Western Alliance Bancorporation · NYSE:WAL

Western Alliance Bancorporation — Merger or Acquisition (February 2021)

13 slides from Western Alliance Bancorporation's merger presentation, Feb 16, 2021

  1. Slide 1: Western Alliance to Acquire AmeriHome

    WESTERN ALLIANCE TO ACQUIRE AMERIHOME February 16th, 2021 Copyright © 2021 Western Alliance Bancorporation. All Rights Reserved. February 16, 2021

  2. Slide 2: Forward-Looking Statements

    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. These forward-looking statements inc

  3. Slide 3: Western Alliance to Acquire AmeriHome, a Leading National B2B Mortgage Acquirer & Servicer

    Western Alliance to Acquire AmeriHome, a Leading National B2B Mortgage Acquirer & Servicer Extends WAL’s National Commercial Bank Strategy with correspondent mortgage platform that enhances growth, returns and diversification Financially compelling; produces over 30% EPS and 500 bps ROATCE accretion

  4. Slide 4: Strategic Rationale

    Strategic Rationale Unique opportunity to diversify WAL’s business and deliver strong EPS and ROE accretion rd Leading Scale ▪ 3 largest correspondent mortgage producer delivers scalability, flexibility and consistent profitability Position in ▪ Consumer Direct channel protects value of MSRs and pro

  5. Slide 5: AmeriHome Business Overview

    AmeriHome Business Overview AmeriHome is a leading national multi-channel mortgage purchaser and servicer Business Overview Mortgage Acquisition Volume Mix ($ in billions) ▪ Leading B2B Correspondent mortgage producer is attractive FY 2020 Mix by Product FY ‘15 – ‘20 Mix by Purpose Other channel for

  6. Slide 6: AmeriHome's Business Model: A Mortgage Acquisition and Servicing Ecosystem

    AmeriHome’s Business Model: A Mortgage Acquisition and Servicing Ecosystem Combination of AmeriHome’s tech-enabled business model, diversified and complementary channels and sophisticated portfolio management generates consistent and profitable returns throughout market cycles Business Fit with WAL

  7. Slide 7: AmeriHome's Business Model: Channel Focus

    AmeriHome’s Business Model: Channel Focus Correspondent paired with Consumer Direct is a highly attractive and efficient go-to-market strategy compared to traditional retail and non-bank mortgage platforms Consumer Distributed Correspondent Wholesale Direct Retail Stable Market ✓ ✓ B2B ✓ ✓ Scalable

  8. Slide 8: Transaction Summary

    Transaction Summary ▪ Est. aggregate cash purchase price of $1.0 billion, subject to final closing equity and other adjustments Purchase Price ‒ Comprised of adjusted TBV(1) + $275 million platform premium at closing ▪ Aggregate purchase price represents ~1.4x adjusted TBV(1) ▪ After-tax funding syn

  9. Slide 9: Compelling Financial Transaction

    Compelling Financial Transaction Significant EPS Accretion with Attractive TBV Earnback Enhanced Returns 20%+ <5% +500bps EPS Accretion in 2021E(1) TBVPS Dilution at Close 2022E ROATCE Accretion 30%+ <1 Year #1 EPS Accretion in 2022E TBVPS Earnback ROATCE Among Peers(2) Business Diversification Effi

  10. Slide 10: Conclusion: A Differentiated Platform, with the Right Team, at the Right Time

    Conclusion: A Differentiated Platform, with the Right Team, at the Right Time AmeriHome complements and accelerates WAL’s strategic priorities WAL’s Value Proposition AmeriHome’s Alignment Diversified national business model ✓ Industry leading franchise in 49 states Commercial focus ✓ Correspondent

  11. Slide 11: Appendix

    APPENDIX Copyright © 2021 Western Alliance Bancorporation. All Rights Reserved. February 16, 2021

  12. Slide 12: Earnings per Share Accretion Calculation

    Earnings per Share Accretion Calculation $ in millions, unless otherwise noted FY 2021E FY 2022E Projected AmeriHome Earnings $150 (1) $189 After-Tax Adjustments Amortization of Intangibles (1) (1) Amortization of Debt Mark 5 10 Payoff AMH Borrowings with WAL Cash 15 53 Cost of Excess WAL Liquidity

  13. Slide 13: AmeriHome Standalone Balance Sheet

    AmeriHome Standalone Balance Sheet $ in millions, unless otherwise noted December 31, 2020 Cash and Securities $276 Net Loans 2,808 Total Intangible Assets 2 MSR 986 Loans Eligible for Repurchase 2,540 Other Assets 315 Total Assets $6,926 Loans Eligible for Repurchase 2,540 Warehouse Borrowings 2,54

Western Alliance Bancorporation — Merger or Acquisition (February 2021) on 6ix