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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  May 16, 2023


WESTERN ALLIANCE BANCORPORATION
(Exact name of registrant as specified in its charter)

Delaware001-3255088-0365922
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)

One E. Washington Street, Phoenix, Arizona  85004
 (Address of principal executive offices)               (Zip Code)

(602) 389-3500
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.0001 Par ValueWALNew York Stock Exchange
Depositary Shares, Each Representing a 1/400th Interest in a Share of
4.250% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A
WAL PrANew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨





ITEM 7.01. Regulation FD Disclosure.
Western Alliance Bancorporation (the “Company”) intends to discuss the information contained in the presentation attached hereto as Exhibit 99.1 and incorporated by reference herein at investor conferences throughout the second quarter of 2023. To the extent updates are made to this presentation, these updates will be made available on the Company's investor relations page of its website at www.westernalliancebancorporation.com.
The information in this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed subject to the requirements of amended Item 10 of Regulation S-K, nor shall it be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing. The furnishing of this information hereby shall not be deemed an admission as to the materiality of any such information.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
99.1 
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 WESTERN ALLIANCE BANCORPORATION
(Registrant)
 
 
/s/ Dale Gibbons
Dale Gibbons
Vice Chairman and
Chief Financial Officer
 
 
 
Date:May 16, 2023


INVESTOR UPDATE 2Q 2023


 
Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the Company’s subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the recent bank failures and any related impact on depositor behavior; risks related to the sufficiency of liquidity; the potential adverse effects of unusual and infrequently occurring events such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the war between Russia and Ukraine; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Company’s press release as of and for the quarter ended March 31, 2023. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2


 
Quarter-to-Date Financial Update 3 1 Stable Deposits –WAL’s deposit balances stabilized by March 20 and resumed growth trajectory • QTD deposit growth exceeded $2 billion as of May 12, up from $47.6 billion as of March 31 2 Balance Sheet Repositioning On Track – Imminent completion of ~50% in sales of the $6 billion of loans reclassified to HFS in 1Q23 5 Insured Deposit Strength – >79% as of May 12, up from 68% as of March 31 4 HFI Loan / Deposit Ratio Improvement – 94% as of May 12, compared to ~98% as of March 31 6 Strong Asset Quality – Supported by conservative underwriting standards & loan covenants Leading national commercial bank with unique combination of sustained profitability, dependable earnings, controlled high-quality growth, and protected by consistent asset quality standards 3 Enhanced Capital Base – Q2 asset sales have boosted CET1 to 9.7% & TCE/TA to 6.7% as of April 30 (as of May 12, 2023)


 
Priorities and Goals 4 1 Reduce reliance on non-core funding – Lower FHLB borrowings to more normal level & repay BTFP 2 Loan/Deposit ratio to the mid-80s through increased focus on cultivating full banking relationships 3 Maintain high insured deposit mix through reciprocal products 6 Organic balance sheet repositioning & surgical asset sales poised to lift CET1 above 10% by June 30 5 Prioritize multi-faceted, integrated customer relationships to foster increased deposit stickiness 7 High-touch customer relationships supported by ongoing education on WAL expertise & strength Safe and Sound Growth, Emphasizing Capital, Liquidity, and Holistic Customer Relationships 4 Accelerate HQLA growth to further enhance liquidity strength 8 Augment deposit diversification from Corporate Trust and indirect consumer channel


 
Note: Financial data as of March 31, 2023 1) Market data as of May 15, 2023. 2) Refer to slide 2 for further discussion of Non-GAAP financial measures. 3) Nonperforming assets includes nonaccrual loans and repossessed assets. 5 Western Alliance Bancorporation Overview Summary The Bank for All Seasons A national banking platform of specialized financial services paired with attractive regional markets provides complementary, diversified revenue streams and high operating leverage to produce industry-leading financial results Serving a wide range of commercial and consumer related clients nationwide, from corporate and small business to public and non-profit borrowers Diversified business model provides flexibility and responsiveness to changing winds and market conditions to provide long-term superior risk- adjusted returns NYSE WAL Headquarters Phoenix, AZ IPO 2005 Market Cap1 $3.4bn Offices 57 Employees 3,300+ NPAs/Assets3 0.17% LTM NCOs/ Avg. Loans 0.05% Total Assets $71.0bn LTM PPNR Growth 18.4% LTM ROTCE, adjusted2 25.2% TBV per Share 5-Year CAGR 16.1% S&P GLOBAL MI #2 Best-Performing of the 50 Largest Public U.S. Banks, 2021 BANK DIRECTOR #1 Best Emerging Regional Bank & Top 10 U.S. Banks for Growth Strategy One of Forbes’ “America’s Best Banks” Year After Year FORBES INSTITUTIONAL INVESTOR MAG 2022 All-America Executive Team Best CEO & Best CFO #1 Top-Performing Large Bank with Assets $50B and Above, 2022 AMERICAN BANKER


 
1st Quarter 2023 | Financial Highlights Earnings & Profitability 1Q23 4Q22 Q1-22 EPS / Adjusted1 $1.28 / $2.30 $2.67 $2.22 Net Income / Adjusted1 $142.2 / $251.9 $293.0 $240.1 Net Revenue / Adjusted1 $551.9 / $712.2 $701.2 $555.8 Pre-Provision Net Revenue1 $351.6 $367.9 $306.9 Net Interest Margin 3.79% 3.98% 3.32% Efficiency Ratio / Adjusted1 62.1% / 43.2% 46.9% 44.1% ROAA / Adjusted1 0.81% / 1.43% 1.67% 1.64% ROTCE, Adjusted1 21.9% 27.7% 23.9% Balance Sheet & Capital Total Loans $46,435 $51,862 $41,119 Total Deposits $47,587 $53,644 $52,160 CET1 Ratio 9.4% 9.3% 9.0% TCE Ratio1 6.5% 6.5% 6.7% Tangible Book Value per Share1 $41.56 $40.25 $37.13 Asset Quality Provision for Credit losses $19.4 $3.1 $9.0 Net Loan Charge-Offs $6.0 $1.8 $0.2 Net Loan Charge-Offs /Avg. Loans 0.05% 0.01% 0.00% Total Loan ACL/Funded HFI Loans3 0.75% 0.69% 0.73% NPAs2/Total Assets 0.17% 0.14% 0.17% Net Income $142.2 million $251.9, adjusted EPS $1.28 $2.30, adjusted PPNR1 Q1: $351.6 million 15% YoY ROTCE, adjusted1 21.9% Loan Growth Q1: $(5.4) billion 13% YoY Deposit Growth Q1: $(6.1) billion (9)% YoY Tangible Book Value PER SHARE1 $41.56 12% YoY NPAs2/ Total Assets 0.17% 6 Dollars in millions, except EPS 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Nonperforming assets includes nonaccrual loans and repossessed assets. 3) Ratio includes an allowance for credit losses of $20.8 million as of March 31, 2023 related to a pool of loans covered under 4 separate credit linked notes. Highlights


 
7 WAL actively adapts business and capital allocation in response to changing external environment Note: Illustrative as business objectives are not mutually exclusive and image does not represent full suite of WAL divisions, products and services. Capital Call Lines Residential Mortgages Geographic Diversification Growth Trajectory Risk- Adjusted Yields Operating Leverage Risk Management Capital Allocation Lot Banking Hotel Franchise Finance HOA Corporate Finance Municipal & Nonprofit National Business Lines Regional Banking Divisions Organic Growth Dividends M&A Share Repurchases Ample growth potential Deep segment & product expertise supports cyclical business lines Highly efficient lending & deposit platforms Pristine asset quality Superior total shareholder returns Growth trajectory maintained with prudent credit risk management CRE Technology & Innovation Warehouse Lending Mortgage Banking Diversified Business Model Provides Flexibility Across Economic Cycles


 
Balance Sheet Repositioning Plan 8 Balance sheet repositioning, which included surgical sale of assets and Loan HFS reclassifications, resulted in net non- operating charges of $110 million, but will have an immediate accretive impact to regulatory capital and allow us to prioritize core client relationships with holistic lending, deposit and treasury management needs Co m pl et ed (1 Q 23 ) HFI Reclassification Select Asset Dispositions Co nt ra ct ed (2 Q 23 ) Surgically selected loan reclassifications from Held-For-Investment to Held- For-Sale portfolio 21 B A 1Q23 P&L Impact $110mm Net Non-Operating Loss Breakdown ($mm) Marks for future contracted and planned loan sales are already included in Q1 HFI reclassification fair value adjustment • Reclassified $6.0 billion of HFI loans to HFS at an average mark of ~2%  One-time Loan FV Charge: $123mm (After-Tax: $92mm)  CET1 Impact: -12 bps • Prioritizing core client relationships with holistic lending, deposit, and treasury management needs − Non-Core C&I − Syndicated Shared National Credits (SNCs) − Capital Call & Subscription Lines (EFR) − Select Residential RE − Early Buyout Resi. (EBOs) − Equipment Finance leases − Non-Core CRE Significant progress in executing surgical asset sales to expeditiously improve capital and liquidity, and reduce wholesale borrowings • ~$1.74 billion asset sales completed in Q1 1. EFR & SNC loan sales 2. Other loan sales 3. MSR sales 4. Select security sales (Primarily CLOs) ~$920mm loan sales $360mm MSR sales $460mm securities sales • Unwind of Inefficient CLNs • $3.0bn loans contracted for sale in Q2 − ~$2.3bn in loan dispositions QTD • Unwind of inefficient CLNs 1. MWL $242mm 2. EFR $25mm − $275mm EFR CLN repaid QTD +17 bps CET1 Benefit +33 bps Remaining (2023)C • ~$3.0bn HFS loans remaining $92.2 $12.7 -$0.5 $5.2Other Loans Sold HFI Reclass Sec Sold & Debt Exting Note: Balance sheet information as of 3/31/23


 
9 • Strong organic capital generation drove net CET1 increase in 1Q23 and allowed us to raise liquidity through other B/S actions • HFS reclassification in 1Q23 optimizes RWA and positions for stronger capital build going forward through asset sales (with a material amount under contract) • HFS loan sales provide capital benefit through RWA release • Loan marks taken on reclassified HFS loans provide confidence of expected capital benefit from planned sales • 1H23 completed and planned actions and organic capital generation accelerate attainment of >10% capital goal by 2Q23 Highlights $5.6 $4.8 $2.2 Dollars in billions, unless otherwise indicated CET1 Ratio 4Q22 HFI Reclass. to HFS Asset Sales 1Q23Organic Capital Generation Asset Sales CLN (EFR) Unwind 2Q23 Target 2Q23 Target CET1 >10% CLN (WH) Unwind B/S Growth 0.51% -0.18% HFS Loan Sales (Planned) & RWA Release Organic Capital Generation + B/S Growth Net 33 bps increase Net 17 bps increase Net 2 bps increase Locked-in CET1 Build 9.71% Additional 2Q23 Capital Generation 21 BA C2 2 Achieved 9.7% CET1 at 4/30 QTD Capital Update & Projected Build by June 30


 
10 • 1Q23 Adjusted ROAA of 1.43% vs. 1.67% for 4Q22 and 1.64% ROAA for 1Q22 • WAL is top decile in ROAA • 1Q23 CET1 of 9.4% and ~9.7% as of April 30th • Adj. CET1 (inclusive of AOCI and HTM unrealized marks) increased to ~8.1% in 1Q23 from ~7.9% in 4Q22 • WAL is at median for Adj. CET1 Highlights 1) 1Q23 ROAA adjusted ROAA vs. Adj. CET1 (Incl. of AOCI and HTM Unrealized Securities Marks) for Top 50 Banks by Assets CET1 Adj. for AOCI & HTM (1Q23) RO A A (1 Q 23 4 Q ua rt er A ve ra ge ) 6.50 FCNC.A JPM BAC C WFC USB TFC PNC CFG FITB MTB KEY HBAN RFCMA ZION FHN WBS WAL BPOP EWBC VLY SNV COLB WTFC CADE CFRONB BOKF PNFP SSB PACW FNB ASBUMBF PB HWC BKU CBSH FIBK UBSI OZK TCBIGBCI SFNC FULT ABCB UCBI FHB 0.50 0.70 0.90 1.10 1.30 1.50 1.70 1.90 2.10 2.30 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% 1 1 Strong Earnings & Capital Less Unrealized Sec. Marks


 
JPM BAC WFC USB TFC PNC CFG FCNC.A FITB MTB KEY HBAN RF NYCB CMA ZION FHN WBS WAL BPOP EWBC VLY SNV COLB WTFC CADE CFR ONB BOKF PNFP SSB PACW FNBASB UMBF PB HWC BKU CBSH FIBK UBSI OZK TCBI GBCI SFNC FULT ABCB UCBI FHB 45% 50% 55% 60% 65% 70% 75% 80% 85% 40%50%60%70%80%90%100% 11 • WAL prioritizes core client relationships to fulfill customers’ holistic banking needs • Controlling growth by emphasizing deposit relationships has lowered the HFI Loan/Deposit ratio from ~98% as of March 31 to 94% as of May 12 • WAL has the highest insured deposit percentage among the top-50 largest U.S. banks • WAL has successfully retained deep- rooted relationships and those for which we offer proprietary, integrated treasury management technology • Of depositors, ~85% have multiple products (deposits, TM, loans) Highlights Loan-to-Deposit Ratio In su re d De po si ts * Focused Efforts to Drive Increased Deposit Liquidity Deposit-led growth driving loan-to-deposit ratio to mid-80s 1) Insured Deposit % as of March 31, 2023, except for WAL, which is as of May 12, 2023. Deposit insurance includes direct, collateralized, pass-through, and insured networks WAL Loan-to-Deposit % uses HFI Loans Source: S&P Global Market Intelligence, 1Q23 company earnings presentations, and 1Q23 Call Reports 1 Insured Deposits vs. Loan / Deposit Ratio for Top 50 Banks by Assets


 
Specialized, High Quality Loan Portfolio 12 Highlights Diversified by product, client-type and geography emphasizing underwriting discipline 33% 9% 21% 4% 33% Residential C&D CRE, NOO CRE, OO C&I 1Q23 Loans HFI by Product Type Warehouse Lending 10% Municipal & Nonprofit 3% Tech & Innovation 5% Other C&I 13% CRE, OO 4% CRE, NOO 12%Hotel Franchise Finance 9% Residential 32% Equity Fund Resources 2% C&D 9% Other; 1% $6.8 $8.4 $11.1 $13.2 $15.1 $17.7 $21.1 $27.1 $39.1 $51.9 $46.4 5.43% 5.23% 5.18% 5.40% 5.62% 5.82% 5.83% 4.79% 4.32% 4.74% 6.28% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Loans HFI and Yields • Diverse mix of regionally-focused commercial banking divisions & nationally-oriented specialized businesses • Leverages deep segment expertise to provide specialized banking services to niche markets across the country • Segment-focused model supports superior client value and company risk management • National reach enables selective relationships with highest asset quality and profitability Dollars in billions 1Q23 Loans HFS (ex-AMH Resi) Composition 1Q23 Loans HFI by Borrower Type • Accelerated growth in NBLs and Residential has contributed to loan diversification and evolution of strategy into low-to-no-loss loan categories • ~66% of 3-year growth in low-to-no-loss categories 18% 44%6% 23% 2% 8% Other C&I Equity Fund Resources Syndications Mtg. WH CRE, NOO Residential Yields Average Spot Loans HFI 6.28% 6.45% Loans HFS N/A 7.34% HFS – AMH Resi 5.90% 6.33% Spot Rate 6.45% $46.4 billion


 
13 • A decade of business transformation has resulted in consistent relative outperformance in asset quality and credit metrics • Asset quality remained strong during height of the pandemic • Improvement / stabilization in non- accruals reflects timely identification and resolution of problem loans before realizing losses • Credit mitigation expertise is critical with a weaker macro backdrop • A quarter of the loan portfolio is credit protected, consisting of government guaranteed, Credit Linked Notes-protected, and cash secured assets2 Net Charge-Offs / Average Loans Non-Accrual Loans / Loans Note: Peers consist of 34 publicly traded banks headquartered in the U.S. with total assets between $25B and $150B as of March 31, 2023 Source: S&P Global Market Intelligence 1) MRQ is 1Q23 for WAL and some peers and 4Q22 for the remainder 2) As of March 31, 2023, CLNs cover a substantial portion of Residential ($9.5 billion) loans outstanding Classified Loans / Loans Demonstrated Conservative Credit Culture Highlights 0.93%0.70%0.74%0.82%0.70% 1.18%1.14%1.14% 1.50% 1.87% 2.99% 1.23%1.23% 1.40% 1.77% 1.39%1.37% 1.62% 2.03%2.10%2.10%2.56% MRQ2022202120202019201820172016201520142013 0.23% 0.16%0.19% 0.43% 0.27% 0.16% 0.29%0.31% 0.44% 0.81% 1.11% 0.34% 0.27% 0.33% 0.55% 0.40%0.44% 0.50% 0.74%0.73% 0.56% 0.77% MRQ2022202120202019201820172016201520142013 0.05% 0.00%0.02% 0.06% 0.02% 0.06% 0.01% 0.02% -0.06%-0.07% 0.14% 0.10% 0.06%0.06% 0.19% 0.15%0.15%0.16%0.18% 0.12% 0.13% 0.25% MRQ2022202120202019201820172016201520142013 1 1 1


 
Demonstrated Conservative Credit Culture 14 Deliberate business transformation, emphasizing underwriting specialization and diversification strategy, has produced sustained superior asset quality with reduced dispersion in realized credit losses Note: Peers consist of 34 publicly traded banks headquartered in the U.S. with total assets between $25B and $150B as of March 31, 2023 Source: S&P Global Market Intelligence 0.00% 0.30% 0.60% 0.90% 1.20% Annualized Net Charge-Offs 1Q14 - 1Q23 Max Average 5.25% Peer Group Maximum of Peers Avg of Peers Minimum of Peers Amount Bank Amount Amount Bank Average 37 bps HWC 15 bps 1 bp WAL Maximum 525 bps HWC 70 bps 13 bps WAL


 
15 • WAL remains appropriately reserved, especially when considering credit protection from Credit Linked Notes (CLNs) and historically low loss loan categories • Total Loan ACL / Funded Loans increased to 0.75% in Q1 as a result of heightened economic uncertainty • Total Loan ACL / Funded Loans less loans covered by CLNs is 0.95% • Total Loan ACL / Funded Loans less loans covered by CLNs and select no-to- low-loss loan categories (EFR, Residential, and Mortgage Warehouse) is 1.36% • > 7x historical maximum annual loss rate4 • Reserves are a multiple of average losses times portfolio duration • Estimated weighted average duration of the loan portfolio is < 4 years • Adj. total ACL covers > 20x historical average annual loss rate4 x duration Substantial Reserve Levels Highlights Reserve levels enhanced by credit protection and low loss loan categories 0.95% 0.97% 1.15% 1.36% 0.75% Total Loan ACL / Funded Loans1,2 - Loans Covered by CLNs 1 2 - EFR Loans 3 4 - Residential Loans 5 - Mortgage Warehouse Loans 0.06% EBOs3 Adjusted Total Loan ACL / Funded Loans: 1Q23 1) Total Loan ACL includes allowance for unfunded commitments 2) Ratio includes an allowance for credit losses of $20.8 million as of March 31, 2023 related to a pool of loans covered under 4 separate credit linked notes 3) Early Buyout Loans are government guaranteed 4) See slide 14 0.12% Resi 0.21% 0.02% 0.20%


 
Note: Borrowings include customer repurchase agreements; Cost of Funds defined as total expense paid on interest bearing liabilities divided by the sum of average interest- bearing liabilities and average non-interest bearing demand deposits. Diversified funding channels provide secular growth trends and reflect long- term relationships Scalable, Differentiated Deposit Franchise 16 • $47.6 billion in total deposits as of 3/31 typically tied to lending relationships • > $2 billion of Q2 QTD deposit growth • WAL benefits from holding customer’s primary relationship • Scalable national funding channels, such as HOA, Settlement Services, Business Escrow Services, and Tech & Innovation • Core deposits fund balance sheet growth • 98% Loan-to-Deposit ratio as of 3/31 • 94% Loan-to-Deposit ratio as of 5/12 • 35% of total deposits are noninterest- bearing (~48% Earnings Credit Rate-related) • ECR-related deposit balances of $13.4 bn • ~59% associated with non-interest bearing accounts 1Q23 Deposit Base $5.6 $6.6 $7.9 $8.9 $9.5 $11.7 $14.3 $18.5 $26.3 $33.9 $31.1 $2.2 $2.3 $4.1 $5.6 $7.4 $7.5 $8.5 $13.4 $21.3 $19.7 $16.5 $0.5 $0.5 $0.4 $0.4 $0.8 $0.9 $0.4 $1.0 $2.4 $7.2 $16.7 0.39% 0.36% 0.30% 0.31% 0.37% 0.64% 0.86% 0.34% 0.25% 0.80% 2.27% -50.00%49.2- 8.4047.6 %- 6.804 .0- 5.20%44.4- 3.6042.8 %- .0041.2- 0.40%39.6- 8.803 .0 %- 7.2036.4- 5.60%34.8- .0033.2 %- 2.4031.6- 0.80%3 .0-29.208.4 %-27.606.8-2 .00%5.2-24.403.6 %-22.80.0-21.20%0.4-19.608.8 %-1 .007.2-16.40%5.6-14.80.0 %-13.202.4-11.60%0.8-1 .009.2 %-8.407.6-6.80%.0-5.204.4 %-3.602.8- .00%1.2-0.400.40%1.22.00.8 %3.604.45.20%6.0.807.6 %8.40 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 Interest Bearing Deposits Non-Interest Bearing Deposits Total Borrowings Cost of Funds Deposits, Borrowings, and Cost of Funds 24.3% CAGR .3% CAGR Dollars in billions Highlights 1Q23 Deposit Composition 35% 20%10% 15% 7% 1% 12%Regions Mtg WH Tech & Innov. HOA Sttlmt Svcs Bus. Escrow Svcs Other 35% 29% 22% 14% Nonint. Bearing DDA MMDA & Savings Interest Bearing DDA CDs ~48% of NIB DDAs are ECR-related Spot Rate 2.76% $47.6 billion


 
17 Daily Deposit Trends (1/4/21 – 2/28/23) • Intra-month deposit trends reflect typical cyclicality in escrow deposit flows and mortgage warehouse disbursements (principal & interest and tax & insurance payments) • Prioritizing growth in tax & insurance accounts in Mortgage Warehouse to dampen intra-month cyclicality • On average, deposits have grown ~2.0% per month, inclusive of normal monthly cyclicality Highlights 1 1 End of Month Deposit Trends (1/4/21 – 2/28/23) $30 $35 $40 $45 $50 $55 $60 (Dollars in billions) $30 $35 $40 $45 $50 $55 $60 Historical Deposit Seasonality Trends


 
Leading Efficiency Produces Strong Op. Leverage 18 • Continued focus on expense management, while investing in growth initiatives and scalable infrastructure to become a leading nationwide banking platform • Efficiency ratio1 increased to 62.1% year-to- date compared to 2022 • Higher efficiency ratio was driven primarily by non-recurring charges and normal Q1 seasonality • Adjusted efficiency ratio1 was 43.2%2, compared to 41.1% in 2022 • Deposit costs increased $4.7 million in Q1 from the prior quarter, primarily related to higher earnings credit rates Track record of simultaneously driving industry-leading growth and efficiency Note: Efficiency ratio for WAL and Peers as calculated and reported by S&P Global Market Intelligence. Peers consist of 34 publicly traded banks headquartered in the U.S. with total assets between $25B and $150B as of March 31, 2023; Source: S&P Global Market Intelligence. 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) 1Q23 is adjusted to exclude $147.6 million of pre-tax net non-operating charges for WAL Highlights Efficiency Ratio Breakdown of Non-Interest Expenses Other Operating Expenses Deposit Costs Salaries & Employee Benefits $101.0 $111.8 $113.1 $125.5 $112.1 $138.3 $139.0 $136.5 $125.7 $148.9 $9.3 $18.1 $56.2 $82.2 $86.9 $248.6 $268.9 $305.8 $333.4 $347.9 1Q22 2Q22 3Q22 4Q22 1Q23 Dollars in millions 53.3% 47.8% 47.0% 45.0% 41.4% 43.3% 42.6% 38.8% 42.9% 44.9% 62.1% 53.2% 47.6% 46.9% 44.7% 40.7% 42.2% 41.0% 37.9% 42.0% 41.1% 43.2% 63.2% 62.9% 60.6% 60.6% 58.9% 56.4% 55.9% 57.1% 57.7% 53.5% 53.7% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 WAL WAL Adjusted Peers 2


 
Significant Available Liquidity Significant Access to Liquidity & Funding Capacity 19 • Repaid all borrowings from Federal Reserve discount window by 3/31 • Higher advance rates at FRB’s discount window available, if necessary • Ample access to contingent liquidity (as of 5/12) • On-Balance Sheet Cash: $2.6 billion • Total Unused Borrowing Capacity: $20.0 billion • Total Unused Funding Capacity: $22.6 billion • Total Available Liquidity: $31.8 billion • Continue to evaluate additional opportunities to establish secured borrowing facilities • Proceeds from contracted and planned asset sales will be used to pay down BTFP borrowings to $0 and reduce FHLB borrowings to normalized levels of ~$5B • New deposit growth will be used to reduce wholesale funding costs and build HQLA investment balance Highlights Dollars in billions, unless otherwise indicated Source 1. Cash 2. FHLB 3. Fed Discount Window 4. Fed BTFP Total $0 $7.9B $0 $1.3B $9.2B In-Use Remaining Capacity $2.6B $3.7B $16.2B $0.05B $22.6B Total Available Liquidity $2.6B $11.6B $16.2B $1.35B $31.8B = = = = = As of 5/12/23 + + + + + Outstanding Borrowings Cash FHLB Fed Discount Window Other Capacity Total Liquidity Available 1Q23 Investment Portfolio 20% Agency MBS 9% Muni 16% Other 27% CLOs 15% Private MBS 13% Low Inc. Housing $9.1 billion Spot Rate 4.60%


 
ROAA Industry-Leading Profitability 20 • Outstanding performance compared to peers with ROAA and ROATCE among highest in industry • Net Interest Income continues to rise through strong earning asset growth • Net Interest Income increased $161 million, or 7.3%, from 2022 due to the rising rate environment and loan repricing • NIM increased 12 bps, driven by higher yields on interest earning assets • PPNR increased $45 million, or 3.3%, from 2022 • Nominally asset sensitive • In +/- 100bps shock IRR sensitivity scenarios, net interest income varies less than 1% ROATCE Note: Peers consist of 34 publicly traded banks headquartered in the U.S. with total assets between $25B and $150B as of March 31, 2023 Source: S&P Global Market Intelligence. 1) Assumes four quarter average; WAL 1Q23 is adjusted to exclude $109.7 million of net non-operating charges, after tax 2) LTM is as of 1Q23 3) 1Q23 adjusted to exclude $147.6 million of pre-tax net non-operating charges Pre-Provision Net Revenue Net Interest Income $159 $202 $262 $369 $469 $533 $624 $746 $1,102 $1,384$1,429 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM $333 $385 $493 $657 $785 $916 $1,040 $1,167 $1,549 $2,216 $2,3774.39% 4.42% 4.51% 4.58% 4.65% 4.68% 4.52% 3.97% 3.41% 3.67%3.79% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM NII NIM Highlights 1.35% 1.50% 1.56% 1.61% 1.72% 2.05% 2.00% 1.61% 1.83% 1.62% 1.43% 0.91% 0.97% 0.92% 0.94% 0.97% 1.28% 1.22% 0.95% 1.19% 1.10% 1.20% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 WAL Peers 18.3% 18.5% 17.8% 17.7% 18.3%20.6%19.6% 17.7% 26.2% 25.4% 21.9% 11.7% 11.1% 10.8% 11.6% 11.4% 15.1% 14.6% 11.5% 15.4% 15.9% 16.7% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1Q23 WAL Peers 1 1 Dollars in millions 2,3 2


 
427% 482% 102% 135% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MRQ Note: Peers consist of 34 publicly traded banks headquartered in the U.S. with total assets between $25B and $150B as of March 31, 2023 Source: S&P Global Market Intelligence. 1) MRQ is 1Q23 for WAL and most peers and 4Q22 for the remainder 2) Refer to slide 2 for further discussion of Non-GAAP financial measures 21 Shareholder-Focused Capital Management Robust Capital Levels Long Term Growth in TBV per Share CET1 Peer CET11 TCE/TA Peer TCE/TA1 WAL WAL with Dividends Added Back Peer Avg Peer Avg with Dividends Added Back WAL consistently generates more capital than needed to support organic growth Common Equity Tier 1 • CET1 remains healthy at 9.4% as of 3/31 • CET1 was ~9.7% as of 4/30 Tangible Common Equity / Tangible Assets2 • TCE / TA decreased 20 bps from 2022 to 6.5%, primarily due to AOCI loss impact TBV2 Growth and Total Shareholder Return • Long-term shareholder returns driven by TBV accretion • TBVPS increased 11.9% from 2022 • 19.7% TBVPS CAGR since year end 2013 • TBVPS has increased more than 4x that of peers • Strong returns bolster capital appreciation above peers • WAL produced 10 bps of CET1 during 1Q through strong, organic capital generation and HFS loan sales Highlights 8.8% 9.3% 9.7% 10.0% 10.4% 10.7% 10.6% 9.9% 9.1% 9.3% 9.4% 7.4% 8.6% 9.2% 9.4% 9.6% 10.2% 10.3% 8.6% 7.3% 6.5% 6.5% 8.3% 8.3% 8.5% 8.6% 9.0% 8.8% 8.9% 8.2% 7.9% 7.1% 7.2% 11.4% 11.4% 11.1% 11.2% 11.1% 11.0% 10.9% 11.2% 11.5% 10.5% 10.4% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 MRQ 1 1


 
Appendix


 
23 Top 50 Banks by Assets - CET1 & ROAA Rank Name CET1 Adj. for AOCI & HTM CET1 Avg. ROAA 1 JPMorgan Chase & Co. 11.4% 13.8% 1.11% 2 First Citizens BancShares, Inc. 11.3% 12.5% 6.64% 3 United Bankshares, Inc. 11.3% 12.5% 1.36% 4 East West Bancorp, Inc. 10.9% 13.1% 1.90% 5 Bank OZK 10.8% 11.2% 2.25% 6 Prosperity Bancshares, Inc. 10.7% 15.6% 1.40% 7 Texas Capital Bancshares, Inc. 10.6% 12.4% 1.08% 8 Commerce Bancshares, Inc. 10.5% 14.5% 1.54% 9 Popular, Inc. 10.1% 16.7% 1.47% 10 Columbia Banking System, Inc. 10.0% 8.9% 0.76% 11 BOK Financial Corporation 9.9% 12.2% 1.35% 12 Ameris Bancorp 9.9% 10.1% 1.36% 13 BankUnited, Inc. 9.4% 10.8% 0.74% 14 M&T Bank Corporation 9.2% 10.2% 1.16% 15 Cullen/Frost Bankers, Inc. 9.0% 13.2% 1.27% 16 United Community Banks, Inc. 9.0% 12.1% 1.20% 17 Pinnacle Financial Partners, Inc. 9.0% 9.9% 1.39% 18 Glacier Bancorp, Inc. 8.9% 12.7% 1.12% 19 Hancock Whitney Corporation 8.7% 11.6% 1.51% 20 New York Community Bancorp, Inc. 8.5% 9.3% 2.88% 21 First Horizon Corporation 8.4% 10.4% 1.19% 22 F.N.B. Corporation 8.4% 10.0% 1.25% 23 SouthState Corporation 8.4% 11.1% 1.20% 24 Webster Financial Corporation 8.3% 10.4% 1.28% 25 Western Alliance Bancorporation 8.1% 9.4% 1.57% Rank Name CET1 Adj. for AOCI & HTM CET1 Avg. ROAA 26 Valley National Bancorp 8.0% 9.0% 1.06% 27 Fulton Financial Corporation 7.6% 9.8% 1.11% 28 Citizens Financial Group, Inc. 7.6% 10.0% 0.97% 29 First Interstate BancSystem, Inc. 7.6% 10.5% 0.91% 30 Associated Banc-Corp 7.6% 9.5% 1.05% 31 Regions Financial Corporation 7.6% 9.9% 1.47% 32 Wells Fargo & Company 7.5% 10.8% 0.76% 33 Wintrust Financial Corporation 7.4% 9.2% 1.10% 34 Cadence Bank 7.3% 10.1% 0.89% 35 Citigroup Inc. 7.3% 12.3% 0.63% 36 Synovus Financial Corp. 7.3% 9.8% 1.35% 37 Simmons First National Corporation 7.3% 11.9% 0.87% 38 UMB Financial Corporation 7.2% 10.6% 1.12% 39 Old National Bancorp 7.2% 10.0% 1.30% 40 Fifth Third Bancorp 6.8% 9.3% 1.22% 41 PacWest Bancorp 6.7% 9.2% -2.05% 42 Huntington Bancshares Incorporated 6.5% 9.6% 1.32% 43 The PNC Financial Services Group, Inc. 6.5% 9.2% 1.15% 44 Comerica Incorporated 6.2% 10.1% 1.50% 45 First Hawaiian, Inc. 6.1% 12.0% 1.11% 46 Zions Bancorporation, National Association 5.8% 9.9% 1.02% 47 KeyCorp 5.5% 9.1% 0.95% 48 Bank of America Corporation 5.4% 11.4% 0.92% 49 U.S. Bancorp 4.9% 8.5% 0.98% 50 Truist Financial Corporation 4.6% 9.1% 1.16% Median 8.1% 10.3% 1.18% • WAL ranks No. 25 of the top 50 banks on Adjusted CET1, inclusive of AOCI and HTM unrealized marks • WAL is at the top decile on average ROAA


 
Focused Efforts to Drive Increased Deposit Liquidity 24 Deposit-led growth driving loan-to-deposit ratio to mid-80s poised to lift WAL from top-quintile for largest banks to top-10 Note: Deposit % as of March 31, 2023, except for WAL, which is as of May 12, 2023. Deposit insurance includes direct, collateralized, pass-through, and insured networks WAL Loan-to-Deposit % uses HFI Loans Source: S&P Global Market Intelligence, 1Q23 company earnings presentations, and 1Q23 Call Reports Rank Name Insured Deposit % Loan / Deposit % Insured / L/D 26 Associated Banc-Corp 76% 96% 0.79x 27 PacWest Bancorp 71% 91% 0.78x 28 Truist Financial Corporation 63% 81% 0.78x 29 SouthState Corporation 65% 84% 0.77x 30 Old National Bancorp 70% 91% 0.77x 31 Citizens Financial Group, Inc. 68% 90% 0.76x 32 Wintrust Financial Corporation 70% 93% 0.76x 33 The PNC Financial Services Group, Inc. 55% 75% 0.74x 34 United Bankshares, Inc. 67% 92% 0.72x 35 Columbia Banking System, Inc. 64% 89% 0.72x 36 Fulton Financial Corporation 69% 97% 0.71x 37 Bank OZK 67% 99% 0.68x 38 New York Community Bancorp, Inc. 66% 97% 0.68x 39 Zions Bancorporation, National Association 55% 81% 0.68x 40 Valley National Bancorp 69% 102% 0.67x 41 M&T Bank Corporation 55% 83% 0.67x 42 U.S. Bancorp 51% 77% 0.66x 43 BankUnited, Inc. 62% 97% 0.64x 44 East West Bancorp, Inc. 56% 89% 0.63x 45 Comerica Incorporated 53% 85% 0.62x 46 Texas Capital Bancshares, Inc. 55% 91% 0.61x 47 First Horizon Corporation 56% 96% 0.59x 48 Ameris Bancorp 58% 101% 0.58x 49 Citigroup Inc. 27% 49% 0.56x 50 First Citizens BancShares, Inc. 53% 99% 0.54x Median 66% 83% 0.79x Rank Name Insured Deposit % Loan / Deposit % Insured / L/D 1 Cullen/Frost Bankers, Inc. 49% 41% 1.18x 2 Bank of America Corporation 61% 55% 1.12x 3 Simmons First National Corporation 77% 74% 1.04x 4 Commerce Bancshares, Inc. 68% 67% 1.02x 5 JPMorgan Chase & Co. 48% 47% 1.01x 6 Regions Financial Corporation 75% 76% 0.98x 7 Prosperity Bancshares, Inc. 70% 72% 0.98x 8 United Community Banks, Inc. 76% 78% 0.98x 9 Glacier Bancorp, Inc. 74% 77% 0.96x 10 First Interstate BancSystem, Inc. 72% 76% 0.95x 11 Popular, Inc. 48% 53% 0.90x 12 Cadence Bank 70% 79% 0.89x 13 First Hawaiian, Inc. 58% 67% 0.87x 14 F.N.B. Corporation 76% 90% 0.85x 15 Western Alliance Bancorporation 79% 94% 0.84x 16 UMB Financial Corporation 57% 68% 0.83x 17 Webster Financial Corporation 77% 92% 0.83x 18 Synovus Financial Corp. 73% 88% 0.83x 19 Huntington Bancshares Incorporated 69% 83% 0.83x 20 Hancock Whitney Corporation 64% 79% 0.81x 21 BOK Financial Corporation 56% 70% 0.80x 22 Pinnacle Financial Partners, Inc. 67% 84% 0.80x 23 Fifth Third Bancorp 60% 75% 0.80x 24 Wells Fargo & Company 55% 70% 0.80x 25 KeyCorp 66% 83% 0.79x


 
WAL’s Thoughtful Evolution 25 Deliberate evolution from a Nevada-focused community bank to a national commercial bank Nevada Community Bank (1994 – 2002) Regional Bank with a National Reach (2010 – 2017) 1994 Founded as Bank West of Nevada 2003 Opened de novo Torrey Pines Bank in SoCal 2005 IPO 2015 Acquisition of Bridge Bank 2021 Partnership with TassatPay to offer blockchain payments 2021 Crossed $50B in assets 2021 Acquisition of AmeriHome Mortgage 2016 Acquisition of GE Hotel Finance Portfolio 2003 Opened de novo Alliance Bank of AZ Ke y Co rp or at e Ev en ts N ew B us in es s Li ne s Total Assets ($Bn) 4Q02 $0.9 4Q09 $5.8 2Q14 $10.0 4Q17 $20.3 2Q19 $25.3 3Q21 $52.8 1Q23 $71.0 National Business Lines Nascent Regional Bank (2003 – 2009) Dec-2002 WAL investors acquire to expand regionally 2Q05 $2.6 National Commercial Bank (2018 – Present)


 
26 • Deliberate, decade-long business transformation strategy • Nearly 70% of GFC losses from 4Q09 to 4Q12 came from categories comprising 44% of portfolio at 4Q09, which today makes up <6% of loans • Losses concentrated in Nevada and consumer lending during GFC • Since year-end 2013, cumulative NCOs of $35mm vs total ACL of $350mm today • No quarterly NCO >$8.2mm (13bps) • Diverse mix of regionally-focused commercial banking divisions and nationally-oriented, specialized businesses • National reach and deep segment expertise enables selective relationships with strong counterparties, leading profitability and superior company risk management • Nevada loan concentration reduction: 40% to 6% • National lending diversification: 21% to 46% • CRE loan concentration reduction: 54% to 25% • 50% of loans in low-to-no-loss categories today Highlights Deliberate business transformation emphasizes underwriting specialization and diversification strategy, which sustains superior asset quality Loan Portfolio: 2010 G eo gr ap hy Ch ar ac te ris tic s • Community banking focused • Nevada concentrated • Local business C&I and HNW developers 40.4% 21.9% 17.0% 20.7% NV CA AZ Other Other C&I 20% CRE, Owner Occupied 28% CRE, Non-Owner Occupied 24% Hotel 2% Warehouse Lending 1% Residential 11% C&D 10% Other 4% • National, specialized commercial bank • Regional footprint • Specialized C&I and institutional sponsor-backed developers Loan Portfolio: 1Q23 25% of Loans Credit Protected $46.4 Bn$4.2 Bn Co m po si tio n Municipal & Nonprofit 3% Tech & Innovation 5% Other C&I 13% CRE, Owner Occupied 4% CRE, Non- Owner Occupied 12% Hotel Franchise Finance 9% Warehouse Lending 10% Residential 32% C&D 9% Other 1% Business Transformation 38.8% 9.4% 6.0% 45.8% CA AZ NV Other Equity Fund Resources 2%


 
Branch-Lite, National Commercial Bank 27 A national banking platform of specialized financial services, paired with attractive regional markets, provides complementary, diversified revenue streams and high operating leverage to produce superior financial returns WAL’s branch network represented by major MSAs Physical office location of business development employees Remote locations of business development employees Business development offices primarily driven by loan and deposit initiatives for: − Bridge Bank / Tech & Innovation − Warehouse Lending − National CRE − Settlement Services − Business Escrow Services − HOA Services National Business Line Growth


 
Commercial Real Estate Statistics 28 ($B) 3/31/23 Special Mention % Sub-Std % Hotel $4.3 ($3.9 – CRE Inv.) 0.2% 4.9% Office $2.5 (~$2.4 – CRE Inv.) 2.6% 1.5% CRE ($11.2 Billion; 25% of Total Loans) Asset Quality Office ($2.5 Billion; 5% of Total Loans) • Primarily shorter-term bridge loans for repositioning or redevelopment projects • Strong sponsorship from institutional equity and large regional and national developers • All direct relationships generated by WAL • Significant up-front cash equity required from sponsors • Conservative loan-to-cost underwriting • Average LTV < 55%; Average LTC ~62% • No junior debt / mezzanine • Largely suburban exposure in “Work From Home” MSAs • <15% in San Fran. / Bay Area, Seattle, and NYC • Limited exposure to Downtown / Central Business Districts (CBDs) 35% 21% 29% 15% Hotel Office Other CRE - Investor Other CRE - OO