Business Wire | Jul 15, 2021 04:42PM EDT

Western Alliance Bancorporation Reports Second Quarter 2021 Financial Results

Jul. 15, 2021

PHOENIX--(BUSINESS WIRE)--Jul. 15, 2021--Western Alliance Bancorporation (NYSE:WAL):

SECOND QUARTER 2021 FINANCIAL RESULTS

Book valueNet Net Efficiency perincome Earnings per share PPNR^1 interest ratio^1 margin common share

$2.17 $38.70

$32.86^1,$223.8 $2.29, excluding $277.4 3.51% 44.5% excludingmillion acquisition and million restructure expenses goodwill and intangibles

CEO COMMENTARY:

"Western Alliance continued to execute on its diversified national commercial business strategy, effectively deploying excess liquidity and generating record revenues, PPNR1 and earnings for the second quarter 2021," said Kenneth A. Vecchione, President and Chief Executive Officer. "Balance sheet growth was driven by an increase in HFI loans of $2.0 billion (29.3% annualized), excluding PPP payoffs, supported by deposit growth of $3.5 billion (36.9% annualized), lifting total assets to $49.1 billion and PPNR1 by 37.1% in the quarter to $277.4 million. As we began to unlock the value from the AmeriHome acquisition, we achieved record net income of $223.8 million, earnings per share of $2.17 and return on tangible common equity of 28.1% for the second quarter 2021. Asset quality remained strong with nonperforming assets to total assets of 0.20% and negligible net charge-offs for the quarter."

Acquisition of AmeriHome Mortgage Company:

On April 7, 2021, the Company completed its previously announced acquisition of Aris Mortgage Holding Company, LLC, the parent company of AmeriHome Mortgage Company, LLC ("AmeriHome"). The Company's results for the second quarter 2021 include the financial results of AmeriHome beginning on April 7, 2021. Pursuant to accounting guidance, acquired assets and liabilities are recorded at estimated fair value as of the acquisition date. The estimated fair value of certain net assets are preliminary and are subject to measurement period adjustments. Based on AmeriHome's closing balance sheet and a $275 million premium, cash consideration was approximately $1.22 billion.

CEO COMMENTARY:

"Western Alliance continued to execute on its diversified national commercialbusiness strategy, effectively deploying excess liquidity and generating recordrevenues, PPNR^1 and earnings for the second quarter 2021," said Kenneth A.Vecchione, President and Chief Executive Officer. "Balance sheet growth wasdriven by an increase in HFI loans of $2.0 billion (29.3% annualized),excluding PPP payoffs, supported by deposit growth of $3.5 billion (36.9%annualized), lifting total assets to $49.1 billion and PPNR^1 by 37.1% in thequarter to $277.4 million. As we began to unlock the value from the AmeriHomeacquisition, we achieved record net income of $223.8 million, earnings pershare of $2.17 and return on tangible common equity of 28.1% for the secondquarter 2021. Asset quality remained strong with nonperforming assets to totalassets of 0.20% and negligible net charge-offs for the quarter."

Acquisition of AmeriHome Mortgage Company:

On April 7, 2021, the Company completed its previously announced acquisition ofAris Mortgage Holding Company, LLC, the parent company of AmeriHome MortgageCompany, LLC ("AmeriHome"). The Company's results for the second quarter 2021include the financial results of AmeriHome beginning on April 7, 2021. Pursuantto accounting guidance, acquired assets and liabilities are recorded atestimated fair value as of the acquisition date. The estimated fair value ofcertain net assets are preliminary and are subject to measurement periodadjustments. Based on AmeriHome's closing balance sheet and a $275 millionpremium, cash consideration was approximately $1.22 billion.

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:

* Net income of $223.8 million and earnings per share of $2.17, compared to $192.5 million and $1.90, respectively

* Net income of $223.8 million and earnings per share of $2.17, up 139.9% and 133.3%, from $93.3 million and $0.93, respectively

* Net revenue of $506.5 million, an increase of 50.3%, or $169.5 million, compared to an increase in non-interest expenses of 81.3%, or $109.8 million

* Net revenue of $506.5 million, an increase of 58.4%, or $186.8 million, compared to an increase in non-interest expenses of 113.2%, or $130.0 million

* Pre-provision net revenue1 of $277.4 million, up $75.0 million from $202.4 million

* Pre-provision net revenue1 of $277.4 million, up $72.5 million from $204.9 million

* Effective tax rate of 19.0%, compared to 17.9%

* Effective tax rate of 19.0%, compared to 17.4%

FINANCIAL POSITION RESULTS:

* HFI loans of $30.0 billion, up $1.3 billion, or 18.4% annualized

* Increase in HFI loans of $5.0 billion, or 20.1%

* Total deposits of $41.9 billion, up $3.5 billion, or 36.9% annualized

* Increase in total deposits of $14.4 billion, or 52.2%

* Stockholders' equity of $4.0 billion, up $322 million

* Increase in stockholders' equity of $932 million

LOANS AND ASSET QUALITY:

* Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.20%, compared to 0.27%

* Nonperforming assets to total assets of 0.20%, compared to 0.47%

* Annualized net loan charge-offs to average loans outstanding of approximately 0.00%, compared to 0.02%

* Annualized net loan charge-offs to average loans outstanding of approximately 0.00%, compared to 0.09%

KEY PERFORMANCE METRICS:

* Net interest margin of 3.51%, compared to 3.37%

* Net interest margin of 3.51%, compared to 4.19%

* Return on average assets and on tangible common equity1 of 1.86% and 28.1%, compared to 1.93% and 24.2%, respectively

* Return on average assets and on tangible common equity1 of 1.86% and 28.1%, compared to 1.22% and 13.6%, respectively

* Tangible common equity ratio1 of 7.1%, compared to 7.9%

* Tangible common equity ratio1 of 7.1%, compared to 8.9%

* Tangible book value per share1, net of tax, of $32.86, a decrease of 0.5% from $33.02

* Tangible book value per share1, net of tax, of $32.86, an increase of 18.0% from $27.84

* Efficiency ratio1 of 44.5%, compared to 39.0%

* Efficiency ratio1 of 44.5%, compared to 35.1%

1 See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income was $370.5 million in the second quarter 2021, an increase of $53.2 million from $317.3 million in the first quarter 2021, and an increase of $72.1 million, or 24.2%, compared to the second quarter 2020. Continued loan growth and interest income from AmeriHome's HFS loans drove the increase in net interest income from both the first quarter 2021 and the second quarter 2020.

The Company recorded a reversal of credit loss provisions totaling $14.5 million in the second quarter 2021, a decrease of $17.9 million from the $32.4 million reversal in the first quarter 2021, compared to a provision for credit losses of $92.0 million in the second quarter 2020. The reversal of provisions during the second quarter 2021 is due to continued improvement in economic forecasts relative to March 31, 2021 and concentration of loan growth in portfolio segments with lower expected loss rates.

The Company's net interest margin in the second quarter 2021 was 3.51%, an increase from 3.37% in the first quarter 2021 and a decrease from 4.19% in the second quarter 2020. The increase in net interest margin from the prior period is largely a result of the deployment of excess liquidity. The decrease in net interest margin from the second quarter 2020 was driven by the lower rate environment, which lowered loan and investment security yields, but also decreased deposit costs.

Non-interest income was $136.0 million for the second quarter 2021, compared to $19.7 million for the first quarter 2021, and $21.3 million for the second quarter 2020. The increase in non-interest income from the first quarter 2021 and second quarter 2020 is primarily the result of mortgage banking related income from AmeriHome.

Net revenue was $506.5 million for the second quarter 2021, an increase of $169.5 million, or 50.3%, compared to $337.0 million for the first quarter 2021, and an increase of $186.8 million, or 58.4%, compared to $319.7 million for the second quarter 2020. The increase in net revenue from the first quarter 2021 and second quarter 2020 was driven by an increase in loan interest income generated from loan growth and the AmeriHome HFS loans, coupled with an increase in non-interest income from mortgage banking related income.

Non-interest expense of $244.8 million for the second quarter 2021, or $229.1 million adjusted1 to exclude AmeriHome acquisition and restructure related expenses, compared to $135.0 million for the first quarter 2021, or $134.6 million adjusted1, and $114.8 million for the second quarter 2020. The Company's efficiency ratio1, adjusted to exclude acquisition and restructure related expenses, was 44.5% for the second quarter 2021, compared to 39.0% in the first quarter 2021, and 35.1% for the second quarter 2020. The increase in adjusted non-interest expense1 from the second quarter 2020 is attributable to growth from the AmeriHome acquisition, which increased compensation costs and also introduced additional non-interest expense items, such as net loan servicing and loan acquisition and origination expenses.

Income tax expense was $52.4 million for the second quarter 2021, compared to $41.9 million for the first quarter 2021, and $19.6 million for the second quarter 2020.

Net income was $223.8 million for the second quarter 2021, an increase of $31.3 million from $192.5 million for the first quarter 2021, and an increase of $130.5 million from $93.3 million for the second quarter 2020. Earnings per share was $2.17, or $2.29 per share after adjusting for acquisition and restructure expenses, for the second quarter 2021, compared to $1.90 for the first quarter 2021, and $0.93 for the second quarter 2020. As discussed above, the increase in net income and earnings per share for the second quarter 2021 compared to the same quarter last year was driven by a release in the provision for credit losses coupled with new activity related to the AmeriHome acquisition.

The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company's earnings power, which it defines as net revenue less non-interest expense, adjusted for acquisition and restructure expenses. For the second quarter 2021, the Company's PPNR1 was $277.4 million, up $75.0 million from $202.4 million in the first quarter 2021, and up $72.5 million from $204.9 million in the second quarter 2020. The increase in PPNR from the first quarter 2021 and second quarter 2020 was driven by the AmeriHome acquisition completed on April 7, 2021, as the increase to net revenue was larger than the increase in adjusted non-interest expense1.

The Company had 3,075 full-time equivalent employees and 53 offices at June 30, 2021, compared to 1,947 employees and 49 offices at March 31, 2021, and 1,851 employees and 47 offices at June 30, 2020. The increase in employees from March 31, 2021 primarily relates to the addition of AmeriHome employees.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

Gross HFI loans totaled $30.0 billion at June 30, 2021, an increase of $1.3 billion from $28.7 billion at March 31, 2021, and an increase of $5.0 billion from $25.0 billion at June 30, 2020. The increase in HFI loans from the prior quarter is primarily attributable to an increase of $2.0 billion in residential real estate loans, offset in part by a decrease of $786 million in commercial and industrial loans. From June 30, 2020, the largest increases in the loan balance were driven by residential real estate loans of $2.7 billion, commercial and industrial loans of $1.5 billion (includes $865 million of PPP loans), construction and land development loans of $659 million, and CRE non-owner occupied loans of $351 million. These increases were offset by a decrease in CRE owner occupied loans of $229 million. 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, 2021, the allowance for loan losses to funded HFI loans was 0.78%, compared to 0.86% at March 31, 2021, and 1.24% at June 30, 2020. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans was 0.88% at June 30, 2021, compared to 0.97% at March 31, 2021, and 1.39% at June 30, 2020.

Deposits totaled $41.9 billion at June 30, 2021, an increase of $3.5 billion from $38.4 billion at March 31, 2021, and an increase of $14.4 billion from $27.5 billion at June 30, 2020. By deposit type, the increases from the prior quarter include $2.6 billion from non-interest bearing demand deposits, $534 million from savings and money market accounts, $294 million from interest bearing demand deposits, and $137 million from certificates of deposit. From June 30, 2020, deposits increased across most deposit types, with increases in non-interest bearing demand deposits of $7.9 billion, savings and money market accounts of $6.0 billion, and interest-bearing demand deposits of $680 million. These increases were partially offset by a decrease in certificates of deposit of $160 million. Non-interest bearing deposits were $20.1 billion at June 30, 2021, compared to $17.5 billion at March 31, 2021, and $12.2 billion at June 30, 2020.

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

LINKED-QUARTER BASIS YEAR-OVER-YEAR



FINANCIAL HIGHLIGHTS:

* Net income of $223.8 million and * Net income of $223.8 million and earnings per share of $2.17, earnings per share of $2.17, up compared to $192.5 million and 139.9% and 133.3%, from $93.3 $1.90, respectively million and $0.93, respectively

* Net revenue of $506.5 million, an * Net revenue of $506.5 million, an increase of 50.3%, or $169.5 increase of 58.4%, or $186.8 million, compared to an increase in million, compared to an increase in non-interest expenses of 81.3%, or non-interest expenses of 113.2%, or $109.8 million $130.0 million

* Pre-provision net revenue^1 of * Pre-provision net revenue^1 of $277.4 million, up $75.0 million $277.4 million, up $72.5 million from $202.4 million from $204.9 million

* Effective tax rate of 19.0%, * Effective tax rate of 19.0%, compared to 17.9% compared to 17.4%



FINANCIAL POSITION RESULTS:

* HFI loans of $30.0 billion, up $1.3 * Increase in HFI loans of $5.0 billion, or 18.4% annualized billion, or 20.1%

* Total deposits of $41.9 billion, up * Increase in total deposits of $14.4 $3.5 billion, or 36.9% annualized billion, or 52.2%

* Stockholders' equity of $4.0 * Increase in stockholders' equity of billion, up $322 million $932 million



LOANS AND ASSET QUALITY:

* Nonperforming assets (nonaccrual loans and repossessed assets) to * Nonperforming assets to total total assets of 0.20%, compared to assets of 0.20%, compared to 0.47% 0.27%

* Annualized net loan charge-offs to * Annualized net loan charge-offs to average loans outstanding of average loans outstanding of approximately 0.00%, compared to approximately 0.00%, compared to 0.02% 0.09%



KEY PERFORMANCE METRICS:

* Net interest margin of 3.51%, * Net interest margin of 3.51%, compared to 3.37% compared to 4.19%

* Return on average assets and on * Return on average assets and on tangible common equity^1 of 1.86% tangible common equity^1 of 1.86% and 28.1%, compared to 1.93% and and 28.1%, compared to 1.22% and 24.2%, respectively 13.6%, respectively

* Tangible common equity ratio^1 of * Tangible common equity ratio^1 of 7.1%, compared to 7.9% 7.1%, compared to 8.9%

* Tangible book value per share^1, * Tangible book value per share^1, net of tax, of $32.86, a decrease net of tax, of $32.86, an increase of 0.5% from $33.02 of 18.0% from $27.84

* Efficiency ratio^1 of 44.5%,^ * Efficiency ratio^1 of 44.5%, compared to 39.0% compared to 35.1%

1 See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income was $370.5 million in the second quarter 2021, an increase of $53.2 million from $317.3 million in the first quarter 2021, and an increase of $72.1 million, or 24.2%, compared to the second quarter 2020. Continued loan growth and interest income from AmeriHome's HFS loans drove the increase in net interest income from both the first quarter 2021 and the second quarter 2020.

The Company recorded a reversal of credit loss provisions totaling $14.5 million in the second quarter 2021, a decrease of $17.9 million from the $32.4 million reversal in the first quarter 2021, compared to a provision for credit losses of $92.0 million in the second quarter 2020. The reversal of provisions during the second quarter 2021 is due to continued improvement in economic forecasts relative to March 31, 2021 and concentration of loan growth in portfolio segments with lower expected loss rates.

The Company's net interest margin in the second quarter 2021 was 3.51%, an increase from 3.37% in the first quarter 2021 and a decrease from 4.19% in the second quarter 2020. The increase in net interest margin from the prior period is largely a result of the deployment of excess liquidity. The decrease in net interest margin from the second quarter 2020 was driven by the lower rate environment, which lowered loan and investment security yields, but also decreased deposit costs.

Non-interest income was $136.0 million for the second quarter 2021, compared to $19.7 million for the first quarter 2021, and $21.3 million for the second quarter 2020. The increase in non-interest income from the first quarter 2021 and second quarter 2020 is primarily the result of mortgage banking related income from AmeriHome.

Net revenue was $506.5 million for the second quarter 2021, an increase of $169.5 million, or 50.3%, compared to $337.0 million for the first quarter 2021, and an increase of $186.8 million, or 58.4%, compared to $319.7 million for the second quarter 2020. The increase in net revenue from the first quarter 2021 and second quarter 2020 was driven by an increase in loan interest income generated from loan growth and the AmeriHome HFS loans, coupled with an increase in non-interest income from mortgage banking related income.

Non-interest expense of $244.8 million for the second quarter 2021, or $229.1 million adjusted1 to exclude AmeriHome acquisition and restructure related expenses, compared to $135.0 million for the first quarter 2021, or $134.6 million adjusted1, and $114.8 million for the second quarter 2020. The Company's efficiency ratio1, adjusted to exclude acquisition and restructure related expenses, was 44.5% for the second quarter 2021, compared to 39.0% in the first quarter 2021, and 35.1% for the second quarter 2020. The increase in adjusted non-interest expense1 from the second quarter 2020 is attributable to growth from the AmeriHome acquisition, which increased compensation costs and also introduced additional non-interest expense items, such as net loan servicing and loan acquisition and origination expenses.

Income tax expense was $52.4 million for the second quarter 2021, compared to $41.9 million for the first quarter 2021, and $19.6 million for the second quarter 2020.

Net income was $223.8 million for the second quarter 2021, an increase of $31.3 million from $192.5 million for the first quarter 2021, and an increase of $130.5 million from $93.3 million for the second quarter 2020. Earnings per share was $2.17, or $2.29 per share after adjusting for acquisition and restructure expenses, for the second quarter 2021, compared to $1.90 for the first quarter 2021, and $0.93 for the second quarter 2020. As discussed above, the increase in net income and earnings per share for the second quarter 2021 compared to the same quarter last year was driven by a release in the provision for credit losses coupled with new activity related to the AmeriHome acquisition.

The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company's earnings power, which it defines as net revenue less non-interest expense, adjusted for acquisition and restructure expenses. For the second quarter 2021, the Company's PPNR1 was $277.4 million, up $75.0 million from $202.4 million in the first quarter 2021, and up $72.5 million from $204.9 million in the second quarter 2020. The increase in PPNR from the first quarter 2021 and second quarter 2020 was driven by the AmeriHome acquisition completed on April 7, 2021, as the increase to net revenue was larger than the increase in adjusted non-interest expense1.

The Company had 3,075 full-time equivalent employees and 53 offices at June 30, 2021, compared to 1,947 employees and 49 offices at March 31, 2021, and 1,851 employees and 47 offices at June 30, 2020. The increase in employees from March 31, 2021 primarily relates to the addition of AmeriHome employees.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

Gross HFI loans totaled $30.0 billion at June 30, 2021, an increase of $1.3 billion from $28.7 billion at March 31, 2021, and an increase of $5.0 billion from $25.0 billion at June 30, 2020. The increase in HFI loans from the prior quarter is primarily attributable to an increase of $2.0 billion in residential real estate loans, offset in part by a decrease of $786 million in commercial and industrial loans. From June 30, 2020, the largest increases in the loan balance were driven by residential real estate loans of $2.7 billion, commercial and industrial loans of $1.5 billion (includes $865 million of PPP loans), construction and land development loans of $659 million, and CRE non-owner occupied loans of $351 million. These increases were offset by a decrease in CRE owner occupied loans of $229 million. 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, 2021, the allowance for loan losses to funded HFI loans was 0.78%, compared to 0.86% at March 31, 2021, and 1.24% at June 30, 2020. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans was 0.88% at June 30, 2021, compared to 0.97% at March 31, 2021, and 1.39% at June 30, 2020.

Deposits totaled $41.9 billion at June 30, 2021, an increase of $3.5 billion from $38.4 billion at March 31, 2021, and an increase of $14.4 billion from $27.5 billion at June 30, 2020. By deposit type, the increases from the prior quarter include $2.6 billion from non-interest bearing demand deposits, $534 million from savings and money market accounts, $294 million from interest bearing demand deposits, and $137 million from certificates of deposit. From June 30, 2020, deposits increased across most deposit types, with increases in non-interest bearing demand deposits of $7.9 billion, savings and money market accounts of $6.0 billion, and interest-bearing demand deposits of $680 million. These increases were partially offset by a decrease in certificates of deposit of $160 million. Non-interest bearing deposits were $20.1 billion at June 30, 2021, compared to $17.5 billion at March 31, 2021, and $12.2 billion at June 30, 2020.

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

Jun 30, 2021 Mar 31, 2021 Jun 30, 2020

Non-interest bearing 48.0 % 45.7 % 44.4 %

Savings and money market 37.7 39.8 35.7

Interest-bearing demand 10.0 10.1 12.7

Certificates of deposit 4.3 4.4 7.2

The Company's ratio of loans to deposits was 71.6% at June 30, 2021, compared to 74.8% at March 31, 2021, and 90.8% at June 30, 2020.

Borrowings were $595 million at June 30, 2021, $5 million at March 31, 2021, and $10 million at June 30, 2020. The increase in borrowings from June 30, 2020 is due to the assumption of borrowings related to the acquisition of AmeriHome, coupled with the issuance of $242 million in credit linked notes during the second quarter 2021.

Qualifying debt totaled $1.1 billion at June 30, 2021, compared to $544 million at March 31, 2021, and $618 million at June 30, 2020. The increase in qualifying debt from March 31, 2021 and June 30, 2020 is primarily related to the issuance of $600 million in subordinated debt in June 2021.

Stockholders' equity was $4.0 billion at June 30, 2021, compared to $3.7 billion at March 31, 2021, and $3.1 billion at June 30, 2020. The increase in stockholders' equity from March 31, 2021 is attributable to net income and net proceeds of $70.0 million from the sale of the Company's common stock under its ATM program, partially offset by dividends to shareholders. During the quarter, the Company sold 0.7 million shares of its common stock for a purchase price of $100.59 per share, with aggregate net proceeds totaling $70.0 million. In addition, a cash dividend of $0.25 per share was paid to shareholders on May 28, 2021, totaling $25.9 million. The increase in stockholders' equity from June 30, 2020 is primarily a function of net income and sales of common stock in a direct stock offering and under the Company's ATM program, partially offset by share repurchases and dividends to shareholders. The Company sold 2.3 million shares of its common stock in a registered direct offering during the first quarter 2021, for aggregate net proceeds of $209.2 million.

At June 30, 2021, tangible common equity, net of tax, was 7.1% of tangible assets1 and total capital was 12.8% of risk-weighted assets. The Company's tangible book value per share1 was $32.86 at June 30, 2021, up 18.0% from June 30, 2020.

Total assets increased 13.1% to $49.1 billion at June 30, 2021, from $43.4 billion at March 31, 2021, and increased 53.8% from $31.9 billion at June 30, 2020. The increase in total assets from the prior quarter and prior year was driven by the acquisition of net assets in the AmeriHome acquisition as well as continued organic loan and deposit growth.

Asset Quality

Recovery of credit provisions totaled $(14.5) million for the second quarter 2021, compared to $(32.4) million for the first quarter 2021, and a provision for credit losses of $92.0 million for the second quarter 2020. Net loan charge-offs in the second quarter 2021 were $0.1 million, or approximately 0.00% of average loans (annualized), compared to $1.4 million, or 0.02%, in the first quarter 2021, and $5.5 million, or 0.09%, in the second quarter 2020.

Nonaccrual loans decreased $17.3 million to $96.3 million during the quarter and decreased $43.4 million from June 30, 2020. Loans past due 90 days and still accruing interest were zero at June 30, 2021, March 31, 2021, and June 30, 2020. Loans past due 30-89 days and still accruing interest totaled $9.8 million at June 30, 2021, an increase from $7.3 million at March 31, 2021, and from $9.3 million at June 30, 2020.

Repossessed assets totaled $3.9 million at June 30, 2021, a decrease of $0.3 million from $4.2 million at March 31, 2021, and a decrease of $5.5 million from $9.4 million at June 30, 2020. Classified assets totaled $238.5 million at June 30, 2021, a decrease of $42.4 million from $280.9 million at March 31, 2021, and a decrease of $60.0 million from $298.5 million at June 30, 2020.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 6.4% at June 30, 2021, compared to 7.5% at March 31, 2021, and 9.5% at June 30, 2020.

1 See reconciliation of Non-GAAP Financial Measures.

Segment Highlights

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

* Commercial segment: provides commercial banking and treasury management products and services to small and middle-market businesses, specialized banking services to sophisticated commercial institutions and investors within niche industries, as well as financial services to the real estate industry. * Consumer Related segment: offers both commercial banking services to enterprises in consumer-related sectors and consumer banking services, such as residential mortgage banking and beginning on April 7, 2021 includes the financial results of AmeriHome. * Corporate & Other segment: consists of the Company's investment portfolio, Corporate borrowings and other related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.

Key management metrics for evaluating the performance of the Company's Commercial and Consumer Related segments include loan and deposit growth, asset quality, and pre-tax income.

The Commercial segment reported a gross loan balance of $20.6 billion at June 30, 2021, a decrease of $18 million during the quarter, and an increase of $1.3 billion during the last twelve months. Deposits for the Commercial segment totaled $26.3 billion at June 30, 2021, an increase of $2.1 billion during the quarter, and an increase of $7.0 billion during the last twelve months.

Pre-tax income for the Commercial segment was $209.1 million for the three months ended June 30, 2021, a decrease of $11.8 million from the three months ended March 31, 2021, and an increase of $113.8 million from the three months ended June 30, 2020. For the six months ended June 30, 2021, the Commercial segment reported total pre-tax income of $430.0 million, an increase of $225.0 million compared to the six months ended June 30, 2020.

The Consumer Related segment reported a gross loan balance of $9.4 billion at June 30, 2021, an increase of $1.3 billion during the quarter, and an increase of $3.7 billion during the last twelve months. Deposits for the Consumer Related segment totaled $14.8 billion, an increase of $1.6 billion during the quarter, and an increase of $7.9 billion during the last twelve months.

Pre-tax income for the Consumer Related segment was $113.6 million for the three months ended June 30, 2021, an increase of $42.1 million from the three months ended March 31, 2021, and an increase of $51.5 million from the three months ended June 30, 2020. For the six months ended June 30, 2021, the Consumer Related segment reported total pre-tax income of $185.1 million, an increase of $95.7 million compared to the six months ended June 30, 2020.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its second quarter 2021 financial results at 12:00 p.m. ET on Friday, July 16, 2021. Participants may access the call by dialing 1-833-236-2753 and using the conference ID 3676158 or via live audio webcast using the website link https://event.on24.com/wcc/r/3193389/31D45D4F64571FF63BCB31CE90498085. 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 16th through 11:00 p.m. ET August 16th by dialing 1-800-585-8367, conference ID: 3676158.

Reclassifications

Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders' equity as previously reported.

Use of Non-GAAP Financial Information

This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company's results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Cautionary Note Regarding Forward-Looking Statements

This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; inflation, interest rate, market and monetary fluctuations; our ability to successfully integrate and operate AmeriHome; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management's estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management's estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.

About Western Alliance Bancorporation

With approximately $50 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country's top-performing banking companies. The company is again #1 best-performing of the 50 largest public U.S. banks in the new S&P Global Market Intelligence listing for 2020 and ranks high on the Forbes "Best Banks in America" list year after year. Its primary subsidiary, Western Alliance Bank, Member FDIC, helps business clients realize their ambitions with teams of experienced bankers who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. Most recently, the bank added to these capabilities with the acquisition of AmeriHome Mortgage, a leading national business-to-business mortgage platform. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking brands and has offices in key markets nationwide. For more information, visit westernalliancebank.com.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited



Selected Balance Sheet Data:

As of June 30,

2021 2020 Change %

(in millions)

Total assets $ 49,069.0 $ 31,906.4 53.8 %

Loans held for sale 4,465.2 20.2 NM

Gross HFI loans, net of deferred fees 30,026.4 25,009.2 20.1

Investment securities 7,845.0 4,193.8 87.1

Total deposits 41,921.0 27,544.6 52.2

Qualifying debt 1,140.0 617.7 84.6

Stockholders' equity 4,034.5 3,102.4 30.0

Tangible common equity, net of tax (1) 3,425.6 2,807.3 22.0



Selected Income Statement Data:

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

2021 2020 Change 2021 2020 Change % %

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

Interest $ 398.5 $ 318.2 25.2 % $ 732.6 $ 625.4 17.1 %income

Interest 28.0 19.8 41.4 44.8 58.0 (22.8 )expense

Net interest 370.5 298.4 24.2 687.8 567.4 21.2 income

(Recoveryof)provision (14.5 ) 92.0 NM (46.9 ) 143.2 NM for creditlosses

Net interestincome afterprovision 385.0 206.4 86.5 734.7 424.2 73.2 for creditlosses

Non-interest 136.0 21.3 NM 155.7 26.4 NM income

Non-interest 244.8 114.8 NM 379.8 235.3 61.4 expense

Incomebefore 276.2 112.9 NM 510.6 215.3 NM income taxes

Income tax 52.4 19.6 NM 94.3 38.1 NM expense

Net income $ 223.8 $ 93.3 NM $ 416.3 $ 177.2 NM

Dilutedearnings per $ 2.17 $ 0.93 NM $ 4.07 $ 1.76 NM share

(1)

See Reconciliation of Non-GAAP Financial Measures.

NM

Changes +/- 100% are not meaningful.

(1) See Reconciliation of Non-GAAP Financial Measures.

NM Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

Common Share Data:

At or For the Three Months Ended June 30,

For the Six Months Ended June 30,

2021

2020

Change %

2021

2020

Change %

Diluted earnings per share

$

2.17

$

0.93

NM

$

4.07

$

1.76

NM

Book value per common share

38.70

30.76

25.8

Tangible book value per share, net of tax (1)

32.86

27.84

18.0

Average shares outstanding (in millions):

Basic

102.7

99.8

2.9

101.8

100.6

1.2

Diluted

103.4

100.0

3.4

102.4

100.8

1.6

Common shares outstanding

104.2

100.8

3.4

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited



Common Share Data:

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

2021 2020 Change 2021 2020 Change % %

Diluted earnings $ 2.17 $ 0.93 NM $ 4.07 $ 1.76 NM per share

Book value per 38.70 30.76 25.8 common share

Tangible bookvalue per share, 32.86 27.84 18.0 net of tax (1)

Average sharesoutstanding (in millions):

Basic 102.7 99.8 2.9 101.8 100.6 1.2

Diluted 103.4 100.0 3.4 102.4 100.8 1.6

Common shares 104.2 100.8 3.4 outstanding

Selected Performance Ratios:

Return on average assets (2)

1.86

%

1.22

%

52.5

%

1.89

%

1.22

%

54.9

%

Return on average tangible common equity (1, 2)

28.1

13.6

NM

26.2

12.9

NM

Net interest margin (2)

3.51

4.19

(16.2

)

3.45

4.20

(17.9

)

Efficiency ratio - tax equivalent basis (1)

44.5

35.1

26.8

42.3

35.1

20.5

Loan to deposit ratio

71.6

90.8

(21.1

)

Asset Quality Ratios:

Net charge-offs to average loans outstanding (2)

0.00

%

0.09

%

NM

0.01

%

0.02

%

(50.0

)

Nonaccrual loans to funded HFI loans

0.32

0.56

(42.9

)

Nonaccrual loans and repossessed assets to total assets

0.20

0.47

(57.4

)

Allowance for loan losses to funded HFI loans

0.78

1.24

(37.1

)

Allowance for loan losses to nonaccrual HFI loans

242

222

8.8

Selected Performance Ratios:

Return on average 1.86 % 1.22 % 52.5 % 1.89 % 1.22 % 54.9 %assets (2)

Return on averagetangible common equity 28.1 13.6 NM 26.2 12.9 NM (1, 2)

Net interest margin (2) 3.51 4.19 (16.2 ) 3.45 4.20 (17.9 )

Efficiency ratio - tax 44.5 35.1 26.8 42.3 35.1 20.5 equivalent basis (1)

Loan to deposit ratio 71.6 90.8 (21.1 )



Asset Quality Ratios:

Net charge-offs toaverage loans 0.00 % 0.09 % NM 0.01 % 0.02 % (50.0 )outstanding (2)

Nonaccrual loans to 0.32 0.56 (42.9 ) funded HFI loans

Nonaccrual loans andrepossessed assets to 0.20 0.47 (57.4 ) total assets

Allowance for loanlosses to funded HFI 0.78 1.24 (37.1 ) loans

Allowance for loanlosses to nonaccrual 242 222 8.8 HFI loans

Capital Ratios:

Jun 30, 2021

Mar 31, 2021

Jun 30, 2020

Tangible common equity (1)

7.1

%

7.9

%

8.9

%

Common Equity Tier 1 (3)

9.2

10.3

10.2

Tier 1 Leverage ratio (3)

7.3

8.8

9.5

Tier 1 Capital (3)

9.4

10.6

10.5

Total Capital (3)

12.8

12.6

13.4

Capital Ratios:

Jun 30, 2021 Mar 31, 2021 Jun 30, 2020

Tangible common equity (1) 7.1 % 7.9 % 8.9 %

Common Equity Tier 1 (3) 9.2 10.3 10.2

Tier 1 Leverage ratio (3) 7.3 8.8 9.5

Tier 1 Capital (3) 9.4 10.6 10.5

Total Capital (3) 12.8 12.6 13.4

(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, 2021 are preliminary.

NM

Changes +/- 100% are not meaningful.

(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, 2021 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,

2021

2020

2021

2020

(dollars in millions, except per share data)

Interest income:

Loans

$

353.8

$

289.6

$

652.2

$

566.5

Investment securities

43.5

28.2

77.5

55.6

Other

1.2

0.4

2.9

3.3

Total interest income

398.5

318.2

732.6

625.4

Interest expense:

Deposits

11.6

15.0

22.4

47.5

Qualifying debt

7.2

4.7

13.1

10.0

Borrowings

9.2

0.1

9.3

0.5

Total interest expense

28.0

19.8

44.8

58.0

Net interest income

370.5

298.4

687.8

567.4

(Recovery of) provision for credit losses

(14.5

)

92.0

(46.9

)

143.2

Net interest income after provision for credit losses

385.0

206.4

734.7

424.2

Non-interest income:

Net gain on loan origination and sale activities

132.0

-

132.0

-

Service charges and fees

7.4

5.1

14.1

11.5

Income from equity investments

6.8

1.3

14.4

5.1

Foreign currency income

1.5

1.2

3.7

2.5

Income from bank owned life insurance

0.9

6.7

1.9

7.7

Commercial banking related income

4.5

2.4

7.9

6.2

Fair value gain (loss) adjustments on assets measured at fair value, net

3.2

4.4

1.7

(6.9

)

Net loan servicing revenue

(20.8

)

-

(20.8

)

-

Other

0.5

0.2

0.8

0.3

Total non-interest income

136.0

21.3

155.7

26.4

Non-interest expenses:

Salaries and employee benefits

128.9

69.6

212.6

141.7

Loan servicing expenses

22.3

-

22.3

-

Data processing

15.0

8.6

24.9

17.2

Legal, professional, and directors' fees

14.0

10.7

24.1

21.1

Loan acquisition and origination expenses

10.5

-

10.5

-

Occupancy

10.4

8.1

19.0

16.3

Deposit costs

7.1

3.5

13.4

10.8

Insurance

5.5

3.4

9.7

6.4

Loan and repossessed asset expenses

2.5

2.0

4.7

3.5

Intangible amortization

1.8

0.4

2.3

0.8

Marketing

1.7

0.9

2.3

1.8

Business development

1.5

0.8

2.3

3.1

Card expense

0.6

0.4

1.2

1.1

Net (gain) on sales and valuations of repossessed and other assets

(1.5

)

-

(1.8

)

(1.4

)

Acquisition and restructure expenses

15.7

-

16.1

-

Other

8.8

6.4

16.2

12.9

Total non-interest expense

244.8

114.8

379.8

235.3

Income before income taxes

276.2

112.9

510.6

215.3

Income tax expense

52.4

19.6

94.3

38.1

Net income

$

223.8

$

93.3

$

416.3

$

177.2

Earnings per share:

Diluted shares

103.4

100.0

102.4

100.8

Diluted earnings per share

$

2.17

$

0.93

$

4.07

$

1.76

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

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

2021 2020 2021 2020

(dollars in millions, except per share data)

Interest income:

Loans $ 353.8 $ 289.6 $ 652.2 $ 566.5

Investment securities 43.5 28.2 77.5 55.6

Other 1.2 0.4 2.9 3.3

Total interest income 398.5 318.2 732.6 625.4

Interest expense:

Deposits 11.6 15.0 22.4 47.5

Qualifying debt 7.2 4.7 13.1 10.0

Borrowings 9.2 0.1 9.3 0.5

Total interest expense 28.0 19.8 44.8 58.0

Net interest income 370.5 298.4 687.8 567.4

(Recovery of) provision for (14.5 ) 92.0 (46.9 ) 143.2 credit losses

Net interest income after 385.0 206.4 734.7 424.2 provision for credit losses

Non-interest income:

Net gain on loan origination 132.0 - 132.0 - and sale activities

Service charges and fees 7.4 5.1 14.1 11.5

Income from equity 6.8 1.3 14.4 5.1 investments

Foreign currency income 1.5 1.2 3.7 2.5

Income from bank owned life 0.9 6.7 1.9 7.7 insurance

Commercial banking related 4.5 2.4 7.9 6.2 income

Fair value gain (loss)adjustments on assets 3.2 4.4 1.7 (6.9 )measured at fair value, net

Net loan servicing revenue (20.8 ) - (20.8 ) -

Other 0.5 0.2 0.8 0.3

Total non-interest income 136.0 21.3 155.7 26.4

Non-interest expenses:

Salaries and employee 128.9 69.6 212.6 141.7 benefits

Loan servicing expenses 22.3 - 22.3 -

Data processing 15.0 8.6 24.9 17.2

Legal, professional, and 14.0 10.7 24.1 21.1 directors' fees

Loan acquisition and 10.5 - 10.5 - origination expenses

Occupancy 10.4 8.1 19.0 16.3

Deposit costs 7.1 3.5 13.4 10.8

Insurance 5.5 3.4 9.7 6.4

Loan and repossessed asset 2.5 2.0 4.7 3.5 expenses

Intangible amortization 1.8 0.4 2.3 0.8

Marketing 1.7 0.9 2.3 1.8

Business development 1.5 0.8 2.3 3.1

Card expense 0.6 0.4 1.2 1.1

Net (gain) on sales andvaluations of repossessed and (1.5 ) - (1.8 ) (1.4 )other assets

Acquisition and restructure 15.7 - 16.1 - expenses

Other 8.8 6.4 16.2 12.9

Total non-interest expense 244.8 114.8 379.8 235.3

Income before income taxes 276.2 112.9 510.6 215.3

Income tax expense 52.4 19.6 94.3 38.1

Net income $ 223.8 $ 93.3 $ 416.3 $ 177.2



Earnings per share:

Diluted shares 103.4 100.0 102.4 100.8

Diluted earnings per share $ 2.17 $ 0.93 $ 4.07 $ 1.76

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

Three Months Ended

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

(in millions, except per share data)

Interest income:

Loans

$

353.8

$

298.4

$

301.2

$

276.6

$

289.6

Investment securities

43.5

34.0

29.4

27.4

28.2

Other

1.2

1.7

1.0

0.8

0.4

Total interest income

398.5

334.1

331.6

304.8

318.2

Interest expense:

Deposits

11.6

10.8

10.7

12.2

15.0

Qualifying debt

7.2

5.9

6.0

7.9

4.7

Borrowings

9.2

0.1

0.1

-

0.1

Total interest expense

28.0

16.8

16.8

20.1

19.8

Net interest income

370.5

317.3

314.8

284.7

298.4

(Recovery of) provision for credit losses

(14.5

)

(32.4

)

(34.2

)

14.6

92.0

Net interest income after provision for credit losses

385.0

349.7

349.0

270.1

206.4

Non-interest income:

Net gain on loan origination and sale activities

132.0

-

-

-

-

Service charges and fees

7.4

6.7

5.9

5.9

5.1

Income from equity investments

6.8

7.6

6.4

1.2

1.3

Foreign currency income

1.5

2.2

1.3

1.8

1.2

Income from bank owned life insurance

0.9

1.0

1.2

1.3

6.7

Commercial banking related income

4.5

3.4

4.0

4.5

2.4

Fair value gain (loss) adjustments on assets measured at fair value, net

3.2

(1.5

)

4.8

5.9

4.4

Net loan servicing revenue

(20.8

)

-

-

-

-

Other

0.5

0.3

0.2

-

0.2

Total non-interest income

136.0

19.7

23.8

20.6

21.3

Non-interest expenses:

Salaries and employee benefits

128.9

83.7

83.1

78.8

69.6

Loan servicing expenses

22.3

-

-

-

-

Data processing

15.0

9.9

9.6

8.9

8.6

Legal, professional, and directors' fees

14.0

10.1

11.1

10.0

10.7

Loan acquisition and origination expenses

10.5

-

-

-

-

Occupancy

10.4

8.6

8.4

9.4

8.1

Deposit costs

7.1

6.3

4.5

3.2

3.5

Insurance

5.5

4.2

3.8

3.1

3.4

Loan and repossessed asset expenses

2.5

2.2

1.8

1.8

2.0

Intangible amortization

1.8

0.5

0.4

0.4

0.4

Marketing

1.7

0.6

1.5

0.8

0.9

Business development

1.5

0.8

1.4

1.0

0.8

Card expense

0.6

0.6

0.6

0.5

0.4

Net (gain) loss on sales and valuations of repossessed and other assets

(1.5

)

(0.3

)

(0.2

)

0.1

-

Acquisition and restructure expenses

15.7

0.4

-

-

-

Other

8.8

7.4

6.2

6.1

6.4

Total non-interest expense

244.8

135.0

132.2

124.1

114.8

Income before income taxes

276.2

234.4

240.6

166.6

112.9

Income tax expense

52.4

41.9

47.0

30.8

19.6

Net income

$

223.8

$

192.5

$

193.6

$

135.8

$

93.3

Earnings per share:

Diluted shares

103.4

101.4

100.4

100.1

100.0

Diluted earnings per share

$

2.17

$

1.90

$

1.93

$

1.36

$

0.93

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

Three Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

(in millions, except per share data)

Interest income:

Loans $ 353.8 $ 298.4 $ 301.2 $ 276.6 $ 289.6

Investment 43.5 34.0 29.4 27.4 28.2 securities

Other 1.2 1.7 1.0 0.8 0.4

Total interest 398.5 334.1 331.6 304.8 318.2 income

Interest expense:

Deposits 11.6 10.8 10.7 12.2 15.0

Qualifying debt 7.2 5.9 6.0 7.9 4.7

Borrowings 9.2 0.1 0.1 - 0.1

Total interest 28.0 16.8 16.8 20.1 19.8 expense

Net interest income 370.5 317.3 314.8 284.7 298.4

(Recovery of)provision for (14.5 ) (32.4 ) (34.2 ) 14.6 92.0 credit losses

Net interest incomeafter provision for 385.0 349.7 349.0 270.1 206.4 credit losses

Non-interest income:

Net gain on loanorigination and 132.0 - - - - sale activities

Service charges and 7.4 6.7 5.9 5.9 5.1 fees

Income from equity 6.8 7.6 6.4 1.2 1.3 investments

Foreign currency 1.5 2.2 1.3 1.8 1.2 income

Income from bankowned life 0.9 1.0 1.2 1.3 6.7 insurance

Commercial banking 4.5 3.4 4.0 4.5 2.4 related income

Fair value gain(loss) adjustments 3.2 (1.5 ) 4.8 5.9 4.4 on assets measuredat fair value, net

Net loan servicing (20.8 ) - - - - revenue

Other 0.5 0.3 0.2 - 0.2

Total non-interest 136.0 19.7 23.8 20.6 21.3 income

Non-interest expenses:

Salaries and 128.9 83.7 83.1 78.8 69.6 employee benefits

Loan servicing 22.3 - - - - expenses

Data processing 15.0 9.9 9.6 8.9 8.6

Legal,professional, and 14.0 10.1 11.1 10.0 10.7 directors' fees

Loan acquisitionand origination 10.5 - - - - expenses

Occupancy 10.4 8.6 8.4 9.4 8.1

Deposit costs 7.1 6.3 4.5 3.2 3.5

Insurance 5.5 4.2 3.8 3.1 3.4

Loan andrepossessed asset 2.5 2.2 1.8 1.8 2.0 expenses

Intangible 1.8 0.5 0.4 0.4 0.4 amortization

Marketing 1.7 0.6 1.5 0.8 0.9

Business 1.5 0.8 1.4 1.0 0.8 development

Card expense 0.6 0.6 0.6 0.5 0.4

Net (gain) loss onsales andvaluations of (1.5 ) (0.3 ) (0.2 ) 0.1 - repossessed andother assets

Acquisition andrestructure 15.7 0.4 - - - expenses

Other 8.8 7.4 6.2 6.1 6.4

Total non-interest 244.8 135.0 132.2 124.1 114.8 expense

Income before 276.2 234.4 240.6 166.6 112.9 income taxes

Income tax expense 52.4 41.9 47.0 30.8 19.6

Net income $ 223.8 $ 192.5 $ 193.6 $ 135.8 $ 93.3



Earnings per share:

Diluted shares 103.4 101.4 100.4 100.1 100.0

Diluted earnings $ 2.17 $ 1.90 $ 1.93 $ 1.36 $ 0.93 per share

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

(in millions)

Assets:

Cash and due from banks

$

3,395.8

$

5,346.5

$

2,671.7

$

1,418.7

$

1,518.5

Investment securities

7,845.0

7,888.8

5,504.8

4,701.1

4,193.8

Loans held for sale

4,465.2

-

-

20.8

20.2

Loans held for investment:

Commercial and industrial

14,284.5

15,070.7

14,324.4

13,648.6

12,756.8

Commercial real estate - non-owner occupied

5,695.6

5,681.4

5,654.7

5,407.4

5,344.3

Commercial real estate - owner occupied

2,028.1

2,052.0

2,156.8

2,213.5

2,257.1

Construction and land development

2,856.9

2,767.9

2,431.3

2,300.5

2,197.5

Residential real estate

5,120.7

3,109.1

2,434.6

2,387.1

2,404.8

Consumer

40.6

29.9

51.2

36.1

48.7

Gross loans, net of deferred fees

30,026.4

28,711.0

27,053.0

25,993.2

25,009.2

Allowance for loan losses

(232.9

)

(247.1

)

(278.9

)

(310.5

)

(310.5

)

Loans, net

29,793.5

28,463.9

26,774.1

25,682.7

24,698.7

Mortgage servicing rights

726.2

-

-

-

-

Premises and equipment, net

150.2

138.4

134.1

128.3

127.8

Operating lease right-of-use asset

94.9

77.0

72.5

71.4

70.3

Other assets acquired through foreclosure, net

3.9

4.2

1.4

8.6

9.4

Bank owned life insurance

178.2

177.3

176.3

175.5

174.9

Goodwill and other intangibles, net

610.7

298.0

298.5

299.0

296.9

Other assets

1,805.4

1,002.9

827.6

829.4

795.9

Total assets

$

49,069.0

$

43,397.0

$

36,461.0

$

33,335.5

$

31,906.4

Liabilities and Stockholders' Equity:

Liabilities:

Deposits

Non-interest bearing demand deposits

$

20,105.6

$

17,542.8

$

13,463.3

$

13,013.0

$

12,236.0

Interest bearing:

Demand

4,187.7

3,893.4

4,396.4

3,554.6

3,508.1

Savings and money market

15,810.3

15,276.0

12,413.4

10,574.9

9,823.2

Certificates of deposit

1,817.4

1,680.9

1,657.4

1,700.9

1,977.3

Total deposits

41,921.0

38,393.1

31,930.5

28,843.4

27,544.6

Customer repurchase agreements

20.2

15.9

16.0

19.7

25.4

Total customer funds

41,941.2

38,409.0

31,946.5

28,863.1

27,570.0

Borrowings

595.2

5.0

5.0

10.0

10.0

Qualifying debt

1,140.0

543.7

548.7

618.8

617.7

Operating lease liability

102.4

84.6

79.9

78.6

76.9

Accrued interest payable and other liabilities

1,255.7

642.0

467.4

541.0

529.4

Total liabilities

45,034.5

39,684.3

33,047.5

30,111.5

28,804.0

Stockholders' Equity:

Common stock and additional paid-in capital

1,603.4

1,524.2

1,319.8

1,312.4

1,306.3

Retained earnings

2,366.6

2,168.6

2,001.4

1,833.0

1,722.4

Accumulated other comprehensive income

64.5

19.9

92.3

78.6

73.7

Total stockholders' equity

4,034.5

3,712.7

3,413.5

3,224.0

3,102.4

Total liabilities and stockholders' equity

$

49,069.0

$

43,397.0

$

36,461.0

$

33,335.5

$

31,906.4

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020

(in millions)

Assets:

Cash and due $ 3,395.8 $ 5,346.5 $ 2,671.7 $ 1,418.7 $ 1,518.5 from banks

Investment 7,845.0 7,888.8 5,504.8 4,701.1 4,193.8 securities

Loans held 4,465.2 - - 20.8 20.2 for sale

Loans heldfor investment:

Commercialand 14,284.5 15,070.7 14,324.4 13,648.6 12,756.8 industrial

Commercialreal estate - 5,695.6 5,681.4 5,654.7 5,407.4 5,344.3 non-owneroccupied

Commercialreal estate - 2,028.1 2,052.0 2,156.8 2,213.5 2,257.1 owneroccupied

Constructionand land 2,856.9 2,767.9 2,431.3 2,300.5 2,197.5 development

Residential 5,120.7 3,109.1 2,434.6 2,387.1 2,404.8 real estate

Consumer 40.6 29.9 51.2 36.1 48.7

Gross loans,net of 30,026.4 28,711.0 27,053.0 25,993.2 25,009.2 deferred fees

Allowance for (232.9 ) (247.1 ) (278.9 ) (310.5 ) (310.5 )loan losses

Loans, net 29,793.5 28,463.9 26,774.1 25,682.7 24,698.7

Mortgageservicing 726.2 - - - - rights

Premises andequipment, 150.2 138.4 134.1 128.3 127.8 net

Operatinglease 94.9 77.0 72.5 71.4 70.3 right-of-useasset

Other assetsacquiredthrough 3.9 4.2 1.4 8.6 9.4 foreclosure,net

Bank ownedlife 178.2 177.3 176.3 175.5 174.9 insurance

Goodwill andother 610.7 298.0 298.5 299.0 296.9 intangibles,net

Other assets 1,805.4 1,002.9 827.6 829.4 795.9

Total assets $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5 $ 31,906.4

Liabilitiesand Stockholders'Equity:

Liabilities:

Deposits

Non-interestbearing $ 20,105.6 $ 17,542.8 $ 13,463.3 $ 13,013.0 $ 12,236.0 demanddeposits

Interest bearing:

Demand 4,187.7 3,893.4 4,396.4 3,554.6 3,508.1

Savings and 15,810.3 15,276.0 12,413.4 10,574.9 9,823.2 money market

Certificates 1,817.4 1,680.9 1,657.4 1,700.9 1,977.3 of deposit

Total 41,921.0 38,393.1 31,930.5 28,843.4 27,544.6 deposits

Customerrepurchase 20.2 15.9 16.0 19.7 25.4 agreements

Totalcustomer 41,941.2 38,409.0 31,946.5 28,863.1 27,570.0 funds

Borrowings 595.2 5.0 5.0 10.0 10.0

Qualifying 1,140.0 543.7 548.7 618.8 617.7 debt

Operatinglease 102.4 84.6 79.9 78.6 76.9 liability

Accruedinterestpayable and 1,255.7 642.0 467.4 541.0 529.4 otherliabilities

Total 45,034.5 39,684.3 33,047.5 30,111.5 28,804.0 liabilities

Stockholders' Equity:

Common stockandadditional 1,603.4 1,524.2 1,319.8 1,312.4 1,306.3 paid-incapital

Retained 2,366.6 2,168.6 2,001.4 1,833.0 1,722.4 earnings

Accumulatedother 64.5 19.9 92.3 78.6 73.7 comprehensiveincome

Totalstockholders' 4,034.5 3,712.7 3,413.5 3,224.0 3,102.4 equity

Totalliabilitiesand $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5 $ 31,906.4 stockholders'equity

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

Three Months Ended

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

(in millions)

Allowance for loan losses

Balance, beginning of period

$

247.1

$

278.9

$

310.5

$

310.5

$

235.3

(Recovery of) provision for credit losses (1)

(14.1

)

(30.4

)

(27.7

)

8.2

80.7

Recoveries of loans previously charged-off:

Commercial and industrial

0.4

0.5

1.5

0.2

0.6

Commercial real estate - non-owner occupied

1.7

0.2

0.1

-

(0.4

)

Commercial real estate - owner occupied

-

-

0.1

-

-

Construction and land development

-

-

-

-

-

Residential real estate

0.1

-

0.1

0.4

-

Consumer

-

-

-

-

-

Total recoveries

2.2

0.7

1.8

0.6

0.2

Loans charged-off:

Commercial and industrial

2.3

0.1

5.6

7.1

4.8

Commercial real estate - non-owner occupied

-

2.0

-

1.3

0.9

Commercial real estate - owner occupied

-

-

0.1

0.1

-

Construction and land development

-

-

-

-

-

Residential real estate

-

-

-

0.3

-

Consumer

-

-

-

-

-

Total loans charged-off

2.3

2.1

5.7

8.8

5.7

Net loan charge-offs

0.1

1.4

3.9

8.2

5.5

Balance, end of period

$

232.9

$

247.1

$

278.9

$

310.5

$

310.5

Allowance for unfunded loan commitments

Balance, beginning of period

$

32.6

$

37.0

$

44.4

$

36.3

$

29.7

(Recovery of) provision for credit losses (1)

(1.3

)

(4.4

)

(7.4

)

8.1

6.6

Balance, end of period (2)

$

31.3

$

32.6

$

37.0

$

44.4

$

36.3

Components of the allowance for credit losses on loans

Allowance for loan losses

$

232.9

$

247.1

$

278.9

$

310.5

$

310.5

Allowance for unfunded loan commitments

31.3

32.6

37.0

44.4

36.3

Total allowance for credit losses on loans

$

264.2

$

279.7

$

315.9

$

354.9

$

346.8

Net charge-offs to average loans - annualized

0.00

%

0.02

%

0.06

%

0.13

%

0.09

%

Allowance for loan losses to funded HFI loans

0.78

%

0.86

%

1.03

%

1.19

%

1.24

%

Allowance for credit losses to funded HFI loans

0.88

0.97

1.17

1.37

1.39

Allowance for loan losses to nonaccrual HFI loans

242

218

242

212

222

Allowance for credit losses to nonaccrual HFI loans

274

246

274

242

248

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

Three Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

(in millions)

Allowance for loan losses

Balance, beginning $ 247.1 $ 278.9 $ 310.5 $ 310.5 $ 235.3 of period

(Recovery of)provision for (14.1 ) (30.4 ) (27.7 ) 8.2 80.7 credit losses (1)

Recoveries of loanspreviously charged-off:

Commercial and 0.4 0.5 1.5 0.2 0.6 industrial

Commercial realestate - non-owner 1.7 0.2 0.1 - (0.4 )occupied

Commercial realestate - owner - - 0.1 - - occupied

Construction and - - - - - land development

Residential real 0.1 - 0.1 0.4 - estate

Consumer - - - - -

Total recoveries 2.2 0.7 1.8 0.6 0.2

Loans charged-off:

Commercial and 2.3 0.1 5.6 7.1 4.8 industrial

Commercial realestate - non-owner - 2.0 - 1.3 0.9 occupied

Commercial realestate - owner - - 0.1 0.1 - occupied

Construction and - - - - - land development

Residential real - - - 0.3 - estate

Consumer - - - - -

Total loans 2.3 2.1 5.7 8.8 5.7 charged-off

Net loan 0.1 1.4 3.9 8.2 5.5 charge-offs

Balance, end of $ 232.9 $ 247.1 $ 278.9 $ 310.5 $ 310.5 period



Allowance forunfunded loan commitments

Balance, beginning $ 32.6 $ 37.0 $ 44.4 $ 36.3 $ 29.7 of period

(Recovery of)provision for (1.3 ) (4.4 ) (7.4 ) 8.1 6.6 credit losses (1)

Balance, end of $ 31.3 $ 32.6 $ 37.0 $ 44.4 $ 36.3 period (2)



Components of theallowance for credit losses onloans

Allowance for loan $ 232.9 $ 247.1 $ 278.9 $ 310.5 $ 310.5 losses

Allowance forunfunded loan 31.3 32.6 37.0 44.4 36.3 commitments

Total allowance forcredit losses on $ 264.2 $ 279.7 $ 315.9 $ 354.9 $ 346.8 loans



Net charge-offs toaverage loans - 0.00 % 0.02 % 0.06 % 0.13 % 0.09 %annualized



Allowance for loanlosses to funded 0.78 % 0.86 % 1.03 % 1.19 % 1.24 %HFI loans

Allowance forcredit losses to 0.88 0.97 1.17 1.37 1.39 funded HFI loans

Allowance for loanlosses to 242 218 242 212 222 nonaccrual HFIloans

Allowance forcredit losses to 274 246 274 242 248 nonaccrual HFIloans

(1)

The above tables reflect the provision for credit losses on funded and unfunded loans. Recovery of credit losses on investment securities totaled $(3.2) million, resulting in an ending allowance for credit losses on investment securities of $6.0 million. Provision for credit losses on AmeriHome servicing advances totaled $4.0 million, resulting in an ending allowance for credit losses on servicing advances of $4.0 million.

(2)

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

The above tables reflect the provision for credit losses on funded and unfunded loans. Recovery of credit losses on investment securities totaled(1) $(3.2) million, resulting in an ending allowance for credit losses on investment securities of $6.0 million. Provision for credit losses on AmeriHome servicing advances totaled $4.0 million, resulting in an ending allowance for credit losses on servicing advances of $4.0 million.

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

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

Jun 30, 2020

(in millions)

Nonaccrual loans

$

96.3

$

113.6

$

115.2

$

146.5

$

139.7

Nonaccrual loans to funded HFI loans

0.32

%

0.40

%

0.43

%

0.56

%

0.56

%

Repossessed assets

$

3.9

$

4.2

$

1.4

$

8.6

$

9.4

Nonaccrual loans and repossessed assets to total assets

0.20

%

0.27

%

0.32

%

0.47

%

0.47

%

Loans past due 90 days, still accruing

$

-

$

-

$

-

$

28.1

$

-

Loans past due 90 days and still accruing to funded HFI loans

-

%

-

%

-

%

0.11

%

-

%

Loans past due 30 to 89 days, still accruing

$

9.8

$

7.3

$

11.2

$

24.3

$

9.3

Loans past due 30 to 89 days, still accruing to funded HFI loans

0.03

%

0.03

%

0.04

%

0.09

%

0.04

%

Special mention loans

$

404.8

$

474.2

$

451.1

$

476.8

$

395.5

Special mention loans to funded HFI loans

1.35

%

1.65

%

1.67

%

1.83

%

1.58

%

Classified loans on accrual

$

138.2

$

163.1

$

107.0

$

170.5

$

149.3

Classified loans on accrual to funded HFI loans

0.46

%

0.57

%

0.40

%

0.66

%

0.60

%

Classified assets

$

238.5

$

280.9

$

223.7

$

325.7

$

298.5

Classified assets to total assets

0.49

%

0.65

%

0.61

%

0.98

%

0.94

%

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, 2021 2021 2020 2020 2020

(in millions)

Nonaccrual loans $ 96.3 $ 113.6 $ 115.2 $ 146.5 $ 139.7

Nonaccrual loans to 0.32 % 0.40 % 0.43 % 0.56 % 0.56 %funded HFI loans

Repossessed assets $ 3.9 $ 4.2 $ 1.4 $ 8.6 $ 9.4

Nonaccrual loansand repossessed 0.20 % 0.27 % 0.32 % 0.47 % 0.47 %assets to totalassets



Loans past due 90days, still $ - $ - $ - $ 28.1 $ - accruing

Loans past due 90days and still - % - % - % 0.11 % - %accruing to fundedHFI loans

Loans past due 30to 89 days, still $ 9.8 $ 7.3 $ 11.2 $ 24.3 $ 9.3 accruing

Loans past due 30to 89 days, still 0.03 % 0.03 % 0.04 % 0.09 % 0.04 %accruing to fundedHFI loans



Special mention $ 404.8 $ 474.2 $ 451.1 $ 476.8 $ 395.5 loans

Special mentionloans to funded HFI 1.35 % 1.65 % 1.67 % 1.83 % 1.58 %loans



Classified loans on $ 138.2 $ 163.1 $ 107.0 $ 170.5 $ 149.3 accrual

Classified loans onaccrual to funded 0.46 % 0.57 % 0.40 % 0.66 % 0.60 %HFI loans

Classified assets $ 238.5 $ 280.9 $ 223.7 $ 325.7 $ 298.5

Classified assets 0.49 % 0.65 % 0.61 % 0.98 % 0.94 %to total assets

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

June 30, 2021

March 31, 2021

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

($ in millions)

($ in millions)

Interest earning assets

Loans held for sale

$

5,347.3

$

42.7

3.21

%

$

-

$

-

-

%

Loans held for investment:

Commercial and industrial

13,897.5

148.2

4.37

13,951.6

151.0

4.48

CRE - non-owner occupied

5,698.0

67.8

4.78

5,649.7

65.1

4.68

CRE - owner occupied

2,024.9

24.1

4.88

2,094.2

24.4

4.83

Construction and land development

2,791.7

39.9

5.73

2,484.8

35.6

5.81

Residential real estate

3,748.0

30.7

3.29

2,507.7

21.9

3.55

Consumer

34.1

0.4

4.52

34.5

0.4

5.39

Total HFI loans (1), (2), (3)

28,194.2

311.1

4.48

26,722.5

298.4

4.59

Securities:

Securities - taxable

5,629.7

26.0

1.85

4,531.4

18.5

1.66

Securities - tax-exempt

2,165.8

17.5

4.07

1,980.9

15.5

3.99

Total securities (1)

7,795.5

43.5

2.47

6,512.3

34.0

2.37

Cash and other

1,911.3

1.2

0.25

5,864.0

1.7

0.12

Total interest earning assets

43,248.3

398.5

3.77

39,098.8

334.1

3.55

Non-interest earning assets

Cash and due from banks

457.7

166.1

Allowance for credit losses

(257.3

)

(289.1

)

Bank owned life insurance

177.6

176.6

Other assets

4,518.4

1,271.2

Total assets

$

48,144.7

$

40,423.6

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing transaction accounts

$

4,370.1

$

1.5

0.14

%

$

3,905.4

$

1.3

0.13

%

Savings and money market

15,168.1

8.0

0.21

13,994.4

7.1

0.21

Certificates of deposit

1,736.3

2.1

0.49

1,681.1

2.4

0.59

Total interest-bearing deposits

21,274.5

11.6

0.22

19,580.9

10.8

0.22

Short-term borrowings

1,505.7

4.5

1.21

24.8

0.1

1.13

Long-term debt

353.1

4.7

5.30

-

-

-

Qualifying debt

701.2

7.2

4.12

547.2

5.9

4.39

Total interest-bearing liabilities

23,834.5

28.0

0.47

20,152.9

16.8

0.34

Interest cost of funding earning assets

0.26

0.18

Non-interest-bearing liabilities

Non-interest-bearing demand deposits

18,384.8

15,972.6

Other liabilities

2,140.4

772.3

Stockholders' equity

3,785.0

3,525.8

Total liabilities and stockholders' equity

$

48,144.7

$

40,423.6

Net interest income and margin (4)

$

370.5

3.51

%

$

317.3

3.37

%

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

June 30, 2021 March 31, 2021

Average Average Average Average Interest Yield / Interest Yield / Balance Balance Cost Cost

($ in millions) ($ in millions)

Interest earning assets

Loans held for sale $ 5,347.3 $ 42.7 3.21 % $ - $ - - %

Loans held for investment:

Commercial and 13,897.5 148.2 4.37 13,951.6 151.0 4.48 industrial

CRE - non-owner 5,698.0 67.8 4.78 5,649.7 65.1 4.68 occupied

CRE - owner occupied 2,024.9 24.1 4.88 2,094.2 24.4 4.83

Construction and 2,791.7 39.9 5.73 2,484.8 35.6 5.81 land development

Residential real 3,748.0 30.7 3.29 2,507.7 21.9 3.55 estate

Consumer 34.1 0.4 4.52 34.5 0.4 5.39

Total HFI loans (1), 28,194.2 311.1 4.48 26,722.5 298.4 4.59 (2), (3)

Securities:

Securities - taxable 5,629.7 26.0 1.85 4,531.4 18.5 1.66

Securities - 2,165.8 17.5 4.07 1,980.9 15.5 3.99 tax-exempt

Total securities (1) 7,795.5 43.5 2.47 6,512.3 34.0 2.37

Cash and other 1,911.3 1.2 0.25 5,864.0 1.7 0.12

Total interest 43,248.3 398.5 3.77 39,098.8 334.1 3.55 earning assets

Non-interest earning assets

Cash and due from 457.7 166.1 banks

Allowance for credit (257.3 ) (289.1 ) losses

Bank owned life 177.6 176.6 insurance

Other assets 4,518.4 1,271.2

Total assets $ 48,144.7 $ 40,423.6

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 4,370.1 $ 1.5 0.14 % $ 3,905.4 $ 1.3 0.13 %transaction accounts

Savings and money 15,168.1 8.0 0.21 13,994.4 7.1 0.21 market

Certificates of 1,736.3 2.1 0.49 1,681.1 2.4 0.59 deposit

Totalinterest-bearing 21,274.5 11.6 0.22 19,580.9 10.8 0.22 deposits

Short-term 1,505.7 4.5 1.21 24.8 0.1 1.13 borrowings

Long-term debt 353.1 4.7 5.30 - - -

Qualifying debt 701.2 7.2 4.12 547.2 5.9 4.39

Totalinterest-bearing 23,834.5 28.0 0.47 20,152.9 16.8 0.34 liabilities

Interest cost of funding earning 0.26 0.18 assets

Non-interest-bearing liabilities

Non-interest-bearing 18,384.8 15,972.6 demand deposits

Other liabilities 2,140.4 772.3

Stockholders' equity 3,785.0 3,525.8

Total liabilitiesand stockholders' $ 48,144.7 $ 40,423.6 equity

Net interest income $ 370.5 3.51 % $ 317.3 3.37 %and margin (4)

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.5 million and $8.0 million for the three months ended June 30, 2021 and March 31, 2021, respectively.

(2)

Included in the yield computation are net loan fees of $32.6 million and $32.9 million for the three months ended June 30, 2021 and March 31, 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.

Yields on loans and securities have been adjusted to a tax equivalent(1) basis. The tax equivalent adjustment was $8.5 million and $8.0 million for the three months ended June 30, 2021 and March 31, 2021, respectively.

Included in the yield computation are net loan fees of $32.6 million and(2) $32.9 million for the three months ended June 30, 2021 and March 31, 2021, respectively.

(3) Includes non-accrual loans.

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

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

June 30, 2021

June 30, 2020

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

($ in millions)

($ in millions)

Interest earning assets

Loans held for sale

$

5,347.3

$

42.7

3.21

%

$

21.7

$

-

-

%

Loans held for investment:

Commercial and industrial

13,897.5

148.2

4.37

12,318.3

141.9

4.73

CRE - non-owner-occupied

5,698.0

67.8

4.78

5,345.0

65.6

4.95

CRE - owner-occupied

2,024.9

24.1

4.88

2,273.7

27.5

4.97

Construction and land development

2,791.7

39.9

5.73

2,128.5

30.9

5.86

Residential real estate

3,748.0

30.7

3.29

2,329.4

23.0

3.97

Consumer

34.1

0.4

4.52

53.7

0.7

5.21

Total HFI loans (1), (2), (3)

28,194.2

311.1

4.48

24,448.6

289.6

4.82

Securities:

Securities - taxable

5,629.7

26.0

1.85

2,781.3

16.2

2.35

Securities - tax-exempt

2,165.8

17.5

4.07

1,403.3

12.0

4.34

Total securities (1)

7,795.5

43.5

2.47

4,184.6

28.2

3.02

Other

1,911.3

1.2

0.25

671.4

0.4

0.24

Total interest earning assets

43,248.3

398.5

3.77

29,326.3

318.2

4.46

Non-interest earning assets

Cash and due from banks

457.7

162.0

Allowance for credit losses

(257.3

)

(271.2

)

Bank owned life insurance

177.6

186.6

Other assets

4,518.4

1,221.8

Total assets

$

48,144.7

$

30,625.5

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing transaction accounts

$

4,370.1

$

1.5

0.14

%

$

3,495.4

$

1.6

0.18

%

Savings and money market accounts

15,168.1

8.0

0.21

9,428.4

5.5

0.24

Certificates of deposit

1,736.3

2.1

0.49

2,150.5

7.9

1.47

Total interest-bearing deposits

21,274.5

11.6

0.22

15,074.3

15.0

0.40

Short-term borrowings

1,505.7

4.5

1.21

267.4

0.1

0.18

Long-term debt

353.1

4.7

5.30

-

-

-

Qualifying debt

701.2

7.2

4.12

489.0

4.7

3.88

Total interest-bearing liabilities

23,834.5

28.0

0.47

15,830.7

19.8

0.50

Interest cost of funding earning assets

0.26

0.27

Non-interest-bearing liabilities

Non-interest-bearing demand deposits

18,384.8

11,130.0

Other liabilities

2,140.4

608.7

Stockholders' equity

3,785.0

3,056.1

Total liabilities and stockholders' equity

$

48,144.7

$

30,625.5

Net interest income and margin (4)

$

370.5

3.51

%

$

298.4

4.19

%

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

June 30, 2021 June 30, 2020

Average Average Average Average Interest Yield / Interest Yield / Balance Balance Cost Cost

($ in millions) ($ in millions)

Interest earning assets

Loans held for sale $ 5,347.3 $ 42.7 3.21 % $ 21.7 $ - - %

Loans held for investment:

Commercial and 13,897.5 148.2 4.37 12,318.3 141.9 4.73 industrial

CRE - 5,698.0 67.8 4.78 5,345.0 65.6 4.95 non-owner-occupied

CRE - owner-occupied 2,024.9 24.1 4.88 2,273.7 27.5 4.97

Construction and 2,791.7 39.9 5.73 2,128.5 30.9 5.86 land development

Residential real 3,748.0 30.7 3.29 2,329.4 23.0 3.97 estate

Consumer 34.1 0.4 4.52 53.7 0.7 5.21

Total HFI loans (1), 28,194.2 311.1 4.48 24,448.6 289.6 4.82 (2), (3)

Securities:

Securities - taxable 5,629.7 26.0 1.85 2,781.3 16.2 2.35

Securities - 2,165.8 17.5 4.07 1,403.3 12.0 4.34 tax-exempt

Total securities (1) 7,795.5 43.5 2.47 4,184.6 28.2 3.02

Other 1,911.3 1.2 0.25 671.4 0.4 0.24

Total interest 43,248.3 398.5 3.77 29,326.3 318.2 4.46 earning assets

Non-interest earning assets

Cash and due from 457.7 162.0 banks

Allowance for credit (257.3 ) (271.2 ) losses

Bank owned life 177.6 186.6 insurance

Other assets 4,518.4 1,221.8

Total assets $ 48,144.7 $ 30,625.5

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 4,370.1 $ 1.5 0.14 % $ 3,495.4 $ 1.6 0.18 %transaction accounts

Savings and money 15,168.1 8.0 0.21 9,428.4 5.5 0.24 market accounts

Certificates of 1,736.3 2.1 0.49 2,150.5 7.9 1.47 deposit

Totalinterest-bearing 21,274.5 11.6 0.22 15,074.3 15.0 0.40 deposits

Short-term 1,505.7 4.5 1.21 267.4 0.1 0.18 borrowings

Long-term debt 353.1 4.7 5.30 - - -

Qualifying debt 701.2 7.2 4.12 489.0 4.7 3.88

Totalinterest-bearing 23,834.5 28.0 0.47 15,830.7 19.8 0.50 liabilities

Interest cost of funding earning 0.26 0.27 assets

Non-interest-bearing liabilities

Non-interest-bearing 18,384.8 11,130.0 demand deposits

Other liabilities 2,140.4 608.7

Stockholders' equity 3,785.0 3,056.1

Total liabilitiesand stockholders' $ 48,144.7 $ 30,625.5 equity

Net interest income $ 370.5 3.51 % $ 298.4 4.19 %and margin (4)

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $8.5 million and $7.0 million for the three months ended June 30, 2021 and 2020, respectively.

(2)

Included in the yield computation are net loan fees of $32.6 million and $27.8 million for the three months ended June 30, 2021 and 2020, respectively.

(3)

Includes non-accrual loans.

(4)

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

Yields on loans and securities have been adjusted to a tax equivalent(1) basis. The tax equivalent adjustment was $8.5 million and $7.0 million for the three months ended June 30, 2021 and 2020, respectively.

Included in the yield computation are net loan fees of $32.6 million and(2) $27.8 million for the three months ended June 30, 2021 and 2020, respectively.

(3) Includes non-accrual loans.

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

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Six Months Ended

June 30, 2021

June 30, 2020

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

($ in millions)

($ in millions)

Interest earning assets

Loans held for sale

$

2,688.4

$

42.7

3.21

%

$

21.8

$

0.3

2.99

%

Loans held for investment:

Commercial and industrial

13,924.4

299.1

4.43

10,984.7

266.5

4.99

CRE - non-owner occupied

5,674.0

132.9

4.73

5,291.5

134.5

5.12

CRE - owner occupied

2,059.4

48.5

4.86

2,277.5

56.7

5.11

Construction and land development

2,639.1

75.5

5.77

2,067.2

63.2

6.17

Residential real estate

3,131.3

52.7

3.39

2,243.8

43.8

3.92

Consumer

34.3

0.8

4.96

54.5

1.5

5.35

Total HFI loans (1), (2), (3)

27,462.5

609.5

4.53

22,919.2

566.2

5.04

Securities:

Securities - taxable

5,083.6

44.5

1.77

2,833.3

33.5

2.38

Securities - tax-exempt

2,073.8

33.0

4.03

1,285.8

22.1

4.36

Total securities (1)

7,157.4

77.5

2.42

4,119.1

55.6

3.00

Other

3,876.7

2.9

0.15

736.7

3.3

0.92

Total interest earning assets

41,185.0

732.6

3.67

27,796.8

625.4

4.62

Non-interest earning assets

Cash and due from banks

312.7

179.0

Allowance for credit losses

(273.1

)

(231.9

)

Bank owned life insurance

177.1

180.5

Other assets

2,903.8

1,190.3

Total assets

$

44,305.5

$

29,114.7

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing transaction accounts

$

4,139.0

$

2.8

0.14

%

$

3,296.9

$

6.1

0.37

%

Savings and money market accounts

14,584.5

15.1

0.21

9,230.9

23.2

0.51

Certificates of deposit

1,708.9

4.5

0.54

2,248.3

18.2

1.63

Total interest-bearing deposits

20,432.4

22.4

0.22

14,776.1

47.5

0.65

Short-term borrowings

769.3

4.6

1.21

207.8

0.5

0.53

Long-term debt

177.5

4.7

5.30

-

-

-

Qualifying debt

624.6

13.1

4.24

442.0

10.0

4.53

Total interest-bearing liabilities

22,003.8

44.8

0.41

15,425.9

58.0

0.76

Interest cost of funding earning assets

0.22

0.42

Non-interest-bearing liabilities

Non-interest-bearing demand deposits

17,185.4

9,999.9

Other liabilities

1,460.2

625.9

Stockholders' equity

3,656.1

3,063.0

Total liabilities and stockholders' equity

$

44,305.5

$

29,114.7

Net interest income and margin (4)

$

687.8

3.45

%

$

567.4

4.20

%

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Six Months Ended

June 30, 2021 June 30, 2020

Average Average Average Average Interest Yield / Interest Yield / Balance Balance Cost Cost

($ in millions) ($ in millions)

Interest earning assets

Loans held for sale $ 2,688.4 $ 42.7 3.21 % $ 21.8 $ 0.3 2.99 %

Loans held for investment:

Commercial and 13,924.4 299.1 4.43 10,984.7 266.5 4.99 industrial

CRE - non-owner 5,674.0 132.9 4.73 5,291.5 134.5 5.12 occupied

CRE - owner occupied 2,059.4 48.5 4.86 2,277.5 56.7 5.11

Construction and 2,639.1 75.5 5.77 2,067.2 63.2 6.17 land development

Residential real 3,131.3 52.7 3.39 2,243.8 43.8 3.92 estate

Consumer 34.3 0.8 4.96 54.5 1.5 5.35

Total HFI loans (1), 27,462.5 609.5 4.53 22,919.2 566.2 5.04 (2), (3)

Securities:

Securities - taxable 5,083.6 44.5 1.77 2,833.3 33.5 2.38

Securities - 2,073.8 33.0 4.03 1,285.8 22.1 4.36 tax-exempt

Total securities (1) 7,157.4 77.5 2.42 4,119.1 55.6 3.00

Other 3,876.7 2.9 0.15 736.7 3.3 0.92

Total interest 41,185.0 732.6 3.67 27,796.8 625.4 4.62 earning assets

Non-interest earning assets

Cash and due from 312.7 179.0 banks

Allowance for credit (273.1 ) (231.9 ) losses

Bank owned life 177.1 180.5 insurance

Other assets 2,903.8 1,190.3

Total assets $ 44,305.5 $ 29,114.7

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 4,139.0 $ 2.8 0.14 % $ 3,296.9 $ 6.1 0.37 %transaction accounts

Savings and money 14,584.5 15.1 0.21 9,230.9 23.2 0.51 market accounts

Certificates of 1,708.9 4.5 0.54 2,248.3 18.2 1.63 deposit

Totalinterest-bearing 20,432.4 22.4 0.22 14,776.1 47.5 0.65 deposits

Short-term 769.3 4.6 1.21 207.8 0.5 0.53 borrowings

Long-term debt 177.5 4.7 5.30 - - -

Qualifying debt 624.6 13.1 4.24 442.0 10.0 4.53

Totalinterest-bearing 22,003.8 44.8 0.41 15,425.9 58.0 0.76 liabilities

Interest cost of funding earning 0.22 0.42 assets

Non-interest-bearing liabilities

Non-interest-bearing 17,185.4 9,999.9 demand deposits

Other liabilities 1,460.2 625.9

Stockholders' equity 3,656.1 3,063.0

Total liabilitiesand stockholders' $ 44,305.5 $ 29,114.7 equity

Net interest income $ 687.8 3.45 % $ 567.4 4.20 %and margin (4)

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $16.5 million and $13.4 million for the six months ended June 30, 2021 and 2020, respectively.

(2)

Included in the yield computation are net loan fees of $65.5 million and $43.3 million for the six months ended June 30, 2021 and 2020, respectively.

(3)

Includes non-accrual loans.

(4)

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

Yields on loans and securities have been adjusted to a tax equivalent(1) basis. The tax equivalent adjustment was $16.5 million and $13.4 million for the six months ended June 30, 2021 and 2020, respectively.

Included in the yield computation are net loan fees of $65.5 million and(2) $43.3 million for the six months ended June 30, 2021 and 2020, respectively.

(3) Includes non-accrual loans.

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

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited

Balance Sheet:

Consolidated Company

Commercial

Consumer Related

Corporate & Other

At June 30, 2021:

(dollars in millions)

Assets:

Cash, cash equivalents, and investment securities

$

11,240.8

$

13.4

$

79.5

$

11,147.9

Loans held for sale

4,465.2

-

4,465.2

-

Loans, net of deferred loan fees and costs

30,026.4

20,642.9

9,387.0

(3.5

)

Less: allowance for credit losses

(232.9

)

(212.1

)

(20.8

)

-

Total loans

29,793.5

20,430.8

9,366.2

(3.5

)

Other assets acquired through foreclosure, net

3.9

3.9

-

-

Goodwill and other intangible assets, net

610.7

295.4

315.3

-

Other assets

2,954.9

254.3

1,165.4

1,535.2

Total assets

$

49,069.0

$

20,997.8

$

15,391.6

$

12,679.6

Liabilities:

Deposits

$

41,921.0

$

26,262.3

$

14,841.8

$

816.9

Borrowings and qualifying debt

1,735.2

-

355.8

1,379.4

Other liabilities

1,378.3

302.9

143.9

931.5

Total liabilities

45,034.5

26,565.2

15,341.5

3,127.8

Allocated equity:

4,034.5

2,178.7

1,348.7

507.1

Total liabilities and stockholders' equity

$

49,069.0

$

28,743.9

$

16,690.2

$

3,634.9

Excess funds provided (used)

-

7,746.1

1,298.6

(9,044.7

)

No. of offices

53

45

7

1

No. of full-time equivalent employees

3,075

575

1,209

1,291

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 after provision for credit losses

385.0

299.3

132.3

(46.6

)

Non-interest income

136.0

13.9

116.9

5.2

Non-interest expense

244.8

104.1

135.6

5.1

Income (loss) before income taxes

276.2

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 losses

734.7

599.3

238.6

(103.2

)

Non-interest income

155.7

33.1

117.4

5.2

Non-interest expense

379.8

202.4

170.9

6.5

Income (loss) before income taxes

510.6

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

)

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited



Balance Sheet:

Consolidated Commercial Consumer Corporate & Company Related Other

At June 30, 2021: (dollars in millions)

Assets:

Cash, cashequivalents, and $ 11,240.8 $ 13.4 $ 79.5 $ 11,147.9 investmentsecurities

Loans held for sale 4,465.2 - 4,465.2 -

Loans, net ofdeferred loan fees 30,026.4 20,642.9 9,387.0 (3.5 )and costs

Less: allowance for (232.9 ) (212.1 ) (20.8 ) - credit losses

Total loans 29,793.5 20,430.8 9,366.2 (3.5 )

Other assetsacquired through 3.9 3.9 - - foreclosure, net

Goodwill and otherintangible assets, 610.7 295.4 315.3 - net

Other assets 2,954.9 254.3 1,165.4 1,535.2

Total assets $ 49,069.0 $ 20,997.8 $ 15,391.6 $ 12,679.6

Liabilities:

Deposits $ 41,921.0 $ 26,262.3 $ 14,841.8 $ 816.9

Borrowings and 1,735.2 - 355.8 1,379.4 qualifying debt

Other liabilities 1,378.3 302.9 143.9 931.5

Total liabilities 45,034.5 26,565.2 15,341.5 3,127.8

Allocated equity: 4,034.5 2,178.7 1,348.7 507.1

Total liabilitiesand stockholders' $ 49,069.0 $ 28,743.9 $ 16,690.2 $ 3,634.9 equity

Excess funds - 7,746.1 1,298.6 (9,044.7 )provided (used)



No. of offices 53 45 7 1

No. of full-timeequivalent 3,075 575 1,209 1,291 employees



Income Statement:



Three Months Ended (in millions)June 30, 2021:

Net interest income $ 370.5 $ 280.7 $ 139.5 $ (49.7 )

(Recovery of)provision for (14.5 ) (18.6 ) 7.2 (3.1 )credit losses

Net interest incomeafter provision for 385.0 299.3 132.3 (46.6 )credit losses

Non-interest income 136.0 13.9 116.9 5.2

Non-interest 244.8 104.1 135.6 5.1 expense

Income (loss) 276.2 209.1 113.6 (46.5 )before income taxes

Income tax expense 52.4 50.4 27.5 (25.5 )(benefit)

Net income (loss) $ 223.8 $ 158.7 $ 86.1 $ (21.0 )



Six Months Ended (in millions)June 30, 2021:

Net interest income $ 687.8 $ 544.5 $ 247.5 $ (104.2 )

(Recovery of)provision for (46.9 ) (54.8 ) 8.9 (1.0 )credit losses

Net interest income(expense) after 734.7 599.3 238.6 (103.2 )provision forcredit losses

Non-interest income 155.7 33.1 117.4 5.2

Non-interest 379.8 202.4 170.9 6.5 expense

Income (loss) 510.6 430.0 185.1 (104.5 )before income taxes

Income tax expense 94.3 103.2 44.9 (53.8 )(benefit)

Net income (loss) $ 416.3 $ 326.8 $ 140.2 $ (50.7 )

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited

Balance Sheet:

Consolidated Company

Commercial

Consumer Related

Corporate

At December 31, 2020:

(dollars in millions)

Assets:

Cash, cash equivalents, and investment securities

$

8,176.5

$

12.0

$

45.6

$

8,118.9

Loans, net of deferred loan fees and costs

27,053.0

20,245.8

6,798.2

9.0

Less: allowance for loan losses

(278.9

)

(263.4

)

(15.4

)

(0.1

)

Total loans

26,774.1

19,982.4

6,782.8

8.9

Other assets acquired through foreclosure, net

1.4

1.4

-

-

Goodwill and other intangible assets, net

298.5

296.1

2.4

-

Other assets

1,210.5

257.0

96.6

856.9

Total assets

$

36,461.0

$

20,548.9

$

6,927.4

$

8,984.7

Liabilities:

Deposits

$

31,930.5

$

21,448.0

$

9,936.8

$

545.7

Borrowings and qualifying debt

553.7

-

-

553.7

Other liabilities

563.3

170.4

3.3

389.6

Total liabilities

33,047.5

21,618.4

9,940.1

1,489.0

Allocated equity:

3,413.5

1,992.2

579.1

842.2

Total liabilities and stockholders' equity

$

36,461.0

$

23,610.6

$

10,519.2

$

2,331.2

Excess funds provided (used)

-

3,061.7

3,591.8

(6,653.5

)

No. of offices

49

45

3

1

No. of full-time equivalent employees

1,915

581

156

1,178

Income Statement:

Three Months Ended June 30, 2020:

(in millions)

Net interest income

$

298.4

$

254.9

$

72.4

$

(28.9

)

Provision for (recovery of) credit losses

92.0

98.0

(10.5

)

4.5

Net interest income (expense) after provision for credit losses

206.4

156.9

82.9

(33.4

)

Non-interest income

21.3

9.6

0.4

11.3

Non-interest expense

114.8

71.2

21.2

22.4

Income (loss) before income taxes

112.9

95.3

62.1

(44.5

)

Income tax expense (benefit)

19.6

22.9

14.7

(18.0

)

Net income (loss)

$

93.3

$

72.4

$

47.4

$

(26.5

)

Six Months Ended June 30, 2020:

(in millions)

Net interest income

$

567.4

$

483.4

$

128.1

$

(44.1

)

Provision for credit losses

143.2

145.8

(7.5

)

4.9

Net interest income (expense) after provision for credit losses

424.2

337.6

135.6

(49.0

)

Non-interest income

26.4

21.0

0.8

4.6

Non-interest expense

235.3

153.6

47.0

34.7

Income (loss) before income taxes

215.3

205.0

89.4

(79.1

)

Income tax expense (benefit)

38.1

48.9

21.1

(31.9

)

Net income (loss)

$

177.2

$

156.1

$

68.3

$

(47.2

)

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited



Balance Sheet:

Consolidated Commercial Consumer Corporate Company Related

At December 31, (dollars in millions)2020:

Assets:

Cash, cashequivalents, and $ 8,176.5 $ 12.0 $ 45.6 $ 8,118.9 investmentsecurities

Loans, net ofdeferred loan fees 27,053.0 20,245.8 6,798.2 9.0 and costs

Less: allowance for (278.9 ) (263.4 ) (15.4 ) (0.1 )loan losses

Total loans 26,774.1 19,982.4 6,782.8 8.9

Other assetsacquired through 1.4 1.4 - - foreclosure, net

Goodwill and otherintangible assets, 298.5 296.1 2.4 - net

Other assets 1,210.5 257.0 96.6 856.9

Total assets $ 36,461.0 $ 20,548.9 $ 6,927.4 $ 8,984.7

Liabilities:

Deposits $ 31,930.5 $ 21,448.0 $ 9,936.8 $ 545.7

Borrowings and 553.7 - - 553.7 qualifying debt

Other liabilities 563.3 170.4 3.3 389.6

Total liabilities 33,047.5 21,618.4 9,940.1 1,489.0

Allocated equity: 3,413.5 1,992.2 579.1 842.2

Total liabilitiesand stockholders' $ 36,461.0 $ 23,610.6 $ 10,519.2 $ 2,331.2 equity

Excess funds - 3,061.7 3,591.8 (6,653.5 )provided (used)



No. of offices 49 45 3 1

No. of full-time 1,915 581 156 1,178 equivalent employees



Income Statement:



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

Net interest income $ 298.4 $ 254.9 $ 72.4 $ (28.9 )

Provision for(recovery of) credit 92.0 98.0 (10.5 ) 4.5 losses

Net interest income(expense) after 206.4 156.9 82.9 (33.4 )provision for creditlosses

Non-interest income 21.3 9.6 0.4 11.3

Non-interest expense 114.8 71.2 21.2 22.4

Income (loss) before 112.9 95.3 62.1 (44.5 )income taxes

Income tax expense 19.6 22.9 14.7 (18.0 )(benefit)

Net income (loss) $ 93.3 $ 72.4 $ 47.4 $ (26.5 )



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

Net interest income $ 567.4 $ 483.4 $ 128.1 $ (44.1 )

Provision for credit 143.2 145.8 (7.5 ) 4.9 losses

Net interest income(expense) after 424.2 337.6 135.6 (49.0 )provision for creditlosses

Non-interest income 26.4 21.0 0.8 4.6

Non-interest expense 235.3 153.6 47.0 34.7

Income (loss) before 215.3 205.0 89.4 (79.1 )income taxes

Income tax expense 38.1 48.9 21.1 (31.9 )(benefit)

Net income (loss) $ 177.2 $ 156.1 $ 68.3 $ (47.2 )



Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter:

Three Months Ended

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

(in millions)

Net interest income

$

370.5

$

317.3

$

314.8

$

284.7

$

298.4

Total non-interest income

136.0

19.7

23.8

20.6

21.3

Net revenue

$

506.5

$

337.0

$

338.6

$

305.3

$

319.7

Total non-interest expense

244.8

135.0

132.2

124.1

114.8

Less: Acquisition and restructure expenses

15.7

0.4

-

-

-

Total non-interest expense, adjusted

$

229.1

$

134.6

$

132.2

$

124.1

$

114.8

Pre-provision net revenue (1)

$

277.4

$

202.4

$

206.4

$

181.2

$

204.9

Less:

Acquisition and restructure expenses

15.7

0.4

-

-

-

(Recovery of) provision for credit losses

(14.5

)

(32.4

)

(34.2

)

14.6

92.0

Income tax expense

52.4

41.9

47.0

30.8

19.6

Net income

$

223.8

$

192.5

$

193.6

$

135.8

$

93.3

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-ProvisionNet Revenue by Quarter:

Three Months Ended

6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020

(in millions)

Net interest $ 370.5 $ 317.3 $ 314.8 $ 284.7 $ 298.4 income

Totalnon-interest 136.0 19.7 23.8 20.6 21.3 income

Net revenue $ 506.5 $ 337.0 $ 338.6 $ 305.3 $ 319.7

Totalnon-interest 244.8 135.0 132.2 124.1 114.8 expense

Less:Acquisition and 15.7 0.4 - - - restructureexpenses

Totalnon-interest $ 229.1 $ 134.6 $ 132.2 $ 124.1 $ 114.8 expense,adjusted

Pre-provision $ 277.4 $ 202.4 $ 206.4 $ 181.2 $ 204.9 net revenue (1)

Less:

Acquisition andrestructure 15.7 0.4 - - - expenses

(Recovery of)provision for (14.5 ) (32.4 ) (34.2 ) 14.6 92.0 credit losses

Income tax 52.4 41.9 47.0 30.8 19.6 expense

Net income $ 223.8 $ 192.5 $ 193.6 $ 135.8 $ 93.3

Efficiency Ratio by Quarter:

Total non-interest expense, adjusted

$

229.1

$

134.6

$

132.2

$

124.1

$

114.8

Divided by:

Total net interest income

370.5

317.3

314.8

284.7

298.4

Plus:

Tax equivalent interest adjustment

8.5

8.0

7.7

7.2

7.0

Total non-interest income

136.0

19.7

23.8

20.6

21.3

$

515.0

$

345.0

$

346.3

$

312.5

$

326.7

Efficiency ratio - tax equivalent basis (2)

44.5

%

39.0

%

38.2

%

39.7

%

35.1

%

Efficiency Ratio by Quarter:

Total non-interest expense, $ 229.1 $ 134.6 $ 132.2 $ 124.1 $ 114.8 adjusted

Divided by:

Total net interest income 370.5 317.3 314.8 284.7 298.4

Plus:

Tax equivalent interest 8.5 8.0 7.7 7.2 7.0 adjustment

Total non-interest income 136.0 19.7 23.8 20.6 21.3

$ 515.0 $ 345.0 $ 346.3 $ 312.5 $ 326.7

Efficiency ratio - tax 44.5 % 39.0 % 38.2 % 39.7 % 35.1 %equivalent basis (2)

Tangible Common Equity:

6/30/2021

3/31/2021

12/31/2020

9/30/2020

6/30/2020

(dollars and shares in millions)

Total stockholders' equity

$

4,034.5

$

3,712.7

$

3,413.5

$

3,224.0

$

3,102.4

Less: goodwill and intangible assets

610.7

298.0

298.5

299.0

296.9

Total tangible common equity

3,423.8

3,414.7

3,115.0

2,925.0

2,805.5

Plus: deferred tax - attributed to intangible assets

1.8

1.4

1.6

1.7

1.8

Total tangible common equity, net of tax

$

3,425.6

$

3,416.1

$

3,116.6

$

2,926.7

$

2,807.3

Total assets

$

49,069.0

$

43,397.0

$

36,461.0

$

33,335.5

$

31,906.4

Less: goodwill and intangible assets, net

610.7

298.0

298.5

299.0

296.9

Tangible assets

48,458.3

43,099.0

36,162.5

33,036.5

31,609.5

Plus: deferred tax - attributed to intangible assets

1.8

1.4

1.6

1.7

1.8

Total tangible assets, net of tax

$

48,460.1

$

43,100.4

$

36,164.1

$

33,038.2

$

31,611.3

Tangible common equity ratio (3)

7.1

%

7.9

%

8.6

%

8.9

%

8.9

%

Common shares outstanding

104.2

103.4

100.8

100.8

100.8

Tangible book value per share, net of tax (3)

$

32.86

$

33.02

$

30.90

$

29.03

$

27.84

TangibleCommon Equity:

6/30/2021 3/31/2021 12/31/2020 9/30/2020 6/30/2020

(dollars and shares in millions)

Totalstockholders' $ 4,034.5 $ 3,712.7 $ 3,413.5 $ 3,224.0 $ 3,102.4 equity

Less:goodwill and 610.7 298.0 298.5 299.0 296.9 intangibleassets

Totaltangible 3,423.8 3,414.7 3,115.0 2,925.0 2,805.5 common equity

Plus:deferred tax- attributed 1.8 1.4 1.6 1.7 1.8 to intangibleassets

Totaltangiblecommon $ 3,425.6 $ 3,416.1 $ 3,116.6 $ 2,926.7 $ 2,807.3 equity, netof tax

Total assets $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5 $ 31,906.4

Less:goodwill and 610.7 298.0 298.5 299.0 296.9 intangibleassets, net

Tangible 48,458.3 43,099.0 36,162.5 33,036.5 31,609.5 assets

Plus:deferred tax- attributed 1.8 1.4 1.6 1.7 1.8 to intangibleassets

Totaltangible $ 48,460.1 $ 43,100.4 $ 36,164.1 $ 33,038.2 $ 31,611.3 assets, netof tax

Tangiblecommon equity 7.1 % 7.9 % 8.6 % 8.9 % 8.9 %ratio (3)

Common shares 104.2 103.4 100.8 100.8 100.8 outstanding

Tangible bookvalue per $ 32.86 $ 33.02 $ 30.90 $ 29.03 $ 27.84 share, net oftax (3)

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210715006043/en/

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