2021

Annual Report

Succeeding Today, Innovating for the Future

Letter from President and Chief Executive Officer,

Kenneth A. Vecchione

Dear Fellow Shareholders,

For Western Alliance Bank, 2021 was a watershed year. We broke many of our own records for balance sheet growth, total net revenue and earnings, while thoughtfully expanding into new business lines, technologies and geographies that will make us an even stronger, more diversified bank.

For the year, total assets ended just shy of $56 billion, with loans growing 44% year over year to $39.1 billion and deposits rising 49% to $47.6 billion. This strong balance sheet momentum propelled record net revenues of $2.0 billion, net income of $899 million, and earnings per share (EPS) of $8.67 - a 72% increase over EPS for 2020.

EXECUTIVE PERSPECTIVES

Conservative Approach to Credit Management

Western Alliance Bank prioritizes a conservative credit culture - and building close ties with our customers - to guide our growth. We approach credit management with teams of specialists, not generalists, whether within our geographically managed banking brands or any of our national businesses.

Importantly, we believe that sound portfolio management is as essential as prudent underwriting. We make a practice of proactively meeting with our customers about their needs and their opportunities. As a result of our holistic relationship approach, the ratio of classified assets to total assets is at a historic low, which is as good a measure as there is to gauge our success.

At Western Alliance, we are proud to be among the industry's most disciplined underwriters without having to compromise our robust growth. You've seen it in our results.

Tim R. Bruckner

Chief Credit Officer

12 Consecutive Years of Rising Earnings

Western Alliance's success over many years - in fact, 2021 marks our twelfth consecutive year of rising earnings - stems from working to support our clients as a trusted advisor and banking partner, however and wherever they do business nationwide.

When a bank can solve problems, streamline pathways to growth and create noticeable efficiencies, clients tell us we're an important factor in their own success. To be “client-obsessed” might sound like an overstatement, but it's the core of what we do.

Our results, for our clients and our shareholders, continue to demonstrate the unique benefits of Western Alliance's national commercial business strategy. This targeted and flexible set of national capabilities positions our company as one of the country's premier commercial banks that consistently generates leading balance sheet and earnings growth with superior asset quality across economic cycles.

One of the hallmarks of our national commercial business strategy is the ability to develop focused, specialty banking business lines and attract qualified, entrepreneurial talent to thoughtfully add scale with superior risk-adjusted returns.

Within a year of excellent lending performance, loan demand continued to broaden in Q4 across our business lines, with C&I loans, residential and CRE making significant contributions. In terms of deposits, the bank continued in 2021 to post broad-based core deposit growth across our business channels, with key drivers ranging from active fundraising among tech and innovation clients and strength in our homeowner association business to expanded relationships in warehouse lending and throughout our regional businesses. As a result of strong core loan and deposit growth, net interest income grew $382 million during the year to $1.5 billion, an increase of 33% year over year.

EXECUTIVE PERSPECTIVES

Embracing Blockchain

Now is the right time for Western Alliance Bank to fully embrace blockchain and the many opportunities this important technology offers clients and the bank. We believe blockchain is essential to the future, and forward-thinking businesses either adapt and adopt or miss the chance to lead.

Ahead of much of the industry, this spring we are launching a blockchain-based digital payments platform to enable 24/7/365 e-transfers for our customers.1 Through this efficient technology, clients can make real-time digital payments that tokenize their U.S. dollar deposits.^{2 3}

We know well that our business clients value speed and responsiveness, which this next-level platform delivers. Imagine being able to make a digital payment on a Friday evening that puts your goods on the truck Saturday morning. We are excited about the many benefits clients in all kinds of industries will realize when they incorporate blockchain-based banking solutions.

Strategically, this new focus is not only a fit with our national commercial bank approach and customers across the economy, but these new digital capabilities position us well to also serve the innovators in digital assets and fintech markets. Certainly, blockchain and digital assets are a real and growing part of financial services, and our new initiative opens the door to significant deposit growth and other revenue-generating possibilities for the bank.

Dale M. Gibbons

Vice Chairman, Chief Financial Officer

At this time, transfers are available only between Western Alliance commercial customers who are enrolled to use the platform. Subject to Bank approval. Settlement of payments may be periodically affected and/or delayed due to system outages or maintenance windows.
Neither TassatPay® wallets nor Western Alliance Transfer Tokens are “deposits”, as defined in the Federal Deposit Insurance Act (12 U.S.C. §1811, et seq.), and are not insured by the FDIC or any federal government agency.
Refer to the disclosures provided at account opening, including but not limited to the Deposit Account Agreement and Disclosure, the Privacy Policy and the Schedule of Fees and Charges (collectively, “Account Agreements”) for additional information regarding your deposit accounts at Western Alliance Bank. Transaction limits may apply. Refer to the Treasury Management Services Agreement and the Account Agreements for applicable terms and conditions.

One of the Most Profitable Banks in the Industry

In every environment, Western Alliance's branch-lite, flexible business model provides us a competitive advantage to leverage operating efficiencies to enhance financial performance, while investing in business initiatives to power future growth. For example, in 2021, we produced an efficiency ratio of 41.8%, an impressive trend that has persisted over the last five years. To put this in perspective, over the last five years, total loans and deposits have grown 2.5 times the rate of operating expense, excluding AmeriHome. Consistent productivity improvements across our operations provide us with the capability to absorb higher labor costs while continuing to fund critical product and technology investments.

Our organization's longstanding focus on credit quality continues to deliver results. For the last several years, Western Alliance has been able to de-risk the balance sheet while posting exceptional growth. We concluded 2021 with special mention loans and classified assets at or below 2019 ratios

The acquisition of AmeriHome Mortgage Company in April 2021 extended our national commercial bank strategy with a correspondent mortgage platform that has enhanced growth, returns and diversification. The combination with our existing commercial bank franchise creates numerous opportunities to unlock value throughout economic and rate cycles as a more broad-based, diversified financial institution. Through low-cost deposits and attractive commercial loans, we are able to drive meaningful net interest income and tangible book value accretion.

I'm pleased to report Western Alliance is one of the most profitable banks in the industry, with return on average assets and return on average tangible common equity of 1.83% and 26.2%, respectively, which will continue to support capital accumulation and strong capital levels.

EXECUTIVE PERSPECTIVES

Technology that 'Just Works'

Forward-leaning digital tools are an essential facet of good banking today - but that's just what they are, tools. The real measure of successful technology is the client experience. As we launch our new blockchain payments platform in 2022, our focus is on engaging our customers and expanding their options. These new, always-on capabilities are the foundation for advanced treasury management offerings and other important solutions that help us do more for clients.

All of this supports Western Alliance's key differentiator - relationship banking. Our customers want digital banking capabilities with the power to blend into the background and "just work." This puts the emphasis on the advisory aspects of our relationships with business clients across the economy and across the country. My own background as a lender tells me our approach is the right one. For us, integrating new technologies is about facilitating seamless connections with our customers that help them move toward their goals.

Tim Booth

Chief Operating Officer

Innovating for the Future

Importantly, in 2021 Western Alliance planted a flag in the growing blockchain-based digital payments arena, working with TassatPay®4, a digital blockchain payment platform, to facilitate real-time B2B payments for customers. The platform will enable clients to make instant payments 24/7/365 with a range of other benefits, including added simplicity.5 As we move quickly to be among the leaders in banking digitization, we envision blockchain-based digital payments and related, innovative solutions will be valuable offerings for our business.

Rolling out successful new businesses and making targeted technology investments, while keeping clients at the center of everything we do, depend on strong leaders at every level of the company.

Our executives have deep roots and expertise in their disciplines, which allow them to move quickly and effectively to maximize opportunities and create competitive advantage. As well, attracting seasoned, senior teams to Western Alliance helps us establish new business lines that ramp up rapidly due to their existing client relationships.

TassatPay® is owned and operated by Tassat Group, Inc. TassatPay® and Tassat® are registered trademarks of Tassat Group, Inc.
At this time, transfers are available only between Western Alliance commercial customers who are enrolled to use the platform. Subject to Bank approval. Settlement of payments may be periodically affected and/or delayed due to system outages or maintenance window.

EXECUTIVE PERSPECTIVES

Our People-First Culture

This report is all about performance - and at Western Alliance Bank, our performance starts with our people and their resounding entrepreneurial spirit. Sustaining an environment where individuals are empowered to do the right thing for clients and for their teams makes a big difference in terms of satisfaction. It's clear that maximizing employee engagement is integral to a vibrant workplace and to reaching our benchmarks.

Now more than ever, we're acting on the powerful idea that people want more than just strong salaries and financial incentives, important as these are. We work to deliver opportunities for people to collaborate, contribute and build meaningful careers here. Our position as a top-performing and growing bank makes Western Alliance a place for possibilities.

Barbara Kennedy

Chief Human Resources Officer

Reliability that Leads to Trust

Behind our company's ongoing record of accomplishment is the simple idea that, at Western Alliance, we think differently. We act differently. We are a nationwide commercial bank that prizes our true connection with customers and our bankers are empowered to make decisions quickly. We do what we say we are going to do, and this reliability leads to credibility and trust. And this is something we never take for granted.

After another year of tremendous demands on people, personally and professionally, I want to sincerely thank the outstanding people of Western Alliance Bank, whose unrelenting dedication to customers makes our shared success happen. What links everything for us is our culture - People, Performance, Possibilities. This is the backbone of our business and gives us structure and resilience from year to year.

EXECUTIVE PERSPECTIVES

Banking on Expertise

Expertise shapes our competitive edge in a growing number of industries where Western Alliance operates national banking businesses. Our knowledge of key individual sectors allows us to develop profitable, industry-leading solutions that perform for clients.

Paired with high-touch service, this expertise makes us trusted resources in a wide variety of segments. In the businesses that I lead, this includes municipalities that look to us for smart public finance capabilities, mortgage companies and brokers seeking sophisticated warehouse lending solutions, and a tailored banking brand for the expanding homeowner association and community management industry, Alliance Association Bank.

In other parts of our organization, two notable national banking businesses - Business Escrow Services and Settlement Services - both deposit-focused, also made sizable contributions to our balance sheet in 2021. A resource for M&A attorneys, private equity firms and strategic acquirers nationwide, Business Escrow Services has built sophisticated offerings for the legal sector. Western Alliance recently acquired Digital Disbursements, a leading digital payments platform for the class action legal industry, to heighten capabilities for our productive Settlement Services group.

Stephen R. Curley

Division President, Alliance Association Bank & Other Lending Divisions

Board Refreshment and Succession Planning

I also want to thank our Board of Directors for their helpful guidance and active support during this eventful year. In particular, I'd like to acknowledge and thank our departing directors for their years of service and contributions to our company: Robert Sarver and Steve Hilton. Robert's dynamic leadership as the company's former Chief Executive Officer (2002-2018) was a catalyst for much of Western Alliance's industry-leading growth and strong financial performance over the past two decades. In navigating some of the most challenging economic conditions, including the Great Recession, Robert's stewardship allowed the company to support tens of thousands of customers who rely on the bank and our people every day. We will miss Robert's keen insights and decades of experience and we are deeply thankful for his service. Steve's many contributions to our Board included, among other things, valuable real estate insights that helped grow our company in the region and across the United States. We wish him well as he pursues other ventures.

Our Board recently announced that Bruce Beach has been named Chairman of the Board of Directors, effective as of our June 2022 annual meeting of stockholders. As many of you know, Bruce is an accounting industry leader with nearly 50 years of business and financial management experience, in addition to being the Board's Lead Independent Director since 2010. I believe Bruce is the ideal Chairman given his sound judgment, integrity and enduring commitment to Western Alliance. He knows our company well and I have no doubt he will continue to be a fierce advocate for shareholders and an unwavering partner in our growth plans.

As part of our ongoing board refreshment and succession planning, I'm also pleased to share that the company is nominating a new director for consideration at this year's annual meeting, Patricia Arvielo, Co-Founder and President of New American Funding. This company is one the nation's largest independent mortgage lenders and has been a mortgage warehouse client of our bank since 2014. Patty is an accomplished entrepreneur and brings more than 40 years of mortgage and real estate experience to our Board, as well as significant involvement in a wide range of community and industry groups. Her energy and enthusiasm, combined with her business acumen, will serve us well in the years to come.

I'm honored to let you know that our Board and I have also agreed to extend my contract as President and CEO for three years, through at least 2024. I am grateful for the trust the Board has placed in me during this important period of growth and innovation for our company. Our Board recognizes the diversity and expertise our entire senior management team brings to Western Alliance, in addition to the value of leadership continuity as we execute on our strategic plans.

Finally, we extend our sincerest appreciation to our shareholders for their continuing commitment to Western Alliance. Ultimately, we recognize that we work for you, and our long track record of success would not be possible without your ongoing support.

Kenneth A. Vecchione Signature — **Kenneth A. Vecchione**
President and Chief Executive Officer

FACTS AND FIGURES

$5B

Total Equity

$56B

In Assets

3,139

Employees

58

Offices

LONG-TERM DEPOSIT RATING

A2

Moody's Investor Service

A

Kroll Bond Rating Agency

LONG-TERM DEBT RATING

A-

Kroll Bond Rating Agency

Baa2

Moody's Investor Service

IDC FINANCIAL PLANNING

The Standard in Financial Rating Institutions, Rated 300 Superior*
*Report dated 11/15/2021

INDUSTRY ACCOLADES

One of Forbes' “America's Best Banks” Year After Year

#1 Best Emerging Regional Bank and Top 10 U.S. Banks for Growth Strategy
BANK DIRECTOR'S 2022 RANKINGBANKING STUDY

#2 Best-Performing of the 50 Largest Public U.S. Banks
S&P GLOBAL MARKET INTELLIGENCE 2021

2022 All-America Executive Team
Best CEO: Ken Vecchione ranked #1
Best CFO: Dale Gibbons ranked #1
INSTITUTATIONAL INVESTOR MAGAZINE

Financial Highlights

(Swipe the table below to view the data)

	2019	2020	2021
Balance Sheet ($ in millions)
Total Assets	26,822	36,461	55,983
HFI Loans, net of deferred fees	21,123	27,053	39,075
Total Deposits	22,796	31,930	47,612
Total Equity	3,017	3,413	4,963

Profitability ($ in millions)
Net Interest Income	1,040.4	1,166.9	1,548.8
PPNR⁶	623.5	746.1	1,122.8
Net Income	499.2	506.6	899.2
ROAA (%)	2.00	1.61	1.83
ROATCE⁶ (%)	19.6	17.7	26.2
Net Interest Margin (%)	4.52	3.97	3.41
Efficiency Ratio⁶ (%)	42.7	38.8	41.8
Tangible Common Equity / Tangible Assets⁵ (%)	10.3	8.6	7.3

Asset Quality (%)
Non-Performing Assets⁷ / Total Assets	0.26	0.32	0.15
Loan Loss Reserves / Funded Loans	0.80	1.03	0.74
Common Equity Tier 1 (CET1) Ratio	10.6	9.9	9.1

Per Share Information ($)
Common Dividends Declared per Share⁸	0.50	1.00	1.20
Earnings Per Share	4.84	5.04	8.67

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 Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the Securities and Exchange Commission.
Non-performing assets include nonaccrual loans and repossessed assets.
Quarterly cash dividend initiated in 3Q 2019.
Peers consist of 29 major exchange traded U.S. banks with total assets between $25B and $150B as of December 31, 2021, excluding target banks of pending acquisitions; S&P Global Market Intelligence.