Business Wire | Jul 16, 2020 06:36PM EDT

Western Alliance Bancorporation Reports Second Quarter 2020 Financial Results

Jul. 16, 2020

PHOENIX--(BUSINESS WIRE)--Jul. 16, 2020--=Western Alliance Bancorporation (NYSE:WAL):

SECOND QUARTER 2020 FINANCIAL RESULTS

Net Earnings Net Efficiency Book valueincome per share PPNR^1 Interest ratio per Margin common share

$204.9 35.1% $30.76 million

$93.3 $194.7 36.3%^1, $27.84^1,million $0.93 million, 4.19% excluding excluding excluding non- goodwill and non-operating operating intangibles items items

CEO COMMENTARY:

"Western Alliance's second quarter results reflect the drive, passion and agility of its people to persevere in challenging times," said Kenneth A. Vecchione, President and Chief Executive Officer. He continued, "Net income of $93.3 million and earnings per share of $0.93 both increased over 10% from the first quarter despite a $40.8 million increase in the provision for credit losses from the prior quarter. Operating pre-provision net revenue1, which supports capital and growth flexibility, continues to rise, up 19% and 28% from the prior quarter and prior year, respectively. Under the Payroll Protection Program, Western Alliance helped more than 4,700 clients secure loans totaling $1.9 billion, which was the primary driver of the Company's $1.9 billion in loan growth in the quarter. Loan growth was remarkably outpaced by deposit growth of $2.7 billion during the quarter, which includes approximately $1.1 billion in deposits related to loans originated under the PPP. Asset quality continues to be a focus as we saw marginal increases in net charge-offs and grew our allowance for credit losses to total loans to 1.39%."

LINKED-QUARTER BASIS YEAR-OVER-YEAR

The Company's second quarter 2020 financial results continue to be affected bythe current economic environment resulting from the COVID-19 pandemic, whichcontributed to the $92.0 million provision for credit losses recognized duringthe quarter under the new current expected credit losses (CECL) accountingstandard. Refer to Adoption of Accounting Standards section for furtherdiscussion of the impact on the Company's financial statements upon adoption ofCECL. Further, the Company temporarily suspended its share repurchase programin mid-April. However, prior to this decision, the Company repurchased 297,000shares of its common stock at a weighted average price of $30.73.FINANCIAL HIGHLIGHTS:

* Net income of $93.3 million and * Net income of $93.3 million and earnings per share of $0.93, earnings per share of $0.93, down compared to $84.0 million and $0.83, 24.1% and 21.8%, from $122.9 respectively million and $1.19, respectively

* Net operating revenue^1 of $309.5 * Net operating revenue^1 of $309.5 million, an increase of 8.5%, or million, an increase of 15.8%, or $24.1 million, compared to a $42.1 million, compared to decrease in operating non-interest operating non-interest expenses^1 expenses^1 of 5.8%, or $7.1 million flat at $114.8 million

* Operating pre-provision net revenue^ * Operating pre-provision net 1 of $194.7 million, up $31.3 revenue^1 of $194.7 million, up million from $163.4 million $42.2 million from $152.5 million

* Effective tax rate of 17.36%, * Effective tax rate of 17.36%, compared to 18.06% compared to 16.76%

FINANCIAL POSITION RESULTS:

* Total loans of $25.0 billion, up * Increase in total loans of $5.8 $1.9 billion, or 32.2% annualized billion, or 30.0%

* Total deposits of $27.5 billion, up * Increase in total deposits of $6.1 $2.7 billion, or 43.7% annualized billion, or 28.5%

* Stockholders' equity of $3.1 * Increase in stockholders' equity billion, up $103 million of $251 million

LOANS AND ASSET QUALITY:

* Nonperforming assets (nonaccrual loans and repossessed assets) to * Nonperforming assets to total total assets of 0.47%, compared to assets of 0.47%, compared to 0.27% 0.33%

* Annualized net loan charge-offs * Annualized net loan charge-offs (recoveries) to average loans (recoveries) to average loans outstanding of 0.09%, compared to outstanding of 0.09%, compared to (0.06)% 0.03%

KEY PERFORMANCE METRICS:

* Net interest margin of 4.19%, * Net interest margin of 4.19%, compared to 4.22% compared to 4.59%

* Return on average assets and on * Return on average assets and on tangible common equity^1 of 1.22% tangible common equity ^1 of 1.22% and 13.60%, compared to 1.22% and and 13.60%, compared to 2.05% and 12.18%, respectively 19.72%, respectively

* Tangible common equity ratio ^1 of * Tangible common equity ratio ^1 of 8.9%, compared to 9.4% 8.9%, compared to 10.2%

* Tangible book value per share ^1, * Tangible book value per share ^1, net of tax, of $27.84, an increase net of tax, of $27.84, an increase of 4.2% from $26.73 of 12.9% from $24.65

* Operating efficiency ratio^1 of * Operating efficiency ratio ^1 of 36.3%,^ compared to 41.8% 36.3%, compared to 42.0%

1 See reconciliation of Non-GAAP Financial Measures.

Impact of and Response to the COVID-19 Pandemic

In response to the COVID-19 pandemic, the Company has focused first on the well-being of its people, customers and communities. Preventative health measures were put in place and the majority of employees worked remotely for the majority of the second quarter. The Company also established social distancing precautions for all employees in the office and customers visiting branches, preventative cleaning at offices and branches, and eliminated business related travel. Towards the end of the second quarter, the Company began returning employees to the office pursuant to new health and safety procedures and in accordance with guidance from the CDC and local authorities, including regular symptom checks, requiring face cloth coverings, increasing physical space between employees, staggering employee shifts and alternating schedules for employees in the workplace, and requiring employees with COVID-19 related symptoms or exposure to quarantine away from the office. The Company implemented business continuity measures as necessary throughout the pandemic, including establishing a cross-functional COVID-19 team, monitoring potential business interruptions, making improvements to our remote working technology, and conducting regular discussions with our technology vendors.

The Company has taken measures both to support customers affected by the pandemic and to maintain strong asset quality, including:

* helping business customers through the Paycheck Protection Program ("PPP") and other loan products; * implementing a broad-based risk management strategy to manage credit segments on a real-time basis; * tightened underwriting standards; * monitoring portfolio risk and related mitigation strategies by segments; * placing limits on originations to higher risk industries and customers including, but not limited to, transportation, travel, hospitality, entertainment, and retail; * contacting customers in order to assess credit situations and needs and develop long-term contingency financial plans; and * offering flexible repayment options to current customers and a streamlined loan modification process, when appropriate.

The continued decline in macroeconomic inputs resulting from the COVID-19 pandemic relative to March 31, 2020 contributed to the $92.0 million provision for credit losses recognized during the quarter under the CECL accounting standard adopted by the Company on January 1, 2020. Continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the accounting for credit losses under the new standard.

While the Company does not anticipate any need for additional liquidity, in response to the economic uncertainty, the Company has taken additional actions to ensure the strength of its liquidity position. These actions include issuance of $225 million in subordinated debt at the bank, establishing a Federal Reserve lending facility in connection with funding loans to small and medium-sized businesses, and temporarily suspending stock repurchases. The Company's capital ratios remained strong as of June 30, 2020, with a tangible common equity to total assets ratio1 of 8.9%.

Income Statement

Net interest income was $298.4 million in the second quarter 2020, an increase of $29.4 million from $269.0 million in the first quarter 2020, and an increase of $43.7 million, or 17.2%, compared to the second quarter 2019.

Provision for credit losses2 was $92.0 million in the second quarter 2020, an increase of $40.8 million from $51.2 million in the first quarter 2020, and an increase of $85.0 million from $7.0 million in the second quarter 2019. The significant increase in the provision for credit losses during the second quarter 2020 is due to worsening of economic assumptions relative to March 31, 2020, as well as increases in net charge-offs and specific loan reserves. The CECL standard, adopted by the Company in the first quarter of 2020, changes the methodology for estimating credit losses on financial instruments from an incurred loss model to an expected total loss model. This results in the recognition of expected losses over the life of loans at the time that the loan is originated, rather than after a loss has been incurred, which results in an acceleration in the timing of loss recognition. Further, as the Company's CECL models incorporate historical experience, current conditions, and reasonable and supportable forecasts in measuring expected credit losses, the current uncertainty in the overall economy has also contributed to an increased provision for credit losses for the first half of 2020.

The Company's net interest margin in the second quarter 2020 was 4.19%, a decrease from 4.22% in the first quarter 2020 and from 4.59% in the second quarter 2019. The decrease in NIM from the prior periods is primarily a result of decreased yields on loans, partially offset by lower rates on deposits and interest expense on borrowings.

Operating non-interest income1 was $11.1 million for the second quarter 2020, compared to $16.3 million for the first quarter 2020, and $12.6 million for the second quarter 2019.

Net operating revenue1 was $309.5 million for the second quarter 2020, an increase of $24.1 million, compared to $285.4 million for the first quarter 2020, and an increase of $42.1 million, or 15.8%, compared to $267.3 million for the second quarter 2019.

Operating non-interest expense1 was $114.8 million for the second quarter 2020, compared to $121.9 million for the first quarter 2020, and $114.9 million for the second quarter 2019. The Company's operating efficiency ratio1 was 36.3% for the second quarter 2020, compared to 41.8% in the first quarter 2020, and 42.0% for the second quarter 2019.

Income tax expense was $19.6 million for the second quarter 2020, compared to $18.5 million for the first quarter 2020, and $24.8 million for the second quarter 2019. The increase in income tax expense from the prior quarter is primarily the result of an increase in pre-tax income during the second quarter 2020 and tax expense associated with a surrender of bank owned life insurance, partially offset by a marginal decrease in the effective tax rate.

Net income was $93.3 million for the second quarter 2020, an increase of $9.3 million from $84.0 million for the first quarter 2020, and a decrease of $29.7 million, or 24.1%, from $122.9 million for the second quarter 2019. Earnings per share was $0.93 for the second quarter 2020, compared to $0.83 for the first quarter 2020, and $1.19 for the second quarter 2019. As discussed above, the decrease in net income and earnings per share for the second quarter 2020 compared to the same period in 2019 was driven by the increase in the provision for credit losses.

The Company views its operating pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company's earnings power, which it defines as net operating revenue less operating non-interest expense. For the second quarter 2020, the Company's operating PPNR1 was $194.7 million, up $31.3 million from $163.4 million in the first quarter 2020, and up $42.2 million from $152.5 million in the second quarter 2019.Non-operating income1 for the second quarter 2020 consisted of a $5.6 million gain related to the surrender and purchase of bank owned life insurance, a net fair value gain adjustment on assets measured at fair value of $4.4 million, which predominately relates to valuation increases on preferred stock holdings of other banking companies, and a net gain on sales of investment securities of $0.2 million. Non-operating expense1 items for the second quarter 2020 were not significant.

The Company had 1,851 full-time equivalent employees and 47 offices at June 30, 2020, compared to 1,858 employees and 47 offices at March 31, 2020, and 1,806 employees and 47 offices at June 30, 2019.

1 See reconciliation of Non-GAAP Financial Measures. 2 Upon adoption of CECL on January 1, 2020, Provision for credit losses has been modified to also include amounts related to unfunded loan commitments and investment securities. Prior period amounts have been restated to conform to the current presentation.

Balance Sheet

Gross loans totaled $25.0 billion at June 30, 2020, an increase of $1.9 billion from $23.2 billion at March 31, 2020, and an increase of $5.8 billion from $19.3 billion at June 30, 2019. The increase from the prior quarter was driven by loans originated under the PPP, which totaled $1.7 billion as of June 30, 2020. By loan type, the largest increases from the prior quarter include $1.6 billion in commercial and industrial loans, $165 million in residential real estate loans, and $138 million in construction and land development loans. From June 30, 2019, the largest increases in the loan balance were driven by commercial and industrial loans of $4.3 billion, residential real estate loans of $825 million, and CRE non-owner occupied loans of $659 million. The Company's allowance for credit losses on loans consists of an allowance for funded loans and an allowance for unfunded loan commitments. At June 30, 2020, the allowance for loan losses to loans held for investment was 1.24%, compared to 1.02% at March 31, 2020, and 0.83% at June 30, 2019. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to loans held for investment was 1.39% at June 30, 2020, compared to 1.14% at March 31, 2020, and 0.88% at June 30, 2019.

Deposits totaled $27.5 billion at June 30, 2020, an increase of $2.7 billion from $24.8 billion at March 31, 2020, and an increase of $6.1 billion from $21.4 billion at June 30, 2019. Deposits generated from loans originated under the PPP totaled $1.1 billion as of June 30, 2020. By deposit type, the largest increases from the prior quarter include $2.3 billion from non-interest bearing demand deposits and $845 million from savings and money market accounts. These increases were offset by decreases in certificates of deposit of $410 million and interest bearing demand deposits of $71 million. From June 30, 2019, deposits increased across most deposit types, with increases in non-interest bearing demand deposits of $3.6 billion, savings and money market accounts of $1.9 billion, and interest-bearing demand deposits of $1.0 billion. These increases were partially offset by a decrease in certificates of deposit of $361 million. Non-interest bearing deposits were $12.2 billion at June 30, 2020, compared to $9.9 billion at March 31, 2020, and $8.7 billion at June 30, 2019.

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

Jun 30, 2020 Dec 31, 2019 Jun 30, 2019

Non-interest bearing deposits 44.4 % 39.8 % 40.5 %

Savings and money market balances 35.7 36.2 36.8

Interest-bearing demand deposits 12.7 14.4 11.8

Certificates of deposit 7.2 9.6 10.9

The Company's ratio of loans to deposits was 90.9% at June 30, 2020, compared to 93.3% at March 31, 2020, and 89.8% at June 30, 2019.

Borrowings were $10 million at June 30, 2020, compared to $308 million at March 31, 2020, and zero at June 30, 2019. The decrease in borrowings from March 31, 2020 is due to a decrease in federal funds purchased.

Qualifying debt totaled $618 million at June 30, 2020, compared to $390 million at March 31, 2020, and $387 million at June 30, 2019. The increase in qualifying debt is due to the issuance of $225 million in subordinated debt in May 2020.

Stockholders' equity was $3.1 billion at June 30, 2020, compared to $3.0 billion at March 31, 2020, and $2.9 billion at June 30, 2019. The increase in stockholders' equity from June 30, 2019 is primarily a function of net income, partially offset by share repurchases and dividends to shareholders as well as the adoption impact of CECL. Under the Company's common stock repurchase program, the Company is authorized to repurchase up to $250 million of its shares of common stock through December 31, 2020. During the second quarter 2020, the Company paused its stock repurchase program. Prior to this decision, the Company repurchased 297,000 shares of its common stock through April 17, 2020. Shares were repurchased at a weighted average price of $30.73, for a total of $9.1 million. During the second quarter 2020, the Company's Board of Directors approved a cash dividend of $0.25 per share. The dividend payment to shareholders totaled $25.2 million, and was paid on May 29, 2020.

At June 30, 2020, tangible common equity, net of tax, was 8.9% of tangible assets1 and total capital was 13.4% of risk-weighted assets. The Company's tangible book value per share1 was $27.84 at June 30, 2020, up 12.9% from June 30, 2019.

Total assets increased 9.4% to $31.9 billion at June 30, 2020, from $29.2 billion at March 31, 2020, and increased 26.0% from $25.3 billion at June 30, 2019. The increase in total assets from the prior year was driven by organic loan and deposit growth, bolstered by participation in the PPP.

Asset Quality

The provision for credit losses increased to $92.0 million for the second quarter 2020, compared to $51.2 million for the first quarter 2020, and $7.0 million for the second quarter 2019. Net loan charge-offs (recoveries) in the second quarter 2020 were $5.5 million, or 0.09% of average loans (annualized), compared to $(3.2) million, or (0.06)%, in the first quarter 2020, and $1.6 million, or 0.03%, in the second quarter 2019.

Nonaccrual loans increased $53.1 million to $139.7 million during the quarter and increased $87.9 million from June 30, 2019. Loans past due 90 days and still accruing were zero at June 30, 2020, March 31, 2020, and June 30, 2019. Loans past due 30-89 days and still accruing interest totaled $9.3 million at June 30, 2020, a decrease from $38.5 million at March 31, 2020, and a decrease from $9.7 million at June 30, 2019.

Repossessed assets totaled $9.4 million at June 30, 2020, a decrease of $1.2 million from $10.6 million at March 31, 2020, and a decrease of $8.3 million from $17.7 million at June 30, 2019. Adversely graded loans and non-performing assets totaled $694.0 million at June 30, 2020, an increase of $342.8 million from $351.3 million at March 31, 2020, and $295.0 million from $399.0 million at June 30, 2019.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 9.5% at June 30, 2020, compared to 8.2% at March 31, 2020, and 7.8% at June 30, 2019.

1 See reconciliation of Non-GAAP Financial Measures.

Segment Highlights

The Company's reportable segments are aggregated primarily based on geographic location, services offered, and markets served. The Company's regional segments, which include Arizona, Nevada, Southern California, and Northern California, provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: Alliance Bank of Arizona, Bank of Nevada and First Independent Bank, Torrey Pines Bank, and Bridge Bank.

The Company's National Business Lines ("NBL") segments provide specialized banking services to niche markets. The Company's NBL reportable segments include Homeowner Associations ("HOA") Services, Hotel Franchise Finance ("HFF"), Public & Nonprofit Finance, Technology & Innovation, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than our other segments, though still predominately located within our core market areas.

The 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 Arizona, Nevada, Southern California, Northern California, and NBL segments include loan and deposit growth, asset quality, and pre-tax income.

The regional segments reported gross loan balances of $11.2 billion at June 30, 2020, an increase of $1.2 billion during the quarter, and an increase of $1.7 billion during the last twelve months. The growth in loans during the quarter was spread across all regional segments, with increases in Nevada, Arizona, Northern California, and Southern California segments of $392 million, $376 million, $319 million, and $160 million, respectively. During the last twelve months, each of the regional segments reported loan growth, with increases in Nevada, Northern California, Arizona, and Southern California segments of $593 million, $553 million, $400 million, and $166 million, respectively. Total deposits for the regional segments were $18.0 billion, an increase of $1.7 billion during the quarter, and an increase of $3.2 billion during the last twelve months. The increase in deposits during the quarter was driven by the Arizona, Nevada, and Northern California segments, with deposit increases of $1.1 billion, $401 million, and $217 million, respectively. The growth in deposits over the last twelve months was spread across all regional segments with increases in the Arizona, Northern California, Southern California, and Nevada segments of $1.5 billion, $717 million, $488 million, and $457 million, respectively.

Pre-tax income for the regional segments was $82.8 million for the three months ended June 30, 2020, a decrease of $6.2 million from the three months ended March 31, 2020, and a decrease of $14.1 million from the three months ended June 30, 2019. The decline in pre-tax income during the quarter was spread across the majority of regional segments, with decreases in the Southern California, Arizona, and Nevada segments of $6.8 million, $1.7 million, and $1.8 million, respectively. These decreases were partially offset by an increase in the Northern California segment of $4.0 million. Pre-tax income from the three months ended June 30, 2019 also declined in the Southern California, Arizona, and Nevada segments, with decreases of $9.3 million, $2.4 million, and $3.0 million, respectively. These decreases were partially offset by an increase in the Northern California segment of $0.6 million. For the six months ended June 30, 2020, the regional segments reported total pre-tax income of $171.8 million, a decrease of $13.4 million compared to the six months ended June 30, 2019. The decrease was spread across all of the regional segments, with decreases in Southern California, Arizona, Northern California, and Nevada of $10.5 million, $0.1 million, $1.6 million, and $1.2 million, respectively.

The NBL segments reported gross loan balances of $13.8 billion at June 30, 2020, an increase of $620 million during the quarter, and an increase of $4.1 billion during the last twelve months. Each of the NBL segments reported loan growth, with the largest increases in the Other NBLs and Technology & Innovation segments of $335 million and $153 million, respectively. During the last twelve months, each of the NBL segments reported loan growth, with the Other NBLs, Technology & Innovation, and HFF segments contributing the largest increases of $2.6 billion, $960 million, and $388 million, respectively. Total deposits for the NBL segments were $8.2 billion, an increase of $414 million during the quarter, and an increase of $2.2 billion during the last twelve months. The increase in deposits from the prior quarter is primarily attributable to the Technology & Innovation and HOA Services segments, which increased deposits by $262 million and $136 million, respectively. The increase in deposits of $2.2 billion during the last twelve months is also attributable to growth in the Technology & Innovation and HOA Services segments of $1.6 billion and $628 million, respectively.

Pre-tax income for the NBL segments was $74.8 million for the three months ended June 30, 2020, an increase of $27.0 million from the three months ended March 31, 2020, and an increase of $14.7 million from the three months ended June 30, 2019. The increase in pre-tax income from the prior quarter was driven by increases in the Other NBLs, Technology & Innovation, and HOA Services segments of $27.7 million, $10.2 million, and $4.6 million, respectively. These increases were partially offset by decreases in the HFF and Public & Nonprofit segments of $13.6 million and $1.9 million, respectively. The drivers of the increase in pre-tax income from the same period in the prior year were the Other NBLs, Tech & Innovation, and HOA Services segments, which had increases of $26.8 million, $5.2 million, and $3.7 million, respectively. These increases were partially offset by decreases in pre-tax income for the HFF and Public & Nonprofit segments of $18.9 million and $2.2 million, respectively. Pre-tax income for the NBL segments for the six months ended June 30, 2020 totaled $122.7 million, an increase of $3.2 million compared to the six months ended June 30, 2019. The Other NBLs and HOA Services segments each reported an increase in pre-tax income of $29.7 million and $3.0 million, respectively. These increases in pre-tax income were offset by decreases in the HFF, Tech & Innovation, and Public & Nonprofit segments of $23.4 million, $3.5 million, and $2.6 million, respectively.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2020 financial results at 12:00 p.m. ET on Friday, July 17, 2020. Participants may access the call by dialing 1-888-317-6003 and using passcode 5498595 or via live audio webcast using the website link https://services.choruscall.com/links/wal200717.html. 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 2:00 p.m. ET July 17th through 9:00 a.m. ET August 17th by dialing 1-877-344-7529 passcode: 10146019.

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.

Adoption of Accounting Standards

During the first quarter of 2020, the Company adopted the Accounting Standards Updates ("ASU") related to credit losses, which include ASU 2016-13, Measurement of Credit Losses on Financial Instruments, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, ASU 2019-05, Financial Instruments - Credit Losses, and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments-Credit Losses.

The new standards significantly change the impairment model for most financial assets that are measured at amortized cost, including off-balance sheet credit exposures, from an incurred loss model to an expected loss model. The amendments in ASU 2016-13 require that an organization measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The Company adopted the amendments within ASU 2016-13 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. The Company recorded a cumulative effect adjustment to retained earnings, which resulted in a total decrease to retained earnings of $24.9 million as of January 1, 2020. This adjustment was due primarily to expected total losses under the new model in the Company's loan portfolio and its off-balance sheet credit exposures.

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, and the impact of the COVID-19 pandemic and related economic conditions. 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, 2019 as filed with the Securities and Exchange Commission; the potential adverse effects of the ongoing COVID-19 pandemic and any governmental or societal responses thereto, or other unusual and infrequently occurring events; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management's estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes including in response to the COVID-19 pandemic such as the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") and the rules and regulations that may be promulgated thereunder; or changes in accounting principles, policies or guidelines (including changes related to CECL); 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 $30 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country's top-performing banking companies. The company has ranked in the top 10 on the Forbes "Best Banks in America" list for five consecutive years, 2016-2020, and was named #1 best-performing of the 50 largest public U.S. banks for 2019 by S&P Global Market Intelligence. Its primary subsidiary, Western Alliance Bank, Member FDIC, helps business clients realize their ambitions with local teams of experienced bankers who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. A national presence with a regional footprint, Western Alliance Bank operates individually branded, full-service banking divisions and has offices in key markets nationwide. For more information, visit westernalliancebank.com.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited





SelectedBalance Sheet Data:

As of June 30,

2020 2019 Change %

(in millions)

Total assets $ 31,906.4 $ 25,314.8 26.0 %

Gross loans,net of 25,029.4 19,250.3 30.0 deferred fees

Securities and money market investments 4,193.8 3,870.1 8.4

Total 27,544.6 21,439.9 28.5 deposits

Qualifying 617.7 387.2 59.5 debt

Stockholders' 3,102.4 2,851.3 8.8 equity

Tangiblecommon 2,807.4 2,555.0 9.9 equity, netof tax (1)





SelectedIncome StatementData:

For the Three Months Ended June 30, For the Six Months Ended June 30,

2020 2019 Change % 2020 2019 Change %

(in thousands, except per (in thousands, except per share data) share data)

Interest $ 318,238 $ 302,848 5.1 % $ 625,454 $ 594,016 5.3 %income

Interest 19,838 48,167 (58.8 ) 58,034 91,999 (36.9 ) expense

Net interest 298,400 254,681 17.2 567,420 502,017 13.0 income

Provision for 92,000 6,964 NM 143,176 11,500 NM credit losses

Net interestincome after 206,400 247,717 (16.7 ) 424,244 490,517 (13.5 ) provision forcredit losses

Non-interest 21,270 14,218 49.6 26,379 29,628 (11.0 ) income

Non-interest 114,799 114,249 0.5 235,280 226,127 4.0 expense

Income before 112,871 147,686 (23.6 ) 215,343 294,018 (26.8 ) income taxes

Income tax 19,599 24,750 (20.8 ) 38,107 50,286 (24.2 ) expense

Net income $ 93,272 $ 122,936 (24.1 ) $ 177,236 $ 243,732 (27.3 )

Dilutedearnings per $ 0.93 $ 1.19 (21.8 ) $ 1.76 $ 2.34 (24.8 ) share

(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 For the Six Months Ended June 30, Ended June 30,

2020 2019 Change % 2020 2019 Change %

Dilutedearnings per $ 0.93 $ 1.19 (21.8 ) % $ 1.76 $ 2.34 (24.8 ) %share

Book valueper common 30.76 27.51 11.8 share

Tangiblebook valueper share, 27.84 24.65 12.9 net of tax(1)

Averagesharesoutstanding (inthousands):

Basic 99,792 103,019 (3.1 ) 100,560 103,523 (2.9 )

Diluted 99,993 103,501 (3.4 ) 100,834 103,985 (3.0 )

Commonshares 100,849 103,654 (2.7 ) outstanding

SelectedPerformance Ratios:

Return onaverage 1.22 % 2.05 % (40.5 ) % 1.22 % 2.08 % (41.3 ) %assets (2)

Return onaveragetangible 13.60 19.72 (31.0 ) 12.89 20.10 (35.9 ) commonequity (1,2)

Net interest 4.19 4.59 (8.7 ) 4.20 4.65 (9.7 ) margin (2)

Operatingefficiencyratio - tax 36.28 41.99 (13.6 ) 38.92 42.01 (7.4 ) equivalentbasis (1)

Loan todeposit 90.87 89.79 1.2 ratio



AssetQuality Ratios:

Netcharge-offs(recoveries)to average 0.09 % 0.03 % NM 0.02 % 0.03 % (33.3 ) loansoutstanding(2)

Nonaccrualloans to 0.56 0.27 NM funded loans

Nonaccrualloans andrepossessed 0.47 0.27 74.1 assets tototal assets

Allowancefor loan 1.24 0.83 49.4 losses tofunded loans

Allowancefor loanlosses to 222.26 309.52 (28.2 ) nonaccrualloans

Capital Ratios:

Jun 30, Mar 31, Jun 30, 2020 2020 2019

Tangible common equity (1) 8.9 % 9.4 % 10.2 %

Common Equity Tier 1 (3) 10.2 10.0 10.6

Tier 1 Leverage ratio (3) 9.5 10.2 11.0

Tier 1 Capital (3) 10.5 10.3 10.9

Total Capital (3) 13.4 12.3 12.9

(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, 2020 are preliminary. NM Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

Three Months Ended June 30, Six Months Ended June 30,

2020 2019 2020 2019

(dollars in thousands, except per share data)

Interest income:

Loans $ 289,576 $ 270,349 $ 566,462 $ 529,167

Investment 28,254 28,900 55,621 58,034 securities

Other 408 3,599 3,371 6,815

Total interest 318,238 302,848 625,454 594,016 income

Interest expense:

Deposits 15,005 41,888 47,521 77,676

Qualifying debt 4,712 6,008 9,961 12,113

Borrowings 121 271 552 2,210

Total interest 19,838 48,167 58,034 91,999 expense

Net interest 298,400 254,681 567,420 502,017 income

Provision for 92,000 6,964 143,176 11,500 credit losses (1)

Net interestincome after 206,400 247,717 424,244 490,517 provision forcredit losses

Non-interest income:

Income from bankowned life 6,670 978 7,632 1,959 insurance

Service charges 5,130 5,821 11,534 11,233 and fees

Income fromequity 1,311 868 5,077 2,877 investments

Card income 1,178 1,625 2,895 3,466

Foreign currency 1,159 1,148 2,487 2,243 income

Lending relatedincome and gains 719 553 1,367 804 (losses) on saleof loans, net

Gain (loss) onsales of 158 - 230 - investmentsecurities

Fair value gain(loss)adjustments on 4,432 1,572 (6,868 ) 4,406 assets measuredat fair value,net

Other 513 1,653 2,025 2,640

Totalnon-interest 21,270 14,218 26,379 29,628 income

Non-interest expenses:

Salaries and 69,634 65,794 141,698 134,350 employee benefits

Legal,professional, and 10,669 11,105 21,071 18,637 directors' fees

Data processing 8,577 6,793 17,180 13,468

Occupancy 8,101 7,761 16,326 15,988

Deposit costs 3,514 7,669 10,852 13,393

Insurance 3,444 2,811 6,442 5,620

Loan andrepossessed asset 2,047 1,460 3,509 3,466 expenses

Marketing 869 1,057 1,773 1,798

Business 831 1,444 3,112 3,529 development

Card expense 383 710 1,126 1,344

Intangible 374 387 747 774 amortization

Net (gain) losson sales andvaluations of (6 ) (620 ) (1,458 ) (523 )repossessed andother assets

Other 6,362 7,878 12,902 14,283

Totalnon-interest 114,799 114,249 235,280 226,127 expense

Income before 112,871 147,686 215,343 294,018 income taxes

Income tax 19,599 24,750 38,107 50,286 expense

Net income $ 93,272 $ 122,936 $ 177,236 $ 243,732



Earnings per share:

Diluted shares 99,993 103,501 100,834 103,985

Diluted earnings $ 0.93 $ 1.19 $ 1.76 $ 2.34 per share

Upon adoption of CECL on January 1, 2020, provision for credit losses has been modified to also include amounts related to unfunded loan commitments(1) and investment securities. Prior period amounts have been restated to conform to the current presentation.

Western AllianceBancorporation and Subsidiaries

Five Quarter CondensedConsolidated Income Statements

Unaudited

Three Months Ended

Jun 30, 2020 Mar 31, 2020 Dec 31, Sep 30, Jun 30, 2019 2019 2019

(in thousands, except per share data)

Interest income:

Loans $ 289,576 $ 276,886 $ 284,971 $ 278,932 $ 270,349

Investment 28,254 27,367 28,194 29,660 28,900 securities

Other 408 2,963 2,255 7,016 3,599

Totalinterest 318,238 307,216 315,420 315,608 302,848 income

Interest expense:

Deposits 15,005 32,516 37,374 43,354 41,888

Qualifying 4,712 5,249 5,492 5,785 6,008 debt

Borrowings 121 431 581 47 271

Totalinterest 19,838 38,196 43,447 49,186 48,167 expense

Net interest 298,400 269,020 271,973 266,422 254,681 income

Provision forcredit losses 92,000 51,176 3,964 3,803 6,964 (1)

Net interestincome after 206,400 217,844 268,009 262,619 247,717 provision forcredit losses

Non-interest income:

Income frombank owned 6,670 962 963 979 978 lifeinsurance

Servicecharges and 5,130 6,404 6,233 5,888 5,821 fees

Income fromequity 1,311 3,766 1,671 3,742 868 investments

Card income 1,178 1,717 1,784 1,729 1,625

Foreigncurrency 1,159 1,328 1,423 1,321 1,148 income

Lendingrelatedincome andgains 719 648 1,815 539 553 (losses) onsale ofloans, net

Gain (loss)on sales of 158 72 - 3,152 - investmentsecurities

Fair valuegain (loss)adjustmentson assets 4,432 (11,300 ) 491 222 1,572 measured atfair value,net

Other 513 1,512 1,647 1,869 1,653

Totalnon-interest 21,270 5,109 16,027 19,441 14,218 income

Non-interest expenses:

Salaries andemployee 69,634 72,064 73,946 70,978 65,794 benefits

Legal,professional,and 10,669 10,402 10,124 8,248 11,105 directors'fees

Data 8,577 8,603 10,014 7,095 6,793 processing

Occupancy 8,101 8,225 8,256 8,263 7,761

Deposit costs 3,514 7,338 6,789 11,537 7,669

Insurance 3,444 2,998 3,233 3,071 2,811

Loan andrepossessed 2,047 1,462 2,152 1,953 1,460 assetexpenses

Marketing 869 904 1,559 842 1,057

Business 831 2,281 2,071 1,443 1,444 development

Card expense 383 743 454 548 710

Intangible 374 373 386 387 387 amortization

Net (gain)loss on salesandvaluations of (6 ) (1,452 ) 962 3,379 (620 ) repossessedand otherassets

Other 6,362 6,540 9,789 8,408 7,878

Totalnon-interest 114,799 120,481 129,735 126,152 114,249 expense

Income before 112,871 102,472 154,301 155,908 147,686 income taxes

Income tax 19,599 18,508 26,236 28,533 24,750 expense

Net income $ 93,272 $ 83,964 $ 128,065 $ 127,375 $ 122,936



Earnings per share:

Diluted 99,993 101,675 102,138 102,451 103,501 shares

Dilutedearnings per $ 0.93 $ 0.83 $ 1.25 $ 1.24 $ 1.19 share

Upon adoption of CECL on January 1, 2020, provision for credit losses has(1) been modified to also include amounts related to unfunded loan commitments and investment securities. Prior period amounts have been restated to conform to the current presentation.

WesternAlliance BancorporationandSubsidiariesFive QuarterCondensed ConsolidatedBalance Sheets

Unaudited

Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019

(in millions)

Assets:

Cash and due $ 1,518.5 $ 415.7 $ 434.6 $ 872.1 $ 1,067.7 from banks

Securities andmoney market 4,193.8 4,355.3 4,036.6 4,148.1 3,870.1 investments

Loans held for 20.2 20.9 21.8 21.8 - sale

Loans held for investment:

Commercial and 12,756.8 11,204.3 9,382.0 8,707.8 8,454.2 industrial

Commercialreal estate - 5,344.3 5,292.7 5,245.6 5,031.3 4,685.5 non-owneroccupied

Commercialreal estate - 2,257.1 2,289.0 2,316.9 2,299.8 2,254.1 owner occupied

Constructionand land 2,197.5 2,059.4 1,952.2 2,155.6 2,210.4 development

Residential 2,404.8 2,239.7 2,147.7 1,862.5 1,580.1 real estate

Consumer 48.7 60.2 57.1 74.0 66.0

Gross loans,net of 25,009.2 23,145.3 21,101.5 20,131.0 19,250.3 deferred fees

Allowance for (310.5 ) (235.3 ) (167.8 ) (165.0 ) (160.4 ) credit losses

Loans, net 24,698.7 22,910.0 20,933.7 19,966.0 19,089.9

Premises and 127.8 125.9 125.8 125.0 123.1 equipment, net

Operatinglease 70.3 72.3 72.6 74.5 71.1 right-of-useasset

Other assetsacquiredthrough 9.4 10.6 13.9 15.5 17.7 foreclosure,net

Bank owned 174.9 175.0 174.0 173.1 172.1 life insurance

Goodwill andother 296.9 297.2 297.6 298.0 298.4 intangibles,net

Other assets 795.9 775.3 711.3 630.1 604.7

Total assets $ 31,906.4 $ 29,158.2 $ 26,821.9 $ 26,324.2 $ 25,314.8

Liabilitiesand Stockholders'Equity:

Liabilities:

Deposits

Non-interestbearing demand $ 12,236.0 $ 9,886.5 $ 8,537.9 $ 8,755.7 $ 8,677.3 deposits

Interest bearing:

Demand 3,508.1 3,578.8 2,760.9 2,509.4 2,525.6

Savings and 9,823.2 8,978.1 9,120.7 9,058.4 7,898.3 money market

Certificates 1,977.3 2,387.3 2,377.0 2,117.3 2,338.7 of deposit

Total deposits 27,544.6 24,830.7 22,796.5 22,440.8 21,439.9

Customerrepurchase 25.4 23.0 16.7 15.0 13.9 agreements

Total customer 27,570.0 24,853.7 22,813.2 22,455.8 21,453.8 funds

Borrowings 10.0 308.0 - - -

Qualifying 617.7 389.9 393.6 388.9 387.2 debt

Operatinglease 76.9 78.7 78.1 79.8 76.2 liability

Accruedinterestpayable and 529.4 528.3 520.3 476.7 546.3 otherliabilities

Total 28,804.0 26,158.6 23,805.2 23,401.2 22,463.5 liabilities

Stockholders' Equity:

Common stockand additional 1,306.3 1,300.3 1,311.4 1,305.5 1,310.9 paid-incapital

Retained 1,722.4 1,661.8 1,680.3 1,581.9 1,514.0 earnings

Accumulatedother 73.7 37.5 25.0 35.6 26.4 comprehensiveincome

Totalstockholders' 3,102.4 2,999.6 3,016.7 2,923.0 2,851.3 equity

Totalliabilitiesand $ 31,906.4 $ 29,158.2 $ 26,821.9 $ 26,324.2 $ 25,314.8 stockholders'equity

WesternAllianceBancorporation andSubsidiaries

Changes in theAllowance For Credit Losseson Loans

Unaudited

Three Months Ended

Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019

(in thousands)

Allowance for loan losses

Balance,beginning of $ 235,329 $ 167,797 $ 165,021 $ 160,409 $ 154,987 period

Beginningbalanceadjustment - 19,128 - - - from adoptionof CECL

Provision forcredit losses 80,685 45,241 4,000 4,000 7,000 (1)

Recoveries ofloans previouslycharged-off:

Commercial and 586 1,299 744 2,549 495 industrial

Commercialreal estate - (365 ) 1,931 4 - 53 non-owneroccupied

Commercialreal estate - 3 4 5 8 386 owner occupied

Constructionand land 7 10 10 17 9 development

Residential 18 12 161 131 27 real estate

Consumer 10 4 6 6 8

Total 259 3,260 930 2,711 978 recoveries

Loans charged-off:

Commercial and 4,795 97 2,028 1,950 2,018 industrial

Commercialreal estate - 885 - - - - non-owneroccupied

Commercialreal estate - 43 - - 139 - owner occupied

Constructionand land - - - - 141 development

Residential - - - 9 397 real estate

Consumer - - 126 1 -

Total loans 5,723 97 2,154 2,099 2,556 charged-off

Net loancharge-offs 5,464 (3,163 ) 1,224 (612 ) 1,578 (recoveries)

Balance, end $ 310,550 $ 235,329 $ 167,797 $ 165,021 $ 160,409 of period



Allowance forunfunded loan commitments

Balance,beginning of $ 29,644 $ 8,955 $ 8,991 $ 9,188 $ 9,224 period

Beginningbalanceadjustment - 15,089 - - - from adoptionof CECL

Provision forcredit losses 6,648 5,600 (36 ) (197 ) (36 ) (1)

Balance, end $ 36,292 $ 29,644 $ 8,955 $ 8,991 $ 9,188 of period (2)



Components ofthe allowancefor credit losses onloans

Allowance for $ 310,550 $ 235,329 $ 167,797 $ 165,021 $ 160,409 loan losses

Allowance forunfunded loan 36,292 29,644 8,955 8,991 9,188 commitments

Totalallowance for $ 346,842 $ 264,973 $ 176,752 $ 174,012 $ 169,597 credit losseson loans



Netcharge-offs(recoveries) 0.09 % (0.06 ) % 0.02 % (0.01 ) % 0.03 %to averageloans -annualized



Allowance forloan losses to 1.24 % 1.02 % 0.80 % 0.82 % 0.83 %funded loans

Allowance forcredit losses 1.39 1.14 0.84 0.86 0.88 to fundedloans

Allowance forloan losses to 222.26 271.83 299.81 327.83 309.52 nonaccrualloans

Allowance forcredit losses 248.24 306.07 315.81 345.69 327.25 to nonaccrualloans

Upon adoption of CECL on January 1, 2020, the provision for credit losses presented in the income statement has been modified to include amounts related to unfunded loan commitments and investment securities. The above(1) tables reflect the provision for credit losses on funded and unfunded loans. The provision for credit losses on investment securities totaled $4.7 million, resulting in an ending allowance for credit losses on investment securities of $7.6 million.

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

WesternAllianceBancorporation andSubsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2020 2020 2019 2019 2019

(in thousands)

Nonaccrual $ 139,721 $ 86,573 $ 55,968 $ 50,338 $ 51,825 loans

Nonaccrualloans to 0.56 % 0.37 % 0.27 % 0.25 % 0.27 %funded loans

Repossessed $ 9,424 $ 10,647 $ 13,850 $ 15,483 $ 17,707 assets

Nonaccrualloans andrepossessed 0.47 % 0.33 % 0.26 % 0.25 % 0.27 %assets tototal assets



Loans past due90 days, still $ - $ - $ - $ - $ - accruing

Loans past due90 days andstill accruing - % - % - % - % - %to fundedloans

Loans past due30 to 89 days, $ 9,267 $ 38,461 $ 14,479 $ 29,502 $ 9,681 still accruing

Loans past due30 to 89 days,still accruing 0.04 % 0.17 % 0.07 % 0.15 % 0.05 %to fundedloans



Special $ 395,537 $ 104,220 $ 180,479 $ 233,835 $ 197,996 mention loans

Specialmention loans 1.58 % 0.45 % 0.86 % 1.16 % 1.03 %to fundedloans



Classifiedloans on $ 149,298 $ 149,812 $ 91,286 $ 139,576 $ 131,442 accrual

Classifiedloans on 0.60 % 0.65 % 0.43 % 0.69 % 0.68 %accrual tofunded loans

Classified $ 298,493 $ 247,082 $ 171,246 $ 220,423 $ 216,000 assets

Classifiedassets to 0.94 % 0.85 % 0.64 % 0.84 % 0.85 %total assets

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

June 30, 2020 March 31, 2020

Average Average Average Average Yield / Yield /

Balance Interest Cost Balance Interest Cost

($ in ($ in ($ in ($ in millions) thousands) millions) thousands)

Interest earning assets

Loans:

Commercial and industrial $ 12,318.3 $ 141,885 4.73 % 9,651.1 $ 124,653 5.32 %

CRE - non-owner occupied 5,345.0 65,609 4.95 5,238.0 68,913 5.30

CRE - owner occupied 2,273.7 27,517 4.97 2,281.3 29,191 5.24

Construction and land 2,128.5 30,900 5.86 2,006.0 32,257 6.50 development

Residential real estate 2,329.4 22,970 3.97 2,158.2 20,794 3.88

Consumer 53.7 695 5.21 55.4 754 5.47

Loans held for sale 21.7 - - 21.8 324 5.98

Total loans (1), (2), (3) 24,470.3 289,576 4.82 21,411.8 276,886 5.27

Securities:

Securities - taxable 2,781.3 16,254 2.35 2,889.2 17,247 2.40

Securities - tax-exempt 1,403.3 12,000 4.34 1,164.3 10,120 4.40

Total securities (1) 4,184.6 28,254 3.02 4,053.5 27,367 2.98

Cash and other 671.4 408 0.24 802.0 2,963 1.49

Total interest earning 29,326.3 318,238 4.46 26,267.3 307,216 4.80 assets

Non-interest earning assets

Cash and due from banks 162.0 196.0

Allowance for credit (271.2 ) (192.7 ) losses

Bank owned life insurance 186.6 174.4

Other assets 1,221.8 1,158.9

Total assets $ 30,625.5 $ 27,603.9

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 3,495.4 $ 1,565 0.18 % $ 3,098.5 $ 4,501 0.58 %transaction accounts

Savings and money market 9,428.4 5,564 0.24 9,033.4 17,650 0.79

Certificates of deposit 2,150.5 7,876 1.47 2,346.0 10,365 1.78

Total interest-bearing 15,074.3 15,005 0.40 14,477.9 32,516 0.90 deposits

Short-term borrowings 267.4 121 0.18 148.2 431 1.17

Qualifying debt 489.0 4,712 3.88 395.1 5,249 5.34

Total interest-bearing 15,830.7 19,838 0.50 15,021.2 38,196 1.02 liabilities

Interest cost of funding 0.27 0.58 earning assets

Non-interest-bearing liabilities

Non-interest-bearing 11,130.0 8,869.7 demand deposits

Other liabilities 608.7 643.0

Stockholders' equity 3,056.1 3,070.0

Total liabilities and $ 30,625.5 $ 27,603.9 stockholders' equity

Net interest income and $ 298,400 4.19 % $ 269,020 4.22 %margin (4)

Yields on loans and securities have been adjusted to a tax equivalent(1) basis. The tax equivalent adjustment was $7.0 million and $6.5 million for the three months ended June 30, 2020 and March 31, 2020, respectively.

Included in the yield computation are net loan fees of $27.8 million and(2) $15.5 million for the three months ended June 30, 2020 and March 31, 2020, respectively.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

June 30, 2020 June 30, 2019

Average Average Average Average Yield / Yield /

Balance Interest Cost Balance Interest Cost

($ in ($ in ($ in ($ in millions) thousands) millions) thousands)

Interest earning assets

Loans:

Commercial and industrial $ 12,318.3 $ 141,885 4.73 % $ 7,895.3 $ 113,387 5.92 %

CRE - non-owner occupied 5,345.0 65,609 4.95 4,466.2 67,510 6.08

CRE - owner occupied 2,273.7 27,517 4.97 2,253.3 29,931 5.43

Construction and land 2,128.5 30,900 5.86 2,225.5 39,806 7.20 development

Residential real estate 2,329.4 22,970 3.97 1,511.8 18,794 4.99

Consumer 53.7 695 5.21 61.5 921 6.01

Loans held for sale 21.7 - - - - -

Total loans (1), (2), (3) 24,470.3 289,576 4.82 18,413.6 270,349 5.98

Securities:

Securities - taxable 2,781.3 16,254 2.35 2,757.6 19,730 2.87

Securities - tax-exempt 1,403.3 12,000 4.34 979.5 9,170 4.66

Total securities (1) 4,184.6 28,254 3.02 3,737.1 28,900 3.34

Cash and other 671.4 408 0.24 635.2 3,599 2.27

Total interest earning 29,326.3 318,238 4.46 22,785.9 302,848 5.44 assets

Non-interest earning assets

Cash and due from banks 162.0 166.7

Allowance for credit (271.2 ) (156.4 ) losses

Bank owned life insurance 186.6 171.5

Other assets 1,221.8 1,088.8

Total assets $ 30,625.5 $ 24,056.5

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 3,495.4 $ 1,565 0.18 % $ 2,551.2 $ 5,550 0.87 %transaction accounts

Savings and money market 9,428.4 5,564 0.24 7,650.5 24,668 1.29

Certificates of deposit 2,150.5 7,876 1.47 2,271.1 11,670 2.06

Total interest-bearing 15,074.3 15,005 0.40 12,472.8 41,888 1.35 deposits

Short-term borrowings 267.4 121 0.18 58.2 271 1.87

Qualifying debt 489.0 4,712 3.88 377.3 6,008 6.39

Total interest-bearing 15,830.7 19,838 0.50 12,908.3 48,167 1.50 liabilities

Interest cost of funding 0.27 0.85 earning assets

Non-interest-bearing liabilities

Non-interest-bearing 11,130.0 7,869.2 demand deposits

Other liabilities 608.7 480.5

Stockholders' equity 3,056.1 2,798.5

Total liabilities and $ 30,625.5 $ 24,056.5 stockholders' equity

Net interest income and $ 298,400 4.19 % $ 254,681 4.59 %margin (4)

Yields on loans and securities have been adjusted to a tax equivalent(1) basis. The tax equivalent adjustment was $7.0 million and $6.2 million for the three months ended June 30, 2020 and 2019, respectively.

Included in the yield computation are net loan fees of $27.8 million and(2) $12.2 million for the three months ended June 30, 2020 and 2019, 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

Six Months Ended

June 30, 2020 June 30, 2019

Average Average Average Average Yield / Yield /

Balance Interest Cost Balance Interest Cost

($ in ($ in ($ in ($ in millions) thousands) millions) thousands)

Interest earning assets

Loans:

Commercial and industrial $ 10,984.7 $ 266,537 4.99 % $ 7,718.0 $ 222,476 5.98 %

CRE - non-owner occupied 5,291.5 134,522 5.12 4,339.4 129,951 6.05

CRE - owner occupied 2,277.5 56,708 5.11 2,290.2 60,015 5.39

Construction and land 2,067.2 63,158 6.17 2,202.0 79,509 7.30 development

Residential real estate 2,243.8 43,764 3.92 1,451.8 35,362 4.91

Consumer 54.5 1,449 5.35 61.9 1,854 6.04

Loans held for sale 21.8 324 2.99 - - -

Total loans (1), (2), (3) 22,941.0 566,462 5.03 18,063.3 529,167 6.00

Securities:

Securities - taxable 2,833.3 33,502 2.38 2,760.1 40,066 2.93

Securities - tax-exempt 1,285.8 22,119 4.36 937.8 17,968 4.81

Total securities (1) 4,119.1 55,621 3.00 3,697.9 58,034 3.40

Cash and other 736.7 3,371 0.92 543.5 6,815 2.53

Total interest earning 27,796.8 625,454 4.62 22,304.7 594,016 5.48 assets

Non-interest earning assets

Cash and due from banks 179.0 164.4

Allowance for credit (231.9 ) (155.3 ) losses

Bank owned life insurance 180.5 171.0

Other assets 1,190.3 1,100.8

Total assets $ 29,114.7 $ 23,585.6

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 3,296.9 $ 6,066 0.37 % $ 2,523.7 $ 11,133 0.89 %transaction accounts

Savings and money market 9,230.9 23,214 0.51 7,549.1 46,675 1.25

Certificates of deposit 2,248.3 18,241 1.63 2,045.7 19,868 1.96

Total interest-bearing 14,776.1 47,521 0.65 12,118.5 77,676 1.29 deposits

Short-term borrowings 207.8 552 0.53 186.3 2,210 2.39

Qualifying debt 442.0 9,961 4.53 370.2 12,113 6.60

Total interest-bearing 15,425.9 58,034 0.76 12,675.0 91,999 1.46 liabilities

Interest cost of funding 0.42 0.83 earning assets

Non-interest-bearing liabilities

Non-interest-bearing 9,999.9 7,713.3 demand deposits

Other liabilities 625.9 452.9

Stockholders' equity 3,063.0 2,744.4

Total liabilities and $ 29,114.7 $ 23,585.6 stockholders' equity

Net interest income and $ 567,420 4.20 % $ 502,017 4.65 %margin (4)

Yields on loans and securities have been adjusted to a tax equivalent(1) basis. The tax equivalent adjustment was $13.4 million and $12.3 million for the six months ended June 30, 2020 and 2019, respectively.

Included in the yield computation are net loan fees of $43.3 million and(2) $24.5 million for the six months ended June 30, 2020 and 2019, respectively.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets.



Western Alliance Bancorporation and Subsidiaries





Operating Segment Results





Unaudited









Balance Sheet: Regional Segments

Southern

Consolidated

Northern

California Company Arizona Nevada California

At June 30, 2020: (dollars in millions)



Assets:



2.1







Cash, cash equivalents, and investment securities $ 5,712.3 $ 1.6 $ 15.1 $ $

1.9







2,422.7





Loans, net of deferred loan feesand costs 25,029.4 4,336.7 2,688.6

1,747.9







(27.4

)



Less: allowance for credit losses (310.5 ) (52.6 ) (30.5 )

(17.9

)



2,395.3







Total loans 24,718.9 4,284.1 2,658.1

1,730.0







-





Other assets acquired throughforeclosure, net 9.4 - 9.3

-







-





Goodwill and other intangibleassets, net 296.9 - 23.2

154.2







14.9







Other assets 1,168.9 45.3 59.0

19.2







2,412.3







Total assets $ 31,906.4 $ 4,331.0 $ 2,764.7 $ $

1,905.3









Liabilities:



3,023.8







Deposits $ 27,544.6 $ 7,628.7 $ 4,645.7 $ $

2,726.1







-







Borrowings and qualifying debt 627.7 - -

-







7.2







Other liabilities 631.7 33.1 17.9

18.6







3,031.0







Total liabilities 28,804.0 7,661.8 4,663.6

2,744.7







275.3







Allocated equity: 3,102.4 545.8 345.8

356.9







3,306.3







Total liabilities and stockholders' equity $ 31,906.4 $ 8,207.6 $ 5,009.4 $ $

3,101.6







894.0







Excess funds provided (used) - 3,876.6 2,244.7

1,196.3













9







No. of offices 47 10 16

3







121





No. of full-time equivalentemployees 1,851 108 92

113















Income Statement:









Three Months Ended June 30, 2020: (in thousands)

36,302







Net interest income $ 298,400 $ 80,804 $ 49,555 $ $

31,107







15,288





Provision for (recovery of) creditlosses 92,000 30,222 12,782

6,528







21,014





Net interest income after provisionfor credit losses 206,400 50,582 36,733

24,579







890







Non-interest income 21,270 1,487 2,146

1,678







(13,762

)



Non-interest expense (114,799 ) (17,159) (13,514)

(11,907

)



8,142







Income (loss) before income taxes 112,871 34,910 25,405

14,350







2,280







Income tax expense (benefit) 19,599 8,728 5,335

4,018







5,862







Net income $ 93,272 $ 26,182 $ 20,070 $ $

10,332













Six Months Ended June 30, 2020: (in thousands)

68,692







Net interest income $ 567,420 $ 146,209 $ 92,703 $ $

56,992







18,537





Provision for (recovery of) creditlosses 143,176 36,793 16,467

10,823







50,155





Net interest income after provisionfor credit losses 424,244 109,416 76,236

46,169







2,083







Non-interest income 26,379 3,172 4,964

4,069







(29,196

)



Non-interest expense (235,280 ) (41,030 ) (28,614 )

(25,575

)



23,042







Income (loss) before income taxes 215,343 71,558 52,586

24,663







6,311







Income tax expense (benefit) 38,107 17,760 10,984

6,863







16,731







Net income $ 177,236 $ 53,798 $ 41,602 $ $

17,800















Western Alliance Bancorporation and Subsidiaries





Operating Segment Results





Unaudited









National Business Lines

Balance Sheet:





Public & HOA Technology & Hotel Franchise Nonprofit Corporate &



Other NBLs Services Finance Innovation Finance Other

(dollars in millions)At June 30, 2020:



Assets:



32.0





Cash, cash equivalents,and investment $ - $ - $ - $ - $ $securities 5,659.6







7,623.3





Loans, net of deferred loan fees and costs 274.0 1,685.5 2,206.7 2,043.6 0.4







(66.2

)



Less: allowance for credit losses (2.5 ) (17.1 ) (57.2 ) (39.1 ) -







7,557.1





Total loans 271.5 1,668.4 2,149.5 2,004.5 0.4







0.1





Other assets acquired through foreclosure, - - - - net -







-





Goodwill and other intangible assets, net - - 119.4 0.1 -







89.3





Other assets 5.7 18.3 8.7 16.6 891.9







7,678.5







Total assets $ 277.2 $ 1,686.7 $ 2,277.6 $ 2,021.2 $ $

6,551.9









Liabilities:



67.2







Deposits $ 3,675.1 $ 0.1 $ 4,416.5 $ - $ $

1,361.4







-





Borrowings and qualifying debt - - - - 627.7







20.2





Other liabilities (0.9 ) 100.6 5.1 0.2 429.7







87.4





Total liabilities 3,674.2 100.7 4,421.6 0.2 2,418.8







624.3





Allocated equity: 98.2 135.2 384.7 166.7 169.5







711.7





Total liabilities andstockholders' equity $ 3,772.4 $ 235.9 $ 4,806.3 $ 166.9 $ $

2,588.3







(6,966.8

)



Excess funds provided (used) 3,495.2 (1,450.8 ) 2,528.7 (1,854.3 ) (3,963.6

)











4





No. of offices 1 1 9 1 (7

)





80





No. of full-time equivalent employees 77 11 74 16 1,159















Income Statement:









Three Months Ended June (in thousands)30, 2020:

44,087







Net interest income $ 22,673 $ 1,640 $ 47,749 $ 13,428 $ $

(28,945

)





(11,315

)



Provision for (recovery of) credit losses (2,769 ) 834 16,236 19,502 4,692







55,402





Net interest income after provision for 25,442 806 31,513 (6,074 ) credit losses (33,637

)





569





Non-interest income 91 - 3,146 - 11,263







(11,441

)



Non-interest expense (9,371 ) (1,537 ) (11,383 ) (2,322 ) (22,403

)





44,530





Income (loss) before income taxes 16,162 (731 ) 23,276 (8,396 ) (44,777

)





10,242





Income tax expense (benefit) 3,717 (168 ) 5,354 (1,931 ) (17,976

)





34,288







Net income $ 12,445 $ (563 ) $ 17,922 $ (6,465 ) $ $

(26,801

)











Six Months Ended June (in thousands)30, 2020:

81,515







Net interest income $ 45,556 $ 3,551 $ 89,423 $ 26,905 $ $

(44,126

)





(2,032

)



Provision for (recovery of) credit losses (2,060 ) (227 ) 34,519 25,331 5,025







83,547





Net interest income after provision for 47,616 3,778 54,904 1,574 credit losses (49,151

)





1,183





Non-interest income 216 - 6,121 - 4,571







(23,339

)



Non-interest expense (20,069 ) (3,390 ) (24,658 ) (4,757 ) (34,652

)





61,391





Income (loss) before income taxes 27,763 388 36,367 (3,183 ) (79,232

)





13,912





Income tax expense (benefit) 6,472 312 8,270 (887 ) (31,890

)





47,479







Net income $ 21,291 $ 76 $ 28,097 $ (2,296 ) $ $

(47,342

)











Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited

Balance Sheet: Regional Segments

Consolidated Southern Northern Company California California Arizona Nevada

At December 31, (dollars in millions)2019:

Assets:

Cash, cashequivalents, and $ 4,471.2 $ 1.8 $ 9.0 $ 2.3 $ 2.2 investmentsecurities

Loans, net ofdeferred loan 21,123.3 3,847.9 2,252.5 2,253.9 1,311.2 fees and costs

Less: allowancefor credit (167.8 ) (31.6 ) (18.0 ) (18.3 ) (9.7 ) losses

Total loans 20,955.5 3,816.3 2,234.5 2,235.6 1,301.5

Other assetsacquired through 13.9 - 13.0 0.9 - foreclosure, net

Goodwill andother intangible 297.6 - 23.2 - 154.6 assets, net

Other assets 1,083.7 48.6 59.4 15.0 19.8

Total assets $ 26,821.9 $ 3,866.7 $ 2,339.1 $ 2,253.8 $ 1,478.1

Liabilities:

Deposits $ 22,796.5 $ 5,384.7 $ 4,350.1 $ 2,585.3 $ 2,373.6

Borrowings and 393.6 - - - - qualifying debt

Other 615.1 17.8 11.9 1.2 15.9 liabilities

Total 23,805.2 5,402.5 4,362.0 2,586.5 2,389.5 liabilities

Allocated 3,016.7 453.6 301.0 253.3 312.5 equity:

Totalliabilities and $ 26,821.9 $ 5,856.1 $ 4,663.0 $ 2,839.8 $ 2,702.0 stockholders'equity

Excess funds - 1,989.4 2,323.9 586.0 1,223.9 provided (used)



No. of offices 47 10 16 9 3

No. of full-timeequivalent 1,835 108 89 120 112 employees



Income Statements:



Three MonthsEnded June 30, (in thousands)2019:

Net interest $ 254,681 $ 59,719 $ 39,528 $ 31,644 $ 23,996 income

Provision for(recovery of) 6,964 1,443 (305 ) 67 (152 ) credit losses

Net interestincome (expense)after provision 247,717 58,276 39,833 31,577 24,148 for creditlosses

Non-interest 14,218 1,707 2,677 974 2,162 income

Non-interest (114,249 ) (22,693 ) (14,107 ) (15,122 ) (12,549 ) expense

Income (loss)before income 147,686 37,290 28,403 17,429 13,761 taxes

Income taxexpense 24,750 9,322 5,965 4,880 3,853 (benefit)

Net income $ 122,936 $ 27,968 $ 22,438 $ 12,549 $ 9,908



No. of offices 47 10 16 9 3

No. of full-timeequivalent 1,806 103 89 117 118 employees



Six Months Ended (in thousands)June 30, 2019:

Net interest $ 502,017 $ 114,945 $ 78,626 $ 62,120 $ 47,029 income

Provision for(recovery of) 11,500 1,604 228 800 (871 ) credit losses

Net interestincome (expense)after provision 490,517 113,341 78,398 61,320 47,900 for creditlosses

Non-interest 29,628 3,229 5,250 1,975 4,382 income

Non-interest (226,127 ) (44,943 ) (29,888 ) (29,704 ) (26,040 ) expense

Income (loss)before income 294,018 71,627 53,760 33,591 26,242 taxes

Income taxexpense 50,286 17,907 11,289 9,406 7,348 (benefit)

Net income $ 243,732 $ 53,720 $ 42,471 $ 24,185 $ 18,894



Western AllianceBancorporation and Subsidiaries

OperatingSegment Results

Unaudited



Balance National Business Lines Sheet:

HOA Public & Technology & Hotel Corporate & Services Nonprofit Innovation Franchise Other NBLs Other Finance Finance

At December (dollars in millions)31, 2019:

Assets:

Cash, cashequivalents,and $ - $ - $ - $ - $ 10.1 $ 4,445.8 investmentsecurities

Loans, net ofdeferred loan 237.2 1,635.6 1,552.0 1,930.8 6,098.7 3.5 fees andcosts

Less:allowance for (2.0 ) (13.7 ) (12.6 ) (12.6 ) (49.3 ) - credit losses

Total loans 235.2 1,621.9 1,539.4 1,918.2 6,049.4 3.5

Other assetsacquiredthrough - - - - - - foreclosure,net

Goodwill andother - - 119.7 0.1 - - intangibleassets, net

Other assets 1.2 18.3 7.3 8.8 64.3 841.0

Total assets $ 236.4 $ 1,640.2 $ 1,666.4 $ 1,927.1 $ 6,123.8 $ 5,290.3

Liabilities:

Deposits $ 3,210.1 $ 0.1 $ 3,771.5 $ - $ 36.9 $ 1,084.2

Borrowingsand - - - - - 393.6 qualifyingdebt

Other 1.8 52.9 0.1 - 2.8 510.7 liabilities

Total 3,211.9 53.0 3,771.6 - 39.7 1,988.5 liabilities

Allocated 84.5 131.6 317.5 158.5 494.3 509.9 equity:

Totalliabilitiesand $ 3,296.4 $ 184.6 $ 4,089.1 $ 158.5 $ 534.0 $ 2,498.4 stockholders'equity

Excess fundsprovided 3,060.0 (1,455.6 ) 2,422.7 (1,768.6 ) (5,589.8 ) (2,791.9 ) (used)



No. of 1 1 9 1 4 (7 ) offices

No. offull-time 75 12 76 16 75 1,152 equivalentemployees



Income Statement:



Three MonthsEnded June (in thousands)30, 2019:

Net interest $ 21,905 $ 3,461 $ 28,536 $ 13,490 $ 29,586 $ 2,816 income

Provision for(recovery of) (7 ) 96 2,657 832 2,369 (36 ) credit losses

Net interestincome(expense) 21,912 3,365 25,879 12,658 27,217 2,852 afterprovision forcredit losses

Non-interest 88 - 2,163 - 1,549 2,898 income

Non-interest (9,549 ) (1,931 ) (10,015 ) (2,162 ) (11,073 ) (15,048 ) expense

Income (loss)before income 12,451 1,434 18,027 10,496 17,693 (9,298 ) taxes

Income taxexpense 2,864 330 4,146 2,414 4,069 (13,093 ) (benefit)

Net income $ 9,587 $ 1,104 $ 13,881 $ 8,082 $ 13,624 $ 3,795



No. of 1 1 9 1 4 (7 ) offices

No. offull-time 69 13 72 16 68 1,141 equivalentemployees



Six MonthsEnded June (in thousands)30, 2019:

Net interest $ 42,546 $ 6,884 $ 57,939 $ 26,434 $ 55,277 $ 10,217 income

Provision for(recovery of) (33 ) 55 1,739 1,631 5,347 1,000 credit losses

Net interestincome(expense) 42,579 6,829 56,200 24,803 49,930 9,217 afterprovision forcredit losses

Non-interest 184 - 5,525 - 2,207 6,876 income

Non-interest (18,008 ) (3,838 ) (21,903 ) (4,560 ) (20,409 ) (26,834 ) expense

Income (loss)before income 24,755 2,991 39,822 20,243 31,728 (10,741 ) taxes

Income taxexpense 5,694 688 9,159 4,656 7,297 (23,158 ) (benefit)

Net income $ 19,061 $ 2,303 $ 30,663 $ 15,587 $ 24,431 $ 12,417



WesternAllianceBancorporation andSubsidiaries

Reconciliationof Non-GAAP FinancialMeasures

Unaudited



Operating Pre-Provision Net Revenue by Quarter:

Three Months Ended

Jun 30, 2020 Mar 31, 2020 Dec 31, Sep 30, Jun 30, 2019 2019 2019

(in thousands)

Totalnon-interest $ 21,270 $ 5,109 $ 16,027 $ 19,441 $ 14,218 income

Less:

Gain (loss) onsales ofinvestment 158 72 - 3,152 - securities,net

Fair valuegain (loss)adjustments onassets 4,432 (11,300 ) 491 222 1,572 measured atfair value,net

Bank ownedlife insurance 5,607 - - - - enhancement

Totaloperating 11,073 16,337 15,536 16,067 12,646 non-interestincome^ (1)

Plus: netinterest 298,400 269,020 271,973 266,422 254,681 income

Net operating $ 309,473 $ 285,357 $ 287,509 $ 282,489 $ 267,327 revenue^ (1)



Totalnon-interest $ 114,799 $ 120,481 $ 129,735 $ 126,152 $ 114,249 expense

Less:

Net (gain)loss on salesand valuations (6 ) (1,452 ) 962 3,379 (620 ) of repossessedand otherassets

Totaloperating $ 114,805 $ 121,933 $ 128,773 $ 122,773 $ 114,869 non-interestexpense^ (1)



Operatingpre-provision $ 194,668 $ 163,424 $ 158,736 $ 159,716 $ 152,458 net revenue ^(2), (3)



Plus:

Non-operatingrevenue 10,197 (11,228 ) 491 3,374 1,572 adjustments

Less:

Provision for 92,000 51,176 3,964 3,803 6,964 credit losses

Non-operatingexpense (6 ) (1,452 ) 962 3,379 (620 ) adjustments

Income tax 19,599 18,508 26,236 28,533 24,750 expense

Net income $ 93,272 $ 83,964 $ 128,065 $ 127,375 $ 122,936

^(1), See Non-GAAP Financial Measures footnotes.(2)

Pre-Provision Net Revenue is a non-GAAP financial metric that excludes^(3) the impact of the provision for credit losses and is calculated as net revenue less non-interest expense.

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

OperatingEfficiency Ratio byQuarter:

Three Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2020 2020 2019 2019 2019

(in thousands)

Totaloperating $ 114,805 $ 121,933 $ 128,773 $ 122,773 $ 114,869 non-interestexpense

Divided by:

Total netinterest 298,400 269,020 271,973 266,422 254,681 income

Plus:

Taxequivalent 6,997 6,453 6,359 6,423 6,218 interestadjustment

Operatingnon-interest 11,073 16,337 15,536 16,067 12,646 income

$ 316,470 $ 291,810 $ 293,868 $ 288,912 $ 273,545

Operatingefficiencyratio - tax 36.3 % 41.8 % 43.8 % 42.5 % 42.0 %equivalentbasis ^(3)

Tangible Common Equity:

Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019

(dollars and shares in thousands)

Total stockholders' $ 3,102,414 $ 2,999,633 $ 3,016,748 $ 2,923,063 $ 2,851,264 equity

Less: goodwill and 296,860 297,234 297,607 297,994 298,381 intangible assets

Total tangible common 2,805,554 2,702,399 2,719,141 2,625,069 2,552,883 equity

Plus: deferred tax -attributed to 1,796 1,861 1,921 2,005 2,105 intangible assets

Total tangible common $ 2,807,350 $ 2,704,260 $ 2,721,062 $ 2,627,074 $ 2,554,988 equity, net of tax

Total assets $ 31,906,396 $ 29,158,227 $ 26,821,948 $ 26,324,245 $ 25,314,785

Less: goodwill and 296,860 297,234 297,607 297,994 298,381 intangible assets, net

Tangible assets 31,609,536 28,860,993 26,524,341 26,026,251 25,016,404

Plus: deferred tax -attributed to 1,796 1,861 1,921 2,005 2,105 intangible assets

Total tangible assets, $ 31,611,332 $ 28,862,854 $ 26,526,262 $ 26,028,256 $ 25,018,509 net of tax

Tangible common equity 8.9 % 9.4 % 10.3 % 10.1 % 10.2 % ratio ^(4)

Common shares 100,849 101,153 102,524 102,639 103,654 outstanding

Tangible book valueper share, net of tax^ $ 27.84 $ 26.73 $ 26.54 $ 25.60 $ 24.65 (5)



^(3), (4), (5) See Non-GAAP Financial Measures footnotes.

Non-GAAP Financial Measures Footnotes



(1) We believe these non-GAAP measurements provide a useful indication of the cash generating capacity of the Company.

(2) We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.

(3) We believe this non-GAAP ratio provides a useful metric to measure the operating efficiency of the Company.

(4) We believe this non-GAAP ratio provides an important metric with which to analyze and evaluate financial condition and capital strength.

We believe this non-GAAP measurement improves the comparability to other(5) institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.



View source version on businesswire.com: https://www.businesswire.com/news/home/20200716006081/en/

CONTACT: Western Alliance Bancorporation Dale Gibbons, 602-952-5476