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):  October 18, 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 October 18, 2018, Western Alliance Bancorporation (the “Company”) issued a press release reporting results for the fiscal quarter ended September 30, 2018 and posted on its website its third quarter 2018 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 October 18, 2018.

99.2         Third Quarter 2018 Earnings Conference Call dated October 19, 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:	October 18, 2018

EX-99.1

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

PHOENIX--(BUSINESS WIRE)--October 18, 2018

THIRD QUARTER 2018 FINANCIAL RESULTS

Net income	Earnings per share	Net interest margin	Efficiency ratio	Book value per common share
$111.1 million	$1.05	4.72%	46.6%	$23.51

CEO COMMENTARY:

“Western Alliance posted another solid quarter of earnings and balance sheet growth. Our strong commitment and deep relationship with our clients helps foster an environment where addressing their needs aligns well with our growth expectations,” said Chief Executive Officer, Kenneth Vecchione.

“Loan growth of $595 million was fully funded by deposit growth of $821 million, while net interest margin expanded two basis points to 4.72%. Asset quality was stable with net loan losses of 0.08% of total loans during the quarter and nonperforming assets of 0.26% of total assets. Our financial results have steadily climbed quarter-over-quarter, with net income of $111.1 million and earnings per share of $1.05 for the quarter, which has us well-positioned as we head into the final quarter of 2018.”

LINKED-QUARTER BASIS	YEAR-OVER-YEAR
FINANCIAL HIGHLIGHTS:

▪ Net income and earnings per share of $111.1 million and $1.05 compared to $104.7 million and $0.99, respectively

▪ Net operating revenue of $246.9 million constituting growth of 3.6%, or $8.7 million, compared to an increase in operating non-interest expenses of 2.3%, or $2.3 million¹

▪ Operating pre-provision net revenue of $141.9 million, up$6.4 million from $135.5 million¹

▪ Effective tax rate of 6.32%, compared to 19.48%, as management re-assessed its tax planning strategies and made a carryback election

▪ Net income of $111.1 million and earnings per share of $1.05, compared to $82.8 million and $0.79, respectively

▪ Net operating revenue of $246.9 million constituting year-over-year growth of 16.6%, or $35.2 million, compared to an increase in operating non-interest expenses of 18.0%, or $16.0 million¹  

▪ Operating pre-provision net revenue of $141.9 million, up $19.2 million from $122.7 million¹ 

▪ Effective tax rate of 6.32%, compared to 29.64%, due to the effect of the Tax Cuts and Jobs Act and carryback election

FINANCIAL POSITION RESULTS:

▪ Total loans of $16.73 billion, up $595 million, or 14.7% annualized

▪ Total deposits of $18.91 billion, up $821 million, or 18.2% annualized

▪ Stockholders' equity of $2.49 billion, up $97 million

▪ Increase in total loans of $2.21 billion, or 15.2%

▪ Increase in total deposits of $2.00 billion, or 11.9%

▪ Increase in stockholders' equity of $343 million

LOANS AND ASSET QUALITY:

▪ Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.26%, compared to 0.29%

▪ Annualized net loan charge-offs to average loans outstanding of 0.08%, compared to 0.07%

▪ Nonperforming assets to total assets of 0.26%, compared to 0.42%

▪ Annualized net loan charge-offs to average loans outstanding of 0.08%, compared to 0.01%

KEY PERFORMANCE METRICS:

▪ Net interest margin of 4.72%, compared to 4.70%

▪ Return on average assets and on tangible common equity¹ of 2.07% and 20.57%, compared to 2.02% and 20.41%, respectively

▪ Tangible common equity ratio of 10.0%, compared to 9.9%¹ 

▪ Tangible book value per share, net of tax, of $20.70, an increase from $19.78¹ 

▪ Operating efficiency ratio of 41.5%, compared to 42.1%¹ 

▪ Net interest margin of 4.72%, compared to 4.65%

▪ Return on average assets and on tangible common equity¹ of 2.07% and 20.57%, compared to 1.71% and 18.18%, respectively

▪ Tangible common equity ratio of 10.0%, compared to 9.4%¹ 

▪ Tangible book value per share, net of tax, of $20.70, an increase of 18.1% from $17.53¹ 

▪ Operating efficiency ratio of 41.5%, compared to 40.0%¹ 

¹   See reconciliation of Non-GAAP Financial Measures beginning on page 20.

1

Income Statement

Net interest income was $234.0 million in the third quarter 2018, an increase of $9.9 million from $224.1 million in the second quarter 2018, and an increase of $32.5 million, or 16.1%, compared to the third quarter 2017. As acquired loans are recorded at fair value in an acquisition, purchase discounts on these acquired loans are recorded and accreted into interest income based on expected future cash flows over the life of the loans and may be accelerated upon prepayment of acquired loans. Net interest income in the third quarter 2018 includes $3.3 million of total accretion income from acquired loans, compared to $5.1 million in the second quarter 2018, and $7.5 million in the third quarter 2017.

The Company’s net interest margin in the third quarter 2018 was 4.72%, an increase from 4.70% in the second quarter 2018, and from 4.65% in the third quarter 2017. Adjusting net interest margin to include the effects of the Tax Cuts and Jobs Act ("TCJA"), which reduced the tax equivalent adjustment from tax-exempt securities and loans, results in adjusted net interest margin¹ of 4.53%for the third quarter 2017.

Operating non-interest income was $12.9 million for the third quarter 2018, compared to $14.1 millionfor thesecond quarter 2018, and $10.1 million for the third quarter 2017.¹ The decrease in operating non-interest income from thesecond quarter 2018 primarily relates to a decrease in income from equity investments. The increase in operating non-interest income for the third quarter 2018 compared to the same quarter in the prior year is due primarily to increases in lending related income of $1.3 million, card income of $0.6 million, and income from equity securities of $0.5 million.

Net operating revenue was $246.9 million for the third quarter 2018, an increase of $8.7 million, compared to $238.2 million for the second quarter 2018, and an increase of $35.2 million, or 16.6%, compared to $211.7 million for the third quarter 2017.¹  

Operating non-interest expense was $105.0 million for the third quarter 2018, compared to $102.7 million for the second quarter 2018, and $89.0 million for the third quarter 2017.¹ The Company’s operating efficiency ratio¹ on a tax equivalent basis was 41.5% for the third quarter 2018, compared to 42.1% for the second quarter 2018, and 40.0% for the third quarter 2017. Adjusting the operating efficiency ratio¹ to include the effects of the lower statutory corporate federal tax rate would result in an operating efficiency ratio of 41.0% for the third quarter 2017.

Income tax expense was $7.5 million for the third quarter 2018, compared to $25.3 million for the second quarter 2018, and $34.9 million for the third quarter 2017. Income tax expense for the second and third quarters of 2018 includes the effect of the Tax Cuts and Jobs Act, which lowered the statutory corporate tax rate from 35% to 21%. In addition, income tax expense for the third quarter 2018 includes the effect of management’s election to carryback to prior tax years the 2017 federal net operating losses ("NOL"), which resulted from the acceleration of deductions and deferral of revenue at the end of 2017. In the carryback taxable years to which the NOL will apply, the federal income tax rate was higher compared to those years to which the NOL would apply if it were carried forward.

Net income was $111.1 million for the third quarter 2018, an increase of $6.4 million from $104.7 million for the second quarter 2018, and an increase of $28.3 million, or 34.1%, from $82.8 million for the third quarter 2017. Earnings per share was $1.05 for the third quarter 2018, compared to $0.99 for the second quarter 2018, and $0.79 for the third quarter 2017.

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 third quarter 2018, the Company’s operating PPNR was $141.9 million, up from $135.5 million in the second quarter 2018, and up15.6% from $122.7 million in the third quarter 2017.¹ The non-operating income items¹ for the third quarter 2018 consisted of net losses on sales of investment securities of $7.2 million and net unrealized losses on assets measured at fair value of $1.2 million. The non-operating or non-recurring expense items¹ for the third quarter 2018 consisted of a $7.6 million charitable contribution and a $1.2 million adjustment related to the Company's 401(k) plan and other miscellaneous items. These amounts were partially offset by a net gain on sales and valuations of repossessed and other assets of $0.1 million.

The Company had 1,795 full-time equivalent employees and 47 offices at September 30, 2018, compared to 1,773 employees and 47 offices at June 30, 2018, and 1,673 employees and 47 offices at September 30, 2017.

¹  See reconciliation of Non-GAAP Financial Measures beginning on page 20.

2

Balance Sheet

Gross loans totaled $16.73 billion at September 30, 2018, an increase of $595 million from $16.14 billion at June 30, 2018, and an increase of $2.21 billion from $14.52 billion at September 30, 2017. The increase from the prior quarter was driven by an increase of $282 million in residential real estate loans, $209 million in commercial and industrial loans, and $129 million in construction and land development loans. From September 30, 2017, loans increased across all loan types, with the largest increases in commercial and industrial loans of $750 million, residential real estate loans of $450 million, and construction and land development loans of $441 million. At September 30, 2018, the allowance for credit losses to gross loans held for investment was 0.90%, compared to 0.91% at June 30, 2018, and 0.94% at September 30, 2017. At September 30, 2018, the allowance for credit losses to total organic loans was 0.97%, compared to 0.99% at June 30, 2018, and 1.06% at September 30, 2017. 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 $17.2 million at September 30, 2018, compared to $19.7 million at June 30, 2018, and $32.8 million at September 30, 2017.

Deposits totaled $18.91 billion at September 30, 2018, an increase of $821 million from $18.09 billion at June 30, 2018, and an increase of $2.00 billion from $16.90 billion at September 30, 2017. The increase from the prior quarter was driven by an increase of $590 million from savings and money market accounts and $114 million from demand deposits. From September 30, 2017, deposits increased across all deposit types, with the largest increases in savings and money market accounts of $759 million, demand deposits of $572 million, and non-interest bearing demand deposits of $406 million. Non-interest bearing deposits were $8.01 billion at September 30, 2018, compared to $7.95 billion at June 30, 2018, and $7.61 billion at September 30, 2017. Non-interest bearing deposits comprised 42.4% of total deposits at September 30, 2018, compared to 43.9% at June 30, 2018, and 45.0% at September 30, 2017. The proportion of savings and money market balances to total deposits was 37.3%, compared to 35.8% at June 30, 2018, and 37.3% at September 30, 2017. Certificates of deposit as a percentage of total deposits were 9.8% at September 30, 2018, compared to 10.0% at June 30, 2018, and 9.4% at September 30, 2017. The Company’s ratio of loans to deposits was 88.5% at September 30, 2018, compared to 89.2% at June 30, 2018, and 85.9% at September 30, 2017.

Borrowings were zero at September 30, 2018, compared to $75 million at June 30, 2018, and zero at September 30, 2017. The change in borrowings from the prior quarter is due to fluctuations in FHLB overnight advances.

Qualifying debt totaled $359 million at September 30, 2018, compared to $361 million at June 30, 2018, and $373 million at September 30, 2017.

Stockholders’ equity at September 30, 2018 was $2.49 billion, compared to $2.39 billion at June 30, 2018, and $2.15 billion at September 30, 2017.

At September 30, 2018, tangible common equity, net of tax, was 10.0% of tangible assets¹ and total capital was 13.5% of risk-weighted assets. The Company’s tangible book value per share¹ was $20.70 at September 30, 2018, up 18.1% from September 30, 2017.

Total assets increased3.8% to $22.18 billion at September 30, 2018, from $21.37 billion at June 30, 2018, and increased11.3% from $19.92 billion at September 30, 2017. The increase in total assets from the prior year relates primarily to organic loan growth.

Asset Quality

The provision for credit losses was $6.0 million for the third quarter 2018, compared to $5.0 millionfor both the second quarter 2018 and the third quarter 2017. Net loan charge-offs in the third quarter 2018 were $3.1 million, or 0.08% of average loans (annualized), compared to $2.6 million, or 0.07%, in the second quarter 2018, and $0.4 million, or 0.01%, in the third quarter 2017.

Nonaccrual loans increased$2.9 million to $36.9 million during the quarter and decreased $18.1 million during past twelve months. There were no loans past due 90 days and still accruing interest at each of the periods ended September 30, 2018 and June 30, 2018. At September 30, 2017, loans past due 90 days and still accruing interest totaled less than $0.1 million. Loans past due 30-89 days and still accruing interest totaled $9.4 million at quarter end, an increase from $1.5 million at June 30, 2018, and an increase from $5.2 million at September 30, 2017.

Repossessed assets totaled $20.0 million at September 30, 2018, a decrease of $7.5 million from $27.5 million at June 30, 2018, and a decrease of $9.0 million from $29.0 million at September 30, 2017. Adversely graded loans and non-performing assets totaled $358.3 million at September 30, 2018, a decrease of $10.2 million from $368.5 million at June 30, 2018, and a decrease of $47.9 million from $406.2 million at September 30, 2017.

As the Company’s 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 10.2% at September 30, 2018, compared to 10.1% at June 30, 2018, and 10.8% at September 30, 2017.¹ 

¹ See reconciliation of Non-GAAP Financial Measures beginning on page 20.

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 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 $8.98 billion at September 30, 2018, an increase of $257 million during the quarter, and an increase of $1.03 billion during the last twelve months. The growth in loans during the quarter was driven by increases across all regional segments, with the largest increases in Southern California and Nevada of $88 million and $86 million, respectively. All regional segments contributed to the growth in loans during the last twelve months. The largest increases were $462 million in Arizona, $251 million in Nevada, and $243 million in Southern California. Total deposits for the regional segments were $13.68 billion, an increase of $562 million during the quarter, and an increase of $485 million during the last twelve months. During the quarter, Southern California and Northern California had the largest increases in deposits of $248 million and $167 million, respectively. During the last twelve months, Northern California and Arizona had increased deposits of $416 million and $134 million, respectively, which were partially offset by a decrease in deposits of $103 million in Nevada.

Pre-tax income for the regional segments was $87.2 million for the three months ended September 30, 2018, an increase of $1.3 million from the three months ended June 30, 2018, and an increase of $1.1 million from the three months ended September 30, 2017. Nevada, Northern California and Southern California had increases in pre-tax income of $1.8 million, $0.5 million, and $0.3 million respectively, compared to the three months ended June 30, 2018, which were partially offset by a decrease of $1.3 million in Arizona. Northern California and Arizona had increases in pre-tax income from the three months ended September 30, 2017 of $3.2 million and $0.7 million, respectively. These increases were partially offset by decreases of $1.9 million and $0.8 million in Nevada and Southern California, respectively. For the nine months ended September 30, 2018, the regional segments reported total pre-tax income of $259.1 million, an increase of $15.9 million compared to the nine months ended September 30, 2017. Arizona and Northern California had increases of $12.4 million and $6.1 million, respectively. These increases were partially offset by decreases of $2.1 million and $0.5 million in Southern California and Nevada, respectively.

The NBL segments reported gross loan balances of $7.75 billion at September 30, 2018, an increase of $335 million during the quarter, and an increase of $1.18 billion during the last twelve months. The largest increase in loans from the prior quarter relates to the Other NBLs segment, which increased loans by $461 million. This increase was partially offset by decreases in the Technology & Innovation and Public & Nonprofit Finance segments, which had decreases in loans from the prior quarter of $99 million and $46 million, respectively. During the last twelve months, the largest drivers of the increase in loans were Other NBLs, HFF, and Technology & Innovation segments, with increases of $970 million, $163 million, and $57 million, respectively. These increases were partially offset by a decrease in Public & Nonprofit Finance of $54 million. Total deposits for the NBL segments were $4.84 billion, an increase of $335 million during the quarter, and an increase of $1.23 billion during the last twelve months. The increase in deposits from the prior quarter primarily relates to the Technology & Innovation segment, which had an increase in deposits of $326 million. The increase of $1.23 billion during the last twelve months is the result of growth in both the Technology & Innovation and HOA Services segments of $860 million and $371 million, respectively.

Pre-tax income for the NBL segments was $51.4 million for the three months ended September 30, 2018, an increase of $2.7 million from the three months ended June 30, 2018, and an increase of $5.8 million from the three months ended September 30, 2017. The increase in pre-tax income from the prior quarter relates to the Technology & Innovation, HOA Services, and Public & Nonprofit Finance segments, which increased by $2.7 million, $1.7 million, and $0.5 million, respectively. These increases were partially offset by decreases in pre-tax income from the Other NBLs and HFF segments, which had decreases of $1.4 million and $0.8 million, respectively. The drivers of the increase in pre-tax income from the same period in the prior year were the Technology & Innovation, HOA Services, and Other NBL segments, which had increases of $5.2 million, $3.0 million, and $2.8 million, respectively. These increases were partially offset by decreases in pre-tax income for the Public & Nonprofit Finance and HFF segments, which decreased by $3.0 million and $2.0 million, respectively. Pre-tax income for the NBL segments for the nine months ended September 30, 2018 totaled $146.8 million, an increase of $21.1 million compared to the nine months ended September 30, 2017. The largest increases were in the Technology & Innovation, Other NBLs, and HOA Services segments. These segments had increases of $11.3 million, $11.1 million, and $6.6 million, respectively. These increases were partially offset by a decrease of $8.6 million in the Public & Nonprofit Finance segment.

4

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2018 financial results at 12:00 p.m. ET on Friday, October 19, 2018. Participants may access the call by dialing 1-888-317-6003 and using passcode 7454025 or via live audio webcast using the website link https://services.choruscall.com/links/wa181019.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 October 19th through 9:00 a.m. ET November 19th by dialing 1-877-344-7529 passcode: 10124472.

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.

Adoption of Accounting Standards

During the first quarter 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers, ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities and ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

The amendments in ASU 2014-09 create a common revenue standard and clarify the principles for recognizing revenue that can be applied consistently across various transactions, industries, and capital markets. Although this new accounting guidance brings considerable changes to how many companies account for revenue and disclose revenue-related information, the effect on the Company has not been significant as substantially all of the Company's revenue is generated from interest income related to loans and investment securities, which are not within the scope of this guidance. For the Company's revenue streams that are within the scope of this guidance, the guidance was adopted on January 1, 2018 using the modified retrospective method. Upon adoption, the Company's accounting policies did not change materially as the principles of revenue recognition in the ASU are largely consistent with current practices applied by the Company.

The amendments in ASU 2016-01 require that equity investments be measured at fair value with changes in fair value recognized in net income, rather than accumulated other comprehensive income. Upon adoption of the new accounting guidance, on January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.4 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings. During the nine months ended September 30, 2018, the Company recognized a loss of $3.0 million related to fair value changes in equity securities.

The amendments in ASU 2018-02 allow a reclassification from accumulated other comprehensive income to retained earnings from tax effects resulting from the TCJA so that tax effects of items within other comprehensive income reflect the current tax rate. Previously, the effect of a change in tax laws or rates on deferred tax liabilities and assets were included in income from continuing operations even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in comprehensive income. Upon adoption of the new accounting guidance, on January 1, 2018, the Company recorded a cumulative-effect adjustment of $0.6 million to decrease accumulated other comprehensive income with a corresponding increase to opening retained earnings.

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, 2017 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.

5

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 and is ranked #2 on the Forbes 2018 “Best Banks in America” list. Its primary subsidiary, Western Alliance Bank, Member FDIC, is the go-to bank for business and succeeds with local teams of experienced bankers who deliver superior service and a full spectrum of customized loan, deposit and treasury management capabilities. Business clients also benefit from a powerful array of specialized financial services that provide strong expertise and tailored solutions for a wide variety of industries and sectors. A national presence with a regional footprint, Western Alliance Bank operates individually branded, full-service banking divisions with offices inkey markets nationwide. For more information, visit westernalliancebank.com

6

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Selected Balance Sheet Data:
							As of September 30,
							2018		2017		Change %
							(in millions)
Total assets							$	22,176.1	$	19,922.2	11.3	%
Gross loans, net of deferred fees							16,732.8		14,521.9		15.2
Securities and money market investments							3,633.7		3,773.6		(3.7	)
Total deposits							18,908.6		16,904.8		11.9
Qualifying debt							359.1		372.9		(3.7	)
Stockholders' equity							2,488.4		2,145.6		16.0
Tangible common equity, net of tax (1)							2,191.3		1,848.8		18.5
Selected Income Statement Data:
	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018		2017		Change %		2018		2017		Change %
	(in thousands, except per share data)						(in thousands, except per share data)
Interest income	$	265,216	$	217,836	21.8	%	$	751,515	$	617,054	21.8	%
Interest expense	31,178		16,253		91.8		79,149		43,419		82.3
Net interest income	234,038		201,583		16.1		672,366		573,635		17.2
Provision for credit losses	6,000		5,000		20.0		17,000		12,250		38.8
Net interest income after provision for credit losses	228,038		196,583		16.0		655,366		561,385		16.7
Non-interest income	4,418		10,456		(57.7	)	29,505		31,656		(6.8	)
Non-interest expense	113,841		89,296		27.5		314,538		265,543		18.5
Income before income taxes	118,615		117,743		0.7		370,333		327,498		13.1
Income tax expense	7,492		34,899		(78.5	)	53,631		91,352		(41.3	)
Net income	$	111,123	$	82,844	34.1		$	316,702	$	236,146	34.1
Diluted earnings per share	$	1.05	$	0.79	32.9		$	3.00	$	2.25	33.3

(1)    See Reconciliation of Non-GAAP Financial Measures.

NM    Changes +/- 100% are not meaningful.

7

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited
Common Share Data:
	At or For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018		2017		Change %		2018		2017		Change %
Diluted earnings per share	$	1.05	$	0.79	32.9	%	$	3.00	$	2.25	33.3	%
Book value per common share	23.51		20.34		15.6
Tangible book value per share, net of tax (1)	20.70		17.53		18.1
Average shares outstanding (in thousands):
Basic	104,768		104,221		0.5		104,664		104,124		0.5
Diluted	105,448		104,942		0.5		105,398		104,941		0.4
Common shares outstanding	105,865		105,493		0.4

Selected Performance Ratios:
Return on average assets (2)	2.07	%	1.71	%	21.1	%	2.02	%	1.70	%	18.8	%
Return on average tangible common equity (1, 2)	20.57		18.18		13.1		20.47		18.15		12.8
Net interest margin (2)	4.72		4.65		1.5		4.67		4.63		0.9
Operating efficiency ratio - tax equivalent basis (1)	41.5		40.0		3.8		42.1		41.8		0.7
Loan to deposit ratio	88.49		85.90		3.0
Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)	0.08	%	0.01	%	NM		0.06	%	0.01	%	NM
Nonaccrual loans to gross loans	0.22		0.38		(42.1	)
Nonaccrual loans and repossessed assets to total assets	0.26		0.42		(38.1	)
Allowance for credit losses to gross loans	0.90		0.94		(4.3	)
Allowance for credit losses to nonaccrual loans	406.89		248.07		64.0

Capital Ratios (1):
	Sep 30, 2018		Jun 30, 2018		Sep 30, 2017
Tangible common equity (1)	10.0	%	9.9	%	9.4	%
Common Equity Tier 1 (1), (3)	10.9		10.7		10.4
Tier 1 Leverage ratio (1), (3)	11.0		10.8		10.1
Tier 1 Capital (1), (3)	11.3		11.1		10.8
Total Capital (1), (3)	13.5		13.4		13.3

(1)    See Reconciliation of Non-GAAP Financial Measures.

(2)    Annualized for the three and nine months ended September 30, 2018 and 2017.

(3)    Capital ratios for September 30, 2018 are preliminary until the Call Report is filed.

NM    Changes +/- 100% are not meaningful.

8

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
	Three Months Ended September 30,					Nine Months Ended September 30,
	2018			2017		2018			2017
	(dollars in thousands, except per share data)
Interest income:
Loans	$	234,709		$	191,096	$	662,703		$	547,306
Investment securities	27,239			23,584		81,305			62,327
Other	3,268			3,156		7,507			7,421
Total interest income	265,216			217,836		751,515			617,054
Interest expense:
Deposits	25,266			11,449		59,288			29,506
Qualifying debt	5,794			4,708		16,458			13,539
Borrowings	118			96		3,403			374
Total interest expense	31,178			16,253		79,149			43,419
Net interest income	234,038			201,583		672,366			573,635
Provision for credit losses	6,000			5,000		17,000			12,250
Net interest income after provision for credit losses	228,038			196,583		655,366			561,385
Non-interest income:
Service charges and fees	5,267			5,248		16,684			15,189
Card income	2,138			1,509		6,143			4,517
Income from equity investments	1,440			967		5,417			2,977
Lending related income and gains (losses) on sale of loans, net	1,422			97		3,447			746
Foreign currency income	1,092			756		3,475			2,630
Income from bank owned life insurance	868			975		2,963			2,896
(Loss) gain on sales of investment securities, net	(7,232		)	319		(7,232		)	907
Unrealized (losses) gains on assets measured at fair value, net	(1,212		)	—		(2,971		)	(1		)
Other	635			585		1,579			1,795
Total non-interest income	4,418			10,456		29,505			31,656
Non-interest expenses:
Salaries and employee benefits	64,762			52,747		188,680			156,640
Legal, professional, and directors' fees	7,907			6,038		21,856			23,324
Occupancy	7,406			7,507		21,671			21,328
Data processing	5,895			4,524		16,688			14,163
Deposit costs	4,848			2,904		11,888			6,778
Insurance	3,712			3,538		11,466			10,355
Business development	1,381			1,439		4,523			4,949
Card expense	1,282			966		3,305			2,558
Loan and repossessed asset expenses	1,230			1,263		2,830			3,639
Marketing	687			776		2,429			2,628
Intangible amortization	398			489		1,195			1,666
Net (gain) loss on sales and valuations of repossessed and other assets	(67		)	266		(1,474		)	(46		)
Other	14,400			6,839		29,481			17,561
Total non-interest expense	113,841			89,296		314,538			265,543
Income before income taxes	118,615			117,743		370,333			327,498
Income tax expense	7,492			34,899		53,631			91,352
Net income	$	111,123		$	82,844	$	316,702		$	236,146
Earnings per share:
Diluted shares	105,448			104,942		105,398			104,941
Diluted earnings per share	$	1.05		$	0.79	$	3.00		$	2.25

9

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
	Three Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017
	(in thousands, except per share data)
Interest income:
Loans	$	234,709		$	222,035		$	205,959		$	200,204		$	191,096
Investment securities	27,239			27,445			26,621			26,312			23,584
Other	3,268			2,122			2,117			1,943			3,156
Total interest income	265,216			251,602			234,697			228,459			217,836
Interest expense:
Deposits	25,266			19,849			14,173			12,459			11,449
Qualifying debt	5,794			5,695			4,969			4,734			4,708
Borrowings	118			1,950			1,335			237			96
Total interest expense	31,178			27,494			20,477			17,430			16,253
Net interest income	234,038			224,108			214,220			211,029			201,583
Provision for credit losses	6,000			5,000			6,000			5,000			5,000
Net interest income after provision for credit losses	228,038			219,108			208,220			206,029			196,583
Non-interest income:
Service charges and fees	5,267			5,672			5,745			5,157			5,248
Card income	2,138			2,033			1,972			1,796			1,509
Income from equity investments	1,440			2,517			1,460			1,519			967
Lending related income and gains (losses) on sale of loans, net	1,422			1,047			978			1,466			97
Foreign currency income	1,092			1,181			1,202			906			756
Income from bank owned life insurance	868			1,167			928			965			975
(Loss) gain on sales of investment securities, net	(7,232		)	—			—			1,436			319
Unrealized (losses) gains on assets measured at fair value, net	(1,212		)	(685		)	(1,074		)	—			—
Other	635			512			432			443			585
Total non-interest income	4,418			13,444			11,643			13,688			10,456
Non-interest expenses:
Salaries and employee benefits	64,762			61,785			62,133			57,704			52,747
Legal, professional, and directors' fees	7,907			7,946			6,003			6,490			6,038
Occupancy	7,406			7,401			6,864			6,532			7,507
Data processing	5,895			5,586			5,207			5,062			4,524
Deposit costs	4,848			4,114			2,926			2,953			2,904
Insurance	3,712			3,885			3,869			3,687			3,538
Business development	1,381			1,414			1,728			1,179			1,439
Card expense	1,282			1,081			942			855			966
Loan and repossessed asset expenses	1,230			1,017			583			978			1,263
Marketing	687			1,146			596			1,176			776
Intangible amortization	398			399			398			408			489
Net (gain) loss on sales and valuations of repossessed and other assets	(67		)	(179		)	(1,228		)	(34		)	266
Other	14,400			6,953			8,128			8,408			6,839
Total non-interest expense	113,841			102,548			98,149			95,398			89,296
Income before income taxes	118,615			130,004			121,714			124,319			117,743
Income tax expense	7,492			25,325			20,814			34,973			34,899
Net income	$	111,123		$	104,679		$	100,900		$	89,346		$	82,844
Earnings per share:
Diluted shares	105,448			105,420			105,324			105,164			104,942
Diluted earnings per share	$	1.05		$	0.99		$	0.96		$	0.85		$	0.79

10

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017
	(in millions, except per share data)
Assets:
Cash and due from banks	$	700.5		$	506.8		$	439.4		$	416.8		$	650.4
Securities and money market investments	3,633.7			3,688.7			3,734.3			3,820.4			3,773.6
Loans held for sale	—			—			—			—			16.3
Loans held for investment:
Commercial	7,487.7			7,278.4			6,944.4			6,841.4			6,735.9
Commercial real estate - non-owner occupied	3,953.0			4,010.6			3,925.3			3,904.0			3,628.4
Commercial real estate - owner occupied	2,288.2			2,270.5			2,264.6			2,241.6			2,047.5
Construction and land development	2,107.6			1,978.3			1,957.5			1,632.2			1,666.4
Residential real estate	827.1			545.3			418.1			425.9			376.7
Consumer	69.2			55.2			50.5			48.8			50.7
Gross loans, net of deferred fees	16,732.8			16,138.3			15,560.4			15,093.9			14,505.6
Allowance for credit losses	(150.0		)	(147.1		)	(144.7		)	(140.0		)	(136.4		)
Loans, net	16,582.8			15,991.2			15,415.7			14,953.9			14,369.2
Premises and equipment, net	119.2			115.4			116.7			118.7			120.1
Other assets acquired through foreclosure, net	20.0			27.5			30.2			28.5			29.0
Bank owned life insurance	169.2			168.7			168.6			167.8			166.8
Goodwill and other intangibles, net	299.5			300.0			300.4			300.7			301.2
Other assets	651.2			569.2			555.4			522.3			495.6
Total assets	$	22,176.1		$	21,367.5		$	20,760.7		$	20,329.1		$	19,922.2
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing demand deposits	$	8,014.7		$	7,947.9		$	7,502.0		$	7,434.0		$	7,608.7
Interest bearing:
Demand	1,978.4			1,864.6			1,776.3			1,586.2			1,406.4
Savings and money market	7,059.1			6,468.8			6,314.9			6,330.9			6,300.2
Time certificates	1,856.4			1,806.2			1,761.3			1,621.4			1,589.5
Total deposits	18,908.6			18,087.5			17,354.5			16,972.5			16,904.8
Customer repurchase agreements	20.9			18.0			21.7			26.0			26.1
Total customer funds	18,929.5			18,105.5			17,376.2			16,998.5			16,930.9
Borrowings	—			75.0			300.0			390.0			—
Qualifying debt	359.1			361.1			363.9			376.9			372.9
Accrued interest payable and other liabilities	399.1			434.2			426.9			334.0			472.8
Total liabilities	19,687.7			18,975.8			18,467.0			18,099.4			17,776.6
Stockholders' Equity:
Common stock and additional paid-in capital	1,392.6			1,387.9			1,385.0			1,384.3			1,378.8
Retained earnings	1,166.2			1,055.1			950.4			848.5			758.6
Accumulated other comprehensive (loss) income	(70.4		)	(51.3		)	(41.7		)	(3.1		)	8.2
Total stockholders' equity	2,488.4			2,391.7			2,293.7			2,229.7			2,145.6
Total liabilities and stockholders' equity	$	22,176.1		$	21,367.5		$	20,760.7		$	20,329.1		$	19,922.2

11

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses
Unaudited
	Three Months Ended
	Sept 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sept 30, 2017
	(in thousands)
Balance, beginning of period	$	147,083		$	144,659		$	140,050		$	136,421		$	131,811
Provision for credit losses	6,000			5,000			6,000			5,000			5,000
Recoveries of loans previously charged-off:
Commercial and industrial	362			916			459			406			619
Commercial real estate - non-owner occupied	804			15			105			58			1,168
Commercial real estate - owner occupied	52			231			21			119			613
Construction and land development	24			8			1,388			218			226
Residential real estate	440			141			250			120			108
Consumer	11			14			10			3			33
Total recoveries	1,693			1,325			2,233			924			2,767
Loans charged-off:
Commercial and industrial	4,610			2,777			3,517			2,019			2,921
Commercial real estate - non-owner occupied	—			233			—			275			175
Commercial real estate - owner occupied	—			—			—			—			—
Construction and land development	—			1			—			—			—
Residential real estate	46			885			107			—			—
Consumer	109			5			—			1			61
Total loans charged-off	4,765			3,901			3,624			2,295			3,157
Net loan charge-offs	3,072			2,576			1,391			1,371			390
Balance, end of period	$	150,011		$	147,083		$	144,659		$	140,050		$	136,421
Net charge-offs to average loans- annualized	0.08		%	0.07		%	0.04		%	0.04		%	0.01		%
Allowance for credit losses to gross loans	0.90		%	0.91		%	0.93		%	0.93		%	0.94		%
Allowance for credit losses to gross organic loans	0.97			0.99			1.02			1.03			1.06
Allowance for credit losses to nonaccrual loans	406.89			432.38			387.86			318.84			248.07
Nonaccrual loans	$	36,868		$	34,017		$	37,297		$	43,925		$	54,994
Nonaccrual loans to gross loans	0.22		%	0.21		%	0.24		%	0.29		%	0.38		%
Repossessed assets	$	20,028		$	27,541		$	30,194		$	28,540		$	28,973
Nonaccrual loans and repossessed assets to total assets	0.26		%	0.29		%	0.33		%	0.36		%	0.42		%
Loans past due 90 days, still accruing	$	—		$	—		$	37		$	43		$	44
Loans past due 90 days and still accruing to gross loans	—		%	—		%	0.00		%	0.00		%	0.00		%
Loans past due 30 to 89 days, still accruing	$	9,360		$	1,545		$	6,479		$	10,142		$	5,179
Loans past due 30 to 89 days, still accruing to gross loans	0.06		%	0.01		%	0.04		%	0.07		%	0.04		%
Special mention loans	$	124,689		$	150,278		$	184,702		$	155,032		$	199,965
Special mention loans to gross loans	0.75		%	0.93		%	1.19		%	1.03		%	1.38		%
Classified loans on accrual	$	176,727		$	156,659		$	126,538		$	127,681		$	122,264
Classified loans on accrual to gross loans	1.06		%	0.97		%	0.81		%	0.85		%	0.84		%
Classified assets	$	252,770		$	240,063		$	213,482		$	222,004		$	221,803
Classified assets to total assets	1.14		%	1.12		%	1.03		%	1.09		%	1.11		%

12

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Three Months Ended
	September 30, 2018							June 30, 2018
	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 and industrial	$	7,171.1		$	100,312	5.77	%	$	6,902.5		$	94,243	5.64	%
CRE - non-owner occupied	4,004.0			59,383		5.95		3,964.2			59,373		6.01
CRE - owner occupied	2,259.1			30,407		5.50		2,242.6			28,698		5.23
Construction and land development	2,023.1			35,959		7.12		1,952.0			33,567		6.89
Residential real estate	656.5			7,800		4.75		433.4			5,414		5.00
Consumer	57.4			848		5.91		52.4			740		5.65
Total loans (1), (2), (3)	16,171.2			234,709		5.90		15,547.1			222,035		5.81
Securities:
Securities - taxable	2,738.6			19,277		2.82		2,802.9			19,274		2.75
Securities - tax-exempt	875.2			7,962		4.55		848.7			8,171		4.81
Total securities (1)	3,613.8			27,239		3.24		3,651.6			27,445		3.23
Cash and other	549.5			3,268		2.38		382.6			2,122		2.22
Total interest earning assets	20,334.5			265,216		5.34		19,581.3			251,602		5.26
Non-interest earning assets
Cash and due from banks	144.0							145.0
Allowance for credit losses	(148.2		)					(145.6		)
Bank owned life insurance	168.8							168.3
Other assets	1,002.5							1,010.7
Total assets	$	21,501.6						$	20,759.7
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,938.2		$	3,256	0.67	%	$	1,824.8		$	2,360	0.52	%
Savings and money market	6,580.3			14,891		0.91		6,126.3			12,324		0.80
Time certificates of deposit	1,863.7			7,119		1.53		1,714.8			5,165		1.20
Total interest-bearing deposits	10,382.2			25,266		0.97		9,665.9			19,849		0.82
Short-term borrowings	28.5			118		1.66		413.2			1,950		1.89
Qualifying debt	359.1			5,794		6.45		362.8			5,695		6.28
Total interest-bearing liabilities	10,769.8			31,178		1.16		10,441.9			27,494		1.05
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	7,910.3							7,612.0
Other liabilities	360.8							354.0
Stockholders’ equity	2,460.7							2,351.8
Total liabilities and stockholders' equity	$	21,501.6						$	20,759.7
Net interest income and margin (4)				$	234,038	4.72	%				$	224,108	4.70	%

(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $6.0 million and $5.9 million for the three months ended September 30, 2018 and June 30, 2018, respectively.

(2) Included in the yield computation are net loan fees of $12.5 million and accretion on acquired loans of $3.3 million for the three months ended September 30, 2018, compared to $11.0 million and $5.1 million for the three months ended June 30, 2018.

(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
	Three Months Ended September 30,
	2018							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 and industrial	$	7,171.1		$	100,312	5.77	%	$	6,330.8		$	80,638	5.48	%
CRE - non-owner occupied	4,004.0			59,383		5.95		3,609.5			54,442		6.06
CRE - owner occupied	2,259.1			30,407		5.50		2,032.7			25,238		5.24
Construction and land development	2,023.1			35,959		7.12		1,633.4			25,898		6.36
Residential real estate	656.5			7,800		4.75		351.5			4,151		4.72
Consumer	57.4			848		5.91		52.1			729		5.59
Total loans (1), (2), (3)	16,171.2			234,709		5.90		14,010.0			191,096		5.68
Securities:
Securities - taxable	2,738.6			19,277		2.82		2,778.4			17,399		2.50
Securities - tax-exempt	875.2			7,962		4.55		657.1			6,185		5.61
Total securities (1)	3,613.8			27,239		3.24		3,435.5			23,584		3.10
Cash and other	549.5			3,268		2.38		845.8			3,156		1.49
Total interest earning assets	20,334.5			265,216		5.34		18,291.3			217,836		5.00
Non-interest earning assets
Cash and due from banks	144.0							132.3
Allowance for credit losses	(148.2		)					(133.6		)
Bank owned life insurance	168.8							166.4
Other assets	1,002.5							930.8
Total assets	$	21,501.6						$	19,387.2
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,938.2		$	3,256	0.67	%	$	1,476.5		$	1,066	0.29	%
Savings and money market	6,580.3			14,891		0.91		6,282.4			7,135		0.45
Time certificates of deposit	1,863.7			7,119		1.53		1,585.7			3,248		0.82
Total interest-bearing deposits	10,382.2			25,266		0.97		9,344.6			11,449		0.49
Short-term borrowings	28.5			118		1.66		31.7			96		1.21
Qualifying debt	359.1			5,794		6.45		375.3			4,708		5.02
Total interest-bearing liabilities	10,769.8			31,178		1.16		9,751.6			16,253		0.67
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	7,910.3							7,174.5
Other liabilities	360.8							336.9
Stockholders’ equity	2,460.7							2,124.2
Total liabilities and stockholders' equity	$	21,501.6						$	19,387.2
Net interest income and margin (4)				$	234,038	4.72	%				$	201,583	4.65	%
Net interest margin, adjusted (5)													4.53	%

(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $6.0 million and $10.8 million for the three months ended September 30, 2018 and 2017, respectively.

(2) Included in the yield computation are net loan fees of $12.5 million and accretion on acquired loans of $3.3 million for the three months ended September 30, 2018, compared to $9.4 million and $7.5 million for the three months ended September 30, 2017.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets.

(5) Prior period net interest margin is adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the tax equivalent adjustment in order to be comparable to the current period.

14

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Nine Months Ended September 30,
	2018							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 and industrial	$	6,887.0		$	280,101	5.60	%	$	6,050.4		$	224,985	5.35	%
CRE - non-owner occupied	3,963.3			175,041		5.90		3,593.9			160,719		5.99
CRE - owner occupied	2,247.9			87,656		5.31		2,016.8			75,895		5.27
Construction and land development	1,922.3			99,146		6.89		1,583.7			72,965		6.16
Residential real estate	505.9			18,494		4.87		315.5			11,125		4.70
Consumer	52.6			2,265		5.74		45.2			1,617		4.77
Total loans (1), (2), (3)	15,579.0			662,703		5.77		13,605.5			547,306		5.58
Securities:
Securities - taxable	2,805.2			57,700		2.74		2,445.8			44,684		2.44
Securities - tax-exempt	853.7			23,605		4.61		630.0			17,643		5.55
Total securities (1)	3,658.9			81,305		3.18		3,075.8			62,327		3.07
Cash and other	453.0			7,507		2.21		745.0			7,421		1.33
Total interest earning assets	19,690.9			751,515		5.21		17,426.3			617,054		4.96
Non-interest earning assets
Cash and due from banks	143.8							138.4
Allowance for credit losses	(145.0		)					(129.8		)
Bank owned life insurance	168.4							165.7
Other assets	1,001.4							917.1
Total assets	$	20,859.5						$	18,517.7
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing transaction accounts	$	1,806.9		$	6,996	0.52	%	$	1,468.2		$	2,858	0.26	%
Savings and money market	6,312.4			36,130		0.76		6,169.8			18,277		0.39
Time certificates of deposit	1,720.5			16,162		1.25		1,549.2			8,371		0.72
Total interest-bearing deposits	9,839.8			59,288		0.80		9,187.2			29,506		0.43
Short-term borrowings	263.2			3,403		1.72		58.8			374		0.85
Qualifying debt	363.6			16,458		6.04		370.8			13,539		4.87
Total interest-bearing liabilities	10,466.6			79,149		1.01		9,616.8			43,419		0.60
Non-interest-bearing liabilities
Non-interest-bearing demand deposits	7,679.1							6,548.4
Other liabilities	351.2							315.3
Stockholders’ equity	2,362.6							2,037.2
Total liabilities and stockholders' equity	$	20,859.5						$	18,517.7
Net interest income and margin (4)				$	672,366	4.67	%				$	573,635	4.63	%
Net interest margin, adjusted (5)													4.51	%

(1) Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $17.7 million and $31.0 million for the nine months ended September 30, 2018 and 2017, respectively.

(2) Included in the yield computation are net loan fees of $33.4 million and accretion on acquired loans of $14.1 million for the nine months ended September 30, 2018, compared to $26.0 million and $21.0 million for the nine months ended September 30, 2017.

(3) Includes non-accrual loans.

(4) Net interest margin is computed by dividing net interest income by total average earning assets.

(5) Prior period net interest margin is adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the tax equivalent adjustment in order to be comparable to the current period.

15

Western Alliance Bancorporation and Subsidiaries
Operating Segment Results
Unaudited
Balance Sheet:				Regional Segments
	Consolidated Company			Arizona			Nevada			Southern California			Northern California
At September 30, 2018:	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	4,334.2		$	2.0		$	8.5		$	2.1		$	1.8
Loans, net of deferred loan fees and costs	16,732.8			3,593.5			1,936.7			2,116.3			1,332.3
Less: allowance for credit losses	(150.0		)	(33.1		)	(18.6		)	(20.2		)	(11.3		)
Total loans	16,582.8			3,560.4			1,918.1			2,096.1			1,321.0
Other assets acquired through foreclosure, net	20.0			1.7			14.1			—			—
Goodwill and other intangible assets, net	299.5			—			23.2			—			155.8
Other assets	939.6			46.3			58.0			15.1			18.8
Total assets	$	22,176.1		$	3,610.4		$	2,021.9		$	2,113.3		$	1,497.4
Liabilities:
Deposits	$	18,908.6		$	5,331.7		$	3,847.3		$	2,550.7		$	1,951.5
Borrowings and qualifying debt	359.1			—			—			—			—
Other liabilities	420.0			13.5			16.3			1.9			12.3
Total liabilities	19,687.7			5,345.2			3,863.6			2,552.6			1,963.8
Allocated equity:	2,488.4			439.8			270.7			242.4			308.7
Total liabilities and stockholders' equity	$	22,176.1		$	5,785.0		$	4,134.3		$	2,795.0		$	2,272.5
Excess funds provided (used)	—			2,174.6			2,112.4			681.7			775.1
No. of offices	47			10			16			9			3
No. of full-time equivalent employees	1,795			120			94			118			122
Income Statement:
Three Months Ended September 30, 2018:	(in thousands)
Net interest income	$	234,038		$	56,701		$	37,933		$	29,572		$	23,825
Provision for (recovery of) credit losses	6,000			(297		)	(38		)	1,467			482
Net interest income after provision for credit losses	228,038			56,998			37,971			28,105			23,343
Non-interest income	4,418			2,230			2,573			931			2,312
Non-interest expense	(113,841		)	(23,231		)	(16,471		)	(14,332		)	(13,207		)
Income (loss) before income taxes	118,615			35,997			24,073			14,704			12,448
Income tax expense (benefit)	7,492			8,999			5,055			4,117			3,486
Net income	$	111,123		$	26,998		$	19,018		$	10,587		$	8,962
Nine Months Ended September 30, 2018:	(in thousands)
Net interest income	$	672,366		$	169,233		$	109,898		$	85,038		$	69,081
Provision for (recovery of) credit losses	17,000			1,655			(2,005		)	1,921			2,043
Net interest income after provision for credit losses	655,366			167,578			111,903			83,117			67,038
Non-interest income	29,505			5,902			8,585			2,898			7,281
Non-interest expense	(314,538		)	(67,154		)	(46,486		)	(42,470		)	(39,139		)
Income (loss) before income taxes	370,333			106,326			74,002			43,545			35,180
Income tax expense (benefit)	53,631			26,644			15,634			12,288			9,938
Net income	$	316,702		$	79,682		$	58,368		$	31,257		$	25,242

16

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 September 30, 2018:	(dollars in millions)
Assets:
Cash, cash equivalents, and investment securities	$	—		$	—		$	—		$	—		$	—		$	4,319.8
Loans, net of deferred loan fees and costs	202.1			1,520.2			1,106.5			1,435.4			3,483.2			6.6
Less: allowance for credit losses	(1.9		)	(14.4		)	(9.9		)	(7.3		)	(33.2		)	(0.1		)
Total loans	200.2			1,505.8			1,096.6			1,428.1			3,450.0			6.5
Other assets acquired through foreclosure, net	—			—			—			—			—			4.2
Goodwill and other intangible assets, net	—			—			120.4			0.1			—			—
Other assets	1.0			19.2			5.4			6.8			23.8			745.2
Total assets	$	201.2		$	1,525.0		$	1,222.4		$	1,435.0		$	3,473.8		$	5,075.7
Liabilities:
Deposits	$	2,523.9		$	—		$	2,319.5		$	—		$	—		$	384.0
Borrowings and qualifying debt	—			—			—			—			—			359.1
Other liabilities	1.7			10.1			0.1			(0.1		)	85.4			278.8
Total liabilities	2,525.6			10.1			2,319.6			(0.1		)	85.4			1,021.9
Allocated equity:	68.5			121.4			256.5			119.1			286.0			375.3
Total liabilities and stockholders' equity	$	2,594.1		$	131.5		$	2,576.1		$	119.0		$	371.4		$	1,397.2
Excess funds provided (used)	2,392.9			(1,393.5		)	1,353.7			(1,316.0		)	(3,102.4		)	(3,678.5		)
No. of offices	1			1			9			1			4			(7		)
No. of full-time equivalent employees	69			11			62			16			52			1,131
Income Statement:
Three Months Ended September 30, 2018:	(in thousands)
Net interest income	$	17,930		$	3,683		$	27,233		$	13,557		$	20,329		$	3,275
Provision for (recovery of) credit losses	103			(553		)	1,448			223			3,214			(49		)
Net interest income after provision for credit losses	17,827			4,236			25,785			13,334			17,115			3,324
Non-interest income	215			159			2,836			—			549			(7,387		)
Non-interest expense	(8,254		)	(2,134		)	(9,933		)	(3,014		)	(7,280		)	(15,985		)
Income (loss) before income taxes	9,788			2,261			18,688			10,320			10,384			(20,048		)
Income tax expense (benefit)	2,251			521			4,298			2,374			2,388			(25,997		)
Net income	$	7,537		$	1,740		$	14,390		$	7,946		$	7,996		$	5,949
Nine Months Ended September 30, 2018:	(in thousands)
Net interest income	$	49,335		$	11,224		$	74,615		$	41,617		$	58,813		$	3,512
Provision for (recovery of) credit losses	285			(786		)	5,355			2,006			6,573			(47		)
Net interest income after provision for credit losses	49,050			12,010			69,260			39,611			52,240			3,559
Non-interest income	543			158			9,518			13			1,182			(6,575		)
Non-interest expense	(24,090		)	(6,386		)	(29,666		)	(7,419		)	(19,193		)	(32,535		)
Income (loss) before income taxes	25,503			5,782			49,112			32,205			34,229			(35,551		)
Income tax expense (benefit)	5,866			1,329			11,296			7,407			7,873			(44,644		)
Net income	$	19,637		$	4,453		$	37,816		$	24,798		$	26,356		$	9,093

17

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	$	4,237.1		$	2.1		$	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	808.9			46.3			58.8			14.4			15.1
Total assets	$	20,329.1		$	3,342.9		$	1,930.2		$	1,931.7		$	1,435.8
Liabilities:
Deposits	$	16,972.5		$	4,841.3		$	3,951.4		$	2,461.1		$	1,681.7
Borrowings and qualifying debt	766.9			—			—			—			—
Other liabilities	360.0			11.6			20.9			3.2			11.9
Total liabilities	18,099.4			4,852.9			3,972.3			2,464.3			1,693.6
Allocated equity:	2,229.7			396.5			263.7			221.8			303.1
Total liabilities and stockholders' equity	$	20,329.1		$	5,249.4		$	4,236.0		$	2,686.1		$	1,996.7
Excess funds provided (used)	—			1,906.5			2,305.8			754.4			560.9
No. of offices	47			10			16			9			3
No. of full-time equivalent employees	1,725			110			91			111			123
Income Statements:
Three Months Ended September 30, 2017:	(in thousands)
Net interest income (expense)	$	201,583		$	52,637		$	36,310		$	26,811		$	21,932
Provision for (recovery of) credit losses	5,000			(289		)	(2,044		)	(58		)	3,144
Net interest income (expense) after provision for credit losses	196,583			52,926			38,354			26,869			18,788
Non-interest income	10,456			1,265			2,354			971			1,796
Non-interest expense	(89,296		)	(18,844		)	(14,748		)	(12,340		)	(11,317		)
Income (loss) before income taxes	117,743			35,347			25,960			15,500			9,267
Income tax expense (benefit)	34,899			13,857			9,086			6,517			3,897
Net income	$	82,844		$	21,490		$	16,874		$	8,983		$	5,370
Nine Months Ended September 30, 2017:	(in thousands)
Net interest income (expense)	$	573,635		$	145,839		$	108,028		$	81,087		$	63,686
Provision for (recovery of) credit losses	12,250			109			(5,378		)	(20		)	4,238
Net interest income (expense) after provision for credit losses	561,385			145,730			113,406			81,107			59,448
Non-interest income	31,656			3,567			6,800			2,602			5,839
Non-interest expense	(265,543		)	(55,388		)	(45,733		)	(38,063		)	(36,188		)
Income (loss) before income taxes	327,498			93,909			74,473			45,646			29,099
Income tax expense (benefit)	91,352			36,831			26,066			19,194			12,236
Net income	$	236,146		$	57,078		$	48,407		$	26,452		$	16,863

18

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			262.1
Total liabilities	2,231.6			42.4			1,738.4			0.4			5.5			1,098.0
Allocated equity:	59.4			126.5			244.1			108.3			206.0			300.3
Total liabilities and stockholders' equity	$	2,291.0		$	168.9		$	1,982.5		$	108.7		$	211.5		$	1,398.3
Excess funds provided (used)	2,129.6			(1,413.8		)	769.1			(1,221.0		)	(2,322.0		)	(3,469.5		)
No. of offices	1			1			9			1			4			(7		)
No. of full-time equivalent employees	65			10			62			12			38			1,103
Income Statement:
Three Months Ended September 30, 2017:	(in thousands)
Net interest income (expense)	$	13,746		$	7,269		$	20,415		$	15,346		$	16,933		$	(9,816	)
Provision for (recovery of) credit losses	40			91			(83		)	1,116			4,416			(1,333		)
Net interest income (expense) after provision for credit losses	13,706			7,178			20,498			14,230			12,517			(8,483		)
Non-interest income	136			183			1,855			—			379			1,517
Non-interest expense	(7,011		)	(2,053		)	(8,824		)	(1,905		)	(5,286		)	(6,968		)
Income (loss) before income taxes	6,831			5,308			13,529			12,325			7,610			(13,934		)
Income tax expense (benefit)	2,562			1,028			5,075			4,622			2,853			(14,598		)
Net income	$	4,269		$	4,280		$	8,454		$	7,703		$	4,757		$	664
Nine Months Ended September 30, 2017:	(in thousands)
Net interest income (expense)	$	40,275		$	21,242		$	59,610		$	42,337		$	46,380		$	(34,849	)
Provision for (recovery of) credit losses	332			796			816			2,924			10,265			(1,832		)
Net interest income (expense) after provision for credit losses	39,943			20,446			58,794			39,413			36,115			(33,017		)
Non-interest income	417			415			5,689			—			1,632			4,695
Non-interest expense	(21,416		)	(6,522		)	(26,685		)	(7,949		)	(14,573		)	(13,026		)
Income (loss) before income taxes	18,944			14,339			37,798			31,464			23,174			(41,348		)
Income tax expense (benefit)	7,104			4,424			14,175			11,799			8,690			(49,167		)
Net income	$	11,840		$	9,915		$	23,623		$	19,665		$	14,484		$	7,819

19

Western Alliance Bancorporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures
Unaudited
Operating Pre-Provision Net Revenue by Quarter:
	Three Months Ended
	Sept 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017
	(in thousands)
Total non-interest income	$	4,418		$	13,444		$	11,643		$	13,688		$	10,456
Less:
(Losses) gains on sales of investment securities, net	(7,232		)	—			—			1,436			319
Unrealized (losses) gains on assets measured at fair value, net	(1,212		)	(685		)	(1,074		)	—			—
Total operating non-interest income	12,862			14,129			12,717			12,252			10,137
Plus: net interest income	234,038			224,108			214,220			211,029			201,583
Net operating revenue (1)	$	246,900		$	238,237		$	226,937		$	223,281		$	211,720
Total non-interest expense	$	113,841		$	102,548		$	98,149		$	95,398		$	89,296
Less:
Advance funding to charitable foundation	7,645			—			—			—			—
401(k) plan change and other miscellaneous items	1,218			—			—			—			—
Net (gain) loss on sales and valuations of repossessed and other assets	(67		)	(179		)	(1,228		)	(34		)	266
Total operating non-interest expense (1)	$	105,045		$	102,727		$	99,377		$	95,432		$	89,030
Operating pre-provision net revenue (2)	$	141,855		$	135,510		$	127,560		$	127,849		$	122,690
Plus:
Non-operating revenue adjustments	(8,444		)	(685		)	(1,074		)	1,436			319
Less:
Provision for credit losses	6,000			5,000			6,000			5,000			5,000
Non-operating expense adjustments	8,796			(179		)	(1,228		)	(34		)	266
Income tax expense	7,492			25,325			20,814			34,973			34,899
Net income	$	111,123		$	104,679		$	100,900		$	89,346		$	82,844

Operating Efficiency Ratio by Quarter:
	Three Months Ended
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017
	(in thousands)
Total operating non-interest expense	$	105,045		$	102,727		$	99,377		$	95,432		$	89,030
Divided by:
Total net interest income	234,038			224,108			214,220			211,029			201,583
Plus:
Tax equivalent interest adjustment	6,003			5,939			5,727			11,023			10,837
Operating non-interest income	12,862			14,129			12,717			12,252			10,137
	$	252,903		$	244,176		$	232,664		$	234,304		$	222,557
Operating efficiency ratio - tax equivalent basis (3)	41.5		%	42.1		%	42.7		%	40.7		%	40.0		%
Operating efficiency ratio - adjusted *										41.7		%	41.0		%

^{(1), (2), (3)}  See Non-GAAP Financial Measures footnotes on page 23.

* The prior period 2017 operating efficiency ratios are adjusted to include the effects from the TCJA of the lower statutory corporate federal tax rate on the calculation of the tax equivalent adjustment in order to be comparable to the current reporting periods.

20

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Tangible Common Equity:
	Sep 30, 2018			Jun 30, 2018			Mar 31, 2018			Dec 31, 2017			Sep 30, 2017
	(dollars and shares in thousands)
Total stockholders' equity	$	2,488,393		$	2,391,684		$	2,293,763		$	2,229,698		$	2,145,627
Less: goodwill and intangible assets	299,553			299,951			300,350			300,748			301,157
Total tangible common equity	2,188,840			2,091,733			1,993,413			1,928,950			1,844,470
Plus: deferred tax - attributed to intangible assets	2,462			2,555			2,773			2,698			4,341
Total tangible common equity, net of tax	$	2,191,302		$	2,094,288		$	1,996,186		$	1,931,648		$	1,848,811
Total assets	$	22,176,147		$	21,367,452		$	20,760,731		$	20,329,085		$	19,922,221
Less: goodwill and intangible assets, net	299,553			299,951			300,350			300,748			301,157
Tangible assets	21,876,594			21,067,501			20,460,381			20,028,337			19,621,064
Plus: deferred tax - attributed to intangible assets	2,462			2,555			2,773			2,698			4,341
Total tangible assets, net of tax	$	21,879,056		$	21,070,056		$	20,463,154		$	20,031,035		$	19,625,405
Tangible common equity ratio (4)	10.0		%	9.9		%	9.8		%	9.6		%	9.4		%
Common shares outstanding	105,865			105,876			105,861			105,487			105,493
Tangible book value per share, net of tax (5)	$	20.70		$	19.78		$	18.86		$	18.31		$	17.53
(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:

	Sept 30, 2018			Dec 31, 2017
	(in thousands)
Common Equity Tier 1:
Common equity	$	2,488,393		$	2,229,698
Less:
Non-qualifying goodwill and intangibles	296,980			296,421
Disallowed deferred tax asset	984			638
AOCI related adjustments	(78,289		)	(9,496		)
Unrealized gain on changes in fair value liabilities	11,872			7,785
Common equity Tier 1 (6) (9)	$	2,256,846		$	1,934,350
Divided by: estimated risk-weighted assets (7) (9)	$	20,690,767		$	18,569,608
Common equity Tier 1 ratio (7) (9)	10.9		%	10.4		%
Common equity Tier 1 (6)(9)	2,256,846			1,934,350
Plus:
Trust preferred securities	81,500			81,500
Less:
Disallowed deferred tax asset	—			159
Unrealized gain on changes in fair value of liabilities	—			1,947
Tier 1 capital (7) (9)	$	2,338,346		$	2,013,744
Divided by: Tangible average assets	$	21,286,259		$	19,624,517
Tier 1 leverage ratio	11.0		%	10.3		%
Total Capital:
Tier 1 capital (6) (9)	$	2,338,346		$	2,013,744
Plus:
Subordinated debt	299,151			301,020
Qualifying allowance for credit losses	150,011			140,050
Other	7,617			6,174
Less: Tier 2 qualifying capital deductions	—			—
Tier 2 capital	$	456,779		$	447,244
Total capital	$	2,795,125		$	2,460,988
Total capital ratio	13.5		%	13.3		%
Classified assets to Tier 1 capital plus allowance for credit losses:
Classified assets	$	252,770		$	222,004
Divided by:
Tier 1 capital (7) (9)	2,338,346			2,013,744
Plus: Allowance for credit losses	150,011			140,050
Total Tier 1 capital plus allowance for credit losses	$	2,488,357		$	2,153,794
Classified assets to Tier 1 capital plus allowance (8) (9)	10.2		%	10.3		%
(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 a useful metric to measure the operating efficiency of the Company.
(4)	We believe this non-GAAP ratio provides an important metric with which to analyze and evaluate financial condition and capital strength.
(5)	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.
(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 3rd QUARTER 2018 October 19, 2018

3rd Quarter 2018 | Financial Highlights • Net income of $111.1 million ($1.05 per share), compared to $104.7 million ($0.99 per share) for Q2 2018, and $82.8 million ($0.79 per share) for Q3 2017 • Effective tax rate of 6.32%, compared to 19.48% for Q2 2018, as management re-assessed its tax planning strategies and made a carryback election • Net interest margin of 4.72%, compared to 4.70% in Q2 2018, and 4.65% in Q3 2017 • Operating efficiency ratio of 41.5%, compared to 42.1% in Q2 2018, and 40.0% in Q3 2017 • Total loans of $16.73 billion, up $595 million from prior quarter and total deposits of $18.91 billion, up $821 million from prior quarter • Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.26%, compared to 0.29% at June 30, 2018, and 0.42% at September 30, 2017 • Net loan charge-offs to average loans outstanding of 0.08%, compared to 0.07% in Q2 2018, and 0.01% in Q3 2017 • Tangible common equity ratio of 10.0% and tangible book value per share, net of tax, of $20.70, compared to 9.9% and $19.78, respectively, at June 30, 2018 2 2

Adjusted Consolidated Financial Results $ in millions, except EPS Q3-18 Non-GAAP Non-recurring and non-operating items As Reported Adjustments As Adjusted during the quarter include the following: Net Interest Income $ 234.0 $ — $ 234.0 (1) Changes related to the Company's Operating Non-Interest Income 12.9 — 12.9 401(k) plan and miscellaneous items (2) Advance contribution to the Net Operating Revenue $ 246.9 $ — $ 246.9 Company's Charitable Foundation Salaries and Employee Benefits (1) (64.8) 1.2 (63.6) (3) Mark-to-market changes on equity Charitable Contributions (2) (8.5) 7.6 (0.9) securities Other Operating Non-Interest Expenses (40.5) — (40.5) (4) Sales of lower yielding fixed income Operating Pre-Provision Net Revenue $ 133.1 $ 8.8 $ 141.9 securities (5) Impact of carryback election Provision for Credit Losses (6.0) — (6.0) Gains on OREO and Other Assets 0.1 — 0.1 Fair Market Value Adjustments (3) (1.2) 1.2 — Investment (Loss) on Sale (4) (7.2) 7.2 — Pre-tax Income $ 118.6 $ 17.2 $ 136.0 Income Tax (5) (7.5) (18.5) (26.0) Net Income $ 111.1 $ (1.3) $ 110.0 Diluted Shares 105.4 — 105.4 Earnings Per Share $ 1.05 $ (0.01) $ 1.04 3 3

Quarterly Consolidated Financial Results $ in millions, except EPS Q3-18 Q3 2018 Highlights As Adjusted Q2-18 Q3-17 • Net Interest Income increased Net Interest Income $ 234.0 $ 224.1 $ 201.6 $9.9 million as a result of loan Operating Non-Interest Income 12.9 14.1 10.1 growth, partially offset by higher Net Operating Revenue $ 246.9 $ 238.2 $ 211.7 rates on deposits and interest Operating Non-Interest Expense (105.0) (102.7) (89.0) expense on borrowings Operating Pre-Provision Net Revenue $ 141.9 $ 135.5 $ 122.7 • Operating Non-Interest Expense Provision for Credit Losses (6.0) (5.0) (5.0) increased $2.3 million primarily Gains on OREO and Other Assets 0.1 0.2 (0.3) from incentive compensation Fair Market Value Adjustments — (0.7) — costs Investment (Loss) Gain on Sale — — 0.3 Pre-tax Income $ 136.0 $ 130.0 $ 117.7 Income Tax (26.0) (25.3) (34.9) Net Income $ 110.0 $ 104.7 $ 82.8 Diluted Shares 105.4 105.4 104.9 Earnings Per Share $ 1.04 $ 0.99 $ 0.79 4 4

Net Interest Drivers $ in billions, unless otherwise indicated Total Investments and Yield Loans and Yield Q3 2018 Highlights • Loan yield increased 9 basis 5.90% 5.81% points due to rising interest rates 5.68% 5.72% 5.59% across most loan types © 3.23% 3.24% 5.62% • Cost of interest-bearing deposits 3.10% 3.15% 3.07% 5.57% increased 15 basis points due to © higher rates across all interest- 2.92% 2.97% $16.7 $14.5 $15.1 $15.6 $16.1 bearing deposit types $3.8 $3.8 $3.7 $3.7 $3.6 • Cost of funds for total deposits and borrowings increased 6 basis points to 0.67% Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 © Adjusted yield includes the effects of the decrease in the tax equivalent adjustment ("TEA") from the Tax Cuts and Jobs Act ("TCJA") Interest Bearing Deposits and Deposits, Borrowings, and Cost of Funds Cost of Liability Funding 0.61% 0.67% 0.38% 0.40% 0.46% $0.4 Investments $0.8 $0.7 $0.5 0.82% 0.97% $0.4 0.53% 0.60% Loans 0.49% $8.0 $7.6 $7.4 $7.5 $7.9 Interest Bearing Deposits Non-Interest Bearing Deposits $9.3 $9.5 $9.9 $10.1 $10.9 $9.3 $9.5 $9.9 $10.1 $10.9 Total Borrowings Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 5 5

Net Interest Income and Accretion $ in millions Net Interest Income, NIM, and Q3 2018 Highlights Average Interest Earnings Assets • NIM increased 2 basis points to 4.72% quarter-over-quarter $234.0 due to favorable impacts of rising short-term interest rates $214.2 $224.1 for securities and loans, partially offset by higher rates on $201.6 $211.0 deposit accounts 4.73% 4.72% 4.65% 4.60% 4.70% © 4.53% 4.61% $18,291 $18,792 $19,144 $19,581 $20,335 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 NIM Net Interest Income Avg Interest Earning Assets © Adjusted NIM includes the effects of the decrease in the TEA from the TCJA Acquired Loan Accretion Scheduled Acquisition Loan Accretion * $3.2 $2.7 $1.5 $0.9 $3.0 $0.2 $0.2 $0.2 $0.2 $4.3 $4.4 $4.2 $2.1 $2.4 $1.9 $1.9 $1.8 $1.7 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 PCI Accretion PCI Rate Accretion Non-PCI Accretion Non-PCI Rate and Credit Accretion 6 Ending rate and credit marks on all acquired loans at 9/30/2018 is $25.9 million * Amounts do not include early loan payoffs 6

Operating Expenses and Efficiency $ in millions Operating Expenses and Efficiency Ratio Q3 2018 Highlights • The operating efficiency ratio decreased from 42.1% in © 42.7% 42.1% 41.0% 41.7% 41.5% Q2 2018 to 41.5% as revenue growth outpaced expense growth 40.0% 40.7% • Operating expenses increased from the prior quarter primarily due to increased incentive compensation costs $89.0 $95.4 $99.4 $102.7 $105.0 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Efficiency Ratio Operating Expenses © Adjusted Efficiency Ratio includes the effects of the decrease in the TEA from the TCJA Breakdown of Operating Expenses Other $16.1 $16.5 $16.0 $15.3 Professional Fees + Data Processing $14.7 $13.5 $13.8 Occupancy + Insurance $11.6 $11.2 $10.6 $10.7 $11.3 $11.1 Compensation $11.0 $10.2 $63.6 $52.7 $57.7 $62.1 $61.8 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 7 7 7

Operating Pre-Provision Net Revenue, Net Income, and ROA $ in millions Operating Pre-Provision Net Revenue and Operating PPNR ROA Net Income and ROA 2.64% 2.57% 2.61% 2.53% 2.51% 2.07% 1.99% 2.02% 1.79% 1.71% $141.9 $135.5 $122.7 $127.8 $127.6 $111.1 $100.9 $104.7 $89.3 $82.8 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 8 8

Consolidated Balance Sheet $ in millions Q3-18 Q2-18 Q3-17 Q3 2018 Highlights Investments & Cash $ 4,334 $ 4,196 $ 4,424 • Loans increased $595 million Loans 16,733 16,138 14,522 (3.7%) over prior quarter and $2.21 billion (15.2%) over prior year Allowance for Credit Losses (150) (147) (136) • Deposits increased $821 million Other Assets 1,259 1,180 1,112 (4.5%) over prior quarter and $2.00 Total Assets $ 22,176 $ 21,367 $ 19,922 billion (11.9%) over prior year • Shareholders' Equity increased Deposits $ 18,909 $ 18,088 $ 16,905 $97 million over prior quarter and Borrowings 380 454 399 $343 million over prior year as a Other Liabilities 399 434 472 function of Net Income • Tangible Book Value/Share Total Liabilities $ 19,688 $ 18,976 $ 17,776 increased $0.92 over prior quarter Shareholders' Equity 2,488 2,391 2,146 and $3.17 (18.1%) over prior year Total Liabilities and Equity $ 22,176 $ 21,367 $ 19,922 Tangible Book Value Per Share $ 20.70 $ 19.78 $ 17.53 9 9

5 Quarter Loan Growth and Portfolio Composition $ in millions $2.21 Billion Year Over Year Growth Highlights $14,522 $15,094 $15,560 $16,138 $16,733 Quarter-over-quarter loan growth +532 +572 +466 +578 +595 driven by (in millions): Residential & Consumer $ 296 $896 5.4% C&I 209 $600 $469 Construction & Land 129 $475 $428 2.9% $1,978 $2,108 12.6% $1,632 $1,957 Year-over-year loan growth across all Residential & $1,666 11.5% loan types (in millions): Consumer C&I $ 750 $4,011 $3,953 23.6% $3,904 $3,925 Residential & Consumer 468 Construction & $3,628 25.0% Land Construction & Land 441 $2,288 13.7% CRE, Non-OO 325 CRE, Non-Owner $2,271 $2,062 14.2% $2,242 $2,265 CRE, OO 226 Occupied CRE, Owner Occupied $7,488 44.7% $6,738 46.4% $6,841 $6,944 $7,278 Commercial & Industrial Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 10 10

5 Quarter Deposit Growth and Composition $ in millions $2.00 Billion Year Over Year Growth Highlights $16,905 $16,973 $17,355 $18,088 $18,909 Quarter-over-quarter deposit growth +874 +68 +382 +733 +821 driven by (in millions): Savings and MMDA $ 590 $1,857 9.8% Interest Bearing DDA 114 $1,806 $1,590 9.4% $1,622 $1,762 CDs Year-over-year deposit growth across all deposit types (in millions): Savings and $7,059 Savings and MMDA $ 759 $6,469 37.3% MMDA Interest-Bearing DDA 572 $6,300 37.3% $6,331 $6,315 Non-Interest Bearing DDA 406 Interest Bearing CDs 267 DDA $1,865 $1,978 10.5% $1,776 Non-Interest $1,406 8.3% $1,586 Bearing DDA $7,609 45.0% $7,434 $7,502 $7,948 $8,015 42.4% Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 11 11

Adversely Graded Loans and Non-Performing Assets * $ in millions $406 $379 $368 $355 $358 $200 $150 $124 $155 $185 Adversely Graded 2.12% Loans 1.85% 1.92% 1.83% 1.70% $122 $177 $128 $127 $156 $55 $44 0.42% 0.36% 0.33% NPAs $37 $34 $37 0.29% 0.26% $29 $28 $30 $28 $20 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Special Mention Loans Non-Performing Loans Adversely Graded Assets to Total Assets Classified Accruing Loans OREO NPAs to Total Assets Accruing TDRs total $42.6 million as of 9/30/2018 * Amounts are net of total PCI credit and interest rate discounts of $8.3 million as of 9/30/2018 12 12

Charge-Offs, Recoveries, ALLL, and Provision $ in millions Gross Charge-Offs, Recoveries and Rate ALLL and ALLL to Organic Loans Ratio $145 $147 $150 $136 $140 $4.8 $3.2 $2.3 $3.6 $3.9 1.06% 1.03% 1.02% $(2.8) $(2.2) 0.99% 0.97% $(0.9) $(1.3) $(1.7) Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Gross Charge-Offs Recoveries ALLL ALLL/Total Organic Loans Provision for Credit Losses Credit Discounts and CD to Acquired Loans Ratio $32.8 $27.0 $23.1 $6.0 $6.0 $19.7 $5.0 $5.0 $5.0 2.02% $17.2 1.86% 1.73% 1.50% 1.40% Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Provision for Credit Losses Credit Discounts CD/Acquired Loans 13 13

Capital Capital Ratios ROTCE and TBV/Share 20.5% 20.4% 20.6% 13.5% 13.3% 13.3% 13.4% 18.8% 13.2% 18.2% 11.0% 10.8% 10.5% $20.70 10.4% 10.4% 10.9% 10.7% $19.78 10.5% $18.86 10.1% 10.3% $18.31 10.0% $17.53 9.8% 9.9% 9.6% 9.4% Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Total Capital Common Equity Tier 1 TBV/Share ROTCE Tier 1 Leverage Tangible Common Equity 14 14

Management Outlook • Financial Position • Margin • Operating Leverage • Asset Quality 15 15

Questions and Answers 16

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 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, 2017 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. This presentation 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 the Company's press release as of and for the quarter ended September 30, 2018. 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. 17 17 17