Western Alliance Bancorporation · NYSE:WAL

Western Alliance Bancorporation — Q4 2012 Earnings Presentation

23 slides from Western Alliance Bancorporation's earnings presentation, Jan 25, 2013

  1. Slide 1: Earnings Call

    -orporation Earnings Call

  2. Slide 2: Q4 2012 Financial Highlights

    Q4 2012 Financial Highlights o Income Statement Net income of $32.1 million, up 107.1% from $15.5 million in Q3 2012 and more than quadruple the $7.1 million in Q4 2011 Earnings per share of $0.37, up 105.6% from $0.18 in Q3 2012 and five times the $0.07 in Q4 2011, Net income of $18.9 million, excl

  3. Slide 3: Update on Western Liberty Acquisition

    Update on Western Liberty Acquisition o The Western Liberty Bancorp (WLBC) acquisition closed on October 17 * The acquisition increased total assets by $195.5 million, loans by $91 million, and deposits by $117 million * The acquisition cost was $27.5 million cash and 2,966,236 shares of WAL stock *

  4. Slide 4: Loans

    Loans Loan Growth of $929 Million Year Over Year $ in millions Loan Portfolio Composition, Q4 2011 through Q4 2012 $4,780 $4,926 $5,165 $5,333 $5,709 Growth +146 +239 +168 +9376 a Highlights $380 $361 8% $348 * $91 million (9.8% of total YOY growth) 26%| from Western Liberty acquisition $382 ™% 26%

  5. Slide 5: Deposits

    Deposits Deposit Growth of $797 Million Year Over Year —$inmitions Deposit Portfolio Composition, Q4 2011 through Q4 2012 $5,658 $5,899 $6,001 $6,162 $6,455 Highlights Growth +241 +102 +161 +293 * $117 million (14.7% of total YOY growth) from Western 21% Liberty acquisition 20% 8% | + Increasein DDA

  6. Slide 6: Q4 2012 WAL Consolidated Balance Sheet

    Q4 2012 WAL Consolidated Balance Sheet ($ in millions) Q4-12 Q3-12 Q4-11 Investments & Cash $ 1441 $ 1647 $ 1580 Total Loans $ 5,709 $ 5,333 $ 4,780 Allowance for Loan Loss $ (95) $ (97) $ (99) Other Assets $568 $ 521 $ 584 Total Assets $ 7,623 $ 7,404 $ 6,845 Deposits $ 6455 $ 6,162 $ 5,659 Other L

  7. Slide 7: Western Alliance Bank

    Western Alliance Bank Sin milions Net Interest Income($) and Net Interest Margin(%)" Operating Expense($)" and Efficiency Ratio(%) at 112 9242 342 412 Q441 142 Q242, 34212 Pre Tax Pre Provision Income($)" and Pre Pre ROA(%) Net Income($) and ROA(%) Q441 112 Q2-12 Q3-12 Q4-12 Q441 Q1-12 © 0242 3-412

  8. Slide 8: Torrey Pines Bank

    Torrey Pines Bank Sin milions Net Interest Income($) and Net Interest Margin(%)" Operating Expense($)" and Efficiency Ratio(%) aatt att 0212 aat2 aad Q4414 9 1412 242 342-12 Pre Tax Pre Provision Income($)" and Pre Pre ROA(%) Net Income($) and ROA(%)* 1.31% 1.30% * Excludes discontinued ‘operations

  9. Slide 9: Bank of Nevada

    Bank of Nevada $ in millions Net Interest Income($) and Net Interest Margin(%)" Operating Expense($)" and Efficiency Ratio(%) 54.4% 4.50% 54.0% 5 90 52.1% $30.1 [ aat at 9212 0342 aa Q411 Qt42 242342 aa 3 Pre Tax Pre Provision Income($) and Pre Pre ROA(%) Net Income($) and ROA(%) 0.99% Q441 112 Q2-1

  10. Slide 10: Q4 2012 WAL Consolidated Financial Results

    Q4 2012 WAL Consolidated Financial Results ( inmillions, except EPS) Q4-12 Q3-12. Q4-11 Consistent Earnings Growth Net Interest Income $ 774 $ 71.9 $ 687 [tet income more than Operating Non Interest Income 5.41 5.4 5.6 quadruple prior-year Total Revenue $ 825 $ 77.3 $ 743 Operating Expenses (45.7) (

  11. Slide 11: EPS Walkforward Q3 2012 — Q4 2012

    EPS Walkforward Q3 2012 — Q4 2012 Components of Changes in Earnings Per Share $0.15 ($0.04) $0.04 $0.37 0.01) $0.04 ($0.01) iesinay = 0.22 c= «(S $0.20 Q3 2012 Op EPS Nut Prepay Fees Op exp 4.2012 0p EPS WLB Merger Affinity Cards OtherGains EPS Q4.2012 aa ChLhmhmhmmmrmmrttststs—s—i‘isSSSsSsi‘CN

  12. Slide 12: WAL Consolidated Financial Metrics

    WAL Consolidated Financial Metrics ‘Sieben eiopenmcnswamais Net Interest Income($) and Net Interest Margin(%)" Operating Expense($)" and Efficiency Ratio(%) $71.9) i . | at 112 9242 342 412 Q441 142 Q242, 34212 Pre Tax Pre Provision Income($)" and Pre Pre ROA(%) Net Income($) and ROA(%) Q441 112 Q2-

  13. Slide 13: WAL Consolidated Net Interest Margin Drivers

    WAL Consolidated Net Interest Margin Drivers Cash and Short Term Investments Total Investments and Yield "Short-Term Investments Cash LL aat at 9212 0342 aa12 Q411 Qt42 242342 aa Loans and Yield Interest Bearing Deposits and Cost of Funds 0.54% Q441 112 Q212 Q3-12 4-12 Q441 112 0242 342 Q4-12 Eee

  14. Slide 14: Pass Credits and Loan Grades 12/31/11 — 12/31/12

    Pass Credits and Loan Grades 12/31/11 — 12/31/12 Sin millions Composition of Pass Credits Composition of Pass Credits 12/31/11 12/31/12 Change by Loan Grade 2011-2012 Wtd Grade $492 Wtd Grade 4.33 4.16 $389 s144 ak ov _ =_— = % $20 “$47 saa 1 2 5 6 8 Pass _ Watch youn | Eee

  15. Slide 15: Problem Loans and Repossessed Assets

    Problem Loans and Repossessed Assets” $ in millions $441 $416 $410 $415 $308 $112 $98 Be ke $111 $93 $104 $105 $123 $106 $89 $81 $77 $78 $77 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 lm Repossessed Assets m Non-PerformingLoans mi Classified AccruingLoans » Watch Loans Note: Accruing TDR’s total $84.6 million as

  16. Slide 16: Net Charge-Offs and Provision Q4 2011 — Q4 2012

    Net Charge-Offs and Provision Q4 2011 — Q4 2012 Net Charge-Offs and Charge-Off Rate Q4 2011- Q4 2012 === Affinity Card Mark to Fair Value ($2.6 $14.1 $14.1 $14.0 $13.5 mil and 19 bps increase to NCO rate) was =n TPB == BON ®Charge-Off Rate Q4-11 Ql-12 Q212 Q312 Q412 Loan Provision Q4 2011- Q4 2012 $

  17. Slide 17: Charge-Offs by Vintage and Remaining Balances

    Charge-Offs by Vintage and Remaining Balances” Cumulative Charge-Offs Loan Balances Outstanding 2000 - 2012 1.5% 2000 - 2012 $6 eM <— 2.4% 1,699 $133 1 67.6% q $3,825 2000 - 2003 Hi 2004 - 2008 2009 - 2012 Net Charge-Offs and Outstanding Balances By Vintage 2000 2001-2002 2003-2004 = 2005 2006-2007

  18. Slide 18: 2003-2012 Investor CRE & Construction

    2003-2012 Investor CRE & Construction: Year of Origination and Charge-Off $in millions Vintage Charge Off Year Balance Year 2003 2004 2005 —-2006—2007_—«2008~— 200920102011 2012_—sTotal @4QI2 2003 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $1.0 $0.1 $0.2 $0.1 $14 S411 2004 $0.0 $0.0 $0.0 $0.1 $1.0 $2.9 $2.8 $0.3

  19. Slide 19: Regulatory Capital Q4 2011 — Q4 2012

    Regulatory Capital Q4 2011 — Q4 2012 Tangible Book Value/Share Tier 1 Common, Tier 1, and Total Risk Based Capital @-Tier 1Common =@=Tier 1RBC —@=Total RBC $oaa Se ee 11.3% 11.3% 11.0% 11.0% 11.3% Q4-11 Q1-12 Q2-12 Q312 Q412 Q4-11 Q1-12 Q2-12 Q312 Q412 Eee

  20. Slide 20: Proposed Acquisition of Centennial Bank

    Proposed Acquisition of Centennial Bank © Centennial is a one-branch $582 million asset bank (ILC) located in Fountain Valley, CA (Orange County) — Its business is focused on the origination of brokered commercial real estate loans in Arizona, Californiaand Nevada — It was previously owned by LandAm

  21. Slide 21: Outlook 1st Quarter 2013

    Outlook 1% Quarter 2013 o Loan and deposit growth o Net interest margin o Efficiency ratio o Asset quality o Acquisition integration Eee

  22. Slide 22: Question & Answer

    WA WESTERN ALLIANCE BANCORPORATION™ Question & Answer

  23. Slide 23: Question & Answer 4th Quarter 2012 Earnings Call

    Question & Answer 4th Quarter 2012 Earnings Call January 25, 2013 Western Alliance Bancorporation (NYSE: WAL) 2 oIncome Statement –Net income of $32.1 million, up 107.1% from $15.5 million in Q3 2012 and more than quadruple the $7.1 million in Q4 2011 –Earnings per share of $0.37, up 105.6% from $0.

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