8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  January 25, 2018

WESTERN ALLIANCE BANCORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-32550	88-0365922
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One E. Washington Street, Phoenix, Arizona  85004

 (Address of principal executive offices)               (Zip Code)

(602) 389-3500

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On January 25, 2018, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended December 31, 2017 and posted on its website its fourth quarter 2017 Earnings Conference Call Presentation, which contains certain additional historical and forward-looking information relating to the Company.  Copies of the press release and presentation slides are attached hereto as Exhibits 99.1 and 99.2, respectively.  

The information in this report (including Exhibits 99.1 and 99.2 hereto) is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such filing.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

99.1         Press Release dated January 25, 2018.

99.2         Fourth Quarter 2017 Earnings Conference Call dated January 26, 2018.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WESTERN ALLIANCE BANCORPORATION
	(Registrant)
	/s/ Dale Gibbons
	Dale Gibbons
	Executive Vice President and
	Chief Financial Officer
Date:	January 25, 2018

EX-99.1

Western Alliance Bancorporation
One East Washington Street
Phoenix, AZ 85004
www.westernalliancebancorporation.com

PHOENIX--(BUSINESS WIRE)--January 25, 2018

FOURTH QUARTER AND FULL YEAR 2017 FINANCIAL RESULTS

Net income	Earnings per share	Net interest margin	Efficiency ratio	Book value per common share
$89.3 million	$0.85	4.73%	40.47%	$21.13

CEO COMMENTARY:

Robert Sarver, Chairman and CEO commented, “The year 2017 ended as expected for Western Alliance with outstanding results for our shareholders. Our performance is underscored by strong organic loan and deposit growth, plus expanding revenue well over the rate of expense growth. Our core EPS² grew 22% year over year from $2.54 to $3.10. Net income grew 25% from $259.8 million to $325.5 million.

For the past three years, we have posted organic annual growth of $1.5 billion to $3.0 billion in total assets. Total loans grew $1.89 billion to $15.09 billion for the year, up $572 million for the quarter. Total deposits grew $2.42 billion to $16.97 billion for the year, up $68 million for the quarter. Our hands-on approach led to strong metrics for asset quality – nonperforming assets to total assets for the year was 0.36% compared to 0.51% in 2016 and net loan losses for the year were 0.01% of total loans.

With the benefits of tax reform ahead, coupled with the energy and drive that our bankers bring to clients in our markets, we are well positioned to continue our strong operating performance."

LINKED-QUARTER BASIS	FULL YEAR
FINANCIAL HIGHLIGHTS:

▪ Net income and earnings per share of $89.3 million and $0.85 compared to $82.8 million and $0.79, respectively

▪ Net operating revenue of $223.3 million constituting growth of $11.6 million compared to an increase in operating non-interest expenses of $6.4 million¹

▪ Operating pre-provision net revenue of $127.8 millionup$5.2 million from $122.7 million¹

▪ Income tax expense includes the effect of the Tax Cut and Jobs Act and related actions, which in aggregate resulted in essentially no change in income performance

▪ Net income of $325.5 million and earnings per share of $3.10, compared to $259.8 million and $2.50, respectively

▪ Net operating revenue of $827.7 million, constituting year-over-year growth of 18.4%, or $128.6 million, compared to an increase in operating non-interest expenses of 13.3%, or $42.3 million¹  

▪ Operating pre-provision net revenue of $466.6 million up $86.2 million from $380.4 million¹ 

▪ Income tax expense increased $24.9 million due to an increase in pre-tax income, while the effective tax rate was stable at 28%

FINANCIAL POSITION RESULTS:

▪ Total loans of $15.09 billion, up $572 million

▪ Total deposits of $16.97 billion, up $68 million

▪ Stockholders' equity of $2.23 billion, up $84 million

▪ Increase in total loans of $1.89 billion

▪ Increase in total deposits of $2.42 billion

▪ Increase in stockholders' equity of $338 million

LOANS AND ASSET QUALITY:

▪ Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.36% compared to 0.42%

▪ Annualized net loan charge-offs to average loans outstanding of 0.04%, compared to 0.01%

▪ Nonperforming assets to total assets of 0.36%, compared to 0.51%

▪ Net loan charge-offs to average loans outstanding of 0.01%, compared to 0.02%

KEY PERFORMANCE METRICS:

▪ Net interest margin of 4.73%, compared to 4.65%

▪ Return on average assets and return on tangible common equity¹ of 1.79% and 18.80%, compared to 1.71% and 18.18%, respectively

▪ Tangible common equity ratio of 9.6%, compared to 9.4%¹ 

▪ Tangible book value per share, net of tax, of $18.31, an increase from $17.53¹ 

▪ Operating efficiency ratio of 40.7%, compared to 40.0%¹ 

▪ Net interest margin of 4.65%, compared to 4.58%

▪ Return on average assets and return on tangible common equity¹ of 1.72% and 18.32%, compared to 1.61% and 17.71%, respectively

▪ Tangible common equity ratio of 9.6%, compared to 9.4%¹ 

▪ Tangible book value per share, net of tax, of $18.31an increase of 20.7% from $15.17¹ 

▪ Operating efficiency ratio of 41.5%, compared to 43.4%¹ 

¹   See reconciliation of Non-GAAP Financial Measures beginning on page 19.

²   Non-GAAP Financial Measure, excludes acquisition / restructure expense, net of tax.

1

Income Statement

Net interest income was $211.0 million in the fourth quarter 2017, an increase of $9.4 million from $201.6 million in the third quarter 2017, and an increase of $35.8 million or 20.4%, compared to the fourth quarter 2016. Net interest income in the fourth quarter 2017 includes $7.1 million of total accretion income from acquired loans, compared to $7.5 million in the third quarter 2017, and $7.0 million in the fourth quarter 2016. For 2017, net interest income was $784.7 million an increase of $127.5 million or 19.4%, from $657.2 million in 2016.

The Company’s net interest margin in the fourth quarter 2017 was 4.73%, an increase from 4.65% the third quarter 2017, and an increase from 4.57% in the fourth quarter 2016. The increase in net interest margin from the third quarter 2017 primarily relates to an increase in yield on most interest-earning asset categories. The increase in net interest margin from the fourth quarter 2016 primarily relates to the rise in short-term interest rates during the year. For 2017, net interest margin was 4.65%, compared to 4.58% in 2016. The increase in net interest margin from the prior year relates primarily to an increase in loan yield resulting from additional income from the Hotel Franchise Finance acquisition, partially offset by higher costs of deposits and qualifying debt.

Operating non-interest income was $12.3 million for the fourth quarter 2017, compared to $10.1 millionfor thethird quarter 2017, and $10.4 million for the fourth quarter 2016.¹ Operating non-interest income for the fourth quarter 2017 was elevated as a result of warrant income of $1.4 million and net gains on SBA loan sales of $1.2 million. For 2017, operating non-interest income was $43.0 million an increase of $1.2 million or 2.8%, compared to $41.8 million in 2016.¹ 

Net operating revenue was $223.3 million for the fourth quarter 2017, an increase of $11.6 million, compared to $211.7 million for the third quarter 2017, and an increase of $37.6 million or 20.2%, compared to $185.7 million for the fourth quarter 2016.¹ For 2017, net operating revenue was $827.7 million an increase of $128.6 million, or 18.4%, compared to $699.1 million in 2016.¹ 

Operating non-interest expense was $95.4 million for the fourth quarter 2017, compared to $89.0 million for the third quarter 2017, and $82.7 million for the fourth quarter 2016.¹ The Company’s operating efficiency ratio¹ on a tax equivalent basis was 40.7% for the fourth quarter 2017, compared to 40.0% for the third quarter 2017, and 42.4% for the fourth quarter 2016. For 2017, operating non-interest expense was $361.0 million, an increase of $42.3 million or 13.3%, compared to $318.7 million in 2016.¹ This increase was primarily driven by an increase in salaries and benefits, including incentive compensation, to accommodate growth and performance.

Income tax expense was $35.0 million for the fourth quarter 2017, compared to $34.9 million for the third quarter 2017, and $26.4 million for the fourth quarter 2016. Income tax expense for the fourth quarter 2017 is comparable to the prior quarter due to remeasurement of the Company's deferred tax assets and liabilities as a result of the Tax Cut and Jobs Act and related actions. This adjustment to the deferred tax asset is management's best estimate based upon the information available as of this earnings release and is subject to change as final tax related calculations are completed in conjunction with the filing of our Form 10-K and the one-year remeasurement period granted by the SEC.

Net income was $89.3 million for the fourth quarter 2017, an increase of $6.5 million from $82.8 million for the third quarter 2017, and an increase of $19.5 million or 28.0%, from $69.8 million for the fourth quarter 2016. Earnings per share was $0.85 for the fourth quarter 2017, compared to $0.79 for the third quarter 2017, and $0.67 for the fourth quarter 2016. For 2017, net income was $325.5 million an increase of $65.7 million or 25.3%, compared to $259.8 million in 2016. Earnings per share for 2017 was $3.10 an increase of 23.9%, compared to $2.50 in 2016.

The Company views its operating pre-provision net revenue ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net operating revenue less operating non-interest expense. For the fourth quarter 2017, the Company’s operating PPNR was $127.8 million, up from $122.7 million in the third quarter 2017, and up24.1% from $103.1 million in the fourth quarter 2016.¹ The non-operating items¹ for the fourth quarter 2017 consisted primarily of net gains on sales of investment securities of $1.4 million. For 2017, operating PPNR was $466.6 million an increase of $86.2 million or 22.7%, from $380.4 million in 2016.¹

The Company had 1,725 full-time equivalent employees and 47 offices at December 31, 2017, compared to 1,673 employees and 47 offices at September 30, 2017, and 1,514 employees and 48 offices at December 31, 2016.

2

Balance Sheet

Gross loans totaled $15.09 billion at December 31, 2017, an increase of $572 million from $14.52 billion at September 30, 2017, and an increase of $1.89 billion from $13.21 billion at December 31, 2016. The year-over-year increase is due to organic loan growth. At December 31, 2017, the allowance for credit losses to gross loans held for investment was 0.93%, compared to 0.94% at September 30, 2017, and 0.95% at December 31, 2016. At December 31, 2017, the allowance for credit losses to total organic loans was 1.03%, compared to 1.06% at September 30, 2017, and 1.11% at December 31, 2016. The Company defines its organic loans as those loans that have not been acquired in a transaction accounted for as a business combination.

Consistent with accounting principles generally accepted in the United States ("GAAP"), the allowance for credit losses is not carried over in an acquisition because acquired loans are recorded at fair value, which discounts the loans based on expected future cash flows. Credit discounts on acquired loans are included as a reduction to gross loans. These discounts totaled $27.0 million at December 31, 2017, compared to $32.7 million at September 30, 2017, and $47.3 million at December 31, 2016.

Deposits totaled $16.97 billion at December 31, 2017, an increase of $68 million from $16.90 billion at September 30, 2017, and an increase of $2.42 billion from $14.55 billion at December 31, 2016. The increase from both the prior quarter and from December 31, 2016 is the result of organic deposit growth. Non-interest bearing deposits were $7.43 billion at December 31, 2017, compared to $7.61 billion at September 30, 2017, and $5.63 billion at December 31, 2016. Non-interest bearing deposits comprised 43.8% of total deposits at December 31, 2017, compared to 45.0% at September 30, 2017, and 38.7% at December 31, 2016. The proportion of savings and money market balances to total deposits was 37.3%, compared to 37.3% at September 30, 2017, and 42.1% at December 31, 2016. Certificates of deposit as a percentage of total deposits were 9.6% at December 31, 2017, compared to 9.4% at September 30, 2017, and 10.0% at December 31, 2016. The Company’s ratio of loans to deposits was 88.9% at December 31, 2017, compared to 85.9% at September 30, 2017, and 90.8% at December 31, 2016.

Borrowings totaled $390 million at December 31, 2017, an increase from zero at September 30, 2017, and an increase of $310 million from $80 million at December 31, 2016. The increase in borrowings from both the prior quarter and the prior year is due to an increase in FHLB overnight advances.

Qualifying debt totaled $377 million at December 31, 2017, compared to $373 million at September 30, 2017, and $368 million at December 31, 2016.

Stockholders’ equity at December 31, 2017 was $2.23 billion, compared to $2.15 billion at September 30, 2017, and $1.89 billion at December 31, 2016.

At December 31, 2017, tangible common equity, net of tax, was 9.6% of tangible assets¹ and total capital was 13.2% of risk-weighted assets. The Company’s tangible book value per share¹ was $18.31 at December 31, 2017, up 20.7% from December 31, 2016.

Total assets increased2.0% to $20.33 billion at December 31, 2017, from $19.92 billion at September 30, 2017, and increased18.2% from $17.20 billion at December 31, 2016. The increase in total assets from the prior year relates primarily to organic loan growth and an increase in investment securities resulting from utilized cash from increased deposits.

Asset Quality

The provision for credit losses was $5.0 million for the fourth quarter 2017, consistent with $5.0 millionfor the third quarter 2017, and compared to $1.0 million for the fourth quarter 2016. Net loan charge-offs (recoveries) in the fourth quarter 2017 were $1.4 million or 0.04% of average loans (annualized), compared to $0.4 million, or 0.01%, in the third quarter 2017, and $(0.8) million, or (0.03)%, in the fourth quarter 2016.

Nonaccrual loans decreased$11.1 million to $43.9 million during the quarter and increased $3.7 million during the year. Loans past due 90 days and still accruing interest totaled $43 thousand at December 31, 2017, compared to $44 thousand at September 30, 2017, and $1.1 million at December 31, 2016. Loans past due 30-89 days and still accruing interest totaled $10.1 million at quarter end, an increase from $5.2 million at September 30, 2017, and an increase from $6.3 million at December 31, 2016.

Repossessed assets totaled $28.5 million at December 31, 2017, a decrease of $0.5 million from $29.0 million at September 30, 2017, and a decrease of $19.3 million from $47.8 million at December 31, 2016. Adversely graded loans and non-performing assets totaled $355.2 million at December 31, 2017, a decrease of $51.0 million from $406.2 million at September 30, 2017, and a decrease of $12.3 million from $342.9 million at December 31, 2016.

As the Company’s asset quality improved and its capital increased, the ratio of classified assets to Tier I capital plus the allowance for credit losses, a common regulatory measure of asset quality, was 10.3% at December 31, 2017, compared to 10.8% at September 30, 2017, and 11.8% at December 31, 2016.¹ 

¹ See reconciliation of Non-GAAP Financial Measures beginning on page 19.

3

Segment Highlights

The Company's reportable segments are aggregated primarily based on geographic location, services offered, and markets served. The Company's regional segments, which include, Arizona, Nevada, Southern California, and Northern California provide full service banking and related services to their respective markets. The operations from the regional segments correspond to the following banking divisions: Alliance Bank of Arizona, Bank of Nevada and First Independent Bank, Torrey Pines Bank, and Bridge Bank.

The Company's National Business Lines ("NBL") segment provides specialized banking services to niche markets. The Company's NBL reportable segments include Homeowner Associations ("HOA") Services, Hotel Franchise Finance ("HFF") Public & Nonprofit Finance, Technology & Innovation, and Other NBLs. These NBLs are managed centrally and are broader in geographic scope than our other segments, though still predominately located within our core market areas. The HOA Services NBL corresponds to the Alliance Association Bank division. The HFF NBL includes the hotel franchise loan portfolio purchased from GE Capital on April 20, 2016. The operations of Public and Nonprofit Finance are combined into one reportable segment. The Technology & Innovation NBL includes the operations of Equity Fund Resources, the Life Sciences Group, the Renewable Resource Group, and Technology Finance. The Other NBLs segment consists of the operations of Corporate Finance, Mortgage Warehouse Lending, and Resort Finance.

The Corporate & Other segment consists of corporate-related items, income and expense items not allocated to our other reportable segments, and inter-segment eliminations.

Key management metrics for evaluating the performance of the Company's Arizona, Nevada, Southern California, Northern California, and NBL segments include loan and deposit growth, asset quality, and pre-tax income.

The regional segments reported gross loan balances of $8.38 billion at December 31, 2017, an increase of $428 million during the quarter, and an increase of $835 million during the year. Each of the regional segments had loan growth during the quarter, with Arizona and Nevada contributing the largest increases of $192 million and $159 million, respectively. The growth in loans during the year was primarily driven by an increase of $368 million in Arizona and $180 million in Northern California. Total deposits for the regional segments were $12.94 billion, a decrease of $261 million during the quarter, and an increase of $1.43 billion during the year. Arizona and Southern California had decreases in deposits during the quarter of $357 million and $51 million, respectively, which was partially offset by an increase of $146 million in Northern California. Each of the regional segments generated increased deposits during the year, with Arizona contributing the largest increase of $998 million, followed by Nevada and Northern California with increases of $220 million and $138 million, respectively.

Pre-tax income for the regional segments was $83.5 million for the three months ended December 31, 2017, a decrease of $2.6 million from the three months ended September 30, 2017, and an increase of $7.1 million from the three months ended December 31, 2016. Arizona and Nevada had the largest decreases in pre-tax income of $3.1 million and $2.7 million, respectively, compared to the three months ended September 30, 2017, which were partially offset by an increase of $3.7 million in Northern California. Arizona, Northern California, and Nevada had increases in pre-tax income from the three months ended December 31, 2016 of $3.1 million, $2.9 million, and $2.0 million, respectively, which were partially offset by a decrease of $0.9 million in Southern California. For the year ended December 31, 2017, the regional segments reported total pre-tax income of $327.0 million, an increase of $30.0 million compared to the year ended December 31, 2016. Arizona and Nevada contributed the largest increases of $22.0 million and $8.9 million, respectively, which were partially offset by decreases of $0.5 million and $0.4 million in Northern California and Southern California, respectively.

The NBL segments reported gross loan balances of $6.71 billion at December 31, 2017, an increase of $145 million during the quarter, and an increase of $1.06 billion during the year. The increase in loans for the NBL segments compared to the prior quarter relates primarily to the HFF, Technology & Innovation, and Other NBLs segments, which increased by $55 million, $49 million, and $30 million, respectively. During the year, the increases were driven by the Other NBLs, Public & Nonprofit Finance, and Technology & Innovation, which increased loans by$766 million, $126 million, and $87 million, respectively. Total deposits for the NBL segments were $3.97 billion, an increase of $355 million during the quarter, and an increase of $1.04 billion during the year. The Technology & Innovation and HOA Services segments increased deposits during the quarter by $278 millionand $77 million, respectively. The increase of $1.04 billion during the year is the result of growth in the Technology & Innovation and HOA Services of $699 million and $340 million, respectively.

Pre-tax income for the NBL segments was $50.8 million for the three months ended December 31, 2017, an increase of $5.2 million from the three months ended September 30, 2017, and an increase of $10.3 million from the three months ended December 31, 2016. The increase in pre-tax income from the prior quarter relates primarily to the Other NBLs segment, which increased $6.6 million. This increase was offset by decreases in pre-tax income from the HFF and Public & Nonprofit Finance segments of $1.4 million and $0.3 million, respectively. All NBLs had increases in pre-tax income from the prior year, with the Other NBLs and Technology & Innovation segments contributing the largest increases of $3.9 million and $2.2 million, respectively. Pre-tax income for the NBLs for the year ended December 31, 2017 totaled $176.5 million, compared to $140.0 million for the year ended December 31, 2016. All NBL segments had increases in pre-tax income compared to the year ended December 31, 2016, with the largest increases in HFF and HOA Services of $12.3 million, and $8.3 million, respectively.

4

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its fourth quarter 2017 financial results at 12:00 p.m. ET on Friday, January 26, 2018. Participants may access the call by dialing 1-888-317-6003 and using passcode 0958016 or via live audio webcast using the website link https://services.choruscall.com/links/wal180126.html. The webcast is also available via the Company’s website at www.westernalliancebancorporation.com. Participants should log in at least 15 minutes early to receive instructions. The call will be recorded and made available for replay after 2:00 p.m. ET January 26th through 9:00 a.m. ET February 26th by dialing 1-877-344-7529 passcode: 10115798.

Reclassifications

Certain amounts in the Consolidated Income Statements for the prior periods have been reclassified to conform to the current presentation. The reclassifications have no effect on net income or stockholders’ equity as previously reported.

Use of Non-GAAP Financial Information

This press release 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 this press release. 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.

Early Adoption of Accounting Standards

During the fourth quarter 2017, the Company elected to early adopt Accounting Standards Update ("ASU") 2017-12, Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU simplify the application of hedge accounting by changing how companies assess effectiveness of hedging instruments. The guidance also amends the presentation and disclosure requirements for hedging activities. Under the new accounting guidance, a qualitative hedge effectiveness assessment can be performed after the initial quantitative assessment. In addition, the timing of the completion of the initial quantitative hedge effectiveness assessment may be pushed out to the first quarterly reporting date subsequent to entering into the hedge.

Upon adoption of the new accounting guidance, the Company recorded a cumulative basis adjustment of $0.5 million for its fair value hedges as an adjustment to retained earnings as of January 1, 2017 and, the effects of hedging ineffectiveness previously recognized in each of the quarters of 2017 was reversed, which totaled less than $0.1 million for the year.

Cautionary Note Regarding Forward-Looking Statements

This release 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, and future economic performance, including our recent domestic select-service hotel franchise finance loan portfolio acquisition. 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, 2016 as filed with the Securities and Exchange Commission; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; 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 release 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.

About Western Alliance Bancorporation

With more than $20 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Its primary subsidiary, Western Alliance Bank, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior service and a full spectrum of deposit, lending, treasury management, international banking and online banking products and services. Western Alliance Bank operates full-service banking divisions: Alliance Bank of Arizona, Bank of Nevada, Bridge Bank, First Independent Bank and Torrey Pines Bank. The bank also serves business customers through a robust national platform of specialized financial services including Corporate Finance, Equity Fund Resources, Hotel Franchise Finance, Life Sciences Group, Mortgage Warehouse Lending, Public and Nonprofit Finance, Renewable Resource Group, Resort Finance, Technology Finance and Alliance Association Bank. For more information, visit westernalliancebancorporation.com.

5

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
	As of December 31,
	2017		2016		Change %
	(in millions)
Total assets	$	20,329.1	$	17,200.8	18.2	%
Total loans, net of deferred fees	15,093.9		13,208.5		14.3
Securities and money market investments	3,820.4		2,767.8		38.0
Total deposits	16,972.5		14,549.8		16.7
Borrowings	390.0		80.0		NM
Qualifying debt	376.9		367.9		2.4
Stockholders' equity	2,229.2		1,891.5		17.8
Tangible common equity, net of tax (1)	1,931.1		1,593.6		21.2
Selected Income Statement Data:
	For the Three Months Ended December 31,						For the Year Ended December 31,
	2017		2016		Change %		2017		2016		Change %
	(in thousands, except per share data)						(in thousands, except per share data)
Interest income	$	228,459	$	187,411	21.9	%	$	845,513	$	700,506	20.7	%
Interest expense	17,430		12,142		43.6		60,849		43,293		40.6
Net interest income	211,029		175,269		20.4		784,664		657,213		19.4
Provision for credit losses	5,000		1,000		NM		17,250		8,000		NM
Net interest income after provision for credit losses	206,029		174,269		18.2		767,414		649,213		18.2
Non-interest income	13,688		10,540		29.9		45,344		42,915		5.7
Non-interest expense	95,398		88,645		7.6		360,941		330,949		9.1
Income before income taxes	124,319		96,164		29.3		451,817		361,179		25.1
Income tax expense	34,973		26,364		32.7		126,325		101,381		24.6
Net income	$	89,346	$	69,800	28.0		$	325,492	$	259,798	25.3
Diluted earnings per share	$	0.85	$	0.67	26.9		$	3.10	$	2.50	24.0

(1)	See Reconciliation of Non-GAAP Financial Measures.
NM	Changes +/- 100% are not meaningful.

6

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
	At or for the Three Months Ended December 31,						For the Year Ended December 31,
	2017		2016		Change %		2017		2016		Change %
Diluted earnings per share	$	0.85	$	0.67	26.9	%	$	3.10	$	2.50	24.0	%
Book value per common share	21.13		18.00		17.4
Tangible book value per share, net of tax (1)	18.31		15.17		20.7
Average shares outstanding (in thousands):
Basic	104,342		103,788		0.5		104,179		103,042		1.1
Diluted	105,164		104,765		0.4		104,997		103,843		1.1
Common shares outstanding	105,487		105,071		0.4

Selected Performance Ratios:
Return on average assets (2)	1.79	%	1.63	%	9.8	%	1.72	%	1.61	%	6.8	%
Return on average tangible common equity (1, 2)	18.80		17.59		6.9		18.32		17.71		3.4
Net interest margin (2)	4.73		4.57		3.5		4.65		4.58		1.5
Operating efficiency ratio - tax equivalent basis (1)	40.73		42.42		(4.0	)	41.51		43.42		(4.4	)
Loan to deposit ratio	88.93		90.78		(2.0	)
Asset Quality Ratios:
Net charge-offs (recoveries) to average loans outstanding (2)	0.04	%	(0.03	)%	NM		0.01	%	0.02	%	(50.0	)%
Nonaccrual loans to gross organic loans	0.29		0.31		(6.5	)
Nonaccrual loans and repossessed assets to total assets	0.36		0.51		(29.4	)
Loans past due 90 days and still accruing to gross loans	0.00		0.01		(100.0	)
Allowance for credit losses to gross loans	0.93		0.95		(2.1	)
Allowance for credit losses to nonaccrual loans	318.61		309.65		2.9

Capital Ratios (1):
	December 31, 2017		September 30, 2017		December 31, 2016
Tangible common equity (1)	9.6	%	9.4	%	9.4	%
Common Equity Tier 1 (1), (3)	10.4		10.4		10.0
Tier 1 Leverage ratio (1), (3)	10.3		10.1		9.9
Tier 1 Capital (1), (3)	10.8		10.8		10.5
Total Capital (1), (3)	13.2		13.3		13.2

(1)	See Reconciliation of Non-GAAP Financial Measures.
(2)	Annualized for the three month periods ended December 31, 2017 and 2016.
(3)	Capital ratios for December 31, 2017 are preliminary until the Call Report is filed.
NM	Changes +/- 100% are not meaningful.

7

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
	Three Months Ended December 31,						For the Year Ended December 31,
	2017			2016			2017			2016
	(dollars in thousands, except per share data)
Interest income:
Loans	$	200,204		$	168,881		$	747,510		$	636,596
Investment securities	26,312			16,725			88,639			58,540
Other	1,943			1,805			9,364			5,370
Total interest income	228,459			187,411			845,513			700,506
Interest expense:
Deposits	12,459			7,729			41,965			29,722
Qualifying debt	4,734			4,252			18,273			12,998
Borrowings	237			161			611			573
Total interest expense	17,430			12,142			60,849			43,293
Net interest income	211,029			175,269			784,664			657,213
Provision for credit losses	5,000			1,000			17,250			8,000
Net interest income after provision for credit losses	206,029			174,269			767,414			649,213
Non-interest income:
Service charges	5,157			4,865			20,346			18,824
Income from equity investments	1,519			1,054			4,496			2,664
Card income	1,796			1,381			6,313			5,226
Income from bank owned life insurance	965			904			3,861			3,762
Foreign currency income	906			747			3,536			3,419
Lending related income and gains (losses) on sale of loans, net	1,466			488			2,212			5,295
Gain (loss) on sales of investment securities, net	1,436			58			2,343			1,059
Other	443			1,043			2,237			2,666
Total non-interest income	13,688			10,540			45,344			42,915
Non-interest expenses:
Salaries and employee benefits	57,704			49,702			214,344			188,810
Legal, professional and directors' fees	6,490			7,600			29,814			24,610
Occupancy	6,532			6,944			27,860			27,303
Data processing	5,062			4,504			19,225			18,660
Insurance	3,687			3,468			14,042			12,898
Deposit costs	2,953			1,862			9,731			4,983
Marketing	1,176			1,164			3,804			3,596
Intangible amortization	408			697			2,074			2,788
Card expense	855			689			3,413			2,936
Loan and repossessed asset expenses	978			477			4,617			2,999
Net (gain) loss on sales and valuations of repossessed and other assets	(34		)	(34		)	(80		)	(125		)
Acquisition / restructure expense	—			6,021			—			12,412
Other	9,587			5,551			32,097			29,079
Total non-interest expense	95,398			88,645			360,941			330,949
Income before income taxes	124,319			96,164			451,817			361,179
Income tax expense	34,973			26,364			126,325			101,381
Net income	$	89,346		$	69,800		$	325,492		$	259,798
Earnings per share:
Diluted shares	105,164			104,765			104,997			103,843
Diluted earnings per share	$	0.85		$	0.67		$	3.10		$	2.50

8

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
	Three Months Ended
	Dec 31, 2017			Sep 30, 2017		Jun 30, 2017			Mar 31, 2017			Dec 31, 2016
	(in thousands, except per share data)
Interest income:
Loans	$	200,204		$	191,096	$	183,657		$	172,553		$	168,881
Investment securities	26,312			23,584		20,629			18,114			16,725
Other	1,943			3,156		2,667			1,598			1,805
Total interest income	228,459			217,836		206,953			192,265			187,411
Interest expense:
Deposits	12,459			11,449		9,645			8,412			7,729
Qualifying debt	4,734			4,708		4,493			4,338			4,252
Borrowings	237			96		72			206			161
Total interest expense	17,430			16,253		14,210			12,956			12,142
Net interest income	211,029			201,583		192,743			179,309			175,269
Provision for credit losses	5,000			5,000		3,000			4,250			1,000
Net interest income after provision for credit losses	206,029			196,583		189,743			175,059			174,269
Non-interest income:
Service charges and fees	5,157			5,248		5,203			4,738			4,865
Income from equity investments	1,519			967		1,318			692			1,054
Card income	1,796			1,509		1,516			1,492			1,381
Income from bank owned life insurance	965			975		973			948			904
Foreign currency income	906			756		832			1,042			747
Lending related income and gains (losses) on sale of loans, net	1,466			97		227			422			488
Gains (losses) on sales of investment securities, net	1,436			319		(47		)	635			58
Other	443			585		579			630			1,043
Total non-interest income	13,688			10,456		10,601			10,599			10,540
Non-interest expenses:
Salaries and employee benefits	57,704			52,747		52,273			51,620			49,702
Legal, professional, and directors' fees	6,490			6,038		8,483			8,803			7,600
Occupancy	6,532			7,507		6,927			6,894			6,944
Data processing	5,062			4,524		4,375			5,264			4,504
Insurance	3,687			3,538		3,589			3,228			3,468
Deposit costs	2,953			2,904		2,133			1,741			1,862
Marketing	1,176			776		1,131			721			1,164
Intangible amortization	408			489		488			689			697
Card expense	855			966		861			731			689
Loan and repossessed asset expenses	978			1,263		1,098			1,278			477
Net (gain) loss on sales and valuations of repossessed and other assets	(34		)	266		231			(543		)	(34		)
Acquisition / restructure expense	—			—		—			—			6,021
Other	9,587			8,278		6,831			7,401			5,551
Total non-interest expense	95,398			89,296		88,420			87,827			88,645
Income before income taxes	124,319			117,743		111,924			97,831			96,164
Income tax expense	34,973			34,899		31,964			24,489			26,364
Net income	$	89,346		$	82,844	$	79,960		$	73,342		$	69,800
Earnings per share:
Diluted shares	105,164			104,942		105,045			104,836			104,765
Diluted earnings per share	$	0.85		$	0.79	$	0.76		$	0.70		$	0.67

9

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
	Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 2016
	(in millions, except per share data)
Assets:
Cash and due from banks	$	416.8		$	650.4		$	606.7		$	647.0		$	284.5
Securities and money market investments	3,820.4			3,773.6			3,283.0			2,869.1			2,767.8
Loans held for sale	—			16.3			16.7			17.8			18.9
Loans held for investment:
Commercial	6,841.4			6,735.9			6,318.5			6,039.1			5,855.8
Commercial real estate - non-owner occupied	3,904.0			3,628.4			3,649.1			3,607.8			3,544.0
Commercial real estate - owner occupied	2,241.6			2,047.5			2,021.2			2,043.4			2,013.3
Construction and land development	1,632.2			1,666.4			1,601.7			1,601.7			1,478.1
Residential real estate	425.9			376.7			334.8			309.9			259.4
Consumer	48.8			50.7			47.9			43.0			39.0
Gross loans and deferred fees, net	15,093.9			14,505.6			13,973.2			13,644.9			13,189.6
Allowance for credit losses	(140.0		)	(136.4		)	(131.8		)	(127.6		)	(124.7		)
Loans, net	14,953.9			14,369.2			13,841.4			13,517.3			13,064.9
Premises and equipment, net	118.7			120.1			120.5			120.0			119.8
Other assets acquired through foreclosure, net	28.5			29.0			31.0			45.2			47.8
Bank owned life insurance	167.8			166.8			166.4			165.5			164.5
Goodwill and other intangibles, net	300.7			301.2			301.6			302.1			302.9
Other assets	522.3			495.6			477.4			438.5			429.7
Total assets	$	20,329.1		$	19,922.2		$	18,844.7		$	18,122.5		$	17,200.8
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits	$	7,434.0		$	7,608.7		$	6,859.4		$	6,114.1		$	5,632.9
Interest bearing:
Demand	1,586.2			1,406.4			1,480.8			1,449.3			1,346.7
Savings and money market	6,330.9			6,300.2			6,104.0			6,253.8			6,120.9
Time certificates	1,621.4			1,589.5			1,586.9			1,538.8			1,449.3
Total deposits	16,972.5			16,904.8			16,031.1			15,356.0			14,549.8
Customer repurchase agreements	26.0			26.1			32.7			35.7			41.7
Total customer funds	16,998.5			16,930.9			16,063.8			15,391.7			14,591.5
Borrowings	390.0			—			—			—			80.0
Qualifying debt	376.9			372.9			375.4			366.9			367.9
Accrued interest payable and other liabilities	334.5			472.8			346.8			394.9			269.9
Total liabilities	18,099.9			17,776.6			16,786.0			16,153.5			15,309.3
Stockholders' Equity:
Common stock and additional paid-in capital	1,384.4			1,378.8			1,376.4			1,370.3			1,373.8
Retained earnings	847.9			758.6			675.8			595.8			522.4
Accumulated other comprehensive (loss) income	(3.1		)	8.2			6.5			2.9			(4.7		)
Total stockholders' equity	2,229.2			2,145.6			2,058.7			1,969.0			1,891.5
Total liabilities and stockholders' equity	$	20,329.1		$	19,922.2		$	18,844.7		$	18,122.5		$	17,200.8

10

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
	Three Months Ended
	Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 2016
	(in thousands)
Balance, beginning of period	$	136,421		$	131,811		$	127,649		$	124,704		$	122,884
Provision for credit losses	5,000			5,000			3,000			4,250			1,000
Recoveries of loans previously charged-off:
Commercial and industrial	406			619			1,759			328			1,144
Commercial real estate - non-owner occupied	58			1,168			360			355			691
Commercial real estate - owner occupied	119			613			46			178			45
Construction and land development	218			226			508			277			30
Residential real estate	120			108			1,299			251			287
Consumer	3			33			—			49			11
Total recoveries	924			2,767			3,972			1,438			2,208
Loans charged-off:
Commercial and industrial	2,019			2,921			651			2,595			1,267
Commercial real estate - non-owner occupied	275			175			1,808			—			1
Commercial real estate - owner occupied	—			—			11			—			1
Construction and land development	—			—			—			—			18
Residential real estate	—			—			332			115			60
Consumer	1			61			8			33			41
Total loans charged-off	2,295			3,157			2,810			2,743			1,388
Net loan charge-offs (recoveries)	1,371			390			(1,162		)	1,305			(820		)
Balance, end of period	$	140,050		$	136,421		$	131,811		$	127,649		$	124,704
Net charge-offs (recoveries) to average loans- annualized	0.04		%	0.01		%	(0.03		)%	0.04		%	(0.03		)%
Allowance for credit losses to gross loans	0.93		%	0.94		%	0.94		%	0.94		%	0.95		%
Allowance for credit losses to gross organic loans	1.03			1.06			1.08			1.08			1.11
Allowance for credit losses to nonaccrual loans	318.84			248.07			438.33			370.45			309.65
Nonaccrual loans	$	43,925		$	54,994		$	30,071		$	34,458		$	40,272
Nonaccrual loans to gross loans	0.29		%	0.38		%	0.22		%	0.25		%	0.31		%
Repossessed assets	$	28,540		$	28,992		$	30,988		$	45,200		$	47,815
Nonaccrual loans and repossessed assets to total assets	0.36		%	0.42		%	0.32		%	0.44		%	0.51		%
Loans past due 90 days, still accruing	$	43		$	44		$	4,021		$	3,659		$	1,067
Loans past due 90 days and still accruing to gross loans	0.00		%	0.00		%	0.03		%	0.03		%	0.01		%
Loans past due 30 to 89 days, still accruing	$	10,142		$	5,179		$	4,071		$	10,764		$	6,294
Loans past due 30 to 89 days, still accruing to gross loans	0.07		%	0.04		%	0.03		%	0.08		%	0.05		%
Special mention loans	$	155,032		$	199,965		$	141,036		$	175,080		$	148,144
Special mention loans to gross loans	1.03		%	1.38		%	1.01		%	1.28		%	1.12		%
Classified loans on accrual	$	127,681		$	122,264		$	165,715		$	133,483		$	106,644
Classified loans on accrual to gross loans	0.85		%	0.84		%	1.19		%	0.98		%	0.81		%
Classified assets	$	222,004		$	221,803		$	249,491		$	236,786		$	211,782
Classified assets to total assets	1.09		%	1.11		%	1.32		%	1.31		%	1.23		%

11

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Three Months Ended
	December 31, 2017							September 30, 2017
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	($ in millions)			($ in thousands)				($ in millions)			($ in thousands)
Interest earning assets
Loans:
Commercial	$	6,597.6		$	86,336	5.70	%	$	6,345.0		$	80,831	5.59	%
CRE - non-owner occupied	3,734.8			55,757		5.97		3,595.3			54,250		6.04
CRE - owner occupied	2,084.0			26,081		5.01		2,032.7			25,238		4.97
Construction and land development	1,661.6			26,463		6.37		1,633.4			25,897		6.34
Residential real estate	409.9			4,941		4.82		351.5			4,151		4.72
Consumer	48.6			626		5.15		52.2			729		5.59
Total loans (1), (2), (3)	14,536.5			200,204		5.72		14,010.1			191,096		5.68
Securities:
Securities - taxable	2,975.0			19,350		2.60		2,778.4			17,399		2.50
Securities - tax-exempt	791.5			6,962		5.21		657.1			6,185		5.61
Total securities (1)	3,766.5			26,312		3.15		3,435.5			23,584		3.10
Cash and other	489.0			1,943		1.59		845.8			3,156		1.49
Total interest earning assets	18,792.0			228,459		5.10		18,291.4			217,836		5.00
Non-interest earning assets
Cash and due from banks	135.0							132.3
Allowance for credit losses	(138.4		)					(133.6		)
Bank owned life insurance	167.1							166.4
Other assets	956.3							930.7
Total assets	$	19,912.0						$	19,387.2
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,464.5		$	1,116	0.30	%	$	1,476.5		$	1,066	0.29	%
Savings and money market	6,321.4			7,810		0.49		6,282.4			7,135		0.45
Time certificates of deposit	1,595.6			3,533		0.89		1,585.7			3,248		0.82
Total interest-bearing deposits	9,381.5			12,459		0.53		9,344.6			11,449		0.49
Short-term borrowings	78.1			237		1.21		31.7			96		1.21
Qualifying debt	372.8			4,734		5.08		375.3			4,708		5.02
Total interest-bearing liabilities	9,832.4			17,430		0.71		9,751.6			16,253		0.67
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	7,502.2							7,174.5
Other liabilities	375.2							336.9
Stockholders’ equity	2,202.2							2,124.2
Total liabilities and stockholders' equity	$	19,912.0						$	19,387.2
Net interest income and margin (4)				$	211,029	4.73	%				$	201,583	4.65	%
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $11.0 million and $10.8 million for the three months ended December 31, 2017 and September 30, 2017, respectively.
(2) Included in the yield computation are net loan fees of $11.0 million and accretion on acquired loans of $7.1 million for the three months ended December 31, 2017, compared to $9.4 million and $7.5 million for the three months ended September 30, 2017, respectively.
(3) Includes non-accrual loans.
(4) Net interest margin is computed by dividing net interest income by total average earning assets.

12

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Three Months Ended December 31,
	2017							2016
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	($ in millions)			($ in thousands)				($ in millions)			($ in thousands)
Interest earning assets
Loans:
Commercial	$	6,597.6		$	86,336	5.70	%	$	5,676.6		$	66,931	5.18	%
CRE - non-owner occupied	3,734.8			55,757		5.97		3,581.1			51,565		5.76
CRE - owner occupied	2,084.0			26,081		5.01		1,993.3			24,897		5.00
Construction and land development	1,661.6			26,463		6.37		1,431.9			22,094		6.17
Residential real estate	409.9			4,941		4.82		264.3			2,926		4.43
Consumer	48.6			626		5.15		38.7			468		4.84
Total loans (1), (2), (3)	14,536.5			200,204		5.72		12,985.9			168,881		5.41
Securities:
Securities - taxable	2,975.0			19,350		2.60		2,142.6			11,482		2.14
Securities - tax-exempt	791.5			6,962		5.21		591.2			5,243		5.25
Total securities (1)	3,766.5			26,312		3.15		2,733.8			16,725		2.81
Cash and other	489.0			1,943		1.59		430.0			1,805		1.68
Total interest earning assets	18,792.0			228,459		5.10		16,149.7			187,411		4.87
Non-interest earning assets
Cash and due from banks	135.0							146.0
Allowance for credit losses	(138.4		)					(122.7		)
Bank owned life insurance	167.1							163.9
Other assets	956.3							844.0
Total assets	$	19,912.0						$	17,180.9
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,464.5		$	1,116	0.30	%	$	1,295.6		$	660	0.20	%
Savings and money market	6,321.4			7,810		0.49		6,004.4			5,043		0.34
Time certificates of deposit	1,595.6			3,533		0.89		1,507.0			2,026		0.54
Total interest-bearing deposits	9,381.5			12,459		0.53		8,807.0			7,729		0.35
Short-term borrowings	78.1			237		1.21		73.5			161		0.88
Qualifying debt	372.8			4,734		5.08		365.4			4,252		4.65
Total interest-bearing liabilities	9,832.4			17,430		0.71		9,245.9			12,142		0.53
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	7,502.2							5,752.0
Other liabilities	375.2							292.5
Stockholders’ equity	2,202.2							1,890.5
Total liabilities and stockholders' equity	$	19,912.0						$	17,180.9
Net interest income and margin (4)				$	211,029	4.73	%				$	175,269	4.57	%
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $11.0 million and $9.2 million for the three months ended December 31, 2017 and 2016, respectively.
(2) Included in the yield computation are net loan fees of $11.0 million and accretion on acquired loans of $7.1 million for the three months ended December 31, 2017, compared to $8.3 million and $7.0 million for the three months ended December 31, 2016, respectively.
(3) Includes non-accrual loans.
(4) Net interest margin is computed by dividing net interest income by total average earning assets.

13

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Year ended December 31,
	2017							2016
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	($ in millions)			($ in thousands)				($ in millions)			($ in thousands)
Interest earning assets
Loans:
Commercial	$	6,199.7		$	311,869	5.51	%	$	5,444.4		$	253,262	5.14	%
CRE - non-owner occupied	3,618.4			215,929		5.97		3,194.0			181,678		5.69
CRE - owner occupied	2,033.8			101,976		5.01		2,016.6			103,418		5.13
Construction and land development	1,603.3			99,427		6.20		1,307.9			83,206		6.36
Residential real estate	339.3			16,066		4.74		289.2			13,374		4.62
Consumer	46.0			2,243		4.87		35.8			1,658		4.63
Total loans (1), (2), (3)	13,840.5			747,510		5.62		12,287.9			636,596		5.40
Securities:
Securities - taxable	2,579.3			64,035		2.48		1,789.8			39,772		2.22
Securities - tax-exempt	670.7			24,604		5.45		507.1			18,768		5.34
Total securities (1)	3,250.0			88,639		3.10		2,296.9			58,540		2.91
Cash and other	680.5			9,364		1.38		532.5			5,370		1.01
Total interest earning assets	17,771.0			845,513		4.99		15,117.3			700,506		4.86
Non-interest earning assets
Cash and due from banks	137.5							141.8
Allowance for credit losses	(132.0		)					(122.0		)
Bank owned life insurance	166.1							163.6
Other assets	927.0							833.6
Total assets	$	18,869.6						$	16,134.3
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,467.2		$	3,974	0.27	%	$	1,217.3		$	2,231	0.18	%
Savings and money market	6,208.1			26,087		0.42		5,827.5			19,368		0.33
Time certificates of deposit	1,560.9			11,904		0.76		1,615.5			8,123		0.50
Total interest-bearing deposits	9,236.2			41,965		0.45		8,660.3			29,722		0.34
Short-term borrowings	63.6			611		0.96		80.7			573		0.71
Qualifying debt	371.3			18,273		4.92		290.8			12,998		4.47
Total interest-bearing liabilities	9,671.1			60,849		0.63		9,031.8			43,293		0.48
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	6,788.8							5,062.3
Other liabilities	331.0							269.3
Stockholders’ equity	2,078.7							1,770.9
Total liabilities and stockholders' equity	$	18,869.6						$	16,134.3
Net interest income and margin (4)				$	784,664	4.65	%				$	657,213	4.58	%
(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The taxable-equivalent adjustment was $42.0 million and $34.9 million for the year ended December 31, 2017 and 2016, respectively.
(2) Included in the yield computation are net loan fees of $37.0 million and accretion on acquired loans of $28.2 million for the year ended December 31, 2017, compared to $28.5 million and $29.2 million for the year ended December 31, 2016, respectively.
(3) Includes non-accrual loans.
(4) Net interest margin is computed by dividing net interest income by total average earning assets.

14

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2017	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,237.2		$	2.2		$	8.2		$	2.1		$	1.7
Loans, net of deferred loan fees and costs	15,093.9			3,323.7			1,844.8			1,934.7			1,275.5
Less: allowance for credit losses	(140.0		)	(31.5		)	(18.1		)	(19.5		)	(13.2		)
Total loans	14,953.9			3,292.2			1,826.7			1,915.2			1,262.3
Other assets acquired through foreclosure, net	28.5			2.3			13.3			—			0.2
Goodwill and other intangible assets, net	300.7			—			23.2			—			156.5
Other assets	808.8			46.3			58.8			14.3			15.1
Total assets	$	20,329.1		$	3,343.0		$	1,930.2		$	1,931.6		$	1,435.8
Liabilities:
Deposits	$	16,972.5		$	4,841.2		$	3,951.5		$	2,461.1		$	1,681.7
Borrowings and qualifying debt	766.9			—			—			—			—
Other liabilities	360.5			11.6			20.9			3.2			11.9
Total liabilities	18,099.9			4,852.8			3,972.4			2,464.3			1,693.6
Allocated equity:	2,229.2			396.6			263.7			221.7			303.4
Total liabilities and stockholders' equity	$	20,329.1		$	5,249.4		$	4,236.1		$	2,686.0		$	1,997.0
Excess funds provided (used)	—			1,906.4			2,305.9			754.4			561.2
No. of offices	47			10			16			9			3
No. of full-time equivalent employees	1,725			175			223			178			166
Income Statement:
Three Months Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	211,029		$	52,765		$	36,927		$	28,079		$	21,749
Provision for (recovery) credit losses	5,000			1,044			654			120			337
Net interest income (expense) after provision for credit losses	206,029			51,721			36,273			27,959			21,412
Non-interest income	13,688			1,214			2,335			836			3,725
Non-interest expense	(95,398		)	(20,731		)	(15,333		)	(13,745		)	(12,190		)
Income (loss) before income taxes	124,319			32,204			23,275			15,050			12,947
Income tax expense (benefit)	34,973			12,486			8,067			6,335			5,355
Net income	$	89,346		$	19,718		$	15,208		$	8,715		$	7,592
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	784,664		$	198,622		$	145,001		$	109,177		$	85,360
Provision for (recovery of) credit losses	17,250			1,153			(4,724		)	100			4,575
Net interest income (expense) after provision for credit losses	767,414			197,469			149,725			109,077			80,785
Non-interest income	45,344			4,757			9,135			3,396			10,000
Non-interest expense	(360,941		)	(76,117		)	(61,066		)	(51,808		)	(48,387		)
Income (loss) before income taxes	451,817			126,109			97,794			60,665			42,398
Income tax expense (benefit)	126,325			49,317			34,133			25,529			17,591
Net income (loss)	$	325,492		$	76,792		$	63,661		$	35,136		$	24,807

15

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
At December 31, 2017	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,223.0
Loans, net of deferred loan fees and costs	162.1			1,580.4			1,097.9			1,327.7			2,543.0			4.1
Less: allowance for credit losses	(1.6		)	(15.6		)	(11.4		)	(4.0		)	(25.0		)	(0.1		)
Total loans	160.5			1,564.8			1,086.5			1,323.7			2,518.0			4.0
Other assets acquired through foreclosure, net	—			—			—			—			—			12.7
Goodwill and other intangible assets, net	—			—			120.9			0.1			—			—
Other assets	0.9			17.9			6.0			5.9			15.5			628.1
Total assets	$	161.4		$	1,582.7		$	1,213.4		$	1,329.7		$	2,533.5		$	4,867.8
Liabilities:
Deposits	$	2,230.4		$	—		$	1,737.6		$	—		$	—		$	69.0
Borrowings and qualifying debt	—			—			—			—			—			766.9
Other liabilities	1.2			42.4			0.8			0.4			5.5			262.6
Total liabilities	2,231.6			42.4			1,738.4			0.4			5.5			1,098.5
Allocated equity:	59.4			126.5			244.1			108.3			206.0			299.5
Total liabilities and stockholders' equity	$	2,291.0		$	168.9		$	1,982.5		$	108.7		$	211.5		$	1,398.0
Excess funds provided (used)	2,129.6			(1,413.8		)	769.1			(1,221.0		)	(2,322.0		)	(3,469.8		)
No. of offices	1			1			9			1			4			(7		)
No. of full-time equivalent employees	66			10			62			12			38			795
Income Statement:
Three Months Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	13,827		$	7,243		$	22,862		$	14,624		$	19,528		$	(6,575	)
Provision for (recovery) credit losses	9			(202		)	2,005			1,569			(536		)	—
Net interest income (expense) after provision for credit losses	13,818			7,445			20,857			13,055			20,064			(6,575		)
Non-interest income	140			—			2,688			52			141			2,557
Non-interest expense	(6,873		)	(2,415		)	(9,996		)	(2,217		)	(5,978		)	(5,920		)
Income (loss) before income taxes	7,085			5,030			13,549			10,890			14,227			(9,938		)
Income tax expense (benefit)	2,571			1,893			5,081			4,084			5,310			(16,209		)
Net income	$	4,514		$	3,137		$	8,468		$	6,806		$	8,917		$	6,271
Year Ended December 31, 2017:	(in thousands)
Net interest income (expense)	$	54,102		$	28,485		$	82,473		$	56,961		$	65,908		$	(41,425	)
Provision for (recovery of) credit losses	341			593			2,821			4,493			9,729			(1,831		)
Net interest income (expense) after provision for credit losses	53,761			27,892			79,652			52,468			56,179			(39,594		)
Non-interest income	558			—			8,422			52			1,772			7,252
Non-interest expense	(28,289		)	(8,522		)	(36,726		)	(10,166		)	(20,551		)	(19,309		)
Income (loss) before income taxes	26,030			19,370			51,348			42,354			37,400			(51,651		)
Income tax expense (benefit)	9,676			6,317			19,255			15,883			14,000			(65,376		)
Net income (loss)	$	16,354		$	13,053		$	32,093		$	26,471		$	23,400		$	13,725

16

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At December 31, 2016	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	3,052.3		$	1.9		$	10.1		$	2.1		$	1.9
Loans, net of deferred loan fees and costs	13,208.5			2,955.9			1,725.5			1,766.8			1,095.4
Less: allowance for credit losses	(124.7		)	(30.1		)	(18.5		)	(19.4		)	(8.8		)
Total loans	13,083.8			2,925.8			1,707.0			1,747.4			1,086.6
Other assets acquired through foreclosure, net	47.8			6.2			18.0			—			0.3
Goodwill and other intangible assets, net	302.9			—			23.7			—			157.5
Other assets	714.0			42.9			58.8			14.5			14.3
Total assets	$	17,200.8		$	2,976.8		$	1,817.6		$	1,764.0		$	1,260.6
Liabilities:
Deposits	$	14,549.8		$	3,843.4		$	3,731.5		$	2,382.6		$	1,543.6
Borrowings and qualifying debt	447.9			—			—			—			—
Other liabilities	311.6			12.8			28.3			12.9			12.4
Total liabilities	15,309.3			3,856.2			3,759.8			2,395.5			1,556.0
Allocated equity:	1,891.5			346.6			250.7			201.6			283.7
Total liabilities and stockholders' equity	$	17,200.8		$	4,202.8		$	4,010.5		$	2,597.1		$	1,839.7
Excess funds provided (used)	—			1,226.0			2,192.9			833.1			579.1
No. of offices	48			10			18			9			3
No. of full-time equivalent employees	1,514			169			228			57			275
Income Statements:
Three Months Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	175,269		$	45,322		$	35,491		$	26,823		$	20,890
Provision for (recovery of) credit losses	1,000			(963		)	189			(724		)	475
Net interest income (expense) after provision for credit losses	174,269			46,285			35,302			27,547			20,415
Non-interest income	10,540			1,139			2,203			643			2,564
Non-interest expense	(88,645		)	(18,316		)	(16,199		)	(12,242		)	(12,919		)
Income (loss) before income taxes	96,164			29,108			21,306			15,948			10,060
Income tax expense (benefit)	26,364			11,419			7,457			6,707			4,230
Net income (loss)	$	69,800		$	17,689		$	13,849		$	9,241		$	5,830
Year Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	657,213		$	170,513		$	137,507		$	103,542		$	88,162
Provision for (recovery of) credit losses	8,000			9,912			(3,337		)	(580		)	2,587
Net interest income (expense) after provision for credit losses	649,213			160,601			140,844			104,122			85,575
Non-interest income	42,915			6,887			8,622			2,550			10,422
Non-interest expense	(330,949		)	(63,406		)	(60,570		)	(45,643		)	(53,073		)
Income (loss) before income taxes	361,179			104,082			88,896			61,029			42,924
Income tax expense (benefit)	101,381			40,832			31,113			25,663			18,049
Net income (loss)	$	259,798		$	63,250		$	57,783		$	35,366		$	24,875

17

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:	National Business Lines
	HOA Services			Public & Nonprofit Finance			Technology & Innovation			Hotel Franchise Finance			Other NBLs			Corporate & Other
At December 31, 2016	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	3,036.3
Loans, net of deferred loan fees and costs	116.8			1,454.3			1,011.4			1,292.1			1,776.9			13.4
Less: allowance for credit losses	(1.3		)	(15.6		)	(10.6		)	(0.8		)	(19.0		)	(0.6		)
Total loans	115.5			1,438.7			1,000.8			1,291.3			1,757.9			12.8
Other assets acquired through foreclosure, net	—			—			—			—			—			23.3
Goodwill and other intangible assets, net	—			—			121.5			0.2			—			—
Other assets	0.3			15.6			7.2			5.3			11.1			544.0
Total assets	$	115.8		$	1,454.3		$	1,129.5		$	1,296.8		$	1,769.0		$	3,616.4
Liabilities:
Deposits	$	1,890.3		$	—		$	1,038.2		$	—		$	—		$	120.2
Borrowings and qualifying debt	—			—			—			—			—			447.9
Other liabilities	0.7			50.5			2.0			1.4			17.5			173.1
Total liabilities	1,891.0			50.5			1,040.2			1.4			17.5			741.2
Allocated equity:	65.6			117.1			224.1			107.1			145.5			149.5
Total liabilities and stockholders' equity	$	1,956.6		$	167.6		$	1,264.3		$	108.5		$	163.0		$	890.7
Excess funds provided (used)	1,840.8			(1,286.7		)	134.8			1,188.3			(1,606.0		)	(2,725.7		)
No. of offices	1			1			8			1			4			(7		)
No. of full-time equivalent employees	55			7			59			21			32			611
Income Statement:
Three Months Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	11,686		$	5,641		$	18,060		$	13,145		$	14,673		$	(16,462	)
Provision for (recovery of) credit losses	96			326			710			—			891			—
Net interest income (expense) after provision for credit losses	11,590			5,315			17,350			13,145			13,782			(16,462		)
Non-interest income	119			37			2,105			—			717			1,013
Non-interest expense	(6,596		)	(2,010		)	(8,094		)	(2,780		)	(4,197		)	(5,292		)
Income (loss) before income taxes	5,113			3,342			11,361			10,365			10,302			(20,741		)
Income tax expense (benefit)	1,918			1,253			4,261			3,887			3,864			(18,632		)
Net income (loss)	$	3,195		$	2,089		$	7,100		$	6,478		$	6,438		$	(2,109	)
Year Ended December 31, 2016:	(in thousands)
Net interest income (expense)	$	41,539		$	20,900		$	69,143		$	38,583		$	49,893		$	(62,569	)
Provision for (recovery of) credit losses	256			(183		)	(1,626		)	—			4,200			(3,229		)
Net interest income (expense) after provision for credit losses	41,283			21,083			70,769			38,583			45,693			(59,340		)
Non-interest income	460			59			6,728			—			2,315			4,872
Non-interest expense	(24,019		)	(7,936		)	(31,271		)	(8,544		)	(15,204		)	(21,283		)
Income (loss) before income taxes	17,724			13,206			46,226			30,039			32,804			(75,751		)
Income tax expense (benefit)	6,647			4,952			17,335			11,265			12,302			(66,777		)
Net income (loss)	$	11,077		$	8,254		$	28,891		$	18,774		$	20,502		$	(8,974	)

18

Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Operating Pre-Provision Net Revenue by Quarter:
	Three Months Ended
	Dec 31, 2017			Sep 30, 2017		Jun 30, 2017			Mar 31, 2017			Dec 31, 2016
	(in thousands)
Total non-interest income	$	13,688		$	10,456	$	10,601		$	10,599		$	10,540
Less:
Gains (losses) on sales of investment securities, net	1,436			319		(47		)	635			58
Unrealized gains (losses) on assets and liabilities measured at fair value, net	—			—		—			(1		)	37
Total operating non-interest income	12,252			10,137		10,648			9,965			10,445
Plus: net interest income	211,029			201,583		192,743			179,309			175,269
Net operating revenue (1)	$	223,281		$	211,720	$	203,391		$	189,274		$	185,714
Total non-interest expense	$	95,398		$	89,296	$	88,420		$	87,827		$	88,645
Less:
Net (gain) loss on sales and valuations of repossessed and other assets	(34		)	266		231			(543		)	(34		)
Acquisition / restructure expense	—			—		—			—			6,021
Total operating non-interest expense (1)	$	95,432		$	89,030	$	88,189		$	88,370		$	82,658
Operating pre-provision net revenue (2)	$	127,849		$	122,690	$	115,202		$	100,904		$	103,056
Plus:
Non-operating revenue adjustments	1,436			319		(47		)	634			95
Less:
Provision for credit losses	5,000			5,000		3,000			4,250			1,000
Non-operating expense adjustments	(34		)	266		231			(543		)	5,987
Income tax expense	34,973			34,899		31,964			24,489			26,364
Net income	$	89,346		$	82,844	$	79,960		$	73,342		$	69,800

^{(1), (2)}See Non-GAAP Financial Measures footnotes on page 23.

19

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Operating Pre-Provision Net Revenue by Year:
	Year Ended December 31,
	2017			2016
Total non-interest income	$	45,344		$	42,915
Less:
Gains (losses) on sales of investment securities, net	2,343			1,059
Unrealized gains (losses) on assets and liabilities measured at fair value, net	(1		)	8
Total operating non-interest income	43,002			41,848
Plus: net interest income	784,664			657,213
Net operating revenue (1)	$	827,666		$	699,061
Total non-interest expense	$	360,941		$	330,949
Less:
Net (gain) loss on sales and valuations of repossessed and other assets	(80		)	(125		)
Acquisition / restructure expense	—			12,412
Total operating non-interest expense (1)	$	361,021		$	318,662
Operating pre-provision net revenue (2)	$	466,645		$	380,399
Plus:
Non-operating revenue adjustments	2,342			1,067
Less:
Provision for credit losses	17,250			8,000
Non-operating expense adjustments	(80		)	12,287
Income tax expense	126,325			101,381
Net income	$	325,492		$	259,798

Tangible Common Equity:
	Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 2016
	(dollars and shares in thousands)
Total stockholders' equity	$	2,229,160		$	2,145,627		$	2,058,674		$	1,968,992		$	1,891,529
Less: goodwill and intangible assets	300,748			301,157			301,645			302,133			302,894
Total tangible common equity	1,928,412			1,844,470			1,757,029			1,666,859			1,588,635
Plus: deferred tax - attributed to intangible assets	2,698			4,341			4,550			4,759			4,949
Total tangible common equity, net of tax	$	1,931,110		$	1,848,811		$	1,761,579		$	1,671,618		$	1,593,584
Total assets	$	20,329,085		$	19,922,221		$	18,844,745		$	18,122,506		$	17,200,842
Less: goodwill and intangible assets, net	300,748			301,157			301,645			302,133			302,894
Tangible assets	20,028,337			19,621,064			18,543,100			17,820,373			16,897,948
Plus: deferred tax - attributed to intangible assets	2,698			4,341			4,550			4,759			4,949
Total tangible assets, net of tax	$	20,031,035		$	19,625,405		$	18,547,650		$	17,825,132		$	16,902,897
Tangible common equity ratio (3)	9.6		%	9.4		%	9.5		%	9.4		%	9.4		%
Common shares outstanding	105,487			105,493			105,429			105,428			105,071
Tangible book value per share, net of tax (4)	$	18.31		$	17.53		$	16.71		$	15.86		$	15.17
(1), (2), (3), (4) See Non-GAAP Financial Measures footnotes on page 23.

20

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Operating Efficiency Ratio by Quarter:
	Three Months Ended
	Dec 31, 2017			Sep 30, 2017			Jun 30, 2017			Mar 31, 2017			Dec 31, 2016
	(in thousands)
Total operating non-interest expense	$	95,432		$	89,030		$	88,189		$	88,370		$	82,658
Divided by:
Total net interest income	211,029			201,583			192,743			179,309			175,269
Plus:
Tax equivalent interest adjustment	11,023			10,837			10,453			9,676			9,165
Operating non-interest income	12,252			10,137			10,648			9,965			10,445
	$	234,304		$	222,557		$	213,844		$	198,950		$	194,879
Operating efficiency ratio - tax equivalent basis (5)	40.7		%	40.0		%	41.2		%	44.4		%	42.4		%

Operating Efficiency Ratio:
	Year Ended December 31,
	2017			2016
	(in thousands)
Total operating non-interest expense	$	361,021		$	318,662
Divided by:
Total net interest income	784,664			657,213
Plus:
Tax equivalent interest adjustment	41,989			34,902
Operating non-interest income	43,002			41,848
	$	869,655		$	733,963
Operating efficiency ratio - tax equivalent basis (5)	41.5		%	43.4		%

⁽⁵⁾See Non-GAAP Financial Measures footnotes on page 23.

21

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Regulatory Capital:

	December 31,
	2017			2016
	(in thousands)
Common Equity Tier 1:
Common equity	$	2,229,160		$	1,891,529
Less:
Non-qualifying goodwill and intangibles	296,420			294,754
Disallowed deferred tax asset	638			1,400
AOCI related adjustments	(9,496		)	(13,460		)
Unrealized gain on changes in fair value liabilities	7,786			8,118
Common equity Tier 1 (regulatory) (6) (9)	$	1,933,812		$	1,600,717
Divided by: estimated risk-weighted assets (regulatory (7) (9)	$	18,570,922		$	15,980,092
Common equity Tier 1 ratio (7) (9)	10.4		%	10.0		%
Common equity Tier 1 (regulatory) (6)(9)	1,933,812			1,600,717
Plus:
Trust preferred securities	81,500			81,500
Less:
Disallowed deferred tax asset	—			934
Unrealized gain on changes in fair value of liabilities	2,106			5,412
Tier 1 capital (7) (9)	$	2,013,206		$	1,675,871
Divided by: Tangible average assets	$	19,624,519		$	16,868,674
Tier 1 leverage ratio	10.3		%	9.9		%
Total Capital:
Tier 1 capital (regulatory) (6) (9)	$	2,013,206		$	1,675,871
Plus:
Subordinated debt	300,745			299,927
Qualifying allowance for credit losses	140,050			124,704
Other	6,174			6,978
Less: Tier 2 qualifying capital deductions	—			—
Tier 2 capital	$	446,969		$	431,609
Total capital	$	2,460,175		$	2,107,480
Total capital ratio	13.2		%	13.2		%
Classified assets to Tier 1 capital plus allowance for credit losses:
Classified assets	$	222,004		$	211,782
Divided by:
Tier 1 capital (7) (9)	2,013,206			1,675,871
Plus: Allowance for credit losses	140,050			124,704
Total Tier 1 capital plus allowance for credit losses	$	2,153,256		$	1,800,575
Classified assets to Tier 1 capital plus allowance (8) (9)	10.3		%	11.8		%
(6), (7), (8), (9) See Non-GAAP Financial Measures footnotes on page 23.

22

Non-GAAP Financial Measures Footnotes
(1)	We believe these non-GAAP measurements provide a useful indication of the cash generating capacity of the Company.
(2)	We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(3)	We believe this non-GAAP ratio provides an important metric with which to analyze and evaluate financial condition and capital strength.
(4)	We believe this non-GAAP measurement improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.
(5)	We believe this non-GAAP ratio provides a useful metric to measure the operating efficiency of the Company.
(6)	Under the current guidelines of the Federal Reserve and the Federal Deposit Insurance Corporation, common equity Tier 1 capital consists of common stock, retained earnings, and minority interests in certain subsidiaries, less most other intangible assets.
(7)	Common equity Tier 1 is often expressed as a percentage of risk-weighted assets. Under the risk-based capital framework, a bank's balance sheet assets and credit equivalent amounts of off-balance sheet items are assigned to one of the risk categories defined under new capital guidelines. The aggregated dollar amount in each category is then multiplied by the risk weighting assigned to that category. The resulting weighted values from each category are added together and this sum is the risk-weighted assets total that, as adjusted, comprises the denominator (risk-weighted assets) of the common equity Tier 1 ratio. Common equity Tier 1 is divided by the risk-weighted assets to determine the common equity Tier 1 ratio. We believe this non-GAAP ratio provides an important metric with which to analyze and evaluate financial condition and capital strength.
(8)	We believe this non-GAAP ratio provides an important regulatory metric to analyze asset quality.
(9)	Current quarter is preliminary until Call Report is filed.

CONTACT:

Western Alliance Bancorporation

Dale Gibbons, 602-952-5476

23

EX-99.2

Earnings Call 4th Quarter 2017 January 25, 2018

2 Financial Highlights ▪ Net income of $89.3 million ($0.85 per share), compared to $82.8 million ($0.79 per share) for Q3 2017, and $69.8 million ($0.67 per share) for Q4 2016 (inclusive of $0.03 in acquisition / restructure expense) ▪ Net interest margin of 4.73%, compared to 4.65% in Q3 2017, and 4.57% in Q4 2016 ▪ Operating efficiency ratio of 40.7%, compared to 40.0% in Q3 2017, and 42.4% in Q4 2016 ▪ Income tax expense includes the effect of the Tax Cut and Jobs Act and related actions, which in aggregate resulted in essentially no change in income performance ▪ Total loans of $15.09 billion, up $572 million from prior quarter and total deposits of $16.97 billion, up $68 million from prior quarter ▪ Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.36%, compared to 0.42% at September 30, 2017, and 0.51% at December 31, 2016 ▪ Net loan charge-offs (recoveries) to average loans outstanding of 0.04%, compared to 0.01% in Q3 2017, and (0.03)% in Q4 2016 ▪ Tangible common equity ratio of 9.6% and tangible book value per share, net of tax, of $18.31, compared to 9.4% and $17.53, respectively, at September 30, 2017 ▪ Net income of $325.5 million and earnings per share of $3.10, compared to $259.8 million and $2.50 per share for 2016 ▪ Income tax expense increased $24.9 million due to an increase in pre-tax income, while the effective tax rate was stable at 28% ▪ Return on average assets and return on average tangible common equity ratio of 1.72% and 18.32%, compared to 1.61% and 17.71% in 2016 ▪ Net interest margin of 4.65%, compared to 4.58% in 2016 ▪ Total loan and deposit increase of $1.89 billion and $2.42 billion, respectively, from December 31, 2016 ▪ Net loan charge-offs to average loans outstanding of 0.01%, compared to 0.02% in 2016 and nonperforming assets to total assets of 0.36%, compared to and 0.51% in 2016 ▪ Tangible common equity ratio of 9.6% and tangible book value per share, net of tax, of $18.31, compared to 9.4% and $15.17, respectively, at December 31, 2016 Q4 2017 HIGHLIGHTS FULL YEAR 2017 HIGHLIGHTS 2

3 Quarterly Consolidated Financial Results $ in millions, except EPS Q4 2017 Compared to Q3 2017 ▪ Net Interest Income increased $9.4 million as a result of loan growth and an increase in investment securities ▪ Operating Non-Interest Expense increased $6.4 million primarily from increased incentive compensation costs ▪ Income tax expense held steady as a result of the effects from the Tax Cut and Jobs Act Q4-17 Q3-17 Q4-16 Net Interest Income $ 211.0 $ 201.6 $ 175.3 Operating Non-Interest Income 12.3 10.1 10.5 Net Operating Revenue $ 223.3 $ 211.7 $ 185.8 Operating Non-Interest Expense (95.4) (89.0) (82.7) Operating Pre-Provision Net Revenue $ 127.9 $ 122.7 $ 103.1 Provision for Credit Losses (5.0) (5.0) (1.0) Gains on OREO and Other Assets — (0.3) — Acquisition / Restructure Expense — — (6.0) Other 1.4 0.3 0.1 Pre-tax Income $ 124.3 $ 117.7 $ 96.2 Income Tax (35.0) (34.9) (26.4) Net Income $ 89.3 $ 82.8 $ 69.8 Average Diluted Shares Outstanding 105.2 104.9 104.8 Earnings Per Share $ 0.85 $ 0.79 $ 0.67 3

4 Annual Consolidated Financial Results $ in millions, except EPS 2017 Highlights ▪ Net Interest Income increased $127.5 million, or 19.4%, commensurate with growth in loans of 14.3% and yield expansion as well as growth in deposits of 16.7% ▪ Growth in Net Operating Revenue of 18.4% outpaced growth in Operating Non-Interest Expense of 13.3% ▪ Provision for Credit Losses increased $9.3 million as a result of loan growth as well as minimal credit losses ▪ Income Tax increased $24.9 million due to an increase in pre-tax income, while the effective tax rate was stable at 28% 2017 2016 Net Interest Income $ 784.7 $ 657.2 Operating Non-Interest Income 43.0 41.8 Net Operating Revenue $ 827.7 $ 699.1 Operating Non-Interest Expense (361.0) (318.7) Operating Pre-Provision Net Revenue $ 466.6 $ 380.4 Provision for Credit Losses (17.3) (8.0) Gains on OREO and Other Assets 0.1 0.1 Acquisition / Restructure Expense — (12.4) Other 2.3 1.1 Pre-tax Income $ 451.8 $ 361.2 Income Tax (126.3) (101.4) Net Income $ 325.5 $ 259.8 Average Diluted Shares Outstanding 105.0 103.8 Earnings Per Share $ 3.10 $ 2.50 4

5 Net Interest Drivers $ in billions, unless otherwise indicated Interest Bearing Deposits and Cost of Funds Loans and Yield Deposits, Borrowings, and Cost of Liability Funding Q4 2017 Highlights ▪ Loan yield increased across most loan categories ▪ Cost of interest-bearing deposits increased four basis points due to higher rates on money market accounts ▪ Cost of funds for total deposits and borrowings increased two basis points to 0.40% Total Investments and Yield Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 2.81% 3.08% 3.05% 3.10% 3.15% $2.8 $2.9 $3.3 $3.8 $3.8 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 5.41% 5.47% 5.60% 5.68% 5.72% $13.2 $13.7 $14.0 $14.5 $15.1 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 0.35% 0.37% 0.42% 0.49% 0.53% $8.9 $9.2 $9.2 $9.3 $9.5 5 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $8.9 $9.2 $9.2 $9.3 $9.5 $5.6 $6.1 $6.9 $7.6 $7.4 0.32% 0.34% 0.35% 0.38% 0.40% Investments Loans Interest Bearing Deposits Non-Interest Bearing Deposits Total Borrowings $0.4 $0.4 $0.4 $0.4 $0.8

6 Net Interest Income and Accretion $ in millions Q4 2017 Compared to Q3 2017 ▪ NIM increased 8 basis points to 4.73% quarter-over- quarter due to higher yields on loans resulting from short-term interest rate increases Net Interest Income, NIM, and Average Interest Earnings Assets Acquired Loan Accretion Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 4.57% 4.63% 4.61% 4.65% 4.73% $175.3 $179.3 $192.7 $201.6 $211.0 Non-PCI Accretion PCI Accretion Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $4.9 $4.1 $4.4 $4.3 $4.4 $2.1 $2.3 $2.7 $3.2 $2.7 Scheduled Acquisition Loan Accretion * Non-PCI Rate and Credit Accretion PCI Rate Accretion Q1-18 Q2-18 Q3-18 Q4-18 $2.1 $2.0 $2.0 $2.0 $0.4 $0.4 $0.4 $0.3 * Amounts do not include early loan payoffsEnding rate and credit marks on all acquired loans at 12/31/2017 is $41 million PCI Accretion Non-PCI Accretion PCI Rate Accretion Non-PCI Rate and Credit Accretion 6 $16,150 $16,318 $17,648 $18,291 $18,792 NIM Avg Interest Earning Assets Net Interest Income

7 Breakdown of Operating Expenses Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $49.7 $51.6 $52.3 $52.7 $57.7 $10.4 $10.1 $10.5 $11.0 $10.2$12.1 $14.1 $12.9 $10.6 $11.6 $10.4 $12.6 $12.5 $14.7 $16.0 Operating Expenses and Efficiency $ in millions Q4 2017 Compared to Q3 2017 ▪ The operating efficiency ratio increased from 40.0% in Q3 2017 to 40.7% ▪ Operating expenses increased from the prior quarter primarily due to an increase in incentive compensation costs and the reserve for unfunded loans Operating Expenses and Efficiency Ratio Other Professional Fees + Data Processing Occupancy + Insurance Compensation Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 42.4% 44.4% 41.2% 40.0% 40.7% $82.7 $88.4 $88.2 $89.0 $95.4 7

8 Net Income and ROA Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $69.8 $73.3 $80.0 $82.8 $89.3 1.63% 1.69% 1.71% 1.71% 1.79% Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions Operating Pre-Provision Net Revenue and Operating PPNR ROA Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $103.1 $100.9 $115.2 $122.7 $127.8 2.40% 2.32% 2.46% 2.53% 2.57% 8

9 Consolidated Balance Sheet $ in millions ▪ Loans increased $572 million (3.9%) over prior quarter and $1.89 billion (14.3%) over prior year ▪ Deposits increased $68 million (0.4%) over prior quarter and $2.42 billion (16.6%) over prior year ▪ Shareholders' Equity increased $84 million over prior quarter and $338 million over prior year as a function of Net Income ▪ Tangible Book Value/Share increased $0.78 over prior quarter and $3.14 (20.7%) over prior year Q4 2017 and Full Year HighlightsQ4-17 Q3-17 Q4-16 Investments & Cash $ 4,237 $ 4,424 $ 3,052 Loans 15,094 14,522 13,209 Allowance for Credit Losses (140) (136) (125) Other Assets 1,138 1,112 1,065 Total Assets $ 20,329 $ 19,922 $ 17,201 Deposits $ 16,973 $ 16,905 $ 14,550 Borrowings 793 399 489 Other Liabilities 334 472 270 Total Liabilities $ 18,100 $ 17,776 $ 15,309 Shareholders' Equity 2,229 2,146 1,892 Total Liabilities and Equity $ 20,329 $ 19,922 $ 17,201 Tangible Book Value Per Share $ 18.31 $ 17.53 $ 15.17 9

10 5 Quarter Loan Growth and Portfolio Composition $ in millions Highlights ▪ Quarter-over-quarter loan growth driven by: ◦ CRE, Non-OO $276 million ◦ CRE, OO $180 million ◦ C&I $103 million ▪ Year-over-year loan growth driven by: ◦ C&I $981 million ◦ CRE, Non-OO $360 million ◦ CRE, OO $213 million $1.89 Billion Year Over Year Growth Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $5,860 $6,057 $6,321 $6,738 $6,841 $2,029 $2,043 $2,035 $2,062 $2,242 $3,544 $3,608 $3,649 $3,628 $3,904 $1,478 $1,602 $1,602 $1,666 $1,632 $298 $353 $383 $428 $475 2.3% 15.2% 26.8% 44.3% 11.2% 3.1% 14.9% 25.9% 45.3% 10.8% Residential and Consumer Construction & Land CRE, Non-Owner Occupied CRE, Owner Occupied Commercial & Industrial $13,209 +175 $13,663 +454 $13,990 +327 $14,522 +532 $15,094 +572 10

11 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $5,633 $6,114 $6,859 $7,609 $7,434 $1,347 $1,449 $1,481 $1,406 $1,586 $6,121 $6,254 $6,104 $6,300 $6,331 $1,449 $1,539 $1,587 $1,590 $1,622 5 Quarter Deposit Growth and Composition $ in millions Highlights ▪ Quarter-over-quarter deposit growth driven by: ◦ Interest Bearing DDA of $180 million ◦ Savings and MMDA of $31 million ◦ Offset by Non-Interest Bearing DDA decrease of $175 million ▪ Year-over-year deposit growth driven by: ◦ Non-interest bearing DDA of $1.80 billion ◦ Interest-Bearing DDA of $239 million ◦ Savings and MMDA of $210 million ◦ CDs of $173 million 9.3% 10.0% 38.7% 42.1% 9.3% 9.6% 43.8% 37.3% $2.42 Billion Year Over Year Growth CDs Savings and MMDA Interest Bearing DDA Non-Interest Bearing DDA $16,031 +675 $15,356 +806 $14,550 +107 $16,905 +874 $16,973 +68 11

12 Adversely Graded Assets to Total Assets NPAs to Total Assets Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 2.07% 2.25% 2.04% 2.12% 1.85% 0.51% 0.44% 0.32% 0.42% 0.36% OREO Non-Performing Loans Classified Accruing Loans Special Mention Loans Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $48 $45 $31 $29 $28 $40 $34 $30 $55 $44 $107 $133 $166 $122 $128 $148 $175 $141 $200 $155 Adversely Graded Loans and Non-Performing Assets * $ in millions NPAs Adversely Graded Loans $406 Accruing TDRs total $42.4 million as of 12/31/2017 $343 $387 $368 $355 * Amounts are net of total PCI credit and interest rate discounts of $16 million as of 12/31/2017 12 Special Mention Loans OREO

13 Credit Discounts (CD) and CD to Acquired Loans Ratio Gross Charge-Offs Recoveries Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs, Recoveries and Rate Provision for Credit Losses Credit Discounts CD/Acquired Loans Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $47.3 $45.1 $37.8 $32.7 $27.0 2.45% 2.46% 2.19% 2.02% 1.86% Provision for Credit Losses Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 $1.0 $4.3 $3.0 $5.0 $5.0 ALLL and ALLL to Organic Loans Ratio ALLL ALLL/Total Organic Loans Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 1.11% 1.08% 1.08% 1.06% 1.03% 13 $1.4 $2.7 $3.2 $2.8 $(1.4) $(2.8) $(2.2) $(4.0) $2.3 $(0.9) $125 $128 $136 $132 $140

14 ROTCE and TBV/ShareCapital Ratios ROTCE TBV/Share Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 17.6% 17.8% 18.4% 18.2% 18.8% $15.17 $15.86 $16.71 $17.53 $18.31 Capital Total Capital Common Equity Tier 1 Tier 1 Leverage Tangible Common Equity Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 13.2% 13.1% 13.3% 13.3% 13.2% 10.0% 10.0% 10.3% 10.4% 10.4% 9.9% 10.2% 9.9% 10.1% 10.3% 9.4% 9.4% 9.5% 9.4% 9.6% 14

15 Management Outlook ▪ Financial Position ▪ Margin ▪ Operating Leverage ▪ Asset Quality ▪ Tax Rate 15

Questions & Answers

17 Forward-Looking Statements 17 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, and future economic performance. 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, 2016 as filed with the Securities and Exchange Commission; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; 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 to have 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 presentation to reflect new information, future events or otherwise.