Western Alliance Bancorporation Reports Third Quarter 2024 Financial Results

Business Wire

Thu, Oct 17, 2024, 1:48 PM 22 min read

Quarter Highlights:

Net income	Earnings per share	PPNR¹	Net interest margin	Efficiency ratio	Book value per common share
$199.8 million	$1.80	$285.7 million	3.61%	64.5%	$57.97
$199.8 million	$1.80	$285.7 million	3.61%	52.7%¹, adjusted for deposit costs	$51.98¹, excluding goodwill and intangibles

CEO COMMENTARY:

"Western Alliance delivered solid third quarter results featuring strong net interest income growth, continued loan and deposit momentum, and healthy earnings generation," said Kenneth A. Vecchione, President and Chief Executive Officer. "Quarterly loan and deposit growth of $916 million and $1.8 billion, respectively, continued their upward trajectory and produced PPNR¹ of $285.7 million. Asset quality remained stable with our nonperforming assets to total assets ratio declining to 0.45% and net loan charge-offs of 0.20% of average loans. Overall, we achieved net income of $199.8 million and earnings per share of $1.80 for the third quarter 2024, which resulted in a return on tangible common equity¹ of 13.8%. Tangible book value per share¹ climbed 19.1% year-over-year to $51.98 with a CET1 ratio of 11.2%.

LINKED-QUARTER BASIS	YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:
Net income of $199.8 million and earnings per share of $1.80, up 3.2% and 2.9%, from $193.6 million and $1.75, respectively	Net income of $199.8 million and earnings per share of $1.80, down 7.8% and 8.6%, from $216.6 million and $1.97, respectively
Net revenue of $823.1 million, an increase of 6.6%, or $51.3 million, compared to an increase in non-interest expenses of 10.4%, or $50.6 million	Net revenue of $823.1 million, an increase of 14.9%, or $106.9 million, compared to an increase in non-interest expenses of 26.1%, or $111.2 million
Pre-provision net revenue¹ of $285.7 million, up $0.7 million from $285.0 million	Pre-provision net revenue¹ of $285.7 million, down $4.3 million from $290.0 million
Effective tax rate of 20.7%, compared to 21.9%	Effective tax rate of 20.7%, compared to 22.1%

FINANCIAL POSITION RESULTS:
HFI loans of $53.3 billion, up $916 million, or 1.7%	Increase in HFI loans of $3.9 billion, or 7.9%
Total deposits of $68.0 billion, up $1.8 billion, or 2.7%	Increase in total deposits of $13.8 billion, or 25.3%
HFI loan-to-deposit ratio of 78.4%, down from 79.1%	HFI loan-to-deposit ratio of 78.4%, down from 91.1%
Stockholders' equity of $6.7 billion, up $343 million	Increase in stockholders' equity of $931 million

LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans and repossessed assets) to total assets of 0.45%, compared to 0.51%	Nonperforming assets to total assets of 0.45%, compared to 0.35%
Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.18%	Annualized net loan charge-offs to average loans outstanding of 0.20%, compared to 0.07%

KEY PERFORMANCE METRICS:
Net interest margin of 3.61%, decreased from 3.63%	Net interest margin of 3.61%, decreased from 3.67%
Return on average assets and on tangible common equity¹ of 0.96% and 13.8%, compared to 0.99% and 14.3%, respectively	Return on average assets and on tangible common equity¹ of 0.96% and 13.8%, compared to 1.24% and 17.3%, respectively
Tangible common equity ratio¹ of 7.2%, increased from 6.7%	Tangible common equity ratio¹ of 7.2%, increased from 6.8%
CET 1 ratio of 11.2%, compared to 11.0%	CET 1 ratio of 11.2%, compared to 10.6%
Tangible book value per share¹, net of tax, of $51.98, an increase of 6.5% from $48.79	Tangible book value per share¹, net of tax, of $51.98, an increase of 19.1% from $43.66
Adjusted efficiency ratio¹ of 52.7%, compared to 51.5%	Adjusted efficiency ratio¹ of 52.7%, compared to 50.0%

¹See reconciliation of Non-GAAP Financial Measures.

Income Statement

Net interest income totaled $696.9 million in the third quarter 2024, an increase of $40.3 million, or 6.1%, from $656.6 million in the second quarter 2024, and an increase of $109.9 million, or 18.7%, compared to the third quarter 2023. The increase in net interest income from the second quarter 2024 is due to an increase in average HFI and HFS loan balances, partially offset by a decrease in HFI loan yields. The increase in net interest income from the third quarter 2023 was driven by an increase in average HFI loan and investment securities balances, partially offset by higher balances and rates on deposits and a lower yields on HFI loans.

The Company recorded a provision for credit losses of $33.6 million in the third quarter 2024, a decrease of $3.5 million from $37.1 million in the second quarter 2024, and an increase of $21.5 million from $12.1 million in the third quarter 2023. The provision for credit losses during the third quarter 2024 is primarily reflective of net-charge offs of $26.6 million and loan growth.

The Company’s net interest margin in the third quarter 2024 was 3.61%, a decrease from 3.63% in the second quarter 2024, and a decrease from 3.67% in the third quarter 2023. The decrease in net interest margin from the second quarter 2024 was driven by lower yields on HFI loans. The decrease in net interest margin from the third quarter 2023 was driven by lower HFI loan yields and higher deposit rates.

Non-interest income was $126.2 million for the third quarter 2024, compared to $115.2 million for the second quarter 2024, and $129.2 million for the third quarter 2023. The $11.0 million increase in non-interest income from the second quarter 2024 was primarily due to increases in service charges and loan fees of $12.3 million, gain on sales of investment securities of $6.5 million, and other non-interest income of $10.8 million primarily from income on recently purchased bank owned life insurance policies. These increases were partially offset by a decrease of $25.8 million in net loan servicing revenue due to higher MSR fair value losses combined with lower servicing income. The $3.0 million decrease in non-interest income from the third quarter 2023 was primarily driven by lower net loan servicing revenue and lower fair value gain adjustments, partially offset by higher other non-interest income due to income on new bank owned life insurance policies.

Net revenue totaled $823.1 million for the third quarter 2024, an increase of $51.3 million or 6.6%, compared to $771.8 million for the second quarter 2024, and an increase of $106.9 million or 14.9%, compared to $716.2 million for the third quarter 2023.

Non-interest expense was $537.4 million for the third quarter 2024, compared to $486.8 million for the second quarter 2024, and $426.2 million for the third quarter 2023. The Company’s efficiency ratio, adjusted for deposit costs¹ was 52.7% for the third quarter 2024, compared to 51.5% in the second quarter 2024, and 50.0% for the third quarter 2023. The increase in non-interest expense from the second quarter 2024 is due primarily to an increase of $34.3 million in deposit costs. The increase in non-interest expense from the third quarter 2023 is primarily attributable to an increase in deposit costs and salaries and employee benefits.

Income tax expense was $52.3 million for the third quarter 2024, compared to $54.3 million for the second quarter 2024, and $61.3 million for the third quarter 2023. The decrease in income tax expense from the second quarter 2024 is primarily related to increased expected utilization of tax credits. The decrease in income tax expense from the third quarter 2023 is primarily related to lower pre-tax income.

Net income was $199.8 million for the third quarter 2024, an increase of $6.2 million from $193.6 million for the second quarter 2024, and a decrease of $16.8 million from $216.6 million for the third quarter 2023. Earnings per share totaled $1.80 for the third quarter 2024, compared to $1.75 for the second quarter 2024, and $1.97 for the third quarter 2023.

The Company views its pre-provision net revenue¹ ("PPNR") as a key metric for assessing the Company’s earnings power, which it defines as net revenue less non-interest expense. For the third quarter 2024, the Company’s PPNR¹ was $285.7 million, up $0.7 million from $285.0 million in the second quarter 2024, and down $4.3 million from $290.0 million in the third quarter 2023.

The Company had 3,426 full-time equivalent employees and 56 offices at September 30, 2024, compared to 3,310 full-time equivalent employees and 56 offices at June 30, 2024, and 3,272 full-time equivalent employees and 56 offices at September 30, 2023.

¹See reconciliation of Non-GAAP Financial Measures.

Balance Sheet

HFI loans, net of deferred fees totaled $53.3 billion at September 30, 2024, compared to $52.4 billion at June 30, 2024, and $49.4 billion at September 30, 2023. The increase in HFI loans of $916 million from the prior quarter was primarily driven by increases of $861 million and $154 million in commercial and industrial and commercial real estate non-owner occupied loans, respectively, partially offset by decreases of $69 million and $50 million in commercial real estate owner occupied and residential real estate loans, respectively. The increase in HFI loans of $3.9 billion from September 30, 2023 was primarily driven by an increase of $4.2 billion in commercial and industrial loans, partially offset by a decrease of $384 million in residential real estate loans. HFS loans totaled $2.3 billion at September 30, 2024, compared to $2.0 billion at June 30, 2024, and $1.8 billion at September 30, 2023. The increases of $320 million and $561 million in HFS loans from June 30, 2024 and September 30, 2023, respectively, are primarily related to an increase in agency conforming loans.

The Company's allowance for credit losses on HFI loans consists of an allowance for funded HFI loans and an allowance for unfunded loan commitments. The allowance for loan losses to funded HFI loans ratio was 0.67%, 0.67%, and 0.66% at September 30, 2024, June 30, 2024, and September 30, 2023, respectively. The allowance for credit losses, which includes the allowance for unfunded loan commitments, to funded HFI loans ratio was 0.74% at September 30, 2024, June 30, 2024, and September 30, 2023. The Company is a party to credit linked note transactions which effectively transfer a portion of the risk of losses on reference pools of loans to the purchasers of the notes. The Company is protected from first credit losses on reference pools of loans totaling $8.8 billion, $8.9 billion, and $9.3 billion as of September 30, 2024, June 30, 2024, and September 30, 2023, respectively, under these transactions. However, as these note transactions are considered to be free standing credit enhancements, the allowance for credit losses cannot be reduced by the expected credit losses that may be mitigated by these notes. Accordingly, the allowance for loan and credit losses ratios include an allowance related to these pools of loans of $11.8 million as of September 30, 2024, $11.7 million as of June 30, 2024, and $17.4 million as of September 30, 2023. The allowance for credit losses to funded HFI loans ratio, adjusted to reduce the HFI loan balance by the amount of loans in covered reference pools, was 0.88% at September 30, 2024, 0.89% at June 30, 2024, and 0.91% at September 30, 2023.

Deposits totaled $68.0 billion at September 30, 2024, an increase of $1.8 billion from $66.2 billion at June 30, 2024, and an increase of $13.8 billion from $54.3 billion at September 30, 2023. By deposit type, the increase from the prior quarter is attributable to increases of $3.4 billion from non-interest bearing deposits and $2.5 billion from savings and money market deposits, partially offset by decreases of $3.4 billion from interest-bearing demand deposits and $714 million from certificates of deposits. From September 30, 2023, non-interest bearing deposits increased $7.0 billion, savings and money market deposits increased $4.9 billion, interest-bearing demand deposits increased $1.0 billion, and certificates of deposit increased $873 million. Non-interest bearing deposits were $25.0 billion at September 30, 2024, compared to $21.5 billion at June 30, 2024, and $18.0 billion at September 30, 2023.

The table below shows the Company's deposit types as a percentage of total deposits:

	Sep 30, 2024		Jun 30, 2024		Sep 30, 2023
Non-interest bearing	36.7	%	32.5	%	33.1	%
Interest-bearing demand	20.3		26.1		23.7
Savings and money market	28.8		25.8		27.0
Certificates of deposit	14.2		15.6		16.2

The Company’s ratio of HFI loans to deposits was 78.4% at September 30, 2024, compared to 79.1% at June 30, 2024, and 91.1% at September 30, 2023.

Borrowings were $3.0 billion at September 30, 2024, $5.6 billion at June 30, 2024, and $8.7 billion at September 30, 2023. Borrowings decreased $2.6 billion from June 30, 2024 primarily due to a decrease of $3.6 billion in short-term borrowings, partially offset by a $1.0 billion increase in long-term borrowings. The decrease in borrowings from September 30, 2023 is primarily due to a decrease in short-term borrowings of $6.4 billion and payoff of the AmeriHome senior notes as part of the Company's balance sheet repositioning, partially offset by an increase in long term borrowings of $1.0 billion.

Stockholders’ equity was $6.7 billion at September 30, 2024, compared to $6.3 billion at June 30, 2024 and $5.7 billion at September 30, 2023. The increase in stockholders’ equity from the prior quarter was due to net income and unrealized fair value gains of $176 million on the Company's available-for-sale securities, which are recorded in other comprehensive loss, net of tax, partially offset by dividends to shareholders. Cash dividends of $40.7 million ($0.37 per common share) and $3.2 million ($0.27 per depository share) were paid to stockholders during the third quarter 2024. The increase in stockholders' equity from September 30, 2023 is primarily a function of net income and unrealized fair value gains on available-for-sale securities, partially offset by dividends to stockholders.

The Company's common equity tier 1 capital ratio was 11.2% at September 30, 2024, compared to 11.0% and 10.6% at June 30, 2024 and September 30, 2023, respectively. At September 30, 2024, tangible common equity, net of tax¹, was 7.2% of tangible assets¹ and total capital was 14.1% of risk-weighted assets. The Company’s tangible book value per share¹ was $51.98 at September 30, 2024, an increase of 6.5% from $48.79 at June 30, 2024, and an increase of 19.1% from $43.66 at September 30, 2023. The increase in tangible book value per share from June 30, 2024 and September 30, 2023 is attributable to net income.

Total assets decreased $501 million, or 0.6%, to $80.1 billion at September 30, 2024 from $80.6 billion at June 30, 2024, and increased 13.0% from $70.9 billion at September 30, 2023. The decrease in total assets from June 30, 2024 was primarily driven by a decrease in cash and due from banks and investment securities, which funded an increase in HFI loans and bank owned life insurance. The increase in total assets from September 30, 2023 was primarily driven by an increase in investment securities and HFI loans, partially offset by a decrease in cash and due from banks.

¹See reconciliation of Non-GAAP Financial Measures.

Asset Quality

Provision for credit losses totaled $33.6 million for the third quarter 2024, compared to $37.1 million for the second quarter 2024, and $12.1 million for the third quarter 2023. Net loan charge-offs in the third quarter 2024 totaled $26.6 million, or 0.20% of average loans (annualized), compared to $22.8 million, or 0.18%, in the second quarter 2024, and $8.0 million, or 0.07%, in the third quarter 2023.

Nonaccrual loans decreased $52 million to $349 million during the quarter and increased $112 million from September 30, 2023. Loans past due 90 days and still accruing interest totaled $4 million at September 30, 2024 and zero at June 30, 2024 and September 30, 2023 (excluding government guaranteed loans of $313 million, $330 million, and $439 million, respectively). Loans past due 30-89 days and still accruing interest totaled $110 million at September 30, 2024, an increase from $83 million at June 30, 2024, and a decrease from $189 million at September 30, 2023 (excluding government guaranteed loans of $203 million, $221 million, and $261 million, respectively).

Repossessed assets totaled $8 million at September 30, 2024, flat from June 30, 2024 and September 30, 2023. Classified assets totaled $838 million at September 30, 2024, an increase of $90 million from $748 million at June 30, 2024, and an increase of $199 million from $639 million at September 30, 2023.

The ratio of classified assets to Tier 1 capital plus the allowance for credit losses², a common regulatory measure of asset quality, was 12.2% at September 30, 2024, compared to 11.2% at June 30, 2024, and 10.2% at September 30, 2023.

² The allowance for credit losses used in this ratio is calculated in accordance with regulatory capital rules.

Conference Call and Webcast

Western Alliance Bancorporation will host a conference call and live webcast to discuss its third quarter 2024 financial results at 12:00 p.m. ET on Friday, October 18, 2024. Participants may access the call by dialing 1-833-470-1428 and using access code 586867 or via live audio webcast using the website link https://events.q4inc.com/attendee/875780058. 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 3:00 p.m. ET October 18th through 11:59 p.m. ET November 17th by dialing 1-866-813-9403, using access code 196595.

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.

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, future economic performance and dividends. 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, 2023 and the Company's subsequent Quarterly Reports on Form 10-Q, each as filed with the Securities and Exchange Commission; adverse developments in the financial services industry generally such as the bank failures in 2023 and any related impact on depositor behavior; risks related to the sufficiency of liquidity; the potential adverse effects of unusual and infrequently occurring events and any governmental or societal responses thereto; changes in general economic conditions, either nationally or locally in the areas in which we conduct or will conduct our business; the impact on financial markets from geopolitical conflicts such as the wars in Ukraine and the Middle East; inflation, interest rate, market and monetary fluctuations; increases in competitive pressures among financial institutions and businesses offering similar products and services; higher defaults on our loan portfolio than we expect; changes in management’s estimate of the adequacy of the allowance for credit losses; legislative or regulatory changes or changes in accounting principles, policies or guidelines; supervisory actions by regulatory agencies which may limit our ability to pursue certain growth opportunities, including expansion through acquisitions; additional regulatory requirements resulting from our continued growth; management’s estimates and projections of interest rates and interest rate policy; the execution of our business plan; and other factors affecting the financial services industry generally or the banking industry in particular.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. We do not intend and disclaim any duty or obligation to update or revise any industry information or forward-looking statements, whether written or oral, that may be made from time to time, set forth in this press release to reflect new information, future events or otherwise.

About Western Alliance Bancorporation

With more than $80 billion in assets, Western Alliance Bancorporation (NYSE:WAL) is one of the country’s top-performing banking companies. Through its primary subsidiary, Western Alliance Bank, Member FDIC, clients benefit from a full spectrum of tailored commercial banking solutions and consumer products, all delivered with outstanding service by industry experts who put customers first. Major accolades include being ranked as a top U.S. bank in 2023 by American Banker and Bank Director and receiving #1 rankings on Institutional Investor's All-America Executive Team Midcap 2023-2024 for Best CEO, Best CFO, Best Company Board of Directors and Best Investor Relations Team. Serving clients across the country wherever business happens, Western Alliance Bank operates individual, full-service banking and financial brands with offices in key markets nationwide. For more information, visit westernalliancebank.com.

Western Alliance Bancorporation and Subsidiaries
Summary Consolidated Financial Data
Unaudited


Selected Balance Sheet Data:
							As of September 30,
								2024		2023	Change %
							(in millions)
Total assets							$	80,080	$	70,891	13.0	%
Loans held for sale								2,327		1,766	31.8
HFI loans, net of deferred fees								53,346		49,447	7.9
Investment securities								16,382		11,204	46.2
Total deposits								68,040		54,287	25.3
Borrowings								2,995		8,745	(65.8	)
Qualifying debt								898		890	0.9
Stockholders' equity								6,677		5,746	16.2
Tangible common equity, net of tax (1)								5,723		4,781	19.7
Common equity Tier 1 capital								6,126		5,540	10.6

Selected Income Statement Data:
	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
		2024		2023	Change %			2024		2023	Change %
	(in millions, except per share data)						(in millions, except per share data)
Interest income	$	1,200.0	$	1,026.6	16.9	%	$	3,402.5	$	2,996.3	13.6	%
Interest expense		503.1		439.6	14.4			1,450.1		1,249.1	16.1
Net interest income		696.9		587.0	18.7			1,952.4		1,747.2	11.7
Provision for credit losses		33.6		12.1	NM			85.9		53.3	61.2
Net interest income after provision for credit losses		663.3		574.9	15.4			1,866.5		1,693.9	10.2
Non-interest income		126.2		129.2	(2.3	)		371.3		190.2	95.2
Non-interest expense		537.4		426.2	26.1			1,506.0		1,161.5	29.7
Income before income taxes		252.1		277.9	(9.3	)		731.8		722.6	1.3
Income tax expense		52.3		61.3	(14.7	)		161.0		148.1	8.7
Net income		199.8		216.6	(7.8	)		570.8		574.5	(0.6	)
Dividends on preferred stock		3.2		3.2	—			9.6		9.6	—
Net income available to common stockholders	$	196.6	$	213.4	(7.9	)	$	561.2	$	564.9	(0.7	)
Diluted earnings per common share	$	1.80	$	1.97	(8.6	)	$	5.14	$	5.21	(1.3	)

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

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,
	2024			2023			Change %		2024			2023			Change %
Diluted earnings per common share	$	1.80		$	1.97		(8.6	)%	$	5.14		$	5.21		(1.3	)%
Book value per common share		57.97			49.78		16.5
Tangible book value per common share, net of tax (1)		51.98			43.66		19.1
Average common shares outstanding (in millions):
Basic		108.7			108.3		0.3			108.6			108.3		0.3
Diluted		109.5			108.5		0.9			109.2			108.4		0.8
Common shares outstanding		110.1			109.5		0.5

Selected Performance Ratios:
Return on average assets (2)		0.96	%		1.24	%	(22.6	)%		0.98	%		1.09	%	(10.1	)%
Return on average tangible common equity (1, 2)		13.8			17.3		(20.2	)		13.8			16.0		(13.8	)
Net interest margin (2)		3.61			3.67		(1.6	)		3.61			3.62		(0.3	)
Efficiency ratio, adjusted for deposit costs (1)		52.7			50.0		5.4			53.8			51.6		4.3
HFI loan to deposit ratio		78.4			91.1		(13.9	)

Asset Quality Ratios:
Net charge-offs to average loans outstanding (2)		0.20	%		0.07	%	NM			0.15	%		0.06	%	NM
Nonaccrual loans to funded HFI loans		0.65			0.48		35.4
Nonaccrual loans and repossessed assets to total assets		0.45			0.35		28.6
Allowance for loan losses to funded HFI loans		0.67			0.66		1.5
Allowance for loan losses to nonaccrual HFI loans		102			138		(26.1	)

Capital Ratios:
									Sep 30, 2024			Jun 30, 2024			Sep 30, 2023
Tangible common equity (1)										7.2	%		6.7	%	6.8	%
Common Equity Tier 1 (3)										11.2			11.0		10.6
Tier 1 Leverage ratio (3)										7.8			8.0		8.5
Tier 1 Capital (3)										11.9			11.7		11.3
Total Capital (3)										14.1			13.9		13.5

(1)	See Reconciliation of Non-GAAP Financial Measures.
(2)	Annualized on an actual/actual basis for periods less than 12 months.
(3)	Capital ratios for September 30, 2024 are preliminary.
NM	Changes +/- 100% are not meaningful.

Western Alliance Bancorporation and Subsidiaries
Condensed Consolidated Income Statements
Unaudited
	Three Months Ended September 30,					Nine Months Ended September 30,
		2024		2023			2024			2023
	(dollars in millions, except per share data)
Interest income:
Loans	$	945.3	$	860.8		$	2,713.9		$	2,550.7
Investment securities		197.1		122.8			531.6			331.3
Other		57.6		43.0			157.0			114.3
Total interest income		1,200.0		1,026.6			3,402.5			2,996.3
Interest expense:
Deposits		422.1		316.2			1,213.0			798.9
Qualifying debt		9.5		9.5			28.6			28.3
Borrowings		71.5		113.9			208.5			421.9
Total interest expense		503.1		439.6			1,450.1			1,249.1
Net interest income		696.9		587.0			1,952.4			1,747.2
Provision for credit losses		33.6		12.1			85.9			53.3
Net interest income after provision for credit losses		663.3		574.9			1,866.5			1,693.9
Non-interest income:
Net gain on loan origination and sale activities		46.3		52.0			138.4			145.7
Service charges and loan fees		30.1		29.7			64.3			72.3
Net loan servicing revenue		12.3		27.2			96.8			93.2
Income from equity investments		5.8		0.5			27.1			2.6
Gain (loss) on sales of investment securities		8.8		0.1			10.2			(26.0	)
Fair value gain (loss) adjustments, net		4.1		17.8			5.1			(117.3	)
Gain (loss) on recovery from credit guarantees		0.2		(4.0	)		(2.8	)		0.5
Other		18.6		5.9			32.2			19.2
Total non-interest income		126.2		129.2			371.3			190.2
Non-interest expenses:
Deposit costs		208.0		127.8			518.7			305.7
Salaries and employee benefits		157.8		137.2			465.7			431.7
Data processing		38.7		33.9			110.4			88.9
Insurance		35.4		33.1			128.1			81.8
Legal, professional, and directors' fees		24.8		28.3			80.7			77.8
Loan servicing expenses		18.7		11.9			50.3			44.1
Occupancy		17.6		16.8			53.5			48.7
Business development and marketing		9.7		4.9			21.6			15.1
Loan acquisition and origination expenses		5.9		5.6			15.8			15.6
Gain on extinguishment of debt		—		—			—			(13.4	)
Other		20.8		26.7			61.2			65.5
Total non-interest expense		537.4		426.2			1,506.0			1,161.5
Income before income taxes		252.1		277.9			731.8			722.6
Income tax expense		52.3		61.3			161.0			148.1
Net income		199.8		216.6			570.8			574.5
Dividends on preferred stock		3.2		3.2			9.6			9.6
Net income available to common stockholders	$	196.6	$	213.4		$	561.2		$	564.9

Earnings per common share:
Diluted shares		109.5		108.5			109.2			108.4
Diluted earnings per share	$	1.80	$	1.97		$	5.14		$	5.21

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Income Statements
Unaudited
	Three Months Ended
	Sep 30, 2024		Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(in millions, except per share data)
Interest income:
Loans	$	945.3	$	896.7		$	871.9		$	859.0		$	860.8
Investment securities		197.1		190.5			144.0			136.2			122.8
Other		57.6		60.3			39.1			43.8			43.0
Total interest income		1,200.0		1,147.5			1,055.0			1,039.0			1,026.6
Interest expense:
Deposits		422.1		410.3			380.6			343.7			316.2
Qualifying debt		9.5		9.6			9.5			9.6			9.5
Borrowings		71.5		71.0			66.0			94.0			113.9
Total interest expense		503.1		490.9			456.1			447.3			439.6
Net interest income		696.9		656.6			598.9			591.7			587.0
Provision for credit losses		33.6		37.1			15.2			9.3			12.1
Net interest income after provision for credit losses		663.3		619.5			583.7			582.4			574.9
Non-interest income:
Net gain on loan origination and sale activities		46.3		46.8			45.3			47.8			52.0
Service charges and loan fees		30.1		17.8			16.4			28.7			29.7
Net loan servicing revenue		12.3		38.1			46.4			9.1			27.2
Income from equity investments		5.8		4.2			17.1			13.1			0.5
Gain (loss) on sales of investment securities		8.8		2.3			(0.9	)		(14.8	)		0.1
Fair value gain (loss) adjustments, net		4.1		0.7			0.3			1.3			17.8
Gain (loss) on recovery from credit guarantees		0.2		(2.5	)		(0.5	)		(2.7	)		(4.0	)
Other		18.6		7.8			5.8			8.0			5.9
Total non-interest income		126.2		115.2			129.9			90.5			129.2
Non-interest expenses:
Deposit costs		208.0		173.7			137.0			131.0			127.8
Salaries and employee benefits		157.8		153.0			154.9			134.6			137.2
Data processing		38.7		35.7			36.0			33.1			33.9
Insurance		35.4		33.8			58.9			108.6			33.1
Legal, professional, and directors' fees		24.8		25.8			30.1			29.4			28.3
Loan servicing expenses		18.7		16.6			15.0			14.7			11.9
Occupancy		17.6		18.4			17.5			16.9			16.8
Business development and marketing		9.7		6.4			5.5			6.7			4.9
Loan acquisition and origination expenses		5.9		5.1			4.8			4.8			5.6
Gain on extinguishment of debt		—		—			—			(39.3	)		—
Other		20.8		18.3			22.1			21.4			26.7
Total non-interest expense		537.4		486.8			481.8			461.9			426.2
Income before income taxes		252.1		247.9			231.8			211.0			277.9
Income tax expense		52.3		54.3			54.4			63.1			61.3
Net income		199.8		193.6			177.4			147.9			216.6
Dividends on preferred stock		3.2		3.2			3.2			3.2			3.2
Net income available to common stockholders	$	196.6	$	190.4		$	174.2		$	144.7		$	213.4

Earnings per common share:
Diluted shares		109.5		109.1			109.0			108.7			108.5
Diluted earnings per share	$	1.80	$	1.75		$	1.60		$	1.33		$	1.97

Western Alliance Bancorporation and Subsidiaries
Five Quarter Condensed Consolidated Balance Sheets
Unaudited
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(in millions)
Assets:
Cash and due from banks	$	2,592		$	4,077		$	3,550		$	1,576		$	3,497
Investment securities		16,382			17,268			16,092			12,712			11,204
Loans held for sale		2,327			2,007			1,841			1,402			1,766
Loans held for investment:
Commercial and industrial		22,551			21,690			19,749			19,103			18,344
Commercial real estate - non-owner occupied		9,801			9,647			9,637			9,650			9,810
Commercial real estate - owner occupied		1,817			1,886			1,859			1,810			1,771
Construction and land development		4,727			4,712			4,781			4,889			4,669
Residential real estate		14,395			14,445			14,624			14,778			14,779
Consumer		55			50			50			67			74
Loans HFI, net of deferred fees		53,346			52,430			50,700			50,297			49,447
Allowance for loan losses		(357	)		(352	)		(340	)		(337	)		(327	)
Loans HFI, net of deferred fees and allowance		52,989			52,078			50,360			49,960			49,120
Mortgage servicing rights		1,011			1,145			1,178			1,124			1,233
Premises and equipment, net		354			351			344			339			327
Operating lease right-of-use asset		127			133			139			145			150
Other assets acquired through foreclosure, net		8			8			8			8			8
Bank owned life insurance		1,000			187			187			186			184
Goodwill and other intangibles, net		661			664			666			669			672
Other assets		2,629			2,663			2,624			2,741			2,730
Total assets	$	80,080		$	80,581		$	76,989		$	70,862		$	70,891
Liabilities and Stockholders' Equity:
Liabilities:
Deposits
Non-interest bearing deposits	$	24,965		$	21,522		$	18,399		$	14,520		$	17,991
Interest bearing:
Demand		13,846			17,267			16,965			15,916			12,843
Savings and money market		19,575			17,087			16,194			14,791			14,672
Certificates of deposit		9,654			10,368			10,670			10,106			8,781
Total deposits		68,040			66,244			62,228			55,333			54,287
Borrowings		2,995			5,587			6,221			7,230			8,745
Qualifying debt		898			897			896			895			890
Operating lease liability		159			165			172			179			180
Accrued interest payable and other liabilities		1,311			1,354			1,300			1,147			1,043
Total liabilities		73,403			74,247			70,817			64,784			65,145
Stockholders' Equity:
Preferred stock		295			295			295			295			295
Common stock and additional paid-in capital		2,110			2,099			2,087			2,081			2,073
Retained earnings		4,654			4,498			4,348			4,215			4,111
Accumulated other comprehensive loss		(382	)		(558	)		(558	)		(513	)		(733	)
Total stockholders' equity		6,677			6,334			6,172			6,078			5,746
Total liabilities and stockholders' equity	$	80,080		$	80,581		$	76,989		$	70,862		$	70,891

Western Alliance Bancorporation and Subsidiaries
Changes in the Allowance For Credit Losses on Loans
Unaudited
	Three Months Ended
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(in millions)
Allowance for loan losses
Balance, beginning of period	$	351.8		$	340.3		$	336.7		$	327.4		$	321.1
Provision for credit losses (1)		31.4			34.3			13.4			17.8			14.3
Recoveries of loans previously charged-off:
Commercial and industrial		0.5			0.1			0.4			0.7			0.4
Commercial real estate - non-owner occupied		0.7			—			—			—			—
Commercial real estate - owner occupied		—			—			—			0.1			—
Construction and land development		—			—			—			—			—
Residential real estate		—			—			—			—			0.1
Consumer		—			—			—			—			—
Total recoveries		1.2			0.1			0.4			0.8			0.5
Loans charged-off:
Commercial and industrial		4.3			5.3			2.3			9.3			5.5
Commercial real estate - non-owner occupied		21.7			17.6			7.9			—			3.0
Commercial real estate - owner occupied		0.3			—			—			—			—
Construction and land development		1.5			—			—			—			—
Residential real estate		—			—			—			—			—
Consumer		—			—			—			—			—
Total loans charged-off		27.8			22.9			10.2			9.3			8.5
Net loan charge-offs		26.6			22.8			9.8			8.5			8.0
Balance, end of period	$	356.6		$	351.8		$	340.3		$	336.7		$	327.4

Allowance for unfunded loan commitments
Balance, beginning of period	$	35.9		$	33.1		$	31.6		$	37.9		$	41.1
Provision for (recovery of) credit losses (1)		1.7			2.8			1.5			(6.3	)		(3.2	)
Balance, end of period (2)	$	37.6		$	35.9		$	33.1		$	31.6		$	37.9

Components of the allowance for credit losses on loans
Allowance for loan losses	$	356.6		$	351.8		$	340.3		$	336.7		$	327.4
Allowance for unfunded loan commitments		37.6			35.9			33.1			31.6			37.9
Total allowance for credit losses on loans	$	394.2		$	387.7		$	373.4		$	368.3		$	365.3

Net charge-offs to average loans - annualized		0.20	%		0.18	%		0.08	%		0.07	%		0.07	%

Allowance ratios
Allowance for loan losses to funded HFI loans (3)		0.67	%		0.67	%		0.67	%		0.67	%		0.66	%
Allowance for credit losses to funded HFI loans (3)		0.74			0.74			0.74			0.73			0.74
Allowance for loan losses to nonaccrual HFI loans		102			88			85			123			138
Allowance for credit losses to nonaccrual HFI loans		113			97			94			135			154

(1)				The above tables reflect the provision for credit losses on funded and unfunded loans. There was a $0.4 million provision release on AFS investment securities and a $0.9 million provision for credit losses on HTM investment securities for the three months ended September 30, 2024. The allowance for credit losses on AFS and HTM investment securities totaled $0.4 million and $9.6 million, respectively, as of September 30, 2024.
(2)				The allowance for unfunded loan commitments is included as part of accrued interest payable and other liabilities on the balance sheet.
(3)				Ratio includes an allowance for credit losses of $11.8 million as of September 30, 2024 related to a pool of loans covered under three separate credit linked note transactions.

Western Alliance Bancorporation and Subsidiaries
Asset Quality Metrics
Unaudited
	Three Months Ended
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(in millions)
Nonaccrual loans and repossessed assets
Nonaccrual loans	$	349		$	401		$	399		$	273		$	237
Nonaccrual loans to funded HFI loans		0.65	%		0.76	%		0.79	%		0.54	%		0.48	%
Repossessed assets	$	8		$	8		$	8		$	8		$	8
Nonaccrual loans and repossessed assets to total assets		0.45	%		0.51	%		0.53	%		0.40	%		0.35	%

Loans Past Due
Loans past due 90 days, still accruing (1)	$	4		$	—		$	6		$	42		$	—
Loans past due 90 days, still accruing to funded HFI loans		0.01	%		—	%		0.01	%		0.08	%		—	%
Loans past due 30 to 89 days, still accruing (2)	$	110		$	83		$	117		$	164		$	189
Loans past due 30 to 89 days, still accruing to funded HFI loans		0.21	%		0.16	%		0.23	%		0.33	%		0.38	%

Other credit quality metrics
Special mention loans	$	502		$	532		$	394		$	641		$	668
Special mention loans to funded HFI loans		0.94	%		1.01	%		0.78	%		1.27	%		1.35	%

Classified loans on accrual	$	479		$	328		$	361		$	379		$	381
Classified loans on accrual to funded HFI loans		0.90	%		0.63	%		0.71	%		0.75	%		0.77	%
Classified assets	$	838		$	748		$	781		$	673		$	639
Classified assets to total assets		1.05	%		0.93	%		1.01	%		0.95	%		0.90	%

(1)			Excludes government guaranteed residential mortgage loans of $313 million, $330 million, $349 million, $399 million, and $439 million as of each respective date in the table above.
(2)			Excludes government guaranteed residential mortgage loans of $203 million, $221 million, $224 million, $279 million, and $261 million as of each respective date in the table above.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Three Months Ended
	September 30, 2024							June 30, 2024
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	($ in millions)
Interest earning assets
Loans HFS	$	4,288		$	66.9	6.21	%	$	2,860		$	43.0	6.05	%
Loans held for investment:
Commercial and industrial		21,982			392.0	7.15			19,913			370.1	7.54
CRE - non-owner occupied		9,689			190.4	7.83			9,680			185.0	7.69
CRE - owner occupied		1,833			28.2	6.23			1,865			28.5	6.24
Construction and land development		4,757			110.7	9.26			4,740			112.3	9.53
Residential real estate		14,441			156.1	4.30			14,531			157.0	4.35
Consumer		53			1.0	7.15			48			0.8	6.94
Total HFI loans (1), (2), (3)		52,755			878.4	6.65			50,777			853.7	6.79
Investment securities:
Taxable		14,321			173.4	4.82			14,029			166.5	4.77
Tax-exempt		2,225			23.7	5.33			2,221			24.0	5.45
Total investment securities (1)		16,546			197.1	4.89			16,250			190.5	4.87
Cash and other		4,206			57.6	5.44			3,983			60.3	6.09
Total interest earning assets		77,795			1,200.0	6.19			73,870			1,147.5	6.30
Non-interest earning assets
Cash and due from banks		278							294
Allowance for credit losses		(366	)						(350	)
Bank owned life insurance		973							187
Other assets		4,409							4,554
Total assets	$	83,089						$	78,555
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts	$	16,456		$	126.2	3.05	%	$	17,276		$	131.2	3.05	%
Savings and money market		18,092			166.3	3.66			16,579			146.2	3.55
Certificates of deposit		10,134			129.6	5.09			10,427			132.9	5.12
Total interest-bearing deposits		44,682			422.1	3.76			44,282			410.3	3.73
Short-term borrowings		4,214			57.8	5.46			4,165			58.9	5.69
Long-term debt		569			13.7	9.57			437			12.1	11.19
Qualifying debt		897			9.5	4.23			896			9.6	4.28
Total interest-bearing liabilities		50,362			503.1	3.97			49,780			490.9	3.97
Interest cost of funding earning assets						2.58							2.67
Non-interest-bearing liabilities
Non-interest-bearing deposits		24,638							20,996
Other liabilities		1,457							1,449
Stockholders’ equity		6,632							6,330
Total liabilities and stockholders' equity	$	83,089						$	78,555
Net interest income and margin (4)				$	696.9	3.61	%				$	656.6	3.63	%

(1)			Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $9.9 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(2)			Included in the yield computation are net loan fees of $21.7 million and $32.1 million for the three months ended September 30, 2024 and June 30, 2024, respectively.
(3)			Includes non-accrual loans.
(4)			Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Three Months Ended
	September 30, 2024							September 30, 2023
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	($ in millions)
Interest earning assets
Loans held for sale	$	4,288		$	66.9	6.21	%	$	3,069		$	47.3	6.11	%
Loans HFI:
Commercial and industrial		21,982			392.0	7.15			16,855			324.3	7.70
CRE - non-owner-occupied		9,689			190.4	7.83			9,950			196.1	7.83
CRE - owner-occupied		1,833			28.2	6.23			1,790			26.4	5.97
Construction and land development		4,757			110.7	9.26			4,545			110.3	9.63
Residential real estate		14,441			156.1	4.30			14,914			155.0	4.12
Consumer		53			1.0	7.15			73			1.4	7.43
Total loans HFI (1), (2), (3)		52,755			878.4	6.65			48,127			813.5	6.73
Investment securities:
Taxable		14,321			173.4	4.82			8,272			101.1	4.85
Tax-exempt		2,225			23.7	5.33			2,103			21.7	5.12
Total investment securities (1)		16,546			197.1	4.89			10,375			122.8	4.91
Cash and other		4,206			57.6	5.44			2,911			43.0	5.87
Total interest earning assets		77,795			1,200.0	6.19			64,482			1,026.6	6.37
Non-interest earning assets
Cash and due from banks		278							279
Allowance for credit losses		(366	)						(334	)
Bank owned life insurance		973							184
Other assets		4,409							4,513
Total assets	$	83,089						$	69,124
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts	$	16,456		$	126.2	3.05	%	$	12,947		$	98.9	3.03	%
Savings and money market accounts		18,092			166.3	3.66			13,832			106.3	3.05
Certificates of deposit		10,134			129.6	5.09			9,125			111.0	4.83
Total interest-bearing deposits		44,682			422.1	3.76			35,904			316.2	3.49
Short-term borrowings		4,214			57.8	5.46			6,260			97.2	6.16
Long-term debt		569			13.7	9.57			764			16.7	8.68
Qualifying debt		897			9.5	4.23			888			9.5	4.26
Total interest-bearing liabilities		50,362			503.1	3.97			43,816			439.6	3.98
Interest cost of funding earning assets						2.58							2.70
Non-interest-bearing liabilities
Non-interest-bearing deposits		24,638							18,402
Other liabilities		1,457							1,052
Stockholders’ equity		6,632							5,854
Total liabilities and stockholders' equity	$	83,089						$	69,124
Net interest income and margin (4)				$	696.9	3.61	%				$	587.0	3.67	%

(1)			Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $10.0 million and $8.9 million for the three months ended September 30, 2024 and 2023, respectively.
(2)			Included in the yield computation are net loan fees of $21.7 million and $28.0 million for the three months ended September 30, 2024 and 2023, respectively.
(3)			Includes non-accrual loans.
(4)			Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries
Analysis of Average Balances, Yields and Rates
Unaudited
	Nine Months Ended
	September 30, 2024							September 30, 2023
	Average Balance			Interest		Average Yield / Cost		Average Balance			Interest		Average Yield / Cost
	($ in millions)
Interest earning assets
Loans HFS	$	3,192		$	149.1	6.24	%	$	3,858		$	183.8	6.37	%
Loans HFI:
Commercial and industrial		20,220			1,107.8	7.38			17,669			994.7	7.59
CRE - non-owner occupied		9,613			560.6	7.80			9,743			546.2	7.50
CRE - owner occupied		1,835			83.5	6.18			1,805			76.2	5.76
Construction and land development		4,806			340.0	9.45			4,399			307.1	9.34
Residential real estate		14,565			470.0	4.31			15,250			438.8	3.85
Consumer		54			2.9	7.14			73			3.9	7.14
Total loans HFI (1), (2), (3)		51,093			2,564.8	6.74			48,939			2,366.9	6.49
Investment securities:
Taxable		13,027			461.0	4.73			7,609			267.7	4.70
Tax-exempt		2,217			70.6	5.34			2,094			63.6	5.08
Total investment securities (1)		15,244			531.6	4.82			9,703			331.3	4.79
Cash and other		3,716			157.0	5.64			2,941			114.3	5.20
Total interest earning assets		73,245			3,402.5	6.26			65,441			2,996.3	6.18
Non-interest earning assets
Cash and due from banks		285							268
Allowance for credit losses		(355	)						(321	)
Bank owned life insurance		451							183
Other assets		4,501							4,600
Total assets	$	78,127						$	70,171
Interest-bearing liabilities
Interest-bearing deposits:
Interest-bearing demand accounts	$	16,693		$	379.4	3.04	%	$	11,800		$	247.4	2.80	%
Savings and money market accounts		16,644			442.4	3.55			15,006			308.9	2.75
Certificates of deposit		10,230			391.2	5.11			7,437			242.6	4.36
Total interest-bearing deposits		43,567			1,213.0	3.72			34,243			798.9	3.12
Short-term borrowings		4,032			170.4	5.65			8,578			355.2	5.54
Long-term debt		483			38.1	10.51			953			66.7	9.36
Qualifying debt		896			28.6	4.26			892			28.3	4.24
Total interest-bearing liabilities		48,978			1,450.1	3.95			44,666			1,249.1	3.74
Interest cost of funding earning assets						2.65							2.56
Non-interest-bearing liabilities
Non-interest-bearing deposits		21,284							18,534
Other liabilities		1,481							1,272
Stockholders’ equity		6,384							5,699
Total liabilities and stockholders' equity	$	78,127						$	70,171
Net interest income and margin (4)				$	1,952.4	3.61	%				$	1,747.2	3.62	%

(1)			Yields on loans and securities have been adjusted to a tax equivalent basis. The tax equivalent adjustment was $29.5 million and $26.4 million for the nine months ended September 30, 2024 and 2023, respectively.
(2)			Included in the yield computation are net loan fees of $86.9 million and $100.4 million for the nine months ended September 30, 2024 and 2023, respectively.
(3)			Includes non-accrual loans.
(4)			Net interest margin is computed by dividing net interest income by total average earning assets, annualized on an actual/actual basis.

Western Alliance Bancorporation and Subsidiaries

Reconciliation of Non-GAAP Financial Measures

Unaudited

Pre-Provision Net Revenue by Quarter:
	Three Months Ended
	Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Dec 31, 2023		Sep 30, 2023
	(in millions)
Net interest income	$	696.9	$	656.6	$	598.9	$	591.7	$	587.0
Total non-interest income		126.2		115.2		129.9		90.5		129.2
Net revenue	$	823.1	$	771.8	$	728.8	$	682.2	$	716.2
Total non-interest expense		537.4		486.8		481.8		461.9		426.2
Pre-provision net revenue (1)	$	285.7	$	285.0	$	247.0	$	220.3	$	290.0
Adjusted for:
Provision for credit losses		33.6		37.1		15.2		9.3		12.1
Income tax expense		52.3		54.3		54.4		63.1		61.3
Net income	$	199.8	$	193.6	$	177.4	$	147.9	$	216.6

Efficiency Ratio (Tax Equivalent Basis) by Quarter:
	Three Months Ended
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(dollars in millions)
Total non-interest expense	$	537.4		$	486.8		$	481.8		$	461.9		$	426.2
Less: Deposit costs		208.0			173.7			137.0			131.0			127.8
Total non-interest expense, excluding deposit costs		329.4			313.1			344.8			330.9			298.4
Divided by:
Total net interest income		696.9			656.6			598.9			591.7			587.0
Plus:
Tax equivalent interest adjustment		10.0			9.9			9.6			9.1			8.9
Total non-interest income		126.2			115.2			129.9			90.5			129.2
Less: Deposit costs		208.0			173.7			137.0			131.0			127.8
	$	625.1		$	608.0		$	601.4		$	560.3		$	597.3
Efficiency ratio (2)		64.5	%		62.3	%		65.2	%		66.8	%		58.8	%
Efficiency ratio, adjusted for deposit costs (2)		52.7	%		51.5	%		57.3	%		59.1	%		50.0	%

Tangible Common Equity:
	Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			Dec 31, 2023			Sep 30, 2023
	(dollars and shares in millions, except per share data)
Total stockholders' equity	$	6,677		$	6,334		$	6,172		$	6,078		$	5,746
Less:
Goodwill and intangible assets		661			664			666			669			672
Preferred stock		295			295			295			295			295
Total tangible common equity		5,721			5,375			5,211			5,114			4,779
Plus: deferred tax - attributed to intangible assets		2			2			2			2			2
Total tangible common equity, net of tax	$	5,723		$	5,377		$	5,213		$	5,116		$	4,781
Total assets	$	80,080		$	80,581		$	76,989		$	70,862		$	70,891
Less: goodwill and intangible assets, net		661			664			666			669			672
Tangible assets		79,419			79,917			76,323			70,193			70,219
Plus: deferred tax - attributed to intangible assets		2			2			2			2			2
Total tangible assets, net of tax	$	79,421		$	79,919		$	76,325		$	70,195		$	70,221
Tangible common equity ratio (3)		7.2	%		6.7	%		6.8	%		7.3	%		6.8	%
Common shares outstanding		110.1			110.2			110.2			109.5			109.5
Tangible book value per share, net of tax (3)	$	51.98		$	48.79		$	47.30		$	46.72		$	43.66

Non-GAAP Financial Measures Footnotes

(1)		We believe this non-GAAP measurement is a key indicator of the earnings power of the Company.
(2)		We believe this non-GAAP ratio provides a useful metric to measure the efficiency of the Company.
(3)		We believe this non-GAAP metric provides an important metric with which to analyze and evaluate the financial condition and capital strength of the Company.