18.8 $22.0 $23.0 $26.6 $13.8 $15.9 $15.5 $15.7 $16.4 $19.6 $21.2 $21.7 $22.2 $24.6 $9.6 $10.4 $10.1 $10.2 $9.6 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 20.3% 14.2% 36.7% 28.8% 21.2% 12.4% 34.5% 31.9% $9.2 Billion Year-over-Year Growth CDs Savings and MMA Interest Bearing DDA Non-Interest Bearing $66.3 $(1.7) $68.0 +$1.8 $71.1 +$1.8 $77.2 +$6.1 Increase (Decrease) by Deposit Type: (in millions) QoQ YoY Non-Interest Bearing $ 3,631 $ 1,663 Savings and MMA 2,396 5,052 Interest-Bearing DDA 748 2,576 CDs (635) (84) Total $ 6,140 $ 9,207 $69.3 +$3.0 Total Deposits Qtr Change Deposit Composition Q3-25 Avg. Costs Total Cost 2.08% Dollars in billions, unless otherwise indicated 4.21% 2.50% N/A 3.21% 22.0% 14.4% 32.3% 31.3% Deposit Composition • 34% of total deposits are non-interest bearing – Approximately 31% have no ECRs 30% 40% 14% 8% 8% Regional Banking National Business Lines Specialty Escrow Svcs¹ Consumer Digital Other 1) Specialty Escrow Services includes: Business Escrow Services, Corporate Trust, Juris Banking, and other deposit initiatives.
12 1.05% 1.25% 1.44% 1.45% 1.24% 0.45% 0.65% 0.60% 0.74% 0.72% 0.65% 0.89% 0.82% 0.76% 0.92% Classified Assets / Total Assets NPLs + OREO / Total Assets NPLs / Funded HFI Loans Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $838 $1,009 $1,195 $1,261 $1,129 $8 $52 $51 $218 $130 $349 $476 $451 $427 $522$481 $481 $693 $616 $477 OREO Non-Performing Loans Classified Accruing Assets Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Dollars in millions Asset Quality RatiosSpecial Mention Loans • Criticized Loans decreased $196 million quarterly to $1.3 billion – Special Mention Loans decreased $152 million to $292 million (52 bps to Funded Loans) – Total Classified Accruing Loans decreased $139 million to $476 million (84 bps to Funded Loans) – Non-Performing Loans increased $95 million to $522 million (92 bps to Funded HFI Loans) ▪ OREO decreased $88 million to $130 million (14 bps to Total Assets) – Supported by 'as-is' valuations and aggregate operating revenues in excess of expenses • Over the last 10+ years, only ~2% of Special Mention loans have migrated to loss Classified Assets $502 $392 $460 $444 $292 0.94% 0.73% 0.84% 0.79% 0.52% Special Mention Loans SM / Funded Loans Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q3 2025 Highlights Classified Assets Mix 34% 4% 13% 2% CRE Investor C&I Resi Construction CRE OO 13% Other 34% Office Asset Quality
13 $27.8 $34.4 $27.5 $35.3 $31.8 $(1.2) $(0.3) $(1.7) $(5.7) $(0.7) Gross Charge-Offs Recoveries Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 $357 $374 $389 $395 $440 $38 $40 $35 $39 $42 $10 $17 $12 $12 $12 Loan Losses Unfunded Loan Commits. HTM and AFS Securities Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 0.74% 0.77% 0.77% 0.78% 0.85% 113% 87% 94% 102% 92% Total Loan ACL / Funded Loans Total Loan ACL / Non-Performing Loans Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Dollars in millions • Provision Expense of $80.0 million, primarily reflective of net charge-offs, a reserve related to Cantor Group V loan, and qualitative overlays • Net Loan Charge-Offs of $31.1 million, 22 bps, compared to $29.6 million, 22 bps, in Q2 • Total Loan ACL / Funded Loans3 increased 7 bps to 0.85% – Total Loan ACL / Funded Loans3 less loans covered by CLNs is 1.00% • 16% of the loan portfolio is credit protected, consisting of government guaranteed, CLN protected4, and cash secured assets Credit Losses and ACL Ratios Q3 2025 Highlights Gross Loan Charge-offs and RecoveriesAllowance for Credit Losses Loan ACL Adequacy Ratios 2,3 1) Included as a component of other liabilities on the balance sheet. 2) Total Loan ACL includes allowance for unfunded commitments. 3) Total Loan ACL includes an allowance for credit losses of $11.8 million as of September 30, 2025 related to a pool of loans covered under 3 separate credit linked notes. 4) As of September 30, 2025, CLNs cover a substantial portion of Residential ($8.2 billion) loans outstanding. 1 68% 25% 7% Mtg. Credit Intermediaries Business Credit Intermediaries Private Equity Funds Non-Depository Financial Institution Loans (NDFI) Total NDFI Loans: $13.6Bn NDFI (ex. Mortgage): $4.3Bn • 8% of Loans, HFI
14 • Reserve levels enhanced by credit protection and no-to-low-loss loan categories (Fund Banking, Residential & Mortgage Warehouse) • Total Loan ACL / Funded Loans1 of 0.85% – CLNs offer credit protection from first losses on covered reference pools in historically low loss loan categories – Total Loan ACL / Funded Loans less loans covered by CLNs is 1.00% – Total Loan ACL / Funded Loans less loans covered by CLNs & select no-to-low-loss loan categories is 1.40% • >5x historical maximum annual loss rate3 • Reserves are a multiple of average losses times portfolio duration – Est. weighted average duration of loan portfolio is <4 years – Adj. Total ACL covers >9.5x historical average annual loss rate3 x duration Q3 2025 Highlights Adjusted Total Loan ACL / Funded Loans: Q3-25 1) Total Loan ACL includes allowance for unfunded commitments and an allowance for credit losses of $11.8 million as of September 30, 2025 related to a pool of loans covered under 3 separate credit linked notes. 2) Early Buyout Loans are government guaranteed. 3) Loss rates are based on the period from Q1-14 to Q3-25. 4) Q3-25 for WAL and Q2-25 for peers. Source: S&P Global Market Intelligence. Peers consist of the other 23 major exchange-traded US banks with total assets between $50 and $250 billion as of June 30, 2025, excluding target banks of pending acquisitions. 5) Includes Mortgage Warehouse and MSR lines. Key Reserve Level Ratios Concentration in low-loss loan categories skews ACL lower relative to peers 0.85% 1.00% 1.02% 1.18% 1.40% 0.15% 0.02% 0.22% Total Loan ACL / Funded Loans Loans Covered by CLNs Fund Banking Loans Residential Loans Mortgage Warehouse Loans 1 2 3 4 5 0.13% Resi 1 Embedded Losses WAL vs. Peer Loan Composition4 (in millions) WAL Peer Median ~0 Mtg. Warehouse5 $6,574 12 % $264 — % Low Residential 14,651 26 % 10,431 23 % High Consumer 27 — % 2,725 6 % Typical Other Commercial 35,393 62 % 32,839 71 % Total $56,646 $46,259 Loan mix matters for reserves due to embedded loss content Normalizing for Loan Composition = Loan ACL > 1% 0.03% EBOs2 Dollars in millions 5
15 Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 1 0 WAL Peer 1 1 Peer 1 2 Peer 1 3 Peer 1 4 Peer 1 5 Peer 1 6 Peer 1 7 Peer 1 8 Peer 1 9 Peer 2 0 Peer 2 1 Peer 2 2 Peer 2 3 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% Source: S&P Global Market Intelligence (peer data). Peers consist of the other 23 major exchange-traded US banks with total assets between $50 and $250 billion as of June 30, 2025, excluding target banks of pending acquisitions. 1) Assumes CET1 capital of $6.7 billion and risk-weighted assets of $59.6 billion, adjusted for AOCI of $(409) million and allowance for loan losses of $440 million. 11.3%: Median 12.1%: 75th pctl 10.5%: 25th pctl Adjusted CET11 (incl. of AOCI Unrealized Securities Marks & Loan Loss Reserves) Fortified Adjusted Capital CET1 capital adjusted for AOCI securities marks & reserves remains solidly above peer median levels Q3 11.3% WAL
16 Regulatory Capital Ratios • Continue to exceed “well-capitalized” levels with CET1 of 11.3% Tangible Common Equity / Tangible Assets1 • TCE/TA decreased 10 bps to 7.1% Capital Accretion • Increase in CET1 quarter-over-quarter due to organic earnings strength • Total regulatory capital improved 10 bps after falling 40 bps in Q2-25 due to repayment of subordinated debt 11.2% 11.3% 11.1% 11.2% 11.3% 7.2% 7.2% 7.2% 7.2% 7.1% CET1 TCE/TA Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 14.1% 14.1% 14.5% 14.1% 14.2% 11.9% 11.9% 12.3% 12.3% 12.4% 7.8% 8.1% 8.6% 8.4% 8.1% Tier 1 Leverage Tier 1 Capital Total RBC Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q3 2025 Highlights Common Capital Ratios Capital Accumulation Regulatory Capital Ratios 1
17 474% 553% 94% 161% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 MRQ 0x 1x 2x 3x 4x 5x 6x Tangible Book Value per Share1 • TBVPS increased $2.69 to $58.56 from organic earnings – Increased 4.8% quarter-over-quarter, non- annualized – Increased 12.7% year-over-year – 17.7% CAGR since year end 2014 • TBVPS has increased more than 5x that of peers – Quarterly common stock cash dividend of $0.38 per share 1) Refer to slide 2 for further discussion of non-GAAP financial measures. 2) MRQ is Q3-25 for WAL and Q2-25 for peers. Source: S&P Global Market Intelligence. Peers consist of the other 23 major exchange-traded US banks with total assets between $50 and $250 billion as of June 30, 2025, excluding target banks of pending acquisitions. Q3 2025 Highlights Tangible Book Value Growth Long-Term Growth in TBV per Share1 WAL Peer Median with Dividends Added Back Peer Median WAL with Dividends Added Back 2
18 • Growth-oriented business model, focused on low risk, high return loan composition, has produced consistent, superior financial results • Above peer median profitability has bolstered TBVPS accumulation, a key driver of long-term total shareholder returns Highlights Source: S&P Global Market Intelligence. Peers consist of the other 23 major exchange-traded US banks with total assets between $50 and $250 billion as of June 30, 2025, excluding target banks of pending acquisitions. 1) Period from 9/30/2015 to 9/30/2025. 2) FY2014 to FY2024. 3) Through Q3-25 for WAL and Q2-25 for peers. WAL's Industry-Leading Performance Superior total shareholder returns driven by top-tier balance sheet growth and profitability 10-Year TSR1 10-Year EPS Growth2 10-Year TBVPS Growth2 222% 221% 127% 111% WAL Top Quartile Median Bottom Quartile 15% 11% 8% 7% WAL Top Quartile Median Bottom Quartile 18% 7% 5% 3% WAL Top Quartile Median Bottom Quartile 20% 14% 9% 5% WAL Top Quartile Median Bottom Quartile 22% 14% 10% 6% WAL Top Quartile Median Bottom Quartile 22% 11% 10% 5% WAL Top Quartile Median Bottom Quartile 14.6% 16.3% 14.3% 11.5% WAL Top Quartile Median Bottom Quartile 60.4% 56.0% 57.6% 62.4% WAL Top Quartile Median Bottom Quartile 3.50% 3.56% 3.34% 2.94% WAL Top Quartile Median Bottom Quartile 10-Year Loan Growth2 10-Year Deposit Growth2 10-Year Revenue Growth2 LTM NIM3 LTM Efficiency3 LTM ROATCE3
19 • Pipelines are healthy. Remain flexible based on environment.Balance Sheet Growth Capital (CET1) Net Interest Income Non-interest Income Non-interest Expense Net Charge-Offs Effective Tax Rate 2024 Baseline 2025 Outlook Loans (HFI): $53.7 bn Deposits: $66.3 bn L (HFI): +$5.0 bn D: +$8.5 bn 11.3% > 11% $2.62 bn Up 8% - 10% $543 mm Up 12% - 16% $2.025 bn 18 bps Up 2.5% - 4% ~ 20 bps ~ 21% ~ 20% NIE (Ex. Deposit Costs) ECR-Related Deposit Costs $1,465 - $1,505 mm $600 - $610 mm $1,332 mm $693 mm Management Outlook Commentary • ECR Deposit Costs (Q4-25E): $140 - $150 mm • Dependant on organic growth & share buybacks • Assumes 2 25 bps rate cuts • Prior: Up 8% - 10% • Prior: Up 1% - 4% • Prior: Up 8% - 10%
Questions & Answers
Appendix
22 Commercial Real Estate Investor Statistics CRE Investor Portfolio (At Origination or Most Recent Appraisal) Note: LTV data assumes all loans are fully funded; based on most recent appraisals or appraisals at origination and utilizing, in most cases, “as stabilized” values for income producing properties. Underwriting Criteria and Mitigating Factors Distribution by LTV • Low LTV & LTC (50% to low 60%) range underwriting in areas minimizes tail risk • Simple capital structure - no junior liens or mezzanine debt permitted within our structures • Majority of CRE Investor (bulk of total CRE) is located in our core footprint states • Early elevation, proactive and comprehensive review of CRE portfolio and re-margin discussions with sponsors where sweep/re-margin provisions have been triggered 14% 28% 35% 17% 2% 4% <=40% 41-50% 51-60% 61-70% 71-80% >80% 42% 21% 7% 9% 6% 4% 1% 1% 1% 1% 7% 52% 61% 52% 50% 44% 46% 58% 42% 29% 36% 53% Outstanding LTV Hotel Offi ce Retail Multif amily Industr ial Tim e Share Medical Senior C are Data Center Mini-S torage Other Low uncovered risk with re-margin provisions • Only $899 million of Multi-Family, concentrated in western regional markets • No exposure to NYC area Multi-Family Limited Multi-Family Exposure $10.5 billion; 19% of Total Loans
23 Commercial Real Estate Investor: Office Distribution by LTV (At Origination or Most Recent Appraisal) 5% 18% 37% 23% 3% 14% <=40% 41-50% 51-60% 61-70% 71-80% >80% Key MSA Exposures $2.2 Billion; 21% of Total CRE Investor; 4% of Total Loans Underwriting Criteria and Mitigating Factors • Primarily shorter-term bridge loans for repositioning or redevelopment projects • Strong sponsorship from institutional equity and large regional and national developers – All direct relationships generated by WAL – Significant up-front cash equity required from sponsors • Conservative loan-to-cost underwriting – Average LTV < 55%; Average LTC < 65% – No junior debt / mezzanine • Largely suburban exposure in “Work From Home” MSAs – Negligible exposure in CBD, 10% in Midtown and 90% in Suburban MSAs • Focused on B+ properties accompanied by attractive amenities or those in core locations with appropriate business plans to reposition – Class A: 62%, Class B: 33%, Class C: 5% • Dispersed maturities – 24% to mature in 2025, 36% to mature in 2026 and 40% to mature in 2027+ 90% 10% Suburban Midtown Note: LTV data assumes all loans are fully funded; based on most recent appraisals or, in most cases, appraisals at origination and utilizing “as stabilized” values for income producing properties.
24 Source: S&P Global Market Intelligence (peer data). Western Alliance data are preliminary as of September 30, 2025. Peer data as of June 30, 2025. Peers consist of US-based commercial banks with assets >$50 billion, as of June 30, 2025 using primary bank subsidiary Call Report data. Non-Depository Financial Institution (NDFI) Loans NDFI loan mix adjusted for low-loss Mortgage Credit Intermediaries aligns with peer median levels