Western Alliance Bancorporation · NYSE:WAL
Western Alliance Bancorporation — Q3 2025 Earnings Presentation
24 slides from Western Alliance Bancorporation's earnings presentation, Oct 22, 2025
Slide 1: Earnings Call 3rd Quarter 2025
EARNINGS CALL 3rd Quarter 2025 October 22, 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: Q3 2025 Highlights
Q3 2025 Highlights 3rd Quarter 2025 | Financial Highlights Net Income EPS Earnings & Profitability Q3 2025 Q2 2025 Q3 2024 $260.5 million $2.28 Earnings per Share $ 2.28 $ 2.07 $ 1.80 30.4% Y-o-Y Net Income 260.5 237.8 199.8 Net Income Available to Common Stockholders 250.2 227.2 196.6 Net Revenue 9
Slide 4: Quarterly Income Statement
Q3 2025 Highlights Quarterly Income Statement Q3-25 Q2-25 Q3-24 Net Interest Income increased $52.8 million over the Interest Income $ 1,225.5 $ 1,154.4 $ 1,200.0 1 prior quarter primarily due to higher average earning asset Interest Expense (475.1) (456.8) (503.1) balances Net Interest Income $ 750
Slide 5: Net Interest Drivers
Q3 2025 Highlights Net Interest Drivers Securities Portfolio and Yield Loans and HFI Yield • Securities Portfolio yields decreased 9 bps, as average holdings of lower-yielding U.S. Treasury 6.65% 4.89% 4.67% 4.63% 4.81% 4.72% 6.34% 6.20% 6.17% 6.18% securities increased $2.1 billion quarter-over-qua
Slide 6: Net Interest Income
Q3 2025 Highlights Net Interest Income Net Interest Income and Net Interest Margin Average Earning Assets & Average Yield • Net Interest Income increased $52.8 million, or 7.6%, primarily due to a higher average balance of Dollars in millions Dollars in billions interest earning assets (AEA) 6.19% 5
Slide 7: Non-Interest Expense and Efficiency
Q3 2025 Highlights Non-Interest Expense and Efficiency Non-Interest Expense and Efficiency Ratio1 Breakdown of Non-Interest Expenses • Adjusted efficiency ratio1 (excluding deposit costs) decreased 400 bps to 47.8%, and decreased 490 bps 64.5% from the same period last year 63.5% 61.2% 60.1% 57.4% –
Slide 8: Interest Rate Sensitivity
Q3 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 3.4% – WAL estimates a -100 bps ramp to reduce NII by (2.2)% • EaR is interest rate
Slide 9: Consolidated Balance Sheet
Q3 2025 Highlights Consolidated Balance Sheet Q3-25 Q2-25 Q3-24 Securities and Cash increased $3.2 billion, or Securities and Cash $ 24,597 1 $ 21,368 $ 18,974 1 15.1%, to $24.6 billion, and increased $5.6 billion, Loans, HFS 3,502 3,022 2,327 or 29.6%, over prior year Loans, HFI 56,646 2 55,939 53,
Slide 10: Loan Composition
Q3 2025 Highlights Loan Composition Loan growth from C&I businesses within Regional Banking and National Business Lines $3.3 Billion Year-over-Year Growth Increase (Decrease) by Loan Type: (in millions) QoQ YoY Total Loans, HFI $53.3 $53.7 $54.8 $55.9 $56.6 C&I $ 814 $ 3,183 Qtr Change +$0.9 +$0.3 +
Slide 11: Deposit Composition
Q3 2025 Highlights Deposit Composition Diversified deposit growth across Specialty Escrow Services and National Business Lines $9.2 Billion Year-over-Year Growth Increase (Decrease) by Deposit Type: (in millions) QoQ YoY Total Deposits $68.0 $66.3 $69.3 $71.1 $77.2 Non-Interest Bearing $ 3,631 $ 1,6
Slide 12: Asset Quality
Q3 2025 Highlights Asset Quality Special Mention Loans Asset Quality Ratios • Criticized Loans decreased $196 million quarterly to 1.44% 1.45% $1.3 billion 0.94% 1.25% 1.24% 0.73% 0.84% 0.79% 0.52% – Special Mention Loans decreased $152 million 1.05% to $292 million (52 bps to Funded Loans) 0.89% 0.
Slide 13: Credit Losses and ACL Ratios
Q3 2025 Highlights Credit Losses and ACL Ratios • Provision Expense of $80.0 million, primarily reflective of net charge-offs, a reserve related to Allowance for Credit Losses Gross Loan Charge-offs and Recoveries Cantor Group V loan, and qualitative overlays Gross Charge-Offs Recoveries • Net Loan
Slide 14: Key Reserve Level Ratios
Q3 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: Q3-25 Residential & Mortgage Warehouse) 1.4
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% 12.1%: 75th pctl 12% Q3 11.3%: Median 11.3% 11% 10.5%: 25th pctl 10% 9% 8% 7% 6%
Slide 16: Capital Accumulation
Q3 2025 Highlights Capital Accumulation Common Capital Ratios Regulatory Capital Ratios 11.3% • Continue to exceed “well-capitalized” levels with 11.2% 11.3% 11.1% 11.2% CET1 of 11.3% Tangible Common Equity / Tangible Assets1 7.2% 7.2% 7.2% 7.2% 7.1% • TCE/TA decreased 10 bps to 7.1% Capital Accreti
Slide 17: Tangible Book Value Growth
Q3 2025 Highlights Tangible Book Value Growth Long-Term Growth in TBV per Share1 Tangible Book Value per Share1 6x • TBVPS increased $2.69 to $58.56 from organic WAL 553% WAL with Dividends Added Back earnings Peer Median – Increased 4.8% quarter-over-quarter, non- 5x Peer Median with Dividends Adde
Slide 18: WAL's Industry-Leading Performance
Highlights WAL's Industry-Leading Performance 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 222% 221% 15% 18%
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: +$8.5 bn • Dependant on organic growth & Capital (CET1) 11.3% > 11% share buybacks Up 8% - 10% •
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 $10.5 billion; 19% 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 61% 58% • Simple capital structu
Slide 23: Commercial Real Estate Investor: Office
Commercial Real Estate Investor: Office $2.2 Billion; 21% of Total CRE Investor; 4% of Total Loans Distribution by LTV (At Origination or Most Recent Appraisal) Underwriting Criteria and Mitigating Factors 37% • Primarily shorter-term bridge loans for repositioning or redevelopment projects • Strong
Slide 24: Non-Depository Financial Institution (NDFI) Loans
Non-Depository Financial Institution (NDFI) Loans NDFI loan mix adjusted for low-loss Mortgage Credit Intermediaries aligns with peer median levels Source: S&P Global Market Intelligence (peer data). Western Alliance data are preliminary as of September 30, 2025. Peer data as of June 30, 2025. Peers
Western Alliance Bancorporation Common Stock (DE) — Q3 2025 Earnings Presentation on 6ix