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Form 8-K WESTERN ALLIANCE BANCORP For: Jul 21

July 21, 2022 4:29 PM
Western Alliance Bancorporation
wallogo10.jpg
One East Washington Street
Phoenix, AZ 85004
www.westernalliancebancorporation.com

PHOENIX--(BUSINESS WIRE)--July 21, 2022
SECOND QUARTER 2022 FINANCIAL RESULTS
Second Quarter Highlights:
Net incomeEarnings per share
PPNR1
Net interest margin
Efficiency ratio1
Book value per
common share
$260.2 million$2.39$351.1 million3.54%42.8%$43.07
$36.671, excluding
goodwill and intangibles
CEO COMMENTARY:
“Western Alliance's solid performance in the second quarter of 2022 produced record revenues, PPNR and earnings for the quarter,” said Kenneth Vecchione, President and Chief Executive Officer. “Our capital driven business model delivered strong quarterly results, achieving $260.2 million in net income and earnings per share of $2.39, an increase of 10.1% over prior year. Quarterly loan and deposit increases of $7.2 billion and $1.6 billion, respectively, lifted total assets to $66 billion. Quarterly net interest margin of 3.54% increased 22 basis points from prior quarter, driving net interest income higher by 16.8% to $525.0 million. Asset quality remained strong with nonperforming assets to total assets of 0.15%."
Acquisition of Digital Disbursements and AmeriHome Mortgage Company:
On January 25, 2022, the Company completed its acquisition of Digital Settlement Technologies LLC, doing business as Digital Disbursements, a digital payments platform for the class action legal industry. On April 7, 2021, the Company completed its acquisition of Aris Mortgage Holding Company, LLC, the parent company of AmeriHome Mortgage Company, LLC ("AmeriHome"). The Company's results include the financial results of Digital Disbursements and AmeriHome beginning on the acquisition dates noted.
LINKED-QUARTER BASISYEAR-OVER-YEAR
FINANCIAL HIGHLIGHTS:
▪Net income of $260.2 million and earnings per share of $2.39, compared to $240.1 million and $2.22, respectively
▪Net revenue of $620.0 million, an increase of 11.6%, or $64.2 million, compared to an increase in non-interest expenses of 8.2%, or $20.3 million
▪Pre-provision net revenue1 of $351.1 million, up $43.9 million from $307.2 million
▪Effective tax rate of 19.6%, compared to 19.5%
▪Net income of $260.2 million and earnings per share of $2.39, up 16.3% and 10.1%, from $223.8 million and $2.17, respectively
▪Net revenue of $620.0 million, an increase of 22.4%, or $113.5 million, compared to an increase in non-interest expenses of 9.8%, or $24.1 million
▪Pre-provision net revenue1 of $351.1 million, up $89.4 million from $261.7 million
▪Effective tax rate of 19.6%, compared to 19.0%
FINANCIAL POSITION RESULTS:
▪HFI loans of $48.4 billion, up $5.3 billion, net of a $1.9 billion HFS to HFI loan transfer, or 52.2% annualized
▪Total deposits of $53.7 billion, up $1.6 billion, or 11.9% annualized
▪Stockholders' equity of $5.0 billion, down $53 million
▪Increase in HFI loans of $16.4 billion, net of a $1.9 billion HFS to HFI loan transfer, or 48.9%
▪Increase in total deposits of $11.8 billion, or 28.1%
▪Increase in stockholders' equity of $924.5 million
LOANS AND ASSET QUALITY:
▪Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.15%, compared to 0.17%
▪Annualized net loan charge-offs to average loans outstanding of 0.01%, compared to approximately 0.00%
▪Nonperforming assets to total assets of 0.15%, compared to 0.20%
▪Annualized net loan charge-offs to average loans outstanding of 0.01%, compared to approximately 0.00%
KEY PERFORMANCE METRICS:
▪Net interest margin of 3.54%, compared to 3.32%
▪Return on average assets and on tangible common equity1 of 1.62% and 25.6%, compared to 1.64% and 23.9%, respectively
▪Tangible common equity ratio1 of 6.1%, compared to 6.7%
▪Tangible book value per share1, net of tax, of $36.67, a decrease of 1.2% from $37.13
▪Efficiency ratio1 of 42.8%, compared to 44.1%
▪Net interest margin of 3.54%, compared to 3.51%
▪Return on average assets and on tangible common equity1 of 1.62% and 25.6%, compared to 1.86% and 28.1%, respectively
▪Tangible common equity ratio1 of 6.1%, compared to 7.1%
▪Tangible book value per share1, net of tax, of $36.67, an increase of 11.6% from $32.86
▪Efficiency ratio1 of 42.8%, compared to 47.5%
1     See reconciliation of Non-GAAP Financial Measures on page 19.


Income Statement
Net interest income was $525.0 million in the second quarter 2022, an increase of $75.5 million from $449.5 million in the first quarter 2022, and an increase of $154.5 million, or 41.7%, compared to the second quarter 2021. The increase in net interest income from the first quarter 2022 is due to strong HFI loan growth and a higher rate environment, which drove an increase in yields on interest earning assets and also pushed interest rates higher on deposits and short-term borrowings. HFI loan growth, partially offset by higher interest rates on deposits, drove the increase in net interest income from the second quarter 2021.
The Company recorded a provision for credit losses totaling $27.5 million in the second quarter 2022, an increase of $18.5 million from $9.0 million in the first quarter 2022, compared to a provision release of $14.5 million in the second quarter 2021. The provision for credit losses during the second quarter 2022 is primarily due to loan growth and emerging economic uncertainty.
The Company’s net interest margin in the second quarter 2022 was 3.54%, an increase from 3.32% in the first quarter 2022, and an increase from 3.51% in the second quarter 2021. The higher rate environment drove an increase in net interest margin, with yields on interest earning assets more than offsetting the increase in rates on deposits and short-term borrowings. The increase in net interest margin from the second quarter 2021 was driven by HFI loan growth, partially offset by higher debt and deposit balances coupled with higher rates on deposits.
Non-interest income was $95.0 million for the second quarter 2022, compared to $106.3 million for the first quarter 2022, and $136.0 million for the second quarter 2021. The $11.3 million decrease in non-interest income from the first quarter 2022 was primarily the result of a decrease in net gain on loan origination and sale activities of $9.7 million from decreased gain on sale margins and a small loss on sale of securities in the current quarter of $0.2 million compared to a gain of $6.9 million in the first quarter 2022, which was partially offset by an increase in gain on recovery from credit guarantees of $6.7 million and an increase in loan servicing revenue of $4.3 million. The $41.0 million decrease from the second quarter 2021 was driven by a decrease in net gain on loan origination and sale activities of $104.8 million from lower production volume and gain on sale margins and a $10.0 million loss on fair value adjustments on assets measured at fair value compared to a gain of $3.2 million in the second quarter 2021, partially offset by a $66.2 million increase in loan servicing revenue and a $9.0 million gain on recovery from credit guarantees, which arose from the credit risk transfer transactions undertaken by the Company that transfer first loss exposure to unrelated third parties.
Net revenue was $620.0 million for the second quarter 2022, an increase of $64.2 million, or 11.6%, compared to $555.8 million for the first quarter 2022, and an increase of $113.5 million, or 22.4%, compared to $506.5 million for the second quarter 2021. 
Non-interest expense was $268.9 million for the second quarter 2022, compared to $248.6 million for the first quarter 2022, and $244.8 million for the second quarter 2021. The Company’s efficiency ratio1 was 42.8% for the second quarter 2022, compared to 44.1% in the first quarter 2022, and 47.5% for the second quarter 2021. Non-interest expense increased from the first quarter 2022 due to increased deposit costs and loan servicing expenses. The increase in non-interest expense from the second quarter 2021 is attributable to increased legal, professional, and director's fees, deposit and compensation costs, partially offset by lower acquisition and restructuring costs and loan servicing expenses.
Income tax expense was $63.4 million for the second quarter 2022, compared to $58.1 million for the first quarter 2022, and $52.4 million for the second quarter 2021.
Net income was $260.2 million for the second quarter 2022, an increase of $20.1 million from $240.1 million for the first quarter 2022, and an increase of $36.4 million from $223.8 million for the second quarter 2021. Earnings per share was $2.39 for the second quarter 2022, compared to $2.22 for the first quarter 2022, and $2.17 for the second quarter 2021.
The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the second quarter 2022, the Company’s PPNR1 was $351.1 million, up $43.9 million from $307.2 million in the first quarter 2022, and up $89.4 million from $261.7 million in the second quarter 2021.
The Company had 3,254 full-time equivalent employees and 60 offices at June 30, 2022, compared to 3,170 employees and 60 offices at March 31, 2022, and 3,075 employees and 53 offices at June 30, 2021.



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

Balance Sheet
HFI loans, net of deferred fees totaled $48.4 billion at June 30, 2022, compared to $41.1 billion at March 31, 2022, and $30.0 billion at June 30, 2021. HFI loan growth of $5.3 billion from the prior quarter excludes a $1.9 billion transfer of government guaranteed early buyout ("EBO") residential loans from HFS to HFI and was driven by increases of $2.9 billion in commercial and industrial, $1.5 billion in residential real estate, and $926 million in CRE non-owner occupied loans. From June 30, 2021, HFI loan growth of $16.4 billion (which excludes $1.9 billion of transferred EBO loans), was primarily driven by residential real estate, commercial and industrial, and CRE non-owner occupied loans which increased $7.7 billion, $6.5 billion, and $2.1 billion, 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. At June 30, 2022, the allowance for loan losses to funded HFI loans ratio was 0.56%, compared to 0.63% at March 31, 2022, and 0.78% at June 30, 2021. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.68% at June 30, 2022, compared to 0.73% at March 31, 2022, and 0.88% at June 30, 2021. The decrease in the allowance for credit loss ratios from the prior quarter and the prior year is due to loan mix changes resulting from growth in low loss segments. The Company is a party to credit linked note transactions, which effectively transfers a portion of the risk of loan losses on reference pools of loans to the purchasers of the notes. As of June 30, 2022 and March 31, 2022, the Company is protected from credit losses on reference pools of loans totaling $11.1 billion and $5.4 billion, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios as of June 30, 2022 and March 31, 2022 include an allowance of $19 million and $10 million, respectively, related to these pools of loans. The allowance for credit losses to funded HFI loans ratio, adjusted to take into consideration the transfer of risk associated with the credit linked note transactions, was 0.88% at June 30, 2022 and 0.84% at March 31, 2022.
Deposits totaled $53.7 billion at June 30, 2022, an increase of $1.6 billion from $52.2 billion at March 31, 2022, and an increase of $11.8 billion from $41.9 billion at June 30, 2021. By deposit type, the increase from the prior quarter is attributable to an increase of $760 million from certificates of deposits, $473 million from savings and money market accounts, $201 million from non-interest bearing demand deposits, and $119 million from interest bearing demand deposits. From June 30, 2021, deposits increased across all deposit types, with increases in interest-bearing demand deposits of $4.2 billion, non-interest bearing demand deposits of $3.6 billion, savings and money market accounts of $3.2 billion, and certificates of deposit of $761 million. Non-interest bearing deposits were $23.7 billion at June 30, 2022, compared to $23.5 billion at March 31, 2022, and $20.1 billion at June 30, 2021.
The table below shows the Company's deposit types as a percentage of total deposits:
Jun 30, 2022Mar 31, 2022Jun 30, 2021
Non-interest bearing44.2 %45.1 %48.0 %
Savings and money market35.4 35.6 37.7 
Interest-bearing demand15.6 15.8 10.0 
Certificates of deposit4.8 3.5 4.3 
The Company’s ratio of HFI loans to deposits was 90.0% at June 30, 2022, compared to 78.8% at March 31, 2022, and 71.6% at June 30, 2021.
Borrowings were $5.2 billion at June 30, 2022, $833 million at March 31, 2022, and $615 million at June 30, 2021. The increase in borrowings from March 31, 2022 is due primarily to an increase in short-term borrowings of $3.9 billion and the issuance of credit linked notes totaling $486 million, net of $8 million in issuance costs, during the quarter. The increase in borrowings from June 30, 2021 is due to the increases described above and the issuance of $225 million in credit linked notes, net of issuance costs, during the second half of 2021.
Qualifying debt totaled $891 million at June 30, 2022, compared to $893 million at March 31, 2022, and $1.1 billion at June 30, 2021. The decrease in qualifying debt from June 30, 2021 is primarily related to $250 million in subordinated debt redemptions during 2021.
Stockholders’ equity was $5.0 billion at June 30, 2022, compared to $5.0 billion at March 31, 2022, and $4.0 billion at June 30, 2021. Stockholders' equity remained consistent quarter over quarter as net income was offset by dividends to shareholders and unrealized fair value losses of approximately $285 million on the Company's available for sale securities, which are recorded in other comprehensive income, net of tax. A cash dividend of $0.35 per share was paid to common shareholders on May 27, 2022, totaling $37.9 million, and a cash dividend of $0.27 per depository share was paid to preferred shareholders on June 30, 2022, totaling $3.2 million. The increase in stockholders' equity from June 30, 2021 is primarily a function of net income, issuance of preferred stock, and sales of common stock under the Company's ATM program, partially offset by dividends to shareholders and losses on available for sale securities.
At June 30, 2022, tangible common equity, net of tax1, was 6.1% of tangible assets1 and total capital was 11.9% of risk-weighted assets. The Company’s tangible book value per share1 was $36.67 at June 30, 2022, a decrease of 1.2% from $37.13, and up 11.6% from $32.86 at June 30, 2021. The decrease in tangible book value per share from March 31, 2022 is attributable to fair value marks on the Company's available for sale securities, which are recorded in other comprehensive income, net of tax.
Total assets increased 9.0% to $66.1 billion at June 30, 2022, from $60.6 billion at March 31, 2022, and increased 34.6% from $49.1 billion at June 30, 2021. The increase in total assets from March 31, 2022 was driven by continued organic loan and deposit growth. The increase in total assets from June 30, 2021 was also driven by continued organic loan growth.


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

Asset Quality
Provision for credit losses totaled $27.5 million for the second quarter 2022, compared to $9.0 million for the first quarter 2022, and a recovery of credit losses of $14.5 million for the second quarter 2021. Net loan charge-offs in the second quarter 2022 were $1.4 million, or 0.01% of average loans (annualized), compared to $0.2 million, or approximately 0.00%, in the first quarter 2022, and $0.1 million, or approximately 0.00%, in the second quarter 2021.
Nonaccrual loans decreased $6 million to $85 million during the quarter and decreased $12 million from June 30, 2021. Loans past due 90 days and still accruing interest were zero (excluding government insured loans of $555 million) at June 30, 2022, compared to zero at March 31, 2022 and June 30, 2021. Loans past due 30-89 days and still accruing interest totaled $117 million (excluding government insured loans of $161 million) at June 30, 2022, an increase from $58 million at March 31, 2022, and an increase from $10 million at June 30, 2021.
Repossessed assets totaled $12 million at June 30, 2022, flat from March 31, 2022, and an increase of $8 million from $4 million at June 30, 2021. Classified assets totaled $346 million at June 30, 2022, a decrease of $19 million from $365 million at March 31, 2022, and an increase of $107 million from $239 million at June 30, 2021.
The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 6.7% at June 30, 2022, compared to 7.4% at March 31, 2022, and 6.4% at June 30, 2021.


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

Segment Highlights
The Company's reportable segments are aggregated with a focus on products and services offered and consist of three reportable segments:
–Commercial segment: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry.
–Consumer Related segment: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and beginning on January 25, 2022 includes the financial results of Digital Disbursements.
–Corporate & Other segment: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.
Key management metrics for evaluating the performance of the Company's Commercial and Consumer Related segments include loan and deposit growth, asset quality, and pre-tax income.
The Commercial segment reported an HFI loan balance of $29.4 billion at June 30, 2022, an increase of $3.7 billion during the quarter, and an increase of $8.8 billion during the last twelve months. Deposits for the Commercial segment totaled $29.5 billion at June 30, 2022, a decrease of $651 million during the quarter, and an increase of $3.2 billion during the last twelve months.
Pre-tax income for the Commercial segment was $239.9 million for the three months ended June 30, 2022, an increase of $3.1 million from the three months ended March 31, 2022, and an increase of $30.8 million from the three months ended June 30, 2021. For the six months ended June 30, 2022, the Commercial segment reported total pre-tax income of $476.6 million, an increase of $46.6 million compared to the six months ended June 30, 2021.
The Consumer Related segment reported an HFI loan balance of $18.9 billion at June 30, 2022, an increase of $3.6 billion during the quarter, and an increase of $9.5 billion during the last twelve months. The Consumer Related segment also has loans held for sale, initially acquired as part of the AmeriHome acquisition, of $3.0 billion at June 30, 2022, a decrease of $1.8 billion during the quarter. Deposits for the Consumer Related segment totaled $19.7 billion, an increase of $1.2 billion during the quarter, and an increase of $4.8 billion during the last twelve months.
Pre-tax income for the Consumer Related segment was $160.1 million for the three months ended June 30, 2022, an increase of $33.2 million from the three months ended March 31, 2022, and an increase of $46.5 million from the three months ended June 30, 2021. Pre-tax income for the Consumer Related segment for the six months ended June 30, 2022 totaled $287.1 million, an increase of $102.0 million compared to the six months ended June 30, 2021.
5

Conference Call and Webcast
Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2022 financial results at 12:00 p.m. ET on Friday, July 22, 2022. Participants may access the call by dialing 1-888-396-8049 and using the conference ID 57514725 or via live audio webcast using the website link https://event.on24.com/wcc/r/3825847/3012FB8A58AE72C7E9C5700F7983D54D. 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 July 22nd through 11:00 p.m. ET August 22nd by dialing 1-877-674-7070, using passcode 514725#.

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, 2021 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the war between Russia and Ukraine; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.
Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.

About Western Alliance Bancorporation
With more than $60 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. The company is #2 best-performing of the 50 largest public U.S. banks in the S&P Global Market Intelligence listing for 2021, ranks high year after year on the Forbes list of “America’s Best Banks” and was named #1 Best Emerging Regional Bank per Bank Director’s 2022 RankingBanking study. Its primary subsidiary, Western Alliance Bank, Member FDIC, helps clients realize their ambitions with teams of experienced bankers and mortgage experts who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities, including 24/7 funds transfer and other blockchain-based offerings. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking brands and has offices in key markets nationwide. For more information, visit westernalliancebank.com.


6

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
As of June 30,
20222021Change %
(in millions)
Total assets$66,055 $49,069 34.6 %
Loans held for sale3,010 4,465 (32.6)
HFI loans, net of deferred fees48,365 30,027 61.1 
Investment securities8,802 7,845 12.2 
Total deposits53,712 41,921 28.1 
Qualifying debt891 1,140 (21.8)
Stockholders' equity4,959 4,035 22.9 
Tangible common equity, net of tax (1)3,971 3,426 15.9 
Selected Income Statement Data:
For the Three Months Ended June 30,For the Six Months Ended June 30,
20222021Change %20222021Change %
(in millions, except per share data)(in millions, except per share data)
Interest income$579.6 $398.5 45.4 %$1,064.1 $732.6 45.2 %
Interest expense54.6 28.0 95.0 89.6 44.8 NM
Net interest income525.0 370.5 41.7 974.5 687.8 41.7 
Provision for (recovery of) credit losses27.5 (14.5)NM36.5 (46.9)NM
Net interest income after provision for credit losses497.5 385.0 29.2 938.0 734.7 27.7 
Non-interest income95.0 136.0 (30.1)201.3 155.7 29.3 
Non-interest expense268.9 244.8 9.8 517.5 379.8 36.3 
Income before income taxes323.6 276.2 17.2 621.8 510.6 21.8 
Income tax expense63.4 52.4 21.0 121.5 94.3 28.8 
Net income260.2 223.8 16.3 500.3 416.3 20.2 
Dividends on preferred stock3.2 — —6.4 — — 
Net income available to common stockholders$257.0 $223.8 14.8 $493.9 $416.3 18.6 
Diluted earnings per common share$2.39 $2.17 10.1 $4.61 $4.07 13.3 

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

7

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
At or For the Three Months Ended June 30,For the Six Months Ended June 30,
20222021Change %20222021Change %
Diluted earnings per common share $2.39 $2.17 10.1 %$4.61 $4.07 13.3%
Book value per common share43.07 38.70 11.3 
Tangible book value per common share, net of tax (1)36.67 32.86 11.6 
Average common shares outstanding
(in millions):
Basic107.3 102.7 4.5 106.7 101.8 4.8 
Diluted107.7 103.4 4.2 107.1 102.4 4.6 
Common shares outstanding108.3 104.2 3.9 
Selected Performance Ratios:
Return on average assets (2)1.62 %1.86 %(12.9)%1.63 %1.89 %(13.8)%
Return on average tangible common equity (1, 2)25.6 28.1 (8.9)24.8 26.2 (5.4)
Net interest margin (2)3.54 3.51 0.9 3.44 3.45 (0.3)
Efficiency ratio - tax equivalent basis (1)42.8 47.5 (9.9)43.4 44.2 (1.8)
Loan to deposit ratio90.0 71.6 25.7 
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)0.01 %0.00 %NM0.01 %0.01 %— %
Nonaccrual loans to funded HFI loans0.18 0.32 (43.8)
Nonaccrual loans and repossessed assets to total assets0.15 0.20 (25.0)
Allowance for loan losses to funded HFI loans0.56 0.78 (28.2)
Allowance for loan losses to nonaccrual HFI loans322 242 33.2 
Capital Ratios:
Jun 30, 2022Mar 31, 2022Jun 30, 2021
Tangible common equity (1)6.1 %6.7 %7.1 %
Common Equity Tier 1 (3)9.0 9.0 9.2 
Tier 1 Leverage ratio (3)7.6 8.0 7.3 
Tier 1 Capital (3)9.7 9.8 9.4 
Total Capital (3)11.9 12.0 12.8 

(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 June 30, 2022 are preliminary.
NM    Changes +/- 100% are not meaningful.






8

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(dollars in millions, except per share data)
Interest income:
Loans$516.6 $353.8 $951.3 $652.2 
Investment securities59.3 43.5 107.3 77.5 
Other3.7 1.2 5.5 2.9 
Total interest income579.6 398.5 1,064.1 732.6 
Interest expense:
Deposits27.1 11.6 41.2 22.4 
Qualifying debt8.6 7.2 17.0 13.1 
Borrowings18.9 9.2 31.4 9.3 
Total interest expense54.6 28.0 89.6 44.8 
Net interest income525.0 370.5 974.5 687.8 
Provision for (recovery of) credit losses27.5 (14.5)36.5 (46.9)
Net interest income after provision for credit losses497.5 385.0 938.0 734.7 
Non-interest income:
Net loan servicing revenue (expense)45.4 (20.8)86.5 (20.8)
Net gain on loan origination and sale activities27.2 132.0 64.1 132.0 
Gain on recovery from credit guarantees9.0 — 11.3 — 
Service charges and fees7.6 7.414.6 14.1
Commercial banking related income5.8 4.510.9 7.9
Income from equity investments5.2 6.89.3 14.4
(Loss) gain on sales of investment securities(0.2)— 6.7 0.1 
Fair value (loss) gain adjustments on assets measured at fair value, net(10.0)3.2 (16.6)1.7 
Other5.0 2.9 14.5 6.3 
Total non-interest income95.0 136.0 201.3 155.7 
Non-interest expenses:
Salaries and employee benefits139.0 128.9 277.3 212.6 
Legal, professional, and directors' fees25.1 14.0 49.1 24.1 
Data processing19.7 15.0 37.3 24.9 
Deposit costs18.1 7.1 27.4 13.4 
Loan servicing expenses14.7 22.3 25.5 22.3 
Occupancy13.0 10.4 25.8 19.0 
Insurance6.9 5.5 14.1 9.7 
Loan acquisition and origination expenses6.4 10.5 12.9 10.5 
Business development and marketing5.4 3.2 9.8 4.6 
Net (gain) on sales and valuations of repossessed and other assets(0.3)(1.5)(0.2)(1.8)
Acquisition and restructure expenses— 15.7 0.4 16.1 
Other20.9 13.7 38.1 24.4 
Total non-interest expense268.9 244.8 517.5 379.8 
Income before income taxes323.6 276.2 621.8 510.6 
Income tax expense63.4 52.4 121.5 94.3 
Net income260.2 223.8 500.3 416.3 
Dividends on preferred stock3.2 — 6.4 — 
Net income available to common stockholders$257.0 $223.8 $493.9 $416.3 
Earnings per common share:
Diluted shares107.7 103.4 107.1 102.4 
Diluted earnings per share$2.39 $2.17 $4.61 $4.07 

9

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
Three Months Ended
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(in millions, except per share data)
Interest income:
Loans$516.6 $434.7 $438.6 $398.0 $353.8 
Investment securities59.3 48.0 43.7 43.5 43.5 
Other3.7 1.8 1.0 1.3 1.2 
Total interest income579.6 484.5 483.3 442.8 398.5 
Interest expense:
Deposits27.1 14.1 12.8 12.3 11.6 
Qualifying debt8.6 8.4 9.2 10.8 7.2 
Borrowings18.9 12.5 10.7 9.3 9.2 
Total interest expense54.6 35.0 32.7 32.4 28.0 
Net interest income525.0 449.5 450.6 410.4 370.5 
Provision for (recovery of) credit losses27.5 9.0 13.2 12.3 (14.5)
Net interest income after provision for credit losses497.5 440.5 437.4 398.1 385.0 
Non-interest income:
Net loan servicing revenue (expense)45.4 41.1 2.3 2.2 (20.8)
Net gain on loan origination and sale activities27.2 36.9 73.2 121.0 132.0 
Gain on recovery from credit guarantees9.0 2.3 7.2 — — 
Service charges and fees7.6 7.0 7.1 7.1 7.4 
Commercial banking related income5.8 5.1 4.9 4.6 4.5 
Income from equity investments5.2 4.1 5.2 2.5 6.8 
(Loss) gain on sales of investment securities(0.2)6.9 8.3 — — 
Fair value (loss) gain adjustments on assets measured at fair value, net(10.0)(6.6)(0.8)(2.2)3.2 
Other5.0 9.5 3.0 2.9 2.9 
Total non-interest income95.0 106.3 110.4 138.1 136.0 
Non-interest expenses:
Salaries and employee benefits139.0 138.3 120.6 133.5 128.9 
Legal, professional, and directors' fees25.1 24.0 20.8 13.7 14.0 
Data processing19.7 17.6 17.9 15.4 15.0 
Deposit costs18.1 9.3 9.1 7.3 7.1 
Loan servicing expenses14.7 10.8 15.6 15.6 22.3 
Occupancy13.0 12.8 12.4 12.4 10.4 
Insurance6.9 7.2 7.1 6.2 5.5 
Loan acquisition and origination expenses6.4 6.5 8.6 9.7 10.5 
Business development and marketing5.4 4.4 6.1 2.8 3.2 
Net (gain) loss on sales and valuations of repossessed and other assets(0.3)0.1 (0.4)(1.3)(1.5)
Loss on extinguishment of debt— — 5.9 — — 
Acquisition and restructure expenses (recoveries)— 0.4 (3.2)2.4 15.7 
Other20.9 17.2 17.3 16.1 13.7 
Total non-interest expense268.9 248.6 237.8 233.8 244.8 
Income before income taxes323.6 298.2 310.0 302.4 276.2 
Income tax expense63.4 58.1 64.0 65.5 52.4 
Net income260.2 240.1 246.0 236.9 223.8 
Dividends on preferred stock3.2 3.2 3.5 — — 
Net income available to common stockholders$257.0 $236.9 $242.5 $236.9 $223.8 
Earnings per common share:
Diluted shares107.7 106.6 104.5 103.9 103.4 
Diluted earnings per share$2.39 $2.22 $2.32 $2.28 $2.17 

10


Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(in millions)
Assets:
Cash and due from banks$1,886 $2,602 $516 $918 $3,396 
Investment securities8,802 8,277 7,541 7,696 7,845 
Loans held for sale3,010 4,762 5,635 6,534 4,465 
Loans held for investment:
Commercial and industrial20,754 17,862 18,297 16,525 14,284 
Commercial real estate - non-owner occupied7,775 6,849 6,526 5,844 5,696 
Commercial real estate - owner occupied1,848 1,805 1,898 1,996 2,028 
Construction and land development3,231 3,278 3,023 2,943 2,857 
Residential real estate14,701 11,270 9,282 7,453 5,121 
Consumer56 55 49 41 41 
Loans, net of deferred fees48,365 41,119 39,075 34,802 30,027 
Allowance for loan losses(273)(258)(252)(247)(233)
Loans, net of deferred fees and allowance48,092 40,861 38,823 34,555 29,794 
Mortgage servicing rights826 950 698 605 726 
Premises and equipment, net210 196 182 161 150 
Operating lease right-of-use asset136 142 133 106 95 
Other assets acquired through foreclosure, net12 12 12 12 4 
Bank owned life insurance180 179 180 179 178 
Goodwill and other intangibles, net695 698 635 608 611 
Other assets2,206 1,897 1,628 1,401 1,805 
Total assets$66,055 $60,576 $55,983 $52,775 $49,069 
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits$23,721 $23,520 $21,353 $21,058 $20,106 
Interest bearing:
Demand8,387 8,268 6,924 4,955 4,188 
Savings and money market19,026 18,553 17,279 17,440 15,810 
Certificates of deposit2,578 1,818 2,056 1,830 1,817 
Total deposits53,712 52,159 47,612 45,283 41,921 
Borrowings5,210 833 1,502 1,003 615 
Qualifying debt891 893 896 1,065 1,140 
Operating lease liability151 155 143 115 102 
Accrued interest payable and other liabilities1,132 1,524 867 795 1,256 
Total liabilities61,096 55,564 51,020 48,261 45,034 
Stockholders' Equity:
Preferred stock295 295 295 295 — 
Common stock and additional paid-in capital1,990 1,979 1,879 1,610 1,603 
Retained earnings3,192 2,973 2,773 2,567 2,367 
Accumulated other comprehensive (loss) income(518)(235)16 42 65 
Total stockholders' equity4,959 5,012 4,963 4,514 4,035 
Total liabilities and stockholders' equity$66,055 $60,576 $55,983 $52,775 $49,069 


11

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
Three Months Ended
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(in millions)
Allowance for loan losses
Balance, beginning of period$257.6 $252.5 $246.9 $232.9 $247.1 
Provision for (recovery of) credit losses (1)17.0 5.3 7.0 17.0 (14.1)
Recoveries of loans previously charged-off:
Commercial and industrial0.8 2.4 1.8 0.1 0.4 
Commercial real estate - non-owner occupied— — 0.3 — 1.7 
Commercial real estate - owner occupied0.1 — — 0.1 — 
Construction and land development— — — 0.1 — 
Residential real estate0.1 — 0.4 — 0.1 
Consumer— — — — — 
Total recoveries1.0 2.4 2.5 0.3 2.2 
Loans charged-off:
Commercial and industrial2.4 2.6 3.8 3.3 2.3 
Commercial real estate - non-owner occupied— — — — — 
Commercial real estate - owner occupied— — — — — 
Construction and land development— — — — — 
Residential real estate— — 0.1 — — 
Consumer— — — — — 
Total loans charged-off2.4 2.6 3.9 3.3 2.3 
Net loan charge-offs1.4 0.2 1.4 3.0 0.1 
Balance, end of period$273.2 $257.6 $252.5 $246.9 $232.9 
Allowance for unfunded loan commitments
Balance, beginning of period$43.3 $37.6 $32.1 $31.3 $32.6 
Provision for (recovery of) credit losses (1)10.5 5.7 5.5 0.8 (1.3)
Balance, end of period (2)$53.8 $43.3 $37.6 $32.1 $31.3 
Components of the allowance for credit losses on loans
Allowance for loan losses$273.2 $257.6 $252.5 $246.9 $232.9 
Allowance for unfunded loan commitments53.8 43.3 37.6 32.1 31.3 
Total allowance for credit losses on loans$327.0 $300.9 $290.1 $279.0 $264.2 
Net charge-offs to average loans - annualized0.01 %0.00 %0.02 %0.04 %0.00 %
Allowance ratios
Allowance for loan losses to funded HFI loans (3)0.56 %0.63 %0.65 %0.71 %0.78 %
Allowance for credit losses to funded HFI loans (3)0.68 0.73 0.74 0.80 0.88 
Allowance for loan losses to nonaccrual HFI loans322 283 348 316 242 
Allowance for credit losses to nonaccrual HFI loans386 331 400 357 274 
(1)    The above tables reflect the provision for credit losses on funded and unfunded loans. There was no provision for credit losses on investment securities for the three months ended June 30, 2022. The allowance for credit losses on investment securities totaled $3 million as of June 30, 2022.
(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 $19 million as of June 30, 2022 related to an $11.1 billion pool of loans covered under four separate credit linked note transactions.

12

Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
Three Months Ended
Jun 30, 2022Mar 31, 2022Dec 31, 2021Sep 30, 2021Jun 30, 2021
(in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans$85 $91 $73 $78 $96 
Nonaccrual loans to funded HFI loans0.18 %0.22 %0.19 %0.22 %0.32 %
Repossessed assets$12 $12 $12 $12 $4 
Nonaccrual loans and repossessed assets to total assets0.15 %0.17 %0.15 %0.17 %0.20 %
Loans Past Due
Loans past due 90 days, still accruing (1)$— $— $— $— $— 
Loans past due 90 days, still accruing to funded HFI loans— %— %— %— %— %
Loans past due 30 to 89 days, still accruing (2)$117 $58 $53 $24 $10 
Loans past due 30 to 89 days, still accruing to funded HFI loans0.24 %0.14 %0.13 %0.07 %0.03 %
Other credit quality metrics
Special mention loans$317 $350 $331 $364 $405 
Special mention loans to funded HFI loans0.66 %0.85 %0.85 %1.05 %1.35 %
Classified loans on accrual$232 $253 $216 $175 $138 
Classified loans on accrual to funded HFI loans0.48 %0.61 %0.55 %0.50 %0.46 %
Classified assets$346 $365 $301 $265 $239 
Classified assets to total assets0.52 %0.60 %0.54 %0.50 %0.49 %
(1)    Excludes government guaranteed residential mortgage loans of $555 million as of June 30, 2022.
(2)    Excludes government guaranteed residential mortgage loans of $161 million as of June 30, 2022.

13

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
June 30, 2022March 31, 2022
Average
Balance		InterestAverage Yield /
Cost		Average
Balance		InterestAverage Yield /
Cost
($ in millions)($ in millions)
Interest earning assets
Loans held for sale$4,333 $43.1 3.99 %$6,521 $50.4 3.14 %
Loans held for investment:
Commercial and industrial19,576 205.6 4.27 17,487 165.9 3.91 
CRE - non-owner occupied7,152 83.1 4.67 6,690 73.2 4.44 
CRE - owner occupied1,836 22.7 5.05 1,859 22.8 5.07 
Construction and land development3,336 47.7 5.73 3,090 41.7 5.47 
Residential real estate13,698 113.8 3.33 10,384 80.2 3.13 
Consumer58 0.6 4.29 52 0.5 3.95 
Total HFI loans (1), (2), (3)45,656 473.5 4.19 39,562 384.3 3.98 
Securities:
Securities - taxable6,674 41.3 2.48 5,534 29.9 2.19 
Securities - tax-exempt2,017 18.0 4.53 2,136 18.1 4.29 
Total securities (1)8,691 59.3 2.94 7,670 48.0 2.77 
Cash and other1,650 3.7 0.91 2,058 1.8 0.36 
Total interest earning assets60,330 579.6 3.91 55,811 484.5 3.58 
Non-interest earning assets
Cash and due from banks262 245 
Allowance for credit losses(266)(262)
Bank owned life insurance179 181 
Other assets3,766 3,299 
Total assets$64,271 $59,274 
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts$8,346 $8.0 0.38 %$7,743 $2.7 0.14 %
Savings and money market18,771 16.5 0.35 18,131 9.6 0.21 
Certificates of deposit2,040 2.6 0.52 1,920 1.8 0.38 
Total interest-bearing deposits29,157 27.1 0.37 27,794 14.1 0.21 
Short-term borrowings2,917 8.6 1.19 1,150 1.7 0.62 
Long-term debt786 10.3 5.24 770 10.8 5.67 
Qualifying debt894 8.6 3.85 896 8.4 3.81 
Total interest-bearing liabilities33,754 54.6 0.65 30,610 35.0 0.46 
Interest cost of funding earning assets0.37 0.26 
Non-interest-bearing liabilities
Non-interest-bearing demand deposits24,327 22,580 
Other liabilities1,169 1,095 
Stockholders’ equity5,021 4,989 
Total liabilities and stockholders' equity$64,271 $59,274 
Net interest income and margin (4)$525.0 3.54 %$449.5 3.32 %

(1)     Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.2 million and $8.0 million for the three months ended June 30, 2022 and March 31, 2022, respectively.
(2)    Included in the yield computation are net loan fees of $36.4 million and $29.1 million for the three months ended June 30, 2022 and March 31, 2022, respectively.
(3)    Includes non-accrual loans.
(4)    Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
14

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Three Months Ended
June 30, 2022June 30, 2021
Average
Balance		InterestAverage Yield /
Cost		Average
Balance		InterestAverage Yield /
Cost
($ in millions)($ in millions)
Interest earning assets
Loans held for sale$4,333 $43.1 3.99 %$5,347 $42.7 3.21 %
Loans held for investment:
Commercial and industrial19,576 205.6 4.27 13,897 148.2 4.37 
CRE - non-owner-occupied7,152 83.1 4.67 5,698 67.8 4.78 
CRE - owner-occupied1,836 22.7 5.05 2,025 24.1 4.88 
Construction and land development3,336 47.7 5.73 2,792 39.9 5.73 
Residential real estate13,698 113.8 3.33 3,748 30.7 3.29 
Consumer58 0.6 4.29 34 0.4 4.52 
Total HFI loans (1), (2), (3)45,656 473.5 4.19 28,194 311.1 4.48 
Securities:
Securities - taxable6,674 41.3 2.48 5,630 26.0 1.85 
Securities - tax-exempt2,017 18.0 4.53 2,166 17.5 4.07 
Total securities (1)8,691 59.3 2.94 7,796 43.5 2.47 
Other1,650 3.7 0.91 1,911 1.2 0.25 
Total interest earning assets60,330 579.6 3.91 43,248 398.5 3.77 
Non-interest earning assets
Cash and due from banks262 458 
Allowance for credit losses(266)(257)
Bank owned life insurance179 178 
Other assets3,766 4,518 
Total assets$64,271 $48,145 
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts$8,346 $8.0 0.38 %$4,370 $1.5 0.14 %
Savings and money market accounts18,771 16.5 0.35 15,168 8.0 0.21 
Certificates of deposit2,040 2.6 0.52 1,737 2.1 0.49 
Total interest-bearing deposits29,157 27.1 0.37 21,275 11.6 0.22 
Short-term borrowings2,917 8.6 1.19 1,506 4.5 1.21 
Long-term debt786 10.3 5.24 353 4.7 5.30 
Qualifying debt894 8.6 3.85 701 7.2 4.12 
Total interest-bearing liabilities33,754 54.6 0.65 23,835 28.0 0.47 
Interest cost of funding earning assets0.37 0.26 
Non-interest-bearing liabilities
Non-interest-bearing demand deposits24,327 18,385 
Other liabilities1,169 2,140 
Stockholders’ equity5,021 3,785 
Total liabilities and stockholders' equity$64,271 $48,145 
Net interest income and margin (4)$525.0 3.54 %$370.5 3.51 %

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.2 million and $8.5 million for the three months ended June 30, 2022 and 2021, respectively.
(2)    Included in the yield computation are net loan fees of $36.4 million and $32.6 million for the three months ended June 30, 2022 and 2021, respectively.
(3)    Includes non-accrual loans.
(4)    Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
15

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
Six Months Ended
June 30, 2022June 30, 2021
Average
Balance		InterestAverage Yield /
Cost		Average
Balance		InterestAverage Yield /
Cost
($ in millions)($ in millions)
Interest earning assets
Loans held for sale$5,421 $93.6 3.48 %$2,688 $42.7 3.21 %
Loans held for investment:
Commercial and industrial18,537 371.5 4.10 13,925 299.1 4.43 
CRE - non-owner occupied6,922 156.2 4.56 5,674 132.9 4.73 
CRE - owner occupied1,847 45.5 5.06 2,059 48.5 4.86 
Construction and land development3,214 89.3 5.61 2,639 75.5 5.77 
Residential real estate12,050 194.1 3.25 3,131 52.7 3.39 
Consumer55 1.1 4.14 34 0.8 4.96 
Total HFI loans (1), (2), (3)42,625 857.7 4.09 27,462 609.5 4.53 
Securities:
Securities - taxable6,107 71.1 2.35 5,084 44.5 1.77 
Securities - tax-exempt2,076 36.2 4.41 2,074 33.0 4.03 
Total securities (1)8,183 107.3 2.86 7,158 77.5 2.42 
Other1,853 5.5 0.60 3,877 2.9 0.15 
Total interest earning assets58,082 1,064.1 3.75 41,185 732.6 3.67 
Non-interest earning assets
Cash and due from banks254 313 
Allowance for credit losses(264)(273)
Bank owned life insurance180 177 
Other assets3,534 2,904 
Total assets$61,786 $44,306 
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts$8,046 $10.7 0.27 %$4,139 $2.8 0.14 %
Savings and money market accounts18,453 26.1 0.29 14,584 15.1 0.21 
Certificates of deposit1,981 4.4 0.45 1,709 4.5 0.54 
Total interest-bearing deposits28,480 41.2 0.29 20,432 22.4 0.22 
Short-term borrowings2,038 10.4 1.03 769 4.6 1.21 
Long-term debt778 21.0 5.45 178 4.7 5.30 
Qualifying debt895 17.0 3.83 625 13.1 4.24 
Total interest-bearing liabilities32,191 89.6 0.56 22,004 44.8 0.41 
Interest cost of funding earning assets0.31 0.22 
Non-interest-bearing liabilities
Non-interest-bearing demand deposits23,458 17,186 
Other liabilities1,132 1,460 
Stockholders’ equity5,005 3,656 
Total liabilities and stockholders' equity$61,786 $44,306 
Net interest income and margin (4)$974.5 3.44 %$687.8 3.45 %

(1)    Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $16.2 million and $16.5 million for the six ended June 30, 2022 and 2021, respectively.
(2)    Included in the yield computation are net loan fees of $65.5 million for the six ended June 30, 2022 and 2021.
(3)    Includes non-accrual loans.
(4)    Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.
16

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated CompanyCommercialConsumer RelatedCorporate & Other
At June 30, 2022:(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities$10,688 $15 $— $10,673 
Loans held for sale3,010 — 3,010 — 
Loans, net of deferred fees and costs48,365 29,448 18,917 — 
Less: allowance for credit losses(273)(242)(31)— 
Total loans48,092 29,206 18,886 — 
Other assets acquired through foreclosure, net12 12 — — 
Goodwill and other intangible assets, net695 294 401 — 
Other assets3,558 275 1,510 1,773 
Total assets$66,055 $29,802 $23,807 $12,446 
Liabilities:
Deposits$53,712 $29,482 $19,690 $4,540 
Borrowings and qualifying debt6,101 29 356 5,716 
Other liabilities1,283 235 300 748 
Total liabilities61,096 29,746 20,346 11,004 
Allocated equity:4,959 2,842 1,852 265 
Total liabilities and stockholders' equity$66,055 $32,588 $22,198 $11,269 
Excess funds provided (used)— 2,786 (1,609)(1,177)
No. of offices60 50 8 2 
No. of full-time equivalent employees3,254 607 1,084 1,563 
Income Statement:
Three Months Ended June 30, 2022:(in millions)
Net interest income$525.0 $370.5 $219.4 $(64.9)
Provision for (recovery of) credit losses27.5 32.7 (5.2)— 
Net interest income (expense) after provision for credit losses497.5 337.8 224.6 (64.9)
Non-interest income95.0 18.0 74.6 2.4 
Non-interest expense268.9 115.9 139.1 13.9 
Income (loss) before income taxes323.6 239.9 160.1 (76.4)
Income tax expense (benefit)63.4 57.3 38.1 (32.0)
Net income (loss)$260.2 $182.6 $122.0 $(44.4)
Six Months Ended June 30, 2022:(in millions)
Net interest income$974.5 $705.3 $402.7 $(133.5)
Provision for (recovery of) credit losses36.5 33.2 5.3 (2.0)
Net interest income (expense) after provision for credit losses938.0 672.1 397.4 (131.5)
Non-interest income201.3 34.9 153.8 12.6 
Non-interest expense517.5 230.4 264.1 23.0 
Income (loss) before income taxes621.8 476.6 287.1 (141.9)
Income tax expense (benefit)121.5 113.4 68.5 (60.4)
Net income (loss)$500.3 $363.2 $218.6 $(81.5)
17

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:
Consolidated CompanyCommercialConsumer RelatedCorporate
At December 31, 2021:(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities$8,057 $13 $82 $7,962 
Loans held for sale5,635 — 5,635 — 
Loans, net of deferred fees and costs39,075 25,092 13,983 — 
Less: allowance for credit losses(252)(226)(26)— 
Total loans38,823 24,866 13,957 — 
Other assets acquired through foreclosure, net12 12 — — 
Goodwill and other intangible assets, net635 295 340 — 
Other assets2,821 254 1,278 1,289 
Total assets$55,983 $25,440 $21,292 $9,251 
Liabilities:
Deposits$47,612 $30,467 $15,363 $1,782 
Borrowings and qualifying debt2,398 — 353 2,045 
Other liabilities1,010 233 138 639 
Total liabilities51,020 30,700 15,854 4,466 
Allocated equity:4,963 2,588 1,596 779 
Total liabilities and stockholders' equity$55,983 $33,288 $17,450 $5,245 
Excess funds provided (used)— 7,848 (3,842)(4,006)
No. of offices58 50 7 1 
No. of full-time equivalent employees3,139 628 1,173 1,338 
Income Statement:
Three Months Ended June 30, 2021:(in millions)
Net interest income$370.5 $280.7 $139.5 $(49.7)
(Recovery of) provision for credit losses(14.5)(18.6)7.2 (3.1)
Net interest income (expense) after provision for credit losses385.0 299.3 132.3 (46.6)
Non-interest income136.0 13.9 116.9 5.2 
Non-interest expense244.8 104.1 135.6 5.1 
Income (loss) before income taxes276.2 209.1 113.6 (46.5)
Income tax expense (benefit)52.4 50.4 27.5 (25.5)
Net income (loss)$223.8 $158.7 $86.1 $(21.0)
Six Months Ended June 30, 2021:(in millions)
Net interest income$687.8 $544.5 $247.5 $(104.2)
(Recovery of) provision for credit losses(46.9)(54.8)8.9 (1.0)
Net interest income (expense) after provision for credit losses734.7 599.3 238.6 (103.2)
Non-interest income155.7 33.1 117.4 5.2 
Non-interest expense379.8 202.4 170.9 6.5 
Income (loss) before income taxes510.6 430.0 185.1 (104.5)
Income tax expense (benefit)94.3 103.2 44.9 (53.8)
Net income (loss)$416.3 $326.8 $140.2 $(50.7)
18


Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Pre-Provision Net Revenue by Quarter:
Three Months Ended
6/30/20223/31/202212/31/20219/30/20216/30/2021
(in millions)
Net interest income$525.0 $449.5 $450.6 $410.4 $370.5 
Total non-interest income95.0 106.3 110.4 138.1 136.0 
Net revenue$620.0 $555.8 $561.0 $548.5 $506.5 
Total non-interest expense268.9 248.6 237.8 233.8 244.8 
Pre-provision net revenue (1)$351.1 $307.2 $323.2 $314.7 $261.7 
Less:
Provision for (recovery of) credit losses27.5 9.0 13.2 12.3 (14.5)
Income tax expense63.4 58.1 64.0 65.5 52.4 
Net income$260.2 $240.1 $246.0 $236.9 $223.8 
Efficiency Ratio by Quarter:
Total non-interest expense$268.9 $248.6 $237.8 $233.8 $244.8 
Divided by:
Total net interest income525.0 449.5 450.6 410.4 370.5 
Plus:
Tax equivalent interest adjustment8.2 8.0 8.4 8.5 8.5 
Total non-interest income95.0 106.3 110.4 138.1 136.0 
$628.2 $563.8 $569.4 $557.0 $515.0 
Efficiency ratio - tax equivalent basis (2)42.8 %44.1 %41.8 %42.0 %47.5 %

Tangible Common Equity:
6/30/20223/31/202212/31/20219/30/20216/30/2021
(dollars and shares in millions)
Total stockholders' equity$4,959 $5,012 $4,963 $4,514 $4,035 
Less:
Goodwill and intangible assets695 698 635 608 611 
Preferred stock295 295 295 295 — 
Total tangible common equity3,969 4,019 4,033 3,611 3,424 
Plus: deferred tax - attributed to intangible assets2 2 2 2 2 
Total tangible common equity, net of tax$3,971 $4,021 $4,035 $3,613 $3,426 
Total assets$66,055 $60,576 $55,983 $52,775 $49,069 
Less: goodwill and intangible assets, net695 698 635 608 611 
Tangible assets65,360 59,878 55,348 52,167 48,458 
Plus: deferred tax - attributed to intangible assets2 2 2 2 2 
Total tangible assets, net of tax$65,362 $59,880 $55,350 $52,169 $48,460 
Tangible common equity ratio (3)6.1 %6.7 %7.3 %6.9 %7.1 %
Common shares outstanding108.3 108.3 106.6 104.2 104.2 
Tangible book value per share, net of tax (3)$36.67 $37.13 $37.84 $34.67 $32.86 
19

Non-GAAP Financial Measures Footnotes
(1)We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2)We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3)We believe this non-GAAP metric provides an important metric with which to analyze and evaluate financial condition and capital strength. In addition, we believe that use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.
CONTACT:
Western Alliance Bancorporation
Dale Gibbons, 602-952-5476
20
EARNINGS CALL 2nd Quarter 2022 JULY 22, 2022

 
Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 and the Company’s subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the war between Russia and Ukraine; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Company’s press release as of and for the quarter ended June 30, 2022. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2

 
2nd Quarter 2022 | Financial Highlights Earnings & Profitability Q2-22 Q1-22 Q2-21 Earnings per Share $2.39 $2.22 $2.17 Net Income $260.2 $240.1 $223.8 Net Revenue $620.0 $555.8 $506.5 Pre Provision Net Revenue1 $351.1 $307.2 $261.7 Net Interest Margin 3.54% 3.32% 3.51% Efficiency Ratio1 42.8% 44.1% 47.5% ROAA 1.62% 1.64% 1.86% ROTCE1 25.6% 23.9% 28.1% Balance Sheet & Capital Total Loans $48,365 $41,119 $30,027 Total Deposits $53,712 $52,160 $41,921 CET1 Ratio 9.0% 9.0% 9.2% TCE Ratio1 6.1% 6.7% 7.1% Tangible Book Value per Share1 $36.67 $37.13 $32.86 Asset Quality Provision for (Recovery of) Credit losses $27.5 $9.0 $(14.5) Net Charge-Offs $1.4 $0.2 $0.1 Net Charge-Offs/Avg. Loans 0.01% 0.00% 0.00% Total Loan ACL/Funded Loans3 0.68% 0.73% 0.88% NPAs2/Total Assets 0.15% 0.17% 0.20% Net Income $260.2 million EPS $2.39 PPNR1 Q2: $351.1 million 34% YoY ROTCE1 25.6% Loan Growth4 Q2: $5.3 billion 55% YoY Deposit Growth Q2: $1.6 billion 28% YoY Tangible Book Value PER SHARE1 $36.67 12% YoY NPAs2/ Total Assets 0.15% 3 Dollars in millions, except EPS 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Nonperforming assets includes nonaccrual loans and repossessed assets. 3) Ratio includes an allowance for credit losses of $19 million as of June 30, 2022 related to an $11.1 billion pool of loans covered under 4 separate credit linked notes. 4) Excludes $1.9 billion of EBO loans that were transferred from HFS to HFI during Q2-2022. Highlights

 
Quarterly Income Statement Net Interest Income increased $75.5 million, primarily from strong loan growth and expanding NIM Non-Interest Income decreased $11.3 million, driven by the following: • $10.0 million MTM loss on preferred securities • $9.0 million gain on recovery from credit guarantees on Credit Linked Note issuances (offset to CECL provision) Mortgage Banking Metrics • $13.5 billion mortgage loan production in Q2 (76% purchase / 24% refinance), down 2% compared to Q1 and 38% to Q2 2021 • Gain on Sale margin2 of 13 bps in Q2, compared to 21 bps in Q1 • $52.2 billion in servicing portfolio UPB Deposit costs increased $8.8 million, primarily related to higher earnings credits resulting from an increase in deposit balances and rates Provision for Credit Losses of $27.5 million primarily due to loan growth and emerging economic uncertainty 4 1 2 3 Dollars in millions, except EPS Q2 2022 Highlights 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. 4 Q2-22 Q1-22 Q2-21 Interest Income $579.6 $484.5 $398.5 Interest Expense (54.6) (35.0) (28.0) Net Interest Income $525.0) $449.5) $370.5 Mortgage Banking Related Income 72.6) 78.0) $111.2 Other 22.4) 28.3) 24.8 Non-Interest Income $95.0) $106.3) $136.0 Net Revenue $620.0) $555.8) $506.5 Salaries and Employee Benefits (139.0) (138.3) (128.9) Deposit Costs (18.1) (9.3) (7.1) Other (111.8) (101.0) (108.8) Non-Interest Expense $ (268.9) $ (248.6) $ (244.8) Pre-Provision Net Revenue1 $351.1) $307.2) $261.7) (Provision for) Recovery of Credit Losses (27.5) (9.0) 14.5) Pre-Tax Income $323.6) $298.2) $276.2) Income Tax (63.4) (58.1) (52.4) Net Income $260.2) $240.1) $223.8) Dividends on Preferred Stock (3.2) (3.2) -) Net Income Available to Common Stockholders $257.0) $236.9) $223.8) Diluted Shares 107.7) 106.6) 103.4) Earnings Per Share $2.39) $2.22) $2.17) 1 3 4 2

 
Total Investments and Yield Interest Bearing Deposits and Cost Loans and HFI Yield Deposits, Borrowings & Cost of Liability Funding Net Interest Drivers 5 • Loan yields increased 21 bps due to an overall increase in the rate environment • Transferred $1.9 billion of EBO loans from Loans HFS into Loans HFI, which reduced HFI Yield by 2 bps • Yield on Loans Held for Sale of 3.99%, increased from 3.14% in Q1 • Cost of interest-bearing deposits increased 16 bps, and total cost of funds increased 11 bps to 0.38% due to higher costs on deposits and short-term borrowings $21.8 $24.2 $26.3 $28.6 $30.0 $20.1 $21.1 $21.3 $23.5 $23.7 $1.8 $2.1 $2.4 $1.7 $6.1 0.27% 0.28% 0.25% 0.27% 0.38% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 $21.8 $24.2 $26.3 $28.6 $30.0 0.22% 0.21% 0.20% 0.21% 0.37% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 $7.8 $7.7 $7.5 $8.3 $8.8 2.47% 2.46% 2.51% 2.77% 2.94% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Non-Interest Bearing Deposits Total Borrowings Q2 2022 Highlights $30.0 $34.8 $39.1 $41.1 $48.4 $3.0 4.48% 4.28% 4.03% 3.98% 4.19% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Loans Loans, HFS $4.5 $6.5 Interest Bearing DepositsInterest Bearing Deposits Dollars in billions, unless otherwise indicated Total Investments $5.6 $4.8

 
$370.5 $410.4 $450.6 $449.5 $525.0 3.51% 3.43% 3.33% 3.32% 3.54% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Net Interest Income 6 • Net Interest Income increased $75.5 million, or 16.8%, over prior quarter primarily due to strong loan growth and the increasing rate environment • Average Earning Assets grew $4.5 billion, or 32.5% annualized • NIM increased 22 bps, driven by higher yields on interest earning assets Net Interest Income and Net Interest Margin Average Earning Assets & Average Yield Net Interest Income Net Interest Margin Q2 2022 Highlights Dollars in millions Dollars in billions Cash & Other Securities Loans Held for Sale Loans Average Yield 18% 3% 4% 14% 7% 76% 14% 11% 71% 12% 66%$28.2 $31.5 $36.6 $39.6 $45.7 $5.3 $7.3 $9.2 $6.5 $4.3 $7.8 $7.7 $7.6 $7.7 $8.7 $1.9 $1.9 $1.3 $2.0 $1.6 3.77% 3.70% 3.57% 3.58% 3.91% $43.2 $48.4 $54.7 $55.8 $60.3 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 4%

 
Net Interest Income in a Rising Rate Environment 7 • WAL expects a 5.3% increase in NII under a 100 bps rate shock on a static balance sheet • 51% of loans (ex-HFS) are contractually variable ($24.6 billion) • 68% of variable rate loans have rate floors • 16% of variable rate loans with rate floors are at floors, down from 80% in Q1 • Majority of loans with floors have come off of them with Federal Funds Rate increases this year • After the next expected 75 bps increase in rates, <$100 million of loans will be at floors NII Sensitivity – Shock Scenario, +200 bps NII Sensitivity – Shock Scenario, +100 bps 5.3% >25% 12 months Static Balance Sheet Growth Balance Sheet 10.8% >40% 12 months Static Balance Sheet Growth Balance Sheet 1 1 1) For illustrative purposes only and not intended as guidance. Q2 2022 Highlights

 
Expenses and Efficiency1 8 • Efficiency ratio1 improved 130 bps to 42.8% compared to the prior quarter and 470 bps from the same period last year • Lower efficiency ratio1 was driven by increase in net interest income from continued balance sheet growth • Operating expenses increased from the prior quarter primarily due to an increase in deposit costs, loan servicing and data processing expenses. Non-Interest Expenses and Efficiency Ratio Dollars in millions $244.8 $233.8 $237.8 $248.6 $268.9 47.5% 42.0% 41.8% 44.1% 42.8% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Non-Interest Expenses Efficiency Ratio Q2 2022 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures.

 
Pre-Provision Net Revenue1, Net Income, and ROA 9 • PPNR1 increased $43.9 million from the prior quarter and $89.4 million, or 34.2%, from the same period last year • PPNR ROA1 increased 9 bps from the prior quarter and 1 bps from the same period last year as balance sheet growth outpaced PPNR • ROA decreased 2 bps from the prior quarter and 24 bps from the same period last year PPNR, Net Income & ROA Dollars in millions $261.7 $314.7 $323.3 $307.2 $351.1 $223.8 $236.9 $246.0 $240.1 $260.2 2.18% 2.43% 2.23% 2.10% 2.19% 1.86% 1.83% 1.69% 1.64% 1.62% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 PPNR Net Income PPNR ROA ROA Q2 2022 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures.

 
Loans increased $5.3 billion, or 52.2% annualized, net of $1.9 billion in EBO loan transfers from HFS to HFI Deposits increased $1.6 billion, or 11.9% annualized and $11.8 billion, or 28.1% over prior year Borrowings increased $4.4 billion over prior quarter primarily from an increase in short term borrowings and issuance of $494 million in Credit Linked Notes on EFR and residential portfolios Shareholders’ Equity decreased $53 million as a function dividends and unrealized losses on AFS securities recorded in AOCI, offset by net income Tangible Book Value/Share1 decreased $0.46, over prior quarter and increased $3.81, or 11.6%, over prior year Consolidated Balance Sheet 10 1 2 3 Q2-22 Q1-22 Q2-21 Investments & Cash $10,688 $10,879 $11,241 Loans, HFS 3,010 4,762 4,465 Loans HFI, net 48,365 41,119 30,027 Allowance for Loan Losses (273) (258) (233) Mortgage Servicing Rights 826 950 726 Goodwill and Intangibles 695 698 611 Other Assets 2,744 2,426 2,232 Total Assets $66,055 $60,576 $49,069 Deposits $53,712 $52,159 $41,921 Borrowings 6,101 1,726 1,755 Other Liabilities 1,283 1,679 1,358 Total Liabilities $61,096 $55,564 $45,034 Shareholders’ Equity $4,959 $5,012 $4,035 Total Liabilities and Equity $66,055 $60,576 $49,069 Tangible Book Value Per Common Share1 $36.67 $37.13 $32.86 1 2 5 Dollars in millions Q2 2022 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 3 4 5 4

 
Five Quarter Loan Growth and Composition 11 $16.41 Billion Year-Over-Year Growth Quarter-over-quarter loan growth of $5.31 billion driven by (in millions): Residential & Consumer $1,535 C&I 2,892 CRE, Non-OO 926 CRE, OO 43 Offset by decrease in: Construction & Land (47) Total $5,349 Year-over-year loan growth of $16.41 billion driven by (in millions): Residential & Consumer $7,698 C&I 6,470 CRE, Non-OO 2,079 Construction & Land 374 Offset by decrease in: CRE, OO (180) Total $16,441 $14.3 $16.5 $18.3 $17.9 $20.8 $2.0 $2.0 $1.9 $1.8 $1.8 $5.7 $5.9 $6.5 $6.8 $7.8 $2.9 $2.9 $3.0 $3.3 $3.2 $5.1 $7.5 $9.3 $11.3 $14.8 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Residential & Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial Dollars in billions, unless otherwise indicated Total Loans, HFI $30.0 $34.8 $39.1 $41.1 $48.4 Qtr. Change +$1.3 +$4.8 +$4.3 +$2.0 +$5.31 17.2% 9.5% 19.0% 6.8% 47.5% 42.9% 3.8% 16.1% 6.7% 30.5% Highlights 27.5% 8.0% 16.7% 4.4% 43.4% 1) Loan growth excludes $1.9 billion of EBO loans that were transferred from HFS to HFI during Q2-2022.

 
$20.1 $21.1 $21.4 $23.5 $23.7 $4.2 $5.0 $6.9 $8.3 $8.4 $15.8 $17.4 $17.3 $18.5 $19.0$1.8 $1.8 $2.0 $1.8 $2.6 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 CDs Savings and MMDA Interest Bearing DDA Non-Interest Bearing DDA Five Quarter Deposit Growth and Composition 12 $11.8 Billion Year-Over-Year Growth Quarter-over-quarter deposit growth of $1.6 billion driven by (in millions): CDs $760 Savings and MMDA 473 Non-Interest Bearing DDA 201 Interest-Bearing DDA 119 Total $1,553 Year-over-year deposit growth of $11.8 billion driven by (in millions): Interest-Bearing DDA $4,199 Non-Interest Bearing DDA 3,615 Savings and MMDA 3,216 CDs 761 Total $11,791 Dollars in billions, unless otherwise indicated Total Deposits $41.9 $45.3 $47.6 $52.1 $53.7 Qtr. Change +$3.5 +$3.4 +$2.3 +$4.5 +$1.6 4.3% 37.7% 10.0% 48.0% 44.2% 15.6% 35.4% 4.8% Highlights 3.5% 35.6% 15.8% 45.1%

 
$405 $364 $331 $350 $317 1.35% 1.05% 0.85% 0.85% 0.66% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 $4 $12 $12 $12 $12 $96 $78 $73 $91 $85 $139 $175 $216 $262 $249 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Asset Quality 13 • Total Classified Assets of $346 million (52 bps to Total Assets) decreased $19 million in Q2 • Non-Performing Loans + OREO of $97 million (15 bps to Total Assets) decreased by $6 million in Q2 • Borrowers remain stable, liquid and supported • Special Mention loans of $317 million (66 bps to Funded Loans) decreased 19 bps as a percentage to Funded Loans • Over last 5+ years, less than 1% of Special Mention loans have migrated to loss Special Mention Loans Dollars in millions Classified Assets Special Mention Loans Asset Quality Ratios OREO Non-Performing Loans Classified Accruing Assets $239 $265 $301 $365 SM to Funded Loans 0.49% 0.50% 0.54% 0.60% 0.52% 0.20% 0.17% 0.15% 0.17% 0.15% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Classified Assets to Total Assets Non-Performing Loans + OREO to Total Assets Q2 2022 Highlights $346

 
$2.3 $3.3 $3.9 $2.6 $2.4 ($2.2) ($0.3) ($2.5) ($2.4) ($1.0) $233 $247 $252 $258 $273 $31 $32 $37 $43 $54 $6 $5 $5 $3 $3 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Credit Losses and ACL Ratios 14 • Provision expense of $27.5 million, driven by strong loan growth • Total Loan ACL / Funded Loans decreased 5 bps to 0.68% in Q2 as a result of continued loan growth in low loss segments • Total Loan ACL4 / Funded Loans less loans covered by credit linked notes is 0.88% • Net Charge-Offs of $1.4 million, 1 bps, compared to $0.2 million, approximately 0 bps, in Q1 • 27% of loan portfolio is now credit protected, consisting of government guaranteed, CLN protected and cash secured assets • 23% of portfolio covered by meaningful first loss protection from credit linked note issuances5 Dollars in millions Allowance for Credit Losses Gross Charge-offs and Recoveries Loan ACL Adequacy Ratios2 Total Loan ACL/Funded Loans Less Covered CLN Loans Total Loan ACL/Funded Loans3 Allowance for Loan & Lease Losses Unfunded Loan Commits.1 HTM Securities Gross Charge Offs Recoveries Q2 2022 Highlights 1) Included as a component of other liabilities on the balance sheet. 2) Total Loan ACL includes allowance for unfunded commitments. 3) Ratio includes an allowance for credit losses of $19 million as of June 30, 2022 related to an $11.1 billion pool of loans covered under 4 separate credit linked notes. 4) This is a non-GAAP ratio, refer to slide 2 for further discussion of Non-GAAP financial measures. 5) As of June 30, 2022, CLNs cover a substantial portion of Equity Fund Resources ($2.2 billion), Residential ($8.0 billion) and Warehouse Lending ($963 million) loans outstanding. Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 0.93% 0.85% 0.89% 0.84% 0.88% 0.88% 0.80% 0.74% 0.73% 0.68% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

 
Capital Accumulation 15 Regulatory Capital Levels • Exceed “well-capitalized” levels and stabilized after the initial impact of the AmeriHome transaction • CET1 at 9.0% Tangible Common Equity / Tangible Assets1 • TCE / TA decreased 60 bps from the prior quarter to 6.1% due to asset growth and AOCI loss impact Capital Actions • Issued $494 million aggregate principal amount of senior unsecured credit linked notes covering $2.2 billion of EFR and $3.9 billion of residential loans Robust Common Capital Levels Regulatory Capital 9.2% 8.7% 9.1% 9.0% 9.0% 7.1% 6.9% 7.3% 6.7% 6.1% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 CET1 Ratio TCE/TA1 Q2 2022 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures Total RBC RatioTier 1 RatioLeverage Ratio 7.3% 7.9% 7.8% 8.0% 7.6% 9.4% 9.6% 9.9% 9.8% 9.7% 12.8% 12.6% 12.3% 12.0% 11.9% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22

 
16 Tangible Book Value per Share1 • TBVPS decreased $0.46 to $36.67 from prior quarter • Increased 11.6% year-over-year • Decreased 1.2% quarter-over-quarter, non-annualized • 17.4% CAGR since year end 2016 • TBVPS has increased 3.6x that of peers over the last 5 years • Quarterly common stock cash dividend of $0.35 per share Long-Term Growth in TBV per Share1 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures 2) MRQ is Q2-22 for WAL and Q1-22 for WAL Peers Note: Peers consist of 32 major exchange traded US banks with total assets between $25B and $150B as of March 31, 2022, excluding target banks of pending acquisitions; FCNCA excluded due to Q1-22 merger; S&P Global Market Intelligence. 142% 164% 39% 56% 2016 2017 2018 2019 2020 2021 MRQ WAL WAL with Dividends Added Back Peer Avg Peer Avg with Dividends Added Back 2 Tangible Book Value Growth

 
Management Outlook Balance Sheet Growth Net Interest Income Pre-Provision Net Revenue Capital and Liquidity 17

 
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