Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q2 2025 Earnings Presentation
23 slides from Western Alliance Bancorporation's earnings presentation, Jul 18, 2025
Slide 1: Earnings Call 2nd Quarter 2025
EARNINGS CALL 2nd Quarter 2025 July 18, 2025
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. Examples of forward-looking statemen
Slide 3: Q2 2025 Highlights
Q2 2025 Highlights 2nd Quarter 2025 | Financial Highlights Earnings & Profitability Q2 2025 Q1 2025 Q2 2024 Net Income EPS Earnings per Share $ 2.07 $ 1.79 $ 1.75 $237.8 million $2.07 Net Income 237.8 199.1 193.6 Net Income Available to Common Stockholders 227.2 195.9 190.4 22.8% Y-o-Y Net Revenue 8
Slide 4: Quarterly Income Statement
Q2 2025 Highlights Quarterly Income Statement Q2-25 Q1-25 Q2-24 Net Interest Income increased $47.0 million over the Interest Income $ 1,154.4 $ 1,095.6 $ 1,147.5 1 prior quarter primarily due to a higher average earning Interest Expense (456.8) (445.0) (490.9) asset balance Net Interest Income $ 69
Slide 5: Net Interest Drivers
Q2 2025 Highlights Net Interest Drivers Securities Portfolio and Yield Loans and HFI Yield • Securities Portfolio yields increased 18 bps, primarily due to liquidity deployment into higher 6.79% 6.65% 4.87% 4.89% 4.67% 4.63% 4.81% 6.34% 6.20% 6.17% yielding, floating rate securities $2.3 $2.3 $3.2 $
Slide 6: Net Interest Income
Q2 2025 Highlights Net Interest Income Net Interest Income and Net Interest Margin Average Earning Assets & Average Yield • Net Interest Income increased $47.0 million, or 7.2%, primarily due to a higher average balance of Dollars in millions Dollars in billions interest earning assets (AEA) 6.30% 6
Slide 7: Non-Interest Expenses and Efficiency
Q2 2025 Highlights Non-Interest Expenses and Efficiency Non-Interest Expenses and Efficiency Ratio1 Breakdown of Non-Interest Expenses • Adjusted efficiency ratio1 (excluding deposit costs) decreased 400 bps to 51.8%, but increased 30 bps 64.5% from the same period last year 62.3% 63.5% 61.2% 60.1%
Slide 8: Interest Rate Sensitivity
Q2 2025 Highlights Interest Rate Sensitivity NII Sensitivity - Ramp Scenario1 • A Ramp Scenario assumes a dynamic balance sheet and reflects an asset sensitive position on NII and a relatively neutral position on EaR 3.5% – WAL estimates a -100 bps ramp to reduce NII by (2.8)% • EaR is relatively in
Slide 9: Consolidated Balance Sheet
Q2 2025 Highlights Consolidated Balance Sheet Q2-25 Q1-25 Q2-24 Securities and Cash increased $2.2 billion, or Securities and Cash $ 21,368 1 $ 19,147 $ 21,345 1 11.6%, to $21.4 billion and flat compared to the Loans, HFS 3,022 3,238 2,007 prior year Loans, HFI 55,939 2 54,761 52,430 Loans, HFI incr
Slide 10: Loan Composition
Q2 2025 Highlights Loan Composition Loan growth from C&I businesses within Regional Banking and National Business Lines $3.5 Billion Year-over-Year Growth Increase (Decrease) by Loan Type: (in millions) QoQ YoY Total Loans, HFI $52.4 $53.3 $53.7 $54.8 $55.9 C&I $ 803 $ 3,230 Qtr Change +$1.7 +$0.9 +
Slide 11: Deposit Composition
Q2 2025 Highlights Deposit Composition Diversified deposit growth across Specialty Escrow Services and National Business Lines $4.9 Billion Year-over-Year Growth Increase (Decrease) by Deposit Type: (in millions) QoQ YoY Total Deposits $66.2 $68.0 $66.3 $69.3 $71.1 Non-Interest Bearing $ 988 $ 1,475
Slide 12: Asset Quality
Q2 2025 Highlights Asset Quality Special Mention Loans Asset Quality Ratios • Criticized Loans decreased $118 million quarterly to $1.5 billion 1.44% 1.45% 1.01% 0.94% 0.73% 0.84% 0.79% 1.25% – Special Mention Loans decreased $16 million to 1.05% $444 million (79 bps to Funded Loans) 0.93% 0.89% 0.8
Slide 13: Credit Losses and ACL Ratios
Q2 2025 Highlights Credit Losses and ACL Ratios Allowance for Credit Losses Gross Loan Charge-offs and Recoveries • Provision Expense of $39.9 million, primarily reflective of net charge-offs and loan growth Gross Charge-Offs Recoveries $12 $12 • Net Loan Charge-Offs of $29.6 million, 22 bps, $17 $1
Slide 14: Key Reserve Level Ratios
Q2 2025 Highlights Key Reserve Level Ratios Concentration in low-loss loan categories skews ACL lower relative to peers • Reserve levels enhanced by credit protection and no-to-low-loss loan categories (Fund Banking, Adjusted Total Loan ACL / Funded Loans: Q2-25 Residential & Mortgage Warehouse) 1.3
Slide 15: Fortified Adjusted Capital
Fortified Adjusted Capital CET1 capital adjusted for AOCI securities marks & reserves remains solidly above peer median levels Adjusted CET11 (incl. of AOCI Unrealized Securities Marks & Loan Loss Reserves) 15% 14% 13% 11.7%: 75th pctl 12% Q2 Q1 11.0% 11.0% 11.0%: Median 11% 10.1%: 25th pctl 10% 9%
Slide 16: Capital Accumulation
Q2 2025 Highlights Capital Accumulation Common Capital Ratios Regulatory Capital Ratios • Continue to exceed “well-capitalized” levels with 11.0% 11.2% 11.3% 11.1% 11.2% CET1 of 11.2% Tangible Common Equity / Tangible Assets1 7.2% 7.2% 7.2% 7.2% • TCE/TA remained flat at 7.2% 6.7% Capital Accretion
Slide 17: Tangible Book Value Growth
Q2 2025 Highlights Tangible Book Value Growth Long-Term Growth in TBV per Share1 Tangible Book Value per Share1 6x • TBVPS increased $1.77 to $55.87 from organic WAL WAL with Dividends Added Back earnings 522% Peer Median – Increased 3.3% quarter-over-quarter, non- 5x Peer Median with Dividends Adde
Slide 18: WAL's Industry-Leading Growth
Highlights WAL's Industry-Leading Growth Superior total shareholder returns driven by top-tier balance sheet growth and profitability • Growth-oriented business model, focused 10-Year TSR1 10-Year EPS Growth2 10-Year TBVPS Growth2 on low risk, high return loan composition, has 162% 160% 15% 18% prod
Slide 19: Management Outlook
Management Outlook 2024 Baseline 2025 Outlook Commentary Loans (HFI): $53.7 bn L (HFI): +$5.0 bn • Pipelines are healthy. Remain Balance Sheet Growth Deposits: $66.3 bn flexible based on environment. D: +$8.0 bn • Prudent to maintain excess Capital (CET1) 11.3% > 11% capital in uncertain environment
Slide 20: Questions & Answers
Questions & Answers
Slide 21: Appendix
NVA Western Alliance Bancorporation® Appendix
Slide 22: Commercial Real Estate Investor Statistics
Commercial Real Estate Investor Statistics $10.3 billion; 18% of Total Loans Underwriting Criteria and Mitigating Factors CRE Investor Portfolio (At Origination or Most Recent Appraisal) • Low LTV & LTC (50% to low 60%) range underwriting in areas minimizes tail risk 63% 59% • Simple capital structu
Slide 23: Commercial Real Estate Investor: Office
Commercial Real Estate Investor: Office $2.1 Billion; 21% of Total CRE Investor; 4% of Total Loans Distribution by LTV (At Origination or Most Recent Appraisal) Underwriting Criteria and Mitigating Factors • Primarily shorter-term bridge loans for repositioning or redevelopment projects 24% • Strong
Western Alliance Bancorporation Common Stock (DE) — Q2 2025 Earnings Presentation on 6ix