Western Alliance Bancorporation Reports First Quarter 2026 Financial Results

PHOENIX--( BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL):

Quarter Highlights:

Net income

Earnings per share

PPNR 1

Net interest margin

Efficiency ratio 1

Book value per

common share

$189.2 million

$1.65

$444.5 million

3.54%

55.8%

$67.03

$251.3 million, as adjusted 1

$2.22, as adjusted 1

$394.0 million, as adjusted 1

47.5%, adjusted for deposit costs 1

$61.14, excluding

goodwill and intangibles 1

CEO COMMENTARY:

Western Alliance achieved solid first quarter results featuring robust deposit growth, net interest margin expansion, and core earnings momentum, while taking decisive action to resolve two fraud-related credits, partially offset by gains from a series of well-executed security sales,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Continued business strength drove quarterly loan and deposit growth of $465 million and $5.6 billion, respectively, and generated adjusted earnings per share 1 of $2.22, excluding $0.57 of notable items. Net interest margin of 3.54% expanded 3 basis points as the cost of interest-bearing deposits declined 21 basis points, which sustained net interest income despite two fewer days in the quarter. Core asset quality remained stable and steady as the total classified assets ratio declined 9 basis points to 1.08% and net loan charge-offs to average loans 1 were 0.39%, excluding fraud-related charge-offs. Overall, tangible book value per share 1 climbed 13.0% year-over-year to $61.14 with a stable CET1 ratio of 11.0%, while we completed opportunistic quarterly share repurchases of $50.0 million."

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

The Company's first quarter 2026 financial results reflect an increased provision for credit losses related to the charge-off of the remaining $126.4 million Leucadia Asset Management LLC ("LAM") loan, partially offset by $50.5 million in gains from security sales. The adjusted metrics below exclude the impact of these items, as well as a $26.1 million charge-off from the specific reserve previously established on the Cantor Group V, LLC ("Cantor") loan. For reconciliations of the non-GAAP financial measures that exclude the effects of these actions, refer to the reconciliations.

FINANCIAL HIGHLIGHTS:

FINANCIAL POSITION RESULTS:

LOANS AND ASSET QUALITY:

1See Reconciliation of Non-GAAP Financial Measures.

FIRST QUARTER 2026 FINANCIAL RESULTS

LINKED-QUARTER BASIS

YEAR-OVER-YEAR

KEY PERFORMANCE METRICS:

1 See Reconciliation of Non-GAAP Financial Measures.

Income Statement

The Company's first quarter 2026 financial results reflect the impact to provision for credit losses, arising from the charge-off of the remaining $126.4 million balance of the LAM loan. This impact was partially offset by $50.5 million in gains from security sales for the quarter. For reconciliations of the non-GAAP financial measures that exclude the effects of these actions, refer to the reconciliations.

Net interest income totaled $766.3 million in the first quarter 2026, which was relatively flat from $766.2 million in the fourth quarter 2025, but represented an increase of $115.7 million, or 17.8%, compared to the first quarter 2025. The slight increase in net interest income from the fourth quarter 2025 was primarily due to lower deposit and borrowing costs and an increase in average interest bearing assets, which were largely offset by declining yields on interest earning assets. The increase in net interest income from the first quarter 2025 was driven by an increase in average interest earning asset balances and lower rates on interest bearing liabilities, partially offset by an increase in average interest bearing liabilities balances and declining yields on interest earning assets.

The Company recorded a provision for credit losses of $213.2 million in the first quarter 2026, an increase of $140.2 million from $73.0 million in the fourth quarter 2025, and an increase of $182.0 million from $31.2 million in the first quarter 2025. The provision for credit losses during the first quarter 2026 was primarily driven by higher net charge-offs totaling $208.5 million, which included a charge-off of $126.4 million for the remaining balance of the LAM loan and a $26.1 million charge-off from the specific reserve previously established on the Cantor loan.

The Company’s net interest margin was 3.54% in the first quarter 2026, an increase from 3.51% in the fourth quarter 2025, and an increase from 3.47% in the first quarter 2025. Net interest margin increased from the fourth quarter 2025 due to lower rates on deposits and short-term borrowings, partially offset by declining yields on interest earning assets. The increase in net interest margin from the first quarter 2025 was primarily driven by a reduction in interest bearing liability costs resulting from a lower rate environment, partially offset by declining yields on interest earning assets.

Non-interest income was $252.6 million for the first quarter 2026, compared to $214.7 million for the fourth quarter 2025, and $127.4 million for the first quarter 2025. The increase in non-interest income of $37.9 million from the fourth quarter 2025 was primarily due to increases in gain on sales of investment securities of $43.1 million and service charges and fees of $14.9 million, partially offset by a lower net gain on mortgage loan origination and sale activities of $18.4 million. The increase in non-interest income of $125.2 million from the first quarter 2025 was primarily driven by increases in gain on sales of investment securities, service charges and fees, net gain on mortgage loan origination and sale activities, and income from equity investments. These increases were partially offset by a decrease in net loan servicing revenue.

Net revenue totaled $1.0 billion for the first quarter 2026, an increase of $38.0 million, or 3.9%, compared to $980.9 million for the fourth quarter 2025, and an increase of $240.9 million, or 31.0%, compared to $778.0 million for the first quarter 2025.

Non-interest expense was $574.4 million for the first quarter 2026, compared to $552.2 million for the fourth quarter 2025, and $500.4 million for the first quarter 2025. The increase in non-interest expense of $22.2 million from the fourth quarter 2025 was primarily due to an increase of $21.2 million in other non-interest expense and $7.0 million in insurance costs. The increase in other non-interest expense was primarily driven by costs associated with Juris banking, which had comparable growth in service charges and fees within non-interest income, as well as OREO-related charges. Insurance costs increased primarily due to a reduction in the FDIC special assessment recognized in the fourth quarter 2025. These increases were partially offset by a $7.9 million reduction in deposit costs. The increase in non-interest expense of $74.0 million from the first quarter 2025 was primarily attributable to increased deposit costs of $26.5 million, increased salaries and employee benefits of $23.1 million, and a $19.4 million increase in other non-interest expense largely related to Juris banking. These increases were partially offset by decreased insurance costs of $13.2 million. The Company's efficiency ratio was 55.8% for the first quarter 2026, compared to 55.7% for the fourth quarter 2025, and 63.5% for the first quarter 2025. The Company’s efficiency ratio, adjusted for deposit costs 1, was 47.5% for the first quarter 2026, compared to 46.5% in the fourth quarter 2025, and 55.8% for the first quarter 2025.

Income tax expense was $42.1 million for the first quarter 2026, compared to $62.5 million for the fourth quarter 2025, and $47.3 million for the first quarter 2025. The decrease in income tax expense from the fourth quarter 2025 and the first quarter 2025 was primarily driven by lower pre-tax income.

Net income was $189.2 million (or $251.3 million, as adjusted 1) for the first quarter 2026, a decrease of $104.0 million from $293.2 million for the fourth quarter 2025, and a decrease of $9.9 million from $199.1 million for the first quarter 2025. Earnings per share totaled $1.65 (or $2.22, as adjusted 1) for the first quarter 2026, compared to $2.59 for the fourth quarter 2025, and $1.79 for the first quarter 2025.

The Company believes its pre-provision net revenue 1 ("PPNR") is a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the first quarter 2026, the Company’s PPNR 1 was $444.5 million, up $15.8 million from $428.7 million in the fourth quarter 2025, and up $166.9 million from $277.6 million in the first quarter 2025.

1 See Reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees, totaled $59.1 billion at March 31, 2026, compared to $58.7 billion at December 31, 2025, and $54.8 billion at March 31, 2025. The increase in HFI loans of $465 million from the prior quarter was primarily driven by increases of $295 million and $113 million in commercial and industrial loans and residential real estate loans, respectively. The increase in HFI loans of $4.4 billion from March 31, 2025 was primarily driven by increases of $4.1 billion, $490 million, and $304 million in commercial and industrial, residential real estate, and commercial real estate non-owner occupied loans, respectively, partially offset by a decrease of $424 million in construction and land development loans. HFS loans totaled $3.9 billion at March 31, 2026, $3.5 billion at December 31, 2025, and $3.2 billion at March 31, 2025. The increase in HFS loans of $438 million from December 31, 2025 was primarily driven by increases of $345 million and $113 million in government-insured or guaranteed and agency-conforming mortgage loans, respectively. The increase in HFS loans of $698 million from March 31, 2025 was primarily driven by increases of $689 million and $110 million in government-insured or guaranteed and non-agency mortgage loans, respectively, partially offset by a $167 million decrease in agency-conforming mortgage loans.

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. The allowance for loan losses to funded HFI loans ratio was 0.78% at both at March 31, 2026 and December 31, 2025, and 0.71% , and March 31, 2025. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.87% at both March 31, 2026 and December 31, 2025, and 0.77% at March 31, 2025. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $7.9 billion, $8.1 billion, and $8.5 billion as of March 31, 2026, December 31, 2025, and March 31, 2025, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.2 million as of March 31, 2026, $11.8 million as of December 31, 2025, and $11.9 million as of March 31, 2025. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 1.00% at March 31, 2026, 1.01% at December 31, 2025, and 0.92% at March 31, 2025.

Deposits totaled $82.7 billion at March 31, 2026, an increase of $5.6 billion from December 31, 2025, and an increase of $13.4 billion from $69.3 billion at March 31, 2025. By deposit type, the increase from the prior quarter is primarily attributable to increases of $3.7 billion, $969 million, and $828 million from non-interest bearing deposits, interest-bearing demand deposits and savings and money market accounts, respectively. From March 31, 2025, non-interest bearing deposits, interest-bearing demand deposits, and savings and money market accounts increased $6.1 billion, $3.9 billion, and $3.7 billion, respectively. Non-interest bearing deposits totaled $28.1 billion at March 31, 2026, compared to $24.4 billion at December 31, 2025, and $22.0 billion at March 31, 2025.

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

Mar 31, 2026

Dec 31, 2025

Mar 31, 2025

Non-interest bearing

34.0

31.5

31.8

Interest-bearing demand

23.4

23.9

22.4

Savings and money market

30.7

31.9

31.3

Certificates of deposit

11.9

12.7

14.5

The Company’s ratio of HFI loans to deposits was 71.5% at March 31, 2026, compared to 76.0% at December 31, 2025, and 79.0% at March 31, 2025.

Borrowings totaled $5.6 billion at March 31, 2026, $5.2 billion at December 31, 2025, and $4.2 billion at March 31, 2025. Borrowings increased $370 million from December 31, 2025 driven by a $676 million increase in short-term borrowings, partially offset by a $307 million decrease in long-term borrowings. Borrowings increased $1.5 billion from March 31, 2025, reflecting an increase in short-term borrowings of $2.0 billion, partially offset by a $529 million decrease in long-term borrowings.

Qualifying debt totaled $1.1 billion at March 31, 2026, consistent with the balance at December 31, 2025, and up from $898 million at March 31, 2025. The increase in qualifying debt from March 31, 2025 was primarily due to the issuance of $400 million of subordinated debt during the quarter ended December 31, 2025, partially offset by the repayment of $225 million of subordinated debt during the quarter ended June 30, 2025.

Total equity was $7.9 billion at March 31, 2026, relatively flat from December 31, 2025, and up from $7.2 billion at March 31, 2025. Total equity was flat from the prior quarter, primarily due to net income of $189.2 million, partially offset by changes in accumulated other comprehensive income of $112 million and cash dividends paid during the first quarter, comprised of $46.1 million, or $0.42 per common share, $3.2 million or $0.27 per depositary share, and $7.1 million on preferred stock of the Company's REIT subsidiary. In addition, the Company repurchased 0.7 million shares for $50.0 million during the first quarter of 2026 under the Company's $300 million share repurchase program. The increase in equity from March 31, 2025 was primarily driven by net income, partially offset by dividends to stockholders and share repurchases.

The Company's common equity tier 1 capital ratio was 11.0% at March 31, 2026 and December 31, 2025, compared to 11.1% at March 31, 2025. At March 31, 2026, tangible common equity, net of tax 1, was 6.8% of tangible assets 1 and total capital was 14.4% of risk-weighted assets. The Company’s tangible book value per share 1 was $61.14 at March 31, 2026, relatively flat from $61.29 at December 31, 2025, and an increase of 13.0% from $54.10 at March 31, 2025. The increase in tangible book value per share from March 31, 2025 was primarily attributable to net income.

Total assets increased $6.1 billion, or 6.6%, to $98.9 billion at March 31, 2026 from $92.8 billion at December 31, 2025, and increased 19.0% from $83.0 billion at March 31, 2025. The increase in total assets from December 31, 2025 was primarily driven by increased cash as well as HFI and HFS loans. The increase in total assets from March 31, 2025 was primarily driven by increased cash, investment securities, and HFI and HFS loans.

1 See Reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $213.2 million for the first quarter 2026, compared to $73.0 million for the fourth quarter 2025, and $31.2 million for the first quarter 2025. Net loan charge-offs in the first quarter 2026 totaled $208.5 million, or 1.45% of average loans (annualized), compared to $44.6 million, or 0.31%, in the fourth quarter 2025, and $25.8 million, or 0.20%, in the first quarter 2025. Net loan charge-offs for the first quarter 2026 included charge-offs for the LAM and Cantor loans totaling $152.5 million. Excluding these two fraud-related charge-offs, net loan charge-offs 1 were $56.0 million, or 0.39% of average loans (annualized) 1 in the first quarter 2026.

Nonaccrual loans decreased $8 million to $492 million during the quarter and increased $41 million from March 31, 2025. Loans past due 90 days and still accruing interest totaled $56 million at March 31, 2026, $66 million at December 31, 2025, and $44 million at March 31, 2025 (excluding government guaranteed loans of $288 million, $290 million, and $275 million, respectively). Loans past due 30-89 days and still accruing interest totaled $157 million at March 31, 2026, an increase from $108 million at December 31, 2025, and a decrease from $182 million at March 31, 2025 (excluding government guaranteed loans of $94 million, $145 million, and $161 million, respectively). Criticized loans of $1.4 billion increased $75 million during the quarter and decreased $254 million from March 31, 2025.

Repossessed assets totaled $123 million at March 31, 2026, compared to $137 million at December 31, 2025, and $51 million at March 31, 2025. Classified assets of $1.1 billion at March 31, 2026 decreased $18 million from December 31, 2025, and decreased $125 million from March 31, 2025.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses 2, a common regulatory measure of asset quality, was 13.0% at March 31, 2026, compared to 13.3% at December 31, 2025, and 15.9% at March 31, 2025.

1 See Reconciliation of Non-GAAP Financial Measures.

2 The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its first quarter 2026 financial results at 12:00 p.m. ET on Wednesday, April 22, 2026. Participants may access the call by dialing 1-888-596-4144 and using access code 9350603 or via live audio webcast using the website link https://events.q4inc.com/attendee/403697580. 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 April 22nd through 1:00 p.m. ET April 29th by dialing 1-800-770-2030, using access code 9350603.

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, including our deposits, liquidity and funding, changes in economic conditions and related impacts on the Company's business, 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, 2025, as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally and any related impact on depositor behavior; risks related to the sufficiency of liquidity; changes in international trade policies, tariffs and treaties affecting imports and exports, trade disputes, barriers to trade or the emergence of other trade restrictions, and their related impacts on macroeconomic conditions and customer behavior; the potential adverse effects of unusual and infrequently occurring events 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 wars in Ukraine and the Middle East; 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; increased foreclosures and ownership of real property; changes in management’s estimate of the adequacy of the allowance for credit losses; technological risks and developments and cyber threats, attacks or events; emerging external focus among regulators and other officials related to risks in connection with the development and use of artificial intelligence; 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; the outcome of legal proceedings regarding the Cantor Group V loan and the Leucadia Asset Management LLC loan, the amount of funds and/or collateral that may be available for repayment of such loans, and any adverse economic or other events impacting the collateral, borrower or guarantors with respect to such loans; 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, except to the extent required by applicable law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur, and you should not put undue reliance on any forward-looking statements.

About Western Alliance Bancorporation

Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, Member FDIC, is a leading national bank for business that puts customers first, delivering tailored business banking solutions and consumer products backed by outstanding, personalized service and specific expertise in more than 30 industries and sectors. With $90 billion in assets and offices nationwide, Western Alliance has ranked as a top U.S. bank by American Banker and Bank Director since 2016. In 2025, Western Alliance Bancorporation was #2 for Best CEO, Best CFO and Best Company Board of Directors on Extel’s All-America Executive Team Midcap Banks list. For more information on offerings, subsidiaries and affiliates, visit www.westernalliancebank.com or follow Western Alliance Bank on LinkedIn.

Western Alliance Bancorporation and Subsidiaries

Summary Consolidated Financial Data

Unaudited

Selected Balance Sheet Data:

As of March 31,

2026

2025

Change %

(in millions)

Total assets

98,853

83,043

19.0

Loans held for sale

3,936

3,238

21.6

Loans HFI, net of deferred fees

59,142

54,761

8.0

Investment securities

20,392

15,868

28.5

Total deposits

82,723

69,322

19.3

Borrowings

5,610

4,151

35.1

Qualifying debt

1,072

898

19.4

Total equity

7,908

7,215

9.6

Tangible common equity, net of tax (1)

6,677

5,973

11.8

Common equity Tier 1 capital

7,050

6,311

11.7

Selected Income Statement Data:

For the Three Months Ended March 31,

2026

2025

Change %

(in millions, except per share data)

Interest income

1,188.2

1,095.6

8.5

Interest expense

421.9

445.0

(5.2

)

Net interest income

766.3

650.6

17.8

Provision for credit losses

213.2

31.2

Net interest income after provision for credit losses

553.1

619.4

(10.7

)

Non-interest income

252.6

127.4

98.3

Non-interest expense

574.4

500.4

14.8

Income before income taxes

231.3

246.4

(6.1

)

Income tax expense

42.1

47.3

(11.0

)

Net income

189.2

199.1

(5.0

)

Net income attributable to noncontrolling interest

7.1

—

Net income attributable to Western Alliance

182.1

199.1

(8.5

)

Dividends on preferred stock

3.2

—

Net income available to common stockholders

178.9

195.9

(8.7

)

Diluted earnings per common share

1.65

1.79

(7.8

)

(1)

See Reconciliation of Non-GAAP Financial Measures.

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 March 31,

2026

2025

Change %

Diluted earnings per common share / as adjusted (1)

1.65

2.22

1.79

(7.8

Book value per common share

67.03

60.03

11.7

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

61.14

54.10

13.0

Average common shares outstanding

(in millions):

Basic

108.2

108.8

(0.6

)

Diluted

108.7

109.6

(0.8

)

Common shares outstanding

109.2

110.4

(1.1

)

Selected Performance Ratios:

Return on average assets / as adjusted (1, 2)

0.80% /

1.07

0.97

(17.5

Return on average tangible common equity / as adjusted (1, 2)

10.5 /

14.2

13.4

(21.6

)

Net interest margin (2)

3.54

3.47

2.0

Efficiency ratio (1)

55.8

63.5

(12.1

)

Efficiency ratio, adjusted for deposit costs (1)

47.5

55.8

(14.9

)

HFI loan to deposit ratio

71.5

79.0

(9.5

)

Asset Quality Ratios:

Net charge-offs to average loans outstanding / as adjusted (1, 2)

1.45% /

0.39

0.20

Nonaccrual loans to funded HFI loans

0.83

0.82

1.2

Nonaccrual loans and repossessed assets to total assets

0.62

0.60

3.3

Allowance for loan losses to funded HFI loans

0.78

0.71

9.9

Allowance for credit losses to funded HFI loans

0.87

0.77

13.0

Allowance for loan losses to nonaccrual HFI loans

9.3

Allowance for credit losses to nonaccrual HFI loans

105

11.7

Capital Ratios:

Mar 31, 2026

Dec 31, 2025

Mar 31, 2025

Tangible common equity (1)

6.8

7.3

7.2

Common Equity Tier 1 (3)

11.0

11.1

Tier 1 Leverage ratio (3)

8.1

8.2

8.6

Tier 1 Capital (3)

12.0

12.1

12.3

Total Capital (3)

14.4

14.5

(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 March 31, 2026 are preliminary.

Western Alliance Bancorporation and Subsidiaries

Condensed Consolidated Income Statements

Unaudited

Three Months Ended March 31,

2026

2025

(in millions, except per share data)

Interest income:

Loans

915.7

881.0

Investment securities

219.9

168.0

Other

52.6

46.6

Total interest income

1,188.2

1,095.6

Interest expense:

Deposits

360.7

378.3

Qualifying debt

13.1

9.3

Borrowings

48.1

57.4

Total interest expense

421.9

445.0

Net interest income

766.3

650.6

Provision for credit losses

213.2

31.2

Net interest income after provision for credit losses

553.1

619.4

Non-interest income:

Service charges and fees

88.5

40.5

Net gain on mortgage loan origination and sale activities

72.7

49.5

Net loan servicing (loss) revenue

(1.3

)

21.8

Income from bank owned life insurance

10.7

11.4

Gain on sales of investment securities

50.5

2.1

Fair value gain adjustments, net

3.1

1.0

Income (loss) from equity investments

13.3

(4.8

)

Other

15.1

5.9

Total non-interest income

252.6

127.4

Non-interest expenses:

Salaries and employee benefits

205.5

182.4

Deposit costs

163.3

136.8

Data processing

53.1

45.2

Legal, professional, and directors' fees

30.6

28.9

Insurance

24.7

37.9

Occupancy

19.2

17.2

Loan servicing expenses

16.7

16.4

Business development and marketing

9.5

5.9

Loan acquisition and origination expenses

7.9

5.2

Other

43.9

24.5

Total non-interest expense

574.4

500.4

Income before income taxes

231.3

246.4

Income tax expense

42.1

47.3

Net income

189.2

199.1

Net income attributable to noncontrolling interest

7.1

—

Net income attributable to Western Alliance

182.1

199.1

Dividends on preferred stock

3.2

Net income available to common stockholders

178.9

195.9

Earnings per common share:

Diluted shares

108.7

109.6

Diluted earnings per share

1.65

1.79

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Income Statements

Unaudited

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(in millions, except per share data)

Interest income:

Loans

915.7

936.2

948.3

914.3

881.0

Investment securities

219.9

221.6

231.7

201.5

168.0

Other

52.6

59.6

45.5

38.6

46.6

Total interest income

1,188.2

1,217.4

1,225.5

1,154.4

1,095.6

Interest expense:

Deposits

360.7

383.5

398.2

377.8

378.3

Qualifying debt

13.1

9.0

6.3

8.2

9.3

Borrowings

48.1

58.7

70.6

70.8

57.4

Total interest expense

421.9

451.2

475.1

456.8

445.0

Net interest income

766.3

766.2

750.4

697.6

650.6

Provision for credit losses

213.2

73.0

80.0

39.9

31.2

Net interest income after provision for credit losses

553.1

693.2

670.4

657.7

619.4

Non-interest income:

Service charges and fees

88.5

73.6

40.5

39.7

40.5

Net gain on mortgage loan origination and sale activities

72.7

91.1

75.5

39.4

49.5

Net loan servicing (loss) revenue

(1.3

)

(1.4

)

19.1

38.3

21.8

Income from bank owned life insurance

10.7

11.8

11.0

11.4

Gain on sales of investment securities

50.5

7.4

8.5

11.4

2.1

Fair value gain adjustments, net

3.1

3.5

8.3

0.1

1.0

Income (loss) from equity investments

13.3

12.2

7.8

2.9

(4.8

)

Other

15.1

16.5

16.3

5.5

5.9

Total non-interest income

252.6

214.7

187.8

148.3

127.4

Non-interest expenses:

Salaries and employee benefits

205.5

201.7

193.5

179.9

182.4

Deposit costs

163.3

171.2

175.1

147.4

136.8

Data processing

53.1

48.9

48.1

45.0

45.2

Legal, professional, and directors' fees

30.6

33.6

28.1

25.3

28.9

Insurance

24.7

17.7

24.5

37.4

37.9

Occupancy

19.2

19.7

16.8

16.9

17.2

Loan servicing expenses

16.7

17.7

15.0

20.1

16.4

Business development and marketing

9.5

11.1

5.6

6.1

5.9

Loan acquisition and origination expenses

7.9

7.3

5.8

5.2

Other

43.9

22.7

30.4

30.8

24.5

Total non-interest expense

574.4

552.2

544.4

514.7

500.4

Income before income taxes

231.3

355.7

313.8

291.3

246.4

Income tax expense

42.1

62.5

53.3

53.5

47.3

Net income

189.2

293.2

260.5

237.8

199.1

Net income attributable to noncontrolling interest

7.1

7.4

—

Net income attributable to Western Alliance

182.1

286.1

253.4

230.4

199.1

Dividends on preferred stock

3.2

Net income available to common stockholders

178.9

282.9

250.2

227.2

195.9

Earnings per common share:

Diluted shares

108.7

109.3

109.8

109.6

Diluted earnings per share

1.65

2.59

2.28

2.07

1.79

Western Alliance Bancorporation and Subsidiaries

Five Quarter Condensed Consolidated Balance Sheets

Unaudited

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(in millions)

Assets:

Cash and due from banks

8,554

3,596

5,756

2,767

3,279

Investment securities

20,392

20,438

18,841

18,601

15,868

Loans held for sale

3,936

3,498

3,502

3,022

3,238

Loans held for investment:

Commercial and industrial

28,223

27,928

25,734

24,920

24,117

Commercial real estate - non-owner occupied

10,344

10,340

10,487

10,255

10,040

Commercial real estate - owner occupied

1,711

1,683

1,682

1,749

1,787

Construction and land development

4,080

4,055

4,065

4,526

4,504

Residential real estate

14,765

14,652

14,651

14,465

14,275

Consumer

Loans HFI, net of deferred fees

59,142

58,677

56,646

55,939

54,761

Allowance for loan losses

(461

)

(461

)

(440

)

(395

)

(389

)

Loans HFI, net of deferred fees and allowance

58,681

58,216

56,206

55,544

54,372

Mortgage servicing rights

1,516

1,494

1,213

1,044

1,241

Premises and equipment, net

480

442

416

365

361

Operating lease right-of-use asset

125

131

134

130

125

Other assets acquired through foreclosure, net

123

137

130

218

Bank owned life insurance

1,067

1,057

1,045

1,033

1,022

Goodwill and other intangibles, net

646

649

651

653

656

Other assets

3,333

3,116

3,076

3,348

2,830

Total assets

98,853

92,774

90,970

86,725

83,043

Liabilities and stockholders' equity:

Liabilities:

Deposits

Non-interest bearing deposits

28,078

24,353

26,628

22,997

22,009

Interest bearing:

Demand

19,385

18,416

16,422

15,674

15,507

Savings and money market

25,414

24,586

24,627

22,231

21,728

Certificates of deposit

9,846

9,804

9,570

10,205

10,078

Total deposits

82,723

77,159

77,247

71,107

69,322

Borrowings

5,610

5,240

3,862

6,052

4,151

Qualifying debt

1,072

1,076

681

678

898

Operating lease liability

154

160

164

160

154

Accrued interest payable and other liabilities

1,386

1,193

1,326

1,321

1,303

Total liabilities

90,945

84,828

83,280

79,318

75,828

Equity:

Preferred stock

295

Common stock and additional paid-in capital

2,036

2,095

2,140

2,136

2,125

Retained earnings

5,740

5,607

5,371

5,165

4,980

Accumulated other comprehensive loss

(456

)

(344

)

(409

)

(482

)

(478

)

Total Western Alliance stockholders' equity

7,615

7,653

7,397

7,114

6,922

Noncontrolling interest in subsidiary

293

Total equity

7,908

7,946

7,690

7,407

7,215

Total liabilities and equity

98,853

92,774

90,970

86,725

83,043

Western Alliance Bancorporation and Subsidiaries

Changes in the Allowance For Credit Losses on Loans

Unaudited

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(dollars in millions)

Allowance for loan losses

Balance, beginning of period

460.6

440.4

394.7

388.6

373.8

Provision for credit losses (1)

209.0

64.8

76.8

35.7

40.6

Recoveries of loans previously charged-off:

Commercial and industrial

0.6

1.7

0.7

0.6

1.0

Commercial real estate - non-owner occupied

—

5.1

0.6

Commercial real estate - owner occupied

—

0.4

—

0.1

Construction and land development

—

1.5

—

Residential real estate

—

Consumer

—

0.1

—

Total recoveries

0.6

3.7

0.7

5.7

1.7

Loans charged-off:

Commercial and industrial

181.4

28.9

12.4

17.0

13.0

Commercial real estate - non-owner occupied

27.7

10.7

12.9

17.4

14.5

Commercial real estate - owner occupied

—

0.2

—

Construction and land development

—

8.6

6.3

0.6

—

Residential real estate

—

0.1

—

Consumer

—

0.1

0.2

—

Total loans charged-off

209.1

48.3

31.8

35.3

27.5

Net loan charge-offs

208.5

44.6

31.1

29.6

25.8

Balance, end of period

461.1

460.6

440.4

394.7

388.6

Allowance for unfunded loan commitments

Balance, beginning of period

49.6

42.3

39.2

35.1

39.5

Provision for (recovery of) credit losses (1)

3.7

7.3

3.1

4.1

(4.4

)

Balance, end of period (2)

53.3

49.6

42.3

39.2

35.1

Components of the allowance for credit losses on loans

Allowance for loan losses

461.1

460.6

440.4

394.7

388.6

Allowance for unfunded loan commitments

53.3

49.6

42.3

39.2

35.1

Total allowance for credit losses on loans

514.4

510.2

482.7

433.9

423.7

Net charge-offs to average loans - annualized

1.45

0.31

0.22

0.20

Allowance ratios

Allowance for loan losses to funded HFI loans (3)

0.78

0.71

Allowance for credit losses to funded HFI loans (3)

0.87

0.85

0.78

0.77

Allowance for loan losses to nonaccrual HFI loans

Allowance for credit losses to nonaccrual HFI loans

105

102

(1)

The above tables reflect only the provision for credit losses on funded and unfunded loans. For the three months ended March 31, 2026, provision for credit losses for HTM investment securities totaled $0.5 million. The allowance for credit losses on HTM investment securities totaled $13.4 million as of March 31, 2026

(2)

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

(3)

Ratio includes an allowance for credit losses of $11.2 million as of March 31, 2026 related to a pool of loans covered under three separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries

Asset Quality Metrics

Unaudited

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(dollars in millions)

Nonaccrual loans and repossessed assets

Nonaccrual loans (1)

492

500

522

427

451

Nonaccrual loans to funded HFI loans

0.83

0.85

0.92

0.76

0.82

Repossessed assets

123

137

130

218

Nonaccrual loans and repossessed assets to total assets

0.62

0.69

0.72

0.74

0.60

Loans Past Due

Loans past due 90 days, still accruing (2)

Loans past due 90 days, still accruing to funded HFI loans (2)

0.09

0.11

0.09

0.08

Loans past due 30 to 89 days, still accruing (3)

157

108

196

175

182

Loans past due 30 to 89 days, still accruing to funded HFI loans (2)

0.27

0.18

0.35

0.31

0.33

Other credit quality metrics

Special mention loans

403

325

292

444

460

Special mention loans to funded HFI loans

0.68

0.55

0.52

0.79

0.84

Classified loans on accrual

455

450

476

615

693

Classified loans on accrual to funded HFI loans

0.77

0.84

1.10

1.27

Classified assets (1)

1,070

1,088

1,129

1,261

1,195

Classified assets to total assets

1.08

1.17

1.24

1.45

1.44

(1)

Includes senior liens acquired to protect the Company's position with respect to its Cantor Group V loan of $13 million as of March 31, 2026.

(2)

Excludes government guaranteed residential mortgage loans of $288 million, $290 million, $282 million, $326 million, and $275 million as of each respective date in the table above.

(3)

Excludes government guaranteed residential mortgage loans of $94 million, $145 million, $149 million, $168 million, and $161 million as of each respective date in the table above.

Western Alliance Bancorporation and Subsidiaries

Analysis of Average Balances, Yields and Rates

Unaudited

Three Months Ended

March 31, 2026

December 31, 2025

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

(dollars in millions)

Interest earning assets

Loans HFS

5,469

80.2

5.95

5,195

75.2

5.74

Loans HFI:

Commercial and industrial

27,560

413.3

6.13

26,246

415.1

6.32

CRE - non-owner occupied

10,317

169.9

6.68

10,454

182.5

6.93

CRE - owner occupied

1,694

24.8

6.00

1,695

24.0

5.74

Construction and land development

3,983

76.4

7.79

4,003

82.5

8.17

Residential real estate

14,611

150.8

4.19

14,690

156.6

4.23

Consumer

0.3

7.48

0.3

5.34

Total HFI loans (1), (2), (3), (4)

58,184

835.5

5.85

57,109

861.0

6.01

Investment securities:

Taxable

17,696

195.4

4.48

17,690

197.8

4.44

Tax-exempt

2,278

24.5

5.50

2,212

23.8

5.39

Total investment securities (1)

19,974

219.9

4.59

19,902

221.6

4.54

Cash and other

5,327

52.6

4.01

5,633

59.6

4.20

Total interest earning assets

88,954

1,188.2

5.46

87,839

1,217.4

5.54

Non-interest earning assets

Cash and due from banks

543

462

Allowance for loan losses

(464

)

(459

)

Bank owned life insurance

1,060

1,049

Other assets

5,509

5,310

Total assets

95,602

94,201

Interest-bearing liabilities

Interest-bearing deposits:

Interest-bearing demand accounts

18,946

99.5

2.13

17,374

102.2

2.33

Savings and money market

24,611

168.7

2.78

24,113

180.9

2.98

Certificates of deposit

9,724

92.5

3.86

9,834

100.4

4.05

Total interest-bearing deposits

53,281

360.7

2.75

51,321

383.5

2.96

Short-term borrowings

2,948

29.5

4.05

3,243

33.7

4.13

Long-term debt

1,353

18.6

5.59

1,723

25.0

5.75

Qualifying debt

1,077

13.1

4.92

845

9.0

4.27

Total interest-bearing liabilities

58,659

421.9

2.92

57,132

451.2

3.13

Interest cost of funding earning assets

1.92

2.04

Non-interest-bearing liabilities

Non-interest-bearing deposits

27,352

27,524

Other liabilities

1,470

1,681

Equity

8,121

7,864

Total liabilities and equity

95,602

94,201

Net interest income and margin (5)

766.3

3.54

766.2

3.51

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.1 million and $9.9 million for the three months ended March 31, 2026 and December 31, 2025, respectively.

(2)

Included in the yield computation are net loan fees of $23.9 million and $25.0 million for the three months ended March 31, 2026 and December 31, 2025, respectively

(3)

Interest income includes a reduction for earnings credits totaling $48.7 million and $56.6 million for the three months ended March 31, 2026 and December 31, 2025, respectively.

(4)

Includes non-accrual loans.

(5)

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

March 31, 2026

March 31, 2025

Average

Balance

Interest

Average Yield /

Cost

Average

Balance

Interest

Average Yield /

Cost

(dollars in millions)

Interest earning assets

Loans HFS

5,469

80.2

5.95

4,300

66.6

6.28

Loans HFI:

Commercial and industrial

27,560

413.3

6.13

22,831

365.8

6.56

CRE - non-owner occupied

10,317

169.9

6.68

10,011

175.1

7.10

CRE - owner occupied

1,694

24.8

6.00

1,880

28.7

6.30

Construction and land development

3,983

76.4

7.79

4,407

91.8

8.45

Residential real estate

14,611

150.8

4.19

14,346

152.2

4.30

Consumer

0.3

7.48

0.8

6.69

Total loans HFI (1), (2), (3), (4)

58,184

835.5

5.85

53,521

814.4

6.20

Investment securities:

Taxable

17,696

195.4

4.48

13,020

143.5

4.47

Tax-exempt

2,278

24.5

5.50

2,255

24.5

5.52

Total investment securities (1)

19,974

219.9

4.59

15,275

168.0

4.63

Cash and other

5,327

52.6

4.01

4,083

46.6

4.63

Total interest earning assets

88,954

1,188.2

5.46

77,179

1,095.6

5.81

Non-interest earning assets

Cash and due from banks

543

331

Allowance for loan losses

(464

)

(397

)

Bank owned life insurance

1,060

1,015

Other assets

5,509

4,720

Total assets

95,602

82,848

Interest bearing liabilities

Interest bearing deposits:

Interest bearing demand accounts

18,946

99.5

2.13

15,870

99.9

2.55

Savings and money market accounts

24,611

168.7

2.78

21,206

164.8

3.15

Certificates of deposit

9,724

92.5

3.86

10,018

113.6

4.60

Total interest bearing deposits

53,281

360.7

2.75

47,094

378.3

3.26

Short-term borrowings

2,948

29.5

4.05

1,722

20.8

4.89

Long-term debt

1,353

18.6

5.59

2,652

36.6

5.60

Qualifying debt

1,077

13.1

4.92

899

9.3

4.18

Total interest bearing liabilities

58,659

421.9

2.92

52,367

445.0

3.45

Interest cost of funding earning assets

1.92

2.34

Non-interest bearing liabilities

Non-interest bearing deposits

27,352

22,097

Other liabilities

1,470

1,485

Equity

8,121

6,899

Total liabilities and equity

95,602

82,848

Net interest income and margin (5)

766.3

3.54

650.6

3.47

(1)

Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.1 million and $10.2 million for the three months ended March 31, 2026 and 2025, respectively.

(2)

Included in the yield computation are net loan fees of $23.9 million and $23.8 million for the three months ended March 31, 2026 and 2025, respectively.

(3)

Interest income includes a reduction for earnings credits totaling of $48.7 million and $58.1 million for the three months ended March 31, 2026 and 2025, respectively.

(4)

Includes non-accrual loans.

(5)

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

Income Statement Classification of Earnings Credit and Referral Costs

Unaudited

The below table presents the income statement classification for total earnings credit and referral costs incurred on deposits:

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

Income statement line item

(in millions)

Interest income (1)

48.7

56.6

64.9

61.3

58.1

Service charges and fees (1)

8.3

7.2

5.4

4.4

4.2

Deposit costs (2)

157.3

165.0

169.1

142.8

129.9

Total earnings credit and referral costs

214.3

228.8

239.4

208.5

192.2

(1)

Earnings credits recorded as a reduction to Interest income and Service charges and fees.

(2)

Deposit costs also included $6.0 million, $6.2 million, $6.0 million, $4.6 million, and $6.9 million in other deposit related costs for each respective period in the table above, primarily associated with reciprocal deposits.

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter:

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(in millions)

Net interest income

766.3

766.2

750.4

697.6

650.6

Total non-interest income

252.6

214.7

187.8

148.3

127.4

Net revenue

1,018.9

980.9

938.2

845.9

778.0

Total non-interest expense

574.4

552.2

544.4

514.7

500.4

Pre-provision net revenue (1)

444.5

428.7

393.8

331.2

277.6

Less:

Provision for credit losses

213.2

73.0

80.0

39.9

31.2

Income tax expense

42.1

62.5

53.3

53.5

47.3

Net income

189.2

293.2

260.5

237.8

199.1

Efficiency Ratio (Tax Equivalent Basis) by Quarter:

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(dollars in millions)

Total non-interest expense

574.4

552.2

544.4

514.7

500.4

Less: Deposit costs

163.3

171.2

175.1

147.4

136.8

Total non-interest 27expense, excluding deposit costs

411.1

381.0

369.3

367.3

363.6

Divided by:

Total net interest income

766.3

766.2

750.4

697.6

650.6

Plus:

Tax equivalent interest adjustment

10.1

9.9

9.7

10.2

Total non-interest income

252.6

214.7

187.8

148.3

127.4

Less: Deposit costs

163.3

171.2

175.1

147.4

136.8

865.7

819.6

772.8

708.7

651.4

Efficiency ratio (2)

55.8

55.7

57.4

60.1

63.5

Efficiency ratio, adjusted for deposit costs (2)

47.5

46.5

47.8

51.8

55.8

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Tangible Common Equity:

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(in millions, except per share data)

Total equity

7,908

7,946

7,690

7,407

7,215

Less:

Goodwill and intangible assets, net

646

649

651

653

656

Preferred stock

295

Noncontrolling interest in subsidiary

293

Total tangible common equity

6,674

6,709

6,451

6,166

5,971

Plus: deferred tax - attributed to intangible assets

Total tangible common equity, net of tax

6,677

6,711

6,453

6,168

5,973

Total assets

98,853

92,774

90,970

86,725

83,043

Less: goodwill and intangible assets, net

646

649

651

653

656

Tangible assets

98,207

92,125

90,319

86,072

82,387

Plus: deferred tax - attributed to intangible assets

Total tangible assets, net of tax

98,210

92,127

90,321

86,074

82,389

Tangible common equity ratio (3)

6.8

7.3

7.1

7.2

Common shares outstanding

109.2

109.5

110.2

110.4

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

61.14

61.29

58.56

55.87

54.10

Return on Average Tangible Common Equity:

Three Months Ended

Mar 31, 2026

Dec 31, 2025

Sep 30, 2025

Jun 30, 2025

Mar 31, 2025

(in millions)

Net income available to common shareholders

178.9

282.9

250.2

227.2

195.9

Divided by:

Average stockholders' equity

8,121

7,864

7,607

7,355

6,899

Less:

Average goodwill and intangible assets

648

650

652

655

658

Average preferred stock

295

Average noncontrolling interest

293

Average tangible common equity

6,885

6,625

6,366

6,112

5,930

Return on average tangible common equity (1)

10.5

16.9

15.6

14.9

13.4

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

The adjusted revenue, earnings and return metrics presented below for the three months ended March 31, 2026 exclude the impact to provision for credit losses of charging off the remaining balance of the LAM loan as well as gains from sales of investment securities that were executed as part of the Company's mitigation strategy, as applicable. In addition, net charge-offs for the three months ended March 31, 2026 have been adjusted to exclude the impact of fraud related charge-offs associated with the LAM and Cantor loans.

Net Revenue and Pre-Provision Net Revenue, As Adjusted

(in millions)

Net revenue

1,018.9

Adjusted for:

Gain on sales of investment securities

(50.5

)

Net revenue, as adjusted

968.4

Total non-interest expense

574.4

Pre-provision net revenue, as adjusted (1)

394.0

Less:

Provision for credit losses

213.2

Income tax expense

42.1

Gain on sales of investment securities

(50.5

)

Net income

189.2

Earnings per Share, As Adjusted:

(in millions, except per share data)

Net income

189.2

Adjusted for:

Gain on sales of investment securities

(50.5

)

Provision for credit losses on LAM

126.4

Tax effect of adjustments

(13.8

)

Net income, as adjusted

251.3

Net income attributable to noncontrolling interest

7.1

Dividends on preferred stock

3.2

Net income available to common stockholders, as adjusted

241.0

Diluted shares

108.7

Diluted earnings per share, as adjusted (1)

2.22

Return on Average Assets, As Adjusted:

(dollars in millions)

Net income, as adjusted

251.3

Divided by:

Average Assets

95,602

Return on average assets, as adjusted (1)

1.07

Return on Average Tangible Common Equity, As Adjusted:

(dollars in millions)

Net income available to common stockholders, as adjusted

241.0

Divided by: Average equity

8,121

Less:

Average goodwill and intangible assets

648

Average preferred stock

295

Average noncontrolling interest

293

Average tangible common equity

6,885

Return on average tangible common equity (1)

10.5

Return on average tangible common equity, as adjusted (1)

14.2

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Net Charge-Offs and Net Charge-Offs to Average Loans, As Adjusted:

(dollars in millions)

Net charge-offs

208.5

Adjusted for fraud related charge-offs:

LAM

(126.4

)

Cantor

(26.1

)

Net charge-offs, as adjusted

56.0

Divided by: Average HFI loans

58,184

Net charge-offs to average loans - annualized, as adjusted

0.39

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 the financial condition and capital strength of the Company.