INVESTOR UPDATE 1st Quarter 2024
Forward-Looking Statements This presentation contains forward-looking statements that relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Examples of forward-looking statements include, among others, statements we make regarding our expectations with regard to our business, financial and operating results, future economic performance and dividends. The forward-looking statements contained herein reflect our current views about future events and financial performance and are subject to risks, uncertainties, assumptions and changes in circumstances that may cause our actual results to differ significantly from historical results and those expressed in any forward-looking statement. Some factors that could cause actual results to differ materially from historical or expected results include, among others: the risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and the Company’s subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the 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 such as the COVID-19 pandemic and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the 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 presentation is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise. Non-GAAP Financial Measures This presentation contains both financial measures based on GAAP and non-GAAP based financial measures, which are used where management believes them to be helpful in understanding the Company’s results of operations or financial position. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the Company’s press release as of and for the quarter ended December 31, 2023. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 2
Note: Financial data as of December 31, 2023; 1) Market data as of February 12, 2023; 2) Refer to slide 2 for further discussion of Non-GAAP financial measures. 3) Nonperforming assets includes nonaccrual loans and repossessed assets 3 Western Alliance Bancorporation Overview Summary The Bank for All Seasons A national commercial bank anchored in attractive regional markets with specialty business lines providing sophisticated sector and product expertise to clients Our differentiated, value-added banking services centered around sector expertise and solving business-critical pain- points builds deep, long-lasting client relationships Diversified business model provides flexibility and responsiveness to changing market conditions to generate long-term superior risk-adjusted returns NYSE WAL Headquarters Phoenix, AZ IPO 2005 Market Cap1 $6.9bn Offices 57 Employees 3,200+ NPAs/Assets3 0.40% LTM NCOs/ Avg. Loans 0.06% Total Assets $70.9bn LTM Adj. ROAA2 1.24% LTM Adj. ROTCE2 18.0% TBV per Share 5-Year CAGR 12.0% AMERICAN BANKER
2023 Q4-23 Interest Income $4,035.3 $1,039.0 Interest Expense (1,696.4) (447.3) Net Interest Income $2,338.9) $591.7 Mortgage Banking Related Income 295.8) 56.9 Fair Value Loss Adjustments, Net (116.0)) 1.3 (Loss) Gain on Sales of Investment Securities, Net (40.8)) (14.8) Other 141.7) 47.1 Non-Interest Income $280.7) $90.5 Net Revenue $2,619.6) $682.2 Salaries and Employee Benefits (566.3) (134.6) Deposit Costs (436.7) (131.0) Insurance Gain on Extinguishment of Debt (190.4) 52.7 (108.6) 39.3 Other (482.7) (127.0) Non-Interest Expense $ (1,623.4) $ (461.9) Pre-Provision Net Revenue1 $996.2) $220.3) Provision for Credit Losses (62.6) (9.3)) Pre-Tax Income $933.6) $211.0) Income Tax (211.2) (63.1) Net Income $722.4) $147.9) Dividends on Preferred Stock (12.8) (3.2) Net Income Available to Common Stockholders $709.6) $144.7/$207.7) Diluted Shares 108.5) 108.7) Earnings Per Share $6.54) $1.33/$1.91) Financial Highlights 4 1 2 4 Dollars in millions, except EPS 2023 Highlights 1) Refer to slide 2 for further discussion of Non-GAAP financial measures. 2) Gain on Sale margin represents spread as of the interest rate lock commitment date. 5 1 4 5 2 3 3 Net Interest Income increased $122.6 million, primarily from higher yields on interest earning assets • Partially offset by increased interest expense from deposits and short-term borrowings Non-Interest Income decrease driven by Balance Sheet optimization efforts • Fair value losses of $116.0 million in 2023 compared to $28.6 million in 2022 and losses on sale of securities of $40.8 million in 2023 compared to a gain of $6.8 million in 2022. Deposit Costs increased $270.9 million, primarily related to an increase in rates and ECR deposit balances Insurance increased $159.3 million, which includes $66.3 million for the FDIC special assessment Gain on Extinguishment of Debt of $52.7 million related to payoff of credit linked notes and repayment of AmeriHome Senior Notes Notable items in Non-Interest Income and Non- Interest Expense reduced Q4-23 by $0.58 per common share 6 6 6 6 6
WAL’s Value Proposition 5 1 Diversified business model – flexibility to sustain sound growth across market cycles 2 Specialized, high quality loan portfolio – deep client segment expertise and underwriting acumen 3 Differentiated deposit franchise – specialized, national channels serving secularly strong industries 5 Demonstrated conservative credit culture – superior through-cycle asset quality 6 Shareholder-focused capital management – robust TBV per share accumulation Leading national commercial bank with unique combination of sustained high-quality growth, leading profitability, and dependable earnings 4 Leading profitability – sturdy PPNR generation 7 Consistent, superior earnings performance
WAL’s Thoughtful Evolution 6 Deliberate evolution from a Nevada-focused community bank to a national commercial bank Nevada Community Bank (1994 – 2002) Regional Bank with a National Reach (2010 – 2017) 1994 Founded as Bank West of Nevada 2003 Opened de novo Torrey Pines Bank in SoCal 2005 IPO 2015 Acquisition of Bridge Bank 2021 Crossed $50B in assets 2021 Acquisition of AmeriHome Mortgage 2016 Acquisition of GE Hotel Finance Portfolio 2003 Opened de novo Alliance Bank of AZ Ke y Co rp or at e Ev en ts N ew B us in es s Li ne s Total Assets ($Bn) 4Q’02 $0.9 4Q’09 $5.8 2Q’14 $10.0 4Q’17 $20.3 2Q’19 $25.3 3Q’21 $52.8 4Q’23 $70.9 Specialty Business Lines Nascent Regional Bank (2003 – 2009) Dec-2002 WAL investors acquire to expand regionally 2Q’05 $2.6 National Commercial Bank (2018 – Present) Technology & Innovation (’15) Hotel Franchise Finance (’16) Municipal / Public Finance (’11) Resort Finance (’12) Business Escrow Services (’20) Juris Banking (’19) Digital Asset Banking (’21) Gaming (’19) Entertainment & Media (’21) Specialized Mortgage Services (’10) Corporate Trust Services (’21) Digital Consumer Channel (’22) Trade Finance (’22) Aerospace & Defense (’23) Homeowners Assoc. (’08) Homebuilder Finance (’13)
Branch-Lite, National Commercial Bank 7 A national commercial bank anchored in attractive regional markets with specialty business lines providing sophisticated sector and product expertise to clients WAL’s branch network represented by major MSAs Physical office location of business development employees Remote locations of business development employees Specialty Business Line Growth Business development offices primarily driven by loan and deposit initiatives for: − Bridge Bank / Tech & Innovation − Warehouse Lending − National CRE − Juris Banking − Business Escrow & Corporate Trust Services − HOA Services
8 WAL actively adapts business and capital allocation in response to changing external environment Note: Illustrative as business objectives are not mutually exclusive and image does not represent full suite of WAL divisions, products and services. Treasury Mgmt. SalesGeographic Diversification Regional Commercial Banking Mortgage Banking Finance Specialty Custodial Services Client Sector Expertise Mortgage Warehouse Corres- pondent Mortgage HOA Bus. Escrow & Corp. Trust Svcs. National Business Lines Regional Banking Divisions Specialty C&I Municipal & Nonprofit Homebuilder Finance National commercial bank anchored in attractive regional markets Pristine asset quality, source of escrow deposits and mortgage fee income Differentiated Deposit Franchises Specialized, B2B2C national channels serving secularly strong industries Highly scalable, uncorrelated source of granular deposits & consumer relationships Deep segment & product expertise supports cyclical business lines Growth trajectory maintained with prudent credit risk management Comm’l Banking Business Banking Juris Banking Diversified Business Model Allows Flexibility to Sustain Risk-Adjusted Returns • Tech & Innovation • Resort Finance • Gaming • Enter. & Media • Aerospace & Def. • Hotel Franchise • Timeshare Resort • Office AmeriHome • Gain on Sale • Servicing Income • Residential loan purchases Digital Consumer ChannelNational Platform Proprietary Delivery Small Business Banking
9 • Deliberate, decade-long business transformation strategy • Nearly 70% of GFC losses from 4Q09 to 4Q12 came from categories comprising 44% of portfolio at 4Q09, which today makes up <6% of loans • Losses concentrated in Nevada and consumer lending during GFC • Since year-end 2013, cumulative NCOs of $59mm vs total ACL of $368mm today • Diverse mix of regionally-focused commercial banking divisions and nationally-oriented, specialized businesses • National reach and deep segment expertise enables selective relationships with strong counterparties, leading profitability and superior company risk management • Nevada loan concentration reduction: 40% to <6% • National lending diversification: 21% to 49% • CRE loan concentration reduction: 54% to 23% • 50% of loans in low-to-no-loss categories today Highlights Deliberate business transformation emphasizes underwriting specialization and diversification strategy, which sustains superior asset quality Loan Portfolio: 2010 G eo gr ap hy Ch ar ac te ris tic s • Community banking focused • Nevada concentrated • Local business C&I and HNW developers 40.4% 21.9% 17.0% 20.7% NV CA AZ Other Other C&I 20% CRE, Owner Occupied 28% CRE, Non-Owner Occupied 24% Hotel 2% Warehouse Lending 1% Residential 11% C&D 10% Other 4% • National, specialized commercial bank • Regional footprint • Specialty C&I and institutional sponsor-backed developers Loan Portfolio: 4Q23 21% of Loans Credit Protected $50.3 Bn$4.2 Bn Co m po si tio n Municipal & Nonprofit 3% Tech & Innovation 6% Other C&I 12% CRE, Owner Occupied 3% CRE, Non- Owner Occupied 12% Hotel Franchise Finance 8% Warehouse Lending 13% Residential 29% C&D 10% Business Transformation 36.0% 9.6% 5.5% 48.9% CA AZ NV Other Equity Fund Resources 2% Other 3%
Peers1 Median: 9.0% Top Quart.: 14.8% Specialized, High Quality Loan Portfolio 10 Highlights Diversified by product, client-type and geography emphasizing underwriting discipline 30% 10% 19% 4% 38% Resi. & Consumer Const. & Land CRE, NOO CRE, OO C&I Q4 2023 Loans HFI by Product Type Warehouse Lending 13% Municipal & Nonprofit 3% Tech & Innovation 6% Other C&I 12% CRE, OO 3% CRE, NOO 12%Hotel Franchise Finance 8% Residential 29% Equity Fund Resources 2% C&D 10% Other 2% $8.4 $11.1 $13.2 $15.1 $17.7 $21.1 $27.1 $39.1 $51.9 $50.3 5.23% 5.18% 5.40% 5.62% 5.82% 5.83% 4.79% 4.32% 4.74% 6.53% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Loans and Loan Yields • Diverse mix of regionally-focused commercial banking divisions & nationally-oriented specialty business lines providing sophisticated sector and product expertise to clients • Leverages deep segment expertise to provide specialized banking services to niche markets across the country • Segment-focused model supports superior client value and company risk management • National reach enables selective relationships with highest asset quality and profitability Dollars in billions WAL 22.2% 1) Peers consist of 19 publicly traded banks headquartered in the US with total assets between $50B and $250B, excluding target banks of pending acquisitions, as of December 31, 2023; Source: S&P Global Market Intelligence. Loan CAGR Sources of Loan Growth (2020 –2023) Q4 2023 Loans HFI by Borrower Type • Accelerated growth in NBLs and Residential has contributed to loan diversification and evolution of strategy into low-to- no-loss loan categories • ~61% of 4-year growth in low-to-no-loss categories 43% Residential 2% EFR 16% Warehouse Lending 20% Other NBLs 3% Regional Banking
11 • A decade of business transformation has resulted in consistent relative outperformance in asset quality and credit metrics • Asset quality remained strong during height of the pandemic • Improvement / stabilization in non- accruals reflects timely identification and resolution of problem loans before realizing losses • Credit mitigation expertise is critical with a weaker macro backdrop • 21% of loan portfolio is now credit protected, consisting of government guaranteed, Credit Linked Notes-protected, and cash secured assets1 Net Charge-Offs / Average Loans Non-Accrual Loans / Loans Note: Peers consist of 19 publicly traded banks headquartered in the US with total assets between $50B and $250B, excluding target banks of pending acquisitions, as of December 31, 2023. Source: S&P Global Market Intelligence. 1) As of December 31, 2023, CLNs cover a substantial portion of Residential ($9.1 billion) loans outstanding. 2) Q4-23 for WAL and Q3-23 for peers. Classified Loans / Loans Demonstrated Conservative Credit Culture Highlights 0.06% 0.00% 0.06% 0.02% 0.06% 0.01% 0.02% -0.06%-0.07% 0.14% 0.22% 0.10%0.06% 0.26% 0.20% 0.15% 0.19%0.19% 0.14% 0.20% 2023202220212020201920182017201620152014 0.54% 0.16%0.19% 0.43% 0.27% 0.16% 0.29%0.31% 0.44% 0.81% 0.46% 0.41% 0.47% 0.62% 0.51% 0.44% 0.48% 0.72% 0.71%0.69% 2023202220212020201920182017201620152014 0.75% 0.54% 0.74%0.82% 0.70% 1.18% 1.14%1.14% 1.50% 1.87% 1.64% 1.43%1.41% 1.84% 1.49% 1.10% 1.58% 1.93% 2.10% 1.82% 2023202220212020201920182017201620152014 2 2 Classified Asset Mix 26% 10% 11% 8% 2% CRE Investor C&I Resi/Consumer Construction CRE OO Securities 18% Office 22% Hotel 3% Other 2
0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% Max Average Historical Loan Migration Near Peer Median Reflects “Early Identification and Elevation” Credit Strategy 12 Quarterly Criticized Loans / Gross Loans Q1-14 to Q3-23 Peers consist of 19 major exchange traded US banks with total assets between $50 bn and $250 bn as of December 31, 2023. Data include the effects of M&A transactions for peers and have not been adjusted. Source: S&P Global Market Intelligence. Since 2014, WAL’s level of criticized loans has ranked near the top among peer banks… Peer Group Maximum of Peers Avg of Peers Minimum of Peers Amount Bank Amount Amount Bank Average 731 bps BPOP 339 bps 202 bps VLY Maximum 1,159 bps BPOP 731 bps 364 bps VLY
0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% Max Average Proactive migration enhances oversight and mitigates credit losses 13 Annualized Net Charge-Offs Q 1-14 to Q4-23 Peers consist of 19 major exchange traded US banks with total assets between $50 bn and $250 bn as of December 31, 2023. Data include the effects of M&A transactions for peers and have not been adjusted. Source: S&P Global Market Intelligence. …but this does not translate into realized losses as WAL has lowest volatility and average losses due to our proactive mitigation strategies. Peer Group Maximum of Peers Avg of Peers Minimum of Peers Amount Bank Amount Amount Bank Average 71 bps BPOP 21 bps 1 bp WAL Maximum 162 bps BPOP 71 bps 13 bps WAL
14 Specialized underwriting expertise and conservative sector allocations position portfolio to withstand economic uncertainty Conservative, Economically Resilient Portfolio Positioning Insured (21%) • Residential • Early Buyout (“EBO”) Resi. & Other Government-Guaranteed or Cash-Secured Assets • Warehouse Lending • Includes Core WH Lending, Note Financing, MSR financing • Residential • Low LTVs; DQs significantly below national percentages • Equity Fund Resources • Capital Call & Subscription LOCs • Underwrite LPs behind private funds • Municipal / Public Finance • CRE – Industrial & Medical • HOA • Extremely low LTVs; lien in front of homeowner’s first mortgage Resilient (33%) • Regional CRE – Investor • Regional C&I • Hotel Franchise Finance (ex-Central Business District) • Regional CRE - Owner Occupied • Corporate Finance • Lot Banking • Specialty Business Lines • Gaming – Off-strip, middle market gaming companies and tribal gaming enterprises • Resort – Timeshare resort developers; hypothecation of consumer receivables • Other Specialty Business Lines 18% 3% 9% 13% 2% 2% • Construction (ex-Lot Banking) • Focused on note-on-note financing and Built-to-Rent developments • Tech & Innovation • Established tech firms with operating and financial flexibility, validated product, path to profitability • Hotel Franchise Finance (CBD only) • Large, sophisticated hotel sponsors who operate >25 hotels • 90% operate >10 properties with top franchisor flags • Small Business, CRA-Related, and Consumer Resistant (30%) More Sensitive (16%) 7% 6% 2% 1% 1% 1% 6% 3% 8% 6% 3% Credit protected, government guaranteed and cash-secured Historically low-to-no-loss loan categories Limited uncovered collateral risk, underwriting expertise, and strong counterparties Categories more directly correlated to economic growth 8% 1% Avg Loss Rate: 0.15% Max Loss Rate: 0.71% Avg Loss Rate: 0.09% Max Loss Rate: 0.20% Avg Loss Rate: 0.00% Max Loss Rate: 0.11% Avg Loss Rate: 0.00% Max Loss Rate: 0.00% Note: Average and maximum loss rates are quarterly annualized and from the period of Q1 2014 – Q4 2023.
1) Total Loan ACL includes allowance for unfunded commitments. 2) Ratio includes an allowance for credit losses of $14.7 million as of December 31, 2023 related to a pool of loans covered under 3 separate credit linked notes. 3) Early Buyout Loans are government guaranteed. 4) Loss rates are based on the period from Q1-14 – Q4-23.; 5) CRE/TRBC data as of December 31, 2023 for WAL, September 30, 2023 for $50B - $250B asset peers Reserve levels enhanced by credit protection and low loss loan categories ACL Supported by Loan Mix and Strong Capital 15 • WAL remains appropriately reserved, especially when considering credit protection from CLNs and historically low loss loan categories • Total Loan ACL / Funded Loans of 0.73% • >10x historical maximum annual loss rate4 • Reserves are a multiple of average losses times portfolio duration • Estimated weighted average duration of the loan portfolio is ~4 years • Adj. total ACL covers >30x historical average annual loss rate4 x duration • Consumer exposure almost entirely in high FICO Residential Mortgages • De minimis non-residential consumer exposure and materially below-peer consumer losses over the last 5 years Adjusted Total Loan ACL / Funded Loans: Q4-23 481% 461% 371% 293% 275% 251% 159%156% 153% 146% 144%133% 125% 124% 122%112% 74% 66% 57% 50% 0% 200% 400% Peer CRE (inc. Multi-Family) / Total Risk-Based Capital Highlights Loan Mix and LGD Matters to ACL Ratio Dollars in billions Source: S&P Global Market Intelligence Loan % NCO % (YE23) ('19 - '23) Residential WAL 29% 0.00% 75th Pct 20% 0.02% Median 16% 0.00% 25th Pct 10% -0.01% Consumer WAL 0.1% 0.16% 75th Pct 20% 1.09% Median 10% 0.74% 25th Pct 4% 0.53% Pe er s Pe er s Higher Proportion in Low Loss Resi Lower Proportion in Higher Loss Consumer
Note: Borrowings include customer repurchase agreements; Cost of Funds defined as total expense paid on interest bearing liabilities divided by the sum of average interest- bearing liabilities and average non-interest bearing demand deposits. Diversified funding channels provide secular growth trends and reflect long- term relationships Scalable, Differentiated Deposit Franchise 16 • $55.3Bn in total deposits, typically tied to lending relationships • WAL benefits from holding customer’s primary relationship • Scalable, specialized funding channels, such as HOA, Juris Banking, Business Escrow & Corporate Trust Services, and Tech & Innovation • Core deposits fund balance sheet growth • Deposits comprise 88% of total funding • 91% Loan (HFI)-to-Deposit ratio • 26% of total deposits are noninterest-bearing • ~55% of which are Earnings Credit Rate-related • Earnings Credit Rate-related deposit balances of $17.8 billion • ~55% associated with non-interest bearing accounts Deposit Base $6.6 $7.9 $8.9 $9.5 $11.7 $14.3 $18.5 $26.3 $33.9 $40.8 $2.3 $4.1 $5.6 $7.4 $7.5 $8.5 $13.4 $21.3 $19.7 $14.5 $0.5 $0.4 $0.4 $0.8 $0.9 $0.4 $1.0 $2.4 $7.2 $8.1 0.36% 0.30% 0.31% 0.37% 0.64% 0.86% 0.34% 0.25% 0.80% 2.59% -20.00% -15.00% -10.00% -5.00% 0.00% $0.0 $20.0 $40.0 $60.0 $80.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Interest Bearing Deposits Non-Interest Bearing Deposits Total Borrowings Cost of Funds Deposits, Borrowings, and Cost of Funds 22.6% CAGR 22.4% CAGR Dollars in billions Highlights Deposit Composition 31% 16% 9% 14% 10% 1% 5% 14% Regions Mtg WH Tech & Innov. HOA Juris Banking Bus. Escrow/Trust Svcs Digital Consumer Other/Wholesale 26% 27% 29% 18% Nonint. Bearing DDA MMDA & Savings Interest Bearing DDA CDs 55% of NIB DDAs are ECR-related Q1-24 QTD Deposits are tracking towards $3+ Bn
Total Investments and Yield Interest Bearing Deposits and Cost Loans and HFI Yield Deposits, Borrowings & Cost of Liability Funding Net Interest Drivers 17 • Loan yields decreased 8 bps due to full-quarter impact of the $1.3 billion reclassification of loans from HFS to HFI at the end of Q3 • Yield on Loans Held For Sale increased 31 bps to 6.42% in Q4 • Investment yields increased 8 bps, primarily related to floating-rate securities • Cost of interest-bearing deposits increased 7 bps, and total cost of funds increased 2 bps to 2.82% due to an increase in demand accounts and lower short-term borrowings • Prioritizing optimization of liability structure by utilizing deposits to pay down short-term borrowings • Average short-term borrowings decreased $768 million in Q4 to $5.5 billion or 12% of average interest-bearing liabilities compared to 14% in Q3 • Robust reciprocal deposit growth • ~67% of total deposits classified as brokered consist of reciprocal balances $51.9 $46.4 $47.9 $49.4 $50.3 $1.8 $1.2 $1.1 $1.4 $1.8 $1.4 5.70% 6.28% 6.48% 6.73% 6.65% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 $5.9 $33.9 $31.1 $34.3 $36.3 $40.8 1.97% 2.75% 3.08% 3.49% 3.56% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 $8.8 $9.5 $10.4 $11.4 $13.0 4.45% 4.68% 4.76% 4.91% 4.99% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Non-Interest Bearing Deposits Total Borrowings Q4 2023 Highlights HFI HFS Loans (ex. AMH) Interest Bearing DepositsInterest Bearing Deposits Dollars in billions, unless otherwise indicated Total Investments $33.9 $31.1 $34.3 $36.3 $40.8 $19.7 $16.5 $16.7 $18.0 $14.5 $7.2 $16.8 $10.5 $9.6 $8.1 1.57% 2.27% 2.85% 2.80% 2.82% Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 HFS – AMH Resi
ROAA Leading Profitability 18 • ROAA and ROATCE have consistently exceeded peers over the last 10 years • Net Interest Income continues to rise through strong earning asset growth • Net Interest Income increased $123 million, or 5.6%, from 2022 due to average earning asset growth and the rising rate environment • NIM decreased 2 bps, driven by higher interest expense on deposits • PPNR declined $177 million, or 12.8%, from 2022 ROATCE Note: Peers consist of 19 publicly traded banks headquartered in the US with total assets between $50B and $250B, excluding target banks of pending acquisitions, as of December 31, 2023; Source: S&P Global Market Intelligence. 1) FY2023 for WAL and most peers and Q3-23 four quarter average for the remainder. 2) 2023 ROAA, ROATCE, and PPNR for WAL are adjusted. Pre-Provision Net Revenue ($MM) Net Interest Income $202 $262 $369 $469 $533 $624 $746 $1,102 $1,384 $1,207 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $385 $493 $657 $785 $916 $1,040 $1,167 $1,549 $2,216 $2,3394.42% 4.51% 4.58% 4.65% 4.68% 4.52% 3.97% 3.41% 3.67% 3.65% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% $0.0$5.0$10.0$15.0$20.0$25.0$30.0$35.0$40.0$45.0$50.0$55.0$60.0$65.0$70.0$75.0$80.0$85.0$90.0$95.0$100.0$105.0$110.0$115.0$120.0$125.0$130.0$135.0$140.0$145.0$150.0$155.0$160.0$165.0$170.0$175.0$180.0$185.0$190.0$195.0$200.0$205.0$210.0$215.0$220.0$225.0$230.0$235.0$240.0$245.0$250.0$255.0$260.0$265.0$270.0$275.0$280.0$285.0$290.0$295.0$300.0$305.0$310.0$315.0$320.0$325.0$330.0$335.0$340.0$345.0$350.0$355.0$360.0$365.0$370.0$375.0$380.0$385.0$390.0$395.0$400.0$405.0$410.0$415.0$420.0$425.0$430.0$435.0$440.0$445.0$450.0$455.0$460.0$465.0$470.0$475.0$480.0$485.0$490.0$495.0$500.0$505.0$510.0$515.0$520.0$525.0$530.0$535.0$540.0$545.0$550.0$555.0$560.0$565.0$570.0$575.0$580.0$585.0$590.0$595.0$600.0$605.0$610.0$615.0$620.0$625.0$630.0$635.0$640.0$645.0$650.0$655.0$660.0$665.0$670.0$675.0$680.0$685.0$690.0$695.0$700.0$705.0$710.0$715.0$720.0$725.0$730.0$735.0$740.0$745.0$750.0$755.0$760.0$765.0$770.0$775.0$780.0$785.0$790.0$795.0$800.0$805.0$810.0$815.0$820.0$825.0$830.0$835.0$840.0$845.0$850.0$855.0$860.0$865.0$870.0$875.0$880.0$885.0$890.0$895.0$900.0$905.0$910.0$915.0$920.0$925.0$930.0$935.0$940.0$945.0$950.0$955.0$960.0$965.0$970.0$975.0$980.0$985.0$990.0$995.0$1,000.0$1,005.0$1,010.0$1,015.0$1,020.0$1,025.0$1,030.0$1,035.0$1,040.0$1,045.0$1,050.0$1,055.0$1,060.0$1,065.0$1,070.0$1,075.0$1,080.0$1,085.0$1,090.0$1,095.0$1,100.0$1,105.0$1,110.0$1,115.0$1,120.0$1,125.0$1,130.0$1,135.0$1,140.0$1,145.0$1,150.0$1,155.0$1,160.0$1,165.0$1,170.0$1,175.0$1,180.0$1,185.0$1,190.0$1,195.0$1,200.0$1,205.0$1,210.0$1,215.0$1,220.0$1,225.0$1,230.0$1,235.0$1,240.0$1,245.0$1,250.0$1,255.0$1,260.0$1,265.0$1,270.0$1,275.0$1,280.0$1,285.0$1,290.0$1,295.0$1,300.0$1,305.0$1,310.0$1,315.0$1,320.0$1,325.0$1,330.0$1,335.0$1,340.0$1,345.0$1,350.0$1,355.0$1,360.0$1,365.0$1,370.0$1,375.0$1,380.0$1,385.0$1,390.0$1,395.0$1,400.0$1,405.0$1,410.0$1,415.0$1,420.0$1,425.0$1,430.0$1,435.0$1,440.0$1,445.0$1,450.0$1,455.0$1,460.0$1,465.0$1,470.0$1,475.0$1,480.0$1,485.0$1,490.0$1,495.0$1,500.0$1,505.0$1,510.0$1,515.0$1,520.0$1,525.0$1,530.0$1,535.0$1,540.0$1,545.0$1,550.0$1,555.0$1,560.0$1,565.0$1,570.0$1,575.0$1,580.0$1,585.0$1,590.0$1,595.0$1,600.0$1,605.0$1,610.0$1,615.0$1,620.0$1,625.0$1,630.0$1,635.0$1,640.0$1,645.0$1,650.0$1,655.0$1,660.0$1,665.0$1,670.0$1,675.0$1,680.0$1,685.0$1,690.0$1,695.0$1,700.0$1,705.0$1,710.0$1,715.0$1,720.0$1,725.0$1,730.0$1,735.0$1,740.0$1,745.0$1,750.0$1,755.0$1,760.0$1,765.0$1,770.0$1,775.0$1,780.0$1,785.0$1,790.0$1,795.0$1,800.0$1,805.0$1,810.0$1,815.0$1,820.0$1,825.0$1,830.0$1,835.0$1,840.0$1,845.0$1,850.0$1,855.0$1,860.0$1,865.0$1,870.0$1,875.0$1,880.0$1,885.0$1,890.0$1,895.0$1,900.0$1,905.0$1,910.0$1,915.0$1,920.0$1,925.0$1,930.0$1,935.0$1,940.0$1,945.0$1,950.0$1,955.0$1,960.0$1,965.0$1,970.0$1,975.0$1,980.0$1,985.0$1,990.0$1,995.0$2,000.0$2,005.0$2,010.0$2,015.0$2,020.0$2,025.0$2,030.0$2,035.0$2,040.0$2,045.0$2,050.0$2,055.0$2,060.0$2,065.0$2,070.0$2,075.0$2,080.0$2,085.0$2,090.0$2,095.0$2,100.0$2,105.0$2,110.0$2,115.0$2,120.0$2,125.0$2,130.0$2,135.0$2,140.0$2,145.0$2,150.0$2,155.0$2,160.0$2,165.0$2,170.0$2,175.0$2,180.0$2,185.0$2,190.0$2,195.0$2,200.0$2,205.0$2,210.0$2,215.0$2,220.0$2,225.0$2,230.0$2,235.0$2,240.0$2,245.0$2,250.0$2,255.0$2,260.0$2,265.0$2,270.0$2,275.0$2,280.0$2,285.0$2,290.0$2,295.0$2,300.0$2,305.0$2,310.0$2,315.0$2,320.0$2,325.0$2,330.0$2,335.0$2,340.0$2,345.0$2,350.0$2,355.0$2,360.0$2,365.0$2,370.0$2,375.0$2,380.0$2,385.0$2,390.0$2,395.0$2,400.0$2,405.0$2,410.0$2,415.0$2,420.0$2,425.0$2,430.0$2,435.0$2,440.0$2,445.0$2,450.0$2,455.0$2,460.0$2,465.0$2,470.0$2,475.0$2,480.0$2,485.0$2,490.0$2,495.0$2,500.0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 NII NIM Highlights 1.50% 1.56% 1.61% 1.72% 2.05% 2.00% 1.61% 1.83% 1.62% 1.24% 0.95% 0.87% 0.85% 0.97% 1.34% 1.27% 0.81% 1.27% 1.90% 1.12% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 WAL Peers 18.5% 17.8% 17.7% 18.3% 20.6% 19.6% 17.7% 26.2% 25.4% 18.0% 10.3% 9.6% 10.9% 11.7% 17.1% 14.9% 9.7% 16.5% 19.2% 17.1% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 WAL Peers 1,2 21,2
493% 562% 77% 124% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Note: Peers consist of 19 publicly traded banks headquartered in the US with total assets between $50B and $250B, excluding target banks of pending acquisitions, as of December 31, 2023. TSR through December 31, 2023. Source: S&P Global Market Intelligence. 1) Through Q4-23 for WAL and most peers and through Q3-23 for the remainder. 2) Refer to slide 2 for further discussion of Non-GAAP financial measures. 19 Shareholder-Focused Capital Management Robust Capital Levels Long Term Growth in TBV per Share CET1 Peer CET11 TCE/TA Peer TCE/TA1 WAL consistently generates more capital than needed to support organic growth Common Equity Tier 1 • CET1 has expanded by 210 basis points since Q3 2022 to 10.8% at year-end 2023 Tangible Common Equity / Tangible Assets2 • TCE / TA increased 120 bps from 2022 to 7.3%, primarily from earnings growth and less impact from AOCI TBV Growth and Total Shareholder Return • 19.5% TBVPS CAGR since year-end 2013 • TBVPS has increased more than 6x that of peers • Strong returns bolster capital appreciation above peers Total Shareholder Return 1 Highlights 9.3% 9.7% 10.0% 10.4% 10.7% 10.6% 9.9% 9.1% 9.3% 10.8% 8.6% 9.2% 9.4% 9.6% 10.2% 10.3% 8.6% 7.3% 6.5% 7.3% 8.4% 8.7% 8.7% 8.9% 8.4% 8.5% 7.8% 7.3% 6.3% 6.5% 11.2% 10.6% 10.7% 11.1% 10.6% 10.0% 10.0% 10.0… 9.9% 10.4% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1 WAL WAL with Dividends Added Back Peer Median Peer Median with Dividends Added Back
Appendix
Superior Deposit Liquidity and Fortified Adjusted Capital 21 Excellent Combined Insured/Collateralized Deposits & CET1 Capital Adjusting for AOCI Securities Marks Insured/collateralized deposits for peers from SEC filings or 9/30/23 RC-O data and Collateralized deposits for peers uses YE22 RC-E data. Includes Top-50 publicly traded banks headquartered in the US by assets as of September 30, 2023. Source: S&P Global Market Intelligence, Call reports. Insured Deposits % vs. CET1 Adj. (Incl. of AOCI Unrealized Securities Marks) for Top 50 Banks by Assets ABCB ASB BAC BANC BKU BOKF BPOP C CADE CBSH CFG CFR CMA COLB EWBC FCNC.A FHB FHN FIBK FITB FNB FULT GBCI HBAN HWC JPM KEY MTB NYCB ONB OZK PB PNC PNFP RF SFNC SNV SSB TCBI TFC UBSI UCBI UMBF USB VLY WAL WBS WFC WTFC ZION 50% 55% 60% 65% 70% 75% 80% 85% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 15.5% *I ns ur ed /C ol la te ra liz ed D ep os its % (Q 3- 23 ) CET1 adj. for AOCI (Q3-23) WAL Adj. CET1: 9.8% (Q4-23)
Commercial Real Estate Investor Statistics 22 CRE Investor Portfolio ($9.6 Billion; 19% of Total Loans) Distribution by LTV Underwriting Criteria and Mitigating Factors 23% 25% 29% 14% 4% 5% <=40% 41-50% 51-60% 61-70% 71-80% >80% • Low LTV & LTC (50% to low 60%) range underwriting in areas minimizes tail risk • Simple capital structure - no junior liens or mezzanine debt permitted within our structures • Majority of CRE Investor (bulk of total CRE) is located in our core footprint states • Early elevation, proactive and comprehensive review of CRE portfolio and re-margin discussions with sponsors where sweep/re-margin provisions have been triggered Note: LTV data assumes all loans are fully funded; based on most recent appraisals and utilizing, in most cases, “as stabilized” values for income producing properties. 44% 25% 8% 6% 6% 4% 2% 1% 1% 1% 2% 48% 59% 61% 50% 50% 35% 42% 51% 25% 49% 48% -50% -30% -10% 10% 30% 50% 70% 0% 10% 20% 30% 40% 50% 60% Outstanding LTV Low uncovered risk with re-margin provisions Limited Multi-Family Exposure • Only $566 million of Multi-Family concentrated in western Regional markets • No exposure to NYC area Multi-Family
Commercial Real Estate Investor: Office 23 Distribution by LTV Underwriting Criteria and Mitigating Factors • Primarily shorter-term bridge loans for repositioning or redevelopment projects • Strong sponsorship from institutional equity and large regional and national developers • All direct relationships generated by WAL • Significant up-front cash equity required from sponsors • Conservative loan-to-cost underwriting • Average LTV < 55%; Average LTC ~62% • No junior debt / mezzanine • Largely suburban exposure in “Work From Home” MSAs • 2% in CBD, 10% in Midtown, 1% Small City/Town and 87% in Suburban MSAs • Focused on B+ properties accompanied by attractive amenities or those in core locations with appropriate business plans to reposition • Class A: 64%, Class B: 33%, Class C: 3% • 94% of Class B & C exposures have LTVs < 70% • Limited near-term maturity risk • 20% to mature in 2024; 80% maturing in 2025 and beyond Key MSA Exposures $2.4 Billion; 25% of Total CRE Investor; 5% of Total Loans 7% 13% 37% 28% 7% 8% <=40% 41-50% 51-60% 61-70% 71-80% >80% 87% 1% 10% 2% Suburban Small City/Town Midtown CBD Note: LTV data assumes all loans are fully funded; based on most recent appraisals or appraisal at origination and utilizing, in most cases, “as stabilized” values for income producing properties.
