Western Alliance Bancorporation Reports Fourth Quarter and Full Year 2024 Financial Results

PHOENIX--(BUSINESS WIRE)--Western Alliance Bancorporation (NYSE:WAL): FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS Quarter Highlights: Net income Earnings per share PPNR1 Net interest margin Efficiency ratio Book value per common share $216.9 million $1.95 $319.4 million 3.48% 61.2% $58.24 51.1%1, adjusted for deposit costs $52.271, excluding goodwill and intangibles CEO COMMENTARY: “Western Alliance’s diversified, national commercial business strategy continued to drive strong momentum in the fourth quarter with healthy earnings growth, sustained operating leverage, and resilient asset quality,” said Dale Gibbons, Interim Chief Executive Officer and Chief Financial Officer. “Overall, we achieved earnings per share of $1.95 for the quarter, 46.6% higher than Q4 2023, which resulted in a return on tangible common equity1 of 14.6%, while tangible book value per share1 rose 11.9% year-over-year to $52.27. As expected, quarterly deposits declined $1.7 billion, driven by seasonal tax escrow deposit outflows in our Mortgage Warehouse Group, which have already reversed since year end." “Western Alliance’s full year results are a direct reflection of the success of our credit and deposit platforms which position us for a sustained earnings trajectory into 2025, while continuing our focus on asset quality. Net charge-offs to average loans were 0.18% for the year, with a non-performing assets to total assets ratio of 0.65%. Our net revenue growth drove an increase in earnings as PPNR1 climbed 14.1% over the prior year to $1.1 billion, with net income of $788 million and earnings per share up 8.4% to $7.09. Finally, our hearts are heavy given the ongoing Southern California wildfires. We have already taken actions and stand ready to further support our people and communities in their rebuilding efforts.” LINKED-QUARTER BASIS FULL YEAR FINANCIAL HIGHLIGHTS: Net income of $216.9 million and earnings per share of $1.95, up 8.6% and 8.3%, from $199.8 million and $1.80, respectively Net income of $787.7 million and earnings per share of $7.09, up 9.0% and 8.4%, from $722.4 million and $6.54, respectively Net revenue of $838.4 million, an increase of 1.9%, or $15.3 million, compared to a decrease in non-interest expenses of 3.4%, or $18.4 million Net revenue of $3.2 billion, an increase of 20.7%, or $542.5 million, compared to an increase in non-interest expenses of 24.7%, or $401.6 million Pre-provision net revenue1 of $319.4 million, up $33.7 million from $285.7 million Pre-provision net revenue1 of $1.1 billion, up $140.9 million from $996.2 million Effective tax rate of 16.4%, compared to 20.7% Effective tax rate of 20.5%, compared to 22.6% FINANCIAL POSITION RESULTS: HFI loans of $53.7 billion, up $330 million, or 0.6% Increase in HFI loans of $3.4 billion, or 6.7% Total deposits of $66.3 billion, down $1.7 billion, or 2.5% Increase in total deposits of $11.0 billion, or 19.9% HFI loan-to-deposit ratio of 80.9%, up from 78.4% HFI loan-to-deposit ratio of 80.9%, down from 90.9% Stockholders' equity of $6.7 billion, up $30 million Increase in stockholders' equity of $629 million LOANS AND ASSET QUALITY: Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.65%, compared to 0.45% Nonperforming assets to total assets of 0.65%, compared to 0.40% Annualized net loan charge-offs to average loans outstanding of 0.25%, compared to 0.20% Net loan charge-offs to average loans outstanding of 0.18%, compared to 0.06% KEY PERFORMANCE METRICS: Net interest margin of 3.48%, decreased from 3.61% Net interest margin of 3.58%, decreased from 3.63% Return on average assets and on tangible common equity1 of 1.04% and 14.6%, compared to 0.96% and 13.8%, respectively Return on average assets and on tangible common equity1 of 0.99% and 14.0%, compared to 1.03% and 14.9%, respectively Tangible common equity ratio1 of 7.2%, flat from prior quarter Tangible common equity ratio1 of 7.2%, decreased from 7.3% CET 1 ratio of 11.3%, compared to 11.2% CET 1 ratio of 11.3%, compared to 10.8% Tangible book value per share1, net of tax, of $52.27, an increase of 0.6% from $51.98 Tangible book value per share1, net of tax, of $52.27, an increase of 11.9% from $46.72 Adjusted efficiency ratio1 of 51.1%, compared to 52.7% Adjusted efficiency ratio1 of 53.1%, compared to 53.5% 1 See reconciliation of Non-GAAP Financial Measures. Income Statement Net interest income totaled $666.5 million in the fourth quarter 2024, a decrease of $30.4 million, or 4.4%, from $696.9 million in the third quarter 2024, and an increase of $74.8 million, or 12.6%, compared to the fourth quarter 2023. The decrease in net interest income from the third quarter 2024 is due to decreased yields on interest earning assets, partially offset by a decrease in rates on interest-bearing liabilities. The increase in net interest income from the fourth quarter 2023 was driven by an increase in average interest earning asset balances and a decrease in average short-term borrowings, partially offset by an increase in interest expense from higher deposit balances. The Company recorded a provision for credit losses of $60.0 million in the fourth quarter 2024, an increase of $26.4 million from $33.6 million in the third quarter 2024, and an increase of $50.7 million from $9.3 million in the fourth quarter 2023. The provision for credit losses during the fourth quarter 2024 is primarily reflective of net charge-offs of $34.1 million and an incremental qualitative adjustment on the CRE portfolio. The Company’s net interest margin in the fourth quarter 2024 was 3.48%, a decrease from 3.61% in the third quarter 2024, and a decrease from 3.65% in the fourth quarter 2023. The decrease in net interest margin from the third quarter 2024 was driven by lower yields on interest earning assets, partially offset by lower rates on interest-bearing liabilities due to reductions in the federal funds target rate. The decrease in net interest margin from the fourth quarter 2023 was driven primarily by the lower rate environment, resulting in lower yields on interest earning assets. Non-interest income was $171.9 million for the fourth quarter 2024, compared to $126.2 million for the third quarter 2024, and $90.5 million for the fourth quarter 2023. The $45.7 million increase in non-interest income from the third quarter 2024 was primarily due to increases in net gain on loan origination and sale activities of $21.6 million, net loan servicing revenue of $12.4 million, and other non-interest income of $9.0 million. The $81.4 million increase in non-interest income from the fourth quarter 2023 was primarily driven by increases in net gain on loan origination and sale activities and net loan servicing revenue, as well as, net gain on sales of investment securities and income from bank owned life insurance. Net revenue totaled $838.4 million for the fourth quarter 2024, an increase of $15.3 million or 1.9%, compared to $823.1 million for the third quarter 2024, and an increase of $156.2 million or 22.9%, compared to $682.2 million for the fourth quarter 2023. Non-interest expense was $519.0 million for the fourth quarter 2024, compared to $537.4 million for the third quarter 2024, and $461.9 million for the fourth quarter 2023. The Company’s efficiency ratio, adjusted for deposit costs1, was 51.1% for the fourth quarter 2024, compared to 52.7% in the third quarter 2024, and 59.1% for the fourth quarter 2023. The $18.4 million decrease in non-interest expense from the third quarter 2024 is due primarily to a decrease of $33.5 million in deposit costs driven by lower ECR rates, partially offset by an increase in salaries and employee benefits of $7.6 million. The $57.1 million increase in non-interest expense from the fourth quarter 2023 is primarily attributable to an increase in deposit costs of $43.5 million, a non-recurring gain on debt extinguishment of $39.3 million in the fourth quarter of 2023, and increased salaries and employee benefits of $30.8 million. These increases were partially offset by decreased insurance costs of $71.9 million largely related to the FDIC special assessment. Income tax expense was $42.5 million for the fourth quarter 2024, compared to $52.3 million for the third quarter 2024, and $63.1 million for the fourth quarter 2023. The decrease in income tax expense from the third quarter 2024 is primarily related to increased investment tax credit benefits and tax exempt income. The decrease in income tax expense from the fourth quarter 2023 is primarily related to increased investment tax credit benefits. Net income was $216.9 million for the fourth quarter 2024, an increase of $17.1 million from $199.8 million for the third quarter 2024, and an increase of $69.0 million from $147.9 million for the fourth quarter 2023. Earnings per share totaled $1.95 for the fourth quarter 2024, compared to $1.80 for the third quarter 2024, and $1.33 for the fourth quarter 2023. The Company views its pre-provision net revenue1 ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the fourth quarter 2024, the Company’s PPNR1 was $319.4 million, up $33.7 million from $285.7 million in the third quarter 2024, and up $99.1 million from $220.3 million in the fourth quarter 2023. The Company had 3,524 full-time equivalent employees and 56 offices at December 31, 2024, compared to 3,426 full-time equivalent employees and 56 offices at September 30, 2024, and 3,260 full-time equivalent employees and 57 offices at December 31, 2023. 1 See reconciliation of Non-GAAP Financial Measures. Balance Sheet HFI loans, net of deferred fees, totaled $53.7 billion at December 31, 2024, compared to $53.3 billion at September 30, 2024, and $50.3 billion at December 31, 2023. The increase in HFI loans of $330 million from the prior quarter was primarily driven by an increase of $577 million in commercial and industrial loans, partially offset by a decrease of $248 million in construction and land development loans. The increase in HFI loans of $3.4 billion from December 31, 2023 was primarily driven by increases of $4.0 billion and $218 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively, partially offset by decreases of $452 million and $410 million in residential real estate and construction and land development loans, respectively. HFS loans totaled $2.3 billion at December 31, 2024 and September 30, 2024, compared to $1.4 billion at December 31, 2023. 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 0.70%, 0.67%, and 0.67% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.77% at December 31, 2024, 0.74% at September 30, 2024, and 0.73% at December 31, 2023. 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 $8.6 billion, $8.8 billion, and $9.1 billion as of December 31, 2024, September 30, 2024, and December 31, 2023, 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 $11.4 million as of December 31, 2024, $11.8 million as of September 30, 2024, and $14.7 million as of December 31, 2023. 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 0.92% at December 31, 2024, 0.88% at September 30, 2024, and 0.89% at December 31, 2023. Deposits totaled $66.3 billion at December 31, 2024, a decrease of $1.7 billion from $68.0 billion at September 30, 2024, and an increase of $11.0 billion from $55.3 billion at December 31, 2023. By deposit type, the decrease from the prior quarter is attributable to a decrease of $6.1 billion from non-interest bearing deposits due to seasonality in mortgage warehouse deposits, partially offset by increases of $2.0 billion from interest-bearing demand deposits, $1.6 billion from savings and money market deposits, and $755 million from certificates of deposits. From December 31, 2023, savings and money market deposits increased $6.4 billion, non-interest bearing deposits increased $4.3 billion, and certificates of deposit increased $303 million. Non-interest bearing deposits were $18.8 billion at December 31, 2024, compared to $25.0 billion at September 30, 2024, and $14.5 billion at December 31, 2023. The table below shows the Company's deposit types as a percentage of total deposits: Dec 31, 2024 Sep 30, 2024 Dec 31, 2023 Non-interest bearing 28.4 % 36.7 % 26.2 % Interest-bearing demand 23.9 20.3 28.8 Savings and money market 32.0 28.8 26.7 Certificates of deposit 15.7 14.2 18.3 The Company’s ratio of HFI loans to deposits was 80.9% at December 31, 2024, compared to 78.4% at September 30, 2024, and 90.9% at December 31, 2023. Borrowings were $5.6 billion at December 31, 2024, $3.0 billion at September 30, 2024, and $7.2 billion at December 31, 2023. Borrowings increased $2.6 billion from September 30, 2024 primarily due to an increase of $1.6 billion in short-term borrowings and a $993 million increase in long-term borrowings. The decrease in borrowings from December 31, 2023 is primarily due to a decrease in short-term borrowings of $3.6 billion and payoff of the AmeriHome senior notes as part of the Company's balance sheet repositioning, partially offset by an increase in long term borrowings of $2.0 billion. Stockholders’ equity was $6.7 billion at December 31, 2024 and September 30, 2024, compared to $6.1 billion at December 31, 2023. Stockholders’ equity from the prior quarter was relatively flat as net income of $213.7 million was offset by net unrealized fair value losses of $152 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax, and dividends to shareholders. Cash dividends of $41.8 million ($0.38 per common share) and $3.2 million ($0.27 per depository share) were paid to stockholders during the fourth quarter 2024. The increase in stockholders' equity from December 31, 2023 is primarily a function of net income, partially offset by dividends to stockholders and net unrealized fair value losses on available-for-sale securities. The Company's common equity tier 1 capital ratio was 11.3% at December 31, 2024, compared to 11.2% and 10.8% at September 30, 2024 and December 31, 2023, respectively. At December 31, 2024, tangible common equity, net of tax1, was 7.2% of tangible assets1 and total capital was 14.1% of risk-weighted assets. The Company’s tangible book value per share1 was $52.27 at December 31, 2024, an increase of 0.6% from $51.98 at September 30, 2024, and an increase of 11.9% from $46.72 at December 31, 2023. The increase in tangible book value per share from September 30, 2024 and December 31, 2023 is primarily attributable to net income. Total assets increased $854 million, or 1.1%, to $80.9 billion at December 31, 2024 from $80.1 billion at September 30, 2024, and increased 14.2% from $70.9 billion at December 31, 2023. The increase in total assets from September 30, 2024 was primarily driven by increases in cash and due from banks and HFI loans, partially offset by a decrease in investment securities. The increase in total assets from December 31, 2023 was primarily driven by increases in HFI loans, cash and due from banks, and investment securities. 1 See reconciliation of Non-GAAP Financial Measures. Asset Quality Provision for credit losses totaled $60.0 million for the fourth quarter 2024, compared to $33.6 million for the third quarter 2024, and $9.3 million for the fourth quarter 2023. Net loan charge-offs in the fourth quarter 2024 totaled $34.1 million, or 0.25% of average loans (annualized), compared to $26.6 million, or 0.20%, in the third quarter 2024, and $8.5 million, or 0.07%, in the fourth quarter 2023. Nonaccrual loans increased $127 million to $476 million during the quarter and increased $203 million from December 31, 2023. Loans past due 90 days and still accruing interest totaled zero at December 31, 2024, $4 million at September 30, 2024, and $42 million at December 31, 2023 (excluding government guaranteed loans of $326 million, $313 million, and $399 million, respectively). Loans past due 30-89 days and still accruing interest totaled $92 million at December 31, 2024, a decrease from $110 million at September 30, 2024, and from $164 million at December 31, 2023 (excluding government guaranteed loans of $183 million, $203 million, and $279 million, respectively). Repossessed assets totaled $52 million at December 31, 2024, compared to $8 million at September 30, 2024 and December 31, 2023. Classified assets totaled $1.0 billion at December 31, 2024, an increase of $171 million from $838 million at September 30, 2024, and an increase of $336 million from $673 million at December 31, 2023. The ratio of classified assets to Tier 1 capital plus the allowance for credit losses2, a common regulatory measure of asset quality, was 14.2% at December 31, 2024, compared to 12.2% at September 30, 2024, and 10.5% at December 31, 2023. 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 fourth quarter 2024 financial results at 12:00 p.m. ET on Tuesday, January 28, 2025. Participants may access the call by dialing 1-833-470-1428 and using access code 383154 or via live audio webcast using the website link https://events.q4inc.com/attendee/798283184. 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 January 28th through 1:00 p.m. ET February 27th by dialing 1-866-813-9403, using access code 574248. Reclassifications Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported. Use of Non-GAAP Financial Information This press release contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Cautionary Note Regarding Forward-Looking Statements This release contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 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 bank failures in 2023 and any related impact on depositor behavior; risks related to the sufficiency of liquidity; 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; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular. Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. About Western Alliance Bancorporation With more than $80 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, clients benefit from a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2024 by American Banker and Bank Director and receiving #1 rankings on Extel’s (previously Institutional Investor’s) All-America Executive Team Midcap 2024 for Best CEO, Best CFO and Best Company Board of Directors. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit westernalliancebank.com. Western Alliance Bancorporation and Subsidiaries Summary Consolidated Financial Data Unaudited Selected Balance Sheet Data: As of December 31, 2024 2023 Change % (in millions) Total assets $ 80,934 $ 70,862 14.2 % Loans held for sale 2,286 1,402 63.1 HFI loans, net of deferred fees 53,676 50,297 6.7 Investment securities 15,095 12,712 18.7 Total deposits 66,341 55,333 19.9 Borrowings 5,573 7,230 (22.9 ) Qualifying debt 899 895 0.4 Stockholders' equity 6,707 6,078 10.3 Tangible common equity, net of tax (1) 5,755 5,116 12.5 Common equity Tier 1 capital 6,311 5,659 11.5 Selected Income Statement Data: For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 Change % 2024 2023 Change % (in millions, except per share data) (in millions, except per share data) Interest income $ 1,138.6 $ 1,039.0 9.6 % $ 4,541.1 $ 4,035.3 12.5 % Interest expense 472.1 447.3 5.5 1,922.2 1,696.4 13.3 Net interest income 666.5 591.7 12.6 2,618.9 2,338.9 12.0 Provision for credit losses 60.0 9.3 NM 145.9 62.6 NM Net interest income after provision for credit losses 606.5 582.4 4.1 2,473.0 2,276.3 8.6 Non-interest income 171.9 90.5 89.9 543.2 280.7 93.5 Non-interest expense 519.0 461.9 12.4 2,025.0 1,623.4 24.7 Income before income taxes 259.4 211.0 22.9 991.2 933.6 6.2 Income tax expense 42.5 63.1 (32.6 ) 203.5 211.2 (3.6 ) Net income 216.9 147.9 46.7 787.7 722.4 9.0 Dividends on preferred stock 3.2 3.2 — 12.8 12.8 — Net income available to common stockholders $ 213.7 $ 144.7 47.7 $ 774.9 $ 709.6 9.2 Diluted earnings per common share $ 1.95 $ 1.33 46.6 $ 7.09 $ 6.54 8.4 (1) See Reconciliation of Non-GAAP Financial Measures. NM Changes +/- 100% are not meaningful. Western Alliance Bancorporation and Subsidiaries Summary Consolidated Financial Data Unaudited Common Share Data: At or For the Three Months Ended December 31, For the Year Ended December 31, 2024 2023 Change % 2024 2023 Change % Diluted earnings per common share $ 1.95 $ 1.33 46.6 % $ 7.09 $ 6.54 8.4 % Book value per common share 58.24 52.81 10.3 Tangible book value per common share, net of tax (1) 52.27 46.72 11.9 Average common shares outstanding (in millions): Basic 108.7 108.4 0.3 108.6 108.3 0.3 Diluted 109.6 108.7 0.8 109.3 108.5 0.7 Common shares outstanding 110.1 109.5 0.5 Selected Performance Ratios: Return on average assets (2) 1.04 % 0.84 % 23.8 % 0.99 % 1.03 % (3.9 )% Return on average tangible common equity (1, 2) 14.6 11.9 22.7 14.0 14.9 (6.0 ) Net interest margin (2) 3.48 3.65 (4.7 ) 3.58 3.63 (1.4 ) Efficiency ratio, adjusted for deposit costs (1) 51.1 59.1 (13.5 ) 53.1 53.5 (0.7 ) HFI loan to deposit ratio 80.9 90.9 (11.0 ) Asset Quality Ratios: Net charge-offs to average loans outstanding (2) 0.25 % 0.07 % NM 0.18 % 0.06 % NM Nonaccrual loans to funded HFI loans 0.89 0.54 64.8 Nonaccrual loans and repossessed assets to total assets 0.65 0.40 62.5 Allowance for loan losses to funded HFI loans 0.70 0.67 4.5 Allowance for loan losses to nonaccrual HFI loans 79 123 (35.8 ) Capital Ratios: Dec 31, 2024 Sep 30, 2024 Dec 31, 2023 Tangible common equity (1) 7.2 % 7.2 % 7.3 % Common Equity Tier 1 (3) 11.3 11.2 10.8 Tier 1 Leverage ratio (3) 8.1 7.8 8.6 Tier 1 Capital (3) 11.9 11.9 11.5 Total Capital (3) 14.1 14.1 13.7 (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 December 31, 2024 are preliminary. NM Changes +/- 100% are not meaningful. Western Alliance Bancorporation and Subsidiaries Condensed Consolidated Income Statements Unaudited Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 (dollars in millions, except per share data) Interest income: Loans $ 915.2 $ 859.0 $ 3,629.1 $ 3,409.7 Investment securities 179.4 136.2 711.0 467.5 Other 44.0 43.8 201.0 158.1 Total interest income 1,138.6 1,039.0 4,541.1 4,035.3 Interest expense: Deposits 387.2 343.7 1,600.2 1,142.6 Qualifying debt 9.4 9.6 38.0 37.9 Borrowings 75.5 94.0 284.0 515.9 Total interest expense 472.1 447.3 1,922.2 1,696.4 Net interest income 666.5 591.7 2,618.9 2,338.9 Provision for credit losses 60.0 9.3 145.9 62.6 Net interest income after provision for credit losses 606.5 582.4 2,473.0 2,276.3 Non-interest income: Service charges and loan fees 31.7 28.7 96.0 101.0 Net gain on loan origination and sale activities 67.9 47.8 206.3 193.5 Net loan servicing revenue 24.7 9.1 121.5 102.3 Income from bank owned life insurance 12.1 1.0 27.8 4.5 Income from equity investments 11.1 13.1 38.2 15.7 Gain (loss) on sales of investment securities 7.2 (14.8 ) 17.4 (40.8 ) Fair value gain (loss) adjustments, net 2.4 1.3 7.5 (116.0 ) Other 14.8 4.3 28.5 20.5 Total non-interest income 171.9 90.5 543.2 280.7 Non-interest expenses: Salaries and employee benefits 165.4 134.6 631.1 566.3 Deposit costs 174.5 131.0 693.2 436.7 Data processing 39.3 33.1 149.7 122.0 Insurance 36.7 108.6 164.8 190.4 Legal, professional, and directors' fees 28.7 29.4 109.4 107.2 Occupancy 19.6 16.9 73.1 65.6 Loan servicing expenses 17.8 14.7 68.1 58.8 Business development and marketing 11.1 6.7 32.7 21.8 Loan acquisition and origination expenses 5.7 4.8 21.5 20.4 Gain on extinguishment of debt — (39.3 ) — (52.7 ) Other 20.2 21.4 81.4 86.9 Total non-interest expense 519.0 461.9 2,025.0 1,623.4 Income before income taxes 259.4 211.0 991.2 933.6 Income tax expense 42.5 63.1 203.5 211.2 Net income 216.9 147.9 787.7 722.4 Dividends on preferred stock 3.2 3.2 12.8 12.8 Net income available to common stockholders $ 213.7 $ 144.7 $ 774.9 $ 709.6 Earnings per common share: Diluted shares 109.6 108.7 109.3 108.5 Diluted earnings per share $ 1.95 $ 1.33 $ 7.09 $ 6.54 Western Alliance Bancorporation and Subsidiaries Five Quarter Condensed Consolidated Income Statements Unaudited Three Months Ended Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (in millions, except per share data) Interest income: Loans $ 915.2 $ 945.3 $ 896.7 $ 871.9 $ 859.0 Investment securities 179.4 197.1 190.5 144.0 136.2 Other 44.0 57.6 60.3 39.1 43.8 Total interest income 1,138.6 1,200.0 1,147.5 1,055.0 1,039.0 Interest expense: Deposits 387.2 422.1 410.3 380.6 343.7 Qualifying debt 9.4 9.5 9.6 9.5 9.6 Borrowings 75.5 71.5 71.0 66.0 94.0 Total interest expense 472.1 503.1 490.9 456.1 447.3 Net interest income 666.5 696.9 656.6 598.9 591.7 Provision for credit losses 60.0 33.6 37.1 15.2 9.3 Net interest income after provision for credit losses 606.5 663.3 619.5 583.7 582.4 Non-interest income: Service charges and loan fees 31.7 30.1 17.8 16.4 28.7 Net gain on loan origination and sale activities 67.9 46.3 46.8 45.3 47.8 Net loan servicing revenue 24.7 12.3 38.1 46.4 9.1 Income from bank owned life insurance 12.1 13.0 1.7 1.0 1.0 Income from equity investments 11.1 5.8 4.2 17.1 13.1 Gain (loss) on sales of investment securities 7.2 8.8 2.3 (0.9 ) (14.8 ) Fair value gain (loss) adjustments, net 2.4 4.1 0.7 0.3 1.3 Other 14.8 5.8 3.6 4.3 4.3 Total non-interest income 171.9 126.2 115.2 129.9 90.5 Non-interest expenses: Salaries and employee benefits 165.4 157.8 153.0 154.9 134.6 Deposit costs 174.5 208.0 173.7 137.0 131.0 Data processing 39.3 38.7 35.7 36.0 33.1 Insurance 36.7 35.4 33.8 58.9 108.6 Legal, professional, and directors' fees 28.7 24.8 25.8 30.1 29.4 Occupancy 19.6 17.6 18.4 17.5 16.9 Loan servicing expenses 17.8 18.7 16.6 15.0 14.7 Business development and marketing 11.1 9.7 6.4 5.5 6.7 Loan acquisition and origination expenses 5.7 5.9 5.1 4.8 4.8 Gain on extinguishment of debt — — — — (39.3 ) Other 20.2 20.8 18.3 22.1 21.4 Total non-interest expense 519.0 537.4 486.8 481.8 461.9 Income before income taxes 259.4 252.1 247.9 231.8 211.0 Income tax expense 42.5 52.3 54.3 54.4 63.1 Net income 216.9 199.8 193.6 177.4 147.9 Dividends on preferred stock 3.2 3.2 3.2 3.2 3.2 Net income available to common stockholders $ 213.7 $ 196.6 $ 190.4 $ 174.2 $ 144.7 Earnings per common share: Diluted shares 109.6 109.5 109.1 109.0 108.7 Diluted earnings per share $ 1.95 $ 1.80 $ 1.75 $ 1.60 $ 1.33 Western Alliance Bancorporation and Subsidiaries Five Quarter Condensed Consolidated Balance Sheets Unaudited Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (in millions) Assets: Cash and due from banks $ 4,096 $ 2,592 $ 4,077 $ 3,550 $ 1,576 Investment securities 15,095 16,382 17,268 16,092 12,712 Loans held for sale 2,286 2,327 2,007 1,841 1,402 Loans held for investment: Commercial and industrial 23,128 22,551 21,690 19,749 19,103 Commercial real estate - non-owner occupied 9,868 9,801 9,647 9,637 9,650 Commercial real estate - owner occupied 1,825 1,817 1,886 1,859 1,810 Construction and land development 4,479 4,727 4,712 4,781 4,889 Residential real estate 14,326 14,395 14,445 14,624 14,778 Consumer 50 55 50 50 67 Loans HFI, net of deferred fees 53,676 53,346 52,430 50,700 50,297 Allowance for loan losses (374 ) (357 ) (352 ) (340 ) (337 ) Loans HFI, net of deferred fees and allowance 53,302 52,989 52,078 50,360 49,960 Mortgage servicing rights 1,127 1,011 1,145 1,178 1,124 Premises and equipment, net 361 354 351 344 339 Operating lease right-of-use asset 128 127 133 139 145 Other assets acquired through foreclosure, net 52 8 8 8 8 Bank owned life insurance 1,011 1,000 187 187 186 Goodwill and other intangibles, net 659 661 664 666 669 Other assets 2,817 2,629 2,663 2,624 2,741 Total assets $ 80,934 $ 80,080 $ 80,581 $ 76,989 $ 70,862 Liabilities and Stockholders' Equity: Liabilities: Deposits Non-interest bearing deposits $ 18,846 $ 24,965 $ 21,522 $ 18,399 $ 14,520 Interest bearing: Demand 15,878 13,846 17,267 16,965 15,916 Savings and money market 21,208 19,575 17,087 16,194 14,791 Certificates of deposit 10,409 9,654 10,368 10,670 10,106 Total deposits 66,341 68,040 66,244 62,228 55,333 Borrowings 5,573 2,995 5,587 6,221 7,230 Qualifying debt 899 898 897 896 895 Operating lease liability 159 159 165 172 179 Accrued interest payable and other liabilities 1,255 1,311 1,354 1,300 1,147 Total liabilities 74,227 73,403 74,247 70,817 64,784 Stockholders' Equity: Preferred stock 295 295 295 295 295 Common stock and additional paid-in capital 2,120 2,110 2,099 2,087 2,081 Retained earnings 4,826 4,654 4,498 4,348 4,215 Accumulated other comprehensive loss (534 ) (382 ) (558 ) (558 ) (513 ) Total stockholders' equity 6,707 6,677 6,334 6,172 6,078 Total liabilities and stockholders' equity $ 80,934 $ 80,080 $ 80,581 $ 76,989 $ 70,862 Western Alliance Bancorporation and Subsidiaries Changes in the Allowance For Credit Losses on Loans Unaudited Three Months Ended Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (in millions) Allowance for loan losses Balance, beginning of period $ 356.6 $ 351.8 $ 340.3 $ 336.7 $ 327.4 Provision for credit losses (1) 51.3 31.4 34.3 13.4 17.8 Recoveries of loans previously charged-off: Commercial and industrial 0.1 0.5 0.1 0.4 0.7 Commercial real estate - non-owner occupied — 0.7 — — — Commercial real estate - owner occupied 0.2 — — — 0.1 Construction and land development — — — — — Residential real estate — — — — — Consumer — — — — — Total recoveries 0.3 1.2 0.1 0.4 0.8 Loans charged-off: Commercial and industrial 24.8 4.3 5.3 2.3 9.3 Commercial real estate - non-owner occupied 9.6 21.7 17.6 7.9 — Commercial real estate - owner occupied — 0.3 — — — Construction and land development — 1.5 — — — Residential real estate — — — — — Consumer — — — — — Total loans charged-off 34.4 27.8 22.9 10.2 9.3 Net loan charge-offs 34.1 26.6 22.8 9.8 8.5 Balance, end of period $ 373.8 $ 356.6 $ 351.8 $ 340.3 $ 336.7 Allowance for unfunded loan commitments Balance, beginning of period $ 37.6 $ 35.9 $ 33.1 $ 31.6 $ 37.9 Provision for (recovery of) credit losses (1) 1.9 1.7 2.8 1.5 (6.3 ) Balance, end of period (2) $ 39.5 $ 37.6 $ 35.9 $ 33.1 $ 31.6 Components of the allowance for credit losses on loans Allowance for loan losses $ 373.8 $ 356.6 $ 351.8 $ 340.3 $ 336.7 Allowance for unfunded loan commitments 39.5 37.6 35.9 33.1 31.6 Total allowance for credit losses on loans $ 413.3 $ 394.2 $ 387.7 $ 373.4 $ 368.3 Net charge-offs to average loans - annualized 0.25 % 0.20 % 0.18 % 0.08 % 0.07 % Allowance ratios Allowance for loan losses to funded HFI loans (3) 0.70 % 0.67 % 0.67 % 0.67 % 0.67 % Allowance for credit losses to funded HFI loans (3) 0.77 0.74 0.74 0.74 0.73 Allowance for loan losses to nonaccrual HFI loans 79 102 88 85 123 Allowance for credit losses to nonaccrual HFI loans 87 113 97 94 135 (1) The above tables reflect the provision for credit losses on funded and unfunded loans. There was no provision on AFS investment securities and a $6.8 million provision for credit losses on HTM investment securities for the three months ended December 31, 2024. The allowance for credit losses on AFS and HTM investment securities totaled $0.4 million and $16.4 million, respectively, as of December 31, 2024. (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 $11.4 million as of December 31, 2024 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 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (in millions) Nonaccrual loans and repossessed assets Nonaccrual loans $ 476 $ 349 $ 401 $ 399 $ 273 Nonaccrual loans to funded HFI loans 0.89 % 0.65 % 0.76 % 0.79 % 0.54 % Repossessed assets $ 52 $ 8 $ 8 $ 8 $ 8 Nonaccrual loans and repossessed assets to total assets 0.65 % 0.45 % 0.51 % 0.53 % 0.40 % Loans Past Due Loans past due 90 days, still accruing (1) $ — $ 4 $ — $ 6 $ 42 Loans past due 90 days, still accruing to funded HFI loans — % 0.01 % — % 0.01 % 0.08 % Loans past due 30 to 89 days, still accruing (2) $ 92 $ 110 $ 83 $ 117 $ 164 Loans past due 30 to 89 days, still accruing to funded HFI loans 0.17 % 0.21 % 0.16 % 0.23 % 0.33 % Other credit quality metrics Special mention loans $ 392 $ 502 $ 532 $ 394 $ 641 Special mention loans to funded HFI loans 0.73 % 0.94 % 1.01 % 0.78 % 1.27 % Classified loans on accrual $ 480 $ 479 $ 328 $ 361 $ 379 Classified loans on accrual to funded HFI loans 0.89 % 0.90 % 0.63 % 0.71 % 0.75 % Classified assets $ 1,009 $ 838 $ 748 $ 781 $ 673 Classified assets to total assets 1.25 % 1.05 % 0.93 % 1.01 % 0.95 % (1) Excludes government guaranteed residential mortgage loans of $326 million, $313 million, $330 million, $349 million, and $399 million as of each respective date in the table above. (2) Excludes government guaranteed residential mortgage loans of $183 million, $203 million, $221 million, $224 million, and $279 million as of each respective date in the table above. Western Alliance Bancorporation and Subsidiaries Analysis of Average Balances, Yields and Rates Unaudited Three Months Ended December 31, 2024 September 30, 2024 Average Balance Interest Average Yield / Cost Average Balance Interest Average Yield / Cost ($ in millions) Interest earning assets Loans HFS $ 4,542 $ 67.3 5.90 % $ 4,288 $ 66.9 6.21 % Loans held for investment: Commercial and industrial 22,708 382.8 6.76 21,982 392.0 7.15 CRE - non-owner occupied 9,883 184.1 7.42 9,689 190.4 7.82 CRE - owner occupied 1,826 27.7 6.14 1,833 28.2 6.23 Construction and land development 4,571 100.1 8.72 4,757 110.7 9.26 Residential real estate 14,424 152.3 4.20 14,441 156.1 4.30 Consumer 52 0.9 6.57 53 1.0 7.28 Total HFI loans (1), (2), (3) 53,464 847.9 6.34 52,755 878.4 6.65 Investment securities: Taxable 13,550 155.0 4.55 14,321 173.4 4.82 Tax-exempt 2,269 24.4 5.36 2,225 23.7 5.33 Total investment securities (1) 15,819 179.4 4.67 16,546 197.1 4.89 Cash and other 3,481 44.0 5.03 4,206 57.6 5.44 Total interest earning assets 77,306 1,138.6 5.91 77,795 1,200.0 6.19 Non-interest earning assets Cash and due from banks 316 278 Allowance for credit losses (364 ) (366 ) Bank owned life insurance 1,003 973 Other assets 4,427 4,409 Total assets $ 82,688 $ 83,089 Interest-bearing liabilities Interest-bearing deposits: Interest-bearing demand accounts $ 14,555 $ 101.3 2.77 % $ 16,456 $ 126.2 3.05 % Savings and money market 19,895 167.8 3.36 18,092 166.3 3.66 Certificates of deposit 9,654 118.1 4.87 10,134 129.6 5.09 Total interest-bearing deposits 44,104 387.2 3.49 44,682 422.1 3.76 Short-term borrowings 3,480 45.8 5.24 4,214 57.8 5.46 Long-term debt 1,861 29.7 6.34 569 13.7 9.57 Qualifying debt 898 9.4 4.19 897 9.5 4.23 Total interest-bearing liabilities 50,343 472.1 3.73 50,362 503.1 3.97 Interest cost of funding earning assets 2.43 2.58 Non-interest-bearing liabilities Non-interest-bearing deposits 24,200 24,638 Other liabilities 1,380 1,457 Stockholders’ equity 6,765 6,632 Total liabilities and stockholders' equity $ 82,688 $ 83,089 Net interest income and margin (4) $ 666.5 3.48 % $ 696.9 3.61 % (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million for each of the three months ended December 31, 2024 and September 30, 2024. (2) Included in the yield computation are net loan fees of $22.1 million and $21.7 million for the three months ended December 31, 2024 and September 30, 2024, respectively. (3) Includes non-accrual loans. (4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. Western Alliance Bancorporation and Subsidiaries Analysis of Average Balances, Yields and Rates Unaudited Three Months Ended December 31, 2024 December 31, 2023 Average Balance Interest Average Yield / Cost Average Balance Interest Average Yield / Cost ($ in millions) Interest earning assets Loans held for sale $ 4,542 $ 67.3 5.90 % $ 1,830 $ 29.6 6.42 % Loans HFI: Commercial and industrial 22,708 382.8 6.76 18,530 343.2 7.40 CRE - non-owner occupied 9,883 184.1 7.42 9,715 188.7 7.71 CRE - owner occupied 1,826 27.7 6.14 1,786 26.0 5.88 Construction and land development 4,571 100.1 8.72 4,789 112.6 9.33 Residential real estate 14,424 152.3 4.20 14,758 157.6 4.24 Consumer 52 0.9 6.57 71 1.3 7.52 Total loans HFI (1), (2), (3) 53,464 847.9 6.34 49,649 829.4 6.65 Investment securities: Taxable 13,550 155.0 4.55 9,168 113.5 4.91 Tax-exempt 2,269 24.4 5.36 2,106 22.7 5.35 Total investment securities (1) 15,819 179.4 4.67 11,274 136.2 4.99 Cash and other 3,481 44.0 5.03 2,572 43.8 6.75 Total interest earning assets 77,306 1,138.6 5.91 65,325 1,039.0 6.37 Non-interest earning assets Cash and due from banks 316 287 Allowance for credit losses (364 ) (340 ) Bank owned life insurance 1,003 185 Other assets 4,427 4,525 Total assets $ 82,688 $ 69,982 Interest bearing liabilities Interest bearing deposits: Interest bearing demand accounts $ 14,555 $ 101.3 2.77 % $ 14,268 $ 104.6 2.91 % Savings and money market accounts 19,895 167.8 3.36 14,595 119.1 3.24 Certificates of deposit 9,654 118.1 4.87 9,453 120.0 5.03 Total interest bearing deposits 44,104 387.2 3.49 38,316 343.7 3.56 Short-term borrowings 3,480 45.8 5.24 5,492 79.4 5.74 Long-term debt 1,861 29.7 6.34 594 14.6 9.73 Qualifying debt 898 9.4 4.19 891 9.6 4.26 Total interest bearing liabilities 50,343 472.1 3.73 45,293 447.3 3.92 Interest cost of funding earning assets 2.43 2.72 Non-interest bearing liabilities Non-interest bearing deposits 24,200 17,579 Other liabilities 1,380 1,330 Stockholders’ equity 6,765 5,780 Total liabilities and stockholders' equity $ 82,688 $ 69,982 Net interest income and margin (4) $ 666.5 3.48 % $ 591.7 3.65 % (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $9.1 million for the three months ended December 31, 2024 and 2023, respectively. (2) Included in the yield computation are net loan fees of $22.1 million and $30.8 million for the three months ended December 31, 2024 and 2023, respectively. (3) Includes non-accrual loans. (4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. Western Alliance Bancorporation and Subsidiaries Analysis of Average Balances, Yields and Rates Unaudited Year Ended December 31, 2024 December 31, 2023 Average Balance Interest Average Yield / Cost Average Balance Interest Average Yield / Cost ($ in millions) Interest earning assets Loans HFS $ 3,531 $ 216.4 6.13 % $ 3,347 $ 213.4 6.38 % Loans HFI: Commercial and industrial 20,845 1,490.6 7.21 17,886 1,337.9 7.54 CRE - non-owner occupied 9,681 744.7 7.70 9,736 734.8 7.56 CRE - owner occupied 1,833 111.2 6.17 1,800 102.3 5.79 Construction and land development 4,747 440.1 9.28 4,498 419.7 9.33 Residential real estate 14,529 622.3 4.28 15,126 596.4 3.94 Consumer 54 3.8 7.00 72 5.2 7.23 Total loans HFI (1), (2), (3) 51,689 3,412.7 6.63 49,118 3,196.3 6.53 Investment securities: Taxable 13,159 616.0 4.68 8,002 381.3 4.76 Tax-exempt 2,230 95.0 5.34 2,097 86.2 5.15 Total investment securities (1) 15,389 711.0 4.78 10,099 467.5 4.84 Cash and other 3,656 201.0 5.50 2,848 158.1 5.55 Total interest earning assets 74,265 4,541.1 6.17 65,412 4,035.3 6.22 Non-interest earning assets Cash and due from banks 293 273 Allowance for credit losses (357 ) (326 ) Bank owned life insurance 589 183 Other assets 4,483 4,581 Total assets $ 79,273 $ 70,123 Interest bearing liabilities Interest bearing deposits: Interest bearing demand accounts $ 16,155 $ 480.7 2.98 % $ 12,422 $ 352.0 2.83 % Savings and money market accounts 17,462 610.2 3.49 14,903 428.1 2.87 Certificates of deposit 10,085 509.3 5.05 7,945 362.5 4.56 Total interest bearing deposits 43,702 1,600.2 3.66 35,270 1,142.6 3.24 Short-term borrowings 3,893 216.3 5.56 7,800 434.6 5.57 Long-term debt 830 67.7 8.16 862 81.3 9.43 Qualifying debt 896 38.0 4.25 892 37.9 4.25 Total interest bearing liabilities 49,321 1,922.2 3.90 44,824 1,696.4 3.78 Interest cost of funding earning assets 2.59 2.59 Non-interest bearing liabilities Non-interest bearing deposits 22,017 18,293 Other liabilities 1,455 1,287 Stockholders’ equity 6,480 5,719 Total liabilities and stockholders' equity $ 79,273 $ 70,123 Net interest income and margin (4) $ 2,618.9 3.58 % $ 2,338.9 3.63 % (1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $39.5 million and $35.5 million for the year ended December 31, 2024 and 2023, respectively. (2) Included in the yield computation are net loan fees of $109.0 million and $131.2 million for the year ended December 31, 2024 and 2023, respectively. (3) Includes non-accrual loans. (4) Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis. Western Alliance Bancorporation and Subsidiaries Reconciliation of Non-GAAP Financial Measures Unaudited Pre-Provision Net Revenue by Quarter: Three Months Ended Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (in millions) Net interest income $ 666.5 $ 696.9 $ 656.6 $ 598.9 $ 591.7 Total non-interest income 171.9 126.2 115.2 129.9 90.5 Net revenue $ 838.4 $ 823.1 $ 771.8 $ 728.8 $ 682.2 Total non-interest expense 519.0 537.4 486.8 481.8 461.9 Pre-provision net revenue (1) $ 319.4 $ 285.7 $ 285.0 $ 247.0 $ 220.3 Adjusted for: Provision for credit losses 60.0 33.6 37.1 15.2 9.3 Income tax expense 42.5 52.3 54.3 54.4 63.1 Net income $ 216.9 $ 199.8 $ 193.6 $ 177.4 $ 147.9 Efficiency Ratio (Tax Equivalent Basis) by Quarter: Three Months Ended Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (dollars in millions) Total non-interest expense $ 519.0 $ 537.4 $ 486.8 $ 481.8 $ 461.9 Less: Deposit costs 174.5 208.0 173.7 137.0 131.0 Total non-interest expense, excluding deposit costs 344.5 329.4 313.1 344.8 330.9 Divided by: Total net interest income 666.5 696.9 656.6 598.9 591.7 Plus: Tax equivalent interest adjustment 10.0 10.0 9.9 9.6 9.1 Total non-interest income 171.9 126.2 115.2 129.9 90.5 Less: Deposit costs 174.5 208.0 173.7 137.0 131.0 $ 673.9 $ 625.1 $ 608.0 $ 601.4 $ 560.3 Efficiency ratio (2) 61.2 % 64.5 % 62.3 % 65.2 % 66.8 % Efficiency ratio, adjusted for deposit costs (2) 51.1 % 52.7 % 51.5 % 57.3 % 59.1 % Tangible Common Equity: Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 (dollars and shares in millions, except per share data) Total stockholders' equity $ 6,707 $ 6,677 $ 6,334 $ 6,172 $ 6,078 Less: Goodwill and intangible assets 659 661 664 666 669 Preferred stock 295 295 295 295 295 Total tangible common equity 5,753 5,721 5,375 5,211 5,114 Plus: deferred tax - attributed to intangible assets 2 2 2 2 2 Total tangible common equity, net of tax $ 5,755 $ 5,723 $ 5,377 $ 5,213 $ 5,116 Total assets $ 80,934 $ 80,080 $ 80,581 $ 76,989 $ 70,862 Less: goodwill and intangible assets, net 659 661 664 666 669 Tangible assets 80,275 79,419 79,917 76,323 70,193 Plus: deferred tax - attributed to intangible assets 2 2 2 2 2 Total tangible assets, net of tax $ 80,277 $ 79,421 $ 79,919 $ 76,325 $ 70,195 Tangible common equity ratio (3) 7.2 % 7.2 % 6.7 % 6.8 % 7.3 % Common shares outstanding 110.1 110.1 110.2 110.2 109.5 Tangible book value per share, net of tax (3) $ 52.27 $ 51.98 $ 48.79 $ 47.30 $ 46.72 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.

Western Alliance Bancorporation Reports Fourth Quarter and Full Year 2024 Financial Results

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