Business Wire | Oct 21, 2021 04:17PM EDT

Western Alliance Bancorporation Reports Third Quarter 2021 Financial Results

Oct. 21, 2021

PHOENIX--(BUSINESS WIRE)--Oct. 21, 2021--Western Alliance Bancorporation (NYSE:WAL):

THIRD QUARTER 2021 FINANCIAL RESULTS

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

$2.28 $40.49

$34.67^1,$236.9 $2.30, excluding $317.1 3.43% 41.5% excludingmillion acquisition and million restructure expenses goodwill and intangibles

CEO COMMENTARY:

"Western Alliance continued to deliver exceptional balance sheet growth in the third quarter, surpassing the $50 billion asset milestone, while generating record revenues, PPNR1 and earnings," said Kenneth A. Vecchione, President and Chief Executive Officer. "Our unique national commercial business strategy produced our highest ever quarterly organic loan growth of $4.8 billion (63% annualized), with deposits also up $3.4 billion (32% annualized), driving a 14.3% increase in PPNR1 during the quarter to $317.1 million. Further, our ability to thoughtfully deploy liquidity into earning assets produced record net income of $236.9 million and earnings per share of $2.28 (or $2.30, excluding merger and restructure costs). Asset quality remained stable with nonperforming assets to total assets of 0.17% and annualized net charge-offs to average loans outstanding at a modest 0.04% for the quarter."

Acquisition of AmeriHome Mortgage Company:

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

CEO COMMENTARY:

"Western Alliance continued to deliver exceptional balance sheet growth in thethird quarter, surpassing the $50 billion asset milestone, while generatingrecord revenues, PPNR^1 and earnings," said Kenneth A. Vecchione, President andChief Executive Officer. "Our unique national commercial business strategyproduced our highest ever quarterly organic loan growth of $4.8 billion (63%annualized), with deposits also up $3.4 billion (32% annualized), driving a14.3% increase in PPNR^1 during the quarter to $317.1 million. Further, ourability to thoughtfully deploy liquidity into earning assets produced recordnet income of $236.9 million and earnings per share of $2.28 (or $2.30,excluding merger and restructure costs). Asset quality remained stable withnonperforming assets to total assets of 0.17% and annualized net charge-offs toaverage loans outstanding at a modest 0.04% for the quarter."

Acquisition of AmeriHome Mortgage Company:

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

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:

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

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

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

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

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

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

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

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

FINANCIAL POSITION RESULTS:

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

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

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

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

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

* Increase in stockholders' equity of $1.3 billion

LOANS AND ASSET QUALITY:

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

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

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

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

KEY PERFORMANCE METRICS:

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

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

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

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

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

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

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

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

* Efficiency ratio1 of 41.5%, compared to 44.5%

* Efficiency ratio1 of 41.5%, compared to 39.7%

LINKED-QUARTER BASIS YEAR-OVER-YEAR



FINANCIAL HIGHLIGHTS:

* Net income of $236.9 million and * Net income of $236.9 million and earnings per share of $2.28, earnings per share of $2.28, up compared to $223.8 million and 74.4% and 67.6%, from $135.8 $2.17, respectively million and $1.36, respectively

* Net revenue of $548.5 million, an * Net revenue of $548.5 million, an increase of 8.3%, or $42.0 million, increase of 79.7%, or $243.2 compared to a decrease in million, compared to an increase in non-interest expenses of (4.5)%, or non-interest expenses of 88.4%, or $(11.0) million $109.7 million

* Pre-provision net revenue^1 of * Pre-provision net revenue^1 of $317.1 million, up $39.7 million $317.1 million, up $135.9 million from $277.4 million from $181.2 million

* Effective tax rate of 21.7%, * Effective tax rate of 21.7%, compared to 19.0% compared to 18.5%

FINANCIAL POSITION RESULTS:

* HFI loans of $34.8 billion, up $4.8 * Increase in HFI loans of $8.8 billion, or 63.1% annualized billion, or 33.9%

* Total deposits of $45.3 billion, up * Increase in total deposits of $16.4 $3.4 billion, or 31.8% annualized billion, or 57.0%

* Stockholders' equity of $4.5 * Increase in stockholders' equity of billion, up $480 million $1.3 billion

LOANS AND ASSET QUALITY:

* Nonperforming assets (nonaccrual loans and repossessed assets) to * Nonperforming assets to total total assets of 0.17%, compared to assets of 0.17%, compared to 0.47% 0.20%

* Annualized net loan charge-offs to * Annualized net loan charge-offs to average loans outstanding of 0.04%, average loans outstanding of 0.04%, compared to approximately 0.00% compared to 0.13%

KEY PERFORMANCE METRICS:

* Net interest margin of 3.43%, * Net interest margin of 3.43%, compared to 3.51% compared to 3.71%

* Return on average assets and on * Return on average assets and on tangible common equity^1 of 1.83% tangible common equity^1 of 1.83% and 26.6%, compared to 1.86% and and 26.6%, compared to 1.66% and 28.1%, respectively 18.7%, respectively

* Tangible common equity ratio^1 of * Tangible common equity ratio^1 of 6.9%, compared to 7.1% 6.9%, compared to 8.9%

* Tangible book value per share^1, * Tangible book value per share^1, net of tax, of $34.67, an increase net of tax, of $34.67, an increase of 5.5% from $32.86 of 19.4% from $29.03

* Efficiency ratio^1 of 41.5%,^ * Efficiency ratio^1 of 41.5%, compared to 44.5% compared to 39.7%

1See reconciliation of Non-GAAP Financial Measures.

Income Statement

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

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

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

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

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

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

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

Net income was $236.9 million for the third quarter 2021, an increase of $13.1 million from $223.8 million for the second quarter 2021, and an increase of $101.1 million from $135.8 million for the third quarter 2020. Earnings per share was $2.28 for the third quarter 2021, or $2.30 per share after adjusting for acquisition and restructure expenses, compared to $2.17, or $2.29 per share after adjusting for acquisition and restructure expenses, for the second quarter 2021, and $1.36 for the third quarter 2020. As discussed above, the increase in net income and earnings per share for the third quarter 2021 compared to the same quarter last year was driven by continued HFI loan growth and new activity related to the AmeriHome acquisition.

The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company's earnings power, which it defines as net revenue less non-interest expense, adjusted for acquisition and restructure expenses. For the third quarter 2021, the Company's PPNR1 was $317.1 million, up $39.7 million from $277.4 million in the second quarter 2021, and up $135.9 million from $181.2 million in the third quarter 2020. The increase in PPNR from the second quarter 2021 and third quarter 2020 was driven by HFI loan growth and the AmeriHome acquisition completed on April 7, 2021.

The Company had 3,061 full-time equivalent employees and 54 offices at September 30, 2021, compared to 3,075 employees and 53 offices at June 30, 2021, and 1,885 employees and 49 offices at September 30, 2020. The increase in employees from the prior year primarily relates to the addition of AmeriHome employees.

^1See reconciliation of Non-GAAP Financial Measures.

Income Statement

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

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

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

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

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

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

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

Net income was $236.9 million for the third quarter 2021, an increase of $13.1 million from $223.8 million for the second quarter 2021, and an increase of $101.1 million from $135.8 million for the third quarter 2020. Earnings per share was $2.28 for the third quarter 2021, or $2.30 per share after adjusting for acquisition and restructure expenses, compared to $2.17, or $2.29 per share after adjusting for acquisition and restructure expenses, for the second quarter 2021, and $1.36 for the third quarter 2020. As discussed above, the increase in net income and earnings per share for the third quarter 2021 compared to the same quarter last year was driven by continued HFI loan growth and new activity related to the AmeriHome acquisition.

The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company's earnings power, which it defines as net revenue less non-interest expense, adjusted for acquisition and restructure expenses. For the third quarter 2021, the Company's PPNR1 was $317.1 million, up $39.7 million from $277.4 million in the second quarter 2021, and up $135.9 million from $181.2 million in the third quarter 2020. The increase in PPNR from the second quarter 2021 and third quarter 2020 was driven by HFI loan growth and the AmeriHome acquisition completed on April 7, 2021.

The Company had 3,061 full-time equivalent employees and 54 offices at September 30, 2021, compared to 3,075 employees and 53 offices at June 30, 2021, and 1,885 employees and 49 offices at September 30, 2020. The increase in employees from the prior year primarily relates to the addition of AmeriHome employees.

^1See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

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

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

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

Sep 30, 2021 Jun 30, 2021 Sep 30, 2020

Non-interest bearing 46.5 % 48.0 % 45.1 %

Savings and money market 38.5 37.7 36.7

Interest-bearing demand 10.9 10.0 12.3

Certificates of deposit 4.0 4.3 5.9

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

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

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

Stockholders' equity was $4.5 billion at September 30, 2021, compared to $4.0 billion at June 30, 2021, and $3.2 billion at September 30, 2020. The increase in stockholders' equity from June 30, 2021 is attributable to net income and net proceeds of $294.5 million from the issuance of preferred stock in September 2021, partially offset by dividends to shareholders. A cash dividend of $0.35 per share was paid to shareholders on August 27, 2021, totaling $36.5 million. The increase in stockholders' equity from September 30, 2020 is primarily a function of net income, issuance of preferred stock, and sales of common stock in a direct stock offering and under the Company's ATM program, partially offset by dividends to shareholders.

At September 30, 2021, tangible common equity, net of tax, was 6.9% of tangible assets1 and total capital was 12.6% of risk-weighted assets. The Company's tangible book value per share1 was $34.67 at September 30, 2021, up 19.4% from September 30, 2020.

Total assets increased 7.6% to $52.8 billion at September 30, 2021, from $49.1 billion at June 30, 2021, and increased 58.3% from $33.3 billion at September 30, 2020. The increase in total assets from the prior year was driven by continued organic loan and deposit growth and the acquisition of net assets in the AmeriHome acquisition.

Asset Quality

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

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

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

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

1 See reconciliation of Non-GAAP Financial Measures.

Segment Highlights

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

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

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

The Commercial segment reported a gross loan balance of $22.8 billion at September 30, 2021, an increase of $2.2 billion during the quarter, and an increase of $3.2 billion during the last twelve months. Deposits for the Commercial segment totaled $28.4 billion at September 30, 2021, an increase of $2.1 billion during the quarter, and an increase of $8.5 billion during the last twelve months.

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

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

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

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2021 financial results at 12:00 p.m. ET on Friday, October 22, 2021. Participants may access the call by dialing 1-833-236-2753 and using the conference ID 5392611 or via live audio webcast using the website link https://event.on24.com/wcc/r/3410143/AC547BBFD4726AA7017B8288064212CD. The webcast is also available via the Company's website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET October 22nd through 11:00 p.m. ET November 22nd by dialing 1-800-585-8367, conference ID: 5392611.

Reclassifications

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

Use of Non-GAAP Financial Information

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

Cautionary Note Regarding Forward-Looking Statements

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

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

About Western Alliance Bancorporation

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

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited





Selected Balance Sheet Data:

As of September 30,

2021 2020 Change %

(in millions)

Total assets $ 52,775.1 $ 33,335.5 58.3 %

Loans held 6,534.3 20.8 NMfor sale

Gross HFIloans, net of 34,801.9 25,993.2 33.9 deferred fees

Investment 7,695.9 4,701.1 63.7securities

Total 45,282.6 28,843.4 57.0 deposits

Qualifying 1,064.9 618.8 72.1 debt

Stockholders' 4,514.0 3,224.0 40.0 equity

Tangiblecommon 3,612.9 2,926.7 23.4 equity, netof tax (1)





Selected Income Statement Data:

For the Three Months Ended For the Nine Months Ended September September 30, 30,

2021 2020 Change % 2021 2020 Change %

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

Interest $ 442.8 $ 304.8 45.3 % $ 1,175.4 $ 930.2 26.4 %income

Interest 32.4 20.1 61.2 77.2 78.1 (1.2) expense

Net interest 410.4 284.7 44.2 1,098.2 852.1 28.9 income

Provision for(recovery of) 12.3 14.6 (15.8) (34.6) 157.8 NMcredit losses

Net interestincome after 398.1 270.1 47.4 1,132.8 694.3 63.2 provision forcredit losses

Non-interest 138.1 20.6 NM 293.8 47.0 NMincome

Non-interest 233.8 124.1 88.4 613.6 359.4 70.7 expense

Income before 302.4 166.6 81.5 813.0 381.9 NMincome taxes

Income tax 65.5 30.8 NM 159.8 68.9 NMexpense

Net incomeavailable to $ 236.9 $ 135.8 74.4 $ 653.2 $ 313.0 NMcommonstockholders

Dilutedearnings per $ 2.28 $ 1.36 67.6 $ 6.35 $ 3.11 NMcommon 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 September 30,

For the Nine Months Ended September 30,

2021

2020

Change %

2021

2020

Change %

Diluted earnings per common share

$

2.28

$

1.36

67.6

%

$

6.35

$

3.11

NM

Book value per common share

40.49

31.98

26.6

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

34.67

29.03

19.4

Average common shares outstanding (in millions):

Basic

103.3

99.9

3.4

102.3

100.3

1.9

Diluted

103.9

100.1

3.8

102.9

100.6

2.3

Common shares outstanding

104.2

100.8

3.4

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited





Common Share Data:

At or For the Three Months For the Nine Months Ended Ended September 30, September 30,

2021 2020 Change 2021 2020 Change % %

Diluted earnings $ 2.28 $ 1.36 67.6 % $ 6.35 $ 3.11 NMper common share

Book value per 40.49 31.98 26.6 common share

Tangible bookvalue per common 34.67 29.03 19.4 share, net of tax(1)

Average commonshares outstanding (inmillions):

Basic 103.3 99.9 3.4 102.3 100.3 1.9

Diluted 103.9 100.1 3.8 102.9 100.6 2.3

Common shares 104.2 100.8 3.4 outstanding

Selected Performance Ratios:

Return on average assets (2)

1.83

%

1.66

%

10.2

%

1.89

%

1.38

%

37.0

%

Return on average tangible common equity (1, 2)

26.6

18.7

42.2

26.3

14.9

76.6

Net interest margin (2)

3.43

3.71

(7.5)

3.44

4.03

(14.6)

Efficiency ratio - tax equivalent basis (1)

41.5

39.7

4.5

42.0

39.1

7.4

Loan to deposit ratio

76.9

90.1

(14.7)

Asset Quality Ratios:

Net charge-offs to average loans outstanding (2)

0.04

%

0.13

%

(69.2)

0.02

%

0.06

%

(66.7)

%

Nonaccrual loans to funded HFI loans

0.22

0.56

(60.7)

Nonaccrual loans and repossessed assets to total assets

0.17

0.47

(63.8)

Allowance for loan losses to funded HFI loans

0.71

1.19

(40.3)

Allowance for loan losses to nonaccrual HFI loans

316

212

49.1

SelectedPerformance Ratios:

Return on average 1.83 % 1.66 % 10.2 % 1.89 % 1.38 % 37.0 %assets (2)

Return on averagetangible common 26.6 18.7 42.2 26.3 14.9 76.6 equity (1, 2)

Net interest 3.43 3.71 (7.5) 3.44 4.03 (14.6) margin (2)

Efficiency ratio- tax equivalent 41.5 39.7 4.5 42.0 39.1 7.4 basis (1)

Loan to deposit 76.9 90.1 (14.7) ratio



Asset Quality Ratios:

Net charge-offsto average loans 0.04 % 0.13 % (69.2) 0.02 % 0.06 % (66.7) %outstanding (2)

Nonaccrual loansto funded HFI 0.22 0.56 (60.7) loans

Nonaccrual loansand repossessed 0.17 0.47 (63.8) assets to totalassets

Allowance forloan losses to 0.71 1.19 (40.3) funded HFI loans

Allowance forloan losses to 316 212 49.1 nonaccrual HFIloans

Capital Ratios:Sep 30, 2021

Jun 30, 2021

Sep 30, 2020

Tangible common equity (1)

6.9

%

7.1

%

8.9

%

Common Equity Tier 1 (3)

8.7

9.2

10.0

Tier 1 Leverage ratio (3)

7.9

7.3

9.3

Tier 1 Capital (3)

9.6

9.4

10.3

Total Capital (3)

12.6

12.8

13.0

Capital Ratios:

Sep 30, 2021 Jun 30, 2021 Sep 30, 2020

Tangible common equity (1) 6.9 % 7.1 % 8.9 %

Common Equity Tier 1 (3) 8.7 9.2 10.0

Tier 1 Leverage ratio (3) 7.9 7.3 9.3

Tier 1 Capital (3) 9.6 9.4 10.3

Total Capital (3) 12.6 12.8 13.0

(1)

See Reconciliation of Non-GAAP Financial Measures.

(2)

Annualized on an actual/actual basis for periods less than 12 months.

(3)

Capital ratios for September 30, 2021 are preliminary.

NM

Changes +/- 100% are not meaningful.

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

(2) Annualized on an actual/actual basis for periods less than 12 months.

(3) Capital ratios for September 30, 2021 are preliminary.

NM Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(dollars in millions, except per share data)

Interest income:

Loans

$

398.0

$

276.6

$

1,050.2

$

843.1

Investment securities

43.5

27.4

121.0

83.0

Other

1.3

0.8

4.2

4.1

Total interest income

442.8

304.8

1,175.4

930.2

Interest expense:

Deposits

12.3

12.2

34.7

59.7

Qualifying debt

10.8

7.9

23.9

17.9

Borrowings

9.3

-

18.6

0.5

Total interest expense

32.4

20.1

77.2

78.1

Net interest income

410.4

284.7

1,098.2

852.1

Provision for (recovery of) credit losses

12.3

14.6

(34.6)

157.8

Net interest income after provision for credit losses

398.1

270.1

1,132.8

694.3

Non-interest income:

Net gain on loan origination and sale activities

121.0

-

253.0

-

Service charges and fees

7.1

5.9

21.2

17.4

Commercial banking related income

4.6

4.5

12.5

10.7

Income from equity investments

2.5

1.2

16.9

6.3

Net loan servicing revenue

2.2

-

(18.6)

-

Foreign currency income

1.9

1.8

5.6

4.3

Income from bank owned life insurance

1.0

1.3

2.9

9.0

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

(2.2)

5.9

(0.5)

(1.0)

Other

-

-

0.8

0.3

Total non-interest income

138.1

20.6

293.8

47.0

Non-interest expenses:

Salaries and employee benefits

133.5

78.8

346.1

220.5

Loan servicing expenses

15.6

-

37.9

-

Data processing

15.4

8.9

40.3

26.1

Legal, professional, and directors' fees

13.7

10.0

37.8

31.1

Occupancy

12.4

9.4

31.4

25.7

Loan acquisition and origination expenses

9.7

-

20.2

-

Deposit costs

7.3

3.2

20.7

14.0

Insurance

6.2

3.1

15.9

9.5

Loan and repossessed asset expenses

2.5

1.8

7.2

5.3

Intangible amortization

1.9

0.4

4.2

1.2

Business development

1.9

1.0

4.2

4.1

Marketing

0.9

0.8

3.2

2.6

Card expense

0.6

0.5

1.8

1.6

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

(1.3)

0.1

(3.1)

(1.3)

Acquisition and restructure expenses

2.4

-

18.5

-

Other

11.1

6.1

27.3

19.0

Total non-interest expense

233.8

124.1

613.6

359.4

Income before income taxes

302.4

166.6

813.0

381.9

Income tax expense

65.5

30.8

159.8

68.9

Net income available to common stockholders

$

236.9

$

135.8

$

653.2

$

313.0

Earnings per common share:

Diluted shares

103.9

100.1

102.9

100.6

Diluted earnings per share

$

2.28

$

1.36

$

6.35

$

3.11

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

Three Months Ended Nine Months Ended September 30, September 30,

2021 2020 2021 2020

(dollars in millions, except per share data)

Interest income:

Loans $ 398.0 $ 276.6 $ 1,050.2 $ 843.1

Investment securities 43.5 27.4 121.0 83.0

Other 1.3 0.8 4.2 4.1

Total interest income 442.8 304.8 1,175.4 930.2

Interest expense:

Deposits 12.3 12.2 34.7 59.7

Qualifying debt 10.8 7.9 23.9 17.9

Borrowings 9.3 - 18.6 0.5

Total interest expense 32.4 20.1 77.2 78.1

Net interest income 410.4 284.7 1,098.2 852.1

Provision for (recovery of) 12.3 14.6 (34.6) 157.8 credit losses

Net interest income after 398.1 270.1 1,132.8 694.3 provision for credit losses

Non-interest income:

Net gain on loanorigination and sale 121.0 - 253.0 - activities

Service charges and fees 7.1 5.9 21.2 17.4

Commercial banking related 4.6 4.5 12.5 10.7income

Income from equity 2.5 1.2 16.9 6.3investments

Net loan servicing revenue 2.2 - (18.6) -

Foreign currency income 1.9 1.8 5.6 4.3

Income from bank owned life 1.0 1.3 2.9 9.0insurance

Fair value gain (loss)adjustments on assets (2.2) 5.9 (0.5) (1.0) measured at fair value, net

Other - - 0.8 0.3

Total non-interest income 138.1 20.6 293.8 47.0

Non-interest expenses:

Salaries and employee 133.5 78.8 346.1 220.5 benefits

Loan servicing expenses 15.6 - 37.9 -

Data processing 15.4 8.9 40.3 26.1

Legal, professional, and 13.7 10.0 37.8 31.1 directors' fees

Occupancy 12.4 9.4 31.4 25.7

Loan acquisition and 9.7 - 20.2 - origination expenses

Deposit costs 7.3 3.2 20.7 14.0

Insurance 6.2 3.1 15.9 9.5

Loan and repossessed asset 2.5 1.8 7.2 5.3 expenses

Intangible amortization 1.9 0.4 4.2 1.2

Business development 1.9 1.0 4.2 4.1

Marketing 0.9 0.8 3.2 2.6

Card expense 0.6 0.5 1.8 1.6

Net (gain) on sales andvaluations of repossessed (1.3) 0.1 (3.1) (1.3) and other assets

Acquisition and restructure 2.4 - 18.5 - expenses

Other 11.1 6.1 27.3 19.0

Total non-interest expense 233.8 124.1 613.6 359.4

Income before income taxes 302.4 166.6 813.0 381.9

Income tax expense 65.5 30.8 159.8 68.9

Net income available to $ 236.9 $ 135.8 $ 653.2 $ 313.0 common stockholders



Earnings per common share:

Diluted shares 103.9 100.1 102.9 100.6

Diluted earnings per share $ 2.28 $ 1.36 $ 6.35 $ 3.11

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

(in millions, except per share data)

Interest income:

Loans

$

398.0

$

353.8

$

298.4

$

301.2

$

276.6

Investment securities

43.5

43.5

34.0

29.4

27.4

Other

1.3

1.2

1.7

1.0

0.8

Total interest income

442.8

398.5

334.1

331.6

304.8

Interest expense:

Deposits

12.3

11.6

10.8

10.7

12.2

Qualifying debt

10.8

7.2

5.9

6.0

7.9

Borrowings

9.3

9.2

0.1

0.1

-

Total interest expense

32.4

28.0

16.8

16.8

20.1

Net interest income

410.4

370.5

317.3

314.8

284.7

Provision for (recovery of) credit losses

12.3

(14.5)

(32.4)

(34.2)

14.6

Net interest income after provision for credit losses

398.1

385.0

349.7

349.0

270.1

Non-interest income:

Net gain on loan origination and sale activities

121.0

132.0

-

-

-

Service charges and fees

7.1

7.4

6.7

5.9

5.9

Commercial banking related income

4.6

4.5

3.4

4.0

4.5

Income from equity investments

2.5

6.8

7.6

6.4

1.2

Net loan servicing revenue

2.2

(20.8)

-

-

-

Foreign currency income

1.9

1.5

2.2

1.3

1.8

Income from bank owned life insurance

1.0

0.9

1.0

1.2

1.3

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

(2.2)

3.2

(1.5)

4.8

5.9

Other

-

0.5

0.3

0.2

-

Total non-interest income

138.1

136.0

19.7

23.8

20.6

Non-interest expenses:

Salaries and employee benefits

133.5

128.9

83.7

83.1

78.8

Loan servicing expenses

15.6

22.3

-

-

-

Data processing

15.4

15.0

9.9

9.6

8.9

Legal, professional, and directors' fees

13.7

14.0

10.1

11.1

10.0

Occupancy

12.4

10.4

8.6

8.4

9.4

Loan acquisition and origination expenses

9.7

10.5

-

-

-

Deposit costs

7.3

7.1

6.3

4.5

3.2

Insurance

6.2

5.5

4.2

3.8

3.1

Loan and repossessed asset expenses

2.5

2.5

2.2

1.8

1.8

Intangible amortization

1.9

1.8

0.5

0.4

0.4

Business development

1.9

1.5

0.8

1.4

1.0

Marketing

0.9

1.7

0.6

1.5

0.8

Card expense

0.6

0.6

0.6

0.6

0.5

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

(1.3)

(1.5)

(0.3)

(0.2)

0.1

Acquisition and restructure expenses

2.4

15.7

0.4

-

-

Other

11.1

8.8

7.4

6.2

6.1

Total non-interest expense

233.8

244.8

135.0

132.2

124.1

Income before income taxes

302.4

276.2

234.4

240.6

166.6

Income tax expense

65.5

52.4

41.9

47.0

30.8

Net income available to common stockholders

$

236.9

$

223.8

$

192.5

$

193.6

$

135.8

Earnings per common share:

Diluted shares

103.9

103.4

101.4

100.4

100.1

Diluted earnings per share

$

2.28

$

2.17

$

1.90

$

1.93

$

1.36

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

Three Months Ended

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

(in millions, except per share data)

Interest income:

Loans $ 398.0 $ 353.8 $ 298.4 $ 301.2 $ 276.6

Investment 43.5 43.5 34.0 29.4 27.4 securities

Other 1.3 1.2 1.7 1.0 0.8

Total interest 442.8 398.5 334.1 331.6 304.8 income

Interest expense:

Deposits 12.3 11.6 10.8 10.7 12.2

Qualifying debt 10.8 7.2 5.9 6.0 7.9

Borrowings 9.3 9.2 0.1 0.1 -

Total interest 32.4 28.0 16.8 16.8 20.1 expense

Net interest income 410.4 370.5 317.3 314.8 284.7

Provision for(recovery of) 12.3 (14.5) (32.4) (34.2) 14.6 credit losses

Net interest incomeafter provision for 398.1 385.0 349.7 349.0 270.1 credit losses

Non-interest income:

Net gain on loanorigination and 121.0 132.0 - - - sale activities

Service charges and 7.1 7.4 6.7 5.9 5.9 fees

Commercial banking 4.6 4.5 3.4 4.0 4.5 related income

Income from equity 2.5 6.8 7.6 6.4 1.2 investments

Net loan servicing 2.2 (20.8) - - - revenue

Foreign currency 1.9 1.5 2.2 1.3 1.8 income

Income from bankowned life 1.0 0.9 1.0 1.2 1.3 insurance

Fair value (loss)gain adjustments on (2.2) 3.2 (1.5) 4.8 5.9 assets measured atfair value, net

Other - 0.5 0.3 0.2 -

Total non-interest 138.1 136.0 19.7 23.8 20.6 income

Non-interest expenses:

Salaries and 133.5 128.9 83.7 83.1 78.8 employee benefits

Loan servicing 15.6 22.3 - - - expenses

Data processing 15.4 15.0 9.9 9.6 8.9

Legal,professional, and 13.7 14.0 10.1 11.1 10.0 directors' fees

Occupancy 12.4 10.4 8.6 8.4 9.4

Loan acquisitionand origination 9.7 10.5 - - - expenses

Deposit costs 7.3 7.1 6.3 4.5 3.2

Insurance 6.2 5.5 4.2 3.8 3.1

Loan andrepossessed asset 2.5 2.5 2.2 1.8 1.8 expenses

Intangible 1.9 1.8 0.5 0.4 0.4 amortization

Business 1.9 1.5 0.8 1.4 1.0 development

Marketing 0.9 1.7 0.6 1.5 0.8

Card expense 0.6 0.6 0.6 0.6 0.5

Net (gain) loss onsales andvaluations of (1.3) (1.5) (0.3) (0.2) 0.1 repossessed andother assets

Acquisition andrestructure 2.4 15.7 0.4 - - expenses

Other 11.1 8.8 7.4 6.2 6.1

Total non-interest 233.8 244.8 135.0 132.2 124.1 expense

Income before 302.4 276.2 234.4 240.6 166.6 income taxes

Income tax expense 65.5 52.4 41.9 47.0 30.8

Net incomeavailable to common $ 236.9 $ 223.8 $ 192.5 $ 193.6 $ 135.8 stockholders



Earnings per common share:

Diluted shares 103.9 103.4 101.4 100.4 100.1

Diluted earnings $ 2.28 $ 2.17 $ 1.90 $ 1.93 $ 1.36 per share

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

(in millions)

Assets:

Cash and due from banks

$

917.9

$

3,395.8

$

5,346.5

$

2,671.7

$

1,418.7

Investment securities

7,695.9

7,845.0

7,888.8

5,504.8

4,701.1

Loans held for sale

6,534.3

4,465.2

-

-

20.8

Loans held for investment:

Commercial and industrial

16,524.7

14,284.5

15,070.7

14,324.4

13,648.6

Commercial real estate - non-owner occupied

5,843.7

5,695.6

5,681.4

5,654.7

5,407.4

Commercial real estate - owner occupied

1,996.6

2,028.1

2,052.0

2,156.8

2,213.5

Construction and land development

2,943.3

2,856.9

2,767.9

2,431.3

2,300.5

Residential real estate

7,452.8

5,120.7

3,109.1

2,434.6

2,387.1

Consumer

40.8

40.6

29.9

51.2

36.1

Gross loans, net of deferred fees

34,801.9

30,026.4

28,711.0

27,053.0

25,993.2

Allowance for loan losses

(246.9)

(232.9)

(247.1)

(278.9)

(310.5)

Loans, net

34,555.0

29,793.5

28,463.9

26,774.1

25,682.7

Mortgage servicing rights

604.8

726.2

-

-

-

Premises and equipment, net

161.2

150.2

138.4

134.1

128.3

Operating lease right-of-use asset

106.0

94.9

77.0

72.5

71.4

Other assets acquired through foreclosure, net

11.5

3.9

4.2

1.4

8.6

Bank owned life insurance

179.2

178.2

177.3

176.3

175.5

Goodwill and other intangibles, net

608.4

610.7

298.0

298.5

299.0

Other assets

1,400.9

1,805.4

1,002.9

827.6

829.4

Total assets

$

52,775.1

$

49,069.0

$

43,397.0

$

36,461.0

$

33,335.5

Liabilities and Stockholders' Equity:

Liabilities:

Deposits

Non-interest bearing demand deposits

$

21,058.2

$

20,105.6

$

17,542.8

$

13,463.3

$

13,013.0

Interest bearing:

Demand

4,954.3

4,187.7

3,893.4

4,396.4

3,554.6

Savings and money market

17,440.1

15,810.3

15,276.0

12,413.4

10,574.9

Certificates of deposit

1,830.0

1,817.4

1,680.9

1,657.4

1,700.9

Total deposits

45,282.6

41,921.0

38,393.1

31,930.5

28,843.4

Customer repurchase agreements

16.1

20.2

15.9

16.0

19.7

Total customer funds

45,298.7

41,941.2

38,409.0

31,946.5

28,863.1

Borrowings

987.4

595.2

5.0

5.0

10.0

Qualifying debt

1,064.9

1,140.0

543.7

548.7

618.8

Operating lease liability

115.0

102.4

84.6

79.9

78.6

Accrued interest payable and other liabilities

795.1

1,255.7

642.0

467.4

541.0

Total liabilities

48,261.1

45,034.5

39,684.3

33,047.5

30,111.5

Stockholders' Equity:

Preferred stock

294.5

-

-

-

-

Common stock and additional paid-in capital

1,609.9

1,603.4

1,524.2

1,319.8

1,312.4

Retained earnings

2,567.0

2,366.6

2,168.6

2,001.4

1,833.0

Accumulated other comprehensive income

42.6

64.5

19.9

92.3

78.6

Total stockholders' equity

4,514.0

4,034.5

3,712.7

3,413.5

3,224.0

Total liabilities and stockholders' equity

$

52,775.1

$

49,069.0

$

43,397.0

$

36,461.0

$

33,335.5

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

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

(in millions)

Assets:

Cash and due $ 917.9 $ 3,395.8 $ 5,346.5 $ 2,671.7 $ 1,418.7 from banks

Investment 7,695.9 7,845.0 7,888.8 5,504.8 4,701.1 securities

Loans held 6,534.3 4,465.2 - - 20.8 for sale

Loans heldfor investment:

Commercialand 16,524.7 14,284.5 15,070.7 14,324.4 13,648.6 industrial

Commercialreal estate - 5,843.7 5,695.6 5,681.4 5,654.7 5,407.4 non-owneroccupied

Commercialreal estate - 1,996.6 2,028.1 2,052.0 2,156.8 2,213.5 owneroccupied

Constructionand land 2,943.3 2,856.9 2,767.9 2,431.3 2,300.5 development

Residential 7,452.8 5,120.7 3,109.1 2,434.6 2,387.1 real estate

Consumer 40.8 40.6 29.9 51.2 36.1

Gross loans,net of 34,801.9 30,026.4 28,711.0 27,053.0 25,993.2 deferred fees

Allowance for (246.9) (232.9) (247.1) (278.9) (310.5) loan losses

Loans, net 34,555.0 29,793.5 28,463.9 26,774.1 25,682.7

Mortgageservicing 604.8 726.2 - - - rights

Premises andequipment, 161.2 150.2 138.4 134.1 128.3 net

Operatinglease 106.0 94.9 77.0 72.5 71.4 right-of-useasset

Other assetsacquiredthrough 11.5 3.9 4.2 1.4 8.6 foreclosure,net

Bank ownedlife 179.2 178.2 177.3 176.3 175.5 insurance

Goodwill andother 608.4 610.7 298.0 298.5 299.0 intangibles,net

Other assets 1,400.9 1,805.4 1,002.9 827.6 829.4

Total assets $ 52,775.1 $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5

Liabilitiesand Stockholders'Equity:

Liabilities:

Deposits

Non-interestbearing $ 21,058.2 $ 20,105.6 $ 17,542.8 $ 13,463.3 $ 13,013.0 demanddeposits

Interest bearing:

Demand 4,954.3 4,187.7 3,893.4 4,396.4 3,554.6

Savings and 17,440.1 15,810.3 15,276.0 12,413.4 10,574.9 money market

Certificates 1,830.0 1,817.4 1,680.9 1,657.4 1,700.9 of deposit

Total 45,282.6 41,921.0 38,393.1 31,930.5 28,843.4 deposits

Customerrepurchase 16.1 20.2 15.9 16.0 19.7 agreements

Totalcustomer 45,298.7 41,941.2 38,409.0 31,946.5 28,863.1 funds

Borrowings 987.4 595.2 5.0 5.0 10.0

Qualifying 1,064.9 1,140.0 543.7 548.7 618.8 debt

Operatinglease 115.0 102.4 84.6 79.9 78.6 liability

Accruedinterestpayable and 795.1 1,255.7 642.0 467.4 541.0 otherliabilities

Total 48,261.1 45,034.5 39,684.3 33,047.5 30,111.5 liabilities

Stockholders' Equity:

Preferred 294.5 - - - - stock

Common stockandadditional 1,609.9 1,603.4 1,524.2 1,319.8 1,312.4 paid-incapital

Retained 2,567.0 2,366.6 2,168.6 2,001.4 1,833.0 earnings

Accumulatedother 42.6 64.5 19.9 92.3 78.6 comprehensiveincome

Totalstockholders' 4,514.0 4,034.5 3,712.7 3,413.5 3,224.0 equity

Totalliabilitiesand $ 52,775.1 $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5 stockholders'equity

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

(in millions)

Allowance for loan losses

Balance, beginning of period

$

232.9

$

247.1

$

278.9

$

310.5

$

310.5

Provision for (recovery of) credit losses (1)

17.0

(14.1)

(30.4)

(27.7)

8.2

Recoveries of loans previously charged-off:

Commercial and industrial

0.1

0.4

0.5

1.5

0.2

Commercial real estate - non-owner occupied

-

1.7

0.2

0.1

-

Commercial real estate - owner occupied

0.1

-

-

0.1

-

Construction and land development

0.1

-

-

-

-

Residential real estate

-

0.1

-

0.1

0.4

Consumer

-

-

-

-

-

Total recoveries

0.3

2.2

0.7

1.8

0.6

Loans charged-off:

Commercial and industrial

3.3

2.3

0.1

5.6

7.1

Commercial real estate - non-owner occupied

-

-

2.0

-

1.3

Commercial real estate - owner occupied

-

-

-

0.1

0.1

Construction and land development

-

-

-

-

-

Residential real estate

-

-

-

-

0.3

Consumer

-

-

-

-

-

Total loans charged-off

3.3

2.3

2.1

5.7

8.8

Net loan charge-offs

3.0

0.1

1.4

3.9

8.2

Balance, end of period

$

246.9

$

232.9

$

247.1

$

278.9

$

310.5

Allowance for unfunded loan commitments

Balance, beginning of period

$

31.3

$

32.6

$

37.0

$

44.4

$

36.3

Provision for (recovery of) credit losses (1)

0.8

(1.3)

(4.4)

(7.4)

8.1

Balance, end of period (2)

$

32.1

$

31.3

$

32.6

$

37.0

$

44.4

Components of the allowance for credit losses on loans

Allowance for loan losses

$

246.9

$

232.9

$

247.1

$

278.9

$

310.5

Allowance for unfunded loan commitments

32.1

31.3

32.6

37.0

44.4

Total allowance for credit losses on loans

$

279.0

$

264.2

$

279.7

$

315.9

$

354.9

Net charge-offs to average loans - annualized

0.04

%

0.00

%

0.02

%

0.06

%

0.13

%

Allowance for loan losses to funded HFI loans

0.71

%

0.78

%

0.86

%

1.03

%

1.19

%

Allowance for credit losses to funded HFI loans

0.80

0.88

0.97

1.17

1.37

Allowance for loan losses to nonaccrual HFI loans

316

242

218

242

212

Allowance for credit losses to nonaccrual HFI loans

357

274

246

274

242

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

Three Months Ended

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

(in millions)

Allowance for loan losses

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

Provision for(recovery of) 17.0 (14.1) (30.4) (27.7) 8.2 credit losses (1)

Recoveries of loanspreviously charged-off:

Commercial and 0.1 0.4 0.5 1.5 0.2 industrial

Commercial realestate - non-owner - 1.7 0.2 0.1 - occupied

Commercial realestate - owner 0.1 - - 0.1 - occupied

Construction and 0.1 - - - - land development

Residential real - 0.1 - 0.1 0.4 estate

Consumer - - - - -

Total recoveries 0.3 2.2 0.7 1.8 0.6

Loans charged-off:

Commercial and 3.3 2.3 0.1 5.6 7.1 industrial

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

Commercial realestate - owner - - - 0.1 0.1 occupied

Construction and - - - - - land development

Residential real - - - - 0.3 estate

Consumer - - - - -

Total loans 3.3 2.3 2.1 5.7 8.8 charged-off

Net loan 3.0 0.1 1.4 3.9 8.2 charge-offs

Balance, end of $ 246.9 $ 232.9 $ 247.1 $ 278.9 $ 310.5 period



Allowance forunfunded loan commitments

Balance, beginning $ 31.3 $ 32.6 $ 37.0 $ 44.4 $ 36.3 of period

Provision for(recovery of) 0.8 (1.3) (4.4) (7.4) 8.1 credit losses (1)

Balance, end of $ 32.1 $ 31.3 $ 32.6 $ 37.0 $ 44.4 period (2)



Components of theallowance for credit losses onloans

Allowance for loan $ 246.9 $ 232.9 $ 247.1 $ 278.9 $ 310.5 losses

Allowance forunfunded loan 32.1 31.3 32.6 37.0 44.4 commitments

Total allowance forcredit losses on $ 279.0 $ 264.2 $ 279.7 $ 315.9 $ 354.9 loans



Net charge-offs toaverage loans - 0.04 % 0.00 % 0.02 % 0.06 % 0.13 %annualized



Allowance for loanlosses to funded 0.71 % 0.78 % 0.86 % 1.03 % 1.19 %HFI loans

Allowance forcredit losses to 0.80 0.88 0.97 1.17 1.37 funded HFI loans

Allowance for loanlosses to 316 242 218 242 212 nonaccrual HFIloans

Allowance forcredit losses to 357 274 246 274 242 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 $(1.5) million, resulting in an ending allowance for credit losses on investment securities of $4.5 million.

(2)

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

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

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

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

Sep 30, 2021

Jun 30, 2021

Mar 31, 2021

Dec 31, 2020

Sep 30, 2020

(in millions)

Nonaccrual loans

$

78.1

$

96.3

$

113.6

$

115.2

$

146.5

Nonaccrual loans to funded HFI loans

0.22

%

0.32

%

0.40

%

0.43

%

0.56

%

Repossessed assets

$

11.5

$

3.9

$

4.2

$

1.4

$

8.6

Nonaccrual loans and repossessed assets to total assets

0.17

%

0.20

%

0.27

%

0.32

%

0.47

%

Loans past due 90 days, still accruing

$

-

$

-

$

-

$

-

$

28.1

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

-

%

-

%

-

%

-

%

0.11

%

Loans past due 30 to 89 days, still accruing

$

23.6

$

9.8

$

7.3

$

11.2

$

24.3

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

0.07

%

0.03

%

0.03

%

0.04

%

0.09

%

Special mention loans

$

364.5

$

404.8

$

474.2

$

451.1

$

476.8

Special mention loans to funded HFI loans

1.05

%

1.35

%

1.65

%

1.67

%

1.83

%

Classified loans on accrual

$

175.3

$

138.2

$

163.1

$

107.0

$

170.5

Classified loans on accrual to funded HFI loans

0.50

%

0.46

%

0.57

%

0.40

%

0.66

%

Classified assets

$

264.9

$

238.5

$

280.9

$

223.7

$

325.7

Classified assets to total assets

0.50

%

0.49

%

0.65

%

0.61

%

0.98

%

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

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

(in millions)

Nonaccrual loans $ 78.1 $ 96.3 $ 113.6 $ 115.2 $ 146.5

Nonaccrual loans to 0.22 % 0.32 % 0.40 % 0.43 % 0.56 %funded HFI loans

Repossessed assets $ 11.5 $ 3.9 $ 4.2 $ 1.4 $ 8.6

Nonaccrual loansand repossessed 0.17 % 0.20 % 0.27 % 0.32 % 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 $ 23.6 $ 9.8 $ 7.3 $ 11.2 $ 24.3 accruing

Loans past due 30to 89 days, still 0.07 % 0.03 % 0.03 % 0.04 % 0.09 %accruing to fundedHFI loans



Special mention $ 364.5 $ 404.8 $ 474.2 $ 451.1 $ 476.8 loans

Special mentionloans to funded HFI 1.05 % 1.35 % 1.65 % 1.67 % 1.83 %loans



Classified loans on $ 175.3 $ 138.2 $ 163.1 $ 107.0 $ 170.5 accrual

Classified loans onaccrual to funded 0.50 % 0.46 % 0.57 % 0.40 % 0.66 %HFI loans

Classified assets $ 264.9 $ 238.5 $ 280.9 $ 223.7 $ 325.7

Classified assets 0.50 % 0.49 % 0.65 % 0.61 % 0.98 %to total assets

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

September 30, 2021

June 30, 2021

Average Balance

Interest

Average Yield / Cost

Average Balance

Interest

Average Yield / Cost

($ in millions)

($ in millions)

Interest earning assets

Loans held for sale

$

7,254.2

$

61.3

3.35

%

$

5,347.3

$

42.7

3.21

%

Loans held for investment:

Commercial and industrial

14,943.0

156.1

4.23

13,897.5

148.2

4.37

CRE - non-owner occupied

5,754.5

68.5

4.73

5,698.0

67.8

4.78

CRE - owner occupied

2,030.5

25.1

5.00

2,024.9

24.1

4.88

Construction and land development

2,862.7

40.6

5.63

2,791.7

39.9

5.73

Residential real estate

5,906.7

46.0

3.09

3,748.0

30.7

3.29

Consumer

43.6

0.4

4.18

34.1

0.4

4.52

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

31,541.0

336.7

4.28

28,194.2

311.1

4.48

Securities:

Securities - taxable

5,521.4

25.6

1.84

5,629.7

26.0

1.85

Securities - tax-exempt

2,223.3

17.9

4.00

2,165.8

17.5

4.07

Total securities (1)

7,744.7

43.5

2.46

7,795.5

43.5

2.47

Cash and other

1,882.9

1.3

0.27

1,911.3

1.2

0.25

Total interest earning assets

48,422.8

442.8

3.70

43,248.3

398.5

3.77

Non-interest earning assets

Cash and due from banks

291.1

457.7

Allowance for credit losses

(242.1)

(257.3)

Bank owned life insurance

178.6

177.6

Other assets

2,683.7

4,518.4

Total assets

$

51,334.1

$

48,144.7

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing transaction accounts

$

4,786.5

$

1.4

0.12

%

$

4,370.1

$

1.5

0.14

%

Savings and money market

16,833.0

8.9

0.21

15,168.1

8.0

0.21

Certificates of deposit

1,902.2

2.0

0.41

1,736.3

2.1

0.49

Total interest-bearing deposits

23,521.7

12.3

0.21

21,274.5

11.6

0.22

Short-term borrowings

417.9

1.1

1.07

1,505.7

4.5

1.21

Long-term debt

557.9

8.2

5.79

353.1

4.7

5.30

Qualifying debt

1,076.5

10.8

3.98

701.2

7.2

4.12

Total interest-bearing liabilities

25,574.0

32.4

0.50

23,834.5

28.0

0.47

Interest cost of funding earning assets

0.27

0.26

Non-interest-bearing liabilities

Non-interest-bearing demand deposits

20,731.6

18,384.8

Other liabilities

855.3

2,140.4

Stockholders' equity

4,173.2

3,785.0

Total liabilities and stockholders' equity

$

51,334.1

$

48,144.7

Net interest income and margin (4)

$

410.4

3.43

%

$

370.5

3.51

%

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

September 30, 2021 June 30, 2021

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

($ in millions) ($ in millions)

Interest earning assets

Loans held for sale $ 7,254.2 $ 61.3 3.35 % $ 5,347.3 $ 42.7 3.21 %

Loans held for investment:

Commercial and 14,943.0 156.1 4.23 13,897.5 148.2 4.37 industrial

CRE - non-owner 5,754.5 68.5 4.73 5,698.0 67.8 4.78 occupied

CRE - owner occupied 2,030.5 25.1 5.00 2,024.9 24.1 4.88

Construction and 2,862.7 40.6 5.63 2,791.7 39.9 5.73 land development

Residential real 5,906.7 46.0 3.09 3,748.0 30.7 3.29 estate

Consumer 43.6 0.4 4.18 34.1 0.4 4.52

Total HFI loans (1), 31,541.0 336.7 4.28 28,194.2 311.1 4.48 (2), (3)

Securities:

Securities - taxable 5,521.4 25.6 1.84 5,629.7 26.0 1.85

Securities - 2,223.3 17.9 4.00 2,165.8 17.5 4.07 tax-exempt

Total securities (1) 7,744.7 43.5 2.46 7,795.5 43.5 2.47

Cash and other 1,882.9 1.3 0.27 1,911.3 1.2 0.25

Total interest 48,422.8 442.8 3.70 43,248.3 398.5 3.77 earning assets

Non-interest earning assets

Cash and due from 291.1 457.7 banks

Allowance for credit (242.1) (257.3) losses

Bank owned life 178.6 177.6 insurance

Other assets 2,683.7 4,518.4

Total assets $ 51,334.1 $ 48,144.7

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 4,786.5 $ 1.4 0.12 % $ 4,370.1 $ 1.5 0.14 %transaction accounts

Savings and money 16,833.0 8.9 0.21 15,168.1 8.0 0.21 market

Certificates of 1,902.2 2.0 0.41 1,736.3 2.1 0.49 deposit

Totalinterest-bearing 23,521.7 12.3 0.21 21,274.5 11.6 0.22 deposits

Short-term 417.9 1.1 1.07 1,505.7 4.5 1.21 borrowings

Long-term debt 557.9 8.2 5.79 353.1 4.7 5.30

Qualifying debt 1,076.5 10.8 3.98 701.2 7.2 4.12

Totalinterest-bearing 25,574.0 32.4 0.50 23,834.5 28.0 0.47 liabilities

Interest cost of funding earning 0.27 0.26 assets

Non-interest-bearing liabilities

Non-interest-bearing 20,731.6 18,384.8 demand deposits

Other liabilities 855.3 2,140.4

Stockholders' equity 4,173.2 3,785.0

Total liabilitiesand stockholders' $ 51,334.1 $ 48,144.7 equity

Net interest income $ 410.4 3.43 % $ 370.5 3.51 %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 for the three months ended September 30, 2021 and June 30, 2021.

(2)

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

(3)

Includes non-accrual loans.

(4)

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

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

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

(3) Includes non-accrual loans.

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

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

September 30, 2021

September 30, 2020

Average Balance

Interest

Average Yield / Cost

Average Balance

Interest

Average Yield / Cost

($ in millions)

($ in millions)

Interest earning assets

Loans held for sale

$

7,254.2

$

61.3

3.35

%

$

20.3

$

-

-

%

Loans held for investment:

Commercial and industrial

14,943.0

156.1

4.23

12,687.9

130.0

4.17

CRE - non-owner-occupied

5,754.5

68.5

4.73

5,393.1

63.8

4.72

CRE - owner-occupied

2,030.5

25.1

5.00

2,232.7

26.6

4.85

Construction and land development

2,862.7

40.6

5.63

2,209.3

32.3

5.83

Residential real estate

5,906.7

46.0

3.09

2,396.0

23.4

3.88

Consumer

43.6

0.4

4.18

38.5

0.5

4.88

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

31,541.0

336.7

4.28

24,957.5

276.6

4.47

Securities:

Securities - taxable

5,521.4

25.6

1.84

2,811.6

14.8

2.09

Securities - tax-exempt

2,223.3

17.9

4.00

1,556.4

12.6

4.07

Total securities (1)

7,744.7

43.5

2.46

4,368.0

27.4

2.79

Other

1,882.9

1.3

0.27

1,926.4

0.8

0.17

Total interest earning assets

48,422.8

442.8

3.70

31,272.2

304.8

3.97

Non-interest earning assets

Cash and due from banks

291.1

163.8

Allowance for credit losses

(242.1)

(325.0)

Bank owned life insurance

178.6

175.0

Other assets

2,683.7

1,237.4

Total assets

$

51,334.1

$

32,523.4

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing transaction accounts

$

4,786.5

$

1.4

0.12

%

$

3,636.3

$

1.4

0.16

%

Savings and money market accounts

16,833.0

8.9

0.21

10,170.1

5.7

0.22

Certificates of deposit

1,902.2

2.0

0.41

1,845.5

5.1

1.10

Total interest-bearing deposits

23,521.7

12.3

0.21

15,651.9

12.2

0.31

Short-term borrowings

417.9

1.1

1.07

36.0

-

0.20

Long-term debt

557.9

8.2

5.79

-

-

-

Qualifying debt

1,076.5

10.8

3.98

616.2

7.9

5.08

Total interest-bearing liabilities

25,574.0

32.4

0.50

16,304.1

20.1

0.49

Interest cost of funding earning assets

0.27

0.26

Non-interest-bearing liabilities

Non-interest-bearing demand deposits

20,731.6

12,422.2

Other liabilities

855.3

617.0

Stockholders' equity

4,173.2

3,180.1

Total liabilities and stockholders' equity

$

51,334.1

$

32,523.4

Net interest income and margin (4)

$

410.4

3.43

%

$

284.7

3.71

%

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

September 30, 2021 September 30, 2020

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

($ in millions) ($ in millions)

Interest earning assets

Loans held for sale $ 7,254.2 $ 61.3 3.35 % $ 20.3 $ - - %

Loans held for investment:

Commercial and 14,943.0 156.1 4.23 12,687.9 130.0 4.17 industrial

CRE - 5,754.5 68.5 4.73 5,393.1 63.8 4.72 non-owner-occupied

CRE - owner-occupied 2,030.5 25.1 5.00 2,232.7 26.6 4.85

Construction and 2,862.7 40.6 5.63 2,209.3 32.3 5.83 land development

Residential real 5,906.7 46.0 3.09 2,396.0 23.4 3.88 estate

Consumer 43.6 0.4 4.18 38.5 0.5 4.88

Total HFI loans (1), 31,541.0 336.7 4.28 24,957.5 276.6 4.47 (2), (3)

Securities:

Securities - taxable 5,521.4 25.6 1.84 2,811.6 14.8 2.09

Securities - 2,223.3 17.9 4.00 1,556.4 12.6 4.07 tax-exempt

Total securities (1) 7,744.7 43.5 2.46 4,368.0 27.4 2.79

Other 1,882.9 1.3 0.27 1,926.4 0.8 0.17

Total interest 48,422.8 442.8 3.70 31,272.2 304.8 3.97 earning assets

Non-interest earning assets

Cash and due from 291.1 163.8 banks

Allowance for credit (242.1) (325.0) losses

Bank owned life 178.6 175.0 insurance

Other assets 2,683.7 1,237.4

Total assets $ 51,334.1 $ 32,523.4

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 4,786.5 $ 1.4 0.12 % $ 3,636.3 $ 1.4 0.16 %transaction accounts

Savings and money 16,833.0 8.9 0.21 10,170.1 5.7 0.22 market accounts

Certificates of 1,902.2 2.0 0.41 1,845.5 5.1 1.10 deposit

Totalinterest-bearing 23,521.7 12.3 0.21 15,651.9 12.2 0.31 deposits

Short-term 417.9 1.1 1.07 36.0 - 0.20 borrowings

Long-term debt 557.9 8.2 5.79 - - -

Qualifying debt 1,076.5 10.8 3.98 616.2 7.9 5.08

Totalinterest-bearing 25,574.0 32.4 0.50 16,304.1 20.1 0.49 liabilities

Interest cost of funding earning 0.27 0.26 assets

Non-interest-bearing liabilities

Non-interest-bearing 20,731.6 12,422.2 demand deposits

Other liabilities 855.3 617.0

Stockholders' equity 4,173.2 3,180.1

Total liabilitiesand stockholders' $ 51,334.1 $ 32,523.4 equity

Net interest income $ 410.4 3.43 % $ 284.7 3.71 %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 $7.2 million for the three months ended September 30, 2021 and 2020, respectively.

(2)

Included in the yield computation are net loan fees of $30.4 million and $18.2 million for the three months ended September 30, 2021 and 2020, respectively.

(3)

Includes non-accrual loans.

(4)

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

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

Included in the yield computation are net loan fees of $30.4 million and(2) $18.2 million for the three months ended September 30, 2021 and 2020, respectively.

(3) Includes non-accrual loans.

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

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Nine Months Ended

September 30, 2021

September 30, 2020

Average Balance

Interest

Average Yield / Cost

Average Balance

Interest

Average Yield / Cost

($ in millions)

($ in millions)

Interest earning assets

Loans held for sale

$

4,234.6

$

104.1

3.29

%

$

21.3

$

0.3

2.04

%

Loans held for investment:

Commercial and industrial

14,267.6

455.3

4.36

11,556.5

396.6

4.69

CRE - non-owner occupied

5,701.1

201.3

4.73

5,325.6

198.3

4.99

CRE - owner occupied

2,049.7

73.5

4.91

2,262.4

83.4

5.02

Construction and land development

2,714.5

116.1

5.72

2,115.0

95.5

6.05

Residential real estate

4,066.6

98.6

3.24

2,294.9

67.1

3.91

Consumer

37.4

1.3

4.65

49.2

1.9

5.22

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

28,836.9

946.1

4.44

23,603.6

842.8

4.83

Securities:

Securities - taxable

5,231.1

70.2

1.79

2,826.0

48.3

2.28

Securities - tax-exempt

2,124.2

50.8

4.02

1,376.6

34.7

4.25

Total securities (1)

7,355.3

121.0

2.44

4,202.6

83.0

2.93

Other

3,204.8

4.2

0.17

1,136.2

4.1

0.49

Total interest earning assets

43,631.6

1,175.4

3.68

28,963.7

930.2

4.39

Non-interest earning assets

Cash and due from banks

306.2

173.9

Allowance for credit losses

(262.7)

(263.2)

Bank owned life insurance

177.6

178.7

Other assets

2,392.4

1,206.1

Total assets

$

46,245.1

$

30,259.2

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing transaction accounts

$

4,357.2

$

4.2

0.13

%

$

3,410.9

$

7.5

0.29

%

Savings and money market accounts

15,342.3

24.0

0.21

9,546.3

28.9

0.40

Certificates of deposit

1,774.0

6.5

0.49

2,113.0

23.3

1.47

Total interest-bearing deposits

21,473.5

34.7

0.22

15,070.2

59.7

0.53

Short-term borrowings

663.6

5.8

1.16

150.1

0.5

0.51

Long-term debt

308.6

12.8

5.55

-

-

-

Qualifying debt

776.7

23.9

4.12

500.5

17.9

4.76

Total interest-bearing liabilities

23,222.4

77.2

0.44

15,720.8

78.1

0.66

Interest cost of funding earning assets

0.24

0.35

Non-interest-bearing liabilities

Non-interest-bearing demand deposits

18,380.5

10,813.2

Other liabilities

811.9

622.9

Stockholders' equity

3,830.3

3,102.3

Total liabilities and stockholders' equity

$

46,245.1

$

30,259.2

Net interest income and margin (4)

$

1,098.2

3.44

%

$

852.1

4.03

%

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Nine Months Ended

September 30, 2021 September 30, 2020

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

($ in millions) ($ in millions)

Interest earning assets

Loans held for sale $ 4,234.6 $ 104.1 3.29 % $ 21.3 $ 0.3 2.04 %

Loans held for investment:

Commercial and 14,267.6 455.3 4.36 11,556.5 396.6 4.69 industrial

CRE - non-owner 5,701.1 201.3 4.73 5,325.6 198.3 4.99 occupied

CRE - owner occupied 2,049.7 73.5 4.91 2,262.4 83.4 5.02

Construction and 2,714.5 116.1 5.72 2,115.0 95.5 6.05 land development

Residential real 4,066.6 98.6 3.24 2,294.9 67.1 3.91 estate

Consumer 37.4 1.3 4.65 49.2 1.9 5.22

Total HFI loans (1), 28,836.9 946.1 4.44 23,603.6 842.8 4.83 (2), (3)

Securities:

Securities - taxable 5,231.1 70.2 1.79 2,826.0 48.3 2.28

Securities - 2,124.2 50.8 4.02 1,376.6 34.7 4.25 tax-exempt

Total securities (1) 7,355.3 121.0 2.44 4,202.6 83.0 2.93

Other 3,204.8 4.2 0.17 1,136.2 4.1 0.49

Total interest 43,631.6 1,175.4 3.68 28,963.7 930.2 4.39 earning assets

Non-interest earning assets

Cash and due from 306.2 173.9 banks

Allowance for credit (262.7) (263.2) losses

Bank owned life 177.6 178.7 insurance

Other assets 2,392.4 1,206.1

Total assets $ 46,245.1 $ 30,259.2

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing $ 4,357.2 $ 4.2 0.13 % $ 3,410.9 $ 7.5 0.29 %transaction accounts

Savings and money 15,342.3 24.0 0.21 9,546.3 28.9 0.40 market accounts

Certificates of 1,774.0 6.5 0.49 2,113.0 23.3 1.47 deposit

Totalinterest-bearing 21,473.5 34.7 0.22 15,070.2 59.7 0.53 deposits

Short-term 663.6 5.8 1.16 150.1 0.5 0.51 borrowings

Long-term debt 308.6 12.8 5.55 - - -

Qualifying debt 776.7 23.9 4.12 500.5 17.9 4.76

Totalinterest-bearing 23,222.4 77.2 0.44 15,720.8 78.1 0.66 liabilities

Interest cost of funding earning 0.24 0.35 assets

Non-interest-bearing liabilities

Non-interest-bearing 18,380.5 10,813.2 demand deposits

Other liabilities 811.9 622.9

Stockholders' equity 3,830.3 3,102.3

Total liabilitiesand stockholders' $ 46,245.1 $ 30,259.2 equity

Net interest income $ 1,098.2 3.44 % $ 852.1 4.03 %and margin (4)

(1)

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

(2)

Included in the yield computation are net loan fees of $95.9 million and $61.5 million for the nine months ended September 30, 2021 and 2020, respectively.

(3)

Includes non-accrual loans.

(4)

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

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

Included in the yield computation are net loan fees of $95.9 million and(2) $61.5 million for the nine months ended September 30, 2021 and 2020, respectively.

(3) Includes non-accrual loans.

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

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited

Balance Sheet:

Consolidated Company

Commercial

Consumer Related

Corporate & Other

At September 30, 2021:

(dollars in millions)

Assets:

Cash, cash equivalents, and investment securities

$

8,613.8

$

11.9

$

70.8

$

8,531.1

Loans held for sale

6,534.3

-

6,534.3

-

Loans, net of deferred loan fees and costs

34,801.9

22,823.9

11,978.0

-

Less: allowance for credit losses

(246.9)

(227.8)

(19.1)

-

Total loans

34,555.0

22,596.1

11,958.9

-

Other assets acquired through foreclosure, net

11.5

11.5

-

-

Goodwill and other intangible assets, net

608.4

295.0

313.4

-

Other assets

2,452.1

249.5

1,086.0

1,116.6

Total assets

$

52,775.1

$

23,164.0

$

19,963.4

$

9,647.7

Liabilities:

Deposits

$

45,282.6

$

28,409.9

$

15,751.2

$

1,121.5

Borrowings and qualifying debt

2,052.3

-

348.1

1,704.2

Other liabilities

926.2

255.9

148.1

522.2

Total liabilities

48,261.1

28,665.8

16,247.4

3,347.9

Allocated equity:

4,514.0

2,369.2

1,483.4

661.4

Total liabilities and stockholders' equity

$

52,775.1

$

31,035.0

$

17,730.8

$

4,009.3

Excess funds provided (used)

-

7,871.0

(2,232.6)

(5,638.4)

No. of offices

54

46

7

1

No. of full-time equivalent employees

3,061

590

1,186

1,285

Income Statement:

Three Months Ended September 30, 2021:

(in millions)

Net interest income

$

410.4

$

304.4

$

170.3

$

(64.3)

Provision for (recovery of) credit losses

12.3

19.3

(5.5)

(1.5)

Net interest income (expense) after provision for credit losses

398.1

285.1

175.8

(62.8)

Non-interest income

138.1

15.1

123.8

(0.8)

Non-interest expense

233.8

107.0

123.6

3.2

Income (loss) before income taxes

302.4

193.2

176.0

(66.8)

Income tax expense (benefit)

65.5

46.5

42.6

(23.6)

Net income (loss) available to common stockholders

$

236.9

$

146.7

$

133.4

$

(43.2)

Nine Months Ended September 30, 2021:

(in millions)

Net interest income

$

1,098.2

$

848.8

$

417.8

$

(168.4)

(Recovery of) provision for credit losses

(34.6)

(35.5)

3.4

(2.5)

Net interest income (expense) after provision for credit losses

1,132.8

884.3

414.4

(165.9)

Non-interest income

293.8

48.2

241.1

4.5

Non-interest expense

613.6

309.4

294.4

9.8

Income (loss) before income taxes

813.0

623.1

361.1

(171.2)

Income tax expense (benefit)

159.8

149.8

87.5

(77.5)

Net income (loss) available to common stockholders

$

653.2

$

473.3

$

273.6

$

(93.7)

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited



Balance Sheet:

Consolidated Commercial Consumer Corporate & Company Related Other

At September 30, (dollars in millions)2021:

Assets:

Cash, cashequivalents, and $ 8,613.8 $ 11.9 $ 70.8 $ 8,531.1 investmentsecurities

Loans held for sale 6,534.3 - 6,534.3 -

Loans, net ofdeferred loan fees 34,801.9 22,823.9 11,978.0 - and costs

Less: allowance for (246.9) (227.8) (19.1) - credit losses

Total loans 34,555.0 22,596.1 11,958.9 -

Other assetsacquired through 11.5 11.5 - - foreclosure, net

Goodwill and otherintangible assets, 608.4 295.0 313.4 - net

Other assets 2,452.1 249.5 1,086.0 1,116.6

Total assets $ 52,775.1 $ 23,164.0 $ 19,963.4 $ 9,647.7

Liabilities:

Deposits $ 45,282.6 $ 28,409.9 $ 15,751.2 $ 1,121.5

Borrowings and 2,052.3 - 348.1 1,704.2 qualifying debt

Other liabilities 926.2 255.9 148.1 522.2

Total liabilities 48,261.1 28,665.8 16,247.4 3,347.9

Allocated equity: 4,514.0 2,369.2 1,483.4 661.4

Total liabilitiesand stockholders' $ 52,775.1 $ 31,035.0 $ 17,730.8 $ 4,009.3 equity

Excess funds - 7,871.0 (2,232.6) (5,638.4) provided (used)



No. of offices 54 46 7 1

No. of full-time 3,061 590 1,186 1,285 equivalent employees



Income Statement:



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

Net interest income $ 410.4 $ 304.4 $ 170.3 $ (64.3)

Provision for(recovery of) credit 12.3 19.3 (5.5) (1.5) losses

Net interest income(expense) after 398.1 285.1 175.8 (62.8) provision for creditlosses

Non-interest income 138.1 15.1 123.8 (0.8)

Non-interest expense 233.8 107.0 123.6 3.2

Income (loss) before 302.4 193.2 176.0 (66.8) income taxes

Income tax expense 65.5 46.5 42.6 (23.6) (benefit)

Net income (loss)available to common $ 236.9 $ 146.7 $ 133.4 $ (43.2) stockholders



Nine Months Ended (in millions)September 30, 2021:

Net interest income $ 1,098.2 $ 848.8 $ 417.8 $ (168.4)

(Recovery of)provision for credit (34.6) (35.5) 3.4 (2.5) losses

Net interest income(expense) after 1,132.8 884.3 414.4 (165.9) provision for creditlosses

Non-interest income 293.8 48.2 241.1 4.5

Non-interest expense 613.6 309.4 294.4 9.8

Income (loss) before 813.0 623.1 361.1 (171.2) income taxes

Income tax expense 159.8 149.8 87.5 (77.5) (benefit)

Net income (loss)available to common $ 653.2 $ 473.3 $ 273.6 $ (93.7) stockholders

Western Alliance Bancorporation and Subsidiaries

Operating Segment Results

Unaudited

Balance Sheet:

Consolidated Company

Commercial

Consumer Related

Corporate

At December 31, 2020:

(dollars in millions)

Assets:

Cash, cash equivalents, and investment securities

$

8,176.5

$

12.0

$

45.6

$

8,118.9

Loans, net of deferred loan fees and costs

27,053.0

20,245.8

6,798.2

9.0

Less: allowance for loan losses

(278.9)

(263.4)

(15.4)

(0.1)

Total loans

26,774.1

19,982.4

6,782.8

8.9

Other assets acquired through foreclosure, net

1.4

1.4

-

-

Goodwill and other intangible assets, net

298.5

296.1

2.4

-

Other assets

1,210.5

257.0

96.6

856.9

Total assets

$

36,461.0

$

20,548.9

$

6,927.4

$

8,984.7

Liabilities:

Deposits

$

31,930.5

$

21,448.0

$

9,936.8

$

545.7

Borrowings and qualifying debt

553.7

-

-

553.7

Other liabilities

563.3

170.4

3.3

389.6

Total liabilities

33,047.5

21,618.4

9,940.1

1,489.0

Allocated equity:

3,413.5

1,992.2

579.1

842.2

Total liabilities and stockholders' equity

$

36,461.0

$

23,610.6

$

10,519.2

$

2,331.2

Excess funds provided (used)

-

3,061.7

3,591.8

(6,653.5)

No. of offices

49

45

3

1

No. of full-time equivalent employees

1,915

581

156

1,178

Income Statement:

Three Months Ended September 30, 2020:

(in millions)

Net interest income

$

284.7

$

245.4

$

80.8

$

(41.5)

Provision for (recovery of) credit losses

14.6

20.1

(3.7)

(1.8)

Net interest income (expense) after provision for credit losses

270.1

225.3

84.5

(39.7)

Non-interest income

20.6

13.3

0.6

6.7

Non-interest expense

124.1

77.3

21.2

25.6

Income (loss) before income taxes

166.6

161.3

63.9

(58.6)

Income tax expense (benefit)

30.8

38.9

15.2

(23.3)

Net income (loss)

$

135.8

$

122.4

$

48.7

$

(35.3)

Nine Months Ended September 30, 2020:

(in millions)

Net interest income

$

852.1

$

728.8

$

208.9

$

(85.6)

Provision for credit losses

157.8

165.9

(11.2)

3.1

Net interest income (expense) after provision for credit losses

694.3

562.9

220.1

(88.7)

Non-interest income

47.0

34.3

1.4

11.3

Non-interest expense

359.4

230.9

68.2

60.3

Income (loss) before income taxes

381.9

366.3

153.3

(137.7)

Income tax expense (benefit)

68.9

87.8

36.3

(55.2)

Net income (loss)

$

313.0

$

278.5

$

117.0

$

(82.5)

Western Alliance Bancorporation and Subsidiaries

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)September 30, 2020:

Net interest income $ 284.7 $ 245.4 $ 80.8 $ (41.5)

Provision for(recovery of) credit 14.6 20.1 (3.7) (1.8) losses

Net interest income(expense) after 270.1 225.3 84.5 (39.7) provision for creditlosses

Non-interest income 20.6 13.3 0.6 6.7

Non-interest expense 124.1 77.3 21.2 25.6

Income (loss) before 166.6 161.3 63.9 (58.6) income taxes

Income tax expense 30.8 38.9 15.2 (23.3) (benefit)

Net income (loss) $ 135.8 $ 122.4 $ 48.7 $ (35.3)



Nine Months Ended (in millions)September 30, 2020:

Net interest income $ 852.1 $ 728.8 $ 208.9 $ (85.6)

Provision for credit 157.8 165.9 (11.2) 3.1 losses

Net interest income(expense) after 694.3 562.9 220.1 (88.7) provision for creditlosses

Non-interest income 47.0 34.3 1.4 11.3

Non-interest expense 359.4 230.9 68.2 60.3

Income (loss) before 381.9 366.3 153.3 (137.7) income taxes

Income tax expense 68.9 87.8 36.3 (55.2) (benefit)

Net income (loss) $ 313.0 $ 278.5 $ 117.0 $ (82.5)

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter:Three Months Ended

9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

(in millions)

Net interest income

$

410.4

$

370.5

$

317.3

$

314.8

$

284.7

Total non-interest income

138.1

136.0

19.7

23.8

20.6

Net revenue

$

548.5

$

506.5

$

337.0

$

338.6

$

305.3

Total non-interest expense

233.8

244.8

135.0

132.2

124.1

Less: Acquisition and restructure expenses

2.4

15.7

0.4

-

-

Total non-interest expense, adjusted

$

231.4

$

229.1

$

134.6

$

132.2

$

124.1

Pre-provision net revenue (1)

$

317.1

$

277.4

$

202.4

$

206.4

$

181.2

Less:

Acquisition and restructure expenses

2.4

15.7

0.4

-

-

Provision for (recovery of) credit losses

12.3

(14.5)

(32.4)

(34.2)

14.6

Income tax expense

65.5

52.4

41.9

47.0

30.8

Net income

$

236.9

$

223.8

$

192.5

$

193.6

$

135.8

Efficiency Ratio by Quarter:

Total non-interest expense, adjusted

$

231.4

$

229.1

$

134.6

$

132.2

$

124.1

Divided by:

Total net interest income

410.4

370.5

317.3

314.8

284.7

Plus:

Tax equivalent interest adjustment

8.5

8.5

8.0

7.7

7.2

Total non-interest income

138.1

136.0

19.7

23.8

20.6

$

557.0

$

515.0

$

345.0

$

346.3

$

312.5

Efficiency ratio - tax equivalent basis (2)

41.5

%

44.5

%

39.0

%

38.2

%

39.7

%

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter: Three Months Ended

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

(in millions)

Net interest income $ 410.4 $ 370.5 $ 317.3 $ 314.8 $ 284.7

Total non-interest 138.1 136.0 19.7 23.8 20.6 income

Net revenue $ 548.5 $ 506.5 $ 337.0 $ 338.6 $ 305.3

Total non-interest 233.8 244.8 135.0 132.2 124.1 expense

Less: Acquisitionand restructure 2.4 15.7 0.4 - - expenses

Total non-interest $ 231.4 $ 229.1 $ 134.6 $ 132.2 $ 124.1 expense, adjusted

Pre-provision net $ 317.1 $ 277.4 $ 202.4 $ 206.4 $ 181.2 revenue (1)

Less:

Acquisition and 2.4 15.7 0.4 - - restructure expenses

Provision for(recovery of) credit 12.3 (14.5) (32.4) (34.2) 14.6 losses

Income tax expense 65.5 52.4 41.9 47.0 30.8

Net income $ 236.9 $ 223.8 $ 192.5 $ 193.6 $ 135.8

Efficiency Ratio byQuarter:

Total non-interest $ 231.4 $ 229.1 $ 134.6 $ 132.2 $ 124.1expense, adjusted

Divided by:

Total net interest 410.4 370.5 317.3 314.8 284.7income

Plus:

Tax equivalent 8.5 8.5 8.0 7.7 7.2interest adjustment

Total non-interest 138.1 136.0 19.7 23.8 20.6income

$ 557.0 $ 515.0 $ 345.0 $ 346.3 $ 312.5

Efficiency ratio -tax equivalent basis 41.5 % 44.5 % 39.0 % 38.2 % 39.7 %(2)

Tangible Common Equity:9/30/2021

6/30/2021

3/31/2021

12/31/2020

9/30/2020

(dollars and shares in millions)

Total stockholders' equity

$

4,514.0

$

4,034.5

$

3,712.7

$

3,413.5

$

3,224.0

Less:

Goodwill and intangible assets

608.4

610.7

298.0

298.5

299.0

Preferred stock

294.5

-

-

-

-

Total tangible common equity

3,611.1

3,423.8

3,414.7

3,115.0

2,925.0

Plus: deferred tax - attributed to intangible assets

1.8

1.8

1.4

1.6

1.7

Total tangible common equity, net of tax

$

3,612.9

$

3,425.6

$

3,416.1

$

3,116.6

$

2,926.7

Total assets

$

52,775.1

$

49,069.0

$

43,397.0

$

36,461.0

$

33,335.5

Less: goodwill and intangible assets, net

608.4

610.7

298.0

298.5

299.0

Tangible assets

52,166.7

48,458.3

43,099.0

36,162.5

33,036.5

Plus: deferred tax - attributed to intangible assets

1.8

1.8

1.4

1.6

1.7

Total tangible assets, net of tax

$

52,168.5

$

48,460.1

$

43,100.4

$

36,164.1

$

33,038.2

Tangible common equity ratio (3)

6.9

%

7.1

%

7.9

%

8.6

%

8.9

%

Common shares outstanding

104.2

104.2

103.4

100.8

100.8

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

$

34.67

$

32.86

$

33.02

$

30.90

$

29.03

Tangible CommonEquity: 9/30/2021 6/30/2021 3/31/2021 12/31/2020 9/30/2020

(dollars and shares in millions)

Totalstockholders' $ 4,514.0 $ 4,034.5 $ 3,712.7 $ 3,413.5 $ 3,224.0 equity

Less:

Goodwill andintangible 608.4 610.7 298.0 298.5 299.0 assets

Preferred 294.5 - - - - stock

Totaltangible 3,611.1 3,423.8 3,414.7 3,115.0 2,925.0 common equity

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

Totaltangiblecommon $ 3,612.9 $ 3,425.6 $ 3,416.1 $ 3,116.6 $ 2,926.7 equity, netof tax

Total assets $ 52,775.1 $ 49,069.0 $ 43,397.0 $ 36,461.0 $ 33,335.5

Less:goodwill and 608.4 610.7 298.0 298.5 299.0 intangibleassets, net

Tangible 52,166.7 48,458.3 43,099.0 36,162.5 33,036.5 assets

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

Totaltangible $ 52,168.5 $ 48,460.1 $ 43,100.4 $ 36,164.1 $ 33,038.2 assets, netof tax

Tangiblecommon equity 6.9 % 7.1 % 7.9 % 8.6 % 8.9 %ratio (3)

Common shares 104.2 104.2 103.4 100.8 100.8 outstanding

Tangible book value per $ 34.67 $ 32.86 $ 33.02 $ 30.90 $ 29.03share, net of tax (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/20211021006051/en/

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