Western Alliance Bancorporation Reports Third Quarter 2024 Financial Results

Rhea-AI Summary

Western Alliance Bancorporation (NYSE:WAL) reported its third quarter 2024 financial results. The company achieved a net income of $199.8 million, with earnings per share (EPS) of $1.80. Key metrics include a net interest margin of 3.61%, and a tangible book value per share of $51.98, rising 19.1% year-over-year. Total deposits increased by $1.8 billion to $68.0 billion, while HFI loans grew by $916 million to $53.3 billion. The efficiency ratio stood at 52.7%, adjusted for deposit costs. Asset quality remained stable with nonperforming assets at 0.45% of total assets and net loan charge-offs at 0.20% of average loans. Net interest income rose to $696.9 million, up 6.1% from the prior quarter. Non-interest income increased to $126.2 million, driven by higher service charges and loan fees. However, non-interest expenses also rose to $537.4 million, primarily due to increased deposit costs. The CET1 ratio improved to 11.2%, and the tangible common equity ratio increased to 7.2%.

Positive

• Net income increased to $199.8 million, up 3.2% quarter-over-quarter.
• EPS rose to $1.80, up from $1.75 in the prior quarter.
• Total deposits grew by $1.8 billion to $68.0 billion.
• HFI loans increased by $916 million to $53.3 billion.
• Tangible book value per share rose 19.1% year-over-year to $51.98.
• Net interest income increased by 6.1% to $696.9 million.
• Non-interest income increased to $126.2 million, up from $115.2 million in the prior quarter.
• CET1 ratio improved to 11.2% from 11.0%.

Negative

• Non-interest expenses increased by 10.4% to $537.4 million.
• Net income decreased 7.8% year-over-year from $216.6 million.
• EPS decreased 8.6% year-over-year from $1.97.
• Net interest margin decreased to 3.61% from 3.63% in the prior quarter.
• Provision for credit losses increased to $33.6 million, up from $12.1 million year-over-year.

Insights

Financial Analyst

Western Alliance Bancorporation delivered solid Q3 2024 results, with net income of $199.8 million and EPS of $1.80. Key highlights include:

• Strong loan and deposit growth of $916 million and $1.8 billion respectively
• Pre-provision net revenue of $285.7 million
• Net interest margin of 3.61%
• Improved asset quality with nonperforming assets ratio declining to 0.45%

The bank's performance demonstrates resilience in a challenging environment. Continued growth in loans and deposits, along with stable asset quality, indicate sound fundamentals. However, the slight decrease in net interest margin and increased efficiency ratio suggest some pressure on profitability. The 19.1% year-over-year increase in tangible book value per share to $51.98 is a positive sign for shareholder value creation.

Banking Industry Expert

Western Alliance's Q3 results reflect the broader trends in the banking sector. The 3.61% net interest margin, while down slightly, remains healthy compared to peers. The bank's ability to grow deposits by 25.3% year-over-year is impressive, especially given recent industry challenges.

The increase in non-interest expenses and efficiency ratio warrants attention, as it may impact future profitability if not managed carefully. The 11.2% CET1 ratio indicates strong capital position, providing a buffer against potential economic headwinds.

The growth in commercial and industrial loans suggests the bank is capitalizing on business lending opportunities. However, the slight uptick in classified assets and net charge-offs should be monitored, although they remain at manageable levels. Overall, Western Alliance appears well-positioned in the current banking landscape.

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

THIRD QUARTER 2024 FINANCIAL RESULTS

Quarter Highlights:
Net income		Earnings per share		PPNR1		Net interest margin		Efficiency ratio		Book value per common share
$199.8 million		$1.80		$285.7 million		3.61%		64.5%		$57.97
								52.7%1, adjusted for deposit costs		$51.981, excluding goodwill and intangibles

CEO COMMENTARY:

“Western Alliance delivered solid third quarter results featuring strong net interest income growth, continued loan and deposit momentum, and healthy earnings generation,” said Kenneth A. Vecchione, President and Chief Executive Officer. “Quarterly loan and deposit growth of $916 million and $1.8 billion, respectively, continued their upward trajectory and produced PPNR1 of $285.7 million. Asset quality remained stable with our nonperforming assets to total assets ratio declining to 0.45% and net loan charge-offs of 0.20% of average loans. Overall, we achieved net income of $199.8 million and earnings per share of $1.80 for the third quarter 2024, which resulted in a return on tangible common equity1 of 13.8%. Tangible book value per share1 climbed 19.1% year-over-year to $51.98 with a CET1 ratio of 11.2%.

LINKED-QUARTER BASIS	YEAR-OVER-YEAR
FINANCIAL HIGHLIGHTS:
Net income of $199.8 million and earnings per share of $1.80, up 3.2% and 2.9%, from $193.6 million and $1.75, respectively	Net income of $199.8 million and earnings per share of $1.80, down 7.8% and 8.6%, from $216.6 million and $1.97, respectively
Net revenue of $823.1 million, an increase of 6.6%, or $51.3 million, compared to an increase in non-interest expenses of 10.4%, or $50.6 million	Net revenue of $823.1 million, an increase of 14.9%, or $106.9 million, compared to an increase in non-interest expenses of 26.1%, or $111.2 million
Pre-provision net revenue1 of $285.7 million, up $0.7 million from $285.0 million	Pre-provision net revenue1 of $285.7 million, down $4.3 million from $290.0 million
Effective tax rate of 20.7%, compared to 21.9%	Effective tax rate of 20.7%, compared to 22.1%
FINANCIAL POSITION RESULTS:
HFI loans of $53.3 billion, up $916 million, or 1.7%	Increase in HFI loans of $3.9 billion, or 7.9%
Total deposits of $68.0 billion, up $1.8 billion, or 2.7%	Increase in total deposits of $13.8 billion, or 25.3%
HFI loan-to-deposit ratio of 78.4%, down from 79.1%	HFI loan-to-deposit ratio of 78.4%, down from 91.1%
Stockholders' equity of $6.7 billion, up $343 million	Increase in stockholders' equity of $931 million
LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.45%, compared to 0.51%	Nonperforming assets to total assets of 0.45%, compared to 0.35%
Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.18%	Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.07%
KEY PERFORMANCE METRICS:
Net interest margin of 3.61%, decreased from 3.63%	Net interest margin of 3.61%, decreased from 3.67%
Return on average assets and on tangible common equity1 of 0.96% and 13.8%, compared to 0.99% and 14.3%, respectively	Return on average assets and on tangible common equity1 of 0.96% and 13.8%, compared to 1.24% and 17.3%, respectively
Tangible common equity ratio1 of 7.2%, increased from 6.7%	Tangible common equity ratio1 of 7.2%, increased from 6.8%
CET 1 ratio of 11.2%, compared to 11.0%	CET 1 ratio of 11.2%, compared to 10.6%
Tangible book value per share1, net of tax, of $51.98, an increase of 6.5% from $48.79	Tangible book value per share1, net of tax, of $51.98, an increase of 19.1% from $43.66
Adjusted efficiency ratio1 of 52.7%, compared to 51.5%	Adjusted efficiency ratio1 of 52.7%, compared to 50.0%
1 See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income totaled $696.9 million in the third quarter 2024, an increase of $40.3 million, or 6.1%, from $656.6 million in the second quarter 2024, and an increase of $109.9 million, or 18.7%, compared to the third quarter 2023. The increase in net interest income from the second quarter 2024 is due to an increase in average HFI and HFS loan balances, partially offset by a decrease in HFI loan yields. The increase in net interest income from the third quarter 2023 was driven by an increase in average HFI loan and investment securities balances, partially offset by higher balances and rates on deposits and a lower yields on HFI loans.

The Company recorded a provision for credit losses of $33.6 million in the third quarter 2024, a decrease of $3.5 million from $37.1 million in the second quarter 2024, and an increase of $21.5 million from $12.1 million in the third quarter 2023. The provision for credit losses during the third quarter 2024 is primarily reflective of net-charge offs of $26.6 million and loan growth.

The Company’s net interest margin in the third quarter 2024 was 3.61%, a decrease from 3.63% in the second quarter 2024, and a decrease from 3.67% in the third quarter 2023. The decrease in net interest margin from the second quarter 2024 was driven by lower yields on HFI loans. The decrease in net interest margin from the third quarter 2023 was driven by lower HFI loan yields and higher deposit rates.

Non-interest income was $126.2 million for the third quarter 2024, compared to $115.2 million for the second quarter 2024, and $129.2 million for the third quarter 2023. The $11.0 million increase in non-interest income from the second quarter 2024 was primarily due to increases in service charges and loan fees of $12.3 million, gain on sales of investment securities of $6.5 million, and other non-interest income of $10.8 million primarily from income on recently purchased bank owned life insurance policies. These increases were partially offset by a decrease of $25.8 million in net loan servicing revenue due to higher MSR fair value losses combined with lower servicing income. The $3.0 million decrease in non-interest income from the third quarter 2023 was primarily driven by lower net loan servicing revenue and lower fair value gain adjustments, partially offset by higher other non-interest income due to income on new bank owned life insurance policies.

Net revenue totaled $823.1 million for the third quarter 2024, an increase of $51.3 million or 6.6%, compared to $771.8 million for the second quarter 2024, and an increase of $106.9 million or 14.9%, compared to $716.2 million for the third quarter 2023.

Non-interest expense was $537.4 million for the third quarter 2024, compared to $486.8 million for the second quarter 2024, and $426.2 million for the third quarter 2023. The Company’s efficiency ratio, adjusted for deposit costs¹ was 52.7% for the third quarter 2024, compared to 51.5% in the second quarter 2024, and 50.0% for the third quarter 2023. The increase in non-interest expense from the second quarter 2024 is due primarily to an increase of $34.3 million in deposit costs. The increase in non-interest expense from the third quarter 2023 is primarily attributable to an increase in deposit costs and salaries and employee benefits.

Income tax expense was $52.3 million for the third quarter 2024, compared to $54.3 million for the second quarter 2024, and $61.3 million for the third quarter 2023. The decrease in income tax expense from the second quarter 2024 is primarily related to increased expected utilization of tax credits. The decrease in income tax expense from the third quarter 2023 is primarily related to lower pre-tax income.

Net income was $199.8 million for the third quarter 2024, an increase of $6.2 million from $193.6 million for the second quarter 2024, and a decrease of $16.8 million from $216.6 million for the third quarter 2023. Earnings per share totaled $1.80 for the third quarter 2024, compared to $1.75 for the second quarter 2024, and $1.97 for the third 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 third quarter 2024, the Company’s PPNR¹ was $285.7 million, up $0.7 million from $285.0 million in the second quarter 2024, and down $4.3 million from $290.0 million in the third quarter 2023.

The Company had 3,426 full-time equivalent employees and 56 offices at September 30, 2024, compared to 3,310 full-time equivalent employees and 56 offices at June 30, 2024, and 3,272 full-time equivalent employees and 56 offices at September 30, 2023.

1 See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees totaled $53.3 billion at September 30, 2024, compared to $52.4 billion at June 30, 2024, and $49.4 billion at September 30, 2023. The increase in HFI loans of $916 million from the prior quarter was primarily driven by increases of $861 million and $154 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively, partially offset by decreases of $69 million and $50 million in commercial real estate owner occupied and residential real estate loans, respectively. The increase in HFI loans of $3.9 billion from September 30, 2023 was primarily driven by an increase of $4.2 billion in commercial and industrial loans, partially offset by a decrease of $384 million in residential real estate loans. HFS loans totaled $2.3 billion at September 30, 2024, compared to $2.0 billion at June 30, 2024, and $1.8 billion at September 30, 2023. The increases of $320 million and $561 million in HFS loans from June 30, 2024 and September 30, 2023, respectively, are primarily related to an increase in agency conforming 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 0.67%, 0.67%, and 0.66% at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.74% at September 30, 2024, June 30, 2024, and September 30, 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 $8.8 billion, $8.9 billion, and $9.3 billion as of September 30, 2024, June 30, 2024, and September 30, 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 $11.8 million as of September 30, 2024, $11.7 million as of June 30, 2024, and $17.4 million as of September 30, 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 0.88% at September 30, 2024, 0.89% at June 30, 2024, and 0.91% at September 30, 2023.

Deposits totaled $68.0 billion at September 30, 2024, an increase of $1.8 billion from $66.2 billion at June 30, 2024, and an increase of $13.8 billion from $54.3 billion at September 30, 2023. By deposit type, the increase from the prior quarter is attributable to increases of $3.4 billion from non-interest bearing deposits and $2.5 billion from savings and money market deposits, partially offset by decreases of $3.4 billion from interest-bearing demand deposits and $714 million from certificates of deposits. From September 30, 2023, non-interest bearing deposits increased $7.0 billion, savings and money market deposits increased $4.9 billion, interest-bearing demand deposits increased $1.0 billion, and certificates of deposit increased $873 million. Non-interest bearing deposits were $25.0 billion at September 30, 2024, compared to $21.5 billion at June 30, 2024, and $18.0 billion at September 30, 2023.

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

		Sep 30, 2024			Jun 30, 2024			Sep 30, 2023
Non-interest bearing		36.7	%		32.5	%		33.1	%
Interest-bearing demand		20.3			26.1			23.7
Savings and money market		28.8			25.8			27.0
Certificates of deposit		14.2			15.6			16.2

The Company’s ratio of HFI loans to deposits was 78.4% at September 30, 2024, compared to 79.1% at June 30, 2024, and 91.1% at September 30, 2023.

Borrowings were $3.0 billion at September 30, 2024, $5.6 billion at June 30, 2024, and $8.7 billion at September 30, 2023. Borrowings decreased $2.6 billion from June 30, 2024 primarily due to a decrease of $3.6 billion in short-term borrowings, partially offset by a $1.0 billion increase in long-term borrowings. The decrease in borrowings from September 30, 2023 is primarily due to a decrease in short-term borrowings of $6.4 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 $1.0 billion.

Stockholders’ equity was $6.7 billion at September 30, 2024, compared to $6.3 billion at June 30, 2024 and $5.7 billion at September 30, 2023. The increase in stockholders’ equity from the prior quarter was due to net income and unrealized fair value gains of $176 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax, partially offset by dividends to shareholders. Cash dividends of $40.7 million ($0.37 per common share) and $3.2 million ($0.27 per depository share) were paid to stockholders during the third quarter 2024. The increase in stockholders' equity from September 30, 2023 is primarily a function of net income and unrealized fair value gains on available-for-sale securities, partially offset by dividends to stockholders.

The Company's common equity tier 1 capital ratio was 11.2% at September 30, 2024, compared to 11.0% and 10.6% at June 30, 2024 and September 30, 2023, respectively. At September 30, 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 $51.98 at September 30, 2024, an increase of 6.5% from $48.79 at June 30, 2024, and an increase of 19.1% from $43.66 at September 30, 2023. The increase in tangible book value per share from June 30, 2024 and September 30, 2023 is attributable to net income.

Total assets decreased $501 million, or 0.6%, to $80.1 billion at September 30, 2024 from $80.6 billion at June 30, 2024, and increased 13.0% from $70.9 billion at September 30, 2023. The decrease in total assets from June 30, 2024 was primarily driven by a decrease in cash and due from banks and investment securities, which funded an increase in HFI loans and bank owned life insurance. The increase in total assets from September 30, 2023 was primarily driven by an increase in investment securities and HFI loans, partially offset by a decrease in cash and due from banks.

1 See reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $33.6 million for the third quarter 2024, compared to $37.1 million for the second quarter 2024, and $12.1 million for the third quarter 2023. Net loan charge-offs in the third quarter 2024 totaled $26.6 million, or 0.20% of average loans (annualized), compared to $22.8 million, or 0.18%, in the second quarter 2024, and $8.0 million, or 0.07%, in the third quarter 2023.

Nonaccrual loans decreased $52 million to $349 million during the quarter and increased $112 million from September 30, 2023. Loans past due 90 days and still accruing interest totaled $4 million at September 30, 2024 and zero at June 30, 2024 and September 30, 2023 (excluding government guaranteed loans of $313 million, $330 million, and $439 million, respectively). Loans past due 30-89 days and still accruing interest totaled $110 million at September 30, 2024, an increase from $83 million at June 30, 2024, and a decrease from $189 million at September 30, 2023 (excluding government guaranteed loans of $203 million, $221 million, and $261 million, respectively).

Repossessed assets totaled $8 million at September 30, 2024, flat from June 30, 2024 and September 30, 2023. Classified assets totaled $838 million at September 30, 2024, an increase of $90 million from $748 million at June 30, 2024, and an increase of $199 million from $639 million at September 30, 2023.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses², a common regulatory measure of asset quality, was 12.2% at September 30, 2024, compared to 11.2% at June 30, 2024, and 10.2% at September 30, 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 third quarter 2024 financial results at 12:00 p.m. ET on Friday, October 18, 2024. Participants may access the call by dialing 1-833-470-1428 and using access code 586867 or via live audio webcast using the website link https://events.q4inc.com/attendee/875780058. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 3:00 p.m. ET October 18th through 11:59 p.m. ET November 17th by dialing 1-866-813-9403, using access code 196595.

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 2023 by American Banker and Bank Director and receiving #1 rankings on Institutional Investor's All-America Executive Team Midcap 2023-2024 for Best CEO, Best CFO, Best Company Board of Directors and Best Investor Relations Team. 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 September 30,
												2024			2023		Change %
											(in millions)
Total assets											$	80,080		$	70,891		13.0	%
Loans held for sale												2,327			1,766		31.8
HFI loans, net of deferred fees												53,346			49,447		7.9
Investment securities												16,382			11,204		46.2
Total deposits												68,040			54,287		25.3
Borrowings												2,995			8,745		(65.8	)
Qualifying debt												898			890		0.9
Stockholders' equity												6,677			5,746		16.2
Tangible common equity, net of tax (1)												5,723			4,781		19.7
Common equity Tier 1 capital												6,126			5,540		10.6
Selected Income Statement Data:
		For the Three Months Ended September 30,									For the Nine Months Ended September 30,
			2024			2023		Change %				2024			2023		Change %
		(in millions, except per share data)									(in millions, except per share data)
Interest income		$	1,200.0		$	1,026.6		16.9	%		$	3,402.5		$	2,996.3		13.6	%
Interest expense			503.1			439.6		14.4				1,450.1			1,249.1		16.1
Net interest income			696.9			587.0		18.7				1,952.4			1,747.2		11.7
Provision for credit losses			33.6			12.1		NM				85.9			53.3		61.2
Net interest income after provision for credit losses			663.3			574.9		15.4				1,866.5			1,693.9		10.2
Non-interest income			126.2			129.2		(2.3	)			371.3			190.2		95.2
Non-interest expense			537.4			426.2		26.1				1,506.0			1,161.5		29.7
Income before income taxes			252.1			277.9		(9.3	)			731.8			722.6		1.3
Income tax expense			52.3			61.3		(14.7	)			161.0			148.1		8.7
Net income			199.8			216.6		(7.8	)			570.8			574.5		(0.6	)
Dividends on preferred stock			3.2			3.2		—				9.6			9.6		—
Net income available to common stockholders		$	196.6		$	213.4		(7.9	)		$	561.2		$	564.9		(0.7	)
Diluted earnings per common share		$	1.80		$	1.97		(8.6	)		$	5.14		$	5.21		(1.3	)

(1)	See Reconciliation of Non-GAAP Financial Measures.
NM	Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
		At or For the Three Months Ended September 30,											For the Nine Months Ended September 30,
		2024				2023				Change %			2024				2023				Change %
Diluted earnings per common share		$	1.80			$	1.97			(8.6	)%		$	5.14			$	5.21			(1.3	)%
Book value per common share			57.97				49.78			16.5
Tangible book value per common share, net of tax (1)			51.98				43.66			19.1
Average common shares outstanding (in millions):
Basic			108.7				108.3			0.3				108.6				108.3			0.3
Diluted			109.5				108.5			0.9				109.2				108.4			0.8
Common shares outstanding			110.1				109.5			0.5
Selected Performance Ratios:
Return on average assets (2)			0.96	%			1.24	%		(22.6	)%			0.98	%			1.09	%		(10.1	)%
Return on average tangible common equity (1, 2)			13.8				17.3			(20.2	)			13.8				16.0			(13.8	)
Net interest margin (2)			3.61				3.67			(1.6	)			3.61				3.62			(0.3	)
Efficiency ratio, adjusted for deposit costs (1)			52.7				50.0			5.4				53.8				51.6			4.3
HFI loan to deposit ratio			78.4				91.1			(13.9	)
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)			0.20	%			0.07	%		NM				0.15	%			0.06	%		NM
Nonaccrual loans to funded HFI loans			0.65				0.48			35.4
Nonaccrual loans and repossessed assets to total assets			0.45				0.35			28.6
Allowance for loan losses to funded HFI loans			0.67				0.66			1.5
Allowance for loan losses to nonaccrual HFI loans			102				138			(26.1	)
Capital Ratios:
													Sep 30, 2024				Jun 30, 2024				Sep 30, 2023
Tangible common equity (1)														7.2	%			6.7	%		6.8	%
Common Equity Tier 1 (3)														11.2				11.0			10.6
Tier 1 Leverage ratio (3)														7.8				8.0			8.5
Tier 1 Capital (3)														11.9				11.7			11.3
Total Capital (3)														14.1				13.9			13.5

(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 September 30, 2024 are preliminary.
NM	Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
		Three Months Ended September 30,							Nine Months Ended September 30,
			2024			2023				2024				2023
		(dollars in millions, except per share data)
Interest income:
Loans		$	945.3		$	860.8			$	2,713.9			$	2,550.7
Investment securities			197.1			122.8				531.6				331.3
Other			57.6			43.0				157.0				114.3
Total interest income			1,200.0			1,026.6				3,402.5				2,996.3
Interest expense:
Deposits			422.1			316.2				1,213.0				798.9
Qualifying debt			9.5			9.5				28.6				28.3
Borrowings			71.5			113.9				208.5				421.9
Total interest expense			503.1			439.6				1,450.1				1,249.1
Net interest income			696.9			587.0				1,952.4				1,747.2
Provision for credit losses			33.6			12.1				85.9				53.3
Net interest income after provision for credit losses			663.3			574.9				1,866.5				1,693.9
Non-interest income:
Net gain on loan origination and sale activities			46.3			52.0				138.4				145.7
Service charges and loan fees			30.1			29.7				64.3				72.3
Net loan servicing revenue			12.3			27.2				96.8				93.2
Income from equity investments			5.8			0.5				27.1				2.6
Gain (loss) on sales of investment securities			8.8			0.1				10.2				(26.0	)
Fair value gain (loss) adjustments, net			4.1			17.8				5.1				(117.3	)
Gain (loss) on recovery from credit guarantees			0.2			(4.0	)			(2.8	)			0.5
Other			18.6			5.9				32.2				19.2
Total non-interest income			126.2			129.2				371.3				190.2
Non-interest expenses:
Deposit costs			208.0			127.8				518.7				305.7
Salaries and employee benefits			157.8			137.2				465.7				431.7
Data processing			38.7			33.9				110.4				88.9
Insurance			35.4			33.1				128.1				81.8
Legal, professional, and directors' fees			24.8			28.3				80.7				77.8
Loan servicing expenses			18.7			11.9				50.3				44.1
Occupancy			17.6			16.8				53.5				48.7
Business development and marketing			9.7			4.9				21.6				15.1
Loan acquisition and origination expenses			5.9			5.6				15.8				15.6
Gain on extinguishment of debt			—			—				—				(13.4	)
Other			20.8			26.7				61.2				65.5
Total non-interest expense			537.4			426.2				1,506.0				1,161.5
Income before income taxes			252.1			277.9				731.8				722.6
Income tax expense			52.3			61.3				161.0				148.1
Net income			199.8			216.6				570.8				574.5
Dividends on preferred stock			3.2			3.2				9.6				9.6
Net income available to common stockholders		$	196.6		$	213.4			$	561.2			$	564.9
Earnings per common share:
Diluted shares			109.5			108.5				109.2				108.4
Diluted earnings per share		$	1.80		$	1.97			$	5.14			$	5.21

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
		Three Months Ended
		Sep 30, 2024			Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
		(in millions, except per share data)
Interest income:
Loans		$	945.3		$	896.7			$	871.9			$	859.0			$	860.8
Investment securities			197.1			190.5				144.0				136.2				122.8
Other			57.6			60.3				39.1				43.8				43.0
Total interest income			1,200.0			1,147.5				1,055.0				1,039.0				1,026.6
Interest expense:
Deposits			422.1			410.3				380.6				343.7				316.2
Qualifying debt			9.5			9.6				9.5				9.6				9.5
Borrowings			71.5			71.0				66.0				94.0				113.9
Total interest expense			503.1			490.9				456.1				447.3				439.6
Net interest income			696.9			656.6				598.9				591.7				587.0
Provision for credit losses			33.6			37.1				15.2				9.3				12.1
Net interest income after provision for credit losses			663.3			619.5				583.7				582.4				574.9
Non-interest income:
Net gain on loan origination and sale activities			46.3			46.8				45.3				47.8				52.0
Service charges and loan fees			30.1			17.8				16.4				28.7				29.7
Net loan servicing revenue			12.3			38.1				46.4				9.1				27.2
Income from equity investments			5.8			4.2				17.1				13.1				0.5
Gain (loss) on sales of investment securities			8.8			2.3				(0.9	)			(14.8	)			0.1
Fair value gain (loss) adjustments, net			4.1			0.7				0.3				1.3				17.8
Gain (loss) on recovery from credit guarantees			0.2			(2.5	)			(0.5	)			(2.7	)			(4.0	)
Other			18.6			7.8				5.8				8.0				5.9
Total non-interest income			126.2			115.2				129.9				90.5				129.2
Non-interest expenses:
Deposit costs			208.0			173.7				137.0				131.0				127.8
Salaries and employee benefits			157.8			153.0				154.9				134.6				137.2
Data processing			38.7			35.7				36.0				33.1				33.9
Insurance			35.4			33.8				58.9				108.6				33.1
Legal, professional, and directors' fees			24.8			25.8				30.1				29.4				28.3
Loan servicing expenses			18.7			16.6				15.0				14.7				11.9
Occupancy			17.6			18.4				17.5				16.9				16.8
Business development and marketing			9.7			6.4				5.5				6.7				4.9
Loan acquisition and origination expenses			5.9			5.1				4.8				4.8				5.6
Gain on extinguishment of debt			—			—				—				(39.3	)			—
Other			20.8			18.3				22.1				21.4				26.7
Total non-interest expense			537.4			486.8				481.8				461.9				426.2
Income before income taxes			252.1			247.9				231.8				211.0				277.9
Income tax expense			52.3			54.3				54.4				63.1				61.3
Net income			199.8			193.6				177.4				147.9				216.6
Dividends on preferred stock			3.2			3.2				3.2				3.2				3.2
Net income available to common stockholders		$	196.6		$	190.4			$	174.2			$	144.7			$	213.4
Earnings per common share:
Diluted shares			109.5			109.1				109.0				108.7				108.5
Diluted earnings per share		$	1.80		$	1.75			$	1.60			$	1.33			$	1.97

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
		(in millions)
Assets:
Cash and due from banks		$	2,592			$	4,077			$	3,550			$	1,576			$	3,497
Investment securities			16,382				17,268				16,092				12,712				11,204
Loans held for sale			2,327				2,007				1,841				1,402				1,766
Loans held for investment:
Commercial and industrial			22,551				21,690				19,749				19,103				18,344
Commercial real estate - non-owner occupied			9,801				9,647				9,637				9,650				9,810
Commercial real estate - owner occupied			1,817				1,886				1,859				1,810				1,771
Construction and land development			4,727				4,712				4,781				4,889				4,669
Residential real estate			14,395				14,445				14,624				14,778				14,779
Consumer			55				50				50				67				74
Loans HFI, net of deferred fees			53,346				52,430				50,700				50,297				49,447
Allowance for loan losses			(357	)			(352	)			(340	)			(337	)			(327	)
Loans HFI, net of deferred fees and allowance			52,989				52,078				50,360				49,960				49,120
Mortgage servicing rights			1,011				1,145				1,178				1,124				1,233
Premises and equipment, net			354				351				344				339				327
Operating lease right-of-use asset			127				133				139				145				150
Other assets acquired through foreclosure, net			8				8				8				8				8
Bank owned life insurance			1,000				187				187				186				184
Goodwill and other intangibles, net			661				664				666				669				672
Other assets			2,629				2,663				2,624				2,741				2,730
Total assets		$	80,080			$	80,581			$	76,989			$	70,862			$	70,891
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing deposits		$	24,965			$	21,522			$	18,399			$	14,520			$	17,991
Interest bearing:
Demand			13,846				17,267				16,965				15,916				12,843
Savings and money market			19,575				17,087				16,194				14,791				14,672
Certificates of deposit			9,654				10,368				10,670				10,106				8,781
Total deposits			68,040				66,244				62,228				55,333				54,287
Borrowings			2,995				5,587				6,221				7,230				8,745
Qualifying debt			898				897				896				895				890
Operating lease liability			159				165				172				179				180
Accrued interest payable and other liabilities			1,311				1,354				1,300				1,147				1,043
Total liabilities			73,403				74,247				70,817				64,784				65,145
Stockholders' Equity:
Preferred stock			295				295				295				295				295
Common stock and additional paid-in capital			2,110				2,099				2,087				2,081				2,073
Retained earnings			4,654				4,498				4,348				4,215				4,111
Accumulated other comprehensive loss			(382	)			(558	)			(558	)			(513	)			(733	)
Total stockholders' equity			6,677				6,334				6,172				6,078				5,746
Total liabilities and stockholders' equity		$	80,080			$	80,581			$	76,989			$	70,862			$	70,891

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
		Three Months Ended
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
		(in millions)
Allowance for loan losses
Balance, beginning of period		$	351.8			$	340.3			$	336.7			$	327.4			$	321.1
Provision for credit losses (1)			31.4				34.3				13.4				17.8				14.3
Recoveries of loans previously charged-off:
Commercial and industrial			0.5				0.1				0.4				0.7				0.4
Commercial real estate - non-owner occupied			0.7				—				—				—				—
Commercial real estate - owner occupied			—				—				—				0.1				—
Construction and land development			—				—				—				—				—
Residential real estate			—				—				—				—				0.1
Consumer			—				—				—				—				—
Total recoveries			1.2				0.1				0.4				0.8				0.5
Loans charged-off:
Commercial and industrial			4.3				5.3				2.3				9.3				5.5
Commercial real estate - non-owner occupied			21.7				17.6				7.9				—				3.0
Commercial real estate - owner occupied			0.3				—				—				—				—
Construction and land development			1.5				—				—				—				—
Residential real estate			—				—				—				—				—
Consumer			—				—				—				—				—
Total loans charged-off			27.8				22.9				10.2				9.3				8.5
Net loan charge-offs			26.6				22.8				9.8				8.5				8.0
Balance, end of period		$	356.6			$	351.8			$	340.3			$	336.7			$	327.4
Allowance for unfunded loan commitments
Balance, beginning of period		$	35.9			$	33.1			$	31.6			$	37.9			$	41.1
Provision for (recovery of) credit losses (1)			1.7				2.8				1.5				(6.3	)			(3.2	)
Balance, end of period (2)		$	37.6			$	35.9			$	33.1			$	31.6			$	37.9
Components of the allowance for credit losses on loans
Allowance for loan losses		$	356.6			$	351.8			$	340.3			$	336.7			$	327.4
Allowance for unfunded loan commitments			37.6				35.9				33.1				31.6				37.9
Total allowance for credit losses on loans		$	394.2			$	387.7			$	373.4			$	368.3			$	365.3
Net charge-offs to average loans - annualized			0.20	%			0.18	%			0.08	%			0.07	%			0.07	%
Allowance ratios
Allowance for loan losses to funded HFI loans (3)			0.67	%			0.67	%			0.67	%			0.67	%			0.66	%
Allowance for credit losses to funded HFI loans (3)			0.74				0.74				0.74				0.73				0.74
Allowance for loan losses to nonaccrual HFI loans			102				88				85				123				138
Allowance for credit losses to nonaccrual HFI loans			113				97				94				135				154

(1)				The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $0.4 million provision release on AFS investment securities and a $0.9 million provision for credit losses on HTM investment securities for the three months ended September 30, 2024. The allowance for credit losses on AFS and HTM investment securities totaled $0.4 million and $9.6 million, respectively, as of September 30, 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 $11.8 million as of September 30, 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
		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
		(in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans		$	349			$	401			$	399			$	273			$	237
Nonaccrual loans to funded HFI loans			0.65	%			0.76	%			0.79	%			0.54	%			0.48	%
Repossessed assets		$	8			$	8			$	8			$	8			$	8
Nonaccrual loans and repossessed assets to total assets			0.45	%			0.51	%			0.53	%			0.40	%			0.35	%
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)		$	110			$	83			$	117			$	164			$	189
Loans past due 30 to 89 days, still accruing to funded HFI loans			0.21	%			0.16	%			0.23	%			0.33	%			0.38	%
Other credit quality metrics
Special mention loans		$	502			$	532			$	394			$	641			$	668
Special mention loans to funded HFI loans			0.94	%			1.01	%			0.78	%			1.27	%			1.35	%
Classified loans on accrual		$	479			$	328			$	361			$	379			$	381
Classified loans on accrual to funded HFI loans			0.90	%			0.63	%			0.71	%			0.75	%			0.77	%
Classified assets		$	838			$	748			$	781			$	673			$	639
Classified assets to total assets			1.05	%			0.93	%			1.01	%			0.95	%			0.90	%

(1)			Excludes government guaranteed residential mortgage loans of $313 million, $330 million, $349 million, $399 million, and $439 million as of each respective date in the table above.
(2)			Excludes government guaranteed residential mortgage loans of $203 million, $221 million, $224 million, $279 million, and $261 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
		September 30, 2024										June 30, 2024
		Average Balance				Interest			Average Yield / Cost			Average Balance				Interest			Average Yield / Cost
		($ in millions)
Interest earning assets
Loans HFS		$	4,288			$	66.9		6.21	%		$	2,860			$	43.0		6.05	%
Loans held for investment:
Commercial and industrial			21,982				392.0		7.15				19,913				370.1		7.54
CRE - non-owner occupied			9,689				190.4		7.83				9,680				185.0		7.69
CRE - owner occupied			1,833				28.2		6.23				1,865				28.5		6.24
Construction and land development			4,757				110.7		9.26				4,740				112.3		9.53
Residential real estate			14,441				156.1		4.30				14,531				157.0		4.35
Consumer			53				1.0		7.15				48				0.8		6.94
Total HFI loans (1), (2), (3)			52,755				878.4		6.65				50,777				853.7		6.79
Investment securities:
Taxable			14,321				173.4		4.82				14,029				166.5		4.77
Tax-exempt			2,225				23.7		5.33				2,221				24.0		5.45
Total investment securities (1)			16,546				197.1		4.89				16,250				190.5		4.87
Cash and other			4,206				57.6		5.44				3,983				60.3		6.09
Total interest earning assets			77,795				1,200.0		6.19				73,870				1,147.5		6.30
Non-interest earning assets
Cash and due from banks			278										294
Allowance for credit losses			(366	)									(350	)
Bank owned life insurance			973										187
Other assets			4,409										4,554
Total assets		$	83,089									$	78,555
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts		$	16,456			$	126.2		3.05	%		$	17,276			$	131.2		3.05	%
Savings and money market			18,092				166.3		3.66				16,579				146.2		3.55
Certificates of deposit			10,134				129.6		5.09				10,427				132.9		5.12
Total interest-bearing deposits			44,682				422.1		3.76				44,282				410.3		3.73
Short-term borrowings			4,214				57.8		5.46				4,165				58.9		5.69
Long-term debt			569				13.7		9.57				437				12.1		11.19
Qualifying debt			897				9.5		4.23				896				9.6		4.28
Total interest-bearing liabilities			50,362				503.1		3.97				49,780				490.9		3.97
Interest cost of funding earning assets									2.58										2.67
Non-interest-bearing liabilities
Non-interest-bearing deposits			24,638										20,996
Other liabilities			1,457										1,449
Stockholders’ equity			6,632										6,330
Total liabilities and stockholders' equity		$	83,089									$	78,555
Net interest income and margin (4)						$	696.9		3.61	%						$	656.6		3.63	%

(1)			Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $9.9 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(2)			Included in the yield computation are net loan fees of $21.7 million and $32.1 million for the three months ended September 30, 2024 and June 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
		September 30, 2024										September 30, 2023
		Average Balance				Interest			Average Yield / Cost			Average Balance				Interest			Average Yield / Cost
		($ in millions)
Interest earning assets
Loans held for sale		$	4,288			$	66.9		6.21	%		$	3,069			$	47.3		6.11	%
Loans HFI:
Commercial and industrial			21,982				392.0		7.15				16,855				324.3		7.70
CRE - non-owner-occupied			9,689				190.4		7.83				9,950				196.1		7.83
CRE - owner-occupied			1,833				28.2		6.23				1,790				26.4		5.97
Construction and land development			4,757				110.7		9.26				4,545				110.3		9.63
Residential real estate			14,441				156.1		4.30				14,914				155.0		4.12
Consumer			53				1.0		7.15				73				1.4		7.43
Total loans HFI (1), (2), (3)			52,755				878.4		6.65				48,127				813.5		6.73
Investment securities:
Taxable			14,321				173.4		4.82				8,272				101.1		4.85
Tax-exempt			2,225				23.7		5.33				2,103				21.7		5.12
Total investment securities (1)			16,546				197.1		4.89				10,375				122.8		4.91
Cash and other			4,206				57.6		5.44				2,911				43.0		5.87
Total interest earning assets			77,795				1,200.0		6.19				64,482				1,026.6		6.37
Non-interest earning assets
Cash and due from banks			278										279
Allowance for credit losses			(366	)									(334	)
Bank owned life insurance			973										184
Other assets			4,409										4,513
Total assets		$	83,089									$	69,124
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts		$	16,456			$	126.2		3.05	%		$	12,947			$	98.9		3.03	%
Savings and money market accounts			18,092				166.3		3.66				13,832				106.3		3.05
Certificates of deposit			10,134				129.6		5.09				9,125				111.0		4.83
Total interest-bearing deposits			44,682				422.1		3.76				35,904				316.2		3.49
Short-term borrowings			4,214				57.8		5.46				6,260				97.2		6.16
Long-term debt			569				13.7		9.57				764				16.7		8.68
Qualifying debt			897				9.5		4.23				888				9.5		4.26
Total interest-bearing liabilities			50,362				503.1		3.97				43,816				439.6		3.98
Interest cost of funding earning assets									2.58										2.70
Non-interest-bearing liabilities
Non-interest-bearing deposits			24,638										18,402
Other liabilities			1,457										1,052
Stockholders’ equity			6,632										5,854
Total liabilities and stockholders' equity		$	83,089									$	69,124
Net interest income and margin (4)						$	696.9		3.61	%						$	587.0		3.67	%

(1)			Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $8.9 million for the three months ended September 30, 2024 and 2023, respectively.
(2)			Included in the yield computation are net loan fees of $21.7 million and $28.0 million for the three months ended September 30, 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
		Nine Months Ended
		September 30, 2024										September 30, 2023
		Average Balance				Interest			Average Yield / Cost			Average Balance				Interest			Average Yield / Cost
		($ in millions)
Interest earning assets
Loans HFS		$	3,192			$	149.1		6.24	%		$	3,858			$	183.8		6.37	%
Loans HFI:
Commercial and industrial			20,220				1,107.8		7.38				17,669				994.7		7.59
CRE - non-owner occupied			9,613				560.6		7.80				9,743				546.2		7.50
CRE - owner occupied			1,835				83.5		6.18				1,805				76.2		5.76
Construction and land development			4,806				340.0		9.45				4,399				307.1		9.34
Residential real estate			14,565				470.0		4.31				15,250				438.8		3.85
Consumer			54				2.9		7.14				73				3.9		7.14
Total loans HFI (1), (2), (3)			51,093				2,564.8		6.74				48,939				2,366.9		6.49
Investment securities:
Taxable			13,027				461.0		4.73				7,609				267.7		4.70
Tax-exempt			2,217				70.6		5.34				2,094				63.6		5.08
Total investment securities (1)			15,244				531.6		4.82				9,703				331.3		4.79
Cash and other			3,716				157.0		5.64				2,941				114.3		5.20
Total interest earning assets			73,245				3,402.5		6.26				65,441				2,996.3		6.18
Non-interest earning assets
Cash and due from banks			285										268
Allowance for credit losses			(355	)									(321	)
Bank owned life insurance			451										183
Other assets			4,501										4,600
Total assets		$	78,127									$	70,171
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts		$	16,693			$	379.4		3.04	%		$	11,800			$	247.4		2.80	%
Savings and money market accounts			16,644				442.4		3.55				15,006				308.9		2.75
Certificates of deposit			10,230				391.2		5.11				7,437				242.6		4.36
Total interest-bearing deposits			43,567				1,213.0		3.72				34,243				798.9		3.12
Short-term borrowings			4,032				170.4		5.65				8,578				355.2		5.54
Long-term debt			483				38.1		10.51				953				66.7		9.36
Qualifying debt			896				28.6		4.26				892				28.3		4.24
Total interest-bearing liabilities			48,978				1,450.1		3.95				44,666				1,249.1		3.74
Interest cost of funding earning assets									2.65										2.56
Non-interest-bearing liabilities
Non-interest-bearing deposits			21,284										18,534
Other liabilities			1,481										1,272
Stockholders’ equity			6,384										5,699
Total liabilities and stockholders' equity		$	78,127									$	70,171
Net interest income and margin (4)						$	1,952.4		3.61	%						$	1,747.2		3.62	%

(1)			Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $29.5 million and $26.4 million for the nine months ended September 30, 2024 and 2023, respectively.
(2)			Included in the yield computation are net loan fees of $86.9 million and $100.4 million for the nine months ended September 30, 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
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(in millions)
Net interest income	$	696.9		$	656.6		$	598.9		$	591.7		$	587.0
Total non-interest income		126.2			115.2			129.9			90.5			129.2
Net revenue	$	823.1		$	771.8		$	728.8		$	682.2		$	716.2
Total non-interest expense		537.4			486.8			481.8			461.9			426.2
Pre-provision net revenue (1)	$	285.7		$	285.0		$	247.0		$	220.3		$	290.0
Adjusted for:
Provision for credit losses		33.6			37.1			15.2			9.3			12.1
Income tax expense		52.3			54.3			54.4			63.1			61.3
Net income	$	199.8		$	193.6		$	177.4		$	147.9		$	216.6

Efficiency Ratio (Tax Equivalent Basis) by Quarter:
	Three Months Ended
	Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
	(dollars in millions)
Total non-interest expense	$	537.4			$	486.8			$	481.8			$	461.9			$	426.2
Less: Deposit costs		208.0				173.7				137.0				131.0				127.8
Total non-interest expense, excluding deposit costs		329.4				313.1				344.8				330.9				298.4
Divided by:
Total net interest income		696.9				656.6				598.9				591.7				587.0
Plus:
Tax equivalent interest adjustment		10.0				9.9				9.6				9.1				8.9
Total non-interest income		126.2				115.2				129.9				90.5				129.2
Less: Deposit costs		208.0				173.7				137.0				131.0				127.8
	$	625.1			$	608.0			$	601.4			$	560.3			$	597.3
Efficiency ratio (2)		64.5	%			62.3	%			65.2	%			66.8	%			58.8	%
Efficiency ratio, adjusted for deposit costs (2)		52.7	%			51.5	%			57.3	%			59.1	%			50.0	%

Tangible Common Equity:
	Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023				Sep 30, 2023
	(dollars and shares in millions, except per share data)
Total stockholders' equity	$	6,677			$	6,334			$	6,172			$	6,078			$	5,746
Less:
Goodwill and intangible assets		661				664				666				669				672
Preferred stock		295				295				295				295				295
Total tangible common equity		5,721				5,375				5,211				5,114				4,779
Plus: deferred tax - attributed to intangible assets		2				2				2				2				2
Total tangible common equity, net of tax	$	5,723			$	5,377			$	5,213			$	5,116			$	4,781
Total assets	$	80,080			$	80,581			$	76,989			$	70,862			$	70,891
Less: goodwill and intangible assets, net		661				664				666				669				672
Tangible assets		79,419				79,917				76,323				70,193				70,219
Plus: deferred tax - attributed to intangible assets		2				2				2				2				2
Total tangible assets, net of tax	$	79,421			$	79,919			$	76,325			$	70,195			$	70,221
Tangible common equity ratio (3)		7.2	%			6.7	%			6.8	%			7.3	%			6.8	%
Common shares outstanding		110.1				110.2				110.2				109.5				109.5
Tangible book value per share, net of tax (3)	$	51.98			$	48.79			$	47.30			$	46.72			$	43.66

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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241016746260/en/

Investors: Miles Pondelik, 602-346-7462

Email: MPondelik@westernalliancebank.com

Media: Stephanie Whitlow, 480-998-6547

Email: SWhitlow@westernalliancebank.com

Source: Western Alliance Bancorporation

FAQ

What were Western Alliance Bancorporation's earnings per share for Q3 2024?

Western Alliance Bancorporation reported earnings per share of $1.80 for Q3 2024.

How much did Western Alliance Bancorporation's net income increase in Q3 2024?

Net income increased to $199.8 million, up 3.2% from the previous quarter.

What was Western Alliance Bancorporation's net interest margin in Q3 2024?

The net interest margin for Q3 2024 was 3.61%.

How much did Western Alliance Bancorporation's total deposits grow in Q3 2024?

Total deposits grew by $1.8 billion to $68.0 billion in Q3 2024.

What was the tangible book value per share for Western Alliance Bancorporation in Q3 2024?

The tangible book value per share was $51.98 in Q3 2024.

What is Western Alliance Bancorporation's CET1 ratio as of Q3 2024?

The CET1 ratio was 11.2% as of Q3 2024.

What was the provision for credit losses for Western Alliance Bancorporation in Q3 2024?

The provision for credit losses was $33.6 million in Q3 2024.